Risk Parity Radio

Frank Vasquez
  • 4.5 (306)
  • Investing
  • Updated Semiweekly

Risk Parity Radio is a podcast about investing located at www.riskparityradio.com.  RPR explores risk-parity style portfolios comprised of uncorrelated or negatively correlated asset classes -- stocks, selected bonds, gold, managed futures, and other easily accessible fund options for the DIY investor.  The goal is to construct portfolios that are robust and can be drawn down on in perpetuity, and to maximize projected Safe Withdrawal Rates regardless of projected overall returns.

  1. 2d ago

    Episode 531: Expressing Our Heartfelt Gratitude, Working With Asset Choice Constraints, And Portfolio Reviews As Of August 7, 2026

    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. Support the show

  2. 5d ago

    Episode 530: Choosing Levered Funds (Gambling Problems!), Balancing Portfolio Goals And Trade-offs, And Fun With A ChatGPT Analysis

    In this episode we answer emails from Eli, Optimus Bill, and James.  We discuss variations in fund approaches for adding leverage, when fees are more likely to matter, what kinds of people and goals can benefit from risk parity style approaches, the trade-offs in lower and higher equity approaches (with a recent insight from Bill Bengen), and a ChatGPT analysis from a listener. Links:  Father McKenna Center Donation Page (please mention Risk Parity Radio in the comment section with your donation):  Donate - Father McKenna Center Catching Up To FI with Yours Truly:  Are Bonds Dead?: Fixed Income Fundamentals (Part 1) | Frank Vasquez | Episode 229 Afford Anything Podcast #618:  They Ran Out of Money. I Didn’t. Here’s Why. Afford Anything Risk Parity Portfolio Blueprint:  Afford Anything frank-vasquez-risk-parity-portfolio-BluePrint.pdf - Google Drive FI Physician Article:  How Withdrawal Rate Influences Diversifiers in a Risk Parity Portfolio Breathless AI-Bot Summary: You can build a portfolio that looks elegant on paper and still miss the only question that matters: what is this portfolio supposed to do for your life? We dig into listener mail that forces the issue, starting with a smart (and very specific) proposal to add leverage using return-stacked ETFs instead of daily-reset leveraged funds. We talk through what these products are trying to achieve, why “macroallocation” often drives the long-run behavior, and where the real uncertainty lives: rebalancing mechanics, limited history, and the practical cost of complexity. From there, we zoom out to risk parity in retirement. We answer whether there’s a minimum nest egg size to use a risk parity portfolio (spoiler: it’s not about size, it’s about goals), and why many people with very low withdrawal rates simply don’t need a portfolio engineered to maximize safe withdrawal rate. If you’re in the 0% to 3% withdrawal camp, you may have far more freedom than you think, and your asset allocation can optimize for something else entirely, like long-term growth, simplicity, or personal comfort. We also get tactical: Treasury STRIPS funds as a form of bond “pseudo-leverage,” how that can free up space for growth assets while keeping recession insurance, and how to think about minimum position sizes based on volatility instead of arbitrary percentage floors. Finally, we respond to a question about Golden Butterfly versus Golden Ratio style portfolios, sequence of returns risk, and whether a reverse glide path or bucket-style framing can help without turning your retirement plan into an overengineered project. If you like practical portfolio design, risk parity investing, safe withdrawal rate thinking, and clear tradeoffs around leverage, fees, and retirement asset allocation, hit play. Subscribe, share this with a friend who loves tinkering, and leave us a review with your biggest takeaway. Support the show

  3. Aug 2

    Episode 529: Handling Retirement Drawdowns, An RPR Portfolio With Large Cap Momentum, Investing In Your Health, And Portfolio Reviews As Of July 31, 2026

