Risk Parity Radio

Discover how tilting toward small-cap value can enhance safe withdrawal rates but also comes with risks. Explore the value of diversification between small-cap and large-cap stocks. Learn about the new Testfolio tools, allowing for deep historical analysis across 100 years. Uncover the benefits of property and casualty insurers for diversification, especially in turbulent markets. Plus, get insights on the trade-offs of direct indexing versus using ETFs and how to navigate tax implications for retirement accounts.

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.

In this episode we answer emails from Anonymous, Pete, and Wilhelm.  We discuss how MiFID reshapes investing for U.S. citizens retiring in the EU, the commodities fund HGER and the "Desert Portfolio."Links:Father McKenna Center Donation Page:  Donate - Father McKenna CenterIBKR MiFId Client Page:  MiFID Client CategoryPortfolio Charts Assets Page (for finding funds):  Assets – Portfolio ChartsAnimal Spirits Podcast re HGER: Talk Your Book: How to Invest in Commodities - Animal Spirits Podcast | Podcast on Spotify Testfolio HGER Analysis:  testfol.io/analysis?s=dcDPCTQc1j6HGER Fund Page:  ETF | Harbor Commodity All-Weather Strategy ETF (HGER) | Harbor CapitalPortfolio Charts Safe Withdrawal Rates Chart:  Withdrawal Rates – Portfolio ChartsBreathless Unedited AI-Bot Summary:Planning to retire in Europe while keeping a U.S.-style portfolio? The moment you change residency, MiFID rules can block purchases of U.S.-domiciled ETFs, turning routine rebalancing into a headache and putting your safe withdrawal rate at risk. We break down practical steps to keep your plan intact, including using Interactive Brokers to run a two-sleeve setup—sell-only in the U.S. account, buy in an EU account with UCITS equivalents—and how to make rebalancing work without creating a tax and paperwork nightmare. You’ll hear the pros, cons, and tradeoffs of each path so you can navigate regulation with confidence, not guesswork.We also examine a smarter way to think about commodities. Legacy benchmarks like BCOM haven’t evolved with investor goals, and that’s where HGER’s rules-based design stands out with a quality and carry overlay that often elevates gold. But if you already hold gold, does a gold-tilted commodity fund add diversification or just overlap? We compare HGER to PDBC, highlight correlations with stocks and gold, and explain why managed futures can deliver broader, more resilient diversification across commodities, rates, and currencies. If you’re after true crisis defense, a blend of gold and managed futures may beat a traditional commodity sleeve.To round it out, we stress-test the “desert portfolio”—high treasuries, modest equities, a touch of gold—and explain when its calm ride helps and when it lowers your long-term sustainable withdrawal. If your real objective is durable retirement income, consider upping equity exposure, adding value tilts, and relying on uncorrelated diversifiers that keep you rebalancing through drawdowns. Subscribe for more DIY-friendly portfolio tactics, share with a friend who’s eyeing an EU move, and leave a review to tell us what cross-border investing questions you want answered next.Support the show

This discussion dives into the impact of cash and short-term bonds on safe withdrawal rates. The hosts explore the flexibility of the Golden Butterfly allocation, emphasizing that it's a preference rather than a rigid rule. There's valuable advice for late starters on crafting a growth-focused financial plan. Humorous birthday wishes add a light-hearted touch, while insights into portfolio reviews reveal performance secrets and strategies for achieving reliable returns without risky stock picking.

Discover how risk parity portfolios can enhance withdrawal rates, making retirement smoother. Learn the art of managing individual REITs with tax-efficient strategies. The joys of giving shine through as planned generosity and donor-advised funds are explored. Unpack the reverse glidepath concept, offering a fresh take on asset allocation throughout retirement. Listen to engaging listener stories that demonstrate the value of diversification and meaningful contributions.

Listeners dive into the risky world of leveraged ETFs and Bitcoin wrappers, exploring the fine line between thrill and actual risk. Insights on owning gold in CAD versus USD entertain Canadian listeners, while preferred shares come under scrutiny as alternatives are suggested. Bouncing back to community impact, a heartfelt visit to the Father McKenna Center highlights how donations and volunteer work uplift those in need. The hosts emphasize the importance of genuine value in investments for lasting financial health.

Discover how 72(t) withdrawals and asset swaps can grant early access to your IRA without penalties. Learn smart tax strategies for managing futures and treasuries, plus the best ETFs for parking excess cash. Dive into practical advice on adjusting your spending based on mandatory versus discretionary expenses. The hosts analyze listener portfolios, sharing insights on sustainable withdrawal rates, and whether to consolidate accounts with Vanguard or Fidelity. Wrap up with performance highlights from various portfolio strategies!

This discussion dives into moving away from underperforming target date funds towards low-cost index options. It emphasizes splitting equity into growth and value segments to better mitigate drawdowns. Managed futures are explored as a strategic exposure tool, while options collars are assessed against simpler equity reductions. The complexities of momentum models are highlighted, alongside the inefficacy of TIPS in hedging inflation, identifying better alternatives like value stocks and managed futures for inflation protection.

The hosts tackle real investing dilemmas, from rebalancing intermediate portfolios to the timing of adding bonds before retirement. They explore whether a 100% stock portfolio can withstand withdrawals and discuss midlife work-family challenges. Favorite listener episodes get a shoutout, along with unique animated video recaps. Randy Thurman's All-Weather Retirement Portfolio is scrutinized, revealing potential shortcomings, while practical advice on improving retirement strategies takes center stage. Tools for DIY portfolio analysis offer added guidance.

This discussion dives into the perils of using leveraged ETFs like UPRO, revealing how they can mask true risks during calm markets. It uncovers the biases built into financial advisory that often lead clients to underspend, highlighting the challenges of 401(k) options. The conversation contrasts a finance-first approach with the psychology-heavy tactics common in retail advice. Finally, performance reviews of multiple unique portfolio strategies illustrate how various allocations fare in current markets, shedding light on withdrawal strategies that impact resilience.