May 29, 2017

About David John Marotta

David John Marotta+ is the Founder and President of Marotta Wealth Management, Inc. He played for the State Department chess team at age 11, graduated from Stanford, taught Computer and Information Science, and still loves math and strategy games. Favorite number: e (2.7182818...)

Mailbag: How Do I Replenish A Bond Laddering Strategy?

Mailbag: How Do I Replenish A Bond Laddering Strategy?

When you use a bond laddering strategy with funds, rebalancing to your asset allocation naturally buys and sells bond funds as appropriate.

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Radio Interview: Health Savings Accounts

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David John Marotta was interviewed on radio’s The Schilling Show discussing Health Savings Accounts and the recent Healthcare bill.

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Not All Financial Advising Firms Rebalance Client Portfolios

Not All Financial Advising Firms Rebalance Client Portfolios

You would think that rebalancing a client’s portfolio would be standard in the industry. Unfortunately, it is not.

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Five Things You Can Control: Taxes

Five Things You Can Control: Taxes

A dollar saved on taxes is worth more than an extra dollar of income because the extra dollar of income is in itself taxable.

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Asset Location Can Significantly Boost After-Tax Returns

Asset Location Can Significantly Boost After-Tax Returns

Exact asset location depends on the percentage of a portfolio held in each of the three types of accounts as well as the percentage of the portfolio which is to be allocated to each selected sector. But the boost in after-tax returns is well worth the effort.

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Five Things You Can Control: Investment Costs

Five Things You Can Control: Investment Costs

We do not believe that investing should be expensive.

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Five Things You Can Control: Goals-Based Asset Allocation

Five Things You Can Control: Goals-Based Asset Allocation

An advisor’s job is to recommend the optimum asset allocation regardless of how the client might answer a survey about risk tolerance.

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Radio: Tax Planning Season

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When you finish your tax preparation, it is time to begin tax planning.

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Five Things You Can Control: Commitment to Saving

Five Things You Can Control: Commitment to Saving

Saving money is not enough. You need to save and invest.

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Five Things You Can Control: Spending Discipline

Five Things You Can Control: Spending Discipline

“Develop spending discipline. People too often forget that the real enemy of investment is consumption.”

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How to Deduct U.S. Debt Obligations on State Tax Returns

How to Deduct U.S. Debt Obligations on State Tax Returns

Dividends and interest received from U.S debt obligations can be deducted on many state tax returns.

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Radio: What Does “Trickle-Down Economics” Mean to Liberals and Conservatives?

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David John Marotta was interviewed on the Schilling Show discussing trickle-down economics and taxes.

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What Good Are Morningstar Stars?

What Good Are Morningstar Stars?

Do mutual funds with 5-star Morningstar ratings have better future returns?

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T-Share Class Mutual Funds Are Not “Fiduciary-Friendly”

T-Share Class Mutual Funds Are Not "Fiduciary-Friendly"

Less gouging doesn’t make T-shares meet the high principles-based fiduciary standard.

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Invest Your Health Savings Account For Appreciation

Invest Your Health Savings Account For Appreciation

HSAs have so many advantages over traditional IRAs that you should continue funding your HSA as long as possible and build as large an HSA investment balance as you can.

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Radio: What’s the Difference Between Obstruction and Resistance?

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David John Marotta was interviewed on the radio 1070′s Schilling Show discussing the difference between obstruction and resistance.

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Commission-Based Firms Admit They Don’t Provide Advice

Commission-Based Firms Admit They Don't Provide Advice

Commission-based firms want either to be exempt from the Fiduciary standard or else given the title anyway.

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Are Democrats Or Republicans Better For The Stock Market?

Are Democrats Or Republicans Better For The Stock Market?

Politics matters less to our financial success than the ordinary decisions we face every day.

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Marotta’s 2017 Gone-Fishing Portfolios

Marotta’s 2017 Gone-Fishing Portfolios

A gone fishing portfolio is a portfolio of just a few stocks which should weather the ups and downs of the market fairly well while only rebalancing twice a year. Here are three hand-crafted gone-fishing portfolios for 2017.

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Marotta’s 2017 Gone-Fishing Portfolio Calculator

Marotta's 2017 Gone-Fishing Portfolio Calculator

A gone-fishing portfolio has a limited number of investments with a balanced asset allocation. This year I limited myself to 13 investment vehicles with two changes from 2016′s calculator.

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Marotta’s 2017 Vanguard Gone-Fishing Portfolio Calculator

Marotta's 2017 Vanguard Mutual Fund Gone-Fishing Portfolio Calculator

A gone-fishing portfolio has a limited number of investments with a balanced asset allocation. This portfolio uses all Vanguard mutual funds.

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Marotta’s 2017 Schwab Gone-Fishing Portfolio Calculator

Marotta's 2017 Schwab No-Transaction Fee Gone-Fishing Portfolio Calculator

A gone-fishing portfolio has a limited number of investments with a balanced asset allocation. This portfolio uses all Schwab no-transaction fee exchange traded funds.

