Risk Parity Radio

In this episode we answer emails from Tyler, Michael and Jon.  We discuss managing an inherited Roth across a 10-year window and related questions, compare VXUS to targeted international tilts, tax and asset location considerations for traditional and Roth IRAs, and talk about some of the basic ideas for achieving higher safe withdrawal rates.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 CenterGolden Ratio Portfolio Article:  Beautiful Constants and the Golden Ratio Portfolio – Portfolio ChartsAfford Anything Podcast #618:  They Ran Out of Money. I Didn’t. Here’s Why.Slide Deck:  Afford Anything Episode 618 RPR Basics Slide Deck.pdf - Google DriveVideo Summary:  Afford Anything Episode 618 Video Summary.mp4 - Google DriveAfford Anything Risk Parity Portfolio Blueprint:  Afford Anything frank-vasquez-risk-parity-portfolio-BluePrint.pdf - Google DriveBigger Pockets Money Podcast:  The Secret to a 5% Safe Withdrawal Rate | Frank VasquezSlide Deck:  BP Money Interview Slide Deck.pdf - Google DriveVideo Summary:  BP Money 5 Pct Withdrawals (F. Vasquez).mp4 - Google DriveBreathless Unedited AI-Bot Summary:A surprise inheritance, a strict 10-year clock, and a plan that has to work through whatever the market throws at it—this conversation tackles the decisions that actually move the needle. We break down a practical approach to managing an inherited Roth IRA, why delaying withdrawals can preserve tax-free growth, and how to separate speculation from your core allocation so one risky bet doesn’t hijack your entire plan. Along the way, we show how risk parity portfolios lower sequence-of-returns risk and why the best “edge” is often calm structure, not prediction.We dig into tax location with real-world transitions in mind. During your working years, most of the portfolio belongs in equities; the puzzle appears when you move toward retirement and spread assets across bonds and diversifiers. That’s where location shines: place ordinary-income-heavy assets in traditional accounts, keep the highest-growth assets in Roth, and avoid turning your taxable account into a tax drag. We also talk about securities-backed lines of credit and why reducing portfolio volatility can materially lower margin stress when you’re funding future purchases like rentals.If international stocks feel like a copy of your U.S. exposure, they probably are. We explain how currency drives much of the U.S. vs ex-U.S. gap and why targeted tilts—international large cap growth and small cap value—can be a more effective pairing than broad VXUS. Then we tackle illiquid plays and limited partnerships: categorize by the underlying asset, respect rebalancing limits, and treat truly illiquid positions as separate businesses with independent cash flows.Support the show

In this episode we answer emails from Jenna, Kevin, and Jack Rabbit.  We challenge the myth of “never pay taxes” and show how to transition scattered holdings into a Golden Butterfly framework while keeping taxes manageable. We also examine Bitcoin’s role, review sample portfolio performance, and share new listener-created bonus material on the site.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 CenterJack Rabbit's Creation re Episode 208 (Advice for Beginning Investors):  A Parable for Beginning Investors in the Land of Oz"Free Steak Dinner" Rant Episode:  Episode 321: A Small Rant About Newman Selling Annuities At Local Steakhouses | Risk Parity RadioBreathless Unedited AI-Bot Summary:You can optimize a portfolio to the comma and still miss the point if the tax tail is wagging the rest of your life. We dive into a common blocker—fear of realizing gains—and replace it with a better plan: build the mix you actually need, then minimize taxes over years with smart account placement, specific-lot sales, and well-timed gain harvesting. From there we lay out a practical route to a Golden Butterfly structure—growth and value stocks, long Treasuries, gold, and short-term bonds—implemented primarily inside tax-deferred accounts to keep the brokerage account’s changes light and intentional.Along the way, we tackle a hot question on Bitcoin. Our take is grounded, not tribal: no income, high volatility, and shifting correlation that often mirrors high-beta growth. If you must touch it, keep it tiny so it can’t steer your long-term outcomes. More important, we reframe risk tolerance: being comfortable with swings isn’t a destination. Decide whether your target is maximizing lifetime spending or terminal wealth, then right-size volatility and liquidity to fit that goal. Finance comes first; the personal is how you stick to it.We round out the conversation with a market scoreboard—gold’s surge, equities’ strength, managed futures’ late-year pop—and a transparent look at model portfolios, from classic all-weather to a measured, levered stack that’s built for accumulators who accept higher swings. We also share a listener-made “graphic novel” twist on a past episode now posted as bonus material. If you’re ready to shed tax paralysis, align your assets with your life, and use diversification that actually works across regimes, this one’s for you. If you enjoyed it, subscribe, leave a review, and tell us: what’s the next move you’ll make to simplify and realign your portfolio?Support the show

