In this episode we answer emails from Melissa, Neal, Mark and Mike. We discuss a missing link from Episode 7 and a substitute for it, the podcast distribution, moving from an accumulation portfolio in a taxable account to a retirement portfolio efficiently, and considerations when incorporating international (non-U.S.) funds.

Links:

Three Ingredients Article: Three Secret Ingredients of the Most Efficient Portfolios – Portfolio Charts

Merriman ETF Recommendations: Best-in-Class ETF Recommendations | Merriman Financial Education Foundation


Amusing Unedited AI-Bot Summary:

Unlock the secrets of do-it-yourself investing with Risk Parity Radio, where listener queries drive our exploration of effective financial strategies. Ever wondered how to craft a risk parity portfolio as you approach retirement? We tackle this and more, including navigating the world of taxable accounts, minimizing taxes, and managing significant expenses like a house down payment. Melissa's email about a broken Ray Dalio link becomes an opportunity to explore alternative resources, while Mark's playback issues on Apple Podcasts spark our gratitude for community feedback. You'll also discover the nuances of transitioning to a risk parity portfolio without opening new accounts, and the surprising overlaps between VTI and VUG.

Ready to rethink international diversification? While some portfolios skip international funds, they still provide global exposure through assets like global value-tilted funds and Chinese A shares. We discuss why this approach might suffice, as international funds often mirror US stocks, especially in large caps. Instead, our focus shifts to balancing value, growth, and size using small-cap value funds from Avantis or DFA. With flexible templates and key diversification metrics, you'll learn to construct a robust portfolio without getting lost in geographic diversifications. Tune in, and reshape your investing toolkit with practical insights and empowering strategies.

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In this episode we answer emails from Jenny, Arun and Jeff. We discuss setting up a risk parity style portfolio for an elder relative, what to do with 529 money and college funds when you are getting close, and the use of risk parity style portfolios for intermediate goals or accumulation.

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

Additional links:

Yours Truly On The Earn & Invest Podcast: Why Risk Matters w/ Frank Vasq - Earn & Invest - Apple Podcasts

Value Stock Geek's Weird Portfolio: Weird Portfolio – Portfolio Charts

Jared Dillian And The Awesome Portfolio: Show Us Your Portfolio: Jared Dillian

Father McKenna Center Donation Page: Donate - Father McKenna Center

Amusing Unedited AI-Bot Summary:

What if you could unlock the secrets of risk parity and transform your investment strategy? Join us on Risk Parity Radio as we explore how strategic gold allocation and portfolio diversification can revolutionize your financial journey. Dive into the humor-laden world of market fluctuations and portfolio reviews, and learn from our recent discussion on the Earn and Invest podcast with Jordan Grumet about integrating risk parity into modern portfolio theory. We also respond to a thoughtful email from Jenny, a dedicated Patreon supporter, who's crafting a risk parity portfolio for her mother-in-law. Get insights on asset allocation, the timing of gold investments, and how to utilize current market conditions to make savvy decisions.

In this episode, we delve into diversifying investment strategies during the accumulation phase, particularly for DIY investors like Jeff, a mid-40s Gen Xer contemplating a 401k rollover. Explore a variety of strategies, including Tyler's Golden Butterfly, the Weird Portfolio by Value Stock Geek, and Jared Dillian's Awesome Portfolio. Discover how these can complement ventures in real estate or business, and draw inspiration from Bruce Lee's philosophy to tailor an approach uniquely your own. Whether you're a novice or a seasoned investor, expect to walk away with practical advice and fresh perspectives to enhance your financial strategy.

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In this episode we answer emails from James, MyContactInfo and Cy. We discuss using silver in addition to gold in a portfolio, review again why many "options strategy funds" and other complex ETFs are generally a waste of space in a portfolio and talk about a recent Andrew Tobias interview and the history of DIY investing.

Links:

Eric Balchunas Interview: Eric Balchunas on The Hidden Gems of the ETF World You Need to Know! (youtube.com)

Andrew Tobias Interview: The Only Investment Guide You'll Ever Need with Andrew Tobias | White Coat Investor


Amusing AI-Bot Summary:

Discover why silver might be the wild card you didn't expect in your investment portfolio. With its industrial uses and lack of central bank holdings, silver might ramp up your portfolio's volatility without offering much in terms of diversification. We explore the intriguing story of the Hunt brothers and their infamous attempt to corner the silver market in the late 1970s, shedding light on the lessons learned from this historical market manipulation. Managed futures, we argue, could be a more strategic play for those looking to ride silver's unpredictable trends.

