The Rational Reminder Podcast

Episode 281: Lifecycle Asset Allocation, and Retiring Successfully with Justin King

14 snips
Nov 30, 2023
Guest
Justin King
Justin King, an expert in lifecycle asset allocation and retiring successfully, joins the show to discuss the optimal mix of assets in a portfolio, understanding risk tolerance, and the nine accelerators for a successful retirement. The hosts also delve into the tax implications of insurance policies in corporation ownership and the importance of actively preparing for a fulfilling retirement.
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INSIGHT

Asset Allocation Importance

  • Lifecycle asset allocation significantly impacts long-term investment results.
  • Traditional methods like the "age minus 100" rule or target-date funds offer seemingly simple solutions.
INSIGHT

Mean-Variance Optimization Limitations

  • Mean-variance optimization, while mathematically appealing, has limitations in practice.
  • It's sensitive to unknowable future inputs and overlooks crucial factors like return skewness.
INSIGHT

Rethinking Risk

  • Volatility, while psychologically impactful, may not accurately represent risk for long-term investors.
  • Consider the probability of not achieving consumption goals as a more relevant risk measure.
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