Risk Parity Radio – Détails, épisodes et analyse

In this episode we answer emails from Roman, Andrew and Iain.  We discuss the plusses and minuses of leverage, volatility drag, and how leverage interacts with diversification and withdrawals, general observation on tax optimization via account buckets, small cap value index funds and Avantis/DFA merits, and modelling annuities versus mandatory versus discretionary spending in retirement.

LInks:

Father McKenna Center Donation Page:  Donate - Father McKenna Center

Ben Felix Leverage Video:  Investing With Leverage (Borrowing to Invest, Leveraged ETFs)

Leveraged ETFs Paper:  Double-Digit Numerics - Articles - The Big Myth about Leveraged ETFs

Optimized Portfolios Article/Website:  How To Beat the Market Using Leverage and Index Investing

Jim Sandidge Chaos Theory Applied to Drawdowns:  RMJ081-ChaosAndRetirementSecurity.pdf

"Buffet's Alpha" Paper:  Full article: Buffett’s Alpha

New Tax Planning In Early Retirement Book:  Amazon.com: Tax Planning To and Through Early Retirement: 9798999841599: Garrett, Cody, Mullaney, Sean: Books

Merriman Best IN Class ETF Selections:  Best ETFs 2025 | Merriman Financial Education Foundation

Breathless Unedited AI-Bot Summary:

Ever wonder why leverage looks brilliant during bull markets but feels brutal the moment you start withdrawing cash? We break down the promise and pitfalls of adding leverage to diversified, risk parity-style portfolios, then show how the math of volatility drag and sequence risk can quietly erode safe withdrawal rates. It’s an honest tour of what works in accumulation, what breaks in retirement, and how to engineer a calmer path without surrendering all upside.

We start with the straight talk: leverage and concentration are the two proven routes to outperformance, but only one of them can be paired safely with broad diversification. From hedge fund history to the “Aggressive 50/50” experiment, you’ll hear why high-octane blends can top the charts and then stall after deep losses, especially when distributions force selling at the worst times. We contrast that with return stacking and measured leverage, which aim for equity-like returns with better risk control, and we share practical tools—rebalancing discipline, cash buffers, and dynamic spending bands—to keep a drawdown portfolio intact.

Taxes matter just as much as tickers. We walk through Roth vs traditional contributions, why present marginal rates and future flexibility drive the choice, and how to place bonds smartly across tax buckets. On the equity side, we revisit small cap value: why classic S&P 600 value exposure is solid, and how AVUV and DFA’s profitability filters can sharpen the factor without turning it into active guesswork. Then we turn to spending: build the plan around real expenses, not theoretical annuities. Set a durable floor for essentials, keep a flexible layer for the fun stuff, and consider partial annuitization later in life if longevity and peace of mind are worth the trade.

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In this episode we answer emails from Jess, Phil and Scott.  We discuss an experience of setting up a sample RPR portfolio for one's self, using asset swaps to manage cash, and fun with the low bar standards and other inadequacies of many financial advisors.

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

Additional Links:

Father McKenna Center Donation Page:  Donate - Father McKenna Center

How To Do An Asset Swap Video from Risk Parity Chronicles:  How to Do an Asset Swap

Bigger Pockets Money Test Risk Parity Style Portfolio:  We Built a 5% SWR Retirement Portfolio Using Fidelity in 48 Minutes (Golden Ratio Portfolio)

Excess Returns Podcast With Rick Ferri (forward to minute 49):  Most Never Escape Stage 3 | Rick Ferri on How You Can Beat the Complexity Trap

Breathless Unedited AI-Bot Summary:

Tired of being told that everything beyond a three-fund portfolio is “too hard”? We pull back the curtain on practical tools that make DIY investing simpler in practice, not smaller in ambition. Starting with a listener’s test portfolios, we show how hands-on experience beats theory, why diversification means loving today’s winners and tomorrow’s comebacks, and how to turn rebalancing into reliable cash flow.

We go deep on asset location and the overlooked power of asset swaps. By “selling here, buying there,” you can keep your overall mix unchanged while moving ordinary income into tax-deferred accounts and positioning equities in taxable for qualified dividends and capital gains. If you’ve been parking big cash balances in a HYSA and wondering why your tax bill keeps creeping up, this segment is your blueprint for tax efficiency without extra risk.

