Tax-aware placement of alternatives

In this episode we answer emails from Bee, Brian, and Derek.  We discuss shifting from pure equities toward a Golden Ratio allocation at 60% of the way to financial independence, using 401(k) BrokerageLink to add small cap value, and replacing monthly performance screenshots with better backtesting tools. Along the way, we talk donor-advised funds, advisor incentives, and why most financial advisory practices run on fear because its the most profitable business model.

Links:

Portfolio Charts Article:  Minimize Your Miss – Portfolio Charts

Sonia Parker on Crystal Balls:  Crystal ball gazing, how to use a Crystal Ball ~ How to Scry with a Crystal Ball ~ by Sonia Parker

Jim Sandidge Chaos Paper:  RMJ081-ChaosAndRetirementSecurity.pdf

Breathless Unedited AI-Bot Summary:

Tired of being told to fear the market, fear retirement, and fear doing it yourself? We dig into three real listener scenarios to show how clarity, incentives, and modern tools beat sales scripts every time. First, we sit with a 41-year-old investor who’s 60% to a FIRE number and wrestling with whether to add risk-parity elements now or stick with 100% equities a bit longer. We break down how a gradual shift toward a Golden Ratio–style mix can reduce volatility without forcing a hard “all-at-once” pivot, and why matching your allocation to your timeline, taxes, and temperament matters more than waxing theoretical about the perfect moment.

Next, we explore the power of Fidelity’s BrokerageLink and the case for a structural small cap value tilt. If costs are minimal, opening the 401(k) architecture unlocks better ETFs and truer diversification. A large growth and small value balance can set you up for meaningful rebalancing, while keeping income-heavy assets in tax-advantaged accounts avoids unnecessary drag. We also spotlight donor-advised funds as a practical way to give appreciated shares, lower taxes, and simplify charitable plans—especially helpful during high-income years or advisor breakups.

Finally, we question the industry’s incentive structure and the fear-based marketing behind complex portfolios, annuity pitches, and “risk profiles” designed to sell products. Instead of monthly performance screenshots that can mislead when withdrawal rates vary, we point you to TestFolio and Portfolio Visualizer to run clean, apples-to-apples comparisons. Five years of live results won’t settle lifetime decisions; full cycles and solid process will. If you want a portfolio that’s low-cost, transparent, and built to last—without crystal balls or steak-dinner seminars—this conversation lays out the path. If this helped you think clearer about your allocation, subscribe, leave a review, and share it with a friend who’s ready to keep more of their own returns.

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