AAII’s Best of the Web – Portfolio Tracking, Analysis & Optimization


This week’s AAII Weekly Digest highlights these “must-read” AAII articles:


Model Shadow Stock Portfolio: Handling Major Financial Statement RevisionsModel Shadow Stock Portfolio: Handling Major Financial Statement Revisions

Major revisions to financial statements have been rare among Shadow Stocks; their mere occurrence is not reason alone for a stock’s removal. Jim Cloonan offers his latest quarterly review of the AAII Model Shadow Stock Portfolio.

Asset Allocation, RMDs and Portfolio Survival

Craig Israelsen

Think of “asset allocation” as a portfolio recipe. Recipes naturally involve the blending of different amounts of various ingredients—usually followed by some type of cooking or baking. If we follow the recipe, the outcome is generally quite predictable. Where we purchase the ingredients is less important than knowing how much of each ingredient to use. Said differently, the recipe is more important than the source of the ingredients. The same is true with investing. A diversified portfolio not only increases return relative to risk, it can also boost the amount of income provided by RMDs. However, asset allocation, and not the fund families from which we buy the funds and ETFs, plays a much bigger role.

<em>Computerized Investing’s </em>Best of the Web:<br /> Portfolio Tracking, Analysis & OptimizationComputerized Investing’s Best of the Web: Portfolio Tracking, Analysis & Optimization

No matter what type of investor you are, keeping an eye on your portfolio is always a priority. Portfolio trackers allow you to garner useful insights into the productivity of your portfolio over time. Portfolio optimization goes a step further, using analytics to provide even deeper insights that you can use to make your portfolio more efficient. AAII’s Computerized Investing highlights several Best of Web candidates that we feel are above and beyond the rest for their simplicity, offerings and cost.

For Long-Term Investors, the Focus Should Be on Risk

There is a common notion that stocks, at least if held for a long time, usually outperform other assets, so that stocks should be the cornerstone of any long-term portfolio. When determining the optimal allocation for your own portfolio, it’s best to focus first on how much you are able and willing to lose. This article examines the factors that determine a person’s ability and willingness to take investment risk.

Our Member Question for this week is:

Ten years after the start of the financial crisis, what steps have you taken to improve your financial situation? Click all that apply.


Vote to answer this week’s Special Question:

What was the biggest impact of the financial crisis of 2007-2008 on your financial situation?

Last Week’s Results:

Non-qualified and qualified dividends each have a different tax rate. Non-qualified dividends are currently taxed as ordinary income at a rate of up to 39.6%, while qualified dividends are currently taxed at a lower rate of up to 20%. Do you consider the tax implications of qualified versus non-qualified dividends when selecting dividend-paying stocks?

Poll results are as of 9 a.m. (Central) on Monday. 1,841 respondents.

Qualified Versus Non-Qualified Dividends and Examining a Dividend’s Safety

For many investors, dividends are an excellent means of generating income for a portfolio. Depending on where you are in your investment life cycle, you may reinvest those dividends or use the income on various expenses. However, depending on the type of dividend being paid, you may face different tax considerations. Our latest reader survey asks whether our readers consider the tax implications of non-qualified dividends. In addition, we ask our readers what factors they consider when gauging the safety of a company’s dividend.

AAII E-Book: “Portfolio Building”

Individual investors are always being told that it is important to have an overall strategy for building an investment portfolio. However, for many that is also a case of “easier said than done.” While the basic concepts may be relatively easy, but they become more complex and less clear-cut when it comes to applying them to real-world situations. This e-book, available exclusively to AAII members, is designed to bridge the gap between theory and practice when building and maintaining your own investment portfolio.

The AAII Weekly Digest is one of the many benefits of AAII membership. To learn more, consider a risk-free Trial AAII Membership to start becoming an effective manager of your own assets.


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