Risk Parity Radio

In this episode we answer emails from Andrew, Jeff, Ron and Javier.  We discuss analysis tools for leveraged funds like UPRO and TNA, Tactical Allocation Strategies, how and where this podcast is distributed, and brokerage account options for foreign (to the US) nationals.And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio.Additional links:Andrew's Portfolio Visualizer Link:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)Testfol Portfolio Analyzer (see the Help link in the drop-down menu for instructions):  testfol.ioAllocate Smartly Website:  What We Do - Allocate SmartlyInteractive Brokers Introduction For Accounts:  Introducción a IBKR | Trading Course | Traders' Academy | IBKR Campus (interactivebrokers.com)Amusing Unedited AI-Bot Summary:Ready to rethink your investment strategy? Uncover the secrets of a diversified portfolio with leveraged funds like TNA and UPRO in our latest episode of Risk Parity Radio. We'll guide you through the nitty-gritty of managing such portfolios, emphasizing the significance of fee considerations and the mechanics of monthly rebalancing. Explore alternative strategies, including rebalancing bands, and discover the power of tools like Portfolio Visualizer and TestFol to optimize your investment approach. We blend humor and savvy insights to create an inviting atmosphere, reminiscent of a friendly chat at your favorite local dive bar.Our exploration doesn't stop there. We tackle Jeff's curiosity about tactical allocation strategies for retirement, diving into the complexities and risks, including overfitting and tax inefficiencies. While some approaches might tempt with short-term outperformance, we advocate for simpler, more reliable diversification techniques. Tune in for our market performance review, where we assess the minimal shifts in major indices and the dramatic moves in commodities and long-term treasury bonds. From the All Seasons to the Risk Parity Ultimate portfolios, we ensure you have the insights needed to navigate your financial journey through market volatility and distribution strategies.Support the show

In this episode we answer emails from Mark, Jon and Richard.  We discuss the perils of income investing, covered call funds and SPYI, one potential future of DYI investing using levered and unlevered risk-parity style portfolios, and the use and misuse of historical data in various analyses with a reference to a blog post from Cliff Asness.Links:Video re SPYI:  SPYI Squeezes 12% Yield from the S&P 500 (SPYI ETF) (youtube.com)Portfolio Visualizer Litmus Test of SPYI:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)Cliff Asness Article:  Efficient Frontier “Theory” for the Long Run (aqr.com)Father McKenna Center Donation Page:  Donate - Father McKenna CenterNote that the usually "Amusing Unedited AI-bot Summary" was so ridiculously inaccurate I had to omit it.Support the show

In this episode we answer emails from Mark, James and Anderson.  We discuss differing performances in managed futures funds, a Portfolio Visualizer calculator and what to do with a TSP, and what to do about 529s when approaching the use date.And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio.Additional links:Recent ChooseFI podcast with Yours Truly:  5% SWR, Revealed Preferences and the 3 stories | Frank Vasquez | Ep 508 | ChooseFIFather McKenna Center Main Donation Page:  Donate - Father McKenna CenterPortfolio Visualizer Financial Goals Tool:  Financial Goals (portfoliovisualizer.com)Amusing Unedited AI-bot Summary:How do you ensure a worry-free retirement while navigating the complexities of market trends and withdrawal strategies? Welcome back to Risk Parity Radio! Fresh from a cross-country adventure to the picturesque Washington State, we’re back with a renewed zest to help you master the art of personal finance and investing. Our cozy, dive bar-esque podcast is not just about numbers and charts; it's about community, humor, and shared learning. In this episode, we revisit our eight sample portfolios and shed light on how to build relationships and joy within your retirement hobby. If you're new here, start your journey with episodes 1, 3, 5, 7, and 9 for a solid foundation.Ever wondered how to choose between managed futures ETFs like KMLM and DBMF, or how to predict safe withdrawal rates for early retirement? We’ve got you covered. We explore the intricacies of KMLM's track record and DBMF's market adaptability, helping you determine the best fit for your diversified portfolio. Plus, we answer a listener's burning question about withdrawal rates, and untangle the complexities of the Thrift Savings Plan versus an IRA rollover. Dive into the world of financial planning tools, Social Security strategies, and brokerage firms like Fidelity and Schwab for low-cost investments. Join our informative yet quirky session designed for do-it-yourself investors looking to build a robust, diversified retirement plan.Support the show

