Risk Parity Radio

In this episode we read a lengthy email missive from our good friend Dr. Bill on reaching financial independence a few years early, designing a risk parity portfolio with an advisor, and facing the emotional fog that follows. We share how to replace optimization with intention and use time, not money, as the measure of value, and touch on these points:

• hitting FI earlier than planned after high savings, growth and a modest windfall
• shifting from global cap weight to risk parity for steadier withdrawals
• choosing fee‑for‑service advice and aligning incentives
• handling FI emotions, identity shifts and one‑more‑year urges
• using four idols as red flags for decisions
• buying happiness through relationships, experiences, time‑buying and generosity
• satisficing small choices to protect energy and attention
• building post‑career structure with short chapters and yearly subtractions
• treating time as the scarce currency, not money

Links:

Father McKenna Center Donation Page:  Donate - Father McKenna Center

Dr. Bill's Interview on Bigger Pockets Money:  The Decumulation Strategy After Hitting Financial Independence | Bill Yount

Kardinal Financial:  Kardinal Financial — Flat Fee & Fee-Only Financial Advisor Bryan Minogue | Madison, WI

Afford Anything Episode #618:  They Ran Out of Money. I Didn’t. Here’s Why.

Breathless Unedited AI-Bot Summary:

The number hits, the accounts say you’re free, and yet the feeling isn’t triumph—it’s fog. We dive into that messy, honest space after financial independence with a candid letter from Dr. Bill, a late starter who reached FI years ahead of schedule. His story opens the door to two challenges at once: how to build a portfolio that steadies withdrawals in uncertain markets, and how to build a life that isn’t ruled by “one more year.”

We start with the money. Risk parity isn’t a magic trick, but it’s a powerful framework for retirees and late starters: diversify by risk, not headlines, so stocks, bonds, and real assets share the load. That balance can dampen drawdowns and reduce sequence risk when you’re finally taking income. We highlight why fee‑for‑service advice beats legacy models, what to expect from a thoughtful plan, and how to avoid turning markets into a source of constant anxiety. Sleep matters as much as return.

Then we face the human side: identity, purpose, and the gravitational pull of more. Using a simple lens—avoid the four idols of money, power, fame, and unhealthy pleasure—we redirect focus to the only currency that compounds after FI: time. We break down practical ways wealth buys happiness through relationships, experiences that spark flow, time‑buying that deletes chores and commutes, and generosity that deepens community. You’ll hear tactical rules to cut over‑optimization, pilot a lighter work schedule, structure short chapters instead of a rigid life plan, and run annual “stop doing” audits to keep your days aligned with what matters.

If you’re nearing FI, newly independent, or stuck in the fog, this conversation offers a clear path forward: design a portfolio for resilience, and design a life for meaning. Subscribe, share with a friend who’s wrestling with “enough,” and leave a review to help more DIY investors find a saner way to retire on purpose.
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In this episode we answer emails from Gregory and Isaiah.  We discuss whether tail-hedged ETFs belong in a retirement portfolio, then map out a cleaner path with Treasuries as recession insurance, a value tilt for equity resilience. We also discuss the problems with relying on voices from popular personal finance unless they are well supported by professional and academic teachings, and the importance of the four quadrant model in understanding correlations and diversification.  We also a practical taxonomy for classifying holdings.

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:  Donate - Father McKenna Center

Links Page at Risk Parity Radio:  Links | Risk Parity Radio

Analysis of Tail Risk ETFs:  testfol.io/analysis?s=jCSSoT7bFRe

Bob Elliot Macro Masterclass:  Bob Elliott, Unlimited Funds – A Macro Masterclass

Bob Elliot on Excess Returns:  Understanding Economic Cycles | Bob Elliott

"Best of" Bob Elliot on Excess Returns:  Markets Always Return to Economic Reality | Bob Elliott Explains How It Happens

Bob Elliot on The Compound:  The Blue Chips of Junk | TCAF 175

Portfolio Tracker:  GitHub - danbuchal/portfolio-tracker: Portfolio Tracker: Track your investments and asset allocation

Breathless Unedited AI-Bot Summary:

Looking for protection without sacrificing long-term returns? We dig into a donor’s question about using tail-hedged ETFs like SPD and SPYC for early retirement and explain why constant hedging tends to bleed performance. The core idea is simple: prioritize assets with positive expected returns that also diversify when it matters. That’s where long-term Treasuries serve as recession insurance and why picking the right time horizon for correlation analysis changes everything.