Then we tackle withdrawal rates with clear eyes. Many advisors still anchor to 3 percent for retirees in their 60s. We explain why diversified, risk parity style allocations can responsibly target closer to 5 percent over long horizons, especially when you harvest from strength. Case in point: trimming gold after a powerful run to fund November distributions across our sample portfolios. We share market snapshots, what’s leading and lagging, and how a rules-based process keeps emotion out of the driver’s seat.

If you want an investing plan that funds a life—relationships, experiences, generosity—rather than an accounting hobby, this conversation is your on-ramp. Subscribe, share with a friend who needs a nudge to start that test portfolio, and leave a review telling us your target withdrawal rate and why.

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In this episode we answer emails from Adam, Private Cowboy, and Jose.  We discuss managed futures (again with references!), Bill Bengen's latest book and how it integrates into our approach, and the pros and cons of a Vanguard Personal Advisor-created portfolio and the hypocritical quandaries it creates with the gods of Simplicity.

Links:

Demystifying Managed Futures:  Demystifying Managed Futures

Bloomberg Presentation On Investments In Inflationary Environments:  MH201-SteveHou-Bloomberg.pdf

Dunn Capital Analysis:  High-Vol-Trend-Following-Trend-Index-Edition-0825-DIGITAL.pdf

Kardinal Financial Video:  What is Alternative Investing?

Interview of Bill Bengen:  Episode 195: The 4% Rule and Beyond: Retirement Strategies with Bill Bengen

Weird Portfolio:  Weird Portfolio – Portfolio Charts

Afford Anything Episode:  #618: How to Retire at 50 While Supporting Aging Parents, with Frank Vasquez - Afford Anything

Corey Hoffstein Interview:  Show Us Your Portfolio: Corey Hoffstein

Breathless AI-Bot Summary:

The perfect asset allocation isn't a formula—it's a framework built on uncorrelated assets that dance to different drummers during market storms. This episode dives deep into managed futures, one of the most powerful yet misunderstood portfolio diversifiers available to individual investors.

Three listener questions explore how managed futures fit within retirement portfolios, particularly for those approaching their post-career years. Frank breaks down why managed futures have essentially zero correlation to stocks, bonds, and even gold, making them uniquely valuable during both inflationary crises (like 2022) and deflationary periods (like 2008). He references new research from Dunn Capital comparing various alternative strategies and explains how ETFs like DBMF have democratized access to institutional-quality diversification.

Beyond managed futures, the episode synthesizes Bill Bengen's latest safe withdrawal rate research with Ray Dalio's "Holy Grail" principle of uncorrelated assets. While Bengen's new book doesn't explicitly analyze alternatives, Frank connects these complementary approaches to formulate practical guidelines: maintain 40-70% equity exposure divided between growth and value, use 15-30% treasury bonds for recession protection, allocate 10-25% to alternatives, and limit cash to under 10%.

The discussion takes a critical look at cookie-cutter financial advice, particularly questioning whether paying 0.3% annually to a Vanguard advisor provides value when their recommendations often involve overlapping funds and questionable international bond allocations. Frank challenges the "worship of simplicity" that permeates financial discussions while exposing the irony that these same advisors often recommend complex multi-fund portfolios.

What emerges is a call for "system two" thinking—the willingness to incorporate new information rather than clinging to outdated formulas out of consistency.

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In this episode we answer emails from Phil, MyContactInfo, and Eric.  We discuss implementing factor investing and making portfolio adjustments in a risk-parity style portfolio, HECOMs and other considerations about reverse mortgages and buffered products, the fundamental problems with IUL that need to be accounted for before using it, and just how rich you probably need to be to be using insurance products as investments.  Hint:  You are not that rich.

Links:

Swedroe Factor Investing Book:  Your Complete Guide to Factor-Based Investing: The Way Smart Money Invests Today by Andrew L. Berkin | Goodreads

Long View Podcast About HECOMs:  Don Graves and Wade Pfau: How - The Long View - Apple Podcasts

Andy Panko Cautionary Video About IUL:  Beware of misleading Indexed Universal Life insurance ("IUL") illustrations (youtube.com)

Andy Panko IUL Critique On Big Picture Retirement Podcast:  Unmasking the IUL Sales Pitch with Andy Panko (bigpictureretirement.com)

Private Placement Life Insurance:  How Does Private Placement Life Insurance Work? - ValuePenguin

Amusing Unedited AI-Bot Summary:

Is your portfolio prepared for the next economic downturn? Join us on this episode of Risk Parity Radio as we tackle an intriguing email from Phil, a listener from Portugal contemplating a major portfolio overhaul. We dig deep into the nuances of factor investing, particularly momentum and profitability factors, and offer critical advice on the potential risks of reducing bond allocations in favor of equities. We emphasize the importance of leveraging financial analysis tools like Portfolio Charts and Portfolio Visualizer to make informed decisions, and stress the need for a balanced approach throughout both the accumulation and decumulation phases of investing.

