Passive Investing: How to Solve a Complex Problem

Photograph: Tug-of-Toy

Photograph:  In memory of Cody, victor in the Tug-of-Toy contest.

Passive investing through the use of index ETFs is a solution to a complex problem.  Here at ITA Wealth Management, we guide individual investors through the process of setting up a Strategic Asset Allocation (SAA) plan, maintain it, and monitor it for return vs. a benchmark as well as risk management.

The screen shot below is an example of a SAA plan for a somewhat aggressive investor.  Note the low allocation to Bonds & Income.

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Grandchildren: Seek the Best Education Possible

Photograph: Bay at Le Havre, France

It is difficult to over emphasize the importance of a good education.  In our family there was never any discussion about whether or not we were going to college.  It was a given.  My father set the standard when he desired an education so much that he not only paid his way through college, but he also paid to have someone replace him on the farm.

A good education is one that prepares the graduate to become a life-long learner.  Four to eight years of formal education is insufficient to become educated.  Those years only provide the foundation to branch out and learn so much more about the world. So my advice to all children and grandchildren is to aggressively go after a college or university education.  Learn how to discriminate and analyze information.  Ask questions and don't be afraid to be wrong.