100 Level

How Well Did The Beginner’s Portfolio Perform?

This weekend I posted an article over on Seeking Alpha on a Beginner's Portfolio.  One comment got me to thinking - how well did this optimized portfolio perform over the last five years, the time frame I used for the SA article.?  I considered this to be a beginner's portfolio in the sense that it holds only 10 ETFs and it is not all that sophisticated or complicated.  My personal preference is … [Read More...]

Lost My Spouse – Part III

Determine your long-term cash flow. How much monthly income is required?  Will income from pension and social security meet the cash flow requirements or is additional money required from the portfolio?  For most single retired individuals, some income is required from the portfolio.  My recommendation is to pull no more than 4% annually from the portfolio.  The lower the … [Read More...]

300 Level

Benchmarking the Portfolio

Benchmarking Portfolio Establishing an appropriate benchmark for a portfolio is essential if one is serious about investing. Avoiding portfolio benchmarking is an act of self-deception. Exactly what is the purpose of a benchmark and what are the requirements for a fair and reasonable benchmark. Here is one definition of benchmarking.   In the investing world, the S&P 500 is … [Read More...]

The Basic Portfolio & The Delta Factor

When setting up a Basic Portfolio, investors want to include at least the "Big Six" asset classes from the U.S. equities market.  Then add some bonds, developed international markets, emerging markets, and REITs.  For larger portfolios, commodities, international REITs, and international bonds are common additions. Remember, this is a basic or core portfolio. This blog entry … [Read More...]

200 Level

Retirement Requirements: Stress Testing the Gauss Portfolio

Assume you are using the Gauss Portfolio asset allocation plan for your retirement portfolio and you want to know if you can survive a three sigma event just prior to retirement.  The provided link or the Dashboard shown below lays out the Strategic Asset Allocation plan for the Gauss.  What is required in the way of savings for a 40-year old who has only saved $100,000 thus far and expects to … [Read More...]

Portfolio Performance: 25 February 2011

Photograph: Harvest in the Sacred Valley of Peru with Andes in the background. Portfolio Performance Since posting the last performance table, the February 25 update shows nearly all portfolios gaining ground on the benchmarks.  Several of the larger portfolios also exhibited an increase in both the Sortino and Retirement Ratios.  It seems as if the portfolios are structured to show … [Read More...]

400 Level

ETF Analysis Using Technical Indicators

The following ETF evaluator is a relative new development so be wary of the results until more data is available.  It is important to note that not every ETF in the following table was updated.  Only VWO, RWX, VFH, IDV, and EPP are current.  As you look at the far right-hand column, you will see that no ETF is considered a buy under the current conditions. The best prospects at … [Read More...]

Gauss Portfolio Review: Risk Reduction Model Update

At the end of each month the Gauss Portfolio comes up for its ITARR review.  Over the past few days I had some concerns that one or more of the eight critical ETFs would be sold out of the Gauss.  Fortunately, this did not happen as the closing prices today showed each of the ETFs priced above their 195-Day Exponential Moving Averages.  We may find a different situation when the Maxwell is … [Read More...]