We also navigate the labyrinth of investment strategies and financial products, evaluating the pros and cons of dollar-cost averaging amidst market volatility, and scrutinize costly options like Home Equity Conversion Mortgages (HECMs) and Indexed Universal Life (IUL) insurance products. Highlighting the potential pitfalls of these profit-driven offerings, we advocate for well-diversified portfolios as the cornerstone of robust financial planning. Tune in to discover practical tips on managing taxable accounts, avoiding misleading insurance products, and achieving optimal portfolio performance, all while staying grounded in sound financial principles.

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In this episode we answer emails from Robert, Jamie and Richard.  We discuss transitioning away from a Boglehead Three Fund portfolio due to its obsolete nature, a query about the DBMF prospectus and an early retirement with a 70/30/10 risk-parity style portfolio in the face of some spurious Sonia-like objections.

Links:

Father McKenna Center Donation Page:  Donate - Father McKenna Center

Merriman Best-In-Class ETF List:  Best-in-Class ETF Recommendations | Merriman Financial Education Foundation (paulmerriman.com)

Morningstar Portfolio Analysis Of VTI:  VTI – Portfolio – Vanguard Total Stock Market ETF | Morningstar

VXUS:  VXUS – Portfolio – Vanguard Total International Stock ETF | Morningstar

AVDV:  AVDV – Portfolio – Avantis International Small Cap Val ETF | Morningstar

AVES:  AVES – Portfolio – Avantis Emerging Markets Value ETF | Morningstar

Early Retirement Now Spreadsheet Toolbox:  An Updated Google Sheet DIY Withdrawal Rate Toolbox (SWR Series Part 28) - Early Retirement Now

Amusing Unedited AI-bot Summary:

What if your international and bond funds aren't providing the diversification you think they are? On this episode of Risk Parity Radio, we address Robert's inquiry about optimizing his family's portfolio during the accumulation phase. We'll dissect the limitations of total international funds when paired with a U.S. S&P 500 or total market fund, and why they may fail to deliver the diversification you seek. We'll also explore Robert's proactive strategy of reallocating bond investments into stock funds during market downturns and discuss the merits of increasing U.S. stock exposure while rethinking the necessity of international holdings.

We'll further challenge the conventional wisdom of international versus domestic funds and introduce modern alternatives that can bring true diversification to your portfolio. Recommendations from the Merriman Foundation, such as AVDV and AVES, are highlighted for their potential to balance your investments by tilting towards small-cap and value stocks in international markets. Lastly, we dive deep into the complexities of fund disclosures and benchmarks, offering alternative methods to evaluate funds more effectively. Gain insights that will guide you toward a more strategic and diversified investment approach for long-term growth.

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In this episode we answer emails from Chris, Andrew and Jenzo.  We discuss portfolio, forms of leverage in leveraged portfolios, transitioning to a Golden Butterfly portfolio, and working with your spouse productively on your finances.

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:

Father McKenna Center:  Home - Father McKenna Center

Article re Margin vs. Leveraged ETFs:  Margin Trading vs. Leveraged ETFs | Cumberland Advisors

Optimized Portfolios:  Optimized Portfolio - Investing and Personal Finance

Leveraged ETFs Article:  Double-Digit Numerics - Articles - The Big Myth about Leveraged ETFs (ddnum.com)

Warren Buffett's Alpha Article:  Full article: Buffett’s Alpha (tandfonline.com)

Gottman -- "Eight Dates" Book:  Eight Dates: Essential Conversations for a Lifetime of Love (gottman.com)

Amusing Unedited AI-bot Summary:

Ever wondered if using margin or leveraged ETFs is the smarter choice for your investment strategy? This week on Risk Parity Radio, we promise to shed light on this ongoing debate. As we kick off the episode, we liken our podcast to a dive bar of personal finance where humor enthusiasts and seasoned investors alike can find common ground. With a lively introduction, we announce the grand unveiling of our weekly portfolio reviews for eight sample portfolios available on our website. An email from Chris sets the stage for a deep dive into the nuances of leveraging investments using margin or box spreads, responsible leverage, and current rates, all while thanking our generous listeners for their support of the Father McKenna Center.

