In this episode we answer emails from Michael, Brian and Ed.  We discuss Michael's situation and options as a 34-year old with growing portfolios and a growing family, Brian's questions about the infernal Cederburg paper that won't go away and Ed's questions about accumulation portfolios.Links:Father McKenna Center Donation Page:  Donate - Father McKenna CenterTestfolio Comparison between Total Market and Large Cap Growth:  testfol.io/analysis?s=0GbmPE8D9GKMerriman Best In Class ETFs:  Best-in-Class ETF Recommendations | Merriman Financial Education FoundationShannon's Demon Article:  Unexpected Returns: Shannon's Demon & the Rebalancing Bonus – Portfolio ChartsRational Reminder Podcast #350:  Episode 350 - Scott Cederburg: A Critical Assessment of Lifecycle Investment Advice — Rational ReminderAn Actually Useful Analysis of Global Portfolios:  What Global Withdrawal Rates Teach Us About Ideal Retirement Portfolios – Portfolio ChartsBrian's Golden Butterfly Monte Carlo:  Monte Carlo SimulationBrian's All Equity 50/50 Monte Carlo:  Monte Carlo SimulationBrian's All Equity 34/66 Monte Carlo:  Monte Carlo SimulationAmusing Unedited AI-Bot Summary:Frank Vasquez tackles the complex world of portfolio construction across different life stages, offering practical wisdom mixed with his trademark humor for investors at all levels. This episode dives deep into a $1 million portfolio review, addressing how to balance real estate investments with securities, manage excess cash, and prepare for eventual retirement.A key highlight is Frank's thorough debunking of a frequently misunderstood academic study suggesting all-equity portfolios are optimal for retirement. With mathematical clarity, he explains why the study's unusual methodology comparing non-reserve currency bonds to U.S. equities across disconnected historical periods doesn't translate to practical investment advice. His Monte Carlo simulation comparisons confirm that diversified portfolios consistently outperform all-equity approaches during drawdown scenarios.The episode offers particularly valuable insights on pairing large-cap growth with small-cap value investments – not because either category is predicted to outperform, but because they create effective rebalancing pairs operating on different cycles while delivering similar long-term returns. This mathematical principle, known as Shannon's demon, shows how two assets with comparable returns but different timing can outperform either investment held alone.For younger investors still accumulating wealth, Frank recommends focusing on equity exposure while avoiding unnecessary complexity. His practical advice extends to managing investments across different account types, structuring 401(k) investments with limited options, and maintaining psychological fortitude through market cycles. Whether you're managing a complex portfolio or just starting youSupport the show

Listeners dive into the world of gold investments, comparing the Sprott Physical Gold Trust with traditional ETFs while debunking tax myths. The conversation shifts to portfolio management, highlighting the benefits of the AVGE fund and the delicate dance of risk and returns. Tail risk hedging also takes center stage, revealing its limitations and the importance of disciplined investing. Finally, an analysis of sample portfolios illustrates the power of diversification in navigating today's turbulent market.

Discover the ins and outs of preferred shares and the intriguing PFFA fund, which boasts high returns but comes with added risks. Learn the critical importance of assessing financial needs before diving into fund selection, especially when planning for retirement. The discussion also unpacks the fascinating world of return stacked ETFs, exploring their potential for diversification and long-term gains. With a pinch of humor and thoughtful insights, the conversation keeps financial literacy engaging and accessible.

