Risk Parity Radio

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!

This discussion dives into the challenges of retirement planning and the importance of choosing relatable role models. There’s a humorous take on promoting charity, emphasizing community over commercialism. The hosts critique popular investment strategies, particularly the risks of over-relying on cash and short-term bonds. Small cap value investing gets put under the microscope, sparking debate about its performance compared to larger stocks. Weekly portfolio reviews provide insights into practical asset allocation for today’s investors.