Risk Parity Radio podcast

#Trading #Business #Frank Vasquez

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We're trying something different this week: a full post-show breakdown of every episode in the latest season of Black Mirror! Ari Romero is joined by Tudum's Black Mirror expert, Keisha Hatchett, to give you all the nuance, the insider commentary, and the details you might have missed in this incredible new season. Plus commentary from creator & showrunner Charlie Brooker! SPOILER ALERT: We're talking about the new season in detail and revealing key plot points. If you haven't watched yet, and you don't want to know what happens, turn back now! You can watch all seven seasons of Black Mirror now in your personalized virtual theater . Follow Netflix Podcasts and read more about Black Mirror on Tudum.com .…

Risk Parity Radio

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Risk Parity Radio is a podcast about investing located at www.riskparityradio.com. RPR explores risk-parity style portfolios comprised of uncorrelated or negatively correlated asset classes -- stocks, selected bonds, gold, managed futures, and other easily accessible fund options for the DIY investor. The goal is to construct portfolios that are robust and can be drawn down on in perpetuity, and to maximize projected Safe Withdrawal Rates regardless of projected overall returns.

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Risk Parity Radio

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420 एपिसोडस

#Trading #Business #Frank Vasquez

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Risk Parity Radio

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Episode 418: Different Drummers, Even More GDE, Nice Blogging When You Can Get It, And Portfolio Reviews As Of April 25, 2025 42:33

2 days ago42:33

42:33

In this episode we answer emails from Jeff, Jenzo and Sam. We discuss spending money on relationships, a 72(t) situation, what to do with an unused Coverdell, GDE (again), a nice risk parity write-up and some random musings about the history of free speech and communications technologies. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Jenzo's GDE Backtest: testfol.io/?s=0SLNjC7As4b Sam's Most Excellent Risk Parity Explication Blog Post: 15 Uncorrelated Assets | SSiS Sam's Most Excellent Bill Of Rights Blog Post: Boxed In | SSiS Breathless Unedited AI-Bot Summary: When markets tumble and headlines scream doom, properly diversified portfolios reveal their quiet strength. This episode showcases exactly that phenomenon - while small cap value has plummeted 15.58% and the S&P 500 has shed 5.74% year-to-date, gold has soared a remarkable 25.87%, creating a balancing effect that keeps risk parity portfolios remarkably stable. We dive into listener Jeff's retirement strategy, examining his use of 72T distributions and exploring whether his recent RV purchase makes financial sense. The answer turns out to be more about relationships than raw numbers. Research shows expenditures that facilitate meaningful connections tend to yield the greatest happiness returns - a powerful framework for evaluating major purchases in retirement. The emerging world of composite leveraged ETFs takes center stage as we examine GDE, which combines S&P 500 exposure with gold allocation at 1.8x leverage. While innovative funds like these package risk parity principles into convenient solutions, they represent a tradeoff between simplicity and control. We explore whether these instruments belong in a sophisticated asset allocation strategy or if traditional single-asset funds still offer superior flexibility. For investors fascinated by portfolio design theory, we tackle the question of just how many truly uncorrelated assets one needs. While hedge funds and endowments might pursue 15+ distinct asset classes, diminishing returns suggest a more practical approach for individual investors. The mathematical reality shows the incremental benefit of adding that 11th or 12th asset pales in comparison to the impact of moving from one or two assets to five diverse investments. Our weekly portfolio review reveals the practical power of these principles. Despite market turmoil, most of our sample portfolios remain nearly flat or slightly positive for the year - precisely the stability risk parity promises. Whether you're just beginning your investment journey or fine-tuning an established strategy, this episode offers both theoretical frameworks and practical evidence for building resilient portfolios in uncertain times. Ready to hear more? Subscribe, leave a review, and send your questions to frank@riskparityradio.com. Support the show…

Risk Parity Radio

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Episode 417: International Growth Funds, DSTs, Portfolio Transitions And Other Questions And Quandaries 32:52

5 days ago32:52

32:52

In this episode we answer emails from Marco Esquandolas and Multi-Family Investor. We discuss a long-term diversified Roth portfolio for a 13-year old, modelling Delaware Statutory Trusts in a portfolio, transitioning out of an all S&P 500 allocation in a taxable account, PFIX, Sabine Royalty Trust and individual stocks in retirement portfolios, and M1 Finance. Note/Correction: Sabine is actually NOT structured like an MLP but as a true trust and therefore issues 1099s, not K-1s like most companies in the oil & gas royalty space. Links: Shannon's Demon Article: Unexpected Returns: Shannon's Demon & the Rebalancing Bonus – Portfolio Charts IDMO vs EFG (and other international growth funds) Analysis: testfol.io/analysis?s=4PEQ1YvTbAM Breathless Unedited AI-Bot Summary: Dive into the world of strategic portfolio building with this illuminating episode where Frank tackles questions from two distinct investors at opposite ends of the age spectrum. A father shares his 13-year-old son's Shannon's Demon-inspired portfolio that's being built for an ultra-long 50+ year time horizon, featuring a balanced approach to growth and value across both domestic and international markets. Frank offers targeted advice on fund selection while celebrating this young investor's precocious financial journey. The conversation shifts dramatically when an engineer earning $250,000-300,000 annually shares his detailed retirement strategy with hopes of financial independence before 50. With $3.4 million spread across multiple investment vehicles including real estate, this listener puzzles over how to transition to a risk parity portfolio without triggering a substantial tax bill. Frank methodically dissects several aspects of this complex situation, questioning the wisdom of backdoor Roth conversions during peak earning years and clarifying misconceptions about Delaware Statutory Trusts as bond substitutes. What makes this episode particularly valuable is Frank's blend of technical advice and practical wisdom. He cuts through complex tax and investment strategies to offer straightforward solutions - identifying tax-loss harvesting opportunities, rethinking account structures, and focusing on expenses rather than arbitrary portfolio targets. The discussion extends to specialized investments like royalty trusts and interest rate hedges, providing listeners with a masterclass in portfolio construction that balances theoretical ideals with real-world constraints. Whether you're managing investments for the next generation or planning your own early retirement, this episode delivers actionable insights on building resilient, tax-efficient portfolios tailored to your unique circumstances. The principles shared apply across market conditions and investment goals, making this essential listening for any DIY investor seeking to optimize their financial future. Support the show…

Risk Parity Radio

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Episode 416: The Tau Of El Yama, Accumulation Versus Decumulation Portfolios, Cracked CAPE Crystal Balls And Portfolio Reviews As Of April 18, 2025 43:01

9 days ago43:01

43:01

In this episode we answer emails from El Yama, Graham, and James. We discuss using risk parity-style portfolios for intermediate term needs, the short-term bond allocation in the Golden Butterfly, accounting for child credit, rising equity glidepaths, the fundamental differences between 100% stock portfolios and diversified portfolios and why you want the latter for retirement unless your goal is to die with the most money, and a CAPE ratio critique from Meb Faber's podcast. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Kitces Article re Rising Glidepaths: The Benefits Of A Rising Equity Glidepath In Retirement Kitces/Pfau Paper re Rising Glidepaths: Reducing Retirement Risk with a Rising Equity Glide-Path by Wade D. Pfau, Michael Kitces :: SSRN Meb Faber Podcast with Brian Jacobs discussing problems with CAPE ratio predictions: A Century of No Return! The Truth About The Beloved Bonds (Brian Jacobs of Aptus Reveals) Breathless Unedited AI-Bot Summary: "A foolish consistency is the hobgoblin of little minds," begins this thought-provoking exploration of why most investors are trapped in accumulation-phase thinking even as they approach or enter retirement. The question at the heart of this episode strikes at a surprising disconnect in personal finance: Why do so many investors intellectually understand they're investing to enjoy retirement, yet construct portfolios clearly designed to maximize wealth at death? Through a series of illuminating listener emails, Frank unpacks how portfolios optimized for accumulation often fail spectacularly during the decumulation phase. One listener confesses he "always wondered why anyone would buy bonds when clearly stocks give a far greater return," before discovering through portfolio testing that a 100% equity portfolio would have "failed catastrophically" for someone retiring around 2000-2003. This recognition—that diversification isn't about maximizing returns but enabling sustainable withdrawals—represents the fundamental insight many investors miss until too late. As Frank colorfully puts it, if your goal is to "die with the most money possible" in your "golden coffin," then by all means stick with 90-100% equities. But if you actually intend to enjoy your retirement by spending more than 3% of your portfolio annually, a properly diversified approach becomes essential. The episode also addresses why attempts to use valuation metrics like CAPE ratios to predict market movements have largely failed, and why separating your portfolio into growth and value components offers a more reliable approach to capturing rebalancing bonuses without attempting market timing. Make sure your investment behavior actually matches your stated goals. If you're planning to spend in retirement, construct a portfolio that optimizes for sustainable withdrawals, not maximum theoretical returns. Support the show…

Risk Parity Radio

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Episode 415: A Smorgasbord Of Annuities, TIP Ladders, Currency Speculations And Other Gambling Problems 27:53

13 days ago27:53

27:53

In this episode we answer emails from Corn Pop, Dustin and Jim. We discuss annuities for elderly parents, TIPS ladders in retirement, REITs in small cap value funds, currency speculation, the GDE fund (again) and an aggressive portfolio construction. Link: Interview of Michael Kitces Re Problems With TIPS Ladders: Michael Kitces: How Higher Yields Affect Asset Allocation and Retirement Planning | Morningstar Breathless and Promotional AI-Bot Summary: Dive into the mailbag as Frank tackles complex investment questions with his signature blend of expertise and pop culture references. This episode unpacks several critical financial planning dilemmas that challenge conventional wisdom. First, Frank examines when annuities make sense for elderly parents, explaining how health prospects and longevity expectations should guide this decision. For those likely to outlive actuarial tables, annuities can provide financial value and simplify management—but they're far from universally beneficial. Frank introduces Qualified Longevity Annuity Contracts (QLACs) as a strategic option for those concerned about funding long-term care in their later years. The conversation shifts to a provocative take on TIPS ladders, with Frank describing long-term ladders as "a flex for hoarders" rather than necessary financial tools. He argues these complicated structures work best for defined periods with specific purposes—like bridging to Social Security—not as decades-long income vehicles that will inevitably be either too long or too short for your actual lifespan. Currency speculation, Bitcoin, and aggressive portfolio construction round out the episode's explorations. Frank explains how currency exposure already exists implicitly in international stocks and gold without dedicated speculation, evaluates an aggressive portfolio with substantial Bitcoin allocation, and questions whether dividend stocks belong in accumulation strategies. Throughout, Frank balances technical analysis with practical wisdom, reminding listeners that personalized investment approaches must account for individual circumstances rather than following generic advice. Whether you're managing a retirement portfolio or building wealth, you'll gain valuable perspective on how the finest investment strategies align with your actual needs rather than theoretical ideals. Want your questions answered on a future episode? Email frank@riskparityradar.com and don't forget to subscribe and leave a review! Support the show…

Risk Parity Radio

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Episode 414: Another RPR Variation, More Cowbell, Accounting For Social Security And Portfolio Reviews As Of April 11, 2025 28:32

16 days ago28:32

28:32

In this episode we answer emails from Jeremy, Brad, and James. We discuss a more aggressive risk-parity portfolio similar to the Weird Portfolio, the problems with data analysis and recency bias and considerations in accounting for Social Security or pensions in retirement portfolio planning. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Jeremy's Portfolio on Portfolio Visualizer: https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&sl=LDhLHuhVF5zOKfTZckLT7 Weird Portfolio: Weird Portfolio – Portfolio Charts Testfolio Portfolio Comparison (90/10 vs. 50/50): https://testfol.io/?s=2TDnqWEw5FE Bogle Interview (re Social Security): Jack Bogle on Index Funds, Vanguard, and Investing Advice Kitces Interview (re Social Security): Social Security: Part of Your Asset Allocation? Breathless AI-Bot Summary: "A foolish consistency is the hobgoblin of little minds," begins this episode, capturing the essence of breaking away from conventional investment thinking. Stepping into Frank's metaphorical "dive bar of personal finance," listeners are treated to an exploration of portfolio diversification during turbulent market conditions. Frank tackles three thought-provoking listener questions that challenge common investing assumptions. First, he analyzes a balanced portfolio proposal with equal allocations to large-cap growth, small-cap value, REITs, long-term treasuries, and gold, explaining why this more aggressive risk parity approach shows promising safe withdrawal rates. The conversation shifts to the dangers of recency bias when a listener questions the underperformance of a 50-50 small-cap value/large-cap growth portfolio over just five years. Frank emphasizes that even a decade of data can be "just noise" when evaluating investment strategies, reminding us to focus on performance during challenging market periods rather than recent returns. Perhaps most compelling is Frank's fresh perspective on integrating Social Security into financial planning. Challenging the notion that Social Security should be viewed as fixed-income allocation, he suggests treating it more like an annuity that reduces expenses rather than an asset within your portfolio. This shifts the conversation from wealth preservation to life maximization, encouraging retirees to consider increasing discretionary spending rather than hoarding assets. The weekly portfolio review reveals a fascinating market story: while the S&P 500 has fallen 8.64% year-to-date and small-cap value has plummeted 19.69%, gold has surged 23.12%. This perfect illustration of risk parity principles shows how properly diversified portfolios maintain remarkable stability despite individual asset volatility. The unlevered sample portfolios remain down less than 1% year-to-date, demonstrating the power of hearing that "different drummer" when constructing your investment approach. Have questions about building your own diversified portfolio? Email frank@riskparityradio.com or visit the website to connect directly. Don't forget to subscribe and leave a review wherever you listen to podcasts! Support the show…

Risk Parity Radio

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Episode 413: Overcoming Financial Setbacks, Finance Board Follies, Inflation And Large Cap Growth Funds In Merriman Portfolios 33:57

20 days ago33:57

33:57

In this episode we answer emails from Harry, Sally, Jack and Javon. We discuss recovering from financial set-backs, my life on the Choose FI board, assets that do well in inflationary environments and large cap growth funds like MGK in Merriman-type portfolios. Links: Father McKenna Center Donation Page: Donate - Father McKenna Center Mindset by Carol Dweck: Mindset: The New Psychology of Success by Carol S. Dweck | Goodreads Bloomberg Presentation On Investments In Inflationary Environments: MH201-SteveHou-Bloomberg.pdf Shannon's Demon Article from Portfolio Charts: Unexpected Returns: Shannon's Demon & the Rebalancing Bonus – Portfolio Charts Testfolio Analysis of MGK and other funds: testfol.io/analysis?s=lbssElueG9D Amusing Unedited AI-Bot Summary: When financial disaster strikes, where do you turn? In this deeply empathetic episode, Frank Vasquez responds to a listener who's lost nearly everything through leveraged investments caught in market turmoil. His compassionate yet practical response offers a roadmap back from financial devastation, emphasizing that starting from net worth zero with income potential creates a foundation many successful investors have built upon. The conversation shifts to examining the psychology behind financial social media, where Frank taxonomizes poster behaviors into revealing categories. From genuine question-askers to Dunning-Kruger sufferers repeating harmful advice from financial media marketing materials disguised as guidance, this analysis helps listeners navigate confusing information landscapes. His take on affirmation-seekers posting humble brags or seeking validation for poor decisions provides particular insight into why certain destructive financial ideas persist online. With inflation concerns mounting due to potential tariffs and immigration restrictions, Frank offers practical portfolio protection strategies beyond traditional TIPS, which merely help investors tread water rather than outperform during inflationary periods. His breakdown of managed futures, commodities, value-tilted stocks in hard assets, and property/casualty insurance companies provides actionable alternatives. The discussion culminates in comparing investment theorist Paul Merriman's value-tilted ETF recommendations with Frank's diversification approach using Shannon's Demon principles, demonstrating how different philosophical frameworks can lead to successful long-term investing. What distinguishes this episode is Frank's ability to balance technical expertise with emotional intelligence, offering not just investment strategies but wisdom about resilience and perspective during financial hardship. Whether you're recovering from losses or preparing for economic uncertainty, this episode delivers both tactical guidance and reassuring wisdom from someone who's weathered financial storms himself. Have questions? Connect at frank@riskparityradar.com or through the website contact form. Please like, subscribe, and share with fellow investors seeking thoughtful financial guidance. Support the show…

Risk Parity Radio

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Episode 412: Market Turmoil, Guardrails Withdrawals, Useful UK Sites, Bonds, Small Caps And Portfolio Reviews As Of April 4, 2025 43:32

23 days ago43:32

43:32

In this episode we answer emails from Ron, Iain, an Anonymous Visitor and Mr. Data. We discuss Ron's generosity and his variable or guardrails withdrawal strategy, some helpful British website references, what we use bonds for in these portfolio and how the TSP G fund fits into that, and small cap growth vs. small cap value stocks. And some notes on recent market turmoil. And THEN we our go through our weekly and monthly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Father McKenna Center Donation Page: Donate - Father McKenna Center Portfolio Charts Retirement Spending: Retirement Spending – Portfolio Charts Monevator Quilt Chart: Asset allocation quilt – the winners and losers of the last 10 years - Monevator Just ETF (UK) Page: ETF portfolios made simple Shannon's Demon Article: Unexpected Returns: Shannon's Demon & the Rebalancing Bonus – Portfolio Charts Amusing Unedited AI-Bot Summary: Market crashes reveal the true value of diversification. While Professor Jeremy Siegel called last week's events "the worst policy mistake in US economic history in the last 95 years," properly structured portfolios weathered the storm remarkably well. The recent market plunge shows exactly why risk parity strategies work—the S&P 500 dropped 13.3%, NASDAQ fell 17.2%, but our All Seasons portfolio remained flat for the year. This divergence creates powerful rebalancing opportunities that can enhance long-term returns. Looking at performance across asset classes reveals a classic recession pattern: falling stocks, rising treasury bonds, and initial panic selling followed by differentiated recoveries. Long-term Treasury bonds (VGLT) are up 7.2% for the year, demonstrating their crucial diversification role during market stress. Gold, despite some wobbles, remains up 15.7% year-to-date. The mathematical principle behind this outperformance is what Claude Shannon described as "Shannon's Demon"—when assets perform differently at different times, periodic rebalancing allows the portfolio to outperform any individual component. This explains why we maintain exposure to both growth and value styles, rather than trying to predict which will outperform next. For DIY investors, this market correction offers valuable lessons about portfolio construction. Understanding why you hold each asset—whether for stability, income, or diversification—is far more important than chasing yields. The Golden Butterfly portfolio, with its balanced approach across stocks, bonds, and gold, is only down 1.78% year-to-date while continuing to provide consistent distributions. Want to learn more about building resilient portfolios? Visit riskparityradio.com for sample portfolios and detailed resources, or email your questions to frank@riskparityradio.com. Support the show…

