Risk Parity Radio

In this episode we answer emails from Pete, Mark, and Jack.  We thank our generous donors and share the preliminary results of the Top of the T-Shirt campaign for the Father McKenna Center, discuss recent machinations of the US Treasury Department and why its more of the same old story, and discuss some basics of accumulation portfolios and the preeminence of the Macro-Allocation Principle, and using risk-parity style portfolios for intermediate accumulation.

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

Links:

Father McKenna Center Donation Page (please mention Risk Parity Radio in the comment section with your donation):  Donate - Father McKenna Center

Mark's Claude Discussion Link:  Claude

Testfolio Comparison of Sample Accumulation Portfolios:  Portfolio Backtester for ETFs and Asset Allocation | testfolio

Shannon's Demon Article:  Unexpected Returns: Shannon's Demon & the Rebalancing Bonus – Portfolio Charts

Breathless Unedited AI-Bot Summary:

A tiny Treasury headline can spark a full-blown “the system is ending” spiral, and we get why. So we slow it down and look at what actually matters for investors: how policy actions, inflation expectations, and interest-rate narratives ripple through stocks, long-term Treasury bonds, gold, commodities, and managed futures and why trying to predict the next move usually makes portfolios worse, not better.

We also share a meaningful community update as our listener donations push the Father McKenna Center’s Top of the T-Shirt campaign back into a leading spot. The money helps keep real services running for people who need it, and it also reinforces a theme we come back to often: investing is a tool, not the point. Time is limited, behavior matters, and a steady plan beats a dramatic one.

From there we tackle an accumulation-phase question that a lot of DIY investors wrestle with: how to split large-cap growth (VUG) with small-cap value (VIOV or AVUV), where to place each fund across taxable, Roth, and pre-tax accounts, and why we don’t assume one style will “win” forever. We dig into the logic of rebalancing and “Shannon’s demon,” plus when it makes sense to upgrade fund choices and when switching creates avoidable tax pain. Then we close with our weekly market snapshot and performance across the eight sample portfolios, including the more volatile leveraged experiments.

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In this episode we answer emails from Kelly and Jose (Joe).  We discuss simple spreadsheet applications for organizing portfolios, review a planned risk-parity style portfolio, discuss issues with transitioning and international fund choices and proportions, and why you should not fear "high market valuations" because risk-parity portfolios already solve for that exact problem, unlike simplistic large-cap weighted portfolios.  In fact, that is one of the main reasons risk-parity style portfolios make for better retirement portfolios with higher safe withdrawal rates.

Links:

Father McKenna Center Donation Page (please mention Risk Parity Radio in the comment section with your donation):  Donate - Father McKenna Center

Risk Parity Chronicles Free Portfolio Tracker and Explanatory Video:  How to use the RPC Capital Efficient Portfolio Tracker

Afford Anything Risk Parity Portfolio Blueprint:  Afford Anything frank-vasquez-risk-parity-portfolio-BluePrint.pdf - Google Drive

Jeremy Grantham on the Long-View Podcast:  Jeremy Grantham ‘Almost Everything Looks More Attractive Than the US Equity Market’ - YouTube

F. Vasquez EconoMe 2025 Slide Presentation:  F. Vasquez EconoMe 2025 Presentation.pdf - Google Drive

Breathless Unedited AI-Bot Summary:

Retiring soon and staring at market charts that look “too high” can mess with your head, even if your plan is solid. We hear that anxiety loud and clear in today’s mailbag, and we respond with what actually helps: better visibility across accounts, clear asset allocation targets, and a process you can follow when emotions spike.

First, we tackle the nuts-and-bolts problem almost every DIY investor hits: holdings scattered across IRAs, 401(k)s, and a taxable brokerage account. We share a simple way to track everything on one page using a Google Sheet that updates prices automatically, and we talk about how AI tools like Gemini NotebookLM can organize raw account statements into a clean spreadsheet, even adding details like unrealized capital gains. The point is not fancy software, it’s seeing your true portfolio mix so you can rebalance with confidence and avoid constant tinkering.

