In this episode we break rules and have guests!  Dennis and Ben from the Father McKenna Center.  We review the fabulous results of the Top of the T-Shirt Campaign and reflect on the generosity engagement of our listeners.

Then we answer emails from Jamie, Camille and Jon.  We discuss Jamie's portfolio experiments, bond allocations in a 403b, musing about changes in the reserve currency status of the US Dollar and transitioning issues.

And THEN we our go through our weekly and monthly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio.

Additional Links:

Jamie's Portfolio Analyses:  https://testfol.io/?s=jusQGGadC9P

Breathless Unedited AI-Bot Summary:

What happens when a finance podcast community rallies around a worthy cause? Something extraordinary. In this special episode, we break our "no guests" rule to welcome Dennis D and Ben Hoffschneider from the Father McKenna Center, where they share the remarkable story behind our recent fundraising campaign.

Dennis's journey will stop you in your tracks – from arriving at the center homeless after a 24-hour bus ride from Florida to eventually becoming its Executive Director. His powerful testimony shows how organizations like the McKenna Center transform lives daily. When our listener "Matthew63" stepped forward with a $15,000 matching challenge, none of us expected what would follow.

The results left everyone speechless: $60,969.83 raised (yes, down to the penny) from approximately 100 donors across the country. This campaign now represents 4% of the center's annual budget and has become their leading donor source for the fiscal year. As we reflect on Theodore Roosevelt's famous "Man in the Arena" speech, it becomes clear who the true warriors are – those doing the daily work with limited resources to address homelessness and food insecurity.

After our interview, we tackle several listener questions about portfolio construction. Jamie wonders about using VXX and SCO as bond replacements, Camille seeks guidance on holding treasury bonds in retirement accounts, and John asks about transitioning from target date funds to a more diversified approach. We close with our weekly portfolio review, noting gold's continued strong performance up 27.83% year-to-date.

Want to support the Father McKenna Center's work? Register for their Walk for McKenna on September 27th or follow them on social media to see your donations in action. The t-shirts featuring our logo will be available mid-September – a small reminder of what we can accomplish together.

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In this episode we answer emails from Thirsty Horse, Graham, Chris, Oberon, Ronald and Mark.  We discuss their personal progress with finances and better relationships, books about that and thriving, treasury bond funds, choosing volunteering and charitable opportunities, and sample portfolio dividends and interest.

Campaign update: Top of the T-Shirt fundraiser for Father McKenna Center closing July 31!

Links:

Father McKenna Center Donation Page:  Donate - Father McKenna Center

Testfolio Comparison of VGLT, TYA and GOVZ:  testfol.io/analysis?s=4bAJZXAObDD

Breathless Unedited AI-Bot Summary:

The journey from wealth accumulation to meaningful spending is perhaps one of the most challenging psychological transitions in personal finance. In this thought-provoking episode, we explore the mental barriers that prevent even financially successful people from fully enjoying their hard-earned freedom.

Through several listener stories, we witness the transformative power of risk parity principles not just as investment strategies, but as confidence-building frameworks that empower life changes. One listener shares how implementing these concepts gave them the security to leave a high-paying career for more purposeful work. Another reveals their struggle with "optimization addiction" - postponing experiences like concerts and travel while continuing to accumulate unnecessary wealth.

This episode delivers practical wisdom on finding balance between financial security and life enjoyment. We discuss recommended books for navigating the retirement mindset transition, including Bronnie Ware's "Five Regrets of the Dying" and Arthur Brooks' work on finding purpose in life's second half. For those interested in the technical side, we examine treasury bond strategies during recessionary environments, comparing performance across different instruments.

Perhaps most valuably, we explore how to select meaningful charitable causes that align with your skills and passions. The Father McKenna Center campaign illustrates how financial independence can create opportunities for impact beyond personal wealth.

Ready to shift from obsessing over your portfolio to embracing life's experiences? This episode might just give you the perspective shift you need. Remember: winning the financial game is just the beginning – learning to actually play it is where true fulfillment begins.