Risk Parity Radio

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Episode 411: Portfolios For Accumulators, Assorted Fund Considerations, And That Infernal Cederburg Thing That Won't Go Away 46:05

26 days ago46:05

46:05

In this episode we answer emails from Michael, Brian and Ed. We discuss Michael's situation and options as a 34-year old with growing portfolios and a growing family, Brian's questions about the infernal Cederburg paper that won't go away and Ed's questions about accumulation portfolios. Links: Father McKenna Center Donation Page: Donate - Father McKenna Center Testfolio Comparison between Total Market and Large Cap Growth: testfol.io/analysis?s=0GbmPE8D9GK Merriman Best In Class ETFs: Best-in-Class ETF Recommendations | Merriman Financial Education Foundation Shannon's Demon Article: Unexpected Returns: Shannon's Demon & the Rebalancing Bonus – Portfolio Charts Rational Reminder Podcast #350: Episode 350 - Scott Cederburg: A Critical Assessment of Lifecycle Investment Advice — Rational Reminder An Actually Useful Analysis of Global Portfolios: What Global Withdrawal Rates Teach Us About Ideal Retirement Portfolios – Portfolio Charts Brian's Golden Butterfly Monte Carlo: Monte Carlo Simulation Brian's All Equity 50/50 Monte Carlo: Monte Carlo Simulation Brian's All Equity 34/66 Monte Carlo: Monte Carlo Simulation Amusing Unedited AI-Bot Summary: Frank Vasquez tackles the complex world of portfolio construction across different life stages, offering practical wisdom mixed with his trademark humor for investors at all levels. This episode dives deep into a $1 million portfolio review, addressing how to balance real estate investments with securities, manage excess cash, and prepare for eventual retirement. A key highlight is Frank's thorough debunking of a frequently misunderstood academic study suggesting all-equity portfolios are optimal for retirement. With mathematical clarity, he explains why the study's unusual methodology comparing non-reserve currency bonds to U.S. equities across disconnected historical periods doesn't translate to practical investment advice. His Monte Carlo simulation comparisons confirm that diversified portfolios consistently outperform all-equity approaches during drawdown scenarios. The episode offers particularly valuable insights on pairing large-cap growth with small-cap value investments – not because either category is predicted to outperform, but because they create effective rebalancing pairs operating on different cycles while delivering similar long-term returns. This mathematical principle, known as Shannon's demon, shows how two assets with comparable returns but different timing can outperform either investment held alone. For younger investors still accumulating wealth, Frank recommends focusing on equity exposure while avoiding unnecessary complexity. His practical advice extends to managing investments across different account types, structuring 401(k) investments with limited options, and maintaining psychological fortitude through market cycles. Whether you're managing a complex portfolio or just starting you Support the show…

Risk Parity Radio

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Episode 410: PHYS For Gold, AVGE For Stocks, Tail Risk Hedging And Portfolio Reviews As Of March 28, 2025 33:29

30 days ago33:29

33:29

In this episode we answer emails from Deeps, David, James, Steven and Jordan. We discuss the PHYS vs other gold ETFs, the podcast feed link, using AVGE in a risk parity style portfolio, why we do this and tail risk hedging. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: PHYS vs. GLDM: testfol.io/analysis?s=1lK9VB9xqaM RPR Main Feed Link (all the podcasts -- open in browser): Risk Parity Radio RSS Feed AVGE Composition And Other Info: AVGE – Portfolio – Avantis All Equity Markets ETF | Morningstar Portfolio Matrix: Portfolio Matrix – Portfolio Charts CAOS Fund: CAOS – Alpha Architect Tail Risk ETF – ETF Stock Quote | Morningstar Amusing Unedited AI-Bot Summary: Gold continues to shine while stocks falter in 2024's challenging market environment. This episode demonstrates the power of diversification during turbulent times, with precious metals up over 17% year-to-date as the S&P 500 struggles down nearly 5%. We explore why truly diversified portfolios are proving their worth yet again. Responding to a listener question about gold ETFs, I break down why PHYS's potential tax advantages rarely outweigh its higher expense ratio compared to traditional options like GLD. The physical gold redemption feature sounds appealing but offers little practical benefit for most investors. The entire physical gold storage industry largely profits from fear rather than delivering substantive advantages to everyday investors. The highlight of this episode comes from a fascinating listener discovery – combining the comprehensive Avantis AVGE fund with treasuries and gold creates a remarkably simple yet effective portfolio. This approach addresses a critical concern: ensuring surviving spouses can easily manage investments without sacrificing performance. Our analysis using Portfolio Charts shows this simplified approach delivers comparable results to more complex allocations while dramatically reducing management complexity. We also tackle tail risk hedging strategies, explaining why these insurance-like approaches rarely justify their ongoing costs, especially for investors in the accumulation phase. True diversification provides more reliable protection than specialized instruments designed to profit from market crashes. The portfolio performance review tells the real story – while traditional stock allocations struggle, our diversified sample portfolios are mostly holding steady or positive for the year. Historical patterns suggest diversified portfolios experience down years only about 20% of the time versus 30% for traditional approaches – a meaningful difference that compounds over retirement timeframes. Have questions about navigating today's challenging markets? Send them to frank@riskparityradio.com – I'd love to answer them in an upcoming episode! Support the show…

Risk Parity Radio

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Episode 409: The PFFA Fund, TSP Allocation Considerations And Those New-Fangled Return Stacked Funds 34:05

5 weeks ago34:05

34:05

In this episode we reflect on our recent meet-up and answer emails from Chris, Gigi and Mark. We discuss preferred shares funds and PFFA in particular, considerations about allocations in a TSP based on goals and current progress in your financial life, and them thar new-fangled return stacked funds. Links: PFFA Summary: PFFA – Virtus InfraCap US Preferred Stock ETF – ETF Stock Quote | Morningstar Return Stacked Funds Page: Home - Return Stacked® ETFs Amusing Unedited AI-Bot Summary: Welcome to the dive bar of personal finance and do-it-yourself investing, where Frank Vasquez serves up straight talk with a splash of humor. This episode tackles core investment principles that cut through the noise of complex financial products and contradictory advice. Frank begins by exploring preferred shares funds, specifically PFFA, explaining why its 20% leverage delivers higher returns but also brings greater volatility and a concerning 2%+ expense ratio. This leads into a deeper discussion about when specialized investment vehicles make sense for different investors and why tax implications matter when considering preferred shares positions. The heart of the episode focuses on a listener's TSP allocation question, which Frank uses to illustrate a fundamental investment truth: many investors start at the wrong end of the planning process. Rather than beginning with fund selection, Frank outlines the proper sequence: first determine your overall financial needs, then establish appropriate asset allocations, and only then select specific funds. He draws an important distinction between accumulation portfolios (where growth is paramount) and retirement portfolios (where volatility management becomes critical). Throughout the conversation, Frank emphasizes that diversification primarily reduces volatility rather than enhances returns. This insight proves particularly valuable when evaluating new investment products like return-stacked ETFs that combine traditional assets with alternatives like managed futures and merger arbitrage. While intriguing, Frank suggests most investors would benefit more from simpler approaches with established track records. Whether you're nearing retirement or still in accumulation mode, this episode delivers clear frameworks for making better investment decisions, reminding us that successful investing stems from understanding your unique financial situation rather than chasing complicated strategies. Want more straight talk on building effective portfolios? Subscribe, leave a review, or reach out to frank@riskparityradio.com with your questions. Support the show…

Risk Parity Radio

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Episode 408: Rebalancing Frequency, Share Lending, Style Boxes, Strips, And The Golden Ratio Portfolio 20:05

6 weeks ago20:05

20:05

In this episode we answer emails from Randy, Richard and Jamie. We discuss rebalancing frequency, share-lending at Fidelity, moves in Morningstar's style boxes and strips treasury funds vs. long term treasury bond funds. And we announce the new listing of the Golden Ratio portfolio at Portfolio Charts and thank Tyler and Van for that. Links: Father McKenna Center Donation Page: Donate - Father McKenna Center Golden Ratio Portfolio at Portfolio Charts: Golden Ratio Portfolio – Portfolio Charts Golden Ratio Portfolio Write-Up: Beautiful Constants and the Golden Ratio Portfolio – Portfolio Charts Kitces Article re Rebalancing: Optimal Rebalancing – Time Horizons Vs Tolerance Bands Discussion of Changes to Morningstar's Style Boxes: Morningstar redefines growth/value style box criteria - Bogleheads.org Risk Parity Radio All Episodes Feed Page: Risk Parity Radio RSS Feed Amusing Unedited AI-Bot Summary: Exciting news opens this episode as Frank announces the Golden Ratio Portfolio has been officially added to Portfolio Charts, complete with its own dedicated page and insightful write-up. This recognition represents a significant milestone for a portfolio strategy that has been a cornerstone topic throughout Risk Parity Radio's 400+ episodes. The heart of the episode focuses on answering thoughtful listener questions about portfolio management techniques. Randy inquires about rebalancing frequency and whether to participate in Fidelity's securities lending program for gold ETFs. Frank explains that while rebalancing more frequently than once a year generally doesn't improve performance, coordinating semi-annual rebalancing with tax planning can be advantageous. As for securities lending, Frank shares his personal experience that these programs work smoothly but typically generate minimal income—setting realistic expectations for listeners considering this option. A particularly detailed discussion explores the nuances between traditional long-term treasury funds and STRIPS funds (GOVZ, ZROZ, EDV). Frank clarifies that STRIPS-based ETFs typically move at approximately 1.5 times the rate of standard long-term treasury funds when interest rates change, effectively functioning as a form of leverage. This characteristic makes them valuable tools for tax-loss harvesting or creating more efficient allocations by achieving similar interest rate sensitivity with smaller position sizes. Rather than focusing on market timing for transitions between these instruments, Frank emphasizes coordinating such moves with broader tax management strategies—practical advice that demonstrates how risk parity investors can implement sophisticated portfolio techniques while maintaining tax efficiency. Want to connect with other Risk Parity Radio listeners? Frank announces a meetup at the Economy Conference at the Solari Hotel. Email frank@riskparityradio.com for details and to join the community of thoughtful DIY investors exploring alternatives to traditional asset allocation. Support the show…

Risk Parity Radio

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Episode 407: Multi-Asset Funds Like GDE, "Life Cycle" Econ-Models, Historical Interest Rate Musings And Portfolio Reviews As Of March 14, 2025 40:36

6 weeks ago40:36

40:36

In this episode we answer emails from Dustin, MyContactInfo, and Mark. We discuss the ETF GDE and combo return stacked funds generally, why you probably don't want to use economists' "life cycle model" for personal finance planning due to its unrealistic underlying assumptions, and whether we could use historical high interest rates to create market timing and allocation signals between stocks and bonds. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Article About BTGD: New ETF Offers Dual Exposure to Bitcoin, Gold | etf.com Optimized Portfolios Site: Optimized Portfolio - Investing and Personal Finance Rational Reminder Podcast Re Lifecycle Model: Ben Mathew: The Lifecycle Model vs. Safe Withdrawal Rates (SWR) | Rational Reminder 340 Debunking Economics: Debunking Economics - Revised and Expanded Edition: The Naked Emperor Dethroned?: Keen, Steve: 8601406370678: Amazon.com: Books Amusing Unedited AI-Bot Summary: When market turbulence strikes, diversification proves its worth. This week, as the S&P 500 tumbles nearly 4% year-to-date and the NASDAQ falls over 6%, gold emerges as the standout performer—surging past $3,000 an ounce with returns exceeding 13%. These dramatic market movements create a perfect real-world demonstration of why uncorrelated assets matter in portfolio construction. We dive deep into the limitations of economic models for personal financial planning, examining why the Life Cycle Model—while logically sound in theory—falls apart when confronted with life's inherent unpredictability. The assumption that we can accurately forecast our lifespans, relationships, and changing preferences decades in advance reveals a fundamental disconnect between theoretical economics and practical personal finance. A thought-provoking listener question explores whether allocation strategies should shift dramatically if interest rates ever reach levels where risk-free returns match or exceed historical stock returns. Drawing on lessons from the early 1980s when Treasury yields exceeded 15%, we consider why developing investment rules based on rare historical anomalies rarely serves investors well. The weekly portfolio review shows mixed performance across our eight sample portfolios, with those holding significant gold allocations weathering the current volatility far better than stock-heavy alternatives. We also examine rebalancing decisions for the Levered Golden Ratio portfolio, making thoughtful adjustments to improve its value tilt and diversification characteristics. Whether you're curious about combining assets in hybrid funds, wondering how managed futures perform during market corrections, or simply wanting to see how different portfolio strategies are navigating current conditions, this episode delivers practical insights for the thoughtful, independent investor. Join us for this exploration of asset allocation in uncertain times. Support the show…

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Episode 406: REITs, Vacant Land, Bitcoin Today And Eh, Steve! 28:14

7 weeks ago28:14

28:14

In this episode, we answer emails from Spencer, Ko and Steve. We discuss REITs as a portfolio allocation, why vacant land is probably not a good investment for most people, "talking your book" with bitcoin for fun and profit and how it looks today in a portfolio, law school education and that infamous Cederburg paper (again but only briefly). Links: Father McKenna Center Donation Page: Donate - Father McKenna Center NAREIT -- Types of REITs: Learn about Investing and Market REIT Sectors Today Weird Portfolio: Weird Portfolio – Portfolio Charts Ko's Michael Saylor Video: Michael Saylor’s Big Bitcoin Prediction | Relai Bitcoin Podcast #90 Amusing Unedited AI-Bot Summary: Ever caught yourself obsessing over a particular asset class? In this engaging episode of Risk Parity Radio, Frank Vasquez tackles three fascinating investment topics that challenge conventional wisdom while providing practical guidance for DIY investors. We begin with an exploration of REIT allocations beyond the standard 10% recommendation. Frank breaks down why correlation with broader markets matters more than yield history, why individual REITs often outperform REIT index funds for diversification purposes, and why these investments belong in retirement accounts rather than taxable brokerage accounts. A listener's cautionary tale about vacant land investing serves as a powerful reminder that illiquid, non-income-producing assets can become financial quicksand rather than solid foundations for retirement. The conversation shifts to Bitcoin's evolving role in investment portfolios. Frank cuts through the promotional noise from crypto evangelists, explaining how Bitcoin's behavior has transformed from a true diversifier to essentially "a three times leveraged QQQ fund" highly correlated with tech stocks. This critical insight helps investors properly categorize crypto within their asset allocation rather than viewing it as a separate diversifying asset class. Finally, we examine the controversial academic paper promoting 100% equity portfolios for retirees. Frank exposes the significant limitations of this research, demonstrating why seemingly groundbreaking financial theories often collapse under real-world scrutiny. Throughout the episode, Frank's pragmatic approach reminds us that successful investing requires looking beyond popular headlines and understanding the fundamental characteristics of what we own. Whether you're rethinking your REIT strategy, curious about crypto's place in your portfolio, or questioning conventional retirement wisdom, this episode offers clarity amidst the noise of financial media. Share your own investment questions at frank@riskparityradio.com and join our growing community of thoughtful DIY investors. Support the show…

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Episode 405: Treasury Strips Funds As A Form Of Leverage, A Return Stacked Portfolio, The Golden Ratio And Portfolio Reviews As Of March 7, 2025 30:24

7 weeks ago30:24

30:24

In this episode we answer emails from Eli, Garrison and Van. We discuss usig treasury strips ETFs like GOVZ and ZROZ and how they relate to long-term treasury bond funds like TLT and VGLT, a "returned-stacked" portfolio similar to O.P.T.R.A. for accumulation and early retirement and why the Golden Ratio portfolio performs very well on many metrics. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Father McKenna Center Donation Page: Donate - Father McKenna Center Portfolio Charts Portfolio Matrix Tool: Portfolio Matrix – Portfolio Charts (Note to compare the discussed Golden Ratio portfolio to other portfolios, input 21% LCG, 21% SCV, 26% LT bonds, 16% gold, 10% REITs and 6% t-bills as "My Portfolio") Amusing Unedited AI-Bot Summary: Dive into the nuanced world of portfolio construction with insights that challenge conventional wisdom about retirement planning and asset allocation. We kick off with an exploration of treasury bond strategies, examining whether STRIPS funds like ZROZ or GOVZ offer "free" 1.5x leverage compared to standard long-term treasury funds. This seemingly technical distinction opens fascinating possibilities for freeing up portfolio space while maintaining effective recession hedging. The heart of the episode tackles a young investor's audacious plan for early retirement using a leveraged portfolio containing 11% UPRO (3x leveraged S&P 500) alongside small-cap value, treasuries, gold, and managed futures. We dissect the Monte Carlo simulations suggesting sustainable withdrawal rates above 6% and consider whether such "return stacked" portfolios represent the future for younger investors seeking growth with manageable volatility. Most surprising is our deep dive into the Golden Ratio portfolio, which a listener discovered ranks #1 overall on Portfolio Charts despite containing just 42% stocks. We unpack the five fundamental rules that drive this portfolio's exceptional performance: strategic stock allocation between 40-70%, balanced growth and value exposure, precise treasury bond positioning, thoughtful alternative asset integration, and minimal cash holdings. The revelation that this construction is essentially an expanded 60/40 portfolio demonstrates how traditional wisdom can be enhanced rather than abandoned. Our weekly portfolio review reveals gold's dominant performance in 2023 (up 10.89%) while small-cap value struggles (down 6.47%), reinforcing the value of thoughtful diversification in navigating today's market landscape. Whether you're planning for early retirement, optimizing your current portfolio, or simply seeking investment wisdom beyond mainstream advice, this episode delivers practical insights for the serious do-it-yourself investor. Support the show…

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Episode 404: Tax Location Considerations, Old Gold Book, Scottish ETFs, And Diversification Musings On International vs. US 35:25

8 weeks ago35:25

35:25

In this episode we answer emails from Caleb, Visitor #4565, Paul, Michael (from Scotland) and Jamie. We discuss tax location (or asset location for tax purposes), the zeitgeist of this podcast, an old book by Don Coxe about gold and other things, a good website for finding ETFs in the UK and otherwise outside the US, and how to best incorporate and prioritize (not) international vs. US funds. Links: Asset Swaps Video: How to Do an Asset Swap Sean Mullaney On 72(t): 475 | How to Access Your Retirement Accounts Before 59.5 | Sean Mullaney Mad Fientist on Accessing Retirement Funds Early: How to Access Retirement Funds Early Merriman ETF Recommendations: Best-in-Class ETF Recommendations | Merriman Financial Education Foundation JustETF website and Sample Small Cap Value Fund: SPDR MSCI USA Small Cap Value Weighted UCITS ETF | A12HU5 | IE00BSPLC413 Amusing Unedited AI-Bot Summary: Get ready for an enlightening episode of Risk Parity Radio, where we unravel complex investing strategies designed for the do-it-yourself investor! In this episode, we dive deep into key topics like the critical distinction between asset allocation and tax location, helping you understand how to manage your investments more efficiently. With listener emails sparking insightful discussions, we shed light on the often-misunderstood role of gold in your portfolio and why it might be a savvy addition during economic uncertainties. We explore how misconceptions in diversification can derail potential growth and offer tactical advice on choosing between growth and value investments. Listeners will gain a holistic view of their assets, empowering them to make informed decisions that align with their long-term financial goals. Whether you’re a seasoned investor looking to refine your strategies or a beginner eager to learn, this episode provides valuable insights to enhance your portfolio's performance. Join us for an engaging conversation that invites you to reflect on your approach to investing. Don't miss your chance to redefine your financial strategy today! Subscribe, share, and review—we’d love your thoughts! Support the show…