Then we get into portfolio construction: equity levels that feel conservative vs aggressive in a risk parity style setup, when Treasury bond exposure may be on the high side, and how to think about diversifiers like gold (GLDM) and managed futures (DBMF). We also answer practical questions about VTI and VXUS, whether adding a dedicated growth fund matters, and how to split small cap value between AVUV and AVDV without over-optimizing.

Finally, we address the big fear: what happens if you invest or rebalance near all-time highs right before retirement? We walk through why a diversified risk parity style portfolio can reduce peak-valuation risk, how safe withdrawal rates look when you test retirement start dates near major market peaks, and why a written execution plan often beats trying to time the perfect day. If this helped, subscribe, share the show with a friend who’s nearing retirement, and leave us a review on your podcast app.

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In this episode we answer emails from Optimus Bill, Mark, and Drew.  We discuss a paper about value factor investing from Wes Gray, Section 351 exchanges, how to stick with the horse your rode in on, a long-run correlation analysis of various assets, and a listener's new financial practice.

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

Links:

Father McKenna Center Donation Page (please mention Risk Parity Radio in the comment section with your donation):  Donate - Father McKenna Center

Alpha Architect Value Factor Investing Paper:  AA-JBISFactorInvesting22LongOnlyValueInvesting.pdf

Interview of Wes Gray on Section 351 Exchanges and Other Topics:  Episode 70: Dr. Wes Gray discusses the unique tax benefits of ETFs and other topics of interest, host Rick Ferri | Bogleheads On Investing Podcast

Mark's Long-Term Correlation Matrix:  correlation_matrix (Mark Figley Episode 533).xlsx - Google Sheets

"Minimize Your Miss" Article:  Minimize Your Miss – Portfolio Charts

Drew's Money for Makers Book (Not An Endorsement -- Just A Favor For A Long-Time Listener):  Book | Money for Makers by Drew Feldman, APMA® | WideFrame Wealth

Breathless Unedited AI-Bot Summary:

If your portfolio plan only works when stocks are soaring, it’s not a plan, it’s a mood. We take on a set of sharp listener questions that hit the heart of risk parity investing and modern portfolio construction: when does small cap value truly earn its keep, how should you think about equal-weighted value strategies, and why “liquidity” often matters more to institutions than to everyday ETF investors who rebalance a few times a year. Along the way, we share our core view that the growth versus value split can be more important than the large versus small split for long-term asset allocation.

We also dig into an advanced but practical topic for the right person: Section 351 exchanges. If you’re sitting on highly appreciated legacy stocks or a concentrated inherited position, the promise of moving toward a diversified ETF structure without an immediate taxable event is compelling, but the real-world constraints are cost, complexity, and scale. We lay out what we know, who it tends to fit, and why most do-it-yourself investors are better served by simpler diversification steps earlier.

Then we tackle the uncomfortable truth: diversification can feel like failure during long stretches when the SP 500 leads. We talk behavior, drawdowns, and why educated DIY investors still need a realistic expectation for underperformance in strong stock years. A listener-built 100-year correlation matrix reinforces the point, highlighting how Treasury bonds, gold, and especially managed futures can bring low or even negative correlation when stocks drop. We close with our weekly portfolio review, including performance snapshots and upcoming rebalancing trades in leveraged allocations.

Subscribe for more clear, evidence-based investing talk, share this with a friend building a retirement portfolio, and leave a review so more DIY investors can find the show.
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In this episode we answer emails from Optimus Bill, Pete, and Andy.  We discuss SBLOCs vs margin accounts for liquidity in retirement, what "jumping the shark" looks like in blog form and why its a bad idea for all involved, and a listener's endowment-inspired variable withdrawal strategy (that should work just find).

