Risk Parity Radio

Latest Episodes:

Episode 208: Advice For New Investors -- We're Off To See The Wizard! Sep 28, 2022

Show notes

In this episode we discuss an email from and conversation with Paul Merriman. We follow up on his suggestion/request that we create an episode for beginning investors to help them get going in a simple way that can work. And then we embark on a very special trip. Very. Special.
Links:
The Four Phases of Saving and Investing for Retirement: The Four Phases Of Saving For Retirement (kitces.com) Earn = Kansas. Save = Munchkinland. Grow = The Roads To Emerald City. Preserve = Emerald City.
Paul Merriman website: Home - Paul Merriman
Paul Merriman Sound Investing podcast: Podcasts - Paul Merriman
Paul Merriman Best In Class Funds: Best-in-Class ETF Recommendations - Paul Merriman
Earn & Invest Podcast (#349) Interview of Paul Merriman: Are We Leaving Money on the Table? — Earn & Invest (earnandinvest.com)

Support the show

Episode 207: Freak Out With Math, Intermediate Term Portfolios, Annuities And Portfolio Reviews As Of September 23, 2022 Sep 24, 2022

Show notes

In this episode we answer emails from Arun, Jeffrey and Chris. We discuss using simple back-of-the-envelope estimation methods to solve for complex portfolio projections, using a risk parity style portfolio for intermediate accumulations, and re-cap annuity considerations from Episode 184.
And THEN we our go through our weekly and monthly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio.
Arun's question:
"What type of portfolio would you suggest for below scenario. I can invest $x a month for y years and can let it sit for n years. After y+n years would like to start withdrawing at least .75x dollars per month perpetually. Value of x would be less than $1000 and value of y would be 5-10 years but depending on future need and market condition it can stay longer or shorter. Ideally would like to have n=0 but that might be too ambitious. Is there to tool to play with these variables that you know and what type of portfolio would you suggest."

Additional Links:
Risk Savvy book: Risk Savvy: How to Make Good Decisions by Gerd Gigerenzer | Goodreads
Portfolio Visualizer Monte Carlo Simulator with Multi-stage Analyzer: Financial Goals (portfoliovisualizer.com)
Rule of 72: Rule of 72 - Wikipedia

Support the show

Episode 206: Mauboussin, Cowbell and Bogle, Oh My! Sep 21, 2022

Show notes

In this episode we answer questions from MyContactInfo, Wesley and Adam. In a tour de force presentation, we discuss Michael Mauboussin's book, "The Success Equation: Untangling Skill and Luck in Business, Sports and Investing", the implications of an all small-cap value portfolio and applying the ideas of Bruce Lee and Emerson to Jack Bogle's "Common Sense Investing". And we also take a frolic and detour into the Twilight Zone.
Links:
CFA Institute Book Review the The Success Equation: The Success Equation: Untangling Skill and Luck in Business, Sports, and Investing (a review) (cfainstitute.org)
Twilight Zone Episode Clips: Twilight Zone: Of Late I Think Of Cliffordville - YouTube
Earn & Invest Podcast (#349) Interview of Paul Merriman: Are We Leaving Money on the Table? — Earn & Invest (earnandinvest.com)
Rational Reminder Podcast Interview of Vanguard's Former CIO: Episode 216: Gus Sauter: Vanguard's Former CIO on Indexing, Active Management, and Private Equity — Rational Reminder

Support the show

Program Note (September 14) Sep 14, 2022

Show notes

Aaaand we're gone! Poof!
Back next week!

Support the show

Episode 205: Bonds On The Run, More Cowbell And Portfolio Reviews As Of September 9, 2022 Sep 10, 2022

Show notes

In this episode we answer emails from Connor, Paul and Paul Z. We discuss a new single bond ETF, Paul's risk parity style portfolio and AVUV vs. VIOV. And THEN we our go through our weekly and monthly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio.
Additional Links:
Connor's Article: Single-Bond ETFs Solve Some Key Investing Problems (wealthmanagement.com)
Analysis of Paul's Portfolio and Alternatives: Backtest Portfolio Asset Allocation (portfoliovisualizer.com)
Interview of Eduardo Repetto: Episode 43: Bogleheads on Investing – guest Eduardo Repetto, host Rick Ferri – Rick Ferri, CFA
AVUV Webpage: AVUV - Avantis® U.S. Small Cap Value ETF | Avantis Investors

Support the show

Episode 204: What Should I Do If I Am Dying And Want To Try Short-Term Trading? Sep 07, 2022

