In these first few months of 2021, we’re seeing extreme market valuations at levels we’ve never seen before. This means that it’s more important than ever that you know how to assess risk in your portfolio.

Today’s guest is Brad Kasper. He’s the president of LSA Portfolio Analytics, where he provides investment advisors with the tools and infrastructure they need to deliver incredible client services. He’s also been on the podcast several times before to talk about the economy and how it affects markets, how to build portfolios, and how to assess risk. If you haven’t listened to our previous episode about risk assessment, Episode 15, I would highly recommend you do so now, as we get into some more technical terms and concepts today.

In our conversation, Brad and I are talking about intelligent risk and fat tail analysis, how to use these tools to construct better portfolios, and what makes this approach different from modern portfolio theory.

In this podcast interview, you’ll learn:

• How the black swan event of 2020 proved that most people don’t really understand how risk affects their portfolio.
• The difference between assessing portfolio performance on an annual basis vs. rolling one-year periods.
• Why heavy tail risk math creates a much clearer picture of your risk exposure than Gaussian mathematics.
• How improvements in technology over the last decade have made it much easier to eliminate assumptions from investment models.
• How to create and understand a realistic spread profile that both allows you to participate in the markets and shields you from catastrophic downturns.
• Why most financial planning software programs fail to produce accurate models.
• Why participating too much on the down days is every investor’s biggest risk.

Get Today's Show Notes

To get a full recap of today's conversation, including the biggest takeaways, transcripts, and links to all the resources mentioned, visit GuidedRetirementShow.com/41

Learn More about Retirement Planning

Find out more about retirement planning and Barber Financial Group, by visiting BarberFinancialGroup.com