Links:

Father McKenna Center Donation Page (please mention Risk Parity Radio in the comment section with your donation):  Donate - Father McKenna Center

Interactive Brokers Margin Rates:  Margin Rates and Financing | Interactive Brokers LLC

Pete's "Firefly"  Link:  #firefly #serenity #malcolmreynolds #nathanfillion #captain #captainma... | TikTok
Fonzie Jumps The Shark:  Fonzie Jumps Shark

Simpsons Jump The Shark:  The Simpsons Jump the Shark
Referenced SEC Disclosure:  SPY2026/06/05 - ADV Form 2A - Google Docs

Bonus Video On The Patterns of Deception of Shark Jumpers:  Episode 532 Bonus: Biased Skepticism and Patterns of Deception In the FI Blogosphere

Breathless Unedited AI-Bot Summary:

Borrowing against your portfolio can feel like a magic trick: you keep your investments, skip selling, and still get cash when you need it. The trick only works, though, if you understand the rules. We break down a listener question on S-block loans (securities-backed lines of credit) versus margin loans, including how these products are structured, how SOFR-based rates show up in real pricing, and why brokers like Interactive Brokers can look dramatically cheaper than the big-name platforms.

Then we dig into the detail that can flip the whole decision: taxes. Margin interest is often treated as investment interest and shows up on Form 4952, potentially landing as a Schedule A deduction. That can change your effective borrowing cost in a big way, especially in higher tax brackets. But does the same deduction apply to an S-block that is set up as a separate loan product? We talk through what we know, what we do not, and the exact question to take to your tax professional so you are not optimizing the wrong thing.

From there, the conversation pivots to retirement planning, sequence of returns risk, and why a small allocation to gold keeps popping up in safe withdrawal rate research. We also share a candid take on what happens when personal finance commentary drifts from useful analysis into sensational accusations, and why that shift can be harmful to audiences trying to make calm, long-term decisions.

We close by critiquing an endowment-style withdrawal rule designed to smooth spending while still responding to market performance, plus the real-life challenge every retiree faces: spending is not a straight line. If you want more episodes like this, subscribe, share the show with a friend who is nearing retirement, and leave a review with what question you want answered next.
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In this episode we respond to emails from Thirsty Horse, Joanne, Matt and Alan.  We share our gratitude for our listeners and reflect on how a listener community can become one of the most meaningful outcomes of a long-term investing project. We also provide an update on the Top of the T-Shirt fundraising campaign for the Father McKenna Center.  Next we answer two portfolio design questions about retirement drawdown constraints and how to fit them into the framework for portfolios with 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.

Links:

Father McKenna Center Donation Page (please mention Risk Parity Radio in the comment section with your donation):  Donate - Father McKenna Center

Charity Navigator Rating for The Father McKenna Center:  Charity Navigator - Rating for Father McKenna Center Inc.

Bengen "Richer Retirement" Sample Portfolio at Portfolio Charts:  Richer Retirement Portfolio – Portfolio Charts

Bill Bengen's "Richer Retirement" Content:  Bill Bengen’s New Book | Charts & Tools for You

Golden Ratio Compared with Version w/o Alternative Investments:  Portfolio Backtester for ETFs and Asset Allocation | testfolio

Afford Anything Risk Parity Portfolio Blueprint:  Afford Anything frank-vasquez-risk-parity-portfolio-BluePrint.pdf - Google Drive

Breathless Unedited AI-Bot Summary:

A week where stocks jump 3% to 5% and gold pops more than 7% can feel like the market is daring you to change your plan. We don’t take the bait. We walk through what actually happened across major asset classes, why we still refuse to time markets, and how a diversified risk parity approach is designed to keep you steady when headlines and price moves get loud.

We also start with something more important than portfolio math: the notes we received after my mom passed away, and what it means to build an audience that shows up for each other. From there, we share a progress update on our Father McKenna Center “top of the t-shirt” campaign, including matching funds, a Charity Navigator 100% rating, and a practical tip for tax-smart giving: donating appreciated shares can reduce capital gains while supporting a mission you care about.

Then we get into two listener questions that hit the real world. First: if you’re in the retirement drawdown phase and you can only use stock and bond ETFs or index funds, what would we actually hold and why? We talk safe withdrawal rate research, the role alternatives play, and what you might use as imperfect substitutes (value tilt, REITs, utilities, even gold miners) when gold and managed futures aren’t on the table. Second: what if you’re investing from New Zealand with limited fund access and a tax drag on US ETFs? We lay out a decision process for finding value-tilted funds locally, evaluating managed futures costs, and avoiding expensive “solutions” that quietly erase the benefit you’re chasing.
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