How to Save Money for Intermediate Term Purchases

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My adult children are saving money for intermediate term purchases like a down payment on a house. When our eldest started doing this, short-term interest rates were very low. So he's got an ordinary brokerage account and whenever he has extra money to put into it,. He simply invests in whatever is low in terms of allocations.

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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