Traditional asset allocation methodologies such as modern portfolio theory define risk as volatility, which measures to what extent do returns deviate from the expected average outcome. In other words, how high are the highs and how low are the lows relative to the average. The problem with this approach is as investors we shouldn’t be worried about above average returns or upside volatility. We care about below average returns, particularly portfolio losses. Consequently, the Money … [Read more...]

This page contains the historical returns and risk for the adaptive and static model portfolio examples. The adaptive models have been less volatile with lower maximum drawdowns than the static models, due to the adaptive models' greater diversification, higher cash flows, lower interest rate sensitivity, and value orientation. Performance for the periods ending September 30, 2024 Performance is annualized for periods longer than one year. … [Read more...]

Here are the list of changes to the Adaptive Model Portfolio Examples since their inception in April 2016. On March 9, 2024, the adaptive models were adjusted to increase stock exposure. You can read more about these changes here. On June 24, 2022, the adapted models were adjusted to reduce equity exposure and credit risk. You can read more about these changes here. On January 7, 2022, the adapted models were adjusted to reduce equity REIT exposure and eliminate the allocation to … [Read more...]

Assumptions were last updated in January 2024 and are revised at least annually or on an as-needed basis. The assumptions assume an annual inflation rate of 3.0%. Gold, Commodity Futures and Cryptocurrencies Gold, commodity futures, and cryptocurrencies are speculations. Speculations are asset categories where there is disagreement about whether the returns will be positive or negative. Given the high level of uncertainty for these asset types, historical returns were used for gold and … [Read more...]

This spreadsheet can assist you in categorizing your investment portfolio by asset class. The spreadsheet calculates the expected return, range of returns, maximum drawdown, and recovery based on the Money For the Rest of Us asset allocation assumptions. The spreadsheet uses the most recent asset allocation assumptions. The assumptions were updated in January 2024. Download the Asset Mix Template Spreadsheet https://vimeo.com/748117710 … [Read more...]

This video lesson and spreadsheet will show you how to calculate performance for your investment portfolio. Click Here To Download the Return Calculation Spreadsheet https://vimeo.com/114724271 … [Read more...]

This video is on how to evaluate and invest in mortgage real estate investment trusts. Topics covered include: Characteristics Tax treatment Risks Return drivers Historical Returns How to evaluate and invest https://vimeo.com/462189611 Transcript Download the transcript This video is on mortgage real estate investment trusts and how to invest in them. Mortgage real estate investment trusts, or mortgage REITs, sometimes called mREITs, are indirect investment … [Read more...]

This video reviews the various portfolio decisions individual investors have to make and how the Money For the Rest of Us Plus portfolio examples can be of help in making those decisions. https://vimeo.com/456971995 Transcript Download the transcript This video provides an overview of the Money For the Rest of Us Plus portfolio examples and how to use them.  Portfolio Decisions to Make Let's consider all the myriad portfolio management decisions we have to make as … [Read more...]

This video is on options strategies including protecting against portfolio losses and investing in volatility. Topics covered include: How options work Factors that determine option prices How put options are used to protect portfolios against losses Example ETFs that employ option strategies How to invest in volatility Example ETFs and ETNs for investing in volatility https://vimeo.com/452864123 What is Roll Yield and How It Impacts Commodity and VIX ETF … [Read more...]