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In this episode we celebrate some milestones and answer emails from Amy and John.  We discuss the 10-year anniversary of Portfolio Charts, our one millionth download and Mary's good news about her CASA work.  Then we talk about the parable of the Starfish Thrower, go on requested rant about personal finance hoarding cultures and financially privileged people looking for pats on the head and their willing AUM facilitators, and talk about how real happiness and legacies are created.

And THEN we our go through our weekly and monthly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio.

Additional Links:

Father McKenna Center Donation Page:  Donate - Father McKenna Center

Portfolio Charts 10-year Anniversary Post:  Celebrating 10 Years of Portfolio Charts – Portfolio Charts

Narrative Psychology:  How to tell stories that give you meaning | Jane Goodall, Terry Crews & Dan McAdams

Parable of the Starfish Thrower:  Starfish Story (aka The Star Thrower)

ChooseFI Pod #508:  508 | 5% SWR, Revealed Preferences, and the 3 Stories | Frank Vasquez

Bringing Up The Baileys:  Melissa Bailey (@bringingupthebaileys_) • Instagram photos and videos

Come And Get It:  Comeandgetit | Facebook

Breathless AI-Bot Summary:

What does it mean to create a meaningful legacy? Is it the money you leave behind, or something far more valuable that transcends financial wealth?

As we celebrate our millionth podcast download and the 10th anniversary of Portfolio Charts—a revolutionary tool that transformed how DIY investors analyze diverse assets—we're reflecting on what truly matters in personal finance and beyond. The real highlight comes from Mary's work as a Court Appointed Special Advocate, where after three years of dedicated advocacy for five children in foster care, four were adopted into the same loving home. This embodiment of the "Starfish Thrower" parable reminds us that while we can't save everyone, making a difference for even one person creates ripples of meaningful change.

We take a hard look at the wealth inequality permeating financial media, where those with millions often dominate conversations while seeking validation for their already-secure positions. This echo chamber creates distorted priorities and revealed preferences toward death-focused wealth accumulation rather than life-focused enjoyment. In contrast, we share the story of Melissa—a woman who overcome tremendous hardships including foster care and the loss of a child, yet leads a joy-filled life despite financial constraints. Her legacy isn't measured in money but in traditions passed between generations while everyone is still alive.

Our portfolio reviews show mostly positive performance across various investment strategies, but the numbers pale in comparison to the real message: wealth isn't just what you have, but what you do with it. Whether you're struggling financially or blessed with abundance, your impact on others will always be your most valuable asset.

Join us as we explore what it means to live richly—not just by accumulating wealth, but by creating meaning. How will you throw your starfish today?

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In this episode we celebrate Ozzy Osbourne and answer emails from Iron Tony, Ben and Robbin.  We discuss some of the charts at Portfolio Charts and some related research, the unexpected problems of complex trusts and the value of simplifying estate planning by giving money away while you are alive and balancing treasury bonds, gold, and equity allocations to create resilient portfolios.

If you'd like to move to the front of the email line, please consider donating to the Father McKenna Center at fathermckennacenter.org or through the support page at riskparityradio.com.

Links:

Portfolio Charts Page O' Charts:  Charts – Portfolio Charts

Portfolio Charts Golden Ratio Article:  Beautiful Constants and the Golden Ratio Portfolio – Portfolio Charts

Jim Sandidge Chaos Paper:  RMJ081-ChaosAndRetirementSecurity.pdf

Dana Anspach Presentation (watch minutes 17 - 59):  How to Turn Investments into a Retirement Paycheck in 2023

Testfolio Comparison of TLT and VGLT:  https://testfol.io/analysis?s=dGUGRbj009N

Breathless Unedited AI-Bot Summary:

Season 6 kicks off with a deep dive into the powerful analytical tools at Portfolio Charts that can transform how you evaluate investment strategies. Frank unpacks essential charts like Withdrawal Rates and Drawdowns, revealing why understanding a portfolio's behavior during market stress matters more than chasing maximum returns. Through clear explanations and vivid analogies, he demonstrates how risk parity approaches function as the Toyota 4Runners of investment strategies—reliable, versatile, and designed for challenging conditions.

The conversation shifts to a listener's complex trust situation, sparking a thoughtful examination of estate planning pitfalls. Frank offers a compelling perspective on legacy planning: rather than creating elaborate structures meant to preserve wealth indefinitely, consider simpler approaches that benefit heirs during your lifetime and avoid unintended family conflicts. His personal approach of allocating roughly 1% of his annual portfolio withdrawals to giving provides a practical model for balancing financial security with meaningful impact.

