Using Short-Term Buckets in Your Portfolio

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If you have a good portfolio to start with with a high safe withdrawal rate, I don't think your management techniques need to be any more complicated than that. The most aggressive short-term bucket would be something like 1 year of cash, 4 or 5% in your portfolio. Paul Merriman uses the once every year idea: Every year he and his wife take about 5% of their portfolio off each year for extravagances such as going on around the world cruise. But again, do not confuse management techniques with portfolio construction techniques.

In this episode we answer emails from Kyle, Esek and Erin. We discuss 529 plans, what is "enough" in terms of this podcast, and THEN the meta approaches to retirement planning and the importance of distinguishing portfolio construction and allocation strategies from portfolio management techniques, including a tour on the Good Ship Lollipop with the Outlaw Josey Wales. Errata: I said "Bernstein assumptions" when I meant "Bengen assumptions."

And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio.

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