February 25, 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...)

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

Wolf in Snow

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

colored flowers

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?

squirrel evergreen

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?

snow squirrel

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?

US Flag

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

floor cleaner

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?

stethoscope

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”

rich habits rich life

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

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Examples of the Narrative Fallacy

sad dog

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?

man on the street

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

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The Narrative Fallacy

reading upside down

No one would click on the headline, “Stocks went up today and we have no clue why.”

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Investing In Hong Kong Has Lowered Risk and Boosted Returns

hong kong skyline

We allocate a portion of our managed portfolios to foreign stocks, and Hong Kong is the highest ranked country on the latest edition of the Index of Economic Freedom.

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Roth IRAs Make Great Estate Planning Tools

at the beach

Taking the smallest distribution each year will ensure the beneficiary achieves the maximum tax-free growth of tax-free income.

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How Does Compliance Differ Between Smaller Firms and Large Brokers?

tiger glare

It is relatively easy for an adviser who has a 400 lawyer compliance department to sit through some compliance continuing education and yet never understand what attitudes and behaviors need to be changed.

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Radio: Should the Government Use Force to Make College Education Free?

graduation caps

David John Marotta was interviewed on radio’s Schilling Show discussing the relationship between the government and college education.

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Hedge Funds and Long/Short Strategies

Ostrich Race

Long/short strategies use the money from the stocks they have shorted to purchase extra stocks that they hope will go up.

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Are You Paying for Your Fund’s Advertising?

sparrow feeding

If you own some mutual funds, chances are you are paying a hefty marketing price.

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Most People Take Social Security At The Worst Possible Age

stacked eagles

While taking Social Security at age 70 is not optimal for everyone, age 62 is optimal for almost no one.

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Finding Someone You Can Trust

Trust

Those who believe that more regulation is the answer don’t understand how human nature works.

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How to Monitor Your Financial Advisor

trapeze jump

When seeking a financial advisor, you should find out if they are willing to sign a fiduciary oath putting your interests above those of their employer.

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Economic Indicators: Gross Domestic Product (GDP)

basket of food

Under one theory, changes in GDP or the rate of GDP growth precede and could cause stock markets to react and move in response. This is usually not the case.

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Beware of Dire Market Crash Predictions

questioning chick

I receive dire predictions with such frequency that were I to act on even a fraction of them I would never be invested in the markets.

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Where Should I Invest Money Which I Will Need in a Year or Two?

house money

Return comes with an element of risk. There is no safe investment which also pays a good rate of return.

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The Golden Bear: The Bear Market of 1973

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This Bear market is considered one of the greatest challenges to retirement planning.

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Wealth Management Is In Your Control

latte

Many feel helpless to direct their own success, but nothing could be further from the truth.

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Planning for a Funeral

Planning for a Funeral

Funeral expenses are often a family’s fourth largest expense.

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Do Children Need To File A Tax Return To Fund Their Roth IRA?

Do Children Need To File A Tax Return To Fund Their Roth IRA?

The IRS does not require dependents whose gross income is only earned income to file a tax return if the amount is less than a certain amount.

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Recouping Losses Is Not As Hard As You Think

Deceptive Posts About The Difficulty Of Recouping Losses

Many advisors and most investors don’t really understand the math on how to compute investment returns.

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