Risk Parity Radio

In this episode we answer questions from Jeff, Geordi and Eames.  We discuss wrangling with a Fidelity advisors and assorted salespeople, the difference between naïve or static portfolio construction versus using crystal balls for that purpose, a modified Golden Ratio-style portfolio, the pitfalls of buy-write funds like JEPI and BALI and a small issue with the website.

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

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In this episode we answer emails from MyContactInfo, Kyle and Eric.  We discuss the pitfalls of retirement tools with help from Newman,  Bob Ross and a contribution question and our old semi-nemesis, TIPS.

Link:

Bill Bernstein TIPS Ladder Article:  Riskless at Age 104 - Articles - Advisor Perspectives

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In this episode we answer emails from Dave and Kanembou (from Chad).  We discuss the ins and outs of various data sets (as opposed to crystal balls), choosing a portfolio based on aggressiveness or conservativeness, related safe withdrawal rate issues and Donor Advised Funds.

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:

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

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In this jam-packed episode we answer questions from Luke, Ethan, and Garry.  We discuss a modified Golden Butterfly portfolio, some meta-withdrawal strategy ideas and concepts, a process for deciding what to do with oneself, small-cap vs. small-cap value investments, some esoteric international tax issues and the new QQQY gambling problem fund.  And throw in some Tom Waits to boot.

Links:

Portfolio Charts Portfolio Matrix Tool:  PORTFOLIO MATRIX – Portfolio Charts

Five Regrets of the Dying:  The Top Five Regrets of the Dying - Wikipedia

Stephen Kotler "Flow" Video -- Short Version:  How to enter ‘flow state’ on command | Steven Kotler for Big Think - YouTube

Ethan's International Tax Article:  Nonresident alien investors and Ireland domiciled ETFs - Bogleheads

QQQY Summary Prospectus:  Microsoft Word - qqqy_497k-091523.docx (defianceetfs.com)

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In this episode we answer an email from Jeffrey about the "4% Rule".  We discuss its origins, its three parameters (portfolio construction, time frame, and withdrawal mechanism), how it works, what it means and doesn't mean, its uses and misuses and how to make adjustments to improve your own outcomes.

And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio.   We have a rebalancing of the Levered Golden Ratio portfolio.

Additional links:

Bill Bengen's Original 1994 Safe Withdrawal Rate Paper:  FPA Journal - The Best of 25 Years: Determining Withdrawal Rates Using Historical Data (financialplanningassociation.org)

2022 Morningstar Report on Withdrawal Strategies:  Six Retirement Withdrawal Strategies that Stretch Savings | Morningstar

Risk Savvy Video Lecture:  Risk Savvy: How to Make Good Decisions - YouTube

Bias-Variance Dilemma Dartboard Explanation (also listen to Episode 49 of this podcast):  WTF is the Bias-Variance Tradeoff? (Infographic) (elitedatascience.com)

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In this episode we answer emails from Brown, Justin, MyContactInfo and an Anonymous Trending Value Investor.  We discuss investing in baskets of property & casualty insurance companies for effective diversification, what's happening at Risk Parity Chronicles, general thoughts about brokerages for DIY investors and an assortment of leveraged momentum-based strategies.

Links: 

Walk4McKenna:  Walk4McKenna - Father McKenna Center

KBWP Portfolio:  KBWP – Portfolio – Invesco KBW Property & Casualty Ins ETF | Morningstar

Portfolio Visualizer of KBWP vs. Direct Indexes:  https://tinyurl.com/4sfh3s49

Risk Parity Chronicles:  Risk Parity Chronicles

AVGV Article:  AVGV ETF Review - Avantis All Equity Markets Value ETF (optimizedportfolio.com)

Swedroe Article on Diversification:  How to think differently about diversification | TEBI (evidenceinvestor.com)

Anonymous Factor Regression Analysis:  https://tinyurl.com/2vymptuz

Anonymous Portfolio Analysis:  https://tinyurl.com/yzcwazdy

Trending Value Blog Post:  100% Factor Focused Equities vs Diversification Reigns Supreme (pictureperfectportfolios.com)

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In this episode we answer emails from Owen, Jeff and Will.  We discuss the commonly believed misinformation about TIPS, the ins and outs of quality dogs and investing principles, and talk about backtesting data and how it is used and misused.

And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio.   We have a rebalancing of the Levered Golden Ratio portfolio.