From there, we zoom out to the four-quadrant framework—growth and inflation as the axes that drive correlations. Stocks thrive in positive growth with moderate inflation, Treasuries support you in weak growth and disinflation, and assets like gold and managed futures help when inflation shifts. If passive flows are reshaping markets, the practical antidote isn’t a new product; it’s a value tilt on the equity side. History shows value, especially small-cap value, is a reliable counterweight when growth-heavy indexes crack.

We also share a clear, DIY method to audit and classify your holdings ahead of retirement. Start with growth vs value as your primary lens, use size as a secondary tilt, and treat international exposure as tertiary since currency swings drive much of the variance. Tools like Morningstar and Portfolio Tracker make it easy to roll up accounts, view factor exposure, and keep your targets on track. Finally, we walk through our sample portfolios and a crisp market snapshot—gold’s strength, steady REITs and commodities, and how leveraged mixes are faring—to show how these principles play out in real allocations.

If this helps you build a stronger plan, follow the show, share it with a friend who’s rethinking their hedge, and leave a quick review to help more DIY investors find us.

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In this episode we answer emails from Bee, Brian, and Derek.  We discuss shifting from pure equities toward a Golden Ratio allocation at 60% of the way to financial independence, using 401(k) BrokerageLink to add small cap value, and replacing monthly performance screenshots with better backtesting tools. Along the way, we talk donor-advised funds, advisor incentives, and why most financial advisory practices run on fear because its the most profitable business model.

Links:

Portfolio Charts Article:  Minimize Your Miss – Portfolio Charts

Sonia Parker on Crystal Balls:  Crystal ball gazing, how to use a Crystal Ball ~ How to Scry with a Crystal Ball ~ by Sonia Parker

Jim Sandidge Chaos Paper:  RMJ081-ChaosAndRetirementSecurity.pdf

Breathless Unedited AI-Bot Summary:
Tired of being told to fear the market, fear retirement, and fear doing it yourself? We dig into three real listener scenarios to show how clarity, incentives, and modern tools beat sales scripts every time. First, we sit with a 41-year-old investor who’s 60% to a FIRE number and wrestling with whether to add risk-parity elements now or stick with 100% equities a bit longer. We break down how a gradual shift toward a Golden Ratio–style mix can reduce volatility without forcing a hard “all-at-once” pivot, and why matching your allocation to your timeline, taxes, and temperament matters more than waxing theoretical about the perfect moment.

Next, we explore the power of Fidelity’s BrokerageLink and the case for a structural small cap value tilt. If costs are minimal, opening the 401(k) architecture unlocks better ETFs and truer diversification. A large growth and small value balance can set you up for meaningful rebalancing, while keeping income-heavy assets in tax-advantaged accounts avoids unnecessary drag. We also spotlight donor-advised funds as a practical way to give appreciated shares, lower taxes, and simplify charitable plans—especially helpful during high-income years or advisor breakups.

Finally, we question the industry’s incentive structure and the fear-based marketing behind complex portfolios, annuity pitches, and “risk profiles” designed to sell products. Instead of monthly performance screenshots that can mislead when withdrawal rates vary, we point you to TestFolio and Portfolio Visualizer to run clean, apples-to-apples comparisons. Five years of live results won’t settle lifetime decisions; full cycles and solid process will. If you want a portfolio that’s low-cost, transparent, and built to last—without crystal balls or steak-dinner seminars—this conversation lays out the path. If this helped you think clearer about your allocation, subscribe, leave a review, and share it with a friend who’s ready to keep more of their own returns.
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In this episode we answer emails from Jeff, Chad and Matt.  We discuss choices in 100% equity accumulation portfolios, distribution methodology for the sample portfolios, more on radio-personalities-cum-financial-advisors who try to punch down, the landscape of financial advisors and distinguishing the good, the bad, and the ugly, and our overall approach here, which is simply to match financial behaviors with financial goals.  Because Personal Finance is FINANCE.

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

Links:

Best Equity Index ETFs:  Best ETFs 2025 | Merriman Financial Education Foundation

Sarah Catherine Gutierrez Presentations:  Interacting with the Financial Services Industry with SC Gutierrez

Afford Anything Podcast re RPR:  They Ran Out of Money. I Didn’t. Here’s Why.

Breathless Unedited AI-Bot Summary:

What if your portfolio actually reflected your real goal—spend confidently while you’re alive—or, if you prefer, maximize what you leave behind? We dig into that choice and show how to align behavior with outcomes, from accumulation tilts to retirement withdrawals, without getting trapped by complexity or fear.

