Risk Parity Radio

Frank Vasquez
  • 4.9 (7)
  • Investing
  • Daily

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. 7h ago

    Episode 551: Stop Chasing Yield, The Limitations Of International Diversification, And Portfolio Reviews As Of November 6, 2026

    In this episode we answer emails from Jeff and Colin.  We discuss why auto call ETFs and covered call funds usually just change payouts rather than improve underlying performance, why forced income creates forced taxes and reduces flexibility in a taxable retirement portfolio, why building a retirement “paycheck” is mostly a marketing pitch and selling shares is better approach, how to use a small test portfolio as exposure therapy for share selling fears, why global stock diversification often acts like a currency bet rather than true business diversification, and why value versus growth is more meaningful diversifier in drawdowns than US versus international. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio. Additional Link: Acadian Article re International Stocks:  Putting Portfolios Together when the World is Falling Apart | Acadian Asset Management Breathless Unedited AI-Bot Summary: A 13% yield can feel like a warm blanket in retirement, but it can also be a tax bill and a slow leak in disguise. We dig into a listener question about auto call and “high income” ETFs and explain why these products often do not improve expected results. They mainly repackage the same stock market risk into a payout that looks comforting, while reducing your flexibility and sometimes cannibalizing total return. Then we switch to global stock diversification and the popular claim that de-globalization will lower correlations and make international stocks the missing piece. I explain why broad international index funds can wind up behaving like an indirect currency bet, why the data matters more than the story, and why diversification across business types, especially value versus growth, can matter more when markets are falling. If you really want currency exposure, we talk about why managed futures may be a cleaner, more intentional tool than buying international equities for that purpose. We wrap with the weekly market snapshot and performance review of the eight sample portfolios, covering US stocks, small cap value, long-term Treasuries, gold, commodities, REITs, preferred shares, and managed futures. If you want practical retirement portfolio management, risk parity style asset allocation, and a calmer approach to drawdowns, hit play, then subscribe, share the show with a friend, and leave a rating or review so more DIY investors can find it. Support the show

  2. 4d ago

    Episode 550: Stupid (Typical) Financial Media Tricks, Mandelbrot Fractal Mania, And A Golden Ratio Application

    In this episode we answer emails from George, James and Yigitalp.  We discuss stupid financial media assumptions and the vapid analysis that often follows from them, dig into Mandelbrot and fractals to explain why markets defy neat bell-curve models, then troubleshoot a Golden Ratio style portfolio built with UCITS ETFs, leverage, and diversifiers. Links: WSJ Opinion Article:  Opinion | You’re Probably Overinvested in Bonds Blogpost about Mandelbrot and Fractal Math:  The Fractal Lens - Prospecting Mimetic Fractals Misbehavior of Markets Book:  The (Mis)Behavior of Markets by Benoît B. Mandelbrot | Goodreads Zooming In On A Mandelbrot Set Video:  Eye of the Universe - Mandelbrot Fractal Zoom (e1091) (4k 60fps) - YouTube Cool Number Nerd Video:  Fibonacci Numbers hidden in the Mandelbrot Set - Numberphile Afford Anything Risk Parity Portfolio Blueprint:  Afford Anything frank-vasquez-risk-parity-portfolio-BluePrint.pdf - Google Drive Breathless Unedited AI-Bot Summary: “You’re probably overinvested in bonds” is the kind of headline that sounds helpful until you ask the only question that matters: what is your portfolio supposed to do for you? We challenge the lazy defaults that still dominate personal finance content, from treating the 60/40 portfolio like a universal baseline to pushing age-based stock formulas that ignore spending needs, flexibility, and real-world goals. If your plan is to never touch your assets and leave a big bequest, a stock-heavy 90/10 approach can make sense. If you plan to draw from your portfolio, the math and the risks look very different. We also go deeper on why markets refuse to behave like tidy textbooks. Using Benoit Mandelbrot and fractal finance as the jumping-off point, we talk about fat tails, power laws, and why “average return plus standard deviation” Monte Carlo simulations can create false confidence. Instead of pretending we can forecast with precision, we focus on building portfolios that can survive different economic regimes, a core idea behind risk parity style diversification and more resilient asset allocation. Then we answer a detailed listener email from a European investor building a Golden Ratio portfolio with UCITS ETFs, including a levered balanced fund, small caps, long-duration bonds, gold, managed futures (DBMF), and a small bitcoin slice. We show how leverage changes your true exposures, why multi-asset levered funds make the math harder, and how to think in exposures first before picking more “diversifiers.” If you get value from this kind of practical portfolio construction talk, subscribe, share the show, and leave a review so more DIY investors can find it. Support the show