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Episode 403: Navigating The New Regime, What Does A Weak Dollar Mean, Inflation In Withdrawals And Portfolio Reviews As Of February 28, 2025 36:06

8 weeks ago36:06

36:06

In this episode we answer emails from Andy, Mark and Graham. We discuss what may do well under the current US administration and related concerns, what a weak dollar means for risk assets and allocating to volatility, and how inflation should realistically be accounted for in withdrawals. And THEN we our go through our weekly and monthly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Father McKenna Center Donation Page: Donate - Father McKenna Center New Catching Up to FI Podcast with Yours Truly: “The Risk Parity Paradox” an Exercise in Simple Complexity? | Frank Vasquez | 124 US vs International Stocks In Strong And Weak Dollar Markets (link from Episode 393: us-dollar-strength-has-correlated-with-performance-03312023.pdf Spending Trajectories After Age 65 Research Paper and Summary (link from Episode 336): Spending Trajectories After Age 65: Variation by Initial Wealth | RAND Amusing Unedited AI Bot Summary: Unlock the secrets of resilient investing with our latest episode of Risk Parity Radio! Join us as we explore the dynamic relationship between risk and reward in today's unpredictable market landscape. With insights from Frank Vasquez, we discuss how various asset classes, including gold and bonds, are performing amid rising economic uncertainty. We feature an in-depth analysis of eight sample portfolios, shedding light on their performances and the lessons they offer for individual investors. Our host encourages listeners to reflect on their investment strategies and promotes the importance of diversification as a safeguard against market fluctuations. Listeners are invited to engage with us through insightful emails, tackling current economic concerns such as inflation and its implications for retirees. Wrap up the episode with practical advice, encouraging self-education and proactive engagement in personal financial management. Don’t miss this opportunity to refine your financial strategies! Subscribe, share your thoughts, or leave a review to join our growing community of informed investors. Support the show…

Risk Parity Radio

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Episode 402: Getting A Little More Aggressive, A QREARX Redux, And What Does "Value" Mean Anyway 24:49

11 weeks ago24:49

24:49

In this episode we answer emails from Philip, David and Keith. We discuss an aggressive risk-parity style portfolio (without leverage), review QREARX, which we analyzed in Episode 81, and how the value factor is determined by various funds and indexes. Links: Father McKenna Center Donation Page: Donate - Father McKenna Center Portfolio Matrix Tool at Portfolio Charts: Portfolio Matrix – Portfolio Charts The Weird Portfolio: Weird Portfolio – Portfolio Charts Morningstar Page for QREARX: QREARX – TIAA Real Estate Account Fund Stock Price | Morningstar Amusing Unedited AI-Bot Summary: Ready to rethink your investment strategies? Discover how pushing the boundaries with aggressive risk parity portfolios can transform your financial growth. Inspired by listener Philip's question, we unravel the potential of a 70% equity allocation, showing you why it might be your ticket to a prosperous retirement with a longer horizon or increased growth needs. Learn how to artfully allocate the remaining 30% across assets like large-cap growth, small-cap value, long-term treasuries, gold, and managed futures for optimal diversification. Plus, get the scoop on our informal meetup at the Economy Conference—it's where finance meets fun. In this episode, we're not just about strategies but interactions. As we sift through listener emails, we spotlight financial strategies and fund analysis, tackling topics from the intriguing weird portfolio to critiques of funds like QREARX. Unearth the complexities of value stock categorization and challenge the purported benefits of illiquidity premiums in outdated financial structures. As travel plans call for a brief hiatus, we invite you to keep the conversation alive through emails and our website. Tune in for insights, engagement, and a touch of humor designed to entertain and inform our valued listeners. Support the show…

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Episode 401: Generous Times, More Cowbell, Choosing Appropriate Retirement Role Models, Short Term Bonds, And Portfolio Reviews As Of February 7, 2025 1:02:52

11 weeks ago1:02:52

1:02:52

In this episode we answer emails from Richard, Robert and Jacob. We discuss Richard's generosity and excellent example as a role model, an ill-conceived and biased critique of small cap value allocations, why you probably should not use popular personal finance gurus as retirement role models due to their workaholism and hoarding behaviors, and why having too much cash or very short term bonds in a portfolio is not a good idea. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Father McKenna Center Donation Page: Donate - Father McKenna Center ERN Small Cap Value Article of 2 December 2024: Small-Cap Value Stocks: Diversification or Di-WORSE-fication? - Early Retirement Now First Merriman Response to SCV Article: The True Story About Small Cap Value Supplemental Merriman Responses To SCV Article: Why should small cap value make higher returns? Testfolio Comparison Of IWN vs. IJS vs. VISVX vs. DFSVX vs VFINX Since July 2000: https://testfol.io/analysis?s=gkqbgk7mzka Shannon's Demon Article Re Math Of Diversification: Unexpected Returns: Shannon's Demon & the Rebalancing Bonus – Portfolio Charts ERN Safe Withdrawal Rate Post of 15 April 2016: Pros and cons of different withdrawal rate rules - Early Retirement Now Michael Batnick Article re Shifting In CAPE Ratio: Stocks Are More Expensive Than They Used to Be Rick Ferri Interview: Show Us Your Portfolio: Rick Ferri | Why a Simple Approach Beats 90% of the Pros Core 4 Portfolios: Process – Core-4 Rob Berger Interview (with transcript): Bogleheads on Investing with Rob Berger – Episode 48 - The John C. Bogle Center for Financial Literacy Interview of Michael Kitces Re Problems With TIPS Ladders: Michael Kitces: How Higher Yields Affect Asset Allocation and Retirement Planning | Morningstar Support the show…

Risk Parity Radio

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Episode 400: An AI Thingamabob Takes Over To Review And Reconstruct Our First Five Foundational Episodes 1:48:23

12 weeks ago1:48:23

1:48:23

In this frolic and detour from our regularly scheduled programming, we create a "Reference Episode" by employing two AI podcasters to summarize the information contained in Episodes 1, 3, 5, 7 and 9, which are some of the foundational episodes for this podcast. BTW, choose PFFV instead of PFF if you are interested in that. But the point was to teach you how to analyze investments. Here are (most of) the original links and notes from those episodes. Episode 1: In this episode we answer five basic questions: 1. What is Risk Parity Radio? 2. Who is this podcast for? 3. Gee willikers, what does "Risk Parity" mean anyway, Uncle Frank? 4. How will will make this real and actionable for you? 5. How can you get involved? Episode 3: In this episode we explore the ancient origins of asset allocation and diversification. Bava Metzia 42a: https://steinsaltz.org/daf/bavametzia42/ 70-year History of Investment Consulting: https://seekingalpha.com/article/4357226-70-year-history-of-investment-consulting-1950minus-2020 Episode 5: In this follow-up to Episode 3, we explore the development of risk-parity style investing from the 1980s to the present day. The All Weather Strategy Paper: Bridgewater Paper 2009.12 AW Info Pack.doc (granicus.com) Risk Parity Portfolios: Efficient Portfolios Through True Diversification: https://www.panagora.com/assets/PanAgora-Risk-Parity-Portfolios-Efficient-Portfolios-Through-True-Diversification.pdf Risk Parity: Silver Bullet Or A Bridge Too Far: chapter-4-from-managing-multiasset-strategies-2018.pdf (callan.com) Episode 7: In this episode we discuss the three basic principles are (1) the Holy Grail Principle; (2) the Macro-Allocation Principle; and (3) the Simplicity Principle. March draw-downs for professional risk-parity style portfolios: https://www.markovprocesses.com/blog/risk-parity-funds-in-the-coronavirus-market-rout/ Ray Dalio explains the Holy Grail principle of risk-parity style investing: https://www.youtube.com/watch?v=Nu4lHaSh7D4 Episode 9: In this episode we discuss how NOT to choose investments and how to employ a good process to analyze an investment. We adopt the process of David Stein's 10 Questions and apply it to an exchange-traded fund of preferred stocks. Ishares description of PFF: https://www.ishares.com/us/products/239826/ishares-us-preferred-stock-etf The 10 Questions To Ask When Considering An Investment: 1. What is it? 2. Is it an investment, a speculation, or a gamble? 3. What is the upside? 4. What is the downside? 5. Who is on the other side of the trade? 6. What is the investment vehicle? 7. What does it take to be successful? 8. Who is getting a cut? 9. How does it impact your portfolio? 10. Should you invest? Support the show…

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Episode 399: A Good Deed Shining In A Weary World, Thoughts On Hoarding, Preferred Shares, Gold And Portfolio Reviews As Of January 31, 2025 43:29

12 weeks ago43:29

43:29

In this episode, we celebrate Ground Hog Day and answer emails from Ron, Jay and Pete. We discuss the value of giving and the new McKenna Man portfolio that Ron is constructing, preferred shares vs. REITs, holding gold, what financial advisors really think about their hoarding clients but can't say in front of them but I will, and Pete's risk parity style portfolio and his 6-year old's potato chip gambling problem. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional Links: Father McKenna Center Donation Page: Donate - Father McKenna Center Dennis And The McKenna Center Team: Our Team - Father McKenna Center Andy Panko Interview of Eric Niergarth: Retirement planner chat, with Eric Niergarth from Retirement Roadmap Financial Planning Pete's Fund and Correlation Analysis: https://testfol.io/analysis?s=4Qh1xI3JKMl Amusing Unedited AI-Bot Summary: Unlock the secrets of alternative investments and discover a fresh perspective on asset allocation with Risk Parity Radio. Ever wondered how creative financial strategies can transform charitable giving? Listen in as we highlight Ron, a dedicated listener, who proposes an innovative approach to support the Father McKenna Center in Washington, D.C. We'll dissect his all-equity portfolio idea, and explore an alternative inspired by the Rick Ferri Core 4 portfolio, tailored for an 8% withdrawal rate. This episode promises to inspire with its blend of community-focused financial creativity and solid investment insights. Curiosity piqued? Learn why PFFV trumps PFF in cost-effectiveness and tax benefits, especially for those in higher tax brackets. The episode tackles listener questions head-on, like the VNQ versus PFF debate, and shines a light on the essential role of gold in diversification. A personal tale unfolds as I recount my unexpected removal from Andy Pankow's Facebook group, sparking a discussion on the dynamics of online financial communities. This engaging narrative provides a nuanced view of maintaining a steady allocation amidst the ebb and flow of digital interactions. Explore the lighter side of finance as we analyze the performance of various portfolios in a quirky review of January's market highlights. With imaginative requests, like a breakfast order for the "bacon man," and the intriguing concept of combining Bitcoin and gold in an ETF, this episode offers both entertainment and education. From the conservative All Seasons to the experimental Golden Ratio, each portfolio reveals unique allocations and outcomes. Join us on this enlightening journey through investment strategies, and uncover the unexpected joys of charitable giving through creative financial planning. Support the show…

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Episode 398: Tax Location Decisions, Dealing With Limited Fund Choices And Brokerage Requirements 18:28

13 weeks ago18:28

18:28

In this episode we answer emails from George, Kyle and Andy. We discuss whether to prioritize DBMF or VGLT (for tax location purposes) in a traditional retirement account, weighing limited choices for small cap funds in a 457, Vanguard's new short-term bond funds and dealing with brokerages' cya requirements for investing in particular funds. Links: Father McKenna Center Donation Page: Donate - Father McKenna Center Vanguard Fund Announcement: Vanguard Expands Fixed Income Lineup with New Actively Managed Bond ETF | Vanguard Amusing Unedited AI-Bot Summary: Unlock the secrets to optimizing your investment portfolio and navigate the complex world of power dynamics in our latest podcast episode. Have you ever wondered whether choosing a higher dividend yield or balancing fund fees could impact your financial future? Join us as we guide George through the decision-making process between VGLT and DBMF, ultimately landing on DBMF for its tax-efficient benefits. Meanwhile, Kyle finds himself at a crossroads between a high-fee small-cap value fund and a more budget-friendly Vanguard option. Our advice? Balance is key to managing costs and maintaining a diverse portfolio. And don’t miss our take on Vanguard's new actively managed short-term bond fund—could it be the missing piece in your investment strategy? Transitioning from the tangible to the philosophical, we embark on a thought-provoking exploration of submission and power through our metaphorical dialogue with "the daughters." Here, we challenge the conventional wisdom of power structures and the humility required to navigate them. Using vivid metaphors and evocative imagery, we invite listeners to question their own roles within these paradigms and consider how such dynamics manifest in financial and legal realms. This episode promises a blend of practical investment insights with deeper musings on the human condition, leaving you with plenty to ponder as we draw parallels between finance and life’s broader themes. Support the show…

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Episode 397: Small Cap Value Funds, How To Recognize Bad Books, CAOS And Weekly Portfolio Reviews As Of January 24, 2025 29:46

13 weeks ago29:46

29:46

In this episode we answer emails from Bones, Paul and Justin. We discuss small cap value funds and their underlying indexes, an odd book from an unreliable source and an alternative ETF called CAOS. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional Links: Bankruptcy Case Involving David R. Webb: In re Verus Investment Management, LLC, 344 B.R. 536 | Casetext Search + Citator CAOS Main Page: CAOS ETF - Alpha Architect ETFs CAOS Fact Sheet: Factsheet_CAOS.pdf Amusing Unedited AI-Bot Summary: What if your investments could outpace market trends with a simple shift in strategy? On Risk Parity Radio, we promise to unravel the complexities of asset allocation, specifically tailored for the DIY investor. We kick off with a deep dive into the world of small-cap value funds, dissecting the evolution of Vanguard’s funds alongside iShares' stalwart, IJS. The competition heats up with new entrants like Avantis and Dimensional, particularly the rising star AVUV. With insights from Paul Merriman's research, we explore why diversifying into small-cap value can be a game-changer for your portfolio, no matter which fund you choose. Ever wondered if an investment product could thrive in both stable and volatile markets? Enter Wes Gray’s Alpha Architect product, Chaos, which challenges traditional investing with tools like protective puts and box spreads. We bring you a thorough examination of this intriguing product and a candid discussion about its potential and risks. Our analysis extends to sample portfolios, showcasing the power of diversification with assets ranging from the S&P 500 to commodities. We wrap up by contrasting popular portfolios like the All Seasons and Golden Butterfly with the experimental Accelerated Permanent Portfolio, making sure you are equipped with cutting-edge strategies to optimize your investments. Support the show…

Risk Parity Radio

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Episode 396: We're Talkin' Futures, Backtesting Considerations, And That Big Mo (Again) 23:07

14 weeks ago23:07

23:07

In this episode we answer emails from Lucas, Martijn, and Alexi (a/k/a "the Dude"). We discuss futures contracts and the efforts required to use them, being careful about backtests and interpreting them, and more musings on Big Mo momentum. Links: Father McKenna Center Donation Page: Donate - Father McKenna Center Martijn's Link: testfol.io/?s=aoTgPMqhGQA Portfolio Matrix (Start Date Sensitivity): Portfolio Matrix – Portfolio Charts The Dude's First Link: Asset Correlations The Dude's Second Link: testfol.io/?s=aKrdp1uCnEu The Dude's Third Link: testfol.io/?s=kUK5djVum0A Amusing Unedited AI-Bot Summary: Unlock the secrets of futures trading and leveraged ETFs as we tackle complex investment strategies, inspired by a thought-provoking listener email from Lucas. Discover how you can master the intricacies of futures contracts, from rolling them over to navigating market conditions like backwardation and contango, without getting overwhelmed. Learn why leveraged ETFs were created to simplify leverage acquisition, and get insider recommendations on the best platforms to embark on futures trading. Martain, another keen listener, challenges us with a debate on straightforward 1.5 times equities strategy versus modern portfolio theory, leading to a rich discussion on investment approaches. Venture further into the world of leveraged risk parity portfolios and how hedge funds are using them to optimize risk-reward profiles during the accumulation phase. Comparing these advanced strategies to more straightforward leveraged S&P portfolios, we emphasize the essential role of historical data in shaping robust investment decisions. Be wary of the allure of short-term gains as we dissect the role of momentum funds in risk parity portfolios and the significance of diversification in securing stable outcomes. Through listener insights and expert analysis, this episode is a treasure trove for anyone seeking to broaden their understanding of strategic investing. Support the show…

Risk Parity Radio

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Episode 395: Canadian Dilemmas, Total Market vs. Large Cap Growth, Gambling Problems And Portfolio Reviews As Of January 17, 2025 35:17

14 weeks ago35:17

35:17

In this episode we answer emails from Paul (from Canada), Gary, Ben and Alexi (a/k/a "the Dude"). We discuss finding funds for Canadians, podcast outlet alternatives, the similarities between S&P 500, total market and large cap growth funds and how they can perform the same role in a diversified portfolio, and a gnarly Alpha Exchange podcast about leveraged funds (which the Dude and I both misidentified as "Alpha Architect".) And the Creedence vs. Tina Turner versions of "Proud Mary." And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional Links: Portfolio Charts Golden Butterfly page: Golden Butterfly Portfolio – Portfolio Charts Asset Correlations (VTI and VOO and large cap growth): https://testfol.io/analysis?s=63nAL9efMMg Golden Butterfly With Total Market vs. Large Cap Growth: https://testfol.io/?s=h0ZxYu0txcP Alpha Exchange Podcast on Leveraged Funds: Michael Green, CFA, Portfolio Manager, Chief Strategist, Simplify Asset Management | Alpha Exchange Amusing Undedited AI-Bot Summary: Unlock the secrets of successful portfolio diversification on this episode of Risk Parity Radio. Whether you're navigating the Canadian stock market maze or strategizing with U.S. index funds, our conversation will equip you with the tools to conquer currency conversion challenges and leverage international market access through platforms like Interactive Brokers. We share strategies to optimize your asset mix by combining large cap growth with small cap value funds for a truly diversified and resilient portfolio. Ever wondered how to differentiate between total market funds and large cap growth funds? Our discussion sheds light on their high correlation and recent performance trends, urging investors to focus on macro allocation principles and informed bond choices rather than getting lost in the minutiae of fund selection. Discover how pairing assets with varying volatilities and correlations can lead to a more robust investment strategy that withstands market turbulence. Dive into the world of leveraged ETFs and learn about the risks lurking behind these financial instruments. We dissect insights from the Alpha Exchange podcast, stressing the importance of liquidity in minimizing systemic risk. As we share our weekly portfolio reviews, you’ll gain valuable insights into market performance and the art of strategic rebalancing. From conservative to dynamic portfolios, we offer a comprehensive look at maintaining diverse asset allocations to optimize growth and stability. Reach out with your questions and explore our website for more resources on mastering the investment landscape. Support the show…