Show notes

In this episode I answer a question from Charles, who has a terminal illness. We go off topic and discuss books about dying, examples of people who did it well, and resources for short-term trading.
Links:
End of Life Series: Barbara Karnes' End of Life Guideline Series - BK Books – BK Books
The Five Invitations: The Book | The Five invitations: What Death Can Teach Us About Living Fully – by Frank Ostaseski
Taking Stock: Jordan Grumet | Welcome to JordanGrumet.com
Blue Zones Vitality Test: True Vitality Test by Blue Zones
Sit-Rise Test: This test could predict how long you will live - YouTube
Shadow Trader Site: ShadowTrader: Daily Market Trading News Stories & Market Education
Peter Reznicek Video: Peter Reznicek - ShadowTraders @ 1pm ET - How I prepare each morning to trade - YouTube
Tasty Trade: tastytrade: A Financial Network for Options & Futures Trading | tastytrade
Market Wizards Books: market wizards books schwager - Search (bing.com)
Big ERN Options Strategy: Trading like an Escape Artist: How I made money in October trading S&P Futures Options with 2x leverage – Early Retirement Now
Kelly Criterion: Kelly Criterion Definition (investopedia.com)
Ed Thorp Autobiography: A Man For All Markets - Edward O. Thorp (edwardothorp.com)

Support the show

Episode 203: Stop Using Blackberries, REITs, Data Sources And Portfolio Reviews As Of September 2, 2022 Sep 04, 2022

Show notes

In this episode we answer emails from Gen, Greg and Nathan. We discuss how to find funds using a fund screener and why you should not be using the investment account equivalents of blackberries and flip-phones any more, individual REIT selections, and value and growth data sources. I forgot to mention that the other individual REIT we hold is WY, which invests in timber (and thereby missed another opportunity to play the lumberjack song.)
And THEN we our go through our weekly and monthly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio.
Additional Links:
Fund Screener: Fund Screener (portfoliovisualizer.com)
Rob Berger Video About Vanguard's New Fees: Vanguard Fees Are Going Up -- Here's Why and How to Avoid Them - YouTube
Investopedia Article - Value vs. Growth in the S&P 500: Value or Growth Stocks: Which Is Better? (investopedia.com)
Value vs. Growth Over Time: Canterbury Investment Management - Value versus Growth: A Brief Historical View (canterburygroup.com)
DFA Matrix Book: Matrix+Book+2020.pdf (squarespace.com)
Walk For McKenna: Walk4McKenna - Father McKenna Center

Support the show

Episode 202: Buy, Borrow, Die And Why You Should Listen To Me (i.e., Nonsensical Ravings) Aug 31, 2022

Show notes

In this episode we answer questions from Andy and Todd. We discuss the Buy, Borrow, Die Strategy and everything you wanted to know about the Host (or maybe not) and his approach.
Links:
Luke Burgis Book About Mimetic Theory: Wanting: The Power of Mimetic Desire in Everyday Life by Luke Burgis | Goodreads
Barking Up The Wrong Tree Book: Barking Up the Wrong Tree: The Surprising Science Behind Why Everything You Know About Success Is (Mostly) Wrong by Eric Barker | Goodreads
Interview of Rick Ferri About His Portfolio: Show Us Your Portfolio: Rick Ferri - YouTube

Support the show

Episode 201: The Limits On Risk/Reward Ratios, What To Tell Your Kids And Avoiding Trading Pitfalls Aug 24, 2022

Show notes

In this episode we answer emails from Micah, Steve and Keith. We discuss the limit on the usefulness of Sharpe and Sortino ratios, helping out Steve's daughters with building and managing a portfolio for medium-length goals and what else Uncle Frank says to guide his adult kids with ant brains and grasshopper brains and comparing actual performances with Portfolio Visualizer models.
Links:
Portfolio Visualizer comparison of short term treasuries and gold: Backtest Portfolio Asset Class Allocation (portfoliovisualizer.com)
PHYS ETF particulars: Sprott Physical Gold Trust
Walk For McKenna: Walk4McKenna - Father McKenna Center

Support the show

Episode 200: Putting The Opus In Your Magnum With A Milestone And Portfolio Reviews As Of August 19, 2022 Aug 21, 2022

Show notes

In this episode we answer emails from Justus (x2), Anderson and Blake. We discuss life transitions, what I've learned over an evolving DIY investing career, and Blake's Pathway of FI.
And THEN we our go through our weekly and monthly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio.
Additional Links:
Portfolio Charts Sample Portfolios: Portfolios – Portfolio Charts
Risk Parity Chronicles Resources Page: Resources - Risk Parity Chronicles
Kitces Four Phases Article: The Four Phases Of Saving For Retirement (kitces.com)
Blake's Article: Model-Portfolios-for-Every-Financial-Stage.pdf (pathwaytofi.com)
Blake's Model Portfolio Construction Paper: Construction-and-Analysis-of-the-Pathway-to-FI-Model-Portfolios.pdf (pathwaytofi.com)
Morningstar Tool With International Fund: VXUS – Portfolio – Vanguard Total International Stock ETF | Morningstar
Walk For McKenna: Walk4McKenna - Father McKenna Center