Finally, Frank addresses portfolio construction fundamentals, explaining why Treasury bonds serve as essential "recession insurance" and how to balance them with other assets like gold and equities. He emphasizes that even historically strong performers like gold can experience decade-long drawdowns, reinforcing the need for true diversification across asset classes that respond differently to varying economic conditions.

Whether you're new to risk parity investing or refining your existing strategy, this episode delivers valuable insights for creating a resilient portfolio designed to weather market uncertainty while supporting your long-term financial goals. Have questions about your own investment approach? Send them to [email protected] or use the contact form at riskparityradio.com.

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In this shocking, season-ending episode we answer an email from another generous and Nameless listener regarding a levered portfolio for Nameless, Jr., their omnipotent baby in waiting.  We also have fun with Fibonacci numbers. 

And THEN we do our annual rebalancings of the first four sample portfolios you can find at Portfolios | Risk Parity Radio.  And we also do our weekly portfolio reviews.

Additional Links:

Father McKenna Center Donation Page:  Donate - Father McKenna Center

Bigger Pockets Money Podcast #1:  The Secret to a 5% Safe Withdrawal Rate | Frank Vasquez

Bigger Pockets Money Podcast #2:  We Built a 5% SWR Retirement Portfolio Using Fidelity in 48 Minutes (Golden Ratio Portfolio)

All Seasons Portfolio Write-Up:  All Seasons Portfolio – Portfolio Charts

Golden Butterfly Portfolio Write-Up:  Golden Butterfly Portfolio – Portfolio Charts

Golden Ratio Portfolio Write-Up:  Golden Ratio Portfolio – Portfolio Charts

Breathless Unedited AI-Bot Summary:

A foolish consistency may be the hobgoblin of little minds, but financial consistency through strategic portfolio rebalancing is the cornerstone of successful long-term investing. Welcome to Episode 439 of Risk Parity Radio, where we're tackling our annual portfolio rebalancing ritual with a healthy blend of investment wisdom and pop culture quips.

After sharing highlights from recent appearances on the BiggerPockets Money podcast where I guided host Mindy through constructing a risk parity portfolio using the golden ratio, we dive into an extraordinary listener story. TheNamelessOne made a mathematically beautiful donation of $5,321.10 to the Father McKenna Center—a reverse Fibonacci sequence that brilliantly connects to our golden ratio portfolio construction methods.

The market snapshot reveals gold shining brightest in 2023, up over 27% year-to-date, significantly outperforming both the S&P 500 and NASDAQ 100. This performance pattern creates the perfect scenario for demonstrating the discipline of rebalancing—systematically selling high (primarily gold across all portfolios) and buying low (particularly Treasury bonds and small cap value).

Each of our four sample portfolios gets the rebalancing treatment, with the Golden Butterfly standing tall at 43.16% return since inception while maintaining sleep-at-night stability. For those fascinated by the mathematical underpinnings, I explore how the Fibonacci sequence approaches the golden ratio (approximately 1.618), creating natural proportions that translate beautifully to portfolio construction.

Beyond the standard portfolios, we venture into experimental leveraged territory—not recommended for beginners but fascinating for understanding how different approaches perform through market cycles. The stark contrast between our worst performer (Aggressive 50-50, down 11.37% since inception) and our best (Golden Butterfly) offers powerful lessons in risk management.

Whether you're a math enthusiast, movie quote afficionado, or serious DIY investor, this episode delivers practical rebalancing strategies while maintaining that distinctive Risk Parity Radio blend of education and entertainment. Your portfolio might march to the beat of a different drummer, but that's precisely what makes risk parity so fascinating.

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In this episode we answer emails from Brian, Gary and Rob.  We discuss the foibles of follies of attempting to market-time gold, the fundamental problems of trying to use TIPS as inflation "hedges" in a diversified portfolio and the limited circumstances in which they make sense, introducing children to financial topics, and tax considerations in making portfolio transitions.

Please remember to check out our alternative website design by clicking "Alt Site" at the top right of riskparityradio.com and send your feedback to [email protected].

