ITA Wealth Management

Why take out a Premium Content subscription when you can glean lots of useful information from the free side of this blog?  What additional material and information does one obtain by subscribing to the Premium Content or “pay-to-read” side of the blog?

In addition to the list of items found on the “Premium Content Material” page, a new service will take the initial portfolio construction a step further.  I will be using software to analyze each of the portfolios tracked on the Premium Content side of the blog. This portfolio analysis enables one to run probability checks on up to 40 different investments, be they ETFs, bonds, stocks, etc.

The plan is to take each portfolio, lay out the asset allocations and associated percentages, and report on the projected results.  The output will include a projected annual return, portfolio standard deviation, portfolio correlation data, and the diversification metric.  These terms are explained and defined over on Premium Content. While the individual portfolios are built around a Strategic Asset Allocation plan, there are times when this new software calls for Tactical Asset Allocation.  Recent periods when action was warranted includes the late 1990s, early in 2003, and more recently, late November 2008.

The software also provides personal options to insert age, retirement data, annual contributions to portfolio, inflation rate, withdrawal rates, portfolio size, etc., and from this bank of data will determine the probability of having sufficient money to live on for the remainder of your life.  This will permit Premium readers to see how the different portfolios can be use for retirement preparation.

Take the Scrappy Portfolio, a portfolio that currently has a value of approximately $125,000.  If a 45-year old adds $1,000 per month until retirement at age 65 will they be ready to retire on $100,000 per year?  These are the types of questions one can ask and have answered.

Premium subscription is available for $5.00 per month through December 31, 2009.