Risk Parity Radio

In this episode we analyze QYLD, the Global X Nasdaq 100 Covered Call ETF, using David Stein's Ten Questions to Master Investing:

1.  What is it?
2.  Is it an investment, a speculation, or a gamble?
3.  What is the upside?
4.  What is the downside?
5.  Who is on the other side of the trade?
6.  What is the investment vehicle?
7.  What does it take to be successful?
8.  Who is getting a cut?
9.  How does it impact your portfolio?
10.  Should you invest?

Additional links:

QYLD Fact Sheet:    QYLD-factsheet.pdf (globalxetfs.com)

QYLD Summary Prospectus:   Global X ETFs

QYLD Correlation Analysis:  QYLD Asset Correlations (portfoliovisualizer.com)   

QYLD Comparison Backtest in Golden Butterfly:  QYLD Backtest (portfoliovisualizer.com)

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In this episode we answer questions from Jamie, Zach, Keith, Ian, Aldo and Brad.  We discuss asset allocations in Roths vs. Traditional, the Risk Parity Radio logo, the virtues of long term treasury bonds, building your stock allocation, doing risk parity from Switzerland and short-term (daily) correlations. 

Then we move to our weekly portfolio reviews of the sample portfolios you can find at The Risk Parity Radio Portfolios Page

Links:

Portfolio Charts New Fund Finder:  FUND FINDER – Portfolio Charts

Optimized Portfolio M1 Selections:   "m1" | Optimized Portfolio

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In this episode we answer questions from Falco, Tim, Jeff, Adam, Phil, "Steve" and Nick about building an intermediate-life risk parity portfolio, a Ben Felix allocation video, building up or selling into a risk parity portfolio, a 42.5/42.5/15 portfolio, figuring it out for a UK national in the Middle East, setting it up after moving from Africa, and a bond basics review.  Whew!

Link to Adam's 42.5/42.5/15 backtest analysis:  Backtest Portfolio Asset Class Allocation (portfoliovisualizer.com)

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In this episode we answer questions from Russell, Carter, the Mysterious Visitor 4541, Own and Travis about portfolios in the accumulation phase, PFF, REET vs. VNQ/VNQI, going into drawdown with  a large taxable account, and inflation and TLT. 

Then we move to our weekly portfolio reviews of the sample portfolios you can find at The Risk Parity Radio Portfolios Page

Link to referenced Seeking Alpha Article on REITs:  
REET Vs. VNQI (ETF): The Better Way To Play International Real Estate | Seeking Alpha

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In this episode we address emails from Jon, Laura, Kevin and Brian about the problems with Wealthfront's "risk parity" fund, moving to Costa Rica on a risk parity portfolio, inflation-friendly asset classes and TIPS.

Links:

Article Re Performance of Risk Parity funds in March 202:  Quant Funds in COVID Market Rout | Markov Processes International

Wealthfront's description of its risk parity fund:  What is Risk Parity invested in? – Wealthfront Support

Wealthfront Annual Report:  risk_parity_annual_report.pdf (wealthfront.com)

Morningstar 2021 Diversification Landscape Report:  Diversification_Landscape_033021v2.pdf (morningstar.com)

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In this episode we, ahem, "discuss" the problem of Mindless Diversification.  Oh, yeah!  Then we tackle some emails from Craig, Falco, Wes, Justin, Matt, Brian and KC about the Aggressive Fifty-Fifty Sample Portfolio, distribution and re-balancing rules, the Vanguard Extended Duration Bond Fund, trust issues, and why we don't have guests.

The Article In Question:  Mindless Diversification Article

Why Some Old Rules Of Thumb Are Really Bad:  The "100 Minus Age" Rule Puts Retirees at Risk (thebalance.com)   

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

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In this Episode we answer emails from Aaron, Mark, Rob, Joel, Jake and the Mysterious Visitor 9380.  We talk taxes on gold, what's in Uncle Frank's portfolios, a Seeking Alpha article about constructing Risk Parity-style portfolios, BND vs. GLDM, and portfolio management.  And Trogdor!

Then we move to our weekly portfolio reviews of the sample portfolios you can find at The Risk Parity Radio Portfolios Page

Additional Links:

Taxation of Gold Article:  Tax-efficient investing in gold (journalofaccountancy.com)

Seeking Alpha Article:  Building A Risk-Parity Portfolio: An Example | Seeking Alpha

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Another Bonus Email Episode!  In this episode we answer emails from listeners John, Mitchell, Steve, Elisheva, Brian and Justin about an article about us, withdrawal rates for the experimental sample portfolios, transitioning into retirement at age 55 (twice!), a newsletter, putting you to sleep with RPR, the Hedgefundie Ultimate Adventure portfolio, muni-bonds and options strategies.

Links:

John G's Article:  Why I'm Unhappy when all my Investments go up - SmartMoneyToolbox

Portfoliocharts Portfolio Analyzer (input your own numbers):  MY PORTFOLIO – Portfolio Charts

All About The Hedgefundie Ultimate Adventure Portfolio:  HEDGEFUNDIE's Excellent Adventure (UPRO/TMF) - A Summary (optimizedportfolio.com)

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In this episode, we take on Listener Erik's request to analyze the TIAA Real Estate Account, QREARX, which we do using David Stein's Ten Questions to Master Investing:

1.  What is it?
2.  Is it an investment, a speculation, or a gamble?
3.  What is the upside?
4.  What is the downside?
5.  Who is on the other side of the trade?
6.  What is the investment vehicle?
7.  What does it take to be successful?
8.  Who is getting a cut?
9.  How does it impact your portfolio?
10.  Should you invest?

Additional Links:

QREARX Fact Sheet:  TIAA Real Estate Account Fact Sheet

QREARX FAQ:  REA FAQ 12.31.20 (tiaa.org)

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In this all mail-bag episode we answer questions from Brian, Ayne, Drew and Lana about shifting into risk-parity portfolios early, Vanguard fund options, advice if you have a significant real estate portfolio on the side, advice for young adult children and about what asset classes do well in inflationary environments.

Links:

Portfolio Charts Main Calculator Page:   MY PORTFOLIO – Portfolio Charts

Portfolio Charts Golden Butterfly Page:  Golden Butterfly – Portfolio Charts

Portfolio Charts Retirement Spending Calculator:  RETIREMENT SPENDING – Portfolio Charts

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

REIT Matrix:  REIT Correlations 

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