Links:

Father McKenna Center Donation Page:  Donate - Father McKenna Center

Bill Bernstein TIPS Ladder Article  ("A bond fund manager recently related to me his difficulty in figuring out the role of TIPS in his portfolios. After fumbling for a reply, I realized that he was right: like Social Security, they don’t occupy a formal slot in most folks’ asset allocation."):  Riskless at Age 104 - Articles - Advisor Perspectives

Once Upon A FI Book:  Once Upon a FI by Paul Mollenkopf | Discover Financial Wisdom Today

Analysis of LTPZ (-31.68% in 2022 -- "that's not an improvement!"):  LTPZ – PIMCO 15+ Year US TIPS ETF – ETF Stock Quote | Morningstar

Breathless AI-Bot Summary:

Ever found yourself frozen by investment indecision? In this illuminating mailbag episode, we tackle three pressing questions from listeners who've generously supported the Father McKenna Center.

First, we address the common dilemma of gold market timing. When prices seem high, should you wait for a pullback or stick to your long-term plan? The answer lies not in crystal ball predictions but in understanding the purpose gold serves in your portfolio across decades, not months. Rather than trying to outsmart the market, consider transitioning gradually into your desired allocation—whether that means buying now or implementing a systematic approach over time.

The conversation then pivots to one of investing's most misunderstood instruments: Treasury Inflation-Protected Securities (TIPS). Despite their reputation as inflation hedges, the data tells a different story. We examine why TIPS have consistently disappointed during both inflationary and deflationary environments, dragging portfolios down precisely when protection was most needed. For investors seeking genuine inflation buffers, we explore alternatives that have historically outperformed during inflationary periods, including managed futures, commodities, and certain equity sectors.

Perhaps most valuable is our discussion about raising financially literate children. Rather than forcing concepts on uninterested young minds (a strategy that often backfires), we suggest meeting children where they are developmentally. From opening teen brokerage accounts to creating opportunities for learning about buyer's remorse with small amounts of money, these practical approaches help children develop healthy relationships with finances without overwhelming them.

We conclude with tax-efficient portfolio rebalancing strategies, demonstrating how to reduce overconcentrated positions without triggering massive tax bills. By identifying specific tax lots, directing new investments strategically, and managing dividend reinvestments, investors can gradually transform their allocations while minimizing the tax impact.

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In this episode we answer emails from Ron, Michael, Jaime and Clare.  We discuss all the generosity bestowed on us and our charity, including the McKenna Man portfolio, a listener's personal portfolio and two-year experience, portfolio longevity issues and common myths thereabout, tax considerations and how to really enjoy retirement after accumulation.

Links:

Father McKenna Center Donation Page:  Donate - Father McKenna Center

Michael's Portfolio (unlevered) vs. a 70/30 since 2022: testfol.io/?s=fW46hjKw65M

Breathless AI-Bot Summary:

Money can buy you more wealth, but it can't buy you more time. This fundamental truth frames our deep dive into the stories of listeners who've transformed their financial futures through risk parity investing.

We begin with Ron's creative McKenna Man Portfolio – a 100% equity allocation that makes quarterly charitable distributions while still growing steadily. Michael shares his journey from traditional investing to a risk parity approach that delivers impressive returns with dramatically lower volatility, proving these principles work in real-world applications.

The heart of this episode tackles a question many struggle with: how to plan for extremely long retirement periods of 50+ years. Contrary to popular fear-mongering that suggests dramatically lower withdrawal rates, we explore research showing withdrawal rates tend to flatten over extended timeframes. Variable withdrawal strategies that adjust based on actual spending needs rather than rigid CPI increases can support withdrawal rates only slightly lower than traditional 30-year plans. For those concerned about longevity risk, slight adjustments to equity allocations or implementing rising equity glide paths provide additional security without sacrificing quality of life.

Perhaps most powerful is Claire's story of transitioning to a work-optional lifestyle at 56, using risk parity principles to escape a high-pressure career and create space for relationships and experiences. Her wisdom cuts through financial noise with crystal clarity: "Don't worry about running out of money, worry about running out of time."

