How to Build a Portfolio for Any Purpose

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Three principles help us come up with a rational process for constructing and evaluating portfolios. If you only focused on one of those three principles, you probably aren't getting the best construction that you could get. The purpose is not to have the absolute simplest portfolio you can have, but to have a simple portfolio that yields a high safe withdrawal rate.

In this episode we answer emails from Kevin, Philip and Brown. We discuss (and thank) our generous listeners, our three principles -- Simplicity, Macro-allocation and Holy Grail -- and why they need to work together, using conservative portfolios for accumulation, investing in international funds in a sensible manner to maximize diversification and international currency risks, investing in utilities funds (listen also Episode 27) and property & casualty insurance companies. Whew!

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:

Father McKenna Center Main Donation Page: Donate - Father McKenna Center

Walk4McKenna: Walk4McKenna - Father McKenna Center

Holy Grail Principle Video: Ray Dalio breaks down his "Holy Grail" - YouTube

Portfolio Visualizer Backtest of Utilities vs. REITs vs. P&C Insurance: Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

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