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.io

Allocate Smartly Website:  What We Do - Allocate Smartly

Interactive 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.

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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 Center

Note that the usually "Amusing Unedited AI-bot Summary" was so ridiculously inaccurate I had to omit it.

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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 | ChooseFI

Father McKenna Center Main Donation Page:  Donate - Father McKenna Center

Portfolio 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.

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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 Center

Father McKenna Center Walk4McKenna Page:  Walk4McKenna - Father McKenna Center

Amusing 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.

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In this episode we answer emails from Brian, JD and Andrew.   We discuss using leverage in portfolios (again!), gold ETFs and early retirement considerations and withdrawal strategies. 

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 Forget About Money Podcast:  🎲 Risk Parity: The Secret to a 5% Safe Withdrawal Rate! | Frank Vasquez 🏆 (youtube.com)

Ben Felix Video On Leverage:  Investing With Leverage (Borrowing to Invest, Leveraged ETFs) (youtube.com)

Optimized Portfolios Website:  Optimized Portfolio - Investing and Personal Finance

ETF Database -- Gold ETFs:  Gold ETF List (etfdb.com)

PHYS Fund Article:  Tax Information - Physical Gold Trust (sprott.com)

Portfolio Charts Withdrawal Rates Calculator:  Withdrawal Rates – Portfolio Charts

Portfolio Charts Retirement Spending Calculator:  Retirement Spending – Portfolio Charts

Morningstar Report re Variable Withdrawal Strategies:  Six Retirement Withdrawal Strategies that Stretch Savings | Morningstar


Amusing Unedited AI-bot Summary:

Ready to rethink your investment strategy? Uncover the secrets of leveraging your portfolio from insights gleaned from industry titans like Ray Dalio and practical advice for everyday investors. We promise you'll walk away with a new perspective on the benefits and risks of using leverage, tips on incorporating leveraged ETFs into your own portfolio, and a treasure trove of resources including the Optimize Portfolios site and an enlightening video by Ben Felix. This episode is packed with knowledge that can transform how you approach your investments.

But that's not all—we're spicing up this financial discussion with a revisit to one of the most memorable moments in film history. Relive the iconic scene between James Bond and Goldfinger, dissecting the thrilling exchange and the unforgettable line, "No, Mr. Bond, I expect you to die." We'll break down Bond’s daring attitude against Goldfinger’s ruthless intent, highlighting why this scene is etched in cinematic lore. A blend of financial wisdom and pop culture nostalgia, this episode promises to both inform and entertain. Tune in and join the conversation!

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In this episode we answer emails from Phil, MyContactInfo, and Eric.  We discuss implementing factor investing and making portfolio adjustments in a risk-parity style portfolio, HECOMs and other considerations about reverse mortgages and buffered products, the fundamental problems with IUL that need to be accounted for before using it, and just how rich you probably need to be to be using insurance products as investments.  Hint:  You are not that rich.

Links:

Swedroe Factor Investing Book:  Your Complete Guide to Factor-Based Investing: The Way Smart Money Invests Today by Andrew L. Berkin | Goodreads

Long View Podcast About HECOMs:  Don Graves and Wade Pfau: How - The Long View - Apple Podcasts

Andy Panko Cautionary Video About IUL:  Beware of misleading Indexed Universal Life insurance ("IUL") illustrations (youtube.com)

Andy Panko IUL Critique On Big Picture Retirement Podcast:  Unmasking the IUL Sales Pitch with Andy Panko (bigpictureretirement.com)

Private Placement Life Insurance:  How Does Private Placement Life Insurance Work? - ValuePenguin

Amusing Unedited AI-Bot Summary:

Is your portfolio prepared for the next economic downturn? Join us on this episode of Risk Parity Radio as we tackle an intriguing email from Phil, a listener from Portugal contemplating a major portfolio overhaul. We dig deep into the nuances of factor investing, particularly momentum and profitability factors, and offer critical advice on the potential risks of reducing bond allocations in favor of equities. We emphasize the importance of leveraging financial analysis tools like Portfolio Charts and Portfolio Visualizer to make informed decisions, and stress the need for a balanced approach throughout both the accumulation and decumulation phases of investing.

We also navigate the labyrinth of investment strategies and financial products, evaluating the pros and cons of dollar-cost averaging amidst market volatility, and scrutinize costly options like Home Equity Conversion Mortgages (HECMs) and Indexed Universal Life (IUL) insurance products. Highlighting the potential pitfalls of these profit-driven offerings, we advocate for well-diversified portfolios as the cornerstone of robust financial planning. Tune in to discover practical tips on managing taxable accounts, avoiding misleading insurance products, and achieving optimal portfolio performance, all while staying grounded in sound financial principles.

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In this episode we answer emails from Robert, Jamie and Richard.  We discuss transitioning away from a Boglehead Three Fund portfolio due to its obsolete nature, a query about the DBMF prospectus and an early retirement with a 70/30/10 risk-parity style portfolio in the face of some spurious Sonia-like objections.

Links:

Father McKenna Center Donation Page:  Donate - Father McKenna Center

Merriman Best-In-Class ETF List:  Best-in-Class ETF Recommendations | Merriman Financial Education Foundation (paulmerriman.com)

Morningstar Portfolio Analysis Of VTI:  VTI – Portfolio – Vanguard Total Stock Market ETF | Morningstar

VXUS:  VXUS – Portfolio – Vanguard Total International Stock ETF | Morningstar

AVDV:  AVDV – Portfolio – Avantis International Small Cap Val ETF | Morningstar

AVES:  AVES – Portfolio – Avantis Emerging Markets Value ETF | Morningstar

Early Retirement Now Spreadsheet Toolbox:  An Updated Google Sheet DIY Withdrawal Rate Toolbox (SWR Series Part 28) - Early Retirement Now

Amusing Unedited AI-bot Summary:

What if your international and bond funds aren't providing the diversification you think they are? On this episode of Risk Parity Radio, we address Robert's inquiry about optimizing his family's portfolio during the accumulation phase. We'll dissect the limitations of total international funds when paired with a U.S. S&P 500 or total market fund, and why they may fail to deliver the diversification you seek. We'll also explore Robert's proactive strategy of reallocating bond investments into stock funds during market downturns and discuss the merits of increasing U.S. stock exposure while rethinking the necessity of international holdings.

We'll further challenge the conventional wisdom of international versus domestic funds and introduce modern alternatives that can bring true diversification to your portfolio. Recommendations from the Merriman Foundation, such as AVDV and AVES, are highlighted for their potential to balance your investments by tilting towards small-cap and value stocks in international markets. Lastly, we dive deep into the complexities of fund disclosures and benchmarks, offering alternative methods to evaluate funds more effectively. Gain insights that will guide you toward a more strategic and diversified investment approach for long-term growth.

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In this episode we answer emails from Chris, Andrew and Jenzo.  We discuss portfolio, forms of leverage in leveraged portfolios, transitioning to a Golden Butterfly portfolio, and working with your spouse productively on your finances.

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:  Home - Father McKenna Center

Article re Margin vs. Leveraged ETFs:  Margin Trading vs. Leveraged ETFs | Cumberland Advisors

Optimized Portfolios:  Optimized Portfolio - Investing and Personal Finance

Leveraged ETFs Article:  Double-Digit Numerics - Articles - The Big Myth about Leveraged ETFs (ddnum.com)

Warren Buffett's Alpha Article:  Full article: Buffett’s Alpha (tandfonline.com)

Gottman -- "Eight Dates" Book:  Eight Dates: Essential Conversations for a Lifetime of Love (gottman.com)

Amusing Unedited AI-bot Summary:

Ever wondered if using margin or leveraged ETFs is the smarter choice for your investment strategy? This week on Risk Parity Radio, we promise to shed light on this ongoing debate. As we kick off the episode, we liken our podcast to a dive bar of personal finance where humor enthusiasts and seasoned investors alike can find common ground. With a lively introduction, we announce the grand unveiling of our weekly portfolio reviews for eight sample portfolios available on our website. An email from Chris sets the stage for a deep dive into the nuances of leveraging investments using margin or box spreads, responsible leverage, and current rates, all while thanking our generous listeners for their support of the Father McKenna Center.

Are high margin rates making you reconsider your investment strategy? We dissect this dilemma by exploring the current landscape and why leveraged ETFs might just be your best bet. With a focus on ETFs like NTSX and UPRO, we suggest additional resources such as Optimized Portfolios to help you navigate your options. Inspired by listener feedback, we also touch on the concept of optimal leverage, referencing studies like "Warren Buffett's Alpha," and discuss the importance of consistent investing strategies over market timing when building a risk-parity portfolio over the next five years.

Ready for some good news? This has been an exciting week in the market, with gains across the board. From the S&P 500 to managed futures, everything is up, and our eight sample portfolios are reaping the benefits. We highlight the standout performances of newer and experimental portfolios like the Levered Golden Ratio and the Optra Portfolio. To wrap things up, Frank Vasquez delivers a spirited and humorous sign-off, reminding us to consult with personal advisors before making any financial decisions. Tune in for a rollercoaster of insights and laughs that you won't want to miss!

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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 Center

Amusing 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.

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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 Center

Portfolio Visualizer Monte Carlo Simulator:  Monte Carlo Simulation (portfoliovisualizer.com)

Portfolio Charts Portfolio Matrix Tool:  Portfolio Matrix – Portfolio Charts

Early Retirement Now Toolbox:  An Updated Google Sheet DIY Withdrawal Rate Toolbox (SWR Series Part 28) - Early Retirement Now

Testfolio Calculator:  testfol.io

Geometric 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 | Goodreads

More Than You Know Book:  More Than You Know: Finding Financial Wisdom in Unconventional Places by Michael J. Mauboussin | Goodreads

Merriman 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 | Dimensional

Truncated 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. 

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