Portfolio

Tactical asset allocation – december update

11 months down, 1 to go in 2014. Here are the tactical asset allocation portfolio updates for this month. Starting with the most basic portfolios, below are the December updates for the GTAA5 and the Permanent Portfolio. I keep a spreadsheet online that is update automatically. There were no changes from last month. Now for the more broadly diversified GTAA13 portfolio…

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Portfolio

Tactical asset allocation november update

It’s been a while since I’ve done updates for the various IVY portfolios. I’ve noticed that investors still have trouble implementing these portfolios so I decided to start doing the updates again. At least for a few months. Hopefully this helps investors who are trying to implement these portfolios or are just starting their research into these strategies. Also, I’ve…

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Portfolio

One portfolio to rule them all?

Unfortunately, portfolios are not like a certain type of ring, forged with magical powers to rule over the world, man/hobbit/elf kind, and all other types of investment portfolios. There is no one portfolio to rule them all. There are many different styles and types of portfolios with very different characteristics, asset allocations, and histories. Most importantly, the appropriate type of investment…

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Retirement

When you retire matters a lot more than you think

The starting year of retirement makes a huge difference in the success or failure of a retirement plan. This is the key difference between the accumulation phase of investing and the withdrawal phase of investing. Yet the majority of investing writing does not take this key difference into account when speaking of returns, asset allocation, planning, etc. So, lets look…

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Portfolio

Investing during market turmoil

Maybe the best thing about quant or automatic investing is the peace of mind it provides during times of market turmoil. While I would by no means characterize the recent market action as ‘turmoil’, many investors seem to think it is. It always amazes me how short term the investor memory is. Has everyone forgotten the corrections of 2010 (16%)…

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Portfolio

Yes, you are trying too hard

“True wisdom comes to each of us when we realize how little we understand about life, ourselves, and the world around us.” Socrates When I read the Socrates quote above I can’t imagine what he would have said about today’s world. We live in a highly complex non-linear world with access to way more information than even massive computers can…

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Portfolio

Technology is shaking up the investing landscape

There’s been couple of recent announcements in the portfolio management industry which show the extent of technology’s penetration into the industry. The announcements further continue the rise of such automatic investing companies like Betterment and Wealthfront which are using modern technology to automate and drive down investment costs for individuals. First, Covestor announced a series of Core ETF Portfolios with zero…

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Retirement

Safe Withdrawal Rates – insist on 1966

Today I want to touch on a little understood aspect of safe withdrawal rates (SWRs) in retirement. Using the historical method to determine SWRs (as opposed to Monte Carlo analysis) means that the maximum SWR (approx 4%) is singularly determined by one 30 year period, the 30 year retirement period for the 1966 retiree. The 1929 Great Depression retiree had…

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