In this episode we answer emails from JT, Phil, and Glenn.  We revel in the updates to the TestFolio tools, weigh how tilting toward small cap value can lift safe withdrawal rates but also reduces overall diversification, return to KBWP and how property and casualty insurance companies can provide value-tilted diversification, and discuss the tracking results reported on the About page at the website.Links:Testfolio 5% Withdrawal Backtest Comparison:  testfol.io/?s=74fuq6N5WWdTestfolio Comparison of SCV, LCG, LCV and SCG:  testfol.io/?s=4eqimbZveGXWeird Portfolio:  Weird Portfolio – Portfolio ChartsTestfolio KWBP and BRK-B Analysis:  testfol.io/analysis?s=l34pkinSxdeFund Seeder Tracker Site:  FundSeeder - Empowering Top Traders with Capital and InsightsBreathless Unedited AI-Bot Summary:Ready to push past rules of thumb and actually pressure-test a retirement portfolio? We dig into how far a DIY investor can tilt toward small cap value to raise a safe withdrawal rate, what history really shows across 30- and 50-year windows, and why correlation—not bravado—decides whether you can keep spending through ugly markets. Using new Testfolio features with 100-year factor data, we compare the Golden Ratio and Golden Butterfly against more value-heavy mixes and pinpoint where the extra “cowbell” helps and where it just adds stress.We also open a less-traveled door inside equities: property and casualty insurers. Whether you own them through KBWP or direct index the top names, this sleeve has delivered rare intra-equity diversification, often keeping pace with broad markets while zigging in years like 2022. We share the practical trade-offs—expense ratios vs. tracking error, simplicity vs. tax loss harvesting—and explain when the ETF is the smarter, lower-hassle choice. If you already own Berkshire Hathaway for your value core, you’ll hear why insurers can complement or substitute without bloating overlap.Context matters, so we pull back the curtain on our publicly tracked taxable account and why it can look extreme in a bad year and strong in a good one. The whole-portfolio view is far steadier, closer to a risk parity blend of stocks, long treasuries, and diversifiers like gold and managed futures. The takeaway: if you want a withdrawal rate you can live with, build for multiple regimes—blend small cap value and large cap growth, keep long bonds for deflation shocks, and add real diversifiers that cut correlation when you need it most. Subscribe, share this with a DIY investor who loves data, and leave a review to tell us where you’d tilt next.Support the show

