Risk Parity Radio Episode 331: Dollar Stories, The Rule Of 55, The Nicest Guy of FI, Basic Portfolio Construction Principles, And Reviews As Of April 5, 2024
6 snips
Apr 7, 2024 Explore the Rule of 55 for 401(k) withdrawals, the US dollar's global dominance, and the basics of constructing portfolios with high safe withdrawal rates. Delve into quirky financial independence stories and insights, along with navigating the unpredictability of gold investments.
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Dollar Dominance
- The US dollar remains dominant and isn't likely to change soon.
- Narratives about its demise are attractive but untrue, driven by what Kahneman and Tversky called system one thinking.
Narrative Fallacies
- The "apocalypse narrative" and "Golden Era fallacy" are common, attractive, but often misleading.
- These narratives appeal to people's desire for dramatic stories, even if they contradict reality.
Rule of 55
- The Rule of 55 allows penalty-free 401k withdrawals after age 55 under certain conditions.
- Check your plan details, as implementation is optional; don't rely solely on HR.