Ultra Capital Preservation

On occasion, readers ask for advice on asset allocation plans.  Most of the portfolios tracked on this blog are classified as balanced, growth, or even aggressive growth.  Holders of the "science" portfolios are younger, have very long-term goals, or have other means of income so very conservative portfolios are not appropriate.  As a result, no portfolios are what I would call conservative or designed for maximum capital preservation.

In this portfolio series I will lay out six asset allocation plans running from ultra conservative to aggressive growth.  In this first article I am starting at the conservative end of the investing spectrum where 65% is allocated to bond and income generating investments.

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Portfolio Performance Data: 2 September 2011

Due to migrating the ITA Wealth Management blog from one hosting site to another, I lost the Portfolio Performance data table for last week.  In the process of updating the table this week I observed changes over a two week period instead of the normal one week interval.  All stocks made absolute gains over the last two weeks, but lost ground on a relative scale.  In other words, the broad market, as measured by the VTSMX, did better than our more diversified portfolios.  I think that was mainly due to market action over a week ago.  Nearly every portfolio showed a gain in the Retirement Ratio (RR) despite a slight inflation rate increase.

Here we have an updated table, although not all portfolios have the latest dividends included.  In several situations, the portfolios will be performing slightly better than the percentage recorded.  TDAmeritrade statements became available yesterday and I will be working through all the updates this coming week.

Portfolio Performance - 09/02/2011

Portfolio Last Update Launch Date Tracking Tool Port. IRR ITA Index Diff Port. vs. ITA Index VTSMX IRR Diff. Port. vs. VTSMX Index IR SR RR
AA-Mosaic 07/29/2011 07/21/1999 Captool 2.76% NA NA 1.61% 1.15% 0.05 NA NA
Curie 09/02/2011 12/26/2007 TLH SS 3.3% -1.1% 4.4% -1.7% 5.1% NA 14.4 -5.8
Mosaic2 07/29/2011 07/19/1999 Captool 4.95% NA NA 1.43% 3.52% 0.16 NA NA
Newton 09/02/2011 06/02/2008 TLH SS 7.2% 3.7% 3.5% 3.1% 4.1% NA 2.9 0.4
Passive Port. 08/31/2011 12/01/2000 Captool 4.6% NA NA 2.20% 2.4% 0.70 NA NA
Schrodinger 09/02/2011 12/01/2000 TLH SS 4.2% 2.9% 1.3% 1.9% 2.3% NA 18.8 -3.1
Jane 07/29/2011 02/14/1997 Captool 9.11% NA NA 4.89% 4.22% 0.55 NA NA
Einstein 09/02//2011 06/30/2008 TLH SS 9.7% 7.4% 2.3% 5.7% 4.0% NA 6.2 6.2
Gauss 07/29/2011 02/19/1997 Captool 9.24% NA NA 4.86% 4.38% 0.23 NA NA
Kepler 09/02/2011 11/01/2008 TLH SS 13.3% 13.2% 0.1% 12.3% 1.0% NA 0.58 0.58
Scrappy 07/29/2011 08/14/2008 Captool 12.02% NA NA -0.99% 13.01% NA NA NA
Bohr 09/02/2011 08/14/2008 TLH SS 8.4% 7.9% 0.4% 1.3% 7.1% NA 10.0 1.1
Kenilworth 09/02/2011 08/18/2010 TLH SS -3.9% -4.0% 0.1% -4.4% 0.5% NA 0.0 -0.07
Franklin 09/02/2011 05/6/2011 TLH SS -14.8% -20.2% 5.3% -33.9% 19.0% NA 0.11* -0.13*
Projects 08/31/2011 12/01/2000 Captool 5.01% NA NA 2.22% 2.79% 1.32 NA NA
Washington 07/29/2011 06/18/1999 Captool 3.23% NA NA 1.82% 1.41% 0.28 NA NA
Maxwell 09/02/2011 12/25/2000 TLH SS 0.4% 5.2% -4.7% 2.7% -2.3% NA -0.08 -0.22
Adams 07/29/2011 06/18/1999 Captool 3.64% NA NA 1.82% 1.82% 0.72 NA NA
Euclid 09/02/2011 06/30/1999 TLH SS 1.4% 9.0% -7.6% 2.6% -1.9% NA -0.06 -0.19
Jefferson 07/29/2011 06/13/2006 Captool 5.96% NA NA -0.76% 6.72% NA NA NA
Madison 09/02/2011 03/13/2008 TLH SS 4.9% 2.9% 2.0% 3.4% 1.5% NA 0.06 -0.03
                       

Special Note:  I added a feature to the blog to make it easier to know when new blog entries show up.  You can register on the Home page by giving your name and e-mail address.  I suggest users register and if you do not like this feature cancel at a later date.

Wishing everyone a good Labor Day weekend.