  3. Nov 1

    Episode 549: Fairfax CASA Thanks You, A Deep Dive Into Motivational Speakers, And Portfolio Reviews As Of October 30, 2026

    In this episode, we share big news from our Fairfax CASA work and what your generosity has made possible.  Then we pivot to an email from Todd and go on a deep dive on motivational speakers and what actually helps people change.  In a van.  Down by the RIVER. 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: Fairfax CASA Donation Page:  Donate - Fairfax CASA Acres of Diamonds:  Acres of Diamonds Audiobook | Russell H. Conwell | Full The Strangest Secret:  The Strangest Secret Earl Nightingale Conant 1950's Original FULL Jim Rohn "Walk Away":  Walk Away From The 97 Percent - Jim Rohn Breathless Unedited AI-Bot Summary: A “major award” is nice, but the real win is what happens when a community turns attention into action. We start by sharing personal news from our work with Fairfax CASA and a recognition that belongs to all of you as much as it belongs to us: listeners of the show have now raised over $66,000 to support child advocacy for kids navigating the court system after abuse or neglect. We talk about why that mission matters, and why linking money to meaning can keep your long-term plan steady when markets and life get noisy. Then we pivot hard into a listener question that lets me do what I love: trace the actual history of motivational speakers. We go from Ben Franklin and the self-made habit mindset, through American self-reliance, transcendentalism, traveling lectures, and “Acres of Diamonds,” all the way to the modern personal development industry. Along the way, we separate practical tools from magical thinking, including research on why “manifesting” can backfire by reducing effort. The anchor takeaway is Jim Rohn’s line I keep coming back to: affirmation without discipline is the beginning of delusion. We close with the weekly risk parity portfolio review and November distributions for eight sample portfolios, covering market moves across the S&P 500, NASDAQ, small cap value, long Treasuries, gold, commodities, and managed futures. If you like asset allocation, diversification, rebalancing, withdrawal rate planning, and a no-hype approach to DIY investing, you’ll have plenty to dig into here. Subscribe, share this with a friend who needs a reset, and leave a review so more long-term investors can find the show. Support the show

  4. Oct 29

    Episode 548: The Intersection of Biased Skepticism, Shark Jumping (From Ep. 532), And Personal Finance Hoarding Culture

