100 Level

The Golden Rule of Investing

The Golden Rule of Investing is simply, “Save as much as you can as early as you can.” The operative word is early. William J. Bernstein lays it out in stark language in his book, “The Investor’s Manifesto“ where he writes, “Each dollar you do not save at 25 will mean two inflation-adjusted dollars that you will need to save if you start at age 35, four if you … [Read More...]

Benchmarking a Portfolio: Essential to Portfolio Management

Waterford, Virginia ITA Wealth Management readers know I am passionate about portfolio benchmarking and portfolio risk analysis.  To my knowledge, there is no better software program for the small investor than the TLH Spreadsheet, provided to all Platinum members.  We use two primary benchmarks in this spreadsheet, although four are available.  One is Vanguard's Total Stock … [Read More...]

300 Level

Portfolio Construction, Maintenance, & Monitoring

To be a successful investor, the trio of portfolio construction, maintenance, and monitoring are all essential.  While the importance of portfolio construction is receiving less attention than it did in the 1990s, detailed research is yet to be conducted on its significance.  The research I've read is too broad with a focus on stocks, bonds, and cash.  Due to its complexity, it … [Read More...]

Euclid Portfolio Update: 14 March 2013

Since the last review of the Euclid 32 days ago, shares of VO were sold and GTU was added to the portfolio. Platinum members are able to see the current Dashboard and Efficient Frontier in the following screenshots. … [Read More...]

200 Level

Smartest Medium-High Risk Portfolio

With this analysis of the medium-high risk portfolio, we leap over the medium risk portfolio found at this site. The medium-high risk portfolio limits the bond/income asset class to 20%.  Remember, we began with 80% allocated to the bond asset class, moved to 60%, then 40% and now 20% or something similar to what we hold in many portfolios tracked here at ITA Wealth Management. Note the … [Read More...]

Ten Rules to Follow in Preparation for Retirement

Over the next few days I will lay out ten fundamental ideas or rules that will serve readers well as they prepare for retirement.  I know many of you are already well into retirement and have gone through this process while others are just beginning their investment journey.  For the veterans, you may pick up a few ideas and have others reinforced.  If you have words of wisdom for other readers, … [Read More...]

400 Level

8 Dividend Stocks Supercharge the Swensen-Six Portfolio

Eight dividend aristocrats added to the "Swensen-Six" Portfolio boost return, increase yield, without doing extensive damage to the portfolio volatility. The following screen-shots show the original "Swensen" portfolio, a supercharged version, the correlation matrix for the supercharged portfolio, and the "Delta Factor" projections for the supercharged portfolio when … [Read More...]

Ranking Critical ETFs

Now that I have the capability to work with more than 20 ETFs within the ranking worksheet, I made a list of the critical securities one might use to construct a portfolio.  There are three sector ETFs in this group and a special ranking of sector instruments will be conducted to determine which are part of this larger grouping. While the ranking is important, also pay attention to the … [Read More...]