Risk Parity Radio

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Episode 394: More Fun With Large Cap Growth Funds And Some Salient Portfolio Comparisons 37:18

15 weeks ago37:18

37:18

In this episode we party with some of the regulars and answer emails from Pete, Tracey, Ralph and Alexi (a/k/a the "Dude"). We discuss domestic and international large cap growth funds, why we prefer portfolios that due comparatively better when using long series data analyses and not their associations with particular guru people, how the Golden Ratio portfolio relates to the 60/40 portfolio, whether you'll see me on Bluesky or most other social media ("no"), and the Dude's continued gambling problems with his Sixty Sixty Portfolio. Links: Father McKenna Center Donation Page: Donate - Father McKenna Center Pete's Correlation Analysis Link: Asset Correlations IDMO Fund: IDMO – Invesco S&P International Dev Momt ETF – ETF Stock Quote | Morningstar International Large Cap Growth Fund Comparison: testfol.io/analysis?s=4PEQ1YvTbAM Portfolio Matrix Comparison Tool: Portfolio Matrix – Portfolio Charts The Dude's Sixty-Sixty Portfolio And Comparisons: testfol.io/?s=1bInsY2fEmI Amusing Unedited AI-Bot Summary: Can you really diversify your portfolio internationally without getting tangled in global market correlations and geopolitical webs? On this episode of Risk Parity Radio, we promise to unravel the mysteries of international large-cap growth ETFs and share insights on navigating beyond U.S. equities with flair. Listener Pete joins us from an airport terminal, seeking our expertise on innovative sectors like tech and semiconductors. We dissect options such as IMTM and EMQQ, weighing their benefits and risks, particularly in the context of Chinese equities. We keep things lively with a light-hearted approach to managing personal finance, reminding you that while investing is serious, there's always room for a bit of humor and creativity. Switching gears, we ditch traditional portfolio strategies and explore modern frameworks for reducing retirement drawdowns. By harnessing tools like Portfolio Charts, we dive into strategies like the Golden Ratio and Golden Butterfly, comparing them to the old-school 60-40 portfolios. Our aim is to empower you to base decisions on data, not outdated norms. We also discuss the role of growth ETFs in deaccumulation, and venture into the world of innovative portfolios like the 60-60 model, while examining the influence of social media on investing. Throughout, we champion independent thinking and celebrate the vibrant contributions of our engaged community. Support the show…

Risk Parity Radio

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Episode 393: International Questions From The Europeanish, A Pesky 401a And Portfolio Reviews As Of January 10, 2025 34:04

15 weeks ago34:04

34:04

In this episode we answer questions from Anonymous European, Paul, and Ralph. We discuss US vs. Euro treasury bonds, international large cap growth, the overarching currency effect that determines the relative performance between US and international stocks, small cap value for UK investors and what to do with a small 401a with limited investment choices while nearing retirement. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional Links: Many Happy Returns Podcast with Tyler: Building a Bulletproof Retirement Portfolio, with Tyler from Portfolio Charts Global Withdrawal Rates Article: Global Withdrawal Rates – Portfolio Charts DILRX International Large Cap Growth Fund: DILRX – DFA International Large Cap Growth Fund Stock Price | Morningstar US vs International Stocks In Strong And Weak Dollar Markets: us-dollar-strength-has-correlated-with-performance-03312023.pdf ZPRX European Small Cap Value Fund: ZPRX : SPDR® MSCI Europe Small Cap Value Weighted UCITS ETF Amusing Unedited AI-Bot Summary: Could US Treasury bonds be the ultimate recession insurance for European investors? We kick off this episode with a provocative question that challenges conventional thinking in the bond market. Joined by Tyler from Portfolio Charts, we dissect the strategic positioning of US Treasury bonds versus European options like the Amundi Euro Government Bond Fund. Discover why many international investors gravitate toward US bonds during economic downturns and learn the crucial role of asset correlations in achieving the optimal portfolio diversification. Shifting gears, we tackle a common misconception about large-cap investments: does a company's headquarters dictate its investment potential? In a world where global operations blur geographic lines, we question the necessity of strictly international large-cap growth funds. Dive into the fascinating impact of currency fluctuations on stock performance and explore how these shifts often drive diversification, rather than the mere presence of international stocks. Our insights aim to empower you in crafting a more globally balanced portfolio. As retirement looms for those in their late 50s, the decision between sticking with a 401A or transitioning to an IRA becomes paramount. For someone with multiple pensions covering living expenses, we weigh the merits of various investment strategies. While VINIX may offer benefits within a 401A, the broader options available through an IRA, including ETFs, might better suit your growth and stability needs. For those craving simplicity without sacrificing balance, the Vanguard Wellington Fund emerges as a compelling choice. Tune in for a comprehensive guide to aligning your retirement portfolio with your long-term goals. Support the show…

Risk Parity Radio

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Episode 392: Small Cap Value Indexes, Managed Futures Butterly, And A Mini-Rant On Bucketeering 32:54

16 weeks ago32:54

32:54

In this episode we answer emails from Kyle, Steve and James. We discuss the three most common small cap value indexes -- S&P 600, CRSP and Russell, modifications to the Golden Butterfly portfolio using managed futures, and the fantasies and follies of portfolio Bucketeering. Links: Father McKenna Center Donation Page: Donate - Father McKenna Center Steve's Modified Golden Butterfly: testfol.io/?s=hJZl3QbaXsj Merriman's Best In Class ETFs: Best-in-Class ETF Recommendations | Merriman Financial Education Foundation Kitces Article About Bucket Strategies: Managing Sequence Risk: Bucket Strategies Vs Total Return Amusing Unedited AI-Bot Summary: Can equal-weighted ETFs outperform their cap-weighted counterparts? Find out as we break down their impact on factor representation within diversified portfolios, focusing on strategies like the Golden Butterfly. Join me, Frank Vasquez, in our latest episode as I discuss listener questions and share insights on choosing between Invesco's RSP and traditional options like SPY or VOO. I'll also revisit my preference for the small-cap value ETF VIOV over VBR, emphasizing the advantages of the S&P 600 index's unique profitability filter. This episode is packed with knowledge to help you refine your portfolio allocation strategies, with a special focus on the role of managed futures and their influence on compound annual growth rates and drawdowns. Shatter the myth of bucket strategies as we confront their limitations in mitigating sequence of returns risk. Drawing on Bill Bengen's studies, I argue that excessive cash allocations hinder performance more than they help. We explore the psychological allure of bucket strategies and suggest that true financial security lies in prudent spending rather than complex asset arrangements. Tune in as we offer a fresh perspective on managing your financial future, challenging conventional wisdom and emphasizing smarter, evidence-based approaches to portfolio management. Whether you're a seasoned investor or just starting, this episode promises valuable insights and a chance to rethink traditional investment strategies. Support the show…

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Episode 391: Musings About Base Rates, Crystal Balls, Dice And Santa, And Annual Portfolio Reviews For 2024 46:49

16 weeks ago46:49

46:49

In this episode we conduct our annual reviews of the Eight Sample Portfolios you can find at Portfolios | Risk Parity Radio and compare them with some commercial preparations. In addition we discuss the year of 2024 in general, the performance of various asset classes, the follies of using the year as a crystal ball to predict the future, and the more effective use of base rates for that purpose. And the missing Santa Claus. Links: Portfolio Charts Annual Returns Calculator: Annual Returns – Portfolio Charts Testfolio Backtesting and Analysis Site: testfol.io Amusing Unedited AI-Bot Summary: Uncover the secrets to constructing a resilient investment portfolio while sidestepping the pitfalls of misguided financial predictions. Join me, Frank Vasquez, as I humorously dissect the world of economic forecasts and their accuracy, or lack thereof. Through a historical lens, we’ll examine past events like the 1970s inflation scare and the 1990s dot-com bubble, revealing the wisdom in relying on historical base rates for more stable predictions. This episode promises to arm you with critical insights from Morgan Housel and transform your understanding of market trends, using relatable analogies like dice rolls to make the probabilities clear and engaging. Engage with a treasure trove of data as we review eight sample portfolios, shedding light on the roller-coaster performances of various assets over the past year. From the triumphs of large-cap growth stocks and gold to the contrasting fates of different sectors, discover the vital role of diversification. With a focus on both domestic and international opportunities, I outline the highs and lows, such as the standout performance of the MAG-7 and the challenges faced by REITs, while emphasizing the benefits of a diversified portfolio. Finally, I unravel the performance of diverse investment strategies, including risk parity models and experimental leveraged portfolios. Unpack the complexities of asset allocations and the unique challenges posed by leverage, with insights into the successes and lessons learned. To wrap it up, I weave in a playful narrative about a year without Santa Claus, illustrating the importance of cautious investing amidst unexpected events. This episode blends finance, storytelling, and critical insights into an entertaining and informative package that promises to captivate both seasoned investors and newcomers alike. Support the show…

Risk Parity Radio

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Episode 390: Single Fund Portfolio Follies, Variable Withdrawal Strategies, Basic Portfolio Considerations, And Portfolio Reviews As Of December 27, 2024 50:50

17 weeks ago50:50

50:50

In this episode we answer emails from Kyle, Adam, and Steve. We discuss equal weight vs. cap weighted funds and the fallacy that one fund stock portfolios are optimal, a variable withdrawal strategy plan, and what kinds of portfolios work best for which types of people and purposes. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional Links: Father McKenna Donation Page: Donate - Father McKenna Center Shannon's Demon Article: Unexpected Returns: Shannon's Demon & the Rebalancing Bonus – Portfolio Charts Portfolio Charts Retirement Spending Calculator: Retirement Spending – Portfolio Charts 2024 Morningstar Report Analyzing Variable Withdrawal Strategies: State_of_Retirement_Income_2024.pdf Swedroe Factor Investing Book: Book Review: Your Complete Guide to Factor-Based Investing | CFA Institute Enterprising Investor Merriman Best In Class ETFs: Best-in-Class ETF Recommendations | Merriman Financial Education Foundation Amusing Unedited AI-Bot Summary: Step into the world of Risk Parity Radio, where we unravel the mysteries of asset allocations and personal finance. Ever wonder how equal weight differs from cap-weighted index ETFs? We promise to guide you through this intriguing comparison, emphasizing the importance of utilizing multiple funds for a comprehensive market strategy. Together with my co-host Mary, we explore how concepts like Modern Portfolio Theory and Shannon's Demon can elevate your portfolio's performance beyond a single-fund approach. And, in a nod to community spirit, we encourage our listeners to support the Father McKenna Center, weaving philanthropy into our financial discourse. This episode goes beyond the basics, challenging the notion that one-size-fits-all in the world of investing. We dissect the benefits of combining growth and value funds, and highlight the risk management advantages of cap-weighted ETFs. Our heartfelt retirement segment touches on a listener's email about crafting a sustainable portfolio through variable withdrawal strategies. We navigate the nuances of personal inflation adjustments, equipping you with the tools to fortify your financial future. Join us as we counter cognitive biases and fine-tune strategies to align investments with economic realities, ensuring that your financial journey is as robust as it is rewarding. Support the show…

Risk Parity Radio

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Episode 389: A Mini-Case Study About Entering Retirement, QSPNX, The Foibles Of Market Timing Bonds And Portfolio Reviews As Of December 20, 2024 52:57

18 weeks ago52:57

52:57

In this episode we answer emails from John, Jane and Christoph. We discuss financial and non-financial considerations when transitioning to retirement, the alternative investment strategy fund QSPNX, and revisit why you should not try to time bond investments anymore than you should try to time the stock market. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional Links: Choose FI Episode 508 With Yours Truly: 508 | 5% SWR, Revealed Preferences, and the 3 Stories | Frank Vasquez QSPNX Fund Summary: AQRFunds - AQR Style Premia Alternative Fund QSPNX Main Page: AQR Style Premia Alternative Fund - QSPNX Amusing Unedited AI-Bot Summary: What if your retirement could be as thrilling as a holiday adventure? Tune into our pre-Christmas special on Risk Parity Radio, where we unravel the secrets to crafting a financially stable and fulfilling retirement. Join us as we dissect eight unique sample portfolios, responding to John’s burning questions about transitioning to a risk parity approach. We celebrate John’s upcoming retirement by sharing actionable insights from personal experiences, setting the stage for a journey filled with financial clarity and exciting new opportunities. Ever wondered how to make your retirement years truly rewarding? Discover the art of lifestyle planning as we weigh the merits of covered call strategies against the traditional buy-and-hold approach. From embarking on early adventure travels to finding joy in volunteering or teaching, we guide you in aligning your financial strategies with your life goals. This is not just about numbers; it's about crafting a retirement that's as enriching as it is financially sound, ensuring your golden years shine brightly. As we wrap up, we dive into the AQR Style Premia Alternative Fund's niche role in a risk parity portfolio. With a pinch of humor and a dash of nostalgia, we navigate listener emails, including a lighthearted reflection on childhood mishaps and classroom blunders. We end on a playful note, reminding you to embrace the imperfections and enjoy the whimsical side of life. Remember, while our advice aims to enlighten, always turn to your trusted advisors for personalized guidance. Support the show…

Risk Parity Radio

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Episode 388: Fun With A Financial Birthday Poem, A Couple Leveraged Portfolios And A Distribution On A Short Timeframe 30:05

19 weeks ago30:05

30:05

In this episode we answer emails from Cy, Lucas, and Rafa. We discuss a poem from a financial advisor, a quandary between two gambling problem leveraged portfolios and application of the Macro-allocation Principle, and what to do about a trust with an abbreviated distribution timeline. Note, we forgot to include the second email from Lucas, but it was just yet another reference to the Cederburg paper that has already been beaten like a dead horse. Links: Father McKenna Center Donation Page: Donate - Father McKenna Center Cederburg Paper redux (revised December 2024): Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice by Aizhan Anarkulova, Scott Cederburg, Michael S. O'Doherty :: SSRN Amusing Unedited AI-Bot Summary: What happens when AI and financial advice collide in unexpected ways? Join me, Frank Vasquez, as I share an amusing tale of a birthday poem that might just have been crafted by a robot for my client, Randolph. We dive into the hilarious side of AI-generated content and how it intersects with personal finance, pondering the sincerity of such personalized gestures. Alongside these playful musings, we explore listener inquiries, prioritizing those supporting our cherished Father McKenna Center, and trace the ripples of AI's growing role in financial advisory services. Ever wondered if your investment portfolio could use a strategic shake-up or if classic Western films still hold a place in today's world? We tackle these questions by examining the pros and cons of composite versus aggressive asset class funds, unraveling the complexities of leveraging investments. As a palate cleanser, we venture into a nostalgic realm, reminiscing about the enduring legacies of Western film icons like Gene Autry and Randolph Scott. Their timeless appeal serves as a reminder of past cinematic glory, offering a perfect blend of finance, nostalgia, and entertainment without crossing into the realm of legal or tax advice. Tune in for an engaging journey through these fascinating topics! Support the show…

Risk Parity Radio

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Episode 387: Reprising The Big Mo, Mid-caps, Stuff On The Website And Portfolio Reviews As Of December 13, 2024 32:25

19 weeks ago32:25

32:25

In this episode we answer emails from Ed, Wes and Mary Anne. We revisit the momentum factor and squeeze that lemon a bit (and our dinner with the Dude) talk about mid-caps and limited 401k options, and discuss some of the information on the portfolios page at the website (and its limitations). And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional Links: Father McKenna Center Donation Page: Donate - Father McKenna Center Test Folio Analysis of Large Cap Growth And Momentum Funds: testfol.io/analysis?s=aBroPEsxfLp Test Folio Analysis of Small Cap Value With Momentum: testfol.io/analysis?s=fjwv647o2PU Amusing Unedited AI-Bot Summary: Can a simple shift in investment strategy transform your portfolio's performance? Explore the power of momentum factors with us in this episode of Risk Parity Radio. We unpack a listener's question on how momentum could enhance a diversified mix of large cap growth, small cap value, long-term government bonds, gold, and rental properties. Delve into the nuances of funds like MTUM and QMOM, and discover whether they offer a meaningful edge over traditional large cap growth options. We promise you'll leave with a clearer understanding of when momentum factors might be a game-changer for your investment strategy. Navigating the complex world of portfolio performance metrics can be daunting. With insights from listener Mary Ann's query, we dissect the intricacies of interpreting performance charts and the importance of total return over an income-only focus. Our conversation touches on tools like Testfolio and Portfolio Visualizer, essential for a consistent, long-term analysis. Don't miss our take on the festive phenomenon known as the Santa Claus rally and how it might impact your financial decisions this December. As we wrap up, join us for a weekly portfolio performance review, where we assess both traditional and experimental portfolio setups. From the All Seasons to the new Optra portfolio, discover the latest trends and strategies. Stick around for our quirky sign-off and find out how you can interact with us, sharing your thoughts and questions. Whether you're a seasoned investor or just curious about optimizing your financial future, this episode is packed with insights and a sprinkle of humor to keep things lively. Support the show…

Risk Parity Radio

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Episode 386: Strategies Of The Over-saved, Fun With Leverage And Tips For Our British Friends 24:51

20 weeks ago24:51

24:51

In this episode we answer email from Pankaj, Matthias and Iain. We discuss the simple path to withdrawals when you are over-saved and the over-complications of the over-saved, reprise some information about leveraged accumulation portfolios and provide some tips for a U.K listener. Links: Interview of Jim Grubman: Dr. Jim Grubman: The Psychology of Wealth | Rational Reminder 282 PensionCraft YouTube Channel: What Is The Safe Withdrawal Rate In Retirement? Many Happy Returns Podcast: Building a Bulletproof Retirement Portfolio, with Tyler from Portfolio Charts - Many Happy Returns Amusing Unedited AI-Bot Summary: Could a simple tweak to your investment strategy unlock enhanced withdrawal rates and bolster your legacy savings? We unravel the misconceptions surrounding risk parity portfolios and explore how they truly aim to balance asset risk profiles, not just maximize safe withdrawal rates. Discover innovative portfolios like the golden butterfly and golden ratio designed to potentially boost your financial freedom, especially if your spending is comfortably below 3%. For those more focused on long-term growth, we share Warren Buffett’s straightforward approach: a mix of 90% S&P 500 and 10% T-bills. Join us as we also highlight the conservative investment habits of financial minds like William Bernstein and Bill Bengen, and the irony of their attraction to simplicity amidst complex financial strategies. We explore the power of leveraging portfolios for high risk tolerance investors with long horizons, discussing how concentration and leverage could elevate your returns. Practical advice on setting up a leveraged portfolio is on the docket, along with the risks you need to consider. Remember, this engaging episode is purely for your entertainment and enlightenment, not financial guidance. Support the show…