    This is the follow-up episode to the "Jumping the Shark" segment in Episode 532 that we promised to create (but wish we didn't have to).  It discusses the fallacies and misrepresentations in the Early Retirement Now blog and its recent posts about Risk Parity Radio.  Due to their defamatory nature and evidence of malicious intent, and for other legal reasons, we will not be republishing those posts.  We will return to our regularly scheduled programming in the next episode.  Thank you for your patience. Links: October 10, 2022 ERN Toolbox Analysis of Risk Parity-Style Portfolio:  ERN Toolbox Analysis of RP Portfolio 10-10-2022.jpg - Google Drive October 10, 2022 ERN Toolbox Analysis of 75/25 Portfolio:  ERN Toolbox Analysis of 75-25 Portfolio 10-10-2022.jpg - Google Drive Accompanying Slides:  2022-10-10 ERN Toolbox Portfolio Comparison Analysis.pdf - Google Drive Accompanying Video on Comparative Analysis:  The Real ERN Toolbox Analysis Comparing A Risk Parity Portfolio With A 75/25 Portfolio EconoMe 2025 Presentation:  F. Vasquez EconoMe 2025 Presentation.pdf - Google Drive Video re Biased Skepticism Generally on ERN Blog:  Episode 532 Bonus: Biased Skepticism and Patterns of Deception In the FI Blogosphere Report on Fallacies and Misrepresentations:  ERNs 72 Fallacies, Mispresentations and Insults In Blog Posts About Risk Parity Radio.pdf - Google Drive Accompanying Slide Deck 1:  Slide Summary 1 of Blog Post Fallacies and Misrepresentations.pdf - Google Drive Accompanying Slide Deck 2:  Slide Summary 2 of Blog Post Fallacies and Misrepresentations.pdf - Google Drive Accompanying Video on 72 Fallacies and Misrepresentations:   How Early Retirement Now Wields Big Fallacies And Insults To Promote Itself At The Expense Of Others Large Cap Growth/Small Cap Value vs. S&P 500 Comparison:  Portfolio Backtester for ETFs and Asset Allocation | testfolio 2022 Comparison -- RP Portfolios vs. 75/25:  Portfolio Backtester for ETFs and Asset Allocation | testfolio The Fundamental Problems with Overly Conservative Planning Assumptions:  The Crushing Cost of Conservative Retirement Planning - The Best Interest Breathless AI-Bot Summary: A retirement portfolio argument gets ugly fast when people stop debating results and start debating labels. We pull the conversation back to the one question that matters for real retirees: what survives the worst historical sequences of returns while supporting a meaningful withdrawal rate? We walk through the history behind the Early Retirement Now “toolbox” and revisit the author’s own 2022 backtest of a risk parity style allocation that blends broad US stocks, small cap value exposure, Treasury bonds, and gold. Using the same rules and the same field of play, that analysis shows a materially higher safe withdrawal rate than a simple 75/25 stock bond portfolio, especially around major market peaks where valuation risk and long drawdowns can break the 4% rule. From there, we unpack how portfolio discussions go off the rails: straw man proxies for managed futures like DBMF, return assumptions that handicap diversifiers, cherry picked time windows that erase modern gold behavior, and goalpost shifting that swaps “safe withdrawal rate” for “bull market returns” midstream. We also explain why systematic factor tilting is not stock picking, and how you can sanity check claims with replicable backtesting across multiple tools, including Testfolio. If you care about retirement planning, safe withdrawal rates, and sequence risk, this is a practical roadmap for spotting bad modeling before it costs you years of underspending and wasted time dealing with Biased Skeptics and dishonest rhetoric. Support the show

  5. Oct 25

    Episode 547: The RPR Reddit Forum, A Great Many Topics On Portfolios And Taxes, And Portfolio Reviews As Of October 23, 2026

    In this episode we address a cornucopia of topics in emails from Alex, Superb Diamond Range, and Mark.  We discuss the Risk Parity Radio Reddit forum started by listener Adrian, an OPTRA-inspired portfolio with lower leverage and real-world tax location choices, extending managed futures history for better portfolio testing and expectations, why covered call ETFs usually change payouts more than outcomes, using OpenSocialsecurity.com to model claiming strategies, a simple UK-focused risk parity allocation and how to think about equity weight and value tilt, why fees matter less than people think in many modern ETF choices, withdrawal order and Roth conversions as situation-specific decisions that change every year, why good tax advice can add more value than investment tweaks. 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 Center Risk Parity Radio Reddit Forum (courtesy Adrian):  riskparityradio Alex's Portfolio (paywall):  Portfolio Backtester for ETFs and Asset Allocation | testfolio Extending Managed Futures Data back to 1971:  I reconstructed a trend-following return series back to 1971. Here is the methodology. : r/LETFs One of a Series of Ben Felix Videos on Covered Call Funds: Covered Calls: What People (Still) Get Wrong Open Social Security:  Open Social Security: Free, Open-Source Social Security Calculator Superb Diamond Range YouTube Channel:  Superb Diamond Range Podcast - YouTube Mark's Bigger Pockets Interview:  Tax Efficient Ways to Withdraw Money in Early Retirement Mark's Slide Presentation:  Alternatives to Sequential Drawdown - Google Slides Breathless AI-Bot Summary:   Most investing advice gets fuzzy right when you need it most: the moment you stop accumulating and start living off your portfolio. We dig into real listener questions that force clean thinking about risk parity portfolio design, early retirement withdrawals, and the uncomfortable truth that taxes can matter more than the exact tickers you pick. We start with a detailed listener build based on an OPTRA-style framework, including how they adjust leverage, blend stocks with bonds, gold, managed futures, and alternatives, and even work through tax location choices for brokerage versus IRA and 401(k) assets. That leads into a blunt conversation about covered call ETFs and other structured “income” products: what they can do, what they cannot do, and why so many shiny new ETFs are really just higher-fee packaging. We also share a valuable community resource for extending managed futures data for backtesting, plus a practical nod to OpenSocialsecurity.com for modeling claiming decisions. Then we go deep on decumulation strategy. There is no single correct “withdrawal order” because your best move depends on your tax brackets, deductions, healthcare costs, income mix, and what changes year to year. We explain why rigid rules of thumb break, why fourth-quarter tax planning matters, and why paying for strong tax advice can produce more real “alpha” than endlessly tinkering with portfolio allocations. We wrap with our weekly review of market performance and the eight sample portfolios, highlighting how diversification shows up when different assets lead and lag. Subscribe, share this with a friend who’s planning retirement, and leave a review with the question you want us to tackle next. Support the show

