In this episode we answer emails from Matthew, Matthew and Matthew. Our development has apparently been arrested. We discuss basic principles and economic history pertaining to inflation, a levered accumulation portfolio and why private real estate platforms are largely just a "meh" kind of investment. 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: When Money Dies: When Money Dies: The Nigh...
Feb 04, 2024•39 min•Season 4Ep. 316
In this episode we answer emails from Paulo, Phil, and Visitor 5858. We discuss cognitive biases in the context of long-term care and unexpected medical expenses, follow ups on Episodes 307 and 308, David Stein's "garden approach" to investing, and what the purpose of gold is in a diversified portfolio. And talk about our recent vacation in Peru. Links: Peter Attia's "Outlive" book: Outlive: The Science & Art of Longevity - New Book by Peter Attia (peterattiamd.com) "Happy Body" book: The Ha...
Feb 01, 2024•38 min•Season 4Ep. 315
In this episode we answer emails from Paul, Greg and Stuart. We discuss various portfolio visualizer analyses, correlations, Sharpe and Sortino ratios and issues pertaining to rebalancing. Links; Paul's Truncated Analysis: https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&sl=3fTid2mNzw2PPRhYmjAGGz Longer Analysis with More Data: https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&sl=2PBlJj89KNGhCiNBkCDMaV Larry Swedroe's Portfolio: Show Us of You...
Jan 17, 2024•28 min•Season 4Ep. 314
In this episode we answer emails from Mr. Klingon, Bob, MyContactInfo, and Ralph. We discuss the Macro-Allocation Principle and Accumulation Portfolios, using a value-tilt for decumulation, the ins and outs of Monte Carlo simulations, Dr. Who and using gold in an accumulation portfolio. 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: Monte Carlo Analysis of 80/20 Portfolio on Portfolio Visua...
Jan 14, 2024•36 min•Season 4Ep. 313
In this episode we answer emails from Allison, Kenny and Steve. We discuss the methods and madnesses of financial media and the industry, modeling financial "experts" as hedgehogs and foxes, US dollars and debt, and correlations between treasury bonds and stocks, why portfolio income is just part of total returns and is not special, and incorporating managed futures into a Golden Ratio-style portfolios. Links: Duke Paper on Treasury/Stock Market Correlations: delivery.php (ssrn.com) Picture Perf...
Jan 11, 2024•32 min•Season 4Ep. 312
In this episode we answer emails from Kyle, Andy, Eric and Bluto. We discuss datasets at Portfolio Visualizer, guidelines for making allocation changes in a portfolio generallly and with managed futures, managed futures funds DBMF, KMLM and CTA and distribution issues, and EconoMe Conference 2024. 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 Donation Page: Donate - F...
Jan 07, 2024•33 min•Season 4Ep. 311
In this episode we do our annual portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio and compare them with various commercial reference portfolios. And entertain a four-year old child and our adult offspring. Support the show
Jan 04, 2024•27 min•Season 4Ep. 310
In this episode we answer emails from Slippery Steve, Keith, Brian, and Kyle. We discuss a momentum allocation strategy called "the 12% Solution" and complex allocation strategies in general, preferred shares and preferred shares funds, notions about correlations from Rick Ferri's All About Asset Allocation book (pub. 2005 and 2010), putting the Simplicity Principle in it's proper context (not the first priority), and a fun listener-provided sound clip. Link: Father McKenna Center Donation Page:...
Dec 31, 2023•45 min•Season 4Ep. 309
In this rather short episode we answer emails from Ralph, Scott, Eric, the Mysterious Visitor 9575, and Steven. We discuss my recent absence and predilections for silliness, a recent podcast from the Inflation Guy about safe withdrawal rates and coming updates to the website. Links: Inflation Guy Podcast Episode: Ep. 92: Safe Withdrawal Rates - Accounting for Inflation | Cents and Sensibility: the Inflation Guy Podcast (podbean.com) Risk Parity Chronicles: Risk Parity Chronicles Father McKenna C...
Dec 28, 2023•17 min•Season 4Ep. 308
In this episode we answer emails from Keith, Pete and Tim. We discuss developments in factor-based investing, portfolio transitions, RMDs, the recent Cederburg paper (again) and what goes on Down Under. And another visit from Lee-roy Jenkins. 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 Donation Page: Donate - Father McKenna Center Charity Navigator Score For the Fat...
Dec 24, 2023•38 min•Season 4Ep. 307
In this episode we answer emails from Jenzo, Priah and Matt. We discuss a levered portfolio and tracking errors, the limitation of Scott Cederburg's latest academic paper, bootstrapping -- what it is and how it works --, what "blend" means in factor-speak, and some pitfalls with Portfolio Visualizer's datasets, And also the upcoming EconoMe Conference in March 2024 with a discount code for our listeners, "riskparityradio": Links: EconoMe Conference: EconoMe Conference - March 15th-17th, 2024 Aca...