Risk Parity Radio

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Episode 385: Celebrating Generosity And Friends, Mixing It Up With Bonds, And Portfolio Reviews As Of December 6, 2024 50:51

20 weeks ago50:51

50:51

In this episode we answer emails from Ashley, Alexi (a/k/a "the Dude"), and Sean. We discuss our charity and my financial coaching on the side, fun times with the Dude, and an overview of the use of bonds in a portfolio and principles of portfolio construction. For reference, earlier bond episodes mentioned are 14, 16, 75 and 78, 142, 186 and 232, although there are others you can find on the RSS feed page. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional Links: Father McKenna Center Donation Page: Donate - Father McKenna Center ChooseFI Podcast With Yours Truly: 194 | The Role of Bonds in a Portfolio | With Frank Portfolio Visualizer Monte Carlo Simulator: Monte Carlo Simulation Portfolio Charts Portfolio Matrix Calculator: Portfolio Matrix – Portfolio Charts Testfolio Site: testfol.io Amusing Unedited AI-Bot Summary: Ever wondered how to optimize your portfolio during the distribution phase of your financial journey? Picture this: you're sitting at a cozy dive bar, sipping your favorite drink, while we unravel the art of asset allocation in a way that's both enlightening and entertaining. Join me as I share Ashley's inspiring story, a listener who not only hit an impressive milestone of three million dollars in liquid assets but also made a generous donation to the Father McKenna Center. Her journey is a testament to the power of community and the surprising impact of employer matching in charitable giving. Brace yourself for a lively tête-à-tête on financial consultation and strategy, complete with tales of delightful dinners and the irreplaceable warmth of human interaction. Discover how a simple evening out with listener Alexi turned into a treasure trove of insights into building portfolios that cater to substantial spending for loved ones. Amidst the laughter and pop culture references, you'll hear musings on AI's role in podcasting and why the human touch remains a cherished component of our discussions in an automated world. As we meander through the intricacies of bond investing, prepare to challenge conventional wisdom with modern tools like Portfolio Visualizer and Monte Carlo simulations. We'll explore the nuances of bond ETFs and strategic cash allocations, advocating for a more nuanced approach to retirement planning. From understanding the dynamics between stocks and bonds to critiquing typical cash hoarding habits, this episode promises a hearty mix of humor, insight, and practical advice. So grab a seat, and let's embark on this journey to demystify investment strategies while keeping it all delightfully entertaining. Support the show…

Risk Parity Radio

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Episode 384: More On Large Cap Growth Funds, An AI-Podcaster CAPE'd Reprise, And Reviewing The Purpose Of Treasury Bonds 50:43

21 weeks ago50:43

50:43

In this episode we answer emails from Justin, Matt and Donald. We regale in friendships, revisit large cap growth funds with IWY, do a reprise of Episode 238 about the limitations of CAPE ratios with the help of AI podcasters, and discuss the purpose of treasury bonds in a portfolio as recession insurance, and the circumstances of when you might not need it. Links: Father McKenna Center Lessons & Carols: Lessons and Carols - Father McKenna Center Father McKenna Center Donation Page: Donate - Father McKenna Center Comparison of QQQ, VUG and IWY: testfol.io/analysis?s=6uPSB8ZpIIR Episode 238: Podcast | Risk Parity Radio Episode 238 Pinwheel Portfolio: Pinwheel Portfolio – Portfolio Charts Amusing AI-Bot Summary What if you could navigate the complex world of asset allocation with confidence? Discover the secrets to mastering large-cap growth funds as we share an email from Justin, who pits QQQ, VUG, and IWY against each other, revealing why IWY takes the crown for concentrated growth. As we reminisce about the insightful posts on the Risk Parity Chronicles blog, we also invite you to join us in supporting the Father McKenna Center through our charity event. This episode is a blend of foundational investment principles and community spirit, perfect for both new and seasoned listeners. Ever wondered how useful the CAPE ratio really is for your retirement plan? We tackle this question head-on, weighing its stability in stock market valuations against its pitfalls in predicting short-term and sector-specific performances. Our conversation highlights the importance of a diversified, flexible portfolio that aligns with your personal values and long-term goals. With insights from the Fama-French model and behavioral economics, we aim to equip you with strategies that mitigate biases and enhance financial decision-making. Feeling puzzled about the role of long-term treasury bonds in your portfolio? Our discussion, inspired by an email from Donald in the U.S. Navy, examines their necessity as recession insurance and deflation hedges. We trace the evolution of risk parity portfolios, emphasizing the significance of diverse assets in navigating economic uncertainties. Lastly, indulge in a light-hearted reflection on love and technology, as we celebrate connections that transcend the digital realm. Tune in for a heartfelt, humorous, and informative journey with Risk Parity Radio. Support the show…

Risk Parity Radio

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Episode 383: The New I-Fund, A Pinwheel, Alternate Management And Portfolio Reviews As Of November 29, 2024 28:31

21 weeks ago28:31

28:31

In this episode we answer emails from James, Van and Michael. We discuss the new international fund in the federal TSP, the Pinwheel Portfolio and the Portfolio Matrix Tool, and variations in portfolio management with the Golden Butterfly portfolio. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional Links: Father McKenna Center Lessons & Carols: Lessons and Carols - Father McKenna Center Father McKenna Center Donation Page: Donate - Father McKenna Center Article About New TSP International Fund: What to Know About the New TSP I Fund | Morningstar Merriman Best In Class ETFs: Best-in-Class ETF Recommendations | Merriman Financial Education Foundation Pinwheel Portfolio: Pinwheel Portfolio – Portfolio Charts Portfolio Matrix Tool: Portfolio Matrix – Portfolio Charts Amusing Unedited AI-Bot Summary: Imagine stepping into a world where personal finance feels as cozy and welcoming as your favorite neighborhood bar. On this episode of Risk Parity Radio, hosted by Frank Vasquez, we tackle James' inquiry about the iFund in the Thrift Savings Plan, delving into its recent shifts, and why you might want to consider the C fund or other diversification paths beyond the TSP. The conversation takes an intriguing turn as we discuss how the mighty US dollar sways international investments, urging you to broaden your horizons for potentially richer outcomes. Join us for a colorful exploration of investment portfolios like the All-Seasons, Golden Butterfly, Golden Ratio, and Risk Parity Ultimate, each with their own flair and strategy. We navigate through last week's market waves, noting which portfolios are riding high and those that are weathering the storm. Venturing into the more adventurous terrain of leveraged funds, we underscore both the thrill and the risks involved. Frank also shares a touch of personal wisdom from his mother's sayings, reminding us that life's journey is full of unpredictable twists—just like the world of investments. Connect with Frank via email or the Risk Parity Radio website, and remember, while we're here to entertain and inform, your financial decisions deserve tailored advice from your trusted experts. Support the show…

Risk Parity Radio

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Episode 382: Managed Futures, VUG vs. QQQ, And Other Fund Considerations 23:18

22 weeks ago23:18

23:18

In this episode we answer emails from George, Alexi (a/k/a "the Dude") and Sean. We discuss a new article about the benefits of managed futures in a portfolio, the Dude's face-off between VUG and QQQ, and considerations for choosing large cap growth funds and international value funds. Links: Father McKenna Center Lessons And Carols: Lessons and Carols - Father McKenna Center New Article About Managed Futures: 2024Q3_QuanticaQuarterlyInsights.pdf Bloomberg Presentation On Investments In Inflationary Environments: MH201-SteveHou-Bloomberg.pdf DBMF "Managed Futures 101" Microsite: iMGP DBi Managed Futures Strategy ETF | iM Global Partner The Dude's VUG vs. QQQ Link #1: Asset Correlations The Dude's VUG vs. QQQ Link #2: testfol.io/?s=kMopG7yQ6SO The Dude's VUG vs. QQQ Link #3: testfol.io/?s=2dpHLA3ndmV The Dude's VUG vs. QQQ Link #4: Factor Regression Analysis Amusing Unedited AI-Bot Summary: Discover the power of trend-following strategies and the impact of charitable giving in the latest episode of Risk Parity Radio. We promise you'll gain insights into the effectiveness of managed futures strategies, particularly in high-interest rate environments, and how they can bolster your risk parity portfolios. We also explore listener George's perspective on CTA strategies and dive into the compelling debate of VUG versus QQQ for large-cap growth ETFs. Plus, you'll hear about the incredible work being done by the Father McKenna Center in Washington, DC, and how you can make a difference through their holiday and Giving Tuesday events. Join us for a thoughtful conversation filled with humor as we engage with our diverse audience, ranging from finance enthusiasts to seasoned investors. This episode is packed with practical financial wisdom that simplifies portfolio management while offering listeners opportunities to support meaningful causes. As we wrap up, we're grateful for your continued support and donations, and we encourage listener engagement through comments, questions, and reviews. Tune in to be part of this vibrant community and enhance your financial journey. Support the show…

Risk Parity Radio

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Episode 381: Retirement Account Basics, Some Cool New Podcasts, And Portfolio Reviews As Of November 22, 2024 57:07

22 weeks ago57:07

57:07

In this episode we answer an email from Tom, Tom the Podcaster's Son (a/k/a "Patrick Star"). We discuss the basics of retirement accounts in honor of the annual benefits enrollment period and some rules of thumb for contributing to them, with a little commentary on HSAs. We also discuss interesting recent podcasts featuring Bill Bengen, Corey Hoffstein and Cliff Asness. And our friend Jackie Cummings Koski. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Bill Bengen podcast: The Father of the 4% Rule Fina - Afford Anything - Apple Podcasts Corey Hoffstein podcast: Masters in Business: Corey Hoffstein - Bloomberg Cliff Asness podcast: Old Man Yells at the Cloud | TCAF 167 Tax Tables: 2024-2025 Tax Brackets and Federal Income Tax Rates | Bankrate Jackie podcast #1: Jackie Cummings Koski: Late St - The Long View - Apple Podcasts Jackie podcast #2: From Poverty to Wealth and Ear - Catching Up to FI - Apple Podcasts Jackie podcast #3 (HSA focused): All About The Health Savings A - Journey To Launch - Apple Podcasts Sample Investopedia Article: 401(k) vs. IRA: What’s the Difference? Amusing Unedited AI-Bot Summary: Unearth the secrets to a financially independent future as we explore groundbreaking strategies and expert insights in this episode. Learn why Bill Bengen's latest research challenges conventional wisdom on withdrawal rates and how a diversified portfolio, including alternative assets like gold, can empower your financial journey. With engaging discussions from finance heavyweights like Corey Hofstein, we promise you a treasure trove of actionable advice to enhance your portfolio management and tax strategies. This episode is a masterclass for the do-it-yourself investor, guiding you through the maze of retirement account options and tax implications for every stage of life. For young professionals, discover how to maximize your 401k and Roth contributions, while mid-career individuals will learn to optimize savings amidst family and mortgage commitments. If you're nearing retirement and feeling off-track, we offer insights to realign your financial plans and keep your retirement goals within reach. Join us as we tackle the complexities of retirement account withdrawals and the strategic use of Health Savings Accounts as investment vehicles. With practical advice and a touch of humor, we'll navigate the week's market performances and celebrate the gains in sectors like the S&P 500, NASDAQ, and gold. From the power of compounding to the significance of early financial planning, this episode is your guide to mastering the art of financial independence. Support the show…

Risk Parity Radio

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Episode 380: Missing Links, Efficient Transitioning In Taxable Accounts And Incorporating Global Exposures 26:39

23 weeks ago26:39

26:39

In this episode we answer emails from Melissa, Neil, Mark and Mike. We discuss a missing link from Episode 7 and a substitute for it, the podcast distribution, moving from an accumulation portfolio in a taxable account to a retirement portfolio efficiently, and considerations when incorporating international (non-U.S.) funds. Links: Three Ingredients Article: Three Secret Ingredients of the Most Efficient Portfolios – Portfolio Charts Merriman ETF Recommendations: Best-in-Class ETF Recommendations | Merriman Financial Education Foundation Amusing Unedited AI-Bot Summary: Unlock the secrets of do-it-yourself investing with Risk Parity Radio, where listener queries drive our exploration of effective financial strategies. Ever wondered how to craft a risk parity portfolio as you approach retirement? We tackle this and more, including navigating the world of taxable accounts, minimizing taxes, and managing significant expenses like a house down payment. Melissa's email about a broken Ray Dalio link becomes an opportunity to explore alternative resources, while Mark's playback issues on Apple Podcasts spark our gratitude for community feedback. You'll also discover the nuances of transitioning to a risk parity portfolio without opening new accounts, and the surprising overlaps between VTI and VUG. Ready to rethink international diversification? While some portfolios skip international funds, they still provide global exposure through assets like global value-tilted funds and Chinese A shares. We discuss why this approach might suffice, as international funds often mirror US stocks, especially in large caps. Instead, our focus shifts to balancing value, growth, and size using small-cap value funds from Avantis or DFA. With flexible templates and key diversification metrics, you'll learn to construct a robust portfolio without getting lost in geographic diversifications. Tune in, and reshape your investing toolkit with practical insights and empowering strategies. Support the show…

Risk Parity Radio

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Episode 379: Using Risk Parity Portfolios For Elder Relatives, Intermediate Goals And Accumulation, And Portfolio Reviews As Of November 15, 2024 31:42

23 weeks ago31:42

31:42

In this episode we answer emails from Jenny, Arun and Jeff. We discuss setting up a risk parity style portfolio for an elder relative, what to do with 529 money and college funds when you are getting close, and the use of risk parity style portfolios for intermediate goals or accumulation. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Yours Truly On The Earn & Invest Podcast: Why Risk Matters w/ Frank Vasq - Earn & Invest - Apple Podcasts Value Stock Geek's Weird Portfolio: Weird Portfolio – Portfolio Charts Jared Dillian And The Awesome Portfolio: Show Us Your Portfolio: Jared Dillian Father McKenna Center Donation Page: Donate - Father McKenna Center Amusing Unedited AI-Bot Summary: What if you could unlock the secrets of risk parity and transform your investment strategy? Join us on Risk Parity Radio as we explore how strategic gold allocation and portfolio diversification can revolutionize your financial journey. Dive into the humor-laden world of market fluctuations and portfolio reviews, and learn from our recent discussion on the Earn and Invest podcast with Jordan Grumet about integrating risk parity into modern portfolio theory. We also respond to a thoughtful email from Jenny, a dedicated Patreon supporter, who's crafting a risk parity portfolio for her mother-in-law. Get insights on asset allocation, the timing of gold investments, and how to utilize current market conditions to make savvy decisions. In this episode, we delve into diversifying investment strategies during the accumulation phase, particularly for DIY investors like Jeff, a mid-40s Gen Xer contemplating a 401k rollover. Explore a variety of strategies, including Tyler's Golden Butterfly, the Weird Portfolio by Value Stock Geek, and Jared Dillian's Awesome Portfolio. Discover how these can complement ventures in real estate or business, and draw inspiration from Bruce Lee's philosophy to tailor an approach uniquely your own. Whether you're a novice or a seasoned investor, expect to walk away with practical advice and fresh perspectives to enhance your financial strategy. Support the show…

Risk Parity Radio

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Episode 378: Silver, Useless ETF Strategies, The Evolution of DIY Investing And Yukon Cornelius! 20:45

24 weeks ago20:45

20:45

In this episode we answer emails from James, MyContactInfo and Cy. We discuss using silver in addition to gold in a portfolio, review again why many "options strategy funds" and other complex ETFs are generally a waste of space in a portfolio and talk about a recent Andrew Tobias interview and the history of DIY investing. Links: Eric Balchunas Interview: Eric Balchunas on The Hidden Gems of the ETF World You Need to Know! (youtube.com) Andrew Tobias Interview: The Only Investment Guide You'll Ever Need with Andrew Tobias | White Coat Investor Amusing AI-Bot Summary: Discover why silver might be the wild card you didn't expect in your investment portfolio. With its industrial uses and lack of central bank holdings, silver might ramp up your portfolio's volatility without offering much in terms of diversification. We explore the intriguing story of the Hunt brothers and their infamous attempt to corner the silver market in the late 1970s, shedding light on the lessons learned from this historical market manipulation. Managed futures, we argue, could be a more strategic play for those looking to ride silver's unpredictable trends. As we journey through the evolution of DIY investing, we take a critical look at the rise and fall of heavily marketed investment funds, like buy-write and options strategy funds. Through the wisdom of Andrew Tobias, we trace the shift from active fund management in the 1980s to today's preference for indexing and strategic asset allocation. From the so-called "Bronze Age" to our current "Golden Age" of investing, the importance of asset allocation remains a steadfast guide. So whether you're a seasoned investor or just starting out, these reflections aim to illuminate a path toward more informed and successful investment decisions. Support the show…

Risk Parity Radio

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Episode 377: Common Misconceptions About VT And Simplicity, A Levered Portfolio Comparison And Portfolio Reviews As Of November 8, 2024 33:14

24 weeks ago33:14

33:14

In this episode we answer emails from Alyson, Martijn and Russel. We discuss the drawbacks to using a total world fund, common misconceptions about it and misguided worship of the Simplicity Principle, a levered sample portfolio comparison and basic ideas for accumulation. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional link: Levered Sample Portfolio Comparison: testfol.io/?s=8JtI7Xd2q7l Amusing Unedited AI-Bot Summary: Can achieving higher safe withdrawal rates in retirement really be as simple as investing in a single ETF? Discover the complexities of using VT, a total world fund, during your accumulation phase and why it might not be the one-size-fits-all solution it's cracked up to be. We'll challenge conventional wisdom on cap-weighted funds and explain why diversifying across different asset classes is crucial for your portfolio's long-term success. Get ready to expand your horizons as we question the effectiveness of simplicity and share strategies for effective rebalancing. Join us for a lively exploration of portfolio diversification with listener Q&A, where we break down the dynamics of levered portfolios and strategize about blending small-cap value with large-cap growth. Whether you're just starting your investment journey or refining your approach, we'll guide you through the pros and cons of various strategies, helping you navigate the path to financial freedom. Plus, we review an exciting week in the markets, highlighting stellar performances and acknowledging the unpredictable nature of trends. Dive into the details with us and equip yourself with the knowledge to make informed investment decisions. Support the show…

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Episode 376: HSA vs. Roth, Navigating International Investments And Camelot! 39:48

