100 Level

Grandchildren: Cut Credit Card Debt

Photograph: University of Glasgow in Scotland Grandchild suggestion #2 is another form of suggestion #1.  Avoid credit card debt.  Pay off the credit card debt every month. It makes no sense to be paying out interest in excess of 10% while investments are returning less than that percentage. Getting into credit card debt is a financial tar pit.  Stay out. … [Read More...]

Hedgehog or Fox Investor?

Do you fall into the hedgehog or fox style of thinking, and how does it impact your investing methods? (The fox knows many things, but the hedgehog knows one big thing.”) Think about this for a moment before answering. Maybe we are all a little bit of both, but lean more to one side than the other in our thinking processes. As a Mosaic Investor, I like to think of myself as a “fox … [Read More...]

300 Level

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...]

QPP Analysis of Kepler Portfolio

Quantext Portfolio Planning (QPP) is not only useful when initially planning a portfolio, but it is also instructive when a portfolio, such as the Kepler, is up for review.  In preparation for the update coming next week, the following QPP analysis is a precursor of what to expect for the Kepler.  Do note that four ETFs (VSS, IDX, EMB, and PCY) have "short-records" which means … [Read More...]

200 Level

Asset Allocation: The Mortar of Portfolios

Asset allocation is a subject frequently mentioned here at ITA Wealth Management.  For many beginning investors, it is a new topic, yet so familiar to the investing world it is assumed everyone knows what it means.  This blog post is to show a sample asset allocation plan and explain some of the reasons why it is set up as it is.  Here we have a Dashboard worksheet extracted from … [Read More...]

Asset Allocation: How Important Today?

Asset Allocation Due to a recent Ibbotson study (Unfortunately, this article now requires one to register.) asset allocation is not the investment elixir today it was thought to be in the late 1980s and 1990s. Nevertheless, it remains the best method for constructing portfolios if our goal is to outperform a broad market benchmark index such as the VTSMX while reducing portfolio risk. Readers of … [Read More...]

400 Level

Delta Factor for Twenty Portfolios: Are There Any Buys?

Following up on the list of twenty ETFs mentioned yesterday, below is the Delta Factor projections for this particular group of investments.  When the market (DJIA) is at an all time high, expectations for many buying opportunities to show up in the Delta Factor column are slim.  However, we do see one opportunity to pick up shares in one sector of the market. … [Read More...]

VTI And The ITA Risk Reduction Model

At the request of a long-time Platinum member, I am going to examine a number of key ETFs used to populate specific asset classes in an effort to see how well the ITA Risk Reduction model worked over the last four months.  Keep in mind that no one ever stated that the ITARR model, or a variation such as the Faber-Richardson model, will work all the time, month after month.  Where the … [Read More...]