We start by tackling a common accumulator snag: limited 401(k) menus. When a plan doesn’t offer the exact funds for a 50% large-cap growth and 50% small-cap value tilt, we show how to keep the core in a low-cost total market index and use outside accounts for precise small-cap value exposure. The final 10%? It’s often a coin flip—simplicity and consistency usually win. We also compare small-cap value options and why funds with profitability screens (like AVUV) can sharpen the tilt.

For retirees and near-retirees, we lay out a clean distribution method. Use cash generated by the portfolio first; if you must sell, trim the position most above target since the last rebalance. Prefer even fewer trades? Hold a modest cash sleeve and draw from it, replenishing during scheduled rebalances. The aim is to reduce friction while keeping allocations on track. Throughout, we push for strategies that raise safe withdrawal rates, not stories that only soothe nerves.

We also hold a bright light on advisor incentives. AUM fees aren’t “evil,” but they’re misaligned with consumer interests and compound against your long-term outcomes. Fee-only, flat-fee, or hourly planning models provide clarity and control without the drag. Our stance is simple: demand the math, insist on base rates, and ask every product or tweak one question—does this increase sustainable spending power?

The market check brings it all together: small-cap value is out front, gold remains a steady diversifier, and diversified sleeves like managed futures, REITs, and Treasuries contribute ballast. We walk through the eight sample portfolios, highlight performance since 2020 and 2024 inceptions, and note why mechanical year-end rebalancing can backfire when flows get weird. If you’re a do-it-yourself investor who values low costs, clarity, and evidence over noise, you’ll find practical steps you can use today.

If this resonates, follow the show, leave a review, and share it with someone who needs more signal and less sales pitch.
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In this episode we answer emails from Midwest Nice, Ron and Stefan.  We discuss helping a cautious parent with a high-fee advisor, what services are actually worth paying for in their case, how to invest home-sale proceeds for a 5–10 year horizon, where to learn beyond basic indexing without losing the plot, the McKenna Man portfolio, and best approaches to try to beat the market (beyond don't try). 

Links:

Father McKenna Center Donation Page:  Donate - Father McKenna Center

Excess Returns Channel: Excess Returns - YouTube

Tacoma Narrows Bridge Collapse Video:  Tacoma Bridge Collapse: The Wobbliest Bridge in the World? (1940) | British Pathé

Stefan's Sparkline Capital Article:  Buffett's Intangible Moats

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

Book List:

Ashvin Chhabra:  "The Aspirational Investor"

J. David Stein:  "Money For The Rest of Us"

Michael Mauboussin:  "More Than You Know" and "Think Twice"

Antti Ilmanen:  "Expected Returns" and "Investing Amid Low Expected Returns"

Andrew Lo:  "In Pursuit of the Perfect Portfolio"

Ed Thorpe:  "A Man For All Markets"

Larry Swedroe:  "Your Complete Guide to Factor Investing"

Breathless Unedited AI-Bot Summary:

Ever tried to help a parent who’s financially fine but glued to a “nice” advisor and a vague plan? We dig into the real-world tactics that preserve relationships while improving outcomes—think gentle on-ramps like scam protection, account alerts, and sharing your own planning choices. The goal isn’t to win a debate; it’s to earn access, reduce avoidable taxes, and align risk with comfort, especially when pensions and Social Security already cover spending.

From there, we get specific about value. If an advisor stays, the highest-return work for many retirees is tax strategy, asset location, and simplification—not performance theater. We talk practical setups like Wellington or Wellesley for low-cost balance, when a deferred QLAC can be a comfort hedge, and why generating more income than you need can backfire at tax time. For listeners sitting on house-sale proceeds with a 5–10 year window, we unpack why hoarding cash invites erosion and why a golden ratio–style mix can cap drawdowns to a few years while keeping growth and inflation resilience alive.

Curious investors also get a roadmap for learning beyond slogans. We highlight factor tilts with quality screens, institutional-grade thinkers like Ilmanen, Lo, and Mauboussin, and the simple truth that outperformance usually comes from concentration or leverage—so position sizing and behavior matter more than hot takes. We challenge the myth that a cap-weight index buys the “whole economy,” and we favor building like engineers: learn from failures, control volatility, and design for the stress you’ll actually feel.

If this helped you rethink fees, timelines, or tilts, follow the show, share it with a friend, and leave a quick review so more DIY investors can find these tools.

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