Risk Parity Radio

In this episode we discuss an email from and conversation with Paul Merriman.  We follow up on his suggestion/request that we create an episode for beginning investors to help them get going  in a simple way that can work.  And then we embark on a very special trip.  Very.  Special.

Links:

The Four Phases of Saving and Investing for Retirement:  The Four Phases Of Saving For Retirement (kitces.com)   Earn = Kansas.  Save = Munchkinland.  Grow = The Roads To Emerald City.  Preserve = Emerald City.

Paul Merriman website:  Home - Paul Merriman

Paul Merriman Sound Investing podcast:  Podcasts - Paul Merriman

Paul Merriman Best In Class Funds:  Best-in-Class ETF Recommendations - Paul Merriman

Earn & Invest Podcast (#349) Interview of Paul Merriman:  Are We Leaving Money on the Table? — Earn & Invest (earnandinvest.com)

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In this episode we answer emails from Arun, Jeffrey and Chris.  We discuss using simple back-of-the-envelope estimation methods to solve for complex portfolio projections, using a risk parity style portfolio for intermediate accumulations, and re-cap annuity considerations from Episode 184.

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

Arun's question:  

"What type of portfolio would you suggest for below scenario. I can invest $x a month for y years and can let it sit for n years. After y+n years would like to start withdrawing at least .75x dollars per month perpetually. Value of x would be less than $1000 and value of y would be 5-10 years but depending on future need and market condition it can stay longer or shorter. Ideally would like to have n=0 but that might be too ambitious. Is there to tool to play with these variables that you know and what type of portfolio would you suggest."

Additional Links:

Risk Savvy book:  Risk Savvy: How to Make Good Decisions by Gerd Gigerenzer | Goodreads

Portfolio Visualizer Monte Carlo Simulator with Multi-stage Analyzer:  Financial Goals (portfoliovisualizer.com)

Rule of 72:  Rule of 72 - Wikipedia

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In this episode we answer questions from MyContactInfo, Wesley and Adam.  In a tour de force presentation, we discuss Michael Mauboussin's book, "The Success Equation:  Untangling Skill and Luck in Business, Sports and Investing", the implications of an all small-cap value portfolio and applying the ideas of Bruce Lee and Emerson to Jack Bogle's "Common Sense Investing".  And we also take a frolic and detour into the Twilight Zone.

Links:

CFA Institute Book Review the The Success Equation:  The Success Equation: Untangling Skill and Luck in Business, Sports, and Investing (a review) (cfainstitute.org)

Twilight Zone Episode Clips:  Twilight Zone: Of Late I Think Of Cliffordville - YouTube

Earn & Invest Podcast (#349) Interview of Paul Merriman:  Are We Leaving Money on the Table? — Earn & Invest (earnandinvest.com)

Rational Reminder Podcast Interview of Vanguard's Former CIO:  Episode 216: Gus Sauter: Vanguard's Former CIO on Indexing, Active Management, and Private Equity — Rational Reminder

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Aaaand we're gone!  Poof!

Back next week!

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In this episode we answer emails from Connor, Paul and Paul Z.  We discuss a new single bond ETF, Paul's risk parity style portfolio and AVUV vs. VIOV.  And THEN we our go through our weekly and monthly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio.

Additional Links:

Connor's Article:  Single-Bond ETFs Solve Some Key Investing Problems (wealthmanagement.com)

Analysis of Paul's Portfolio and Alternatives:  Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

Interview of Eduardo Repetto:  Episode 43: Bogleheads on Investing – guest Eduardo Repetto, host Rick Ferri – Rick Ferri, CFA

AVUV Webpage:  AVUV - Avantis® U.S. Small Cap Value ETF | Avantis Investors

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In this episode I answer a question from Charles, who has a terminal illness.  We go off topic and discuss books about dying, examples of people who did it well, and resources for short-term trading.

