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

Is Rebalancing a “Myth”?
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You ought to know what it is that you are rebalancing.

Marotta’s 2014 Gone-Fishing Portfolio
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A gone-fishing portfolio keeps investing simple.

Marotta’s 2013 Gone-Fishing Portfolio Review
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A review of last year’s 2013 gone fishing portfolio returns.

University of Virginia Best Plan 2014 Asset Allocation Recommendation
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Here is an asset allocation recommendation for the The University of Virginia Physicians Group 2014 BEST plan.

Marotta’s 2014 UVA TIAA-CREF TDSP Calculator
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Age appropriate asset allocation for 2014 using the choices available in the University of Virginia’s TIAA-CREF Tax Deferred Savings Plan (TDSP).

Retirement Plan Asset Allocation: University of Virginia Case Study
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Many people lack the time and expertise to develop an intelligent retirement asset allocation plan.

UVA Tax-Deferred Retirement Plan Asset Allocation Tools
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We have created several asset allocation tools to aid those seeking an intelligently diversified portfolio.

Is The Optimum Level Of Annuity Ownership Negative?
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Does it actually make sense that people should buy annuities as much as conventional wisdom says?

Northern Europe -July 2013 Returns
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Sweden appreciated 11.02% during the month.

Marotta’s 2013 Gone-Fishing Portfolio
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A gone-fishing portfolio has a limited number of investments with a balanced asset allocation that should do well with dampened volatility. Its primary appeal is simplicity. As a secondary virtue, it avoids the worst mistakes of the financial services industry.

Since 1979 The S&P 500 Grew 13.5 Times Greater Than The Price Of Gold
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Investing $512 in the S&P 500 at the end of 1979 grew with reinvested dividends for a total return of $19,323.19.

A Blended Investments Style Can Lead to High Returns With Low Risk
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A blended investment style for all markets can lead to high returns with low risk.

AAII 2013
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Follow-up information for 2013 AAII presentation “Dynamic Portfolio Construction in the Context of Comprehensive Wealth Management.”

2012 Asset Allocation in Review
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Asset Allocation means always having something to complain about.

Why Invest in the Emerging Markets?
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Four reasons not to abandon a brilliant allocation that includes emerging markets simply because of short term fluctuations.

How are Foreign Stocks Doing Compared to Stocks in the United States? Fall 2012
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Sometimes the medium term trend seems to weigh more heavily in our minds than the long or short term trends.

Valuable Property
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“Real estate investment trusts should be much more than an optional selection in a balanced investment portfolio.”

Four Reasons Convertible Bonds Are Flawed
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Generally speaking, financial complexity is a curtain behind which the finance industry can extract its fee. When the curtain is pulled back, convertible bonds fail to add value for four specific reasons.

Risk – Return Decisions
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Portfolio construction begins with the most basic allocation between investments that offer a greater chance of appreciation (stocks) and those that provide portfolio stability (bonds). There is no such thing as a safe investment that pays market rates of return.

Emerging Market Bond Funds
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Emerging market bonds are an attractive way to get a higher yield, but historically they have come with higher volatility and a high incidence of default. But that has been changing.

Marotta’s 2012 Gone-Fishing Portfolio
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A gone-fishing portfolio has a limited number of investments with a balanced asset allocation that should do well with dampened volatility. Its primary appeal is simplicity. As a secondary virtue, it avoids the worst mistakes of the financial services industry.

When Large Cap is Relatively Cheap It Will Outperform Small Cap
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Currently large is relatively cheap and small cap is relatively expensive. For that reason, the R1000 or S&P 500 should outperform the R2000 small cap.

The Shiller Ten-Year P/E Ratio
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What we would really like to measure are the changes in price (P) that cause a company with a good long-term track record to look relatively cheap. Economist Robert Shiller created just such a measurement.

Style Boxes and the Efficient Frontier
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The Marotta allocation method is a proportionally weighted allocation based on the square of each Sharpe ratio. Squaring the Sharpe ratio drastically reduces asset categories in proportion to their distance from the efficient frontier.

Asset Allocation and the Efficient Frontier
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Crafting portfolio asset allocations is a combination of art and engineering. Just as a blending of colors can produce cerulean, so a blending of indexes produces a unique shade of risk and return.

$ ?s: Dividend Portfolios Carry Hidden Risks (Part 1)
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Dividend investors are too easily lulled into the temporary comforts of portfolio income.

Capital Gains Tax Rising
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Starting in 2013, pending further legislation, the capital gains tax will go up to 20%.

The Efficient Frontier
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The efficient frontier measures all investments on a scale of risk and return. Risk is commonly placed on the x-axis, and return is placed on the y-axis.

Value: The Third Factor of Investing
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A stock’s valuation is measured on a continuum from “value” to “growth” In broad strokes, value stocks are cheap and growth stocks are expensive.

Size: The Second Factor of Investing
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The second factor of investing is size as measured by a stock’s total capitalization. Over time small cap will outperform large cap even after factoring out measurements of volatility.

CAPM: The First Factor of Investing
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Modeling investment returns seeks to find an equation to predict your expected returns as much as possible. The simplest equation for the markets would be “Return equals 11.71%.” This has been the average return from 1927 through 2010, the zero factor model.

Freedom Investing 2012
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Now at year end, I will review how freedom investing fared in 2011 and in the decade since 2002.

Mailbag: How Do You Measure How Far Out of Balance a Portfolio Is?
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We compute an asset allocation deviation or “out of balance” number for each household’s primary retirement assets and rebalance to lower this number.

$ ?s: Investment Advice for Those Who Don’t Need the Money
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Q: I am a 65-year-old retired widow and I have a large IRA. How should I invest if I don’t need this money?

Indexing Works
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“Many investors think active managers can shift out of stocks in time to stem losses in bear markets. Not true.”

Debt, Uncertainty and Volatility in 2011
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The world markets groaned as the burden of the rising American debt and the European deficit weighed down more productive countries.

The Devil’s Invention
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“A blindfolded chimpanzee throwing darts at The Wall Street Journal can select a portfolio that can do just as well as the experts.”

Video: Where Do You Invest? Learn All Six Asset Classes
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Most investors invest in only one and a half of the six asset classes. Learn where to invest in all six and how to tilt in each to over-emphasize appropriate categories.

Being Reasonable
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“One of an advisor’s greatest challenges? Directing client expectations – and meeting them with portfolio performance.”

Book Review: The Investment Answer
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When Gordon Murphy, an investment banking veteran, was told he only had six months to live, he decided to use his last days to write a book aimed at changing the way most individual investors think about investing.

The Talmud Strategy
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“Let every man divide his money into three parts, and invest a third in land, a third in business and a third let him keep by him in reserve.”

Your Portfolio Needs Rebalancing
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Most investors do not have a balanced portfolio. And by chasing investment returns they miss the easy money they could make from having a good asset allocation in the first place and rebalancing it periodically.

Investing Mostly in Bonds Means a Lower Lifestyle in Retirement
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In the midst of this turmoil, especially after this past summer’s sharp drop, many investors wonder if they should put all of their investments into something safe and avoid the markets altogether.

Is My House an Investment?
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Just because something costs a lot doesn’t mean it is an investment. An investment is something that pays you money.

Money Questions: Benchmark Your Retirement Savings
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Q: I just hit the big 5-0, and my retirement date is now in the foreseeable future. How do you suggest I assess the performance of my 401(k) and investment accounts? Do you have any benchmark recommendations? I would like … Read More

Mailbag: Is There a Certain Roth You Recommend?
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I’m in my 20s and I’m just getting started in the working world. I’m also looking at a Roth IRA. Is there a certain Roth you recommend?

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