The Importance of Intermediate Term Savings

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The author is buying his second house, which will close in July. And then when it's time to make that purchase, he does sell the portfolio down and take the money out for that down payment on a house. Historically, their drawdowns, in terms of time, have only been a max of three to four years. A standard kind of sixty-fourty portfolio or stock bond portfolio have been over a decade.

In this episode we answer emails from Drew, Carlos and Eric. We discuss the UPAR and RPAR risk parity ETFs and their construction, rant a bit about TIPS, discuss attractive narratives about de-dollarization in the context of cognitive biases (the possibility effect and ignoring base rates) and how our adult children use a Golden Ratio-style portfolio to save for intermediate goals.

Links:

Father McKenna Center donation page: Donate - Father McKenna Center

UPAR webpage: UPAR Risk Parity ETF (rparetf.com)

Michael Kitces interview: Michael Kitces: How Higher Yields Affect Asset Allocation and Retirement Planning | The Long View (simplecast.com)

De-dollarization article: De-dollarization Has Begun. | AIER

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