Links:

End of Life Series:  Barbara Karnes' End of Life Guideline Series - BK Books – BK Books

The Five Invitations:  The Book | The Five invitations: What Death Can Teach Us About Living Fully – by Frank Ostaseski

Taking Stock:  Jordan Grumet | Welcome to JordanGrumet.com

Blue Zones Vitality Test:  True Vitality Test by Blue Zones

Sit-Rise Test:  This test could predict how long you will live - YouTube

Shadow Trader Site:  ShadowTrader: Daily Market Trading News Stories & Market Education

Peter Reznicek Video: Peter Reznicek - ShadowTraders @ 1pm ET - How I prepare each morning to trade - YouTube

Tasty Trade:  tastytrade: A Financial Network for Options & Futures Trading | tastytrade

Market Wizards Books:  market wizards books schwager - Search (bing.com)

Big ERN Options Strategy:  Trading like an Escape Artist: How I made money in October trading S&P Futures Options with 2x leverage – Early Retirement Now

Kelly Criterion:  Kelly Criterion Definition (investopedia.com)

Ed Thorp Autobiography:  A Man For All Markets - Edward O. Thorp (edwardothorp.com)

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In this episode we answer emails from Gen, Greg and Nathan.  We discuss how to find funds using a fund screener and why you should not be using the investment account equivalents of blackberries and flip-phones any more, individual REIT selections, and value and growth data sources.   I forgot to mention that the other individual REIT we hold is WY, which invests in timber (and thereby missed another opportunity to play the lumberjack song.)

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

Additional Links:

Fund Screener:  Fund Screener (portfoliovisualizer.com)

Rob Berger Video About Vanguard's New Fees:  Vanguard Fees Are Going Up -- Here's Why and How to Avoid Them - YouTube

Investopedia Article -  Value vs. Growth in the S&P 500:  Value or Growth Stocks: Which Is Better? (investopedia.com)

Value vs. Growth Over Time:  Canterbury Investment Management - Value versus Growth: A Brief Historical View (canterburygroup.com)

DFA Matrix Book:  Matrix+Book+2020.pdf (squarespace.com)

Walk For McKenna:  Walk4McKenna - Father McKenna Center

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In this episode we answer questions from Andy and Todd.  We discuss the Buy, Borrow, Die Strategy and everything you wanted to know about the Host (or maybe not) and his approach.

Links:

Luke Burgis Book About Mimetic Theory:  Wanting: The Power of Mimetic Desire in Everyday Life by Luke Burgis | Goodreads

Barking Up The Wrong Tree Book:   Barking Up the Wrong Tree: The Surprising Science Behind Why Everything You Know About Success Is (Mostly) Wrong by Eric Barker | Goodreads

Interview of Rick Ferri About His Portfolio:  Show Us Your Portfolio: Rick Ferri - YouTube

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In this episode we answer emails from Micah, Steve and Keith.  We discuss the limit on the usefulness of Sharpe and Sortino ratios, helping out Steve's daughters with building and managing a portfolio for medium-length goals and what else Uncle Frank says to guide his adult kids with ant brains and grasshopper brains and comparing actual performances with Portfolio Visualizer models.

Links:

Portfolio Visualizer comparison of short term treasuries and gold:  Backtest Portfolio Asset Class Allocation (portfoliovisualizer.com)

PHYS ETF particulars:   Sprott Physical Gold Trust

Walk For McKenna:  Walk4McKenna - Father McKenna Center

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In this episode we answer emails from Justus (x2), Anderson and Blake.  We discuss life transitions, what I've learned over an evolving DIY investing career, and Blake's Pathway of FI. 

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

Additional Links:

Portfolio Charts Sample Portfolios:  Portfolios – Portfolio Charts

Risk Parity Chronicles Resources Page:  Resources - Risk Parity Chronicles

Kitces Four Phases Article:  The Four Phases Of Saving For Retirement (kitces.com)

Blake's Article:  Model-Portfolios-for-Every-Financial-Stage.pdf (pathwaytofi.com)

Blake's Model Portfolio Construction Paper:  Construction-and-Analysis-of-the-Pathway-to-FI-Model-Portfolios.pdf (pathwaytofi.com)

Morningstar Tool With International Fund:  VXUS – Portfolio – Vanguard Total International Stock ETF | Morningstar

Walk For McKenna:  Walk4McKenna - Father McKenna Center

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