25 weeks ago39:48

39:48

In this episode we answer emails from Anderson, Camille, and Chris. We discuss and HSA vs. a Roth IRA for a lower-taxed earner, the tax, brokerage account, and portfolio considerations for a globe-trotting Canadian, and the gestalt of this podcast. Links: Father McKenna Center Donation Page: Donate - Father McKenna Center Portfolio Charts Portfolio Matrix: Portfolio Matrix – Portfolio Charts Amusing Unedited AI-Bot Summary: Imagine navigating the world of international investment with the finesse of a seasoned traveler—all while balancing the priorities of a large family. Join me on Risk Parity Radio, where we explore Anderson's financial journey. With six kids and a modest income, Anderson seeks guidance on whether to prioritize his HSA or Roth IRA. We dissect the advantages and pitfalls of each option, examining long-term growth and inheritance implications, and offering a balanced approach to alleviate his concerns. Spoiler: a Roth IRA might just be his golden ticket. As you contemplate international retirement, consider the intricate dance of managing a portfolio across borders. We discuss the indispensable role of a savvy accountant to navigate tax complexities and the potential necessity of relocating assets to sidestep onerous US regulations. Discover how Interactive Brokers can be your go-to platform for seamless international transactions and learn from real-world investment scenarios, like the unpredictable journey with MGK and real estate ventures. Our strategic planning insights will steer you clear of unreliable assets, paving a path to financial independence. Trading stock charts for crystal balls, we venture into forecasting with a twist—relying on historical data instead of mere speculation. By leveraging portfolio matrices, we guide you through the labyrinth of investment possibilities beyond traditional stocks and bonds. Balance simplicity with complexity as you craft a robust portfolio that withstands market volatility. And as always, we cap off with a dose of humor—a nod to Monty Python’s "silly place"—reminding you that while we’re serious about finance, we’re equally serious about having a good laugh. Support the show…

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Episode 375: Learning To "Be The Ball" With Tax And Portfolio Allocation Considerations And Monthly Distribution Mechanisms 30:18

26 weeks ago30:18

30:18

In this episode we answer emails from Frank and Dan. We discuss investment considerations in the 32% marginal bracket, reallocating a cash holding to bonds and alternatives and common withdrawal mechanisms for taking monthly distributions. Link: Father McKenna Center Donation Page: Donate - Father McKenna Center Amusing Unedited AI-Bot Summary: Ever pondered how to perfectly balance your portfolio in a high tax bracket? We promise you'll gain actionable insights from Frank, a generous donor and semi-retired investor navigating his complex asset allocation strategy. At 60 years old, Frank seeks our advice on his bond investments, with options like EDV, VGLT, and VGIT on the table. His financial journey becomes a fascinating case study as we unravel the best strategies for optimizing his diverse portfolio of stocks, gold, municipal bonds, and cash. Plus, we emphasize the importance of giving back, spotlighting our cherished cause, the Father McKenna Center. The episode takes a deeper dive into tax strategies tailored for substantial assets, providing listeners with the tools to maximize their retirement portfolios. Learn how retirement accounts like IRAs and solo 401(k)s can be leveraged to defer taxes, especially for those enjoying a higher tax bracket. We discuss the benefits of municipal bonds for tax efficiency and highlight the necessity of professional financial advice. Our focus remains on maintaining a balanced mix of investments to ensure growth and stability as you transition into retirement. Finally, we explore effective strategies for managing portfolio drawdowns and monthly distributions. We introduce Harold Avinsky's bucket strategy and its psychological benefits, drawing inspiration from financial expert Paul Merriman. As we wrap up, we encourage you to reflect on aligning with your personal values and the universe's natural flow, all while enjoying light-hearted exchanges that underscore these financial principles. Join us for an enlightening conversation designed to empower your financial planning journey. Support the show…

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Episode 374: Modern Fund Construction Trends, Using And Transitioning Levered Fund Portfolios And Portfolio Reviews As Of October 25, 2024 30:25

26 weeks ago30:25

30:25

In this episode we answer emails from Gordon, Roger and John. We discuss the ChooseFI podcast and podcast appearances, modern trends in fund construction and considerations with leveraged funds while transitioning to a drawdown portfolio, along with some basic guidelines. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Roger's Bloomberg Article: Goldman’s Kostin Urges Putting Brake on Stock-Index Reshufflings - Bloomberg Return Stacked Webinar: Diversification 2.0: Mastering the Art of Portable Alpha (youtube.com) Amusing Unedited AI-Bot Summary: Ever wondered how to construct a portfolio that balances risk and return while maximizing your investment potential? On this episode of Risk Parity Radio, we promise to demystify the art of alternative asset allocation for all you do-it-yourself investors out there. Join me, Frank Vasquez, as we transform a complex topic into an engaging conversation reminiscent of a meet-up at your favorite dive bar. We'll share our latest portfolio updates, address intriguing listener questions, and explore the emerging industry of podcast guesting, with a special nod to Gordon for his feedback on my recent appearance on the ChooseFI podcast. How do index funds really work, and could their construction hold the key to better diversification? Listen in as we tackle these questions, dissecting the process of index fund innovation and highlighting the shift from traditional cap-weighted indexes to the realm of sectors, factors, and thematic indexes. We explore the exciting potential of algorithm-driven fund construction and replication strategies, inspired by examples like the DBMF Managed Futures Fund. This episode uncovers the abundant opportunities that ETF experimentation brings to savvy investors looking to broaden their horizons with advanced strategies. Looking to craft a retirement drawdown portfolio that stands the test of time? We guide you through the nuances of constructing a portfolio that supports sustainable spending rates while leveraging funds for enhanced returns. Using John's real-life portfolio as a case study, we analyze components like NTSX, AVUV, GLDM, and DBMF, focusing on risk parity and return stacking principles. We also review recent market performance and introduce you to our newest portfolio, Optra. Before signing off, connect with us through our provided contact info, and remember, our content is here to inform and entertain, not serve as professional financial advice. Support the show…

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Episode 373: Risk Parity Books And Info, Wresting A Complex Portfolio From An Advisor, And Aggressive Investing In Your Youth 34:23

27 weeks ago34:23

34:23

In this episode we answer emails from David, Jennifer and Byron. We discuss Risk Parity books and finance books and sources in general, considerations in taking control of a complicated portfolio from a (former) AUM advisor, and portfolio considerations for the younger investor considering tech, leverage and other various and sundry things. Links: Book #1: Risk Parity: How to Invest for All Market Environments by Alex Shahidi | Goodreads Book #2: Risk Parity Fundamentals by Edward E Qian | Goodreads Book #3: Introduction to Risk Parity and Budgeting by Thierry Roncalli | Goodreads Risk Parity Radio RSS Feed Page: Risk Parity Radio RSS Feed (buzzsprout.com) Ben Felix Video On Leverage: Investing With Leverage (Borrowing to Invest, Leveraged ETFs) (youtube.com) Amusing Unedited AI-Bot Summary: Prepare to unlock the secrets of risk parity investing and transform your retirement portfolio. Ever wondered which books can truly elevate your understanding of risk parity? We offer a curated list of essential reads, including Alex Shahidi's "Risk Parity: How to Invest for All Market Environments," to guide you in this complex yet rewarding approach. These books cater to the savvy investor ready to harness academic and professional insights, focusing on diversification and modern portfolio theory as powerful tools for financial success. Navigating the maze of investments alone can be daunting, especially post-advisor. Jennifer's story highlights the challenges and opportunities of consolidating a vast portfolio without triggering hefty tax bills. We provide actionable strategies to streamline investments, emphasizing the critical role of cost basis data and aligning your current holdings with future goals. Tax efficiency takes center stage, with insights into evaluating investment overlaps, leveraging different account types, and smartly planning around income changes to maintain a cohesive and tax-savvy portfolio. Are you ready to supercharge your investments for growth? Self-employed young investor Byron's journey reveals the excitement and risks of tech and leveraged ETFs in an aggressive growth strategy. Balancing high-risk potential with a thoughtful approach is key, and we emphasize the importance of a low-cost index-based portfolio strategy. With humor and practicality, we explore how to achieve impressive returns while managing risks, encouraging a balanced investment approach that doesn't gamble your financial future. Clear financial goals and consistent strategies are your allies in navigating the unpredictable markets. Support the show…

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Episode 372: Using The Force To Love Gold And Databases, And Portfolio Reviews As Of October 18, 2024 23:41

27 weeks ago23:41

23:41

In this episode we answer emails from Lucas, Hannelore and Joe. We discuss databases, where to put your gold ETFs and how it is taxed, and a modelling recommendation for testfol.io and modelling OPTRA. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Father McKenna Center Donation Page: Donate - Father McKenna Center Ken French Database Page: Kenneth R. French - Data Library (dartmouth.edu) Portfolio Charts Portfolio Matrix: Portfolio Matrix – Portfolio Charts Investopedia Article About Taxation of Gold and Collectibles: How Collectibles Are Taxed (investopedia.com) (See also notes to Episode 303). Joe's UPRO Model: testfol.io/?d=eJytkF9LwzAUxb9KuQ8%2BVakrCBaGDP%2BgIFg2BccY5drcdtE0mWnaKqPf3dtWZhH2tjwl5NxzfufuIFfmDVWMFosSoh2UDq1LBDqCCMAH0mL0Gn5rVBCdB3x8QPGeSJ0pdNJoiDJUJfmQYrnJlGkgCv4eSWbpk32WhFZ9s5s1SkmdJ43UotNeBK0PW2NdZpQ0jLPagcaiy148FBVnkPBe4vkTz0pdU%2BluZC0FI7LW2YqDLXEb1Cnd%2FctyMv0gO3gO9841Xj7Prx6n4cntNDi7nLBuSzYl7fp%2B7doHYTHnFq2%2FRwm%2FvH7Oa6TbeJpyrl6T17U8KtcYJgx6gr3gera4fx0LTieHcGepq1AddW2%2FXodWtW5%2FALcmxls%3D Amusing Unedited AI-bot Summary: Unlock the secrets to smarter investing with us at Risk Parity Radio! What if understanding the complexities of asset allocation could transform your investment strategy? That's exactly what we explore as we tackle Lucas's burning question about robust databases for backtesting historical financial data. With a sharp focus on resources like the Fama French database, Bogleheads, and Portfolio Visualizer, we emphasize the power of broad asset class data over individual tickers. Plus, we highlight how using multiple tools, including the nifty Portfolio Matrix at Portfolio Charts, can lead to consistent, reliable investment results. As we navigate the world of investing, we sprinkle in humor with a ferry trip anecdote that doubles as a clever metaphor for strategic thinking in finance. With insights on choosing between traditional IRAs, Roth IRAs, and brokerage accounts, we spotlight listener Joe's stellar contribution on leveraging funds and performance modeling using the Testfolio tool. Our lively discussion doesn't end there; tune in for our weekly portfolio performance reviews, featuring everything from small-cap value stocks to gold and treasury bonds. We won't leave you guessing about sample portfolios like the All Seasons and Golden Butterfly, as we break down their substantial returns and year-to-date gains. Packed with practical advice and engaging stories, this episode is a must-listen for any investor looking to refine their financial approach. Support the show…

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Episode 371: OPTRA, Rising Glidepaths And A Smooth Operator 31:01

28 weeks ago31:01

31:01

In this episode we answer emails from Anderson, Sean and Colin. We discuss the OPTRA sample portfolio, using rising glidepaths or bond tents in portfolio management and Colin's "Smooth Operator" Portfolio. Links: 2016 Kitces Article re Bond Tents and Glidepaths: The Portfolio Size Effect And Optimal Equity Glidepaths (kitces.com) Portfolio Charts Portfolio Matrix Comparison Tool: Portfolio Matrix – Portfolio Charts Colin's Portfolio: Backtest Portfolio Asset Allocation (portfoliovisualizer.com) Portfolio Charts Article: When Past Performance Is Absolutely Indicative of Future Results – Portfolio Charts Amusing Unedited AI-bot Summary: Discover the secrets to crafting a retirement portfolio that balances risk and reward in episode 371 of Risk Parity Radio. We introduce the Optra portfolio, a unique blend of risk parity with a hint of leverage, and explore why a descriptive name was chosen over the suggested Uncle Frank portfolio. This episode gives you a backstage pass to our discussion on managing equity exposure and sequence of return risks with innovative strategies like bond tents and equity glide paths paired with risk parity styles, as proposed by our listener Sean. Unlock the power of portfolio construction tools and techniques with us. We demystify the use of Portfolio Visualizer's Monte Carlo Simulator and delve into expert insights from Bill Bengen and Wade Pfau on optimal equity allocations. You'll grasp the significance of historical data as we dissect how different portfolio compositions can affect decumulation strategies, touching on metrics like CAGR and the ulcer index. Our conversation extends to Colin's Smooth Operator Portfolio, which cleverly uses ETFs to enhance diversification and reduce volatility, showing the value of innovative approaches to portfolio performance. As we wrap up, expect a playful twist with Frank Vasquez's rendition of "Smooth Operator" and a reminder that our advice is designed to inform and entertain, not replace personalized financial consultation. We stress the importance of consulting personal advisors for tailored decisions. Join us for an engaging and enlightening session that combines financial wisdom with a touch of humor, ensuring you're well-prepared for your financial journey. Support the show…

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Episode 370: Jamming In Joe's Garage With Simba's Backtester And SVOL And Portfolio Reviews As Of October 11, 2024 27:42

28 weeks ago27:42

27:42

In this episode we answer emails from Jimmy, Dave and Richard. We discuss the joys of Joe's Garage, the Bogleheads Simba spreadsheet and Lazy Portfolios and a revisit of the ETF SVOL. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Simba's Spreadsheet (Article And Link): Simba's backtesting spreadsheet - Bogleheads SVOL Webpage: SVOL Simplify Volatility Premium ETF | Simplify Richard's SVOL vs. Equity ETFs Analysis: testfol.io/analysis?d=eJxdikEKwjAQRa8S%2FjoL68JFruEBwtCkMu04kUmaIuLdDbgR3%2B7x3guN5y1bRYC79iKuPp5ur%2FfuqO8dHrWRtZio5bEMz5p%2B7Fs7CcJ0GnhQWiPrItS4KMJCUrOHFRHWWzxYUzkQLuOci1n8D9P5%2FQF55jJ4 Richard's SVOL Portfolio Analysis: https://tinyurl.com/bddjy2k4 Eric Balchunas Interview: Eric Balchunas on The Hidden Gems of the ETF World You Need to Know! (youtube.com) Amusing Unedited AI-bot Summary: Imagine a finance podcast that's as entertaining as a night out at your favorite dive bar. I'm Frank Vasquez, and on this playful yet insightful episode of Risk Parity Radio, we hit a milestone of 750,000 downloads, a delightful gift for my 60th birthday. Join me as I reminisce about the impact of Frank Zappa's "Joe's Garage" on my youth and answer listener emails, including a deep dive into Simba's Backtesting Spreadsheet. We ponder the Bogleheads' seemingly timeless investment models and their reluctance to embrace change. Turning our focus to innovative ETF strategies, we dissect the SVOL ETF, an inverse VIX fund with the potential to spice up your portfolio. Despite its lack of historical data and the risk of significant distributions in taxable accounts, this ETF might just find its rightful place in your retirement portfolio. We examine the broader trend of creative ETFs, thanks to recent SEC rule changes, and weigh the psychological appeal against the need for financial prudence. Curiosity piqued, we also explore SVOL's correlation with growth or value stocks. Rounding out the episode, we analyze weekly portfolio performances with strategies like the All Seasons, Golden Butterfly, and Risk Parity Ultimate. I update you on specific portfolio allocations and performances, highlighting the beauty of consistent returns, even if they might seem uneventful. Engage with us through questions or comments, subscribe, and leave a review. As we wrap up, enjoy a humorous tale that weaves together music, relationships, and personal growth, leaving you informed and entertained. Remember, this episode offers insights for entertainment and informational purposes, so consult your personal advisor for tailored financial advice. Support the show…

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Episode 369: Managing Treasury Bond Funds, How An AI-Bot Translates This Podcast, And Monte Carlo Based Variable Withdrawal Strategies 49:52

29 weeks ago49:52

49:52

In this episode we answer emails from Frank, John, Aaron and Pete. We discuss bond allocations in treasuries of various durations, when retirement account space is limited and the tax bracket is high, the reasons for the strange presentation of this podcast and how to use a new AI-Bot to circumvent them (with an embedded example of an AI-Bot podcast created from Episode 333 about target date funds), the joys of having younger listeners and Derek Tharp's Monte Carlo based variable withdrawal strategies. Links: The New Google Notebook AI-Bot That Creates Podcasts: NotebookLM | Note Taking & Research Assistant Powered by AI Derek Tharp Podcast: Busting the 4% Rule Myth - Retirement Revealed | Podcast on Spotify Derek Tharp Article: A Monte Carlo 50% Retirement Success Probability Can Work (kitces.com) Amusingly Inaccurate Unedited AI-Bot Summary: Unlock the secrets of smarter investing and redefine how you approach your portfolio with our latest episode of Risk Parity Radio. Ever wondered if your 401k rollover could be optimized for greater returns? We dive into a listener's question about achieving a 30% bond allocation, weighing the pros and cons of treasury versus municipal bonds. You'll discover insights into balancing tax implications and investment goals, while also considering the volatility of different bond types. Our conversation guides you toward a holistic view of your investment strategy, ensuring your portfolio aligns with your personal financial objectives. Challenging the status quo, we welcome guest Frank Vasco to dissect the perceived simplicity of target date funds. Could these popular investment vehicles be holding your growth potential back? Frank shares compelling findings from a 2022 study, revealing how TDFs might underperform significantly over decades. Even industry stalwarts like Vanguard aren't immune to these criticisms. With this in mind, we encourage you to critically evaluate your 401k plan choices, embracing a mindset of informed skepticism and strategic thinking. Finally, we examine the fascinating world of index funds and question traditional retirement withdrawal strategies. Drawing an analogy to betting on the entire Kentucky Derby, we explore how index funds offer diversification and often outperform active management. As you rethink retirement, we discuss utilizing Monte Carlo simulations to create flexible withdrawal strategies that adapt to changing circumstances. This episode is all about empowering you with financial literacy and the tools to challenge conventional wisdom, putting you in control of your future wealth. Support the show…

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Episode 368: Analysis Tools, Tactical Allocation Strategies, International Accounts And Portfolio Reviews As Of October 4, 2024 27:02

