In this episode we answer emails from Javier, Adam, and Jeff.  We discuss what to do with limited 401k options and the Macro Allocation Principle, revisit an academic article we discussed in Episode 251 with some additional critical thinking skills, and talk some about Corey Hoffstein's return stacking, developments in leveraged fund and the Pimco StocksPlus family.

Links:

Rational Reminder Video re Using Leverage:  Investing With Leverage (Borrowing to Invest, Leveraged ETFs) - YouTube

RSBT Fund Page:  Bonds Managed Futures - Return Stacked ETF (returnstackedetfs.com)

Lots of Articles About Leveraged ETFs:  Leverage | Optimized Portfolio

Morningstar Analysis of Pimco StocksPlus:  PSTKX – PIMCO StocksPLUS® Instl Fund Stock Price | Morningstar

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In this episode we answer emails from Javier, Heath and Joao.  We discuss Simplify's short VIX ETF, "SVOL", and the difficulties of investing in volatility, the anomalous circumstances of 2022 and how it affected treasury bonds, and a bit about taxation in Brazil (about which I really know nothing).

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:

Simplify's SVOL ETF:  SVOL Simplify Volatility Premium ETF | Simplify

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In this episode we answer emails from MyContactInfo and Chris.  We follow up on Episode 251 with a taxonomy of five withdrawal strategies described in an article from the CFA institute and discuss a "not really a withdrawal strategy" that is classified as a form of mental accounting and does not impact safe withdrawal rates (at least not in a positive manner).  We talk about how to classify annuities, bond ladders and portfolio-based withdrawal strategies.  And we thank Chris and our other charitable donors for their support.

Links:

CFA Institute Article:  Retirement Income: Six Strategies | CFA Institute Enterprising Investor

Money with Katie interview of Bill Bengen:  Does Early Retirement Still Work With 2023 Inflation? Featuring Bill Bengen | The Money with Katie Show

Allan Roth Article About His Bond Ladder:  The 4% Rule Just Became a Whole Lot Easier - Articles - Advisor Perspectives

Allan Roth Article Complaining About Morningstar Projections:  Challenging Morningstar’s Safe Withdrawal Rates - Articles - Advisor Perspectives

Father McKenna Center Donation Page:  Donate - Father McKenna Center

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In this episode we answer emails from Andreas and Brad.   We discuss algorithmic factor funds like AVUV vs. basic index factor funds, basic principles of portfolio construction, low volatility funds, and the rebalancing research of Corey Hoffstein.

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 Giving Page:   Donate - Father McKenna Center

Simplify Interview of Corey Hoffstein about rebalancing:  Keeping it Simple Ep. 21: Do I Feel Lucky? | Simplify

Corey Hoffstein Interview and Papers:  Rebalance Timing Luck - Newfound Research (thinknewfound.com)

Corey Hoffstein Interview Regarding Personal Portfolio:  Show Us Your Portfolio: Corey Hoffstein - YouTube

Corey Hoffstein Discussing the Return Stacking Strategy:  Corey Hoffstein on Return Stacking - YouTube

Optimized Rebalancing Article:  Optimal Rebalancing – Time Horizons Vs Tolerance Bands (kitces.com)

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In this episode we answer emails from Pete, MyContactInfo and Jenzo.   We discuss leveraged funds, a paper about holding them longer term and optimal leverage, analyzing leveraged portfolios, meta-concepts of retirement portfolio planning and how to separate the critical components of a withdrawal strategy (the dogs) from various management techniques, labeling methods and mental accounting (the tails),  and last year's scare paper about hyper-low safe withdrawal rates of poorly constructed international portfolios.

Links: 

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

Sample Optimized Portfolios Article:  What Is a Leveraged ETF and How Do They Work? (optimizedportfolio.com)

Analysis of UPRO vs S&P:  https://tinyurl.com/me4c2xj9

Analysis of TNA vs. IWM:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

Analysis of TMF vs. TLT:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

Portfolio Charts Risk/Reward Calculator:  RISK AND RETURN – Portfolio Charts

Portfolio Visualizer Efficient Frontier Tool:  Efficient Frontier (portfoliovisualizer.com)

Bond Funds vs. Bond Ladders:  Owning Individual Bonds vs. Owning a Bond Fund - A Wealth of Common Sense

Low Safe Withdrawal Rate Paper:  delivery.php (ssrn.com)

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In this episode we answer emails from Carmello, Trevor, Timothy and Andreas.  We discuss some of the history of the gold standard and inflation, leveraged funds, portfolio reviews, short sellers and Fidelity's recent forays into risk parity.

