Episode 430: Celebrating Your Generosity, Accumulation Management, A Transition Question And Portfolio Reviews As Of June 6, 2025
Jun 7, 2025
Explore the power of generosity as the hosts celebrate an astounding $22,000 raised for the Father McKenna Center, including a single $15,000 donation. This heartfelt act underscores the community's commitment to aiding the homeless. Delve into savvy investment strategies for college savings and tax-efficient portfolio management, especially for those nearing retirement. The episode includes insightful portfolio reviews, focusing on rebalancing and strategic asset allocation. Tune in for tips on engaging with charitable causes while enhancing your financial game.
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question_answer ANECDOTE
Power of Listener Generosity
The Father McKenna Center benefited from an anonymous $15,000 donation via a Vanguard donor-advised fund.
This generous gift sparked over $22,000 raised in two weeks, far exceeding expectations and inspiring the staff.
volunteer_activism ADVICE
Rebalancing in Accumulation Phase
During accumulation, contribute new money to the asset that's behind to balance your portfolio.
Dollar cost averaging into assets can provide a milder Shannon's Demon effect, still benefiting your returns.
volunteer_activism ADVICE
Tax Efficient Intermediate Portfolio
For an intermediate-term taxable portfolio, avoid frequent rebalancing and only add to assets when they're down.
Consider BOXX for short-term bonds if in a high tax bracket; gold ETFs like PHYS have trade-offs in performance and tax treatment.
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In this episode we answer emails from I Have No Name, Deep and Joel. We discuss the extraordinary generosity of our listeners and how it uplifts the workers in the FMC trenches, rebalancing in accumulation, tax considerations for an intermediate term portfolio, saving for college, and what to do with new money just a few years from retirement.
And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio.
To donate to the Top of the T-Shirt campaign and double your fun, please visit the Father McKenna Center donation page and note "Risk Parity Radio Match" when making your contribution.
Charitable giving and strategic investing merge powerfully in this week's episode as we celebrate remarkable fundraising success and tackle sophisticated portfolio questions. What began as a modest matching campaign for the Father McKenna Center has exploded into something extraordinary—over $22,000 raised in just two weeks, including a single $15,000 anonymous donation that left me nearly speechless. The genuine impact of this community's generosity on homeless and hungry individuals in DC cannot be overstated.
Diving into listener questions, we explore the nuances of portfolio construction across different life stages. For physicians in their accumulation phase, we distinguish between large cap growth and large cap value when paired with small cap value, revealing how Shannon's Demon effect operates during dollar-cost averaging. The discussion expands into tax-efficient risk parity strategies for high-income earners, offering practical guidance on minimizing taxable events while maximizing returns.
Parents of newborns will appreciate our deep dive into college savings strategies, including the optimal 50-50 large cap growth and small cap value approach that investment educator Paul Merriman and I both recommend. I share tactical insights on 529 plans versus brokerage accounts, suggesting that funding 529 plans earlier in a child's life maximizes tax advantages before transitioning to additional savings vehicles.
For those approaching retirement, we address the critical transition from accumulation to decumulation portfolios, emphasizing that your financial independence number—not market predictions—should drive allocation decisions. The episode concludes with our weekly review of eight sample portfolios, highlighting performance across conservative, balanced, and experimental approaches.
Follow the Father McKenna Center on social media to witness the direct impact of your donations, and consider contributing to our ongoing "Top of the T-shirt" campaign through July. Your support transforms lives while you transform your investment approach.
Risk Parity Radio