February 25, 2017

Asset Allocation

How do you diversify your money so you aren't putting all your eggs in one basket? Here are our thoughts.

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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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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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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Using Factor Investing To Boost Country Specific Returns

water_droplet_t

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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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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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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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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Don’t Forget to Rebalance All Your Assets

stacked rocks

It can be easy to forget about your company’s 401(k) because you aren’t depositing the money yourself, your pre-tax contributions are deducted from your paycheck and are electronically deposited by your employer.

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Selecting an Endowment’s Asset Allocation

Selecting an Endowment's Asset Allocation

Two rules of endowment investing: 1) Keep an equity bias and 2) diversify.

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5 Reasons to Have Some Cash Equivalents

5 Reasons to Have Some Cash Equivalents

There are at least five reasons to hold cash. Without a good reason to hold cash, you may be holding too much.

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Narrowly Framed Questions Fail to Meet Life Goals

Narrowly Framed Questions Fail to Meet Life Goals

Purchasing investment products in isolation from the larger context of your specific situation is like pushing random buttons on a vending machine in order to provide a Thanksgiving dinner for your family.

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Bloomberg Article Gets Asset Allocation Exactly Wrong

Bloomberg Article Gets Asset Allocation Exactly Wrong

Investors should not have to deal with financial reporters that misunderstand the field they write about.

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Slow and Steady Wins the Race

Slow and Steady Wins the Race

You can learn a lot about financial management from snapping turtles.

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Investing Strategies for an Irrational Brain

Investing Strategies for an Irrational Brain

Recency bias is perhaps the most difficult natural bias to overcome.

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Dimensional On: Why Should We Invest Internationally?

Dimensional On: Why Should We Invest Internationally?

“Historically there has been a wide variety of returns from US and International stocks, and when one does poorly often another does well.”

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How Long Should I Give An Investment Plan?

How Long Should I Give An Investment Plan?

Even the most brilliantly crafted investment plan has to be given time to work.

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The Complete Guide to Creating an Investment Plan

The Science of the Rebalancing Bonus

This is a summary of the six steps required to create a well-crafted investment plan.

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Why We Do Not Use Active Management

Why We Do Not Use Active Fund Managers

Index investing seeks to track the return of a portion of the market. The opposite is active management.

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Radio: Market Returns for 2015

2015 Asset Class Returns

David John Marotta was interviewed on the Schilling Show discussing how the markets performed last year and lists 4 mistakes to avoid.

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Asset Allocations for UVA Retirement Plans at Fidelity

Asset Allocations for UVA Retirement Plans at Fidelity

The University of Virginia plan includes funds sufficient to produce these excellent portfolios.

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Marotta’s 2016 UVA Fidelity 403(b) Calculator

University of Virginia's Serpentine Walls

Age appropriate asset allocation for 2016 using the choices available in the University of Virginia’s Fidelity 403(b) Tax Deferred Savings Plan (TDSP).

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Marotta’s 2016 UVA Fidelity 401(a) Plans Calculator

UVA Fidelity 401(a) Plans Calculator

Age appropriate asset allocation for 2016 using the choices available in several of the University of Virginia’s Fidelity Retirement Plans.

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Marotta’s 2016 Vanguard Gone-Fishing Portfolio

Marotta’s 2016 Vanguard Gone-Fishing Portfolio

Here is a review of Marotta’s 2015 Vanguard Gone-Fishing Portfolio and a description of our changes for 2016.

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Marotta’s 2016 Vanguard Gone-Fishing Portfolio Calculator

Marotta's 2015 Vanguard Gone-Fishing Portfolio Calculator

If you are using Vanguard, we have created a gone fishing portfolio using only low-cost Vanguard mutual funds to help save money on transaction costs.

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Marotta’s 2016 Gone-Fishing Portfolio

Gone Fishing

The gone-fishing portfolio provides suggested asset allocations for investors up to age 70 and up to $1 million.