In this episode we answer emails from Mikel, Garrison and Matt.  We discuss our charity and some foundational episodes, the use of leveraged fund UPRO in the OPTRA sample portfolio, and the four phases of learning and knowledge in personal finance, which are (1) Baby Steps; (2) Shiny Object Syndrome; (3) Applying Formulas That Represent Sound Investing Principles; and (4) Understanding Sound Investing Principles And Applying Them Directly.  And Mt. Rushmore and The Dog With The Longest Name.And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio.Additional links:Risk Parity Radio RSS Feed With All Podcasts On One Searchable Webpage:  Risk Parity Radio RSS Feed (buzzsprout.com)Father McKenna Center Main Donation Page:  Donate - Father McKenna CenterFather McKenna Center Walk4McKenna Page:  Walk4McKenna - Father McKenna CenterAmusing Unedited AI-Bot Summary:How can long-term treasury bonds cushion your portfolio against turbulent market conditions? This week on Risk Parity Radio, we provide a detailed review of our sample portfolios, showing how treasuries have played a crucial role in mitigating recent stock market losses. We also share an inspiring email from Michael, a new listener who discusses his generous donation to the Father McKenna Center and highlights the upcoming Walk for McKenna fundraiser. Tune in to learn how you can support this meaningful cause while enhancing your understanding of risk parity investing.Embark on a journey to financial independence with us as we dissect the critical stages and pitfalls along the way. We'll guide you through the initial "baby steps," cautioning against the allure of "shiny object syndrome," and emphasize the importance of transitioning to practical, DIY investment strategies. Discover the core principles of successful investing, such as diversification and macro allocation, that will empower you to achieve true financial independence and navigate your personal finance journey with confidence.In a week marked by significant market declines, we analyze the performance of various portfolio strategies, highlighting the resilience of long-term treasury bonds and the impressive gains in diversified portfolios like the All Seasons and Golden Butterfly. Get an inside look at the new Optra portfolio, its composition, and its performance amidst economic fluctuations. We wrap up with an engaging tale about an extraordinarily talented dog, blending financial wisdom with light-hearted storytelling to keep you both informed and entertained.Support the show

Delve into the intriguing world of leveraging investments as the hosts explore its potential benefits and pitfalls. Discover alternative options to popular gold ETFs and how to navigate early retirement withdrawals safely. The conversation includes detailed portfolio reviews, emphasizing practical strategies tailored for both accumulation and decumulation phases. Not to mention, their light-hearted banter promises a few laughs along the way, making personal finance feel fun and approachable!

Phil engages in a lively discussion about investment strategies, prompting insights on portfolio adjustments and the intricacies of factor investing. Eric dives into the world of reverse mortgages, unveiling critical considerations around HECOMs. They scrutinize the often-misunderstood Indexed Universal Life (IUL) insurance, emphasizing its pitfalls and the wealth required to utilize such products effectively. Their blunt honesty is refreshing, reminding listeners to rethink conventional investment wisdom and approach with caution.

Robert, an expert in international stock funds, Jamie, an inquisitive Boglehead, and Richard, a proponent of early retirement, dive into critical investment strategies. They discuss the limitations of traditional portfolios, specifically the Boglehead approach. The trio examines the nuances of diversification, highlighting the unexpected similarities between international and U.S. stocks. They also review a unique 70/30/10 risk-parity portfolio, tackling real-world concerns while offering valuable insights on transitioning towards retirement investing.

This discussion dives into the nuances of leveraged investments, comparing margin and leveraged ETFs for savvy portfolio management. Couples are encouraged to communicate openly about finances, particularly as they transition into retirement strategies. Weekly portfolio reviews offer insights into both conservative and aggressive investment approaches, emphasizing the importance of patience during market downturns. Listeners also gain valuable tips for navigating the unpredictable world of investing with confidence and humor.