    In this episode we answer emails from Luc, (from Quebec!), Nick, and Isaiah.  We discuss surviving ugly drawdowns and bad decades, building a risk parity portfolio that still grows, momentum funds, avoiding fund hopping, and treating health like a real priority. 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 Catching Up To FI With Ben Carlson:  Risk & Reward: Stress Testing the Long Term Buy and Hold Strategy | Ben Carlson | 225 Portfolio Comparison Starting In 2000:  Portfolio Backtester for ETFs and Asset Allocation | testfolio Portfolio Charts Heat Map Chart:  Heat Map – Portfolio Charts Portfolio Charts Article:  Minimize Your Miss – Portfolio Charts Afford Anything Podcast #618:  They Ran Out of Money. I Didn’t. Here’s Why. Afford Anything Risk Parity Portfolio Blueprint:  Afford Anything frank-vasquez-risk-parity-portfolio-BluePrint.pdf - Google Drive Breathless Unedited AI-Bot Summary: Imagine retiring into a market that refuses to cooperate. A listener asks the question most withdrawal rate debates dodge: could you keep taking inflation-adjusted withdrawals while your balance shrinks through a 2000-style lost decade, and what would make you cut spending in real time? We walk through how we think about drawdowns, sequence of returns risk, and why “toughing it out” is easier when the portfolio is built for multiple economic outcomes. That leads to practical stress testing: using historical analysis, TestFol.io, and Portfolio Charts heat maps to compare risk parity portfolios, a 60/40, and classic three-fund approaches under the worst start dates. We also share why Monte Carlo alone can be misleading if it relies on simplified assumptions instead of real historical regimes. Next, we tackle a portfolio construction email that hits a modern dilemma: can you be too diversified in a risk parity setup? We unpack a Golden Ratio-style allocation with US and international equity sleeves, small cap value, momentum funds, long-term Treasuries, gold, managed futures, and cash. We discuss when that mix makes sense for decumulation versus accumulation, how momentum can function as a growth proxy, and the one behavior that reliably breaks good plans: fund hopping. We end with a thoughtful note on the “life portfolio” many investors ignore: health. Exercise, consistency, convenience, and even medical support come up as we talk about aligning money decisions with longevity and day-to-day vitality. If this helped you think more clearly about retirement withdrawals, risk parity investing, and building a plan you can stick with, subscribe, share the show, and leave a review. Support the show

  4. Jul 29

    Episode 528: Our Annual Portfolio Rebalancings, Implementing A Sample Reverse Glide Path, And Thanking Our Listeners For Their Kindness And Generosity

    We close season six by walking through our annual July rebalancings of the first four sample risk parity style portfolios and talking about their raison d'être. We also share a practical reverse glide path strategy that we plan to apply to the sample Golden Butterfly portfolio over the course of the next ten years, starting with this one. And we also thank our listeners for their kind words and generosity. Links: Father McKenna Center Donation Page (please mention Risk Parity Radio in the comment section with your donation):  Donate - Father McKenna Center Michael Kitces Reverse Glidepath Article (listen to Episode 469 for more info on that):  The Benefits Of A Rising Equity Glidepath In Retirement Breathless Unedited AI-Bot Summary: Rebalancing sounds boring until you realize it’s the moment your plan either stays real or turns into wishful thinking. We’re ending season six with our annual July rebalance across four sample portfolios, using actual target percentages, real fund lineups, and the same rules we follow every year to keep withdrawals and asset allocation from drifting. We start with the All Seasons Portfolio as a reference case for a very conservative risk parity style mix, then move into the Golden Butterfly where we add a twist: a reverse glide path. Instead of locking in a static stock percentage, we gradually step stock exposure higher over a decade by trimming the lowest-volatility sleeve, aiming to improve retirement resilience without turning the process into constant tinkering. Along the way we hit the practical why behind rebalancing: it quietly forces buy low and sell high when your emotions would rather do the opposite. From there, we lay out the Golden Ratio Portfolio and the simplest “cash bucket” management we know, designed to minimize trades and mental overhead while still keeping a diversified retirement portfolio. We finish with the Risk Parity Ultimate Portfolio, our educational kitchen-sink mix that includes Treasury STRIPS, preferred shares, managed futures, a long-short fund, gold, and a small bitcoin slice so you can see how volatile sleeves behave during a rebalance. If you want a clear, repeatable portfolio rebalancing process for retirement, safe withdrawal rate minded allocations, and a realistic look at diversified assets, hit play. Subscribe, share the episode with a DIY investor friend, and leave a review with the portfolio rule you want us to stress-test next. Support the show