  6. Oct 22

    Episode 546: Dual Momentum, Equity Glide Paths, And Here's Johnny From Charlottesville!

    In this episode we answer emails from Multi-family Investor, Nathan, and John.  We discuss dual momentum strategies, equity glide paths and the Bengen, Pfau, and Kitces research, letting equity drift higher to reduce rebalancing and transactions, managed futures proxy limits and why commodities are imperfect stand ins, and SDMF versus DBMF. Links: Dual Momentum Explanation Video:  DUAL MOMENTUM | Momentum Trading Strategy by Gary Antonacci Portfolio Visualizer Dual Momentum Analysis Page:  Test Tactical Allocation Models BestFolio YouTube Channel: BestFolio - YouTube Bengen Book:  Bill Bengen’s New Book | A Richer Retirement: Supercharging the 4% Rule to Spend More and Enjoy More. John's Summary of Risk Parity Radio Over The Years:  Episode 445: "Funny How" With Listener Humor, Rebalancing Leveraged Funds, And CTA | Risk Parity Radio Breathless Unedited AI-Bot Summary: Dual momentum and risk parity can look strangely similar in a backtest chart, right up until you try to live with one of them in a real retirement portfolio. We take three listener emails and use them to pressure test what matters most when you are optimizing for sustainable spending, low stress execution, and fewer “gotchas” at tax time. First, we react to a clever tactic: brokerage transfer bonuses and how, for large portfolios, account churn can act like an extra slice of return. Then we dig into the big question behind it all: dual momentum versus risk parity. We explain why we are skeptical of strategies that require frequent full portfolio shifts in taxable accounts, how turnover can trigger short term capital gains, and why the missing piece for many people is a simple dual momentum ETF that could handle the trading inside the fund. Next we shift to equity glide paths and sequence of returns risk. We connect classic retirement research from Bengen, Pfau, and Kitces to the risk parity mindset and talk through what the “equity versus non equity” split is really doing for a safe withdrawal rate. We also share a practical implementation idea: sometimes the best glide path is simply letting equities drift higher over time so you trade less. We wrap with managed futures logistics, including the pre 1986 proxy problem and a practical update on SDMF versus DBMF, from swaps and potential tax efficiency to liquidity and costs that do not always show up in the expense ratio. If this helps, subscribe, share the show with a friend, and leave us a review where you listen. Support the show

  7. Oct 17

    Episode 545: The Ins And Outs of Monte Carlos And Back Tests, The Golden Ratio For Radiologists, Broker Boilerplate, And Portfolio Reviews As Of October 16, 2026