When we reflect on Bronnie Ware's "Five Regrets of the Dying," none involve wishing for more wealth. They center on authentic relationships, self-expression, and allowing more happiness – precisely what proper financial planning should ultimately enable. The purpose isn't maximizing wealth, but confidently answering "how much is enough" so you can stop playing the accumulation game and start truly living.

What would your life look like if financial fears no longer dictated your choices? Join our community at riskparityradio.com to continue the conversation.

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In this episode we explore one big long answer to an email from Bob about why people refuse to spend money in retirement despite having more than adequate resources.  We touch on the math and psychology of the Possibility Effect and how to use Base Rates to overcome that, what the numbers say you really should be afraid of, how to break down expenses to alleviate fears and the real underlying problem in many cases, which is not fear, but personal identity rooted in "Frugality Inertia."

And THEN we our go through our weekly and monthly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio.

Books Referenced:

"The Top Five Regrets of the Dying" by Bronnie Ware

"Falling Upward" by Richard Rohr

"Strength to Strength" and "Build The Life You Want" by Arthur Brooks

"The Second Mountain" by David Brooks

"The Soul of Wealth" by Daniel Crosby

"The Art of Spending Money" by Morgan Housel

"Die With Zero" by Bill Perkins

Additional Links:

Father McKenna Center Donation Page:  Donate - Father McKenna Center

Morgan Housel Podcast:  The Morgan Housel Podcast, Episode 1: The Art of Spending Money

Narrative Psychology:  How to tell stories that give you meaning | Jane Goodall, Terry Crews & Dan McAdams

ChooseFI Pod #508:  508 | 5% SWR, Revealed Preferences, and the 3 Stories | Frank Vasquez

Four Idols Video:  https://tinyurl.com/4vua3eb2

Satisficing:  Satisficing - Wikipedia

Breathless AI-Bot Summary:

This episode tackles the psychology behind the "golden coffin" phenomenon – wealthy retirees who maintain sub 3% withdrawal rates, essentially ensuring they'll die with maximum assets. While justified as prudent planning, the real barriers to enjoying retirement wealth are more complex and fascinating.

We dive into cognitive science, exploring how the "possibility effect" (identified by Kahneman and Tversky) distorts our risk perception. Your brain amplifies the tiny probability of running out of money while downplaying the vastly higher probability of running out of time. A 55-year-old man has an 11.3% chance of dying within 10 years – yet many obsess over financial scenarios with less than 1% probability of occurring.

Beyond cognitive biases lies an identity crisis. Many successful investors have spent decades defining themselves through wealth accumulation. This "frugality inertia" becomes so embedded in self-image that spending feels wrong, even when mathematically sound. The financial services industry exploits these fears, selling products that promise impossible certainties while encouraging hoarding behaviors.

The solution? Reframing retirement spending around four evidence-based wellbeing categories: relationships, experiences, work avoidance (paying for freedom from tedious tasks), and giving. These categories reliably generate happiness returns far superior to watching account balances grow. For those struggling to make this psychological transition, books like "Falling Upward" (Rohr), "Strength to Strength" (Brooks), and "The Soul of Wealth" (Crosby) provide frameworks for evolving beyond accumulation as life purpose.

What retirement story are you living? The miser who dies rich but unfulfilled, or the transformed Scrooge who discovers generosity's joy? The choice defines not just your retirement, but your legacy.

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In this episode we answer emails from Tracy, Mike and "Some Call Me" Tim.  We discuss the speculations and gambles of Forex, portfolio transitions, the Vanguard Market Neutral Fund and moving overseas.  And we have a mystery guest reader!

Links:

Father McKenna Center Donation Page:  Donate - Father McKenna Center

Catching Up To FI Website:  Financial Independence - Catching up to FI

VMNFX Testfolio Comparative Analysis:  https://testfol.io/analysis?s=eFgblWT8SJO

VMNFX Home Page:  VMNFX-Vanguard Market Neutral Fund Investor Shares | Vanguard

Morningstar VMNFX:  VMNFX – Vanguard Market Neutral Inv Fund Stock Price | Morningstar

Breathless Unedited AI-Bot Summary:

Navigating the complex world of personal finance often means confronting tough questions about investments we don't fully understand, partners who approach money differently, and life transitions that demand portfolio adjustments. This episode dives deep into three listener questions that illuminate these challenges.

