The Importance of Leverage in Retirement Planning

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There's lots of expectation, at least from the guests that I've spoken to about how things could get worse still. And so would this be a bad time to get into a leverage strategy? Would it be a badTime if someone's fearful that the market would go down more? Yeah, so let's maybe walk through two or three examples here. If you're a 100% equity investor and you want to replace that with wisdom tree or pimp goes products that are going to give you the same amount of equity and then layer on some bonds, that might not be a great idea. On the other hand, if you free up capital in your portfolio to layer in something like managed futures

Rebecca Hotsko chats with Corey Hoffstein, and together they discuss the concept of return stacking, its mechanics, leverage determination, fund selection, and a whole lot more!

Corey Hoffstein is the co-founder and Chief Investment Officer at Newfound Research, which is a quantitative investment and research firm managing strategies that implement Return Stacking concepts.

IN THIS EPISODE, YOU’LL LEARN:

00:00 - Intro.

06:08 - The different types of funds that are available to investors to implement return stacking.

06:19 - What return stacking is and how this strategy works?

10:36 - The different ways this strategy can be implemented and the portfolio solutions it provides.

22:31 - How to decide how much leverage to take, and how much return stacking strategies should make up of the total portfolio allocation?

40:03 - The factors that contributed to the poor performance of certain return stacking ETFs since 2021.

42:55 - The common mistakes investors make when implementing this strategy.

46:01- What factors impact the effectiveness of this strategy?

52:49 - How to mitigate risk when this strategy breaks down?

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

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Check out: Newfound Research.
Related Episode: Listen to MI260: Top Stock Picks 2023 w/ Logan Kane, or watch the video.

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