  5. Jul 22

    Episode 527: Test Portfolios, Incorporating A Forced Cash Build-Up, Assets For Inflation, And An Update On Mom

    In this episode we answer emails from The Nameless One, Jebenizer, and C.M. We discuss practice drawdown portfolios, an unusual deferred pension cash build-up situation and how to handle it, assets that benefit from inflation, and simple rules for contributions and rebalancing that reduce taxes and stress.  And we share an update about Frank's Mom. Links: Father McKenna Center Donation Page (please mention Risk Parity Radio in the comment section with your donation):  Donate - Father McKenna Center Rose Vasquez Memorial:  Rose Vasquez Memorial Service July 15, 2026 Bigger Pockets Money Podcast #1:  The Secret to a 5% Safe Withdrawal Rate | Frank Vasquez Bigger Pockets Money Test Risk Parity Style Portfolio:  We Built a 5% SWR Retirement Portfolio Using Fidelity in 48 Minutes (Golden Ratio Portfolio) Afford Anything Podcast #618:  They Ran Out of Money. I Didn’t. Here’s Why. Afford Anything Risk Parity Portfolio Blueprint:  Afford Anything frank-vasquez-risk-parity-portfolio-BluePrint.pdf - Google Drive Slide Deck:  Afford Anything Episode 618 RPR Basics Slide Deck.pdf - Google Drive Video Summary:  Afford Anything Episode 618 Video Summary.mp4 - Google Drive Breathless Unedited AI-Bot Summary: A retirement portfolio is one thing on paper and something else entirely when you have to live with it. We start with a quick personal update, then jump into listener emails that turn risk parity investing into hands-on decision-making you can actually copy and test. Along the way, we talk about the “Top of the T-shirt” charity campaign and why we keep the show sponsor-free, then pivot into the kind of practical portfolio questions that show up right before retirement. One listener builds a $10,000 drawdown portfolio as a practice run while still in the accumulation phase. The rules are clear: rebalance annually, withdraw 5% of the original amount every year, increase that withdrawal by CPI, and do not save it. We dig into why this simple experiment is so effective for building confidence with withdrawals, rebalancing discipline, and the real emotions that come with spending from an investment account. We also connect it to the Golden Ratio portfolio concept and how diversified asset allocation can support higher safe withdrawal rates. Another listener has a rare situation: a deferred pension option that forces pension payments into a tax-deferred account earning a flat 4%, creating a growing cash-like allocation with limited liquidity. We explain how to treat that cash as part of the total portfolio right now, how it can change your stock and bond mix, and what to do when the funds become available. We also tackle inflation hedging for retirement planning, including why Treasury bonds suffer in inflation, how value stocks like property and casualty insurers can help, and why managed futures can be a powerful inflation hedge. If you like clear rules, real portfolios, and honest trade-offs, subscribe, share the episode with a friend, and leave a review so more do-it-yourself investors can find us. Start with this Description Support the show

  6. Jul 12

    Episode 526: Celebrating Your Generosity, Some Unusual Cowbell, Young Listener Correlation Questions, Investing A Windfall, And Portfolio Reviews As Of July 10, 2026