In this episode we answer emails from Anonymous from New Jersey, James, and Brad.  We answer a donor’s six-part retirement plan, from mortgages and liquidity to 403(b) constraints, ETF trading, asset location, asset swaps, and tax‑savvy withdrawals. Then we discuss the risks of staying in an accumulation portfolio for too long and the options for obviating a crash before transitioning. 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 CenterHow To Do An Asset Swap Video from Risk Parity Chronicles:  How to Do an Asset SwapTax Planning Book:  Amazon.com: Tax Planning To and Through Early Retirement: 9798999841599: Garrett, Cody, Mullaney, Sean: BooksBreathless AI-Bot Summary:Ever wonder whether paying down a mortgage before retirement is actually the safest move? We make the counterintuitive case for liquidity first: keep cash flexible during the messy early retirement years, when housing changes, college timelines, and new expenses collide. With a real listener case study, we show how a mortgage can be a tool, not a trap—and why you can always accelerate later once the dust settles.From there we dig into a pain point for many educators and nonprofit pros: weak 403(b) lineups. We break down why insurance-driven menus lag, how to advocate for better providers and funds, and when it makes sense to roll to an IRA for full control. You’ll also learn how to keep tracking simple, why monthly check‑ins beat daily dashboards, and how consolidating at a service‑oriented custodian streamlines everything. On execution, we explain why ETFs beat mutual funds for rebalancing speed and precision, plus how to convert Vanguard mutual funds to ETFs without tax surprises.Taxes and withdrawals get the spotlight too. We clarify asset location—shelter ordinary income, let capital appreciation work in brokerage and Roth—and outline “asset swaps” that let you sell what’s up while managing tax impact. For those still accumulating, we talk strategy for a smoother glide into a risk parity portfolio to reduce sequence risk, and the trade-offs between earlier protection and maximum growth. We wrap with a market scoreboard across stocks, bonds, gold, REITs, commodities, preferreds, and managed futures, and report on sample portfolios including Golden Butterfly, Golden Ratio, Ultimate, and leveraged variants.If you value actionable, no-nonsense guidance for DIY investors, you’ll find ideas you can use right away—whether you’re five years from retirement or still building your base. Subscribe, leave a review, and share this with a friend who’s wrestling with 403(b) choices or planning a tax-smart withdrawal strategy.Support the show

In this episode we answer emails from Anonymous, Pete, and Wilhelm.  We discuss how MiFID reshapes investing for U.S. citizens retiring in the EU, the commodities fund HGER and the "Desert Portfolio."Links:Father McKenna Center Donation Page:  Donate - Father McKenna CenterIBKR MiFId Client Page:  MiFID Client CategoryPortfolio Charts Assets Page (for finding funds):  Assets – Portfolio ChartsAnimal Spirits Podcast re HGER: Talk Your Book: How to Invest in Commodities - Animal Spirits Podcast | Podcast on Spotify Testfolio HGER Analysis:  testfol.io/analysis?s=dcDPCTQc1j6HGER Fund Page:  ETF | Harbor Commodity All-Weather Strategy ETF (HGER) | Harbor CapitalPortfolio Charts Safe Withdrawal Rates Chart:  Withdrawal Rates – Portfolio ChartsBreathless Unedited AI-Bot Summary:Planning to retire in Europe while keeping a U.S.-style portfolio? The moment you change residency, MiFID rules can block purchases of U.S.-domiciled ETFs, turning routine rebalancing into a headache and putting your safe withdrawal rate at risk. We break down practical steps to keep your plan intact, including using Interactive Brokers to run a two-sleeve setup—sell-only in the U.S. account, buy in an EU account with UCITS equivalents—and how to make rebalancing work without creating a tax and paperwork nightmare. You’ll hear the pros, cons, and tradeoffs of each path so you can navigate regulation with confidence, not guesswork.We also examine a smarter way to think about commodities. Legacy benchmarks like BCOM haven’t evolved with investor goals, and that’s where HGER’s rules-based design stands out with a quality and carry overlay that often elevates gold. But if you already hold gold, does a gold-tilted commodity fund add diversification or just overlap? We compare HGER to PDBC, highlight correlations with stocks and gold, and explain why managed futures can deliver broader, more resilient diversification across commodities, rates, and currencies. If you’re after true crisis defense, a blend of gold and managed futures may beat a traditional commodity sleeve.To round it out, we stress-test the “desert portfolio”—high treasuries, modest equities, a touch of gold—and explain when its calm ride helps and when it lowers your long-term sustainable withdrawal. If your real objective is durable retirement income, consider upping equity exposure, adding value tilts, and relying on uncorrelated diversifiers that keep you rebalancing through drawdowns. Subscribe for more DIY-friendly portfolio tactics, share with a friend who’s eyeing an EU move, and leave a review to tell us what cross-border investing questions you want answered next.Support the show