Additional links:

Bloomberg Presentation on How Various Assets Perform in Inflationary Environments:   MH201-SteveHou-Bloomberg.pdf (markethuddle.com)

Market Huddle Video discussing Bloomberg Presentation:  To Survive Disasters, You Need Smiles (guest: Steve Hou) - Market Huddle Ep.201 - YouTube

Risk Parity Chronicles series on TIPS:  Eight Observations About TIPS (riskparitychronicles.com)

Bill Bernstein TIPS Ladder Article:  Riskless at Age 104 - Articles - Advisor Perspectives

Walk4McKenna:  Walk4McKenna - Father McKenna Center

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In this episode we answer emails from Graham, Hydromod and Katie.  We discuss a couple new funds from Avantis, AVGE and AVGV, and creating a portfolio with those and RSBT, Hydromod's Okay Adventure portfolio management techniques with a levered risk parity style portfolio, and Katie's questions about buying a house with her partner.  And we make fun of our children, Squidward and Patrick.

Links:

Walk4McKenna:  Walk4McKenna - Father McKenna Center

AVGE Fund Review:  AVGE ETF Review - Avantis All Equity Markets ETF (optimizedportfolio.com)

ADGV Fund Review:  AVGV ETF Review - Avantis All Equity Markets Value ETF (optimizedportfolio.com)

Hydromod Link #1:  HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs] - Bogleheads.org

Hydromod Link #2:  Refinements to Hedgefundie's excellent approach - Bogleheads.org

Hydromod LInk #3:  Hydromod's Okay Adventure: Leverage, Momentum, and Risk Management - Bogleheads.org

Hydromod Portfolio Visualizer Link:  Test Tactical Allocation Models (portfoliovisualizer.com)

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In this episode we answer emails from Justin of Risk Parity Chronicles and Chris.  We discuss Justin's new blogpost and a new fund that mixes stocks and managed futures, RSST, and follow up on Episode 288 with some useful references from Chris.

And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio.   We have a rebalancing of the Levered Golden Ratio portfolio.

Additional links:

Justin's Blog Post:  Quick Musings on RSST (riskparitychronicles.com)

Corey Hoffstein's Return Stacked Portfolio:  Show Us Your Portfolio: Corey Hoffstein - YouTube

Andrew Beer Interview on Forward Guidance:  How Hedge Funds Take Too Much Of Investors' Money (Way Too Much) | Andrew Beer - YouTube

Wikipedia Article about Modern Portfolio Theory: Modern portfolio theory - Wikipedia

MIT Opencourseware for Finance and MPT: Ses 14: Portfolio Theory II - YouTube

Khan Academy Video on Normal Distributions:  Introduction to the normal distribution | Probability and Statistics | Khan Academy - YouTube

Normal Distribution Calculator:   Normal Distribution Applet/Calculator (uiowa.edu)

Walk4McKenna:  Walk4McKenna - Father McKenna Center

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In this episode we respond to emails from Matt, MyContactInfo, Alexi (a/k/a "Dude") and Sharon.  We follow up on Matt's email from Episode 286, talk more about using Portfolio Visualizer and safe and perpetual withdrawal rates, Allan Roth's critique of Wade Pfau's analysis and article and related issues, and individual bonds vs. bond funds.

Links:

Matt's Current Portfolio Monte Carlo Sim:  Monte Carlo Simulation (portfoliovisualizer.com)

Similar Allocation Monte Carlo Sim:  https://tinyurl.com/2p8twtdp

Golden Butterfly Monte Carlo Sim:  https://tinyurl.com/54c9b68x

Modified Golden Ratio Monte Carlo Sim:  https://tinyurl.com/4pca2sdh

AQR Paper on Trend Following:  A Century of Evidence on Trend-Following Investing (aqr.com)

Retirement & IRA show (Episode EDU #2334):  Reexamining The Fun Number, MDF and Secure Income: EDU #2334 - The Retirement and IRA Show

Advisor Perspectives Article #1:  Are Fixed Indexed Annuities More Efficient Than Bonds? - Articles - Advisor Perspectives

Advisor Perspectives Article #2:  Challenging Morningstar’s Safe Withdrawal Rates - Articles - Advisor Perspectives

Wealth of Common Sense Article re Epidemic of Over-saving:  You Probably Need Less Money Than You Think For Retirement - A Wealth of Common Sense

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

Walk4McKenna:  Walk4McKenna - Father McKenna Center

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