    In this episode we answer emails from I Have No Name, Shellie, Midwest Nice, and Mr. Ed (a motley crew indeed!).  We discuss some massively funny generosity to our Top of the T-Shirt Campaign for the Father McKenna Center, an odd small cap value fund in a 401(k) and the issues surrounding holding too much cash, how stocks and long-term treasury bonds can both rise while still showing negative correlation and how that relates to the Four Quadrant Model, and redeploying proceeds from the sale of real estate.  And lutefisk. 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 PMJAX at Morningstar:  PMJAX – Portfolio – PIMCO RAE US Small A | Morningstar PMJAX Comparison:  Asset Analyzer for ETFs, Stocks, and Funds | testfolio Portfolios With More and Less Cash Comparison:  Portfolio Backtester for ETFs and Asset Allocation | testfolio S&P500 and LT Treasury Bond Comparison:  Asset Analyzer for ETFs, Stocks, and Funds | testfolio The Four Quadrant Model Exquisitely Explained With Illustrations Inspired By Vermeer:  The Four Quadrant Wealth Atlas.pdf - Google Drive Four Quadrant Model Video:  Understanding Correlations and Diversification Using the Four Quadrant Model Breathless Unedited AI-Bot Summary: A listener spots a new “small cap value” option in a 401(k) and asks the question most DIY investors eventually face: how do you tell what a fund really is when the plan uses a custom name and no ticker? We walk through a practical, repeatable research process using an AI chatbot (Gemini or ChatGPT) to find the closest public equivalent, then confirming style exposure and performance on Morningstar and Testfol.io. Along the way we discuss what “micro” exposure can mean, why “perfect” isn’t required inside a restrictive plan, and how you can still build a solid risk parity-style asset allocation with the tools you have. Then we tackle the comfort blanket that can quietly cost you money: cash. We explain cash drag, why holding 25% in cash can act like you’re not investing a quarter of your portfolio, and why bucket strategies don’t magically solve sequence of returns risk just by relabeling accounts. We also dig into tax-efficient investing and asset location, including why taxable cash interest can be brutal in retirement and when it may make sense to reposition assets between taxable and retirement accounts. A father writes in with his son’s surprisingly sharp question about bond stock correlation: if stocks go up over time and long-term Treasury bonds are negatively correlated, do bonds usually go down? We answer with long-run data, show why both can rise while still diversifying each other, and point to specific regimes like 2000 to 2010 versus 2022. We also field a real-world planning scenario on investing property sale proceeds while keeping ACA premium tax credits in mind by managing MAGI, before wrapping with our weekly portfolio review across the eight sample portfolios (VOO, QQQ, VIOV, GLDM, VGLT, PDBC, PFFB/PFFV, DBMF and more). Subscribe for more practical risk parity investing guidance, share this with a friend who’s stuck in a confusing 401(k), and leave a rating and review so more DIY investors can find us. Support the show

  7. Jul 8

    Episode 525: Guiding Young America's Teachers, Assessing Academic TIPS Ladder Nonsense, And Checking Out A Cat Bond ETF

    In this episode we answer emails from Ethan, Joe, and Jim.  We discuss a plan for young teachers to reach early financial independence with the right accounts and a little encouragement, the peculiar benefits of 457s and Roth contributions, a critical read of an academic article about an impractical TIPS ladder strategy, and the real-world problems with 30-year TIPS ladders, including complexity, tax issues, and longevity risk.  We also discuss catastrophe bonds as an asset class and and why the new ILS ETF looks expensive and underwhelming at the moment And we touch on our fund raising campaign for the Father McKenna Center. Links: Father McKenna Center Donation Page (please mention Risk Parity Radio in the comment section with your donation):  Donate - Father McKenna Center ChooseFI Teacher Podcast:  The Unfair Financial Advantage of Teachers | Ep 13 ARVA TIPS Ladder Article:  Full article: The Only Other Spending Rule Article You Will Ever Need Breathless Unedited AI-Bot Summary: A 457(b) can be the difference between “retire early” and “wait it out,” and we dig into why. We start by answering a detailed email from a young pair of teachers building wealth with a golden ratio portfolio while trying to bridge the years before age 59.5. We talk through tax buckets, account access, and what actually matters when you have Roth IRAs, taxable brokerage money, HSAs, employer plans, and the unique early-withdrawal rules of a 457(b) after you separate from service. Then we switch gears to retirement drawdown strategies and put a popular “spending rule” article under cross-examination. We walk through the assumptions behind ARVA and a 30-year TIPS ladder approach, why ultra-variable withdrawals may be unrealistic, and why complexity does not automatically equal safety. If you care about safe withdrawal rate research, inflation protection, and building a portfolio that can handle real life, you will hear exactly where the paper breaks down and what we would focus on instead. We wrap with a listener question on catastrophe bonds and the Brookmont Catastrophic Bond ETF (ILS). Cat bonds can look like the perfect uncorrelated alternative asset on paper, but fees and implementation details matter. If you’re building a diversified risk parity style asset allocation, we explain where cat bonds might fit, why this ETF doesn’t yet, and what we’d watch going forward. Subscribe, share this with a friend who’s planning early retirement, and leave a review so more DIY investors can find the show. Support the show

