Risk Parity Radio

Explore the secrets of effective financial strategies with listener-driven insights. Discover how to transition your portfolio from accumulation to retirement while minimizing taxes. Learn about the crucial role of international funds and the benefits of true diversification. Engage with community feedback as the hosts address technical issues and provide alternative resources. Delve into the essential components of risk parity portfolios, including the balance of stocks, bonds, and gold for optimal returns.

In this episode we answer emails from Jenny, Arun and Jeff.  We discuss setting up a risk parity style portfolio for an elder relative, what to do with 529 money and college funds when you are getting close, and the use of risk parity style portfolios for intermediate goals or accumulation.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:Yours Truly On The Earn & Invest Podcast:  Why Risk Matters w/ Frank Vasq - Earn & Invest - Apple PodcastsValue Stock Geek's Weird Portfolio:  Weird Portfolio – Portfolio Charts Jared Dillian And The Awesome Portfolio:  Show Us Your Portfolio: Jared DillianFather McKenna Center Donation Page:  Donate - Father McKenna CenterAmusing Unedited AI-Bot Summary:  What if you could unlock the secrets of risk parity and transform your investment strategy? Join us on Risk Parity Radio as we explore how strategic gold allocation and portfolio diversification can revolutionize your financial journey. Dive into the humor-laden world of market fluctuations and portfolio reviews, and learn from our recent discussion on the Earn and Invest podcast with Jordan Grumet about integrating risk parity into modern portfolio theory. We also respond to a thoughtful email from Jenny, a dedicated Patreon supporter, who's crafting a risk parity portfolio for her mother-in-law. Get insights on asset allocation, the timing of gold investments, and how to utilize current market conditions to make savvy decisions.In this episode, we delve into diversifying investment strategies during the accumulation phase, particularly for DIY investors like Jeff, a mid-40s Gen Xer contemplating a 401k rollover. Explore a variety of strategies, including Tyler's Golden Butterfly, the Weird Portfolio by Value Stock Geek, and Jared Dillian's Awesome Portfolio. Discover how these can complement ventures in real estate or business, and draw inspiration from Bruce Lee's philosophy to tailor an approach uniquely your own. Whether you're a novice or a seasoned investor, expect to walk away with practical advice and fresh perspectives to enhance your financial strategy.Support the show

In this episode we answer emails from James, MyContactInfo and Cy.  We discuss using silver in addition to gold in a portfolio, review again why many "options strategy funds" and other complex ETFs are generally a waste of space in a portfolio and talk about a recent Andrew Tobias interview and the history of DIY investing.Links:Eric Balchunas Interview:  Eric Balchunas on The Hidden Gems of the ETF World You Need to Know! (youtube.com)Andrew Tobias Interview:  The Only Investment Guide You'll Ever Need with Andrew Tobias | White Coat InvestorAmusing AI-Bot Summary:Discover why silver might be the wild card you didn't expect in your investment portfolio. With its industrial uses and lack of central bank holdings, silver might ramp up your portfolio's volatility without offering much in terms of diversification. We explore the intriguing story of the Hunt brothers and their infamous attempt to corner the silver market in the late 1970s, shedding light on the lessons learned from this historical market manipulation. Managed futures, we argue, could be a more strategic play for those looking to ride silver's unpredictable trends.As we journey through the evolution of DIY investing, we take a critical look at the rise and fall of heavily marketed investment funds, like buy-write and options strategy funds. Through the wisdom of Andrew Tobias, we trace the shift from active fund management in the 1980s to today's preference for indexing and strategic asset allocation. From the so-called "Bronze Age" to our current "Golden Age" of investing, the importance of asset allocation remains a steadfast guide. So whether you're a seasoned investor or just starting out, these reflections aim to illuminate a path toward more informed and successful investment decisions.Support the show

In this episode we answer emails from Alyson, Martijn and Russel.  We discuss the drawbacks to using a total world fund, common misconceptions about it and misguided worship of the Simplicity Principle, a levered sample portfolio comparison and basic ideas for accumulation.And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio.Additional link:Levered Sample Portfolio Comparison:  testfol.io/?s=8JtI7Xd2q7lAmusing Unedited AI-Bot Summary:Can achieving higher safe withdrawal rates in retirement really be as simple as investing in a single ETF? Discover the complexities of using VT, a total world fund, during your accumulation phase and why it might not be the one-size-fits-all solution it's cracked up to be. We'll challenge conventional wisdom on cap-weighted funds and explain why diversifying across different asset classes is crucial for your portfolio's long-term success. Get ready to expand your horizons as we question the effectiveness of simplicity and share strategies for effective rebalancing.Join us for a lively exploration of portfolio diversification with listener Q&A, where we break down the dynamics of levered portfolios and strategize about blending small-cap value with large-cap growth. Whether you're just starting your investment journey or refining your approach, we'll guide you through the pros and cons of various strategies, helping you navigate the path to financial freedom. Plus, we review an exciting week in the markets, highlighting stellar performances and acknowledging the unpredictable nature of trends. Dive into the details with us and equip yourself with the knowledge to make informed investment decisions.Support the show

