100 Level

Second Analysis of Actively Managed Mutual Funds Plus ETFs

The following analysis of the actively mutual funds is supplemented by a few ETFs used in nearly all the ITA Model Portfolios.  The reason for adding the ETFs is to see how the actively managed mutual funds stack up against the ETFs in the ranking worksheet.  That is the second screenshot shown below.  In this analysis we begin with the Efficient Frontier graph.  The shares in the various funds … [Read More...]

Gordon Equation: What Is It?

I'm not sure I ever heard of the Gordon Equation (GE) until I read about it in William Bernstein's second investment book, "The Four Pillars of Investing." Even on the first read, I skimmed over it. Now that investors are paying more attention to dividends, the GE merits additional attention. Simply stated, the Gordon Equation is written as follows: Market Return = Dividend … [Read More...]

300 Level

ITA Ratio Video/Audio Clip

Here is another help session for users of the TLH spreadsheet.  This clip provides additional explanation of how to introduce the ITA Ratio, a new performance bar for index portfolios. … [Read More...]

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...]

200 Level

Year-End Portfolio Performance

TLH Portfolio Performance Data The following data table includes updates for portfolios tracked by the TLH spreadsheet.  Portfolios tracked by Captool will be updated sometime this week and I should have the results posted by January 8. In almost every case, the updated portfolios showed gains with respect to the VTSMX benchmark. Most of the portfolios lost ground to the customized … [Read More...]

Asset Allocation Example

In the table below, viewers see the asset classes discussed in a prior blog entry.  We are looking at fifteen asset classes, including Cash. In the second table the sample asset allocation is broken down into percentages and we cut out the Core holding, moving the number of asset classes to twelve. [Table=6] … [Read More...]

400 Level

Retirement Target Return

Retirement Target Return What is the Retirement Target Return (RTR) all about?  RTR is one of the factors found in the Retirement Ratio (RR) risk management equation. ITA Wealth Management readers know the importance of measuring portfolio risk and RTR is part of that process. Here is exactly how RTR is determined. RTR is the sum of the current inflation rate plus the percentage one … [Read More...]

Maxwell Update: 6 June 2012

As one of the five ITA Risk Reduction model portfolios, the Maxwell was initially selected as the portfolio Internal Rate of Return (IRR) lagged both the VTSMX and ITA Index benchmarks.  The hope is that over a few market cycles, we will be able to push the portfolio IRR above both benchmarks. … [Read More...]