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Marotta’s 2016 Gone-Fishing Portfolio Calculator

The fishes

A gone-fishing portfolio has a limited number of investments with a balanced asset allocation that should do well with dampened volatility.

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Why Invest In Chile?

Why Invest In Chile?

Adding a little bit of Chile to your portfolio can boost returns and reduce volatility.

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Mailbag: What Happened To The Markets In 2008?

Mailbag: What Happened To The Markets In 2008?

You shouldn’t invest in what you don’t understand.

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Do The Opposite of Wall Street Consensus?

Do The Opposite of Wall Street Consensus?

Contrarian indicators have paid off historically.

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Second Quarter and Year-to-Date Returns for Our 6 Asset Classes

YTD 2015 Asset Class Returns

Despite the headlines, the global equity markets posted gains last quarter and for the year.

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The Markets Are Inherently Volatile

Does Past Performance Have Anything To Do With Future Results?

Most investors don’t understand what that means.

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Marotta’s 2015 Vanguard Gone-Fishing Portfolio Calculator

Marotta's 2015 Vanguard Gone-Fishing Portfolio Calculator

If you are using Vanguard, we have created a gone fishing portfolio using only low-cost Vanguard mutual funds to help save money on transaction costs.

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Defining Your Sectors

Defining Your Sectors

The process of defining your sectors is an attempt to identify the quintessential features of your strategy and formalize your selection criteria.

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The Asset Allocation Within Your Asset Allocation

The Asset Allocation Within Your Asset Allocation

It is good to take the two categories which are most similar and use them as underlying sector divisions within the same larger asset class.

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Your Asset Allocation Should Be Priceless

Your Asset Allocation Should Be Priceless

The value of not running out of money when making withdrawals cannot be measured.

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The Art of the Rebalancing Bonus

The Art of the Rebalancing Bonus

Portfolio design and rebalancing is both a science and an art. Knowing that rebalancing boosts returns is useless unless you as the investor follow through.

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The Science of the Rebalancing Bonus

The Science of the Rebalancing Bonus

Rebalancing can both boost returns and lower volatility, but most investors do not understanding how.

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First Quarter 2015 Returns: Our 6 Asset Classes

Q1 2015 6 Asset Class Returns

Each quarter brings a different set of returns for each asset class and subcategory.

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Investment Strategies That Do Not Make Our Cut: Low Volatility

Investment Strategies That Do Not Make Our Cut: Low Volatility

There are three rules that we follow when looking for an investment strategy and the low volatility strategy fails two.

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Schwab Intelligent Portfolios: Incomplete Rebalancing Algorithm

Schwab Intelligent Portfolios

See our review of the two pros and nine cons of how Schwab monitors and rebalances portfolios.

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Investing Lessons from the Birth and Death of the Virginia Company

Investing Lessons from the Birth and Death of the Virginia Company

Investing in America began with the bankruptcy of the hottest stock in England.

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Schwab Intelligent Portfolios: Built on a Faulty Premise

Schwab Intelligent Portfolios: Built on a Faulty Premise

It is a great marketing campaign, and the service is a wonderful idea, but the asset allocations of SIPs aren’t actually that intelligent.

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Stock Ownership Is a Bad Strategy for Social Change

Stock Ownership Is a Bad Strategy for Social Change

You cannot help a company by buying its stock.

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Jack Bogle: The Value Of An Advisor Who Sticks To A Long Term Plan

Jack Bogle: The Value Of An Advisor Who Sticks To A Long Term Plan

“Advisers need to sell their value as keeping their clients from doing the wrong thing at the wrong time.”

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Jack Bogle: Investing Outside The United States

Jack Bogle: Investing Outside The United States

“We still have plenty of problems, but we’re much better than France, Britain and Germany.”

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What Is The Alternative To An Annuity?

Question hole

An immediate fixed annuity is not an investment; it is an insurance product.

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Returns from the Countries with Economic Freedom

Freedom Countries - 2014 Returns

Freedom investing beat the EAFE Foreign index by 7.92% in 2014.

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