Dec 21, 2023•33 min•Season 4Ep. 306
In this episode we return from hiatus to answer emails from Popeye, Clint and Mr. Klingon. We discuss a JP Morgan report, giving to the Father McKenna Center, adventures with a bad planner-provided portfolio and how to fix it, and that cowbell known as small cap value. 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: JP Morgan Reports: Guide to the Markets | J.P. Morgan Asset Management (jpmo...
Dec 18, 2023•41 min•Season 4Ep. 305
In this episode we answer emails from Visitor 5970, Frank, Alexi (a/k/a "the Dude") and Paul. We discuss the bond funds in the TSP, the Catching Up To FI podcast, Wealthfront's atrocious attempt at a risk parity fund and the Pinwheel Portfolio. 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: TSP F Fund: F Fund | The Thrift Savings Plan (TSP) Catching Up To FI podcast on YouTube: Catching up ...
Nov 19, 2023•31 min•Season 4Ep. 304
In this episode we answer emails from Steve, Jeff and Kenny. We discuss the complex foibles of Empower/Personal Capital portfolios and transitioning them. investing in gold and silver and tax treatments, and using the Vanguard Wellesley Fund as a model for very conservative investors. 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: Rob Berger Video about Investing In Gold: How to Buy Gold (W...
Nov 12, 2023•43 min•Season 4Ep. 303
In this episode we answer emails from William, Tyler and Builderman. We discuss making changes in treasury bond fund allocations and the foibles of interest rate crystal balls, using the Portfolio Visualizer Monte Carlo simulator to model Golden Ratio style portfolios and musings about Iowa farmland and other family dynasty-type investments. And we Fight, Fight, Fight for Iowa. Errata: I said "Large Cap Value" in the answer to Tyler's question when I meant "Large Cap Growth." Doh! And THEN we ou...
Nov 04, 2023•37 min•Season 4Ep. 302
In this episode we answer emails from Alexi (a/k/a "the Dude"), MyContactInfo and James. We discuss a couple new ETFs, CAOS and AHLT, follow up on earlier discussions about retirement calculators and investing in long term treasury bonds (VGLT and EDV). 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: CAOS on Morningstar: CAOS – Alpha Architect Tail Risk ETF – ETF Stock Quote | Morningstar Kh...
Oct 29, 2023•33 min•Season 4Ep. 301
In this episode we answer emails from Mark, Mark and Cody. We discuss what first Mark learned by investigating JEPI, the history of investing in gold over the past 100 years and how that may affect the data, and potential data limitations in Portfolio Visualizer on very long Monte Carlo simulations. Bonus Links: The Mysterious London Gold Pool: London Gold Pool - Wikipedia Gold Mining Shares In the Great Depression: Gold Stocks Were Financial Saviors During The 1930s | Gold Eagle (gold-eagle.com...
Oct 26, 2023•29 min•Season 4Ep. 300
In this episode we answer questions from BuilderMan, Drew and MyContactInfo. We discuss how to incorporate farmland and other illiquid, income-producing assets in retirement expense planning, the perilous process of trying to manage a portfolio based on expert picks -- here, Ray Dalio -- and why venture capital may not be so smart. And then we discuss the new Risk Parity Chronicles Monthly Roundup and a rebalancing of the Accelerated Permanent Portfolio sample portfolio. And we sing the Iowa Cor...
Oct 19, 2023•36 min•Season 4Ep. 299
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 ...
Oct 15, 2023•37 min•Season 4Ep. 298
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 Support the show
Oct 11, 2023•30 min•Season 4Ep. 297
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 C...
Oct 08, 2023•34 min•Season 4Ep. 296
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...
Oct 05, 2023•35 min•Season 4Ep. 295
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. ...
Oct 01, 2023•47 min•Season 4Ep. 294
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 & Casualt...
Sep 28, 2023•36 min•Season 4Ep. 293
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 Asset...
Sep 25, 2023•50 min•Season 4Ep. 292
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 Equi...
Sep 21, 2023•41 min•Season 4Ep. 291
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...
Sep 18, 2023•27 min•Season 4Ep. 290
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/2p8t...
Sep 13, 2023•46 min•Season 4Ep. 289
In this episode we answer a loooooong email from Kevin. We discuss how to use backtesting and Monte Carlo simulations and how they related to safe and perpetual withdrawal rates, classic and modified Risk Parity-style portfolios, assorted variables and metrics, sizing allocations, Kevin's overall portfolio. And conclude with Monty Python and Kevin singing. And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio . Addit...
Sep 10, 2023•1 hr 1 min•Season 4Ep. 288
In this episode we answer emails from Chas, MyContactInfo and JDM. We discuss momentum-based funds and strategies (see also Episodes 218, 231 and 234), the inherent difficulties of trying to use GDP and other macro-economic data to make investing decisions and the basics of implementing a Golden Butterfly portfolio. Links: AQR Article -- Fama on Momentum: Fama on Momentum (aqr.com) Interview of Professor Fama: INVESTORS FROM THE MOON: FAMA (top1000funds.com) Chas' Asset Correlation Analysis: Ass...
Sep 07, 2023•24 min•Season 4Ep. 287
