ITA Wealth Management

Lest this repetition get old, it is still important to be reminded of the fundamentals behind the Wealth Management blog and portfolio construction.

• Continue saving for investment.
• Develop a plan for asset allocation.
• Use a minimum of eight asset classes and a maximum of 20. We are currently working with fourteen in the AA-Mosaic Portfolio, although we do not have capital working in all asset classes.
• Develop the percentage to allocate to each asset class of interest. Search “Table” and you will find our percentages for the Mosaic Portfolio.  I will be writing more on the new allocations later this week.
• Concentrate on value and small asset classes as they perform better than growth and large asset classes over the long run.
• Rebalance the portfolio when necessary. This will likely not happen more than once a year.
• Keep expenses low. Therefore purchase ETFs in sufficient size so expenses are below 50 basis points for each trade. The lower, the better.

Lowell Herr

Photograph: Entering Venice, Italy early morning.