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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