100 Level

Tax Deferred Accounts: How To Begin Your Investment Plan

Planning and Saving for Retirement Whether you are just beginning to establish a tax-deferred or taxable account, the basics principles of investing are the same.  Saving and developing an investment plan are the basic starting points.  Readers of ITA Wealth Management have The Golden Rule of Investing drilled into their thinking so they understand the importance of saving and doing it as early … [Read More...]

Harry Markowitz

  Modern Portfolio Theory This morning I came across an interesting article on Harry Markowitz, the father of Modern Portfolio Theory (MPT).  Early in "The Big Bang" article are the fundamental principles of MPT. Quoting from the article, here are the three basic investment techniques or ideas that come out of MPT. "Those techniques are based on three foundational … [Read More...]

300 Level

Sample Portfolio of 40 Stocks

The following list of forty (40) stocks was suggested by a reader for Quantext Portfolio Planner (QPP) analysis.  Long time readers of ITA know that QPP is a software program developed by Geoff Considine, author of a blog, The Portfolioist. QPP Analysis:  The following list of 40 stocks results in a well-diversified portfolio as indicated by the Diversification Metric.  Anything over 40% is … [Read More...]

Dividend Portfolio

Looking for a low risk dividend portfolio?  Check out this portfolio sample that I posted over on Seeking Alpha.  There are a number of positive features to this portfolio.  First, it meets all the QPP analysis goals as laid out in the article.  Second, it provides good diversification without too many ETFs. There is a negative or two.  If one is using this array of … [Read More...]

200 Level

Asset Allocation: Working With Optimizer

How does one combine the power of the Dashboard and the Hoadley optimizer when it comes to setting up an asset allocation plan for a portfolio.  ITA readers are familiar with the Dashboard as it is shown every time a portfolio is updated.  In this post I will explain how one might combine the Dashboard and Hoadley optimizer.  Since the Hoadley optimizer is confined to nine (9) asset classes, I've … [Read More...]

ITA Wealth Management Suggested Asset Allocations

The following data table lays out different risk portfolios built around nine ETFs that make use of The Three-Factor model from Fama and French. Platinum membership is available for $5.00 per month. … [Read More...]

400 Level

SORDEX Ratio: Will I Run Out of Money?

Stress Testing the 12-ETF Portfolio What in the world is the Moshe Milevsky SORDEX Ratio? SORDEX is an acronym for Sequence-of-Returns Downside Exposure. Translated for T. C. PITS or The Common Person In The Street, it is a way to run several Monte Carlo calculations and see if you are likely to run out of money in retirement. If that is confusing, let me try to explain in great detail … [Read More...]

Current “Delta Factor” Data

With all the work put into analyzing the "Delta Factor," what are the current market conditions telling us if analyzed over several periods.  In the table below, the highlighted row is the standard three-year period used for analyzing DR.  For this snapshot, I wanted to see if different periods made any difference in the outcome. … [Read More...]