100 Level

Avoiding The Wash Sale

With developed international market (VEU) and emerging market (VWO) ETFs sinking in price, there may be buying opportunities sometime this summer or early in the fall.  With this in mind, and wanting to avoid the wash sale problem, I looked up TD Ameritrade to see if they offered EFA and EEM, similar ETFs to VEU and VWO, as commission free ETFs.  They don't so it will not be possible … [Read More...]

Optimizer Warnings From William Bernstein and Harold Evensky

A few years ago I worked with a Mean-Variance Optimization (MVO) program designed by David Wilkinson for William Bernstein.  There was a mind numbing amount of manual data entry and there was the perpetual problem of data accuracy.  Was I using the right data and was it current?  The software required entering constraints, otherwise the MVO software would pump out portfolios that made little … [Read More...]

300 Level

Portfolio Performance Data: 23 September 2011

After this week, ITA Wealth Management readers will certainly be aware of the high Retirement Ratio (RR) standard.  Only one portfolio, the Einstein, managed to turn in a positive RR value.  Let's face it, it was a very poor week for both domestic and world markets.  IRR percentage points were shed by every portfolio.  The good news is that most of the portfolios gained on … [Read More...]

ITARR Kenilworth Portfolio Update: 19 July 2012

As one of the five ITA Risk Reduction model portfolios, the Kenilworth is well worth your attention.  Although rather new and small in size, sixteen asset classes are used to fill out the capital allocation plan.  Cash contributions come in every month helping to rebalance the portfolio when necessary.  Due to the influx of cash each month, I am not overly concerned about Large-Cap … [Read More...]

200 Level

Different Styles of Investing*

Let me pose a problem or situation to ITA Wealth Management readers.  We have two intelligent investors who approach investing from entirely different philosophies. For simplicity we will call them Investor A and Investor B.  Investor A is an active manager and readers have already know what active management entails.  Investor B is a passive manager and you know a bit about passive … [Read More...]

Developing a Portfolio Plan

Basic Suggestions in Portfolio Development* In the beginning stages of setting up a portfolio plan, there are a few essential decisions investors make. Here are a few hints to consider. Follow "The Golden Rule of Investing." Save as much as you can as early as you can. Develop a savings plan as there is no avoiding this step. Live below your means.  Learn … [Read More...]

400 Level

ETFs As Market Predictors

While our focus is on the long-term rather than market timing, it still makes sense to pay attention to market action.  This article is one I thought readers would find interesting.  In addition to following RSP and IYT, I recommend Platinum members also track VTI, Vanguard's total U.S. equities market and VT, Vanguard's Total World equities market. … [Read More...]

Bullish Percent Indicators Update: 5 April 2013

We are finally beginning to see weakness in several markets, not that this is a desired outcome.  However, with most of the major markets and sectors at "nose bleed" levels, it is only a matter of time before cracks begin to show.  That time has come, although it is still very minor.  Here is the evidence. The following material is not available for publication elsewhere on the Internet. … [Read More...]