  8. Jul 4

    Episode 524: Celebrating Listener Retirements And Generosity, Fun With Claude, Jeremy Grantham Says Buy Gold And Long Bonds, And Portfolio Reviews As Of July 3, 2026

    In this episode we answer emails from Joe, Ashley, and Chris.  First, we celebrate the early retirements and generosity of our listeners, spotlighting what retirement feels like when it is driven by joy and choice instead of fear. Then we answer a near-retirement question about bubble warnings, international investing, the proper way to use expert opinions, and how to build a risk parity style portfolio that can survive drawdowns and fund withdrawals.  With the help of Claude. And we discuss our Top of the T-shirt Campaign (Part Deux!) for the Father McKenna Center. 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 (please mention Risk Parity Radio in the comment section with your donation):  Donate - Father McKenna Center Yours Truly on Jesse Cramer's Podcast:  Are You Hoarding, Hustling, or Harvesting in Retirement? - E144 Video Summary Version:  The Harvesting Imperative: Structuring Retirement Around Well Being, Not Money Slide Show Summary Version:  Jesse Cramer Presents The Three H's.pdf - Google Drive Video Summary of RPR Episode 508:  RPR Episode 508 Illustrated: The Three H’s of Retirement Jeremy Grantham on the Long-View (forward to minute 42 for his diversification recommendations):  Jeremy Grantham ‘Almost Everything Looks More Attractive Than the US Equity Market’ - YouTube Michael Batnick (not Josh Brown!) Critique of CAPE Ratio-Based "Predictions":  Stocks Are More Expensive Than They Used to Be Breathless Unedited AI-Bot Summary: You can do everything “right” for decades and still blow up retirement by making one mistake at the wrong time: heading into the drawdown years with a stock-heavy portfolio and no ballast. We kick off with a listener note that hits the best part of financial independence, retiring at 45 with true optionality and a plan built around joy instead of restriction. That story opens a bigger question: what is money for once you’ve already proven you can save it? We dig into the psychology of harvesting wealth and the practical realities of sequence of returns risk, especially in the five years before and after you stop working. We talk about spending that actually improves well being, including relationships, experiences, buying back your time, and giving, plus why so many high savers get stuck in hoarding or hustling modes. Along the way, we share updates on the Father McKenna Center and how listener generosity turns portfolio talk into real-world impact. Then we tackle a timely investing worry: bubble warnings and Jeremy Grantham’s cautions around US equities and AI hype. We break down why opinion shopping is a dead end, why growth vs value diversification matters more than US vs international for drawdown safety, and how funds like long-term Treasuries, gold, and managed futures show up in resilient risk parity style portfolios such as the Golden Butterfly and Golden Ratio. We also cover TSP international limitations, plus our weekly portfolio reviews and July withdrawal amounts. If you found this useful, subscribe, share it with a friend who is near retirement, and leave a review so more DIY investors can find us. Support the show

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About

Risk Parity Radio is a podcast about investing located at www.riskparityradio.com.  RPR explores risk-parity style portfolios comprised of uncorrelated or negatively correlated asset classes -- stocks, selected bonds, gold, managed futures, and other easily accessible fund options for the DIY investor.  The goal is to construct portfolios that are robust and can be drawn down on in perpetuity, and to maximize projected Safe Withdrawal Rates regardless of projected overall returns.

Information

  • Creator
    Frank Vasquez
  • Years Active
    2020 - 2026
  • Episodes
    533
  • Rating
    Explicit
  • Copyright
    © 2026 Risk Parity Radio
  • Show Website
    Risk Parity Radio

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