29 weeks ago27:02

27:02

In this episode we answer emails from Andrew, Jeff, Ron and Javier. We discuss analysis tools for leveraged funds like UPRO and TNA, Tactical Allocation Strategies, how and where this podcast is distributed, and brokerage account options for foreign (to the US) nationals. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Andrew's Portfolio Visualizer Link: Backtest Portfolio Asset Allocation (portfoliovisualizer.com) Testfol Portfolio Analyzer (see the Help link in the drop-down menu for instructions): testfol.io Allocate Smartly Website: What We Do - Allocate Smartly Interactive Brokers Introduction For Accounts: Introducción a IBKR | Trading Course | Traders' Academy | IBKR Campus (interactivebrokers.com) Amusing Unedited AI-Bot Summary: Ready to rethink your investment strategy? Uncover the secrets of a diversified portfolio with leveraged funds like TNA and UPRO in our latest episode of Risk Parity Radio. We'll guide you through the nitty-gritty of managing such portfolios, emphasizing the significance of fee considerations and the mechanics of monthly rebalancing. Explore alternative strategies, including rebalancing bands, and discover the power of tools like Portfolio Visualizer and TestFol to optimize your investment approach. We blend humor and savvy insights to create an inviting atmosphere, reminiscent of a friendly chat at your favorite local dive bar. Our exploration doesn't stop there. We tackle Jeff's curiosity about tactical allocation strategies for retirement, diving into the complexities and risks, including overfitting and tax inefficiencies. While some approaches might tempt with short-term outperformance, we advocate for simpler, more reliable diversification techniques. Tune in for our market performance review, where we assess the minimal shifts in major indices and the dramatic moves in commodities and long-term treasury bonds. From the All Seasons to the Risk Parity Ultimate portfolios, we ensure you have the insights needed to navigate your financial journey through market volatility and distribution strategies. Support the show…

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Episode 367: A Mini-Rant About Covered Call Funds (Again), The Future Of Levered Portfolios And Principles Of Using Historical Data 31:52

30 weeks ago31:52

31:52

In this episode we answer emails from Mark, Jon and Richard. We discuss the perils of income investing, covered call funds and SPYI, one potential future of DYI investing using levered and unlevered risk-parity style portfolios, and the use and misuse of historical data in various analyses with a reference to a blog post from Cliff Asness. Links: Video re SPYI: SPYI Squeezes 12% Yield from the S&P 500 (SPYI ETF) (youtube.com) Portfolio Visualizer Litmus Test of SPYI: Backtest Portfolio Asset Allocation (portfoliovisualizer.com) Cliff Asness Article: Efficient Frontier “Theory” for the Long Run (aqr.com) Father McKenna Center Donation Page: Donate - Father McKenna Center Note that the usually "Amusing Unedited AI-bot Summary" was so ridiculously inaccurate I had to omit it. Support the show…

Risk Parity Radio

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Episode 366: Managed Futures, Tools For Varying Cash Flows, 529 Management And Portfolio Reviews As Of September 27, 2024 42:23

30 weeks ago42:23

42:23

In this episode we answer emails from Mark, James and Anderson. We discuss differing performances in managed futures funds, a Portfolio Visualizer calculator and what to do with a TSP, and what to do about 529s when approaching the use date. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Recent ChooseFI podcast with Yours Truly: 5% SWR, Revealed Preferences and the 3 stories | Frank Vasquez | Ep 508 | ChooseFI Father McKenna Center Main Donation Page: Donate - Father McKenna Center Portfolio Visualizer Financial Goals Tool: Financial Goals (portfoliovisualizer.com) Amusing Unedited AI-bot Summary: How do you ensure a worry-free retirement while navigating the complexities of market trends and withdrawal strategies? Welcome back to Risk Parity Radio! Fresh from a cross-country adventure to the picturesque Washington State, we’re back with a renewed zest to help you master the art of personal finance and investing. Our cozy, dive bar-esque podcast is not just about numbers and charts; it's about community, humor, and shared learning. In this episode, we revisit our eight sample portfolios and shed light on how to build relationships and joy within your retirement hobby. If you're new here, start your journey with episodes 1, 3, 5, 7, and 9 for a solid foundation. Ever wondered how to choose between managed futures ETFs like KMLM and DBMF, or how to predict safe withdrawal rates for early retirement? We’ve got you covered. We explore the intricacies of KMLM's track record and DBMF's market adaptability, helping you determine the best fit for your diversified portfolio. Plus, we answer a listener's burning question about withdrawal rates, and untangle the complexities of the Thrift Savings Plan versus an IRA rollover. Dive into the world of financial planning tools, Social Security strategies, and brokerage firms like Fidelity and Schwab for low-cost investments. Join our informative yet quirky session designed for do-it-yourself investors looking to build a robust, diversified retirement plan. Support the show…

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Episode 365: Leveraging OPTRA, The Four Phases Of Financial Knowledge And Portfolio Reviews As Of September 6, 2024 41:28

33 weeks ago41:28

41:28

In this episode we answer emails from Mikel, Garrison and Matt. We discuss our charity and some foundational episodes, the use of leveraged fund UPRO in the OPTRA sample portfolio, and the four phases of learning and knowledge in personal finance, which are (1) Baby Steps; (2) Shiny Object Syndrome; (3) Applying Formulas That Represent Sound Investing Principles; and (4) Understanding Sound Investing Principles And Applying Them Directly. And Mt. Rushmore and The Dog With The Longest Name. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Risk Parity Radio RSS Feed With All Podcasts On One Searchable Webpage: Risk Parity Radio RSS Feed (buzzsprout.com) Father McKenna Center Main Donation Page: Donate - Father McKenna Center Father McKenna Center Walk4McKenna Page: Walk4McKenna - Father McKenna Center Amusing Unedited AI-Bot Summary: How can long-term treasury bonds cushion your portfolio against turbulent market conditions? This week on Risk Parity Radio, we provide a detailed review of our sample portfolios, showing how treasuries have played a crucial role in mitigating recent stock market losses. We also share an inspiring email from Michael, a new listener who discusses his generous donation to the Father McKenna Center and highlights the upcoming Walk for McKenna fundraiser. Tune in to learn how you can support this meaningful cause while enhancing your understanding of risk parity investing. Embark on a journey to financial independence with us as we dissect the critical stages and pitfalls along the way. We'll guide you through the initial "baby steps," cautioning against the allure of "shiny object syndrome," and emphasize the importance of transitioning to practical, DIY investment strategies. Discover the core principles of successful investing, such as diversification and macro allocation, that will empower you to achieve true financial independence and navigate your personal finance journey with confidence. In a week marked by significant market declines, we analyze the performance of various portfolio strategies, highlighting the resilience of long-term treasury bonds and the impressive gains in diversified portfolios like the All Seasons and Golden Butterfly. Get an inside look at the new Optra portfolio, its composition, and its performance amidst economic fluctuations. We wrap up with an engaging tale about an extraordinarily talented dog, blending financial wisdom with light-hearted storytelling to keep you both informed and entertained. Support the show…

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Episode 364: Leverage, Gold ETFs And Early Retirement Considerations (Oh My!) And Portfolio Reviews As Of August 30, 2024 30:51

34 weeks ago30:51

30:51

In this episode we answer emails from Brian, JD and Andrew. We discuss using leverage in portfolios (again!), gold ETFs and early retirement considerations and withdrawal strategies. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Yours Truly on the Forget About Money Podcast: 🎲 Risk Parity: The Secret to a 5% Safe Withdrawal Rate! | Frank Vasquez 🏆 (youtube.com) Ben Felix Video On Leverage: Investing With Leverage (Borrowing to Invest, Leveraged ETFs) (youtube.com) Optimized Portfolios Website: Optimized Portfolio - Investing and Personal Finance ETF Database -- Gold ETFs: Gold ETF List (etfdb.com) PHYS Fund Article: Tax Information - Physical Gold Trust (sprott.com) Portfolio Charts Withdrawal Rates Calculator: Withdrawal Rates – Portfolio Charts Portfolio Charts Retirement Spending Calculator: Retirement Spending – Portfolio Charts Morningstar Report re Variable Withdrawal Strategies: Six Retirement Withdrawal Strategies that Stretch Savings | Morningstar Amusing Unedited AI-bot Summary: Ready to rethink your investment strategy? Uncover the secrets of leveraging your portfolio from insights gleaned from industry titans like Ray Dalio and practical advice for everyday investors. We promise you'll walk away with a new perspective on the benefits and risks of using leverage, tips on incorporating leveraged ETFs into your own portfolio, and a treasure trove of resources including the Optimize Portfolios site and an enlightening video by Ben Felix. This episode is packed with knowledge that can transform how you approach your investments. But that's not all—we're spicing up this financial discussion with a revisit to one of the most memorable moments in film history. Relive the iconic scene between James Bond and Goldfinger, dissecting the thrilling exchange and the unforgettable line, "No, Mr. Bond, I expect you to die." We'll break down Bond’s daring attitude against Goldfinger’s ruthless intent, highlighting why this scene is etched in cinematic lore. A blend of financial wisdom and pop culture nostalgia, this episode promises to both inform and entertain. Tune in and join the conversation! Support the show…

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Episode 363: Making Adjustments To An RPR Portfolio, Musings About Factor Investing And HECOMs, And A Semi-Rant About Ill-Advised IUL 34:27

35 weeks ago34:27

34:27

In this episode we answer emails from Phil, MyContactInfo, and Eric. We discuss implementing factor investing and making portfolio adjustments in a risk-parity style portfolio, HECOMs and other considerations about reverse mortgages and buffered products, the fundamental problems with IUL that need to be accounted for before using it, and just how rich you probably need to be to be using insurance products as investments. Hint: You are not that rich. Links: Swedroe Factor Investing Book: Your Complete Guide to Factor-Based Investing: The Way Smart Money Invests Today by Andrew L. Berkin | Goodreads Long View Podcast About HECOMs: Don Graves and Wade Pfau: How - The Long View - Apple Podcasts Andy Panko Cautionary Video About IUL: Beware of misleading Indexed Universal Life insurance ("IUL") illustrations (youtube.com) Andy Panko IUL Critique On Big Picture Retirement Podcast: Unmasking the IUL Sales Pitch with Andy Panko (bigpictureretirement.com) Private Placement Life Insurance: How Does Private Placement Life Insurance Work? - ValuePenguin Amusing Unedited AI-Bot Summary: Is your portfolio prepared for the next economic downturn? Join us on this episode of Risk Parity Radio as we tackle an intriguing email from Phil, a listener from Portugal contemplating a major portfolio overhaul. We dig deep into the nuances of factor investing, particularly momentum and profitability factors, and offer critical advice on the potential risks of reducing bond allocations in favor of equities. We emphasize the importance of leveraging financial analysis tools like Portfolio Charts and Portfolio Visualizer to make informed decisions, and stress the need for a balanced approach throughout both the accumulation and decumulation phases of investing. We also navigate the labyrinth of investment strategies and financial products, evaluating the pros and cons of dollar-cost averaging amidst market volatility, and scrutinize costly options like Home Equity Conversion Mortgages (HECMs) and Indexed Universal Life (IUL) insurance products. Highlighting the potential pitfalls of these profit-driven offerings, we advocate for well-diversified portfolios as the cornerstone of robust financial planning. Tune in to discover practical tips on managing taxable accounts, avoiding misleading insurance products, and achieving optimal portfolio performance, all while staying grounded in sound financial principles. Support the show…

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Episode 362: Considering International Stock Funds, DBMF Benchmarks, Reviewing a 70/20/10 Portfolio And More Trogdor! 34:12

36 weeks ago34:12

34:12

In this episode we answer emails from Robert, Jamie and Richard. We discuss transitioning away from a Boglehead Three Fund portfolio due to its obsolete nature, a query about the DBMF prospectus and an early retirement with a 70/30/10 risk-parity style portfolio in the face of some spurious Sonia-like objections. Links: Father McKenna Center Donation Page: Donate - Father McKenna Center Merriman Best-In-Class ETF List: Best-in-Class ETF Recommendations | Merriman Financial Education Foundation (paulmerriman.com) Morningstar Portfolio Analysis Of VTI: VTI – Portfolio – Vanguard Total Stock Market ETF | Morningstar VXUS: VXUS – Portfolio – Vanguard Total International Stock ETF | Morningstar AVDV: AVDV – Portfolio – Avantis International Small Cap Val ETF | Morningstar AVES: AVES – Portfolio – Avantis Emerging Markets Value ETF | Morningstar Early Retirement Now Spreadsheet Toolbox: An Updated Google Sheet DIY Withdrawal Rate Toolbox (SWR Series Part 28) - Early Retirement Now Amusing Unedited AI-bot Summary: What if your international and bond funds aren't providing the diversification you think they are? On this episode of Risk Parity Radio, we address Robert's inquiry about optimizing his family's portfolio during the accumulation phase. We'll dissect the limitations of total international funds when paired with a U.S. S&P 500 or total market fund, and why they may fail to deliver the diversification you seek. We'll also explore Robert's proactive strategy of reallocating bond investments into stock funds during market downturns and discuss the merits of increasing U.S. stock exposure while rethinking the necessity of international holdings. We'll further challenge the conventional wisdom of international versus domestic funds and introduce modern alternatives that can bring true diversification to your portfolio. Recommendations from the Merriman Foundation, such as AVDV and AVES, are highlighted for their potential to balance your investments by tilting towards small-cap and value stocks in international markets. Lastly, we dive deep into the complexities of fund disclosures and benchmarks, offering alternative methods to evaluate funds more effectively. Gain insights that will guide you toward a more strategic and diversified investment approach for long-term growth. Support the show…

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Episode 361: Leveraged ETFs vs Margin, Transitioning To A Golden Butterfly, Investing With A Spouse, And Portfolio Reviews As Of August 16, 2024 31:25

36 weeks ago31:25

31:25

In this episode we answer emails from Chris, Andrew and Jenzo. We discuss portfolio, forms of leverage in leveraged portfolios, transitioning to a Golden Butterfly portfolio, and working with your spouse productively on your finances. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Father McKenna Center: Home - Father McKenna Center Article re Margin vs. Leveraged ETFs: Margin Trading vs. Leveraged ETFs | Cumberland Advisors Optimized Portfolios: Optimized Portfolio - Investing and Personal Finance Leveraged ETFs Article: Double-Digit Numerics - Articles - The Big Myth about Leveraged ETFs (ddnum.com) Warren Buffett's Alpha Article: Full article: Buffett’s Alpha (tandfonline.com) Gottman -- "Eight Dates" Book: Eight Dates: Essential Conversations for a Lifetime of Love (gottman.com) Amusing Unedited AI-bot Summary: Ever wondered if using margin or leveraged ETFs is the smarter choice for your investment strategy? This week on Risk Parity Radio, we promise to shed light on this ongoing debate. As we kick off the episode, we liken our podcast to a dive bar of personal finance where humor enthusiasts and seasoned investors alike can find common ground. With a lively introduction, we announce the grand unveiling of our weekly portfolio reviews for eight sample portfolios available on our website. An email from Chris sets the stage for a deep dive into the nuances of leveraging investments using margin or box spreads, responsible leverage, and current rates, all while thanking our generous listeners for their support of the Father McKenna Center. Are high margin rates making you reconsider your investment strategy? We dissect this dilemma by exploring the current landscape and why leveraged ETFs might just be your best bet. With a focus on ETFs like NTSX and UPRO, we suggest additional resources such as Optimized Portfolios to help you navigate your options. Inspired by listener feedback, we also touch on the concept of optimal leverage, referencing studies like "Warren Buffett's Alpha," and discuss the importance of consistent investing strategies over market timing when building a risk-parity portfolio over the next five years. Ready for some good news? This has been an exciting week in the market, with gains across the board. From the S&P 500 to managed futures, everything is up, and our eight sample portfolios are reaping the benefits. We highlight the standout performances of newer and experimental portfolios like the Levered Golden Ratio and the Optra Portfolio. To wrap things up, Frank Vasquez delivers a spirited and humorous sign-off, reminding us to consult with personal advisors before making any financial decisions. Tune in for a rollercoaster of insights and laughs that you won't want to miss! Support the show…

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Episode 360: Help Viewing The Website, Bitcoin ETFs And Analyzing Some Portfolios In Transition 32:48

37 weeks ago32:48

32:48

In this episode we answer emails from Ned, Kyle and Willy. We discuss tools for the sight-impaired, building out from an accumulation portfolio, the new bitcoin ETFs, and what to do in a complex Coast FI situation involving both an invested portfolio and some raw land. Link: Father McKenna Center Donation Page -- Remember to mention "The Financial Quarterback match" in new donations: Donate - Father McKenna Center Amusing Unedited AI-bot Summary: Can a legally blind investor successfully navigate the complex world of DIY investing? Tune in as we uncover the inspiring story of Ned, who shares his personal journey and the accessibility tools that empower him to make informed investment decisions. Learn how he balances his focus on large and mid-cap growth stocks while exploring the potential benefits of adding small-cap value, long-term treasuries, and alternative assets like gold and managed futures to his portfolio. In another fascinating segment, we break down the power of ETFs for investing in digital assets such as Bitcoin and Ether, and how platforms like Fidelity and Schwab make it seamless. We then tackle a challenging financial scenario with Willy, who is on the brink of transitioning to Coast FI. Delve into strategies for evaluating his portfolio mix, the implications of selling rural recreational land, and the potential benefits of reallocating to more liquid investments. Discover practical tips and thoughtful analysis to help you make smarter investment choices and achieve financial independence. Support the show…

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Episode 359: Portfolio Analyzers, The Logo, The Website, Best In Class ETFs And Portfolio Reviews As Of August 9, 2024 37:44

37 weeks ago37:44

37:44

In this episode we answer emails from Frank, Michael and Aaron. We discuss four good portfolio analyzer tools, the hidden meanings in the Risk Parity Radio logo, the deficiencies of the website and where to find good international funds to use for portfolio construction. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Father McKenna Center Donation Page -- Remember to mention "The Financial Quarterback match" in new donations: Donate - Father McKenna Center Portfolio Visualizer Monte Carlo Simulator: Monte Carlo Simulation (portfoliovisualizer.com) Portfolio Charts Portfolio Matrix Tool: Portfolio Matrix – Portfolio Charts Early Retirement Now Toolbox: An Updated Google Sheet DIY Withdrawal Rate Toolbox (SWR Series Part 28) - Early Retirement Now Testfolio Calculator: testfol.io Geometric Golden Ratio Pentagon: Golden Ratio in Regular Pentagon (cut-the-knot.org) Misbehavior of Markets Book: The (Mis)Behavior of Markets by Benoît B. Mandelbrot | Goodreads More Than You Know Book: More Than You Know: Finding Financial Wisdom in Unconventional Places by Michael J. Mauboussin | Goodreads Merriman Best In Class ETF List: Best-in-Class ETF Recommendations | Merriman Financial Education Foundation (paulmerriman.com) Video Re Best In Class ETFs: Bootcamp #9 Best in Class ETF Update 2024 (youtube.com) DFA Mutual Fund List: Funds | Dimensional Truncated AI-bot Summary: Can you imagine transforming your financial journey in the same way you might find camaraderie in your favorite dive bar? Welcome to Risk Parity Radio! Listener Frank reaches out with gratitude and a request for the best tools to backtest portfolios and determine safe withdrawal rates. We also tip our hats to Frank's generous donation to the Father McKenna Center, underscoring our ongoing charity drive in collaboration with the Financial Quarterback podcast. Ever wondered which platforms provide the most reliable data for crafting your financial future? We break down some of the top tools in the industry, like Portfolio Visualizer, Portfolio Charts, and the Early Retirement Now toolbox, along with the new player, Testfolio. Along the way, we debunk myths around CAPE ratios and share a heartfelt story about our Risk Parity Radio logo, born out of the creativity sparked during the 2020 lockdown. From a cheerful Scottish greeting to a deep dive into international investing, this episode promises both humor and expertise. We tackle Aaron’s email about international ETFs, emphasizing the importance of non-overlapping funds for true diversification. Drawing from resources like the Merriman Foundation and Chris Pedersen's analyses, we guide you in selecting top-tier funds from DFA and Avantis. Support the show…

