June 30, 2015

Asset Allocation

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

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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2014 Returns for Our 6 Asset Classes

6 Asset Classes - 2014 Returns

When asset classes are not correlated that means they often move in different directions.

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Does Past Performance Have Anything To Do With Future Results?

Does Past Performance Have Anything To Do With Future Results?

Is there a correlation which would justify talking about “the momentum of the markets”?

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Does Market Volatility Cause Post-Traumatic Stress?

Does Market Volatility Cause Post-Traumatic Stress?

The best antidote to the stress of market volatility is to understand that the markets are inherently volatile.

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Guess What Statistic Has The Highest Correlation With The S&P 500?

Guess What Statistic Has The Highest Correlation With The S&P 500?

David Leinweber calls this technique, “torturing the data until it screams.”

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Marotta’s 2015 Gone-Fishing Portfolio

Fog Fishing

A gone-fishing portfolio keeps investing simple.

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Marotta’s 2014 Gone-Fishing Portfolio Review

The fishes

A review of last year’s 2014 gone fishing portfolio returns.

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Marotta’s 2015 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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November 2014 Returns for Our 6 Asset Classes

November 2014 Returns -6 Asset Classes

Here are the returns for our six Asset Classes from November 2014.

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August – October 2014 Returns for Our 6 Asset Classes

6 Asset Classes - 8-10-14

Here are the returns for our six Asset Classes from August 2014 – October 2014.

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Bogle’s Best Advice: Don’t Peek

Don't Peek

When it comes to finances, just shut your eyes and keep them closed.

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If You Wouldn’t Buy It, Why Keep It?

Lego Shop

The stock market is one of the few places that when things go on sale we are less likely to want to buy.

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Should You Be Building Bond Ladders In This Lower Rate Environment?

Ladder from above

There was an interesting article by Joseph Lisanti in Financial Planning Magazine entitled, “Should You Be Building Bond Ladders?” which read in part: As with many strategies, laddering works best for clients with sufficient assets to benefit fully from it. “It is a tried-and-true strategy,” says Morris Armstrong of Armstrong Financial Strategies, an RIA in [...]

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Advisors Focus On Panic Prevention In Volatile Market

Panic Button

Our brains are not wired well for handling the fluctuations in the stock market. Could a financial advisor help?

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Active vs. Passive: Where Money’s Flowing

Fish flow

Here is the number one criteria you should use in your fund screen.

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How To Diversify Highly Appreciated Stock

Dog and Turtle

Exchange funds, also know as swap funds, can provide investors with one highly appreciated security a way to trade it for an equivalently valued but more diversified portfolio.

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Driving Emotions From Your Investment Process: A 12-Step Program

Brain Scan

Don’t let short term volatility ruin a brilliant long term investment strategy.

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What Asset Allocation Should I Have For My Schwab Donor Advised Fund?

Pie Chart

Keeping your donor advised fund invested could result in more benefit to the charities you support.

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AAII 2014

David John Marotta presenting

The articles associated with David John Marotta’s presentation at the DC Metro chapter of the American Association of Individual Investors.

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Style Box Annualized Returns For The Past Three Years

Morningstar 3-year stylebox returns 2014-08

Morningstar data for the 3-year annualized returns based on style boxes shows us three interesting lessons.

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Real Returns Favor Holding Stocks

Real returns favor holding stocks

There are several important lessons to learn from this graph.

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Mailbag: What Is The One Fund Should I Invest In?

Rainbow Stars

Here’s how to earn a slow million.

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Why a Monkey Throwing Darts Could Boost Your Returns

Mandrills are the world's largest monkey.

Not aiming for where the money is should boost returns.

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The Efficient Frontier Of Investing

Blended Efficient Frontier

Many investors don’t appreciate asset allocation or understand intuitively how a diversified portfolio can exceed the sum of its parts.

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Freedom Investing Since 2000

Freedom Investing 2000-2016-06

Recently we did an analysis of the returns of the MSCI Country Specific Indexes

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The Wealth Of Nations Is Their Freedom

Berry Hard Work

“When institutions protect the liberty of individuals, greater prosperity results for all.” – Adam Smith

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Freedom Investing Beats EAFE Index by 3.92% Annualized Over Past Decade

Freedom Investing 2014-06

Over the past decade the economically free countries have an annualized return of 11.34%. The S&P 500′s annualized return was 7.78%.

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Don’t Do Something. Just Stand There!

Sisters Forever

You learn a lot by the discipline of reading old news.

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Mailbag: Can I Roll My IRA Into A REIT Tax-Free?

Can I Roll My IRA Into A REIT Tax-Free?

A reader asks, “My wife has a $250K SEP IRA earning 1.5% interest. Can we use any of the funds for real-estate investments?”

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Does Every Client Get Put Into One Of A Few Investment Allocations?

Buckets

The short answer is, “No.”

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What Benchmark Should I Measure My Return Against?

Bad Benchmarking

Don’t let the noise of random returns ruin a brilliant investment strategy.

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Tax By Inflation

The Fading Dollar

In its simplest form, the government prints money and uses the newly printed currency to fund government spending.

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Quantitative Easing And The Federal Reserve’s Balance Sheet

Inflation

Government officials argue that consistent deficits are good for the economy, if we were only willing to go high enough.

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Is Rebalancing a “Myth”?

Stacked stones

You ought to know what it is that you are rebalancing.

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