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:

Cross of Gold Speech Article:  Cross of Gold speech - Wikipedia

Optimized Portfolios Site on Leveraged Funds:  Leverage | Optimized Portfolio

Rational Reminder Video on Leverage:  Investing With Leverage (Borrowing to Invest, Leveraged ETFs) - YouTube

Fidelity's New Risk Parity Fund:  Fidelity Risk Parity Fund (FAPSX) | Fidelity Institutional

Fidelity's Presentation on its Risk Parity Fund:  Fidelity Liquid Alternative Funds Presentation | Fidelity Institutional

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In this episode we answer emails from Wesley, Mark and a different Mark.  And an errant comment from his Dude-ness, Alexi.  We discuss how municipal bond funds might be used in risk-parity style portfolios and how not, a couple of interesting newer financial planning calculators and the planning process I actually use instead to account for liquidity issues, asset allocations in accumulation when options are limited and the ins and outs of preferred shares funds like PFF.  And then we goof off.  Again.

Links:

Correlation Matrix with Municipal Bond Fund:  Asset Correlations (portfoliovisualizer.com)

ETF Research Center Financial Tool:  ETF Research Center (etfrc.com)

Projection Labs Financial Tool:  ProjectionLab - Simulate your financial future and plan for financial independence.

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In this episode we answer two emails from Alexi (a/k/a the "Dude") and another from Barry.  We discuss funds that are designed to take advantage of rising interest rates like RRH, RISR and PFIX, another Dude-constructed accumulation portfolio with leveraged funds and some portfolio construction rules of thumb, and the noisy-ness of correlation data and matrices.

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:

PFIX Webpage and Resources:  PFIX Simplify Interest Rate Hedge ETF | Simplify

The Dude's New Portfolio Constructions compared with S&P500:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

Portfolio Visualizer Correlation Tool:  Asset Correlations (portfoliovisualizer.com)

Bogleheads Post about Morningstar Correlation Data:  Morningstar Correlation Matrix - Bogleheads.org

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In this episode we answer emails from Clint, Jeff and Penny.  We discuss brokerage firms and solvency issues, estimating expenses for long retirements and basic tax considerations in portfolio management.

Links:

Rob Berger Video About Brokerages and Solvency:  What Happens to Our Investments if Schwab, Fidelity or Vanguard Collapse? - YouTube

Morningstar 2022 Retirement Report Download Page:  2022 Retirement Withdrawal Strategies Report | Morningstar

Portfolio Charts Article with Tax Loss Harvesting Pairs:  Harvesting the Fall: Why I Sold All My Bonds – Portfolio Charts

Go Curry Cracker Article Re Tax Savings:  Never Pay Taxes Again - Go Curry Cracker!

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In this episode we answer emails from Kevin, Graham and Boone.  We discuss the risk parity ETFs, RPAR and UPAR, leveraged portfolios, alternative assets, ETFs and some of the podcasts I'm listening to these days.

Links:

RPAR webpage:  RPAR Risk Parity ETF (rparetf.com)

Risk Parity Book Review:  Top 10 Risk Parity Resources: #10... Shahidi (2021) (riskparitychronicles.com)

CFA Institute Manual Article:  chapter-4-from-managing-multiasset-strategies-2018.pdf (callan.com)

Rational Reminder Video about Leverage:  Investing With Leverage (Borrowing to Invest, Leveraged ETFs) - YouTube

Sound Investing Podcast:  Sound Investing on Apple Podcasts

Money With Katie Podcast:  The Money with Katie Show

Money With Katie Portfolio Analysis Blogpost:  How to Diversify Outside of the Total Stock Market — Millennial Money with Katie

Ramit Sethi Podcast:  Podcast - I Will Teach You To Be Rich

Macro Trading Floor Podcast:  The Macro Trading Floor on Apple Podcasts

Eurodollar University Podcast:  General 2 — Eurodollar University

Gestalt University Podcast:  Resolve's Gestalt University on Apple Podcasts

Alpha Exchange Podcast:  Alpha Exchange on Apple Podcasts

Excess Returns YouTube Channel (Corey Hoffstein Episode):  Show Us Your Portfolio: Corey Hoffstein - YouTube

Retirement Planning Education YouTube Channel:  Retirement Planning Education - YouTube

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