Are high margin rates making you reconsider your investment strategy? We dissect this dilemma by exploring the current landscape and why leveraged ETFs might just be your best bet. With a focus on ETFs like NTSX and UPRO, we suggest additional resources such as Optimized Portfolios to help you navigate your options. Inspired by listener feedback, we also touch on the concept of optimal leverage, referencing studies like "Warren Buffett's Alpha," and discuss the importance of consistent investing strategies over market timing when building a risk-parity portfolio over the next five years.

Ready for some good news? This has been an exciting week in the market, with gains across the board. From the S&P 500 to managed futures, everything is up, and our eight sample portfolios are reaping the benefits. We highlight the standout performances of newer and experimental portfolios like the Levered Golden Ratio and the Optra Portfolio. To wrap things up, Frank Vasquez delivers a spirited and humorous sign-off, reminding us to consult with personal advisors before making any financial decisions. Tune in for a rollercoaster of insights and laughs that you won't want to miss!

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In this episode we answer emails from Ned, Kyle and Willy.  We discuss tools for the sight-impaired, building out from an accumulation portfolio, the new bitcoin ETFs, and what to do in a complex Coast FI situation involving both an invested portfolio and some raw land.

Link:

Father McKenna Center Donation Page -- Remember to mention "The Financial Quarterback match" in new donations:  Donate - Father McKenna Center

Amusing Unedited AI-bot Summary:

Can a legally blind investor successfully navigate the complex world of DIY investing? Tune in as we uncover the inspiring story of Ned, who shares his personal journey and the accessibility tools that empower him to make informed investment decisions. Learn how he balances his focus on large and mid-cap growth stocks while exploring the potential benefits of adding small-cap value, long-term treasuries, and alternative assets like gold and managed futures to his portfolio.

In another fascinating segment, we break down the power of ETFs for investing in digital assets such as Bitcoin and Ether, and how platforms like Fidelity and Schwab make it seamless. We then tackle a challenging financial scenario with Willy, who is on the brink of transitioning to Coast FI. Delve into strategies for evaluating his portfolio mix, the implications of selling rural recreational land, and the potential benefits of reallocating to more liquid investments. Discover practical tips and thoughtful analysis to help you make smarter investment choices and achieve financial independence.

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In this episode we answer emails from Frank, Michael and Aaron.  We discuss four good portfolio analyzer tools, the hidden meanings in the Risk Parity Radio logo, the deficiencies of the website and where to find good international funds to use for portfolio construction.

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:

Father McKenna Center Donation Page -- Remember to mention "The Financial Quarterback match" in new donations:  Donate - Father McKenna Center

Portfolio Visualizer Monte Carlo Simulator:  Monte Carlo Simulation (portfoliovisualizer.com)

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

Testfolio Calculator:  testfol.io

Geometric Golden Ratio Pentagon:  Golden Ratio in Regular Pentagon (cut-the-knot.org)

Misbehavior of Markets Book:  The (Mis)Behavior of Markets by Benoît B. Mandelbrot | Goodreads

More Than You Know Book:  More Than You Know: Finding Financial Wisdom in Unconventional Places by Michael J. Mauboussin | Goodreads

Merriman Best In Class ETF List:  Best-in-Class ETF Recommendations | Merriman Financial Education Foundation (paulmerriman.com)

Video Re Best In Class ETFs:  Bootcamp #9 Best in Class ETF Update 2024 (youtube.com)

DFA Mutual Fund List:  Funds | Dimensional

Truncated AI-bot Summary:

Can you imagine transforming your financial journey in the same way you might find camaraderie in your favorite dive bar? Welcome to Risk Parity Radio! Listener Frank reaches out with gratitude and a request for the best tools to backtest portfolios and determine safe withdrawal rates. We also tip our hats to Frank's generous donation to the Father McKenna Center, underscoring our ongoing charity drive in collaboration with the Financial Quarterback podcast.

Ever wondered which platforms provide the most reliable data for crafting your financial future? We break down some of the top tools in the industry, like Portfolio Visualizer, Portfolio Charts, and the Early Retirement Now toolbox, along with the new player, Testfolio.  Along the way, we debunk myths around CAPE ratios and share a heartfelt story about our Risk Parity Radio logo, born out of the creativity sparked during the 2020 lockdown.