In this episode we answer emails from Randy, Richard and Jamie.  We discuss rebalancing frequency, share-lending at Fidelity, moves in Morningstar's style boxes and strips treasury funds vs. long term treasury bond funds.And we announce the new listing of the Golden Ratio portfolio at Portfolio Charts and thank Tyler and Van for that.Links:Father McKenna Center Donation Page:  Donate - Father McKenna CenterGolden Ratio Portfolio at Portfolio Charts:  Golden Ratio Portfolio – Portfolio ChartsGolden Ratio Portfolio Write-Up:  Beautiful Constants and the Golden Ratio Portfolio – Portfolio ChartsKitces Article re Rebalancing:  Optimal Rebalancing – Time Horizons Vs Tolerance BandsDiscussion of Changes to Morningstar's Style Boxes:  Morningstar redefines growth/value style box criteria - Bogleheads.orgRisk Parity Radio All Episodes Feed Page:  Risk Parity Radio RSS FeedAmusing Unedited AI-Bot Summary:Exciting news opens this episode as Frank announces the Golden Ratio Portfolio has been officially added to Portfolio Charts, complete with its own dedicated page and insightful write-up. This recognition represents a significant milestone for a portfolio strategy that has been a cornerstone topic throughout Risk Parity Radio's 400+ episodes.The heart of the episode focuses on answering thoughtful listener questions about portfolio management techniques. Randy inquires about rebalancing frequency and whether to participate in Fidelity's securities lending program for gold ETFs. Frank explains that while rebalancing more frequently than once a year generally doesn't improve performance, coordinating semi-annual rebalancing with tax planning can be advantageous. As for securities lending, Frank shares his personal experience that these programs work smoothly but typically generate minimal income—setting realistic expectations for listeners considering this option.A particularly detailed discussion explores the nuances between traditional long-term treasury funds and STRIPS funds (GOVZ, ZROZ, EDV). Frank clarifies that STRIPS-based ETFs typically move at approximately 1.5 times the rate of standard long-term treasury funds when interest rates change, effectively functioning as a form of leverage. This characteristic makes them valuable tools for tax-loss harvesting or creating more efficient allocations by achieving similar interest rate sensitivity with smaller position sizes. Rather than focusing on market timing for transitions between these instruments, Frank emphasizes coordinating such moves with broader tax management strategies—practical advice that demonstrates how risk parity investors can implement sophisticated portfolio techniques while maintaining tax efficiency.Want to connect with other Risk Parity Radio listeners? Frank announces a meetup at the Economy Conference at the Solari Hotel. Email frank@riskparityradio.com for details and to join the community of thoughtful DIY investors exploring alternatives to traditional asset allocation.Support the show

Discover the pros and cons of the GDE ETF, a unique mix of gold and large-cap stocks. Explore the pitfalls of the life cycle model in personal finance, challenging its unrealistic assumptions. Learn how historical high interest rates might reshape investment strategies by providing significant returns on bonds. Delve into innovative hybrid funds that merge gold and Bitcoin for balanced risk management. Lastly, enjoy entertaining insights on portfolio reviews and engaging listener interactions.

This engaging discussion dives into the complexities of Real Estate Investment Trusts (REITs) and their essential role in diversified portfolios. It warns against investing in vacant land, highlighting the risks of illiquid assets. The conversation shifts to Bitcoin, exploring its new volatility and the implications for investors amidst corporate hype. Anecdotes and listener contributions add humor and depth, while strategies for managing portfolios, particularly in retirement, provide valuable insights. It's a mix of cautionary advice and insightful market trends!

Discover the intriguing world of treasury STRIPS funds and how they compare to traditional long-term bonds. Unpack the concept of a 'returned-stacked' portfolio that could revolutionize retirement for young investors. Dive into the performance of the Golden Ratio portfolio and its surprising resilience in volatile markets. Plus, engage in a lively discussion about leveraging investment strategies and the potential risks that come with them. This episode is packed with insights for both novice and seasoned investors!

Dive into a lively discussion on optimizing tax location in investment strategies and the importance of asset allocation for efficient withdrawals. Explore the timeless allure of gold as a storied safe haven during turbulent times. Discover the challenges of accessing international ETFs and the handy resource JustETF.com for finding global options. Rethink traditional diversification techniques as the hosts argue for a more modern approach matching value with growth to weather market fluctuations. Expect humor, insights, and listener engagement throughout!

Dive into a dynamic discussion on navigating financial uncertainty amidst a changing U.S. administration. Explore the implications of a weak dollar on investment strategies, and how that affects U.S. versus international stocks. The conversation highlights the need for realistic inflation estimates in retirement withdrawals. Additionally, gain insights from detailed reviews of eight investment portfolios, showcasing diverse asset performances like gold and treasury bonds in today's market. Stay informed and resilient in your investment journey!

Get ready to rethink your investment strategies with aggressive risk parity portfolios! Delve into a potential 70% equity allocation and learn how to effectively diversify the remaining assets. Uncover what makes QREARX underperform against traditional indexed REITs, while debating the complexities of defining 'value' in the investment world. Along the way, discover unique approaches and innovative feedback that shape financial success. Plus, don’t miss the exciting plans for a casual meetup at the upcoming Economy Conference!