Episode 428: A Cornucopia Of Listener Generosity, Intermediate Term Portfolios, Resources And Portfolio Reviews As Of May 30, 2025

Jun 1, 2025

Listeners shower the hosts with gratitude, sparking a celebration of community spirit. They explore using risk parity portfolios for smart intermediate-term savings, with humorous insights on tax efficiency. The conversation dives into navigating taxable investments, and retirement finance takes center stage as they discuss decumulation strategies. The hosts also analyze portfolio performances as of May 2025, sharing metrics from major funds and inviting audience feedback on strategies. It's a blend of finance, generosity, and camaraderie!

Ask episode

AI Snips

Chapters

Books

Transcript

Episode notes

ANECDOTE

Son’s Use of Risk Parity Portfolio

Frank Vasquez's eldest son uses a risk parity portfolio for his intermediate term savings.
This example illustrates practical usage for achieving financial goals without extreme risk.

ADVICE

Risk Parity for Intermediate Savings

Use risk parity style portfolios for intermediate term savings to balance growth and risk.
These portfolios have short drawdowns, providing some growth without long-term major losses.

ADVICE

Tax-Efficient Rebalancing Strategies

Rebalance taxable portfolios mainly by directing new contributions to underperformers.
Use tax loss harvesting strategically to offset gains and improve tax efficiency.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

In this episode we answer emails from Anonymous, Tim, Mark and Luc. We celebrate the overwhelming generosity of our listeners and discuss using risk parity style portfolios for intermediate savings, heavy metal, tax efficient portfolio management, and some investing and retirement resources.

And THEN we our go through our weekly and monthly 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.

Additional Links:

Father McKenna Center Donation Page: Donate - Father McKenna Center

FIRE Takes Podcast Page: FIRE Takes Podcast

Michael Kitces Page and Resources: Kitces.com - Advancing Knowledge in Financial Planning

Andy Panko Resources: FREE Retirement Planning Education

Cody Garrett Page and Resources: Meet Cody - Measure Twice Financial

Sean Mullaney Page and Resources: The FI Tax Guy – The Tax Efficient Path to Financial Independence

Wade Pfau Book: Retirement Planning Guidebook: Navigating the Important Decisions for Retirement Success (The Retirement Researcher Guide Series): Pfau, Wade: 9781945640155: Amazon.com: Books

Ashvin Chhabra Book: Amazon.com: The Aspirational Investor: Taming the Markets to Achieve Your Life's Goals eBook : Chhabra, Ashvin B.: Kindle Store

AQR and Antti Ilmanen: AQR Principal Antti Ilmanen Authors New Book on Investing in a Low-Return Environment

Breathless Unedited AI-Bot Summary:

Have you ever wondered what to do with money that's not for emergencies but not quite for retirement either? Today we tackle the often-overlooked middle ground of intermediate-term savings and reveal why risk parity strategies offer a powerful solution for these "in-between" financial goals.

Most financial advice focuses heavily on either emergency funds or retirement accounts, leaving a significant gap in guidance for money you're saving for goals 3-10 years away. Whether you're planning for a home down payment, vehicle purchase, or building a Roth conversion ladder, the traditional advice to simply park this money in savings accounts is leaving significant opportunity on the table. We explore how portfolios like the Golden Butterfly and Golden Ratio can provide meaningful growth while keeping drawdowns manageable, typically recovering within 3-4 years at most.

Beyond just investment selection, we dive into the tax efficiency of managing these portfolios in taxable accounts. Unlike high-yield savings accounts that generate ordinary income taxed at your highest marginal rate, properly managed risk parity portfolios create opportunities for tax-loss harvesting and strategic rebalancing. We explain how directing new contributions to underperforming assets eliminates the need for selling investments to rebalance, substantially reducing your tax burden while maintaining your desired allocation.

For younger investors, managing an intermediate-term risk parity portfolio serves anoth

Support the show