When Tracy's husband becomes deeply invested in forex trading despite a significant loss, she makes the bold decision to split their investment portfolios. This raises fascinating questions about marriage, money, and risk tolerance. Frank unpacks the reality of forex trading, explaining why it's neither an investment nor typically suitable for most individual investors. Drawing from his own trading experience in the 1990s, he distinguishes between disciplined speculation and outright gambling, offering clarity for anyone tempted by the allure of currency trading. As Tracy approaches her financial independence number, Frank provides thoughtful guidance on transitioning from an accumulation portfolio to a more conservative allocation while markets remain strong—wisdom applicable to anyone approaching their financial goals.

The exploration continues with an analysis of Vanguard's Market Neutral Fund, revealing how even traditional investment companies offer alternative strategies that many investors overlook. While this long-short fund provides impressive diversification benefits, its lackluster returns highlight the trade-offs investors must consider when pursuing uncorrelated assets. For listeners curious about expanding beyond conventional index funds, this segment offers valuable perspective on evaluating alternative investments.

Finally, for those contemplating international moves while managing US retirement accounts, Frank provides practical advice that cuts through confusion. By focusing on investment fundamentals rather than geographical considerations, he reminds us that solid financial principles transcend borders. Whether you're wrestling with a spouse's different investment philosophy, considering alternative assets, or planning an international life change, this episode delivers insights to help navigate your financial journey with confidence and clarity.

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In this episode we answer a question from Ness.  We have fun with The Untouchables, retirement clubs, Portfolio Visualizer and many other things. 

And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio.

To donate to the Top of the T-Shirt campaign and double your fun, please visit the Father McKenna Center donation page and note "Risk Parity Radio Match" when making your contribution.

Additional Links:

Father McKenna Center Donation Page:  Donate - Father McKenna Center

Portfolio Charts Free Charts:  Charts – Portfolio Charts

Portfolio Visualizer Tutorial Video:  Tutorial #4: Portfolio Visualizer Monte Carlo Simulator -- Introduction

Retirement Answer Man Case Study Podcast (start at minute six):  I Just Lost My Job. Can I Retire Now?

Portfolio Visualizer Simulation #1:  https://tinyurl.com/yuev3s59

Portfolio Visualizer Simulation #2: https://tinyurl.com/kjy5ur7n

Portfolio Visualizer Simulation #3:  https://tinyurl.com/yc2rstr7

Breathless Unedited AI-Bot Summary:

Tired of retirement planning approaches that feel more like crystal ball gazing than strategic analysis? In this episode, we demystify the often-confusing world of retirement planning tools and techniques, revealing how to achieve better results without expensive software or club memberships.

We dive deep into how free tools like Portfolio Visualizer can perform sophisticated retirement planning when used correctly – specifically by analyzing asset classes rather than ticker symbols. This approach not only provides access to decades of historical data but creates a more robust foundation for retirement decisions than the parameterized returns many paid services rely upon.

Through a detailed case study, we demonstrate how a risk parity-style portfolio improved a retirement plan's success rate from 85% to 96% compared to a traditional 60-40 portfolio. This significant enhancement required no additional savings or lifestyle changes – just smarter portfolio construction based on proven diversification principles that many financial advisors haven't incorporated into their practices.

The episode also examines retirement clubs that charge $600-900 annually, questioning whether their financial planning guidance justifies the cost when their approaches often lag behind current best practices. While these clubs may offer valuable social connections and psychological support for the transition to retirement, their portfolio construction recommendations frequently default to outdated models followed by excessive "padding" rather than optimization.

For DIY investors, we provide practical guidance on using free or low-cost tools like Portfolio Charts' heat map to stress-test portfolios and identify maximum drawdown periods – crucial information that many expensive planning tools don't clearly reveal. This approach helps you build true resilience into your portfolio structure rather than compensating for mediocre construction with excessive cash reserves.

Ready to take control of your retirement planning with sophisticated tools that won't cost you hundreds of dollars? Listen now to discover how to analyze your portfolio like a pro and potentially improve your retirement outcomes without paying for expensive software or memberships.

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