As we journey through the evolution of DIY investing, we take a critical look at the rise and fall of heavily marketed investment funds, like buy-write and options strategy funds. Through the wisdom of Andrew Tobias, we trace the shift from active fund management in the 1980s to today's preference for indexing and strategic asset allocation. From the so-called "Bronze Age" to our current "Golden Age" of investing, the importance of asset allocation remains a steadfast guide. So whether you're a seasoned investor or just starting out, these reflections aim to illuminate a path toward more informed and successful investment decisions.

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In this episode we answer emails from Alyson, Martijn and Russel. We discuss the drawbacks to using a total world fund, common misconceptions about it and misguided worship of the Simplicity Principle, a levered sample portfolio comparison and basic ideas for accumulation.

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

Additional link:

Levered Sample Portfolio Comparison: testfol.io/?s=8JtI7Xd2q7l

Amusing Unedited AI-Bot Summary:

Can achieving higher safe withdrawal rates in retirement really be as simple as investing in a single ETF? Discover the complexities of using VT, a total world fund, during your accumulation phase and why it might not be the one-size-fits-all solution it's cracked up to be. We'll challenge conventional wisdom on cap-weighted funds and explain why diversifying across different asset classes is crucial for your portfolio's long-term success. Get ready to expand your horizons as we question the effectiveness of simplicity and share strategies for effective rebalancing.

Join us for a lively exploration of portfolio diversification with listener Q&A, where we break down the dynamics of levered portfolios and strategize about blending small-cap value with large-cap growth. Whether you're just starting your investment journey or refining your approach, we'll guide you through the pros and cons of various strategies, helping you navigate the path to financial freedom. Plus, we review an exciting week in the markets, highlighting stellar performances and acknowledging the unpredictable nature of trends. Dive into the details with us and equip yourself with the knowledge to make informed investment decisions.

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In this episode we answer emails from Anderson, Camille, and Chris. We discuss and HSA vs. a Roth IRA for a lower-taxed earner, the tax, brokerage account, and portfolio considerations for a globe-trotting Canadian, and the gestalt of this podcast.

Links:

Father McKenna Center Donation Page: Donate - Father McKenna Center

Portfolio Charts Portfolio Matrix: Portfolio Matrix – Portfolio Charts

Amusing Unedited AI-Bot Summary:

Imagine navigating the world of international investment with the finesse of a seasoned traveler—all while balancing the priorities of a large family. Join me on Risk Parity Radio, where we explore Anderson's financial journey. With six kids and a modest income, Anderson seeks guidance on whether to prioritize his HSA or Roth IRA. We dissect the advantages and pitfalls of each option, examining long-term growth and inheritance implications, and offering a balanced approach to alleviate his concerns. Spoiler: a Roth IRA might just be his golden ticket.

As you contemplate international retirement, consider the intricate dance of managing a portfolio across borders. We discuss the indispensable role of a savvy accountant to navigate tax complexities and the potential necessity of relocating assets to sidestep onerous US regulations. Discover how Interactive Brokers can be your go-to platform for seamless international transactions and learn from real-world investment scenarios, like the unpredictable journey with MGK and real estate ventures. Our strategic planning insights will steer you clear of unreliable assets, paving a path to financial independence.

Trading stock charts for crystal balls, we venture into forecasting with a twist—relying on historical data instead of mere speculation. By leveraging portfolio matrices, we guide you through the labyrinth of investment possibilities beyond traditional stocks and bonds. Balance simplicity with complexity as you craft a robust portfolio that withstands market volatility. And as always, we cap off with a dose of humor—a nod to Monty Python’s "silly place"—reminding you that while we’re serious about finance, we’re equally serious about having a good laugh.

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In this episode we answer emails from Frank and Dan. We discuss investment considerations in the 32% marginal bracket, reallocating a cash holding to bonds and alternatives and common withdrawal mechanisms for taking monthly distributions.

Link:

Father McKenna Center Donation Page: Donate - Father McKenna Center

Amusing Unedited AI-Bot Summary:

Ever pondered how to perfectly balance your portfolio in a high tax bracket? We promise you'll gain actionable insights from Frank, a generous donor and semi-retired investor navigating his complex asset allocation strategy. At 60 years old, Frank seeks our advice on his bond investments, with options like EDV, VGLT, and VGIT on the table. His financial journey becomes a fascinating case study as we unravel the best strategies for optimizing his diverse portfolio of stocks, gold, municipal bonds, and cash. Plus, we emphasize the importance of giving back, spotlighting our cherished cause, the Father McKenna Center.

The episode takes a deeper dive into tax strategies tailored for substantial assets, providing listeners with the tools to maximize their retirement portfolios. Learn how retirement accounts like IRAs and solo 401(k)s can be leveraged to defer taxes, especially for those enjoying a higher tax bracket. We discuss the benefits of municipal bonds for tax efficiency and highlight the necessity of professional financial advice. Our focus remains on maintaining a balanced mix of investments to ensure growth and stability as you transition into retirement.