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US Large-Cap Exchange-Traded Fund Choices

US Large-Cap Exchange-Traded Fund Choices

In anticipation of adjusting our yearly gone-fishing portfolios, I reviewed the performance of five US large-cap Exchange-Traded Funds (ETFs).

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Bond Investing In 2016

Bond Investing In 2016

Bonds had positive returns for the year despite returns peaking at the end of July and falling for the rest of the year.

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Resource Stock Investing in 2016

Resource Stock Investing in 2016

In 2016, Energy and Materials had some of the best returns of the year.

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To What Benchmark Should I Compare My 2016 Returns?

To What Benchmark Should I Compare My 2016 Returns?

Investors always want to compare the return of their portfolio against some benchmark index. We suggest not using the S&P 500 for that purpose.

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Radio: The Politics of Kindness

Radio: The Politics of Kindness

David John Marotta was interviewed recently on the Schilling Show discussing the politics of kindness and the difference between intentions and outcomes.

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2016 In Review

2016 In Review

2016 was a good year for stocks in general with a number of noteworthy details. Resource stocks performed the best despite being the worst-performing asset class in 2015.

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Freedom Investing and Emerging Markets in 2016

Freedom Investing and Emerging Markets in 2016

In 2016, the average return of the best investment products of the Freedom Six outperformed the Vanguard FTSE Developed Markets ETF by 6.75%.

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US Stock Investing in 2016

US Stock Investing in 2016

The S&P 500 had another good year, ending up 11.96%. The S&P 500, however, only represents half of the US Stock asset class, and Small- and Mid-Cap stocks performed even better.

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Mailbag: What Do You Think About The Elliott Wave Principle?

Mailbag: What Do You Think About The Elliott Wave Principle?

It is difficult in investing theory to determine which narratives have the appropriate underlying evidence to support them and which narratives are not worth following. Often it is necessary to be both a mathematician and a skeptic to filter out what is even worth considering.

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Your Advisor’s Sports Car Personality Is Hurting Your Returns

Your Advisor's Sport Car Personality Is Hurting Your Returns

What does the car your advisor drives tell you about their investment and budgeting services?

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Benjamin Graham on Individual Stock Analysis

Benjamin Graham on Individual Stock Analysis

“I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities.”

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One Example Of What Is Wrong With Commission Based Investment Advice

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There is a large difference between the motives and incentives of the sales person and those of the service person.

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Using Factor Investing To Boost Country Specific Returns

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The rough idea is that the stock price of companies that are profitable are more likely to appreciate than companies which are not profitable.

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Radio: Why Corporate Tax Rates Should Be Lowered

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David John Marotta was interviewed on radio 1070 WINA’s Schilling Show discussing corporate tax rates, and why they should be lowered.

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Investing Mistake: Confusing A Promising Company With A Good Investment

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A good narrative describes what happened in the past. And even though past earnings may have something to do with current share prices, they don’t have anything to do with future share prices.

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There’s Still Time for Charitable Giving

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Instead of giving cash, there are two ways you may be able to give so more of your money goes to charity instead of the IRS.

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Factor Investing: Small and Value Factors

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Factor investing “tweaks the idea of asset allocation and diversification by seeking out types of securities that have been shown, by decades of academic research, to offer positive return premiums over time.”

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David John Marotta Interviewed by SuperMoney

David John Marotta Interviewed by SuperMoney

David John Marotta was recently interviewed by SuperMoney as part of their Expert Interview Series.

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Mailbag: Can I Contribute To An IRA The Year I Turn 70 1/2?

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Even though you are required to start taking RMDs you can still take advantage of significant tax planning savings.

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Can I Continue Retirement Saving Past Age 70 1/2?

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The rules for post-70 ½ IRA contributions depend upon whether the account is a traditional IRA, Roth IRA or SEP IRA.

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Radio: Why is the Media Liberal?

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Listen to a discussion on why journalists are usually liberal-leaning and what that means for reporting the news in America.

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How To Whitelist An Entire Domain In Gmail

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Since not receiving an important email can be even more dangerous as receiving too much spam, here is how to while list an email or an entire domain in Gmail.

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How The Markets Moved After A Trump Victory

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Beware of reading too much into three days of market movements.

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Mailbag: Which Investment Fund Should I Purchase To Minimize Fees?

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On the surface it seems like option 3 (VHT) is the best deal. Is there anything I am missing?

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The Finance of Crowdfunding

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There are three types of crowdfunding each defined by what people receive in exchange for the money they pay: Reward-based, Donation-based, and Equity-based.

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Interview of Dr. Randall Bell, Author of “Rich Habits, Rich Life”

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Dr. Randall Bell develops strategies to overcome problems and maximize peak performance.

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Examples of the Narrative Fallacy

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To illustrate this principle, I analyzed a week’s worth of “Morning and Midday Market Views” provided by the Schwab Center for Financial Research.

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Radio: Should You Pay More Tax Than Legally Required?

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Is there morality that supersedes legally abiding by the tax code?

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