Episode 476: Come On Up To The House With Our Annual Portfolio Reviews For The Very Good Year Of 2025

Jan 4, 2026

This discussion dives into annual portfolio reviews, examining eight sample portfolios against commercial options. It reveals the surprising truth that many retirees struggle with underspending due to identity and fear. Notably, 2025 was a standout year for gold and bonds, with innovative strategies like the Golden Butterfly and Golden Ratio outpacing traditional methods. The conversation also highlights the risks of aggressive leverage, urging listeners to rethink their spending for a more secure retirement.

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INSIGHT

Underspending Is The Biggest Retirement Risk

Frank Vasquez argues the biggest retirement risk for prepared savers is underspending driven by identity and fear.
He links this to cultural voices like Bill Bengen, Michael Kitces, Morgan Housel, and David Bach.

ADVICE

Reframe Saving Identity To Spend Confidently

Do confront identity and fear that keep you in “I am a saver” mode and reframe retirement as living, not hoarding.
Use better portfolios to safely increase withdrawal rates and enjoy more of life now.

ANECDOTE

Listener’s Terminal Diagnosis Prompt

A listener told Frank he was terminally ill and wanted help with spending choices.
This reminded Frank to prioritize the next decade of life over hypothetical distant outcomes.

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In this episode we conduct our annual portfolio reviews of our eight sample portfolios you can find at Portfolios | Risk Parity Radio, and compare them with commercial alternatives. We discuss why factors beat geography, and explain how gold, bonds, and managed futures improved results and withdrawal durability.

We also confront the real roadblock to a good retirement: underspending driven by identity and fear, which we heard about in 2025 from Bill Bengen, Michael Kitces and Carl Richards, Morgan Housel and David Bach, among others.

Breathless Unedited AI-Bot Summary:

The biggest retirement risk most prepared savers face isn’t market volatility—it’s not spending enough. We dig into why identity and fear keep people stuck in “I am a saver” mode, and how to break that habit with a portfolio built for higher, safer withdrawals. Then we open the books on eight sample portfolios and share what actually worked in 2025: factor-driven international exposure, a powerful year for gold, the yield curve’s shift favoring intermediate bonds, and a split decision for managed futures where DBMF led.

You’ll hear how the Golden Butterfly and Golden Ratio outperformed classic 60/40 approaches by leaning on uncorrelated return drivers, and why DIY risk parity designs can match or beat commercial funds at lower cost. We walk through the conservative All Seasons mix, the diversified Risk Parity Ultimate, and two leverage case studies: one that shows how leverage without real diversification can disappoint, and another that demonstrates smart “return stacking” with OPTRA—combining modest leverage, gold, value tilts, and managed futures for equity-like returns with a steadier ride.

Along the way, we connect portfolio choices to what matters most: turning savings into a life well-lived over the next decade. A candid listener story reminds us that time is finite, and that a better withdrawal rate is not a luxury—it’s a plan for joy, relationships, and experiences now. If you’ve wondered whether your mix underuses factors, overlooks gold, or over-relies on 60/40 assumptions, this is your field guide to a sturdier, more generous retirement strategy.

If this resonates, tap follow, share it with a friend who needs a nudge to spend confidently, and leave a quick review with your biggest portfolio question. Your next ten years will thank you.

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