Finally, we explore effective strategies for managing portfolio drawdowns and monthly distributions. We introduce Harold Avinsky's bucket strategy and its psychological benefits, drawing inspiration from financial expert Paul Merriman. As we wrap up, we encourage you to reflect on aligning with your personal values and the universe's natural flow, all while enjoying light-hearted exchanges that underscore these financial principles. Join us for an enlightening conversation designed to empower your financial planning journey.

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In this episode we answer emails from Gordon, Roger and John. We discuss the ChooseFI podcast and podcast appearances, modern trends in fund construction and considerations with leveraged funds while transitioning to a drawdown portfolio, along with some basic guidelines.

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

Additional links:

Roger's Bloomberg Article: Goldman’s Kostin Urges Putting Brake on Stock-Index Reshufflings - Bloomberg

Return Stacked Webinar: Diversification 2.0: Mastering the Art of Portable Alpha (youtube.com)

Amusing Unedited AI-Bot Summary:

Ever wondered how to construct a portfolio that balances risk and return while maximizing your investment potential? On this episode of Risk Parity Radio, we promise to demystify the art of alternative asset allocation for all you do-it-yourself investors out there. Join me, Frank Vasquez, as we transform a complex topic into an engaging conversation reminiscent of a meet-up at your favorite dive bar. We'll share our latest portfolio updates, address intriguing listener questions, and explore the emerging industry of podcast guesting, with a special nod to Gordon for his feedback on my recent appearance on the ChooseFI podcast.

How do index funds really work, and could their construction hold the key to better diversification? Listen in as we tackle these questions, dissecting the process of index fund innovation and highlighting the shift from traditional cap-weighted indexes to the realm of sectors, factors, and thematic indexes. We explore the exciting potential of algorithm-driven fund construction and replication strategies, inspired by examples like the DBMF Managed Futures Fund. This episode uncovers the abundant opportunities that ETF experimentation brings to savvy investors looking to broaden their horizons with advanced strategies.

Looking to craft a retirement drawdown portfolio that stands the test of time? We guide you through the nuances of constructing a portfolio that supports sustainable spending rates while leveraging funds for enhanced returns. Using John's real-life portfolio as a case study, we analyze components like NTSX, AVUV, GLDM, and DBMF, focusing on risk parity and return stacking principles. We also review recent market performance and introduce you to our newest portfolio, Optra. Before signing off, connect with us through our provided contact info, and remember, our content is here to inform and entertain, not serve as professional financial advice.

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In this episode we answer emails from David, Jennifer and Byron. We discuss Risk Parity books and finance books and sources in general, considerations in taking control of a complicated portfolio from a (former) AUM advisor, and portfolio considerations for the younger investor considering tech, leverage and other various and sundry things.

Links:

Book #1: Risk Parity: How to Invest for All Market Environments by Alex Shahidi | Goodreads

Book #2: Risk Parity Fundamentals by Edward E Qian | Goodreads

Book #3: Introduction to Risk Parity and Budgeting by Thierry Roncalli | Goodreads

Risk Parity Radio RSS Feed Page: Risk Parity Radio RSS Feed (buzzsprout.com)

Ben Felix Video On Leverage: Investing With Leverage (Borrowing to Invest, Leveraged ETFs) (youtube.com)

Amusing Unedited AI-Bot Summary:

Prepare to unlock the secrets of risk parity investing and transform your retirement portfolio. Ever wondered which books can truly elevate your understanding of risk parity? We offer a curated list of essential reads, including Alex Shahidi's "Risk Parity: How to Invest for All Market Environments," to guide you in this complex yet rewarding approach. These books cater to the savvy investor ready to harness academic and professional insights, focusing on diversification and modern portfolio theory as powerful tools for financial success.

Navigating the maze of investments alone can be daunting, especially post-advisor. Jennifer's story highlights the challenges and opportunities of consolidating a vast portfolio without triggering hefty tax bills. We provide actionable strategies to streamline investments, emphasizing the critical role of cost basis data and aligning your current holdings with future goals. Tax efficiency takes center stage, with insights into evaluating investment overlaps, leveraging different account types, and smartly planning around income changes to maintain a cohesive and tax-savvy portfolio.

Are you ready to supercharge your investments for growth? Self-employed young investor Byron's journey reveals the excitement and risks of tech and leveraged ETFs in an aggressive growth strategy. Balancing high-risk potential with a thoughtful approach is key, and we emphasize the importance of a low-cost index-based portfolio strategy. With humor and practicality, we explore how to achieve impressive returns while managing risks, encouraging a balanced investment approach that doesn't gamble your financial future. Clear financial goals and consistent strategies are your allies in navigating the unpredictable markets.

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