From a cheerful Scottish greeting to a deep dive into international investing, this episode promises both humor and expertise. We tackle Aaron’s email about international ETFs, emphasizing the importance of non-overlapping funds for true diversification. Drawing from resources like the Merriman Foundation and Chris Pedersen's analyses, we guide you in selecting top-tier funds from DFA and Avantis. 

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In this episode we answer emails from Jared, Jon and Jimmy.  We got the three Js!  We discuss Jared's work to create AI Uncle Frank, his accumulation variation of the O.P.T.R.A. sample portfolio, carry strategies, whether to reinvest distributions and using multiple managed futures funds.

Links:

Father McKenna Center Donation Page (don't forget to include "The Financial Quarterback Match" in the comment/dedication box):  Donate - Father McKenna Center

Jared's Accumulation O.P.T.R.A. Portfolio:  testfol.io

Resolve Asset Management Video on Carry Strategies:  Navigating Market Volatility Mastering Managed Futures and Carry Strategies (youtube.com)

CCRV Fund:  CCRV – iShares® Commodity Curve Carry Strat ETF – ETF Stock Quote | Morningstar

ICITF Fund:  ICITF – iPath® Optimized Currency Carry ETN – ETF Stock Quote | Morningstar

Video on QIS Fund:  Simplify QIS Fund Deep Dive (youtube.com)

Amusing AI-Bot Generated Summary:

Ever wondered if leveraging your investment portfolio could lead to better returns? Discover Jared's transformative journey from a mechanical engineer to a machine learning enthusiast and the creator of a Risk Parity Radio chatbot! Jared shares his intricate process of optimizing a traditional 50-50 stock allocation into a more diversified and leveraged strategy. We’ll dissect the potential benefits and pitfalls of his approach, with a spotlight on managing leverage, mitigating drawdowns, and enhancing overall risk management.

We also extend our heartfelt thanks for your generous contributions to the Father McKenna Center. Dive into the exciting realm of AI as we discuss how it's revolutionizing podcast transcriptions and even mimicking the host's voice. Plus, we explore translating podcast episodes into a book with the help of AI. Don't miss our deep dive into listener questions about leveraging portfolios for accumulation, the intricacies of handling dividends and distributions, and an examination of managed futures funds like DBMF and KMLM. Whether you’re in the accumulation or decumulation phase, we’ve got actionable strategies to help you stay on track for long-term success.

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In this episode we answer emails from Justin, Joe and Jenzo.  We discuss the legacy of Risk Parity Chronicles, basic accumulation principles, and what we can learn from a debate on gold between Ben Felix and Tyler of Portfolio Charts.  And
 talk about our charitable promotion for the Father McKenna Center.

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

Additional links:

Father McKenna Center Donation Page -- Remember to mention "The Financial Quarterback match" in new donations:  Donate - Father McKenna Center

Financial Quarterback Podcast With Yours Truly:  Breaking Down the Holy Grail of Diversified Portfolios w/ Frank Vasquez Jr. (Risk Parity Radio) (youtube.com)

Justin's Station Wagon Portfolio:  The Station Wagon Portfolio - Google Docs

Jenzo's Link to the Great Gold Debate:  Ben & Tyler showdown - Google Docs

AI-generated summary (use at your own risk):

Can diversification safeguard your portfolio against turbulent market conditions? Join us at Risk Parity Radio, the podcast with a dive bar vibe where humor meets investment wisdom. This episode begins with a performance review of our eight sample portfolios, demonstrating how diversification has been a protective shield amid market volatility. Plus, we're excited to feature our charitable promotion for the Father McKenna Center, urging listeners to donate and take advantage of our matching offer.

We welcome back Justin, the insightful mind behind the now-dormant "Risk Parody Chronicles," for a thought-provoking discussion on the value of freely sharing financial knowledge. We revisit the Station Wagon Portfolio and emphasize the significance of adhering to a well-devised investment strategy. We also respond to Joe's questions about the accumulation phase, advocating for a combination of low-cost index funds, such as S&P 500 and small-cap value funds, and stressing the importance of consistency over the allure of recent top performers.

Curious about the timeless debate on gold's role in modern portfolios? We dissect a lively debate between Tyler and Ben Felix, scrutinizing the historical and contemporary merits of holding gold. Alongside, we provide a detailed market analysis, highlighting the recent rise in gold and long-term treasury bonds, and review how different portfolios like the All Seasons and Golden Butterfly have weathered the storm. This episode is a reminder to employ critical thinking and adopt a comprehensive approach when evaluating investment strategies and market trends.

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