In this episode we answer emails from Ned, Kyle and Willy.  We discuss tools for the sight-impaired, building out from an accumulation portfolio, the new bitcoin ETFs, and what to do in a complex Coast FI situation involving both an invested portfolio and some raw land.Link:Father McKenna Center Donation Page -- Remember to mention "The Financial Quarterback match" in new donations:  Donate - Father McKenna CenterAmusing Unedited AI-bot Summary:Can a legally blind investor successfully navigate the complex world of DIY investing? Tune in as we uncover the inspiring story of Ned, who shares his personal journey and the accessibility tools that empower him to make informed investment decisions. Learn how he balances his focus on large and mid-cap growth stocks while exploring the potential benefits of adding small-cap value, long-term treasuries, and alternative assets like gold and managed futures to his portfolio.In another fascinating segment, we break down the power of ETFs for investing in digital assets such as Bitcoin and Ether, and how platforms like Fidelity and Schwab make it seamless. We then tackle a challenging financial scenario with Willy, who is on the brink of transitioning to Coast FI. Delve into strategies for evaluating his portfolio mix, the implications of selling rural recreational land, and the potential benefits of reallocating to more liquid investments. Discover practical tips and thoughtful analysis to help you make smarter investment choices and achieve financial independence.Support the show

In this episode we answer emails from Frank, Michael and Aaron.  We discuss four good portfolio analyzer tools, the hidden meanings in the Risk Parity Radio logo, the deficiencies of the website and where to find good international funds to use for portfolio construction.And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio.Additional links:Father McKenna Center Donation Page -- Remember to mention "The Financial Quarterback match" in new donations:  Donate - Father McKenna CenterPortfolio Visualizer Monte Carlo Simulator:  Monte Carlo Simulation (portfoliovisualizer.com)Portfolio Charts Portfolio Matrix Tool:  Portfolio Matrix – Portfolio ChartsEarly Retirement Now Toolbox:  An Updated Google Sheet DIY Withdrawal Rate Toolbox (SWR Series Part 28) - Early Retirement NowTestfolio Calculator:  testfol.ioGeometric Golden Ratio Pentagon:  Golden Ratio in Regular Pentagon (cut-the-knot.org)Misbehavior of Markets Book:  The (Mis)Behavior of Markets by Benoît B. Mandelbrot | GoodreadsMore Than You Know Book:  More Than You Know: Finding Financial Wisdom in Unconventional Places by Michael J. Mauboussin | GoodreadsMerriman Best In Class ETF List:  Best-in-Class ETF Recommendations | Merriman Financial Education Foundation (paulmerriman.com)Video Re Best In Class ETFs:  Bootcamp #9 Best in Class ETF Update 2024 (youtube.com)DFA Mutual Fund List:  Funds | DimensionalTruncated AI-bot Summary:Can you imagine transforming your financial journey in the same way you might find camaraderie in your favorite dive bar? Welcome to Risk Parity Radio! Listener Frank reaches out with gratitude and a request for the best tools to backtest portfolios and determine safe withdrawal rates. We also tip our hats to Frank's generous donation to the Father McKenna Center, underscoring our ongoing charity drive in collaboration with the Financial Quarterback podcast.Ever wondered which platforms provide the most reliable data for crafting your financial future? We break down some of the top tools in the industry, like Portfolio Visualizer, Portfolio Charts, and the Early Retirement Now toolbox, along with the new player, Testfolio.  Along the way, we debunk myths around CAPE ratios and share a heartfelt story about our Risk Parity Radio logo, born out of the creativity sparked during the 2020 lockdown.From a cheerful Scottish greeting to a deep dive into international investing, this episode promises both humor and expertise. We tackle Aaron’s email about international ETFs, emphasizing the importance of non-overlapping funds for true diversification. Drawing from resources like the Merriman Foundation and Chris Pedersen's analyses, we guide you in selecting top-tier funds from DFA and Avantis. Support the show