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Episode 358: AI Uncle Frank, An Accumulation O.P.T.R.A. Portfolio, Carry Strategies And Managed Futures 30:00

38 weeks ago30:00

30:00

In this episode we answer emails from Jared, Jon and Jimmy. We got the three Js! We discuss Jared's work to create AI Uncle Frank, his accumulation variation of the O.P.T.R.A. sample portfolio, carry strategies, whether to reinvest distributions and using multiple managed futures funds. Links: Father McKenna Center Donation Page (don't forget to include "The Financial Quarterback Match" in the comment/dedication box): Donate - Father McKenna Center Jared's Accumulation O.P.T.R.A. Portfolio: testfol.io Resolve Asset Management Video on Carry Strategies: Navigating Market Volatility Mastering Managed Futures and Carry Strategies (youtube.com) CCRV Fund: CCRV – iShares® Commodity Curve Carry Strat ETF – ETF Stock Quote | Morningstar ICITF Fund: ICITF – iPath® Optimized Currency Carry ETN – ETF Stock Quote | Morningstar Video on QIS Fund: Simplify QIS Fund Deep Dive (youtube.com) Amusing AI-Bot Generated Summary: Ever wondered if leveraging your investment portfolio could lead to better returns? Discover Jared's transformative journey from a mechanical engineer to a machine learning enthusiast and the creator of a Risk Parity Radio chatbot! Jared shares his intricate process of optimizing a traditional 50-50 stock allocation into a more diversified and leveraged strategy. We’ll dissect the potential benefits and pitfalls of his approach, with a spotlight on managing leverage, mitigating drawdowns, and enhancing overall risk management. We also extend our heartfelt thanks for your generous contributions to the Father McKenna Center. Dive into the exciting realm of AI as we discuss how it's revolutionizing podcast transcriptions and even mimicking the host's voice. Plus, we explore translating podcast episodes into a book with the help of AI. Don't miss our deep dive into listener questions about leveraging portfolios for accumulation, the intricacies of handling dividends and distributions, and an examination of managed futures funds like DBMF and KMLM. Whether you’re in the accumulation or decumulation phase, we’ve got actionable strategies to help you stay on track for long-term success. Support the show…

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Episode 357: Market Volatility, Basic Accumulation, A Great Gold Debate, and Portfolio Reviews As Of August 2, 2024 45:00

38 weeks ago45:00

45:00

In this episode we answer emails from Justin, Joe and Jenzo. We discuss the legacy of Risk Parity Chronicles, basic accumulation principles, and what we can learn from a debate on gold between Ben Felix and Tyler of Portfolio Charts. And talk about our charitable promotion for the Father McKenna Center. And then we go through our weekly portfolio reviews of all eight of the sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Father McKenna Center Donation Page -- Remember to mention "The Financial Quarterback match" in new donations: Donate - Father McKenna Center Financial Quarterback Podcast With Yours Truly: Breaking Down the Holy Grail of Diversified Portfolios w/ Frank Vasquez Jr. (Risk Parity Radio) (youtube.com) Justin's Station Wagon Portfolio: The Station Wagon Portfolio - Google Docs Jenzo's Link to the Great Gold Debate: Ben & Tyler showdown - Google Docs AI-generated summary (use at your own risk): Can diversification safeguard your portfolio against turbulent market conditions? Join us at Risk Parity Radio, the podcast with a dive bar vibe where humor meets investment wisdom. This episode begins with a performance review of our eight sample portfolios, demonstrating how diversification has been a protective shield amid market volatility. Plus, we're excited to feature our charitable promotion for the Father McKenna Center, urging listeners to donate and take advantage of our matching offer. We welcome back Justin, the insightful mind behind the now-dormant "Risk Parody Chronicles," for a thought-provoking discussion on the value of freely sharing financial knowledge. We revisit the Station Wagon Portfolio and emphasize the significance of adhering to a well-devised investment strategy. We also respond to Joe's questions about the accumulation phase, advocating for a combination of low-cost index funds, such as S&P 500 and small-cap value funds, and stressing the importance of consistency over the allure of recent top performers. Curious about the timeless debate on gold's role in modern portfolios? We dissect a lively debate between Tyler and Ben Felix, scrutinizing the historical and contemporary merits of holding gold. Alongside, we provide a detailed market analysis, highlighting the recent rise in gold and long-term treasury bonds, and review how different portfolios like the All Seasons and Golden Butterfly have weathered the storm. This episode is a reminder to employ critical thinking and adopt a comprehensive approach when evaluating investment strategies and market trends. Support the show…

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Episode 356: Exploring Preferred Shares Funds, The Importance Of Rebalancing, How The Sausages Are Made And Risk Parity Chronicles 30:48

39 weeks ago30:48

30:48

In this episode we answer emails from Ed, Cy, Visitor 5002, and Lucas. We discuss preferred shares funds, rebalancing and ranting, how the podcast sausage is made and Risk Parity Chronicles. And the charitable matching opportunity with the Financial Quarterback for the benefit of the Father McKenna Center. Links: Father McKenna Center Donation Page (don't forget to include "The Financial Quarterback Match" in the comment/dedication box): Donate - Father McKenna Center Financial Quarterback Podcast With Yours Truly: Breaking Down the Holy Grail of Diversified Portfolios w/ Frank Vasquez Jr. (Risk Parity Radio) (youtube.com) PFFV On Morningstar: PFFV – Global X Variable Rate Preferred ETF – ETF Stock Quote | Morningstar Risk Parity Chronicles On YouTube: Risk Parity Chronicles - YouTube Golden Butterfly Portfolio In Depth: Golden Butterfly Portfolio – Portfolio Charts Unedited Artificial Intelligence Description: Ever wondered how to double the impact of your charitable donations while navigating the world of preferred shares funds? On this episode of Risk Parity Radio, we kick things off with something special—a segment dedicated to answering listener emails and revealing our latest charitable promotion for the Father McKenna Center. Learn about an incredible matching donation opportunity connected to my appearance on the Financial Quarterback podcast, and hear about a clever donation strategy using donor-advised funds suggested by our listener, David. Thinking about adding preferred shares to your portfolio but not sure where to start? Listener Ed's email prompts a deep dive into the mechanics and benefits of preferred shares funds. Discover why these funds are appealing, particularly for those in high tax brackets, as we compare ETFs such as PFF, PGX, PFXF, and FPE. I'll share my current top picks, PFFV and PFFD, which boast lower expense ratios and higher dividend payouts, and discuss the tax advantages of qualified dividends. Whether you're looking to enhance your yield or add stability to your investments, this segment is packed with actionable insights. Finally, we turn our focus to the critical practice of portfolio rebalancing, illustrating how this strategy can help you buy low and sell high. We'll share recent examples to highlight its effectiveness, all while adding a bit of entertainment with a playful nod to "Willy Wonka & the Chocolate Factory." Don't forget to engage with us by subscribing, giving ratings, and leaving reviews on your favorite podcast platforms. Tune in for a perfect blend of insightful financial advice, engaging listener interactions, and tips on making a difference through thoughtful charitable contributions. Support the show…

Risk Parity Radio

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Episode 355: Slapping Down Sensationalism, Macro-Economic Environments And Correlation Principles, And Portfolio Reviews As Of July 28, 2024 40:37

39 weeks ago40:37

40:37

In this episode we answer questions from Nonamed, Ronald, and Jose. We discuss how sensational financial media works and why you should ignore it, being thankful for our listeners and how correlations work and relate to macro-economic environments in the context of the Holy Grail principle. And we discuss our charitable match outreach for the Father McKenna Center. And then we go through our weekly portfolio reviews of all eight of the sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Father McKenna Center Donation Page -- Remember to mention "The Financial Quarterback match" in new donations: Donate - Father McKenna Center Risk Parity Radio RSS Feed Page For Word Searching The Podcast: Risk Parity Radio RSS Feed (buzzsprout.com) UNC Paper (not Duke!) Re Treasury Bond Correlations In Recessions (see Page 53 for Chart): ssrn_id4768684_code533828.pdf (elsevier-ssrn-document-store-prod.s3.amazonaws.com) Ray Dalio Explains The Holy Grail Principle: Ray Dalio breaks down his "Holy Grail" (youtube.com) Bridgewater Paper With Basic Quadrant Model Example (see Page 8): Bridgewater Paper 2009.12 AW Info Pack.doc (granicus.com) Support the show…

Risk Parity Radio

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Episode 354: Managed Futures, Property & Casualty Insurance, Gambling By The Brazos And Portfolio Visualizer 42:27

40 weeks ago42:27

42:27

In this episode we answer emails from Steve, Grant, and Alexi (a/k/a "the Dude"). We discuss investing in managed futures and property and casualty insurance companies, rebalancing mechanisms and fitting those into a portfolio, Grant's various gambling problems with leveraged funds and assorted Metaverse doom-scrolling, and the recent annoying changes with Portfolio Visualizer. And our charitable push for our charity, the Father McKenna Center --get the match! Links: Father McKenna Center Donation Page (don't forget to include "The Financial Quarterback Match" in the comment/dedication box): Donate - Father McKenna Center SocGen Managed Futures CTA And Trend Indices: Prime Services (Newedge) Indices (societegenerale.com) Kitces Rebalancing Methods Article: Optimal Rebalancing – Time Horizons Vs Tolerance Bands (kitces.com) New Testfol Backtester With OPTRA Example: testfol.io Support the show…

Risk Parity Radio

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Episode 353: Our Annual Rebalancing Episode And Portfolio Reviews As Of July 19, 2024 49:40

40 weeks ago49:40

49:40

In this final episode of Season Four we discuss the concepts of rebalancing and reallocating in all their glory and go through the planned annual rebalancings for four of the sample portfolios in excruciating detail. We also discuss all of the assets and allocations in the Risk Parity Ultimate portfolio and which ones we actually own in real life. And we go through our weekly portfolio reviews of all eight of the sample portfolios you can find at Portfolios | Risk Parity Radio . Additional link: Father McKenna Center Donation Page -- Remember to mention "The Financial Quarterback match" in new donations: Donate - Father McKenna Center Support the show…

Risk Parity Radio

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Episode 352: Practical Advice On Investing In Gold, The Varying Value Of Education And Getting Your Generosity Matched 37:58

41 weeks ago37:58

37:58

In this episode we answer emails from Judy, Steve and MyContactInfo. We discuss a recent offer by The Financial Quarterback podcast to match donations the the Father McKenna Center (yay!), why you should buy gold ETFs and NOT physical gold, Cartman and Kyle, and the varying value of education depending on the individual. Links: Father McKenna Center Donation Page -- Remember to mention "The Financial Quarterback match" in new donations: Donate - Father McKenna Center ETF Database -- Gold ETFs: Gold ETF List (etfdb.com) Listener John's Gold ETF link: 9 low cost physical Gold ETFs for portfolio parity - SmartMoneyToolbox GLD FAQs: FAQs > USA > SPDR Gold Shares (GLD). Bringing the gold market to investors Support the show…

Risk Parity Radio

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Episode 351: The GOVT Fund, Retirement Resources, The Socratic Method And Portfolio Reviews As Of July 12, 2024 41:32

41 weeks ago41:32

41:32

In this episode we answer emails from Brian, Wendy, and Midas. We discuss the bond fund GOVT and how it fits or doesn't fit in portfolio construction, some basics about IRA conversions and retirement resources (podcasts and groups), and follow up on Episode 340 with a discussion on our pedagogical approach, the pluses and minuses of the Socratic Method and tilting at logical fallacies. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Morningstar Analysis of GOVT: GOVT – Portfolio – iShares US Treasury Bond ETF | Morningstar Big Picture Retirement Podcast About IRA Conversions: When Roth IRA Conversions Go Too Far (bigpictureretirement.com) Andy Panko YouTube Topical Playists: Retirement Planning Education - YouTube Link to Retirement Planning Education Facebook Group (and other materials): Retirement Planning Education Facebook group Retirement Answer Man Podcast: A Top Retirement Podcast, with over 8 Million Downloads — The Retirement Answer Man® (rogerwhitney.com) Retirement & IRA Show: Podcasts Archives - The Retirement and IRA Show Trogdor (Just Because): Trogdor Song (youtube.com) Support the show…

Risk Parity Radio

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Episode 350: Skew And Managed Futures, Family Trucksters And Uncle Frank Says "Do Both" 36:22

42 weeks ago36:22

36:22

In this episode we answer emails from Jeffrey, Justin and Matt. We discuss the concept of "skew" generally and in the context of investing in managed futures, a "station wagon" portfolio similar in macro-allocations to the new OPTRA sample portfolio, and the age old question of whether to pay down debt or invest. (Uncle Frank says "Do Both.") Links: Basic Article About Skew: Right Skewed vs. Left Skewed Distribution (investopedia.com) MFUT Fund Fact Page: Cambria Chesapeake Pure Trend ETF (MFUT) | Cambria Funds Justin's Station Wagon Portfolio: The Station Wagon Portfolio - Google Docs Risk Parity Chronicles Video on Asset Swaps: How to Do an Asset Swap (youtube.com) Arch Portfolio Backtester: Portfolio Backtest — Arch Indices Portfolio Analyzer Support the show…

Risk Parity Radio

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Episode 349: Introducing O.P.T.R.A., a "Trogdor Portfolio" 33:50

43 weeks ago33:50

33:50

In this episode we introduce a new sample experimental portfolio, the O.P.T.R.A., which is now also featured on the Portfolios Page at the website . It is a mixture of the latest and greatest ideas in portfolio construction. Links: O.P.T.R.A. backtest: testfol.io O.P.T.R.A. correlation analysis: testfol.io Morningstar UPRO: UPRO – Portfolio – ProShares UltraPro S&P500 | Morningstar Morningstar AVGV: AVGV – Portfolio – Avantis All Equity Markets Value ETF | Morningstar Morningstar GOVZ: GOVZ – Portfolio – iShares 25+ Year Treasury STRIPS Bd ETF | Morningstar Morningstar GLDM: GLDM – Portfolio – SPDR® Gold MiniShares | Morningstar Morningstar DBMF: DBMF – iMGP DBi Managed Futures Strategy ETF – ETF Stock Quote | Morningstar Support the show…

Risk Parity Radio

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Episode 348: Portfolios For 11-Year Olds, Basic Return Stacking, And A Fama-French Kerfuffle 26:42

44 weeks ago26:42

26:42

In this episode we answer emails from Marco Esquandolas, Adrian and Paulo. We discuss portfolio advice for a precocious 11-year old, a simple return-stacked portfolio a la Corey Hoffstein and the priority of the Simplicity Principle, and some recent articles about the Fama-French database. Links: Corey Hoffstein Talking About His Return-Stacked Portfolio: Show Us Your Portfolio: Corey Hoffstein (youtube.com) Paulo's Bloomberg Article: A Fight Over Factor Investing Tests a Pillar of Modern Finance - Bloomberg Summary Critique of Fama-French Database Issues: ftalphaville.ft.com/content/2e87e7f9-c2ad-4dcb-afc3-2a0f8d0a6ca3 Fama-French Response Paper: Production of U.S. Rm-Rf, SMB, and HML in the Fama-French Data Library by Eugene F. Fama, Kenneth R. French :: SSRN Support the show…

Risk Parity Radio

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Episode 347: Levered Small Caps, Cash Management Issues, Comparing Bond Fund Durations And Portfolio Reviews As Of June 21, 2024 29:18

44 weeks ago29:18

29:18

In this episode we answer emails from Steven, Kaleb and Reynolds. We discuss a levered small cap fund (SAA), short-term cash management and related ETFs, and how to compare and use bond funds of differing durations. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: ETF Database -- Ultra Short Term Bond Funds: The Web's Best ETF Screener | ETF Database (etfdb.com) Morningstar Article on BOXX: BOXX ETF Promises T-Bill Returns Without Taxable Income | Morningstar Morningstar Analysis of IEF: IEF – Portfolio – iShares 7-10 Year Treasury Bond ETF | Morningstar Kitces Re-balancing Article: Optimal Rebalancing – Time Horizons Vs Tolerance Bands (kitces.com) Support the show…

Risk Parity Radio

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Episode 346: Musings On Luck, Escaping Empower, Anchorage, And IUL Perpetual Motion Machines 29:25

45 weeks ago29:25

29:25

In this episode we answer emails from Mark, Casey, and Kyle. We discuss transitioning from a drecky complicated Personal Capital/Empower portfolio to a simple risk-parity style portfolio, the song "Anchorage", and Sam Kinison's take on an IUL policy. Links: Father McKenna Center Donation Page: Donate - Father McKenna Center Mark's Portfolio Analysis: Backtest Portfolio Asset Class Allocation (portfoliovisualizer.com) Testfol.io Analysis of Mark's Portfolio: testfol.io Larry Kennedy Album on Spotify: Everybody Knows - Album by Larry Kennedy | Spotify Andy Panko's Insurance Playlist: Insurance - YouTube Support the show…

Risk Parity Radio

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Episode 345: Concerns About Indexing, Larry Swedroe's Portfolio, ROAD HOUSE, And Portfolio Reviews As Of June 7, 2024 34:10

46 weeks ago34:10

34:10

In this episode we answer emails from David, Eric from Cincy, and Pete. We discuss Mike Green's recent commentary about index fund trends and whether its a problem, ROAD HOUSE, children, and Larry Swedroe's esoteric personal portfolio. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . Additional links: Mike Green Interview: Michael Green: Market Efficiency Is Not The Question | Rational Reminder 302 (youtube.com) Larry Swedroe Article #1: Addressing Issues With High U.S. Equity Valuations (kitces.com) Larry Swedroe Article #2: In The Long Run, Stocks Outperform Bonds, Or Do They? (kitces.com) Larry Swedroe's Personal Portfolio: Show Us of Your Portfolio II: Larry Swedroe on Alternatives and Interval Funds (youtube.com) Support the show…

Risk Parity Radio

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Episode 344: More Lawyer Stuff And Some Ins And Outs Of ETFs, Extended Duration Treasuries And Gold Funds 32:26

47 weeks ago32:26