In this episode we answer emails from Anderson, Camille, and Chris.  We discuss and HSA vs. a Roth IRA for a lower-taxed earner, the tax, brokerage account, and portfolio considerations for a globe-trotting Canadian, and the gestalt of this podcast.Links:Father McKenna Center Donation Page:  Donate - Father McKenna CenterPortfolio Charts Portfolio Matrix:  Portfolio Matrix – Portfolio ChartsAmusing Unedited AI-Bot Summary:Imagine navigating the world of international investment with the finesse of a seasoned traveler—all while balancing the priorities of a large family. Join me on Risk Parity Radio, where we explore Anderson's financial journey. With six kids and a modest income, Anderson seeks guidance on whether to prioritize his HSA or Roth IRA. We dissect the advantages and pitfalls of each option, examining long-term growth and inheritance implications, and offering a balanced approach to alleviate his concerns. Spoiler: a Roth IRA might just be his golden ticket.As you contemplate international retirement, consider the intricate dance of managing a portfolio across borders. We discuss the indispensable role of a savvy accountant to navigate tax complexities and the potential necessity of relocating assets to sidestep onerous US regulations. Discover how Interactive Brokers can be your go-to platform for seamless international transactions and learn from real-world investment scenarios, like the unpredictable journey with MGK and real estate ventures. Our strategic planning insights will steer you clear of unreliable assets, paving a path to financial independence.Trading stock charts for crystal balls, we venture into forecasting with a twist—relying on historical data instead of mere speculation. By leveraging portfolio matrices, we guide you through the labyrinth of investment possibilities beyond traditional stocks and bonds. Balance simplicity with complexity as you craft a robust portfolio that withstands market volatility. And as always, we cap off with a dose of humor—a nod to Monty Python’s "silly place"—reminding you that while we’re serious about finance, we’re equally serious about having a good laugh.Support the show

Discover how to balance your portfolio in a high tax bracket while navigating bond investments. Follow Frank's journey as he seeks advice on optimizing a diverse mix of stocks, gold, and cash. Learn about effective tax strategies, including retirement account utilization and the benefits of municipal bonds. Gain insights on strategic portfolio management, focusing on monthly withdrawals and cash flow. Plus, explore the importance of charitable giving, supporting important causes like the Father McKenna Center.

This episode dives into modern trends in fund construction, discussing the evolution of index funds and the push for better diversification. The hosts tackle the intricacies of transitioning to drawdown portfolios and reflect on the rise of podcast guesting. Engaging listener questions bring insights into portfolio reviews, revealing strategic allocations in leveraged funds. With humor and expertise, they navigate complex investment strategies, urging a fresh perspective on asset allocation for the DIY investor.

Dive into the world of risk parity with a spotlight on essential books that enhance investment strategies. Explore the challenges faced after leaving a financial advisor and tips for managing a diversified portfolio. Learn about the intricacies of capital gains tax and how to make informed decisions. Finally, discover growth strategies for young investors, including the power of ETFs and the balance between various asset classes. It's a treasure trove of insights for navigating the investment landscape!

Dive into the fascinating world of gold investments and tax implications! Discover the best account types for holding gold ETFs, and learn why gold is considered a defensive asset. The hosts tackle listener questions about financial databases for portfolio backtesting, offering insights into the importance of using robust data for analysis. Plus, enjoy a thorough review of various sample portfolios, sprinkled with light-hearted anecdotes and practical tips for maximizing investment strategies.

In this episode we answer emails from Anderson, Sean and Colin.  We discuss the OPTRA sample portfolio, using rising glidepaths or bond tents in portfolio management and Colin's "Smooth Operator" Portfolio.Links:2016 Kitces Article re Bond Tents and Glidepaths:  The Portfolio Size Effect And Optimal Equity Glidepaths (kitces.com)Portfolio Charts Portfolio Matrix Comparison Tool:  Portfolio Matrix – Portfolio ChartsColin's Portfolio:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)Portfolio Charts Article:  When Past Performance Is Absolutely Indicative of Future Results – Portfolio ChartsAmusing Unedited AI-bot Summary:Discover the secrets to crafting a retirement portfolio that balances risk and reward in episode 371 of Risk Parity Radio. We introduce the Optra portfolio, a unique blend of risk parity with a hint of leverage, and explore why a descriptive name was chosen over the suggested Uncle Frank portfolio. This episode gives you a backstage pass to our discussion on managing equity exposure and sequence of return risks with innovative strategies like bond tents and equity glide paths paired with risk parity styles, as proposed by our listener Sean.Unlock the power of portfolio construction tools and techniques with us. We demystify the use of Portfolio Visualizer's Monte Carlo Simulator and delve into expert insights from Bill Bengen and Wade Pfau on optimal equity allocations. You'll grasp the significance of historical data as we dissect how different portfolio compositions can affect decumulation strategies, touching on metrics like CAGR and the ulcer index. Our conversation extends to Colin's Smooth Operator Portfolio, which cleverly uses ETFs to enhance diversification and reduce volatility, showing the value of innovative approaches to portfolio performance.As we wrap up, expect a playful twist with Frank Vasquez's rendition of "Smooth Operator" and a reminder that our advice is designed to inform and entertain, not replace personalized financial consultation. We stress the importance of consulting personal advisors for tailored decisions. Join us for an engaging and enlightening session that combines financial wisdom with a touch of humor, ensuring you're well-prepared for your financial journey.Support the show