Risk Parity Radio

Frank Vasquez
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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. 1D AGO

    Episode 493: Our Raison D'etre, Common Investor Fallacies, UK Investing Notes, Treasury Bond Correlations, And Portfolio Reviews As Of March 13, 2026

    In this episode we answer emails from Lee, Leo, Tony, and Samuel.  We revel in Lee's generosity and discuss why we hold gold and treasuries, why recent performance should not drive allocation changes and common amateur investor fallacies, how to think about diversification when you invest outside the US, and how to think about correlations in a four quadrant model. And THEN we our go through our weekly and monthly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio. Links: Fairfax CASA Donation Page:  Donate - Fairfax CASA David Stein Interview:  How to Think Clearly About Money Without Obsessing Over It with David Stein | White Coat Investor Portfolio Charts International Portfolios Analysis:  What Global Withdrawal Rates Teach Us About Ideal Retirement Portfolios – Portfolio Charts Many Happy Returns Podcast with Tyler #!:  Building a Bulletproof Retirement Portfolio, with Tyler from Portfolio Charts - Many Happy Returns Many Happy Returns Podcast with Tyler #2:  How to Pick Your Perfect Portfolio, with Tyler from Portfolio Charts - Many Happy Returns Claudia Moise Paper with US Treasuries Correlation Data:  Flights to Safety, Volatility Risk, and Monetary Policy by Claudia E. Moise :: SSRN Breathless Unedited AI-Bot Summaries: Gold is up, bonds are weird, and everyone suddenly wants to “swap something out” based on what happened last quarter. We slow that impulse down and get back to first principles: what job does each asset do in a long-term risk parity style portfolio, and what happens when you start making allocation decisions from a gut feeling about what looks overbought or hated right now? We dig into a listener question about replacing gold inside the Golden Ratio Portfolio and explain why utilities are not a true substitute. