Risk Parity Radio

In this episode we answer emails from Kimbrough from Anchorage and anonymous Visitors from British Columbia and Denver.  We discuss fish hatching and slaughterhouses, long term treasury bond funds, the inherent problems and inefficiencies with many popular but inflexible withdrawal plans, and how we use our flexible 3-1-1 guidelines to match and maximize spending, fixing a cash hoarding problem and why you want a growth/value split in your stock allocations.

Links:

Security Analysis Podcast with Yours Truly:  Frank Vasquez: Risk Parity Investing Part 2 (securityanalysis.org)

VSG's Weird Portfolio:  Weird Portfolio – Portfolio Charts

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

Merriman Podcast re Best-In-Class ETFs:  Best in Class ETF 2024 Updates (paulmerriman.com)

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In this episode we answer emails from Steve, Mark, and Judy.   We take a frolic and detour into talking about going to law schools, talk about some Rob Berger videos and bucketeering, robo-advisor things and why they are not very helpful, and better choices.

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

Additional links:

Father McKenna Center Spring 2024 Newsletter:  Newsletter Spring 2024 - Father McKenna Center

Rob Berger Video on "Know Nothing" Portfolios:  Fed Chair Powell Just Taught A Masterclass On Investing (youtube.com)

Rob Berger Interview of Harold Evensky:  Conversation with the Father of the Bucket Strategy--Harold Evensky - YouTube

Rob Berger On "Bucket Strategies" Generally:  The Bucket Strategy is Flawed--Do this Instead - YouTube

Rob Berger On The "Never Retire" Retirement Strategy:  7 Reasons to Never, Ever Retire (even if you can) (youtube.com)

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In this episode we answer emails from Zane, Slim Jim, and Jim Kirk.   We discuss recent moves in world gold markets, good and bad mental models of collective action and critical events, including Mimetic Theory and fractal sand pile models, avoiding the physical metals racket, the data and evidence showing that retirees experience inflation at a much lower rate than the CPI (and most financial planners and DIYers get this completely wrong, resulting in bad planning), and the new global portfolio analysis article at Portfolio Charts (again).

Links:  

Retirement Spending Smile models:  What Is The 'Retirement Spending Smile'? | Retirement Researcher

Spending Trajectories After Age 65 Research Paper and  Summary:  Spending Trajectories After Age 65: Variation by Initial Wealth | RAND

Portfolio Charts Article Re Global Portfolios:  What Global Withdrawal Rates Teach Us About Ideal Retirement Portfolios – Portfolio Charts

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In this episode we answer emails from Anderson, Brian and Drew.   We entertain ourselves on 4/20 with Anderson's "Uncle Frank" Portfolio and learn something from it, discuss asset swapping for management of retirement accounts with a hat tip to Justin (Risk Parity Chronicles), and discuss the new Global Portfolio analysis and tools from Tyler at Portfolio Charts.

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

Additional links:

Anderson's "Uncle Frank" Portfolio:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

"How To Do An Asset Swap" Video From Justin:  How to Do an Asset Swap (youtube.com)

New Portfolio Charts Global Portfolio Analysis And Tools:  What Global Withdrawal Rates Teach Us About Ideal Retirement Portfolios – Portfolio Charts

Father McKenna Center Donation Page:  Donate - Father McKenna Center

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In this episode we answer emails from Kyle, Andrew, Sameer and James.  We discuss some portfolio comparisons of levered 60/40 portfolios, interpreting and comparing safe withdrawal rates from various calculators and their practical application in consideration of variable expenses and needs (our 3-1-1 flexible withdrawal plan),  the foolish consistencies of DIYer and financial planners who seem to enjoy discouraging retirement spending,  and recent articles about Fidelity's spat with some ETF providers.

Links:

Kyle's Portfolio #1:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

Kyle's Portfolios #1 and #2:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

Kyle's Portfolios #1, #2 and #3:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

Golden Butterfly Portfolio -- SWR And Other Characteristics:  Golden Butterfly Portfolio – Portfolio Charts

Larry Swedroe Interview About New Book and Factor Investing:  ‘Buffett really was not a great stock picker’: Financial researcher Larry Swedroe on how investors can emulate the billionaire investor – NBC Connecticut

Article #1 re Fidelity and Fees:  Fidelity Puts Nine ETF Firms on Notice That New Fees Are Looming - Bloomberg (archive.fo)

Article #2 re Fidelity and Fees:  Fidelity Adds Surcharge to ETF Platform | etf.com

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In this episode we answer an email from Ingrid.  We discuss target date funds in depth and why they are not good choices for investors.  We review their history and recent academic research that reveals the truth.  You may not like it, but we hope you can handle it.

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

Additional link:

Referenced Academic Paper Revealing The Awful Truth About Target Date Funds:  The Unintended Consequences of Investing for the Long Run: Evidence from Target Date Funds by Massimo Massa, Rabih Moussawi, Andrei Simonov :: SSRN

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In this episode we answer emails from Ed, Anderson and Joe.   We discuss assisting aging parents running out of money, Anderson's levered accumulation portfolio and locating the assets, and using the G Fund in a TSP as a short-term bond fund.

Links:

Portfolio Matrix Used to Analyze Anderson's Portfolio (insert allocations per podcast):  Portfolio Matrix – Portfolio Charts

Morningstar Article re G Fund:  How Good Is the Federal Government’s G Fund? | Morningstar

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In this episode we answer questions from Dale, Brad and Corey.  We discuss a new paper about US dollar dominance and the common narrative fallacies associated with that issue, using the Rule of 55 for 401(k) withdrawals, the Nicest Guy of FI, and the basics of constructing portfolios with high historical safe withdrawal rates.

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

Additional links:

Marketwatch Article:  Dethrone the dollar? 5 charts show how U.S. currency still rules world economy. - MarketWatch

Paper re Status of US Dollar:  delivery.php (ssrn.com)

Schwab Article re The Rule of 55:  Retiring Early? 5 Key Points about the Rule of 55 | Charles Schwab

DBMF Quarterly Review:  iMGP DBi Managed Futures Strategy ETF Update with Andrew Beer | April 2024 (youtube.com)

Andrew Beer Interview On The Development And Use Of Managed Futures In Diversified Portfolios:  SI290: Honey, I Shrunk the Trend-Following ft. Andrew Beer | Top Traders Unplugged

Portfolio Charts Portfolio Matrix Tool:  Portfolio Matrix – Portfolio Charts

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In this episode we answer emails from Jon, Eli, and George.  We discuss using the tools at Portfolio Charts, methods of charitable giving to our favorite charity, extreme podcast listening, what to invest in if you are speculating on inflation next year and other gambling problems, and applying the math of Shannon's Demon to show us why we should not let the Simplicity Principle tail wag the Holy Grail principle diversification dog when constructing diversified portfolios.

Links:

Father McKenna Center Donation Page:  Donate - Father McKenna Center

New Portfolio Charts Article re Gold and Global Safe Withdrawal Rates:  What Global Withdrawal Rates Teach Us About Ideal Retirement Portfolios – Portfolio Charts

Shannon's Demon Article from Market Sentiment:  Shannon's Demon - Market Sentiment

Shannon's Demon Article from Portfolio Charts:  Unexpected Returns: Shannon's Demon & the Rebalancing Bonus – Portfolio Charts

Shannon's Demon Article from World Scientific:  SWITCHING BETWEEN TWO LOSING STOCKS MAY ENABLE PARADOXICAL WIN: AN EMPIRICAL ANALYSIS (worldscientific.com)

Shannon's Demon Article from Breaking The Market:  The Great Age of Rebalancing Begins - (breakingthemarket.com)

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In this episode we answer emails from Jetson and Jon (x2).   We discuss good times to trade, transitioning to a risk parity style portfolio with sub-optimal components and related considerations, experimenting with and learnings from the tools at Portfolio Charts, including the Portfolio Matrix and Drawdown Analyzer, and Gooooold!

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

Additional links:

Father McKenna Center:  Home - Father McKenna Center

Portfolio Matrix Calculator:  Portfolio Matrix – Portfolio Charts

Portfolio Drawdowns Calculator:  Drawdowns – Portfolio Charts

Portfolio Charts "Ingredients" Article:  Three Secret Ingredients of the Most Efficient Portfolios – Portfolio Charts

Safe Withdrawal Rate Series Article about Gold:  Using Gold as a Hedge against Sequence Risk - SWR Series Part 34 - Early Retirement Now

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