    In this episode we answer emails from Dave, Bob, and Waldo.  We discuss how Monte Carlo simulations differ depending on their basis and how they differ from historical back-tests, the problem of trusting retirement calculators without understanding the assumptions inside them and choosing the correct assumptions, why the Golden Ratio portfolio is built for bad decades, and why a scary brokerage warning screen is often just strategic butt covering and marketing. 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: Jesse Cramer Best Interest Podcast Episode 134:  Even Financial Advisors Misunderstand Monte Carlo Retirement Analysis (E134) Yours Truly on Best Interest Podcast:  Are You Hoarding, Hustling, or Harvesting in Retirement? - E144 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 Minimize Your Miss Article About The Golden Ratio Portfolio:  Minimize Your Miss – Portfolio Charts Breathless Unedited AI-Bot Summary: One retirement tool says you’re fine. Another says you’re headed for disaster. If you’ve ever run a backtest, then hit “Monte Carlo” and watched your plan implode, we get why that feels like whiplash and we also know it’s usually explainable. We walk through a listener’s withdrawal-rate question and break down the real reason these results diverge: the construction of the simulation. We explain parameterized Monte Carlo (assumed returns and standard deviation on a normal distribution) versus historical Monte Carlo (scrambled real return data), why fat tails and skewness matter, and how limited datasets for assets like international stocks or REITs can quietly distort the numbers. We also share a simple rule for better decision-making: stop hunting for a “perfect” portfolio in a calculator and start comparing Portfolio A to Portfolio B across multiple tools until the relative story stays consistent. From there, we connect the math to portfolio design. We talk about why worst-case decades drive safe withdrawal rate research, why a decumulation portfolio has different goals than a stock-heavy accumulation portfolio, and how the Golden Ratio approach fits into a four quadrant model across inflation and growth regimes. Then we tackle a very practical worry: Fidelity’s scary designated investments agreement screen when buying a gold ETF like GLDM and why that warning is often more about liability and business model than unique risk. If you find this helpful, subscribe so you don’t miss the weekly portfolio reviews, share it with a friend who’s modeling retirement, and leave us a rating and review so more DIY investors can find the show. Support the show

  8. Oct 15

    Episode 544: Buen Camino, Donor-Advised Funds, Auto-Callable Shiny Objects, And Bonds vs. Bond Funds

    In this episode we answer emails from Geraldo, Robin, Roy, and Daniel.  We catch up on where we've been and our Camino and the Walk For McKenna, and then shift into discussions of donor-advised funds for charitable giving, a new-fangled auto-callable “income” ETF (a/k/a another "shiny object" -- also check out Episode 504), and review a retirement portfolio and a proposal to shift from a bond fund to individual long term treasury bonds. Links: Daffy CEO Interview:  A Donor-Advised Fund For You (Daffy): Democratizing Philanthropy for Everyone | Adam Nash | 200 CAGE/CAIE Descriptions:  Autocallable ETFs | Calamos Investments Testfolio Analysis of CAGE and CAIE vs. VOO:  Asset Analyzer for ETFs, Stocks, and Funds | testfolio Rational Reminder on Leveraged ETFs:  The Truth About Leveraged ETFs | Rational Reminder 430 ETF Slop Video:  The Rise of ETF Slop Ben Carlson Article on Bond Funds vs. Bondsb:  Owning Individual Bonds vs. Owning a Bond Fund - A Wealth of Common Sense Breathless Unedited AI-Bot Summary: A “guaranteed 14% return” headline is the kind of thing that can hijack a smart investor’s brain in seconds, especially when retirement is getting real. We dig into why these slick new income products spread so fast, how auto-callable and options overlay ETFs are structured, and why a big distribution is not the same thing as a better outcome. Our north star stays simple: build for total return, diversification, and tax flexibility instead of buying something just because it feels like a paycheck. We also answer a practical charitable giving question that comes up constantly for DIY investors: should you use a donor-advised fund to support a spouse’s 501(c)(3) charity, and how should you time contributions? We talk through the “trust but verify” checklist with DAF providers, when donating appreciated shares might be even better, and how donation bunching can help if your income varies year to year. If you’re trying to align a risk parity style allocation with consistent giving, this is the clean planning layer that often gets missed. From there, we tackle retirement portfolio mechanics: whether it ever makes sense to swap a long-term Treasury bond ETF (like VGLT) for an individual 30-year Treasury to lock in a coupon. The key takeaway is that long Treasuries in an all-weather or risk parity portfolio are usually held as recession insurance and rebalancing power, not as an income product. Liquidity and the ability to rebalance matter, and simplicity matters even more when you consider what your future self or your heirs will have to manage. If this helped you think more clearly about charitable giving, retirement income strategy, and avoiding shiny object ETFs, subscribe, share the show with a friend, and leave a review. What investing product have you been pitched lately that sounded amazing on the surface? Support the show

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Ratings & Reviews

4.9
out of 5
7 Ratings

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
    2023 - 2026
  • Episodes
    553
  • Rating
    Clean
  • Copyright
    © 2026 Risk Parity Radio
  • Show Website
    Risk Parity Radio

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