Episode 472: A Field Day In New Jersey, Obviating Late Accumulation Risks, And Portfolio Reviews As Of December 12, 2025

Dec 14, 2025

Listeners get expert advice on maintaining liquidity over rushing to pay off mortgages in early retirement. The pitfalls of inadequate 403(b) options are tackled, with tips for improvement. A spotlight on efficient investment strategies reveals why ETFs may outperform traditional mutual funds. Tax-smart asset swaps and thoughtful withdrawal strategies are discussed to enhance portfolio management. Plus, a review of performance across various sample portfolios showcases effective wealth-building paths.

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ANECDOTE

Listener Case: A Detailed Retirement Snapshot

Anonymous from New Jersey detailed accounts across TIAA and Vanguard and their plan to retire in five years.
They requested guidance on mortgages, 403(b) menus, tracking, trading, asset location, and withdrawals.

ADVICE

Prioritize Liquidity Over Early Mortgage Payoff

Take a mortgage and keep liquidity when you first retire instead of paying the house off immediately.
Preserve cash to handle messy early-retirement expenses and pay down the mortgage later if desired.

ADVICE

Push For Better 403(b) Options, But Have Backup Plans

Complain or inquire about poor 403(b) fund menus; there is little downside to trying to improve them.
Realize plan changes are unlikely for one person and consider planning to move the 403(b) to an IRA after leaving the employer.

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In this episode we answer emails from Anonymous from New Jersey, James, and Brad. We answer a donor’s six-part retirement plan, from mortgages and liquidity to 403(b) constraints, ETF trading, asset location, asset swaps, and tax‑savvy withdrawals. Then we discuss the risks of staying in an accumulation portfolio for too long and the options for obviating a crash before transitioning.

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

Additional Links:

Father McKenna Center Donation Page: Donate - Father McKenna Center

How To Do An Asset Swap Video from Risk Parity Chronicles: How to Do an Asset Swap

Tax Planning Book: Amazon.com: Tax Planning To and Through Early Retirement: 9798999841599: Garrett, Cody, Mullaney, Sean: Books

Breathless AI-Bot Summary:

Ever wonder whether paying down a mortgage before retirement is actually the safest move? We make the counterintuitive case for liquidity first: keep cash flexible during the messy early retirement years, when housing changes, college timelines, and new expenses collide. With a real listener case study, we show how a mortgage can be a tool, not a trap—and why you can always accelerate later once the dust settles.

From there we dig into a pain point for many educators and nonprofit pros: weak 403(b) lineups. We break down why insurance-driven menus lag, how to advocate for better providers and funds, and when it makes sense to roll to an IRA for full control. You’ll also learn how to keep tracking simple, why monthly check‑ins beat daily dashboards, and how consolidating at a service‑oriented custodian streamlines everything. On execution, we explain why ETFs beat mutual funds for rebalancing speed and precision, plus how to convert Vanguard mutual funds to ETFs without tax surprises.

Taxes and withdrawals get the spotlight too. We clarify asset location—shelter ordinary income, let capital appreciation work in brokerage and Roth—and outline “asset swaps” that let you sell what’s up while managing tax impact. For those still accumulating, we talk strategy for a smoother glide into a risk parity portfolio to reduce sequence risk, and the trade-offs between earlier protection and maximum growth. We wrap with a market scoreboard across stocks, bonds, gold, REITs, commodities, preferreds, and managed futures, and report on sample portfolios including Golden Butterfly, Golden Ratio, Ultimate, and leveraged variants.

If you value actionable, no-nonsense guidance for DIY investors, you’ll find ideas you can use right away—whether you’re five years from retirement or still building your base. Subscribe, leave a review, and share this with a friend who’s wrestling with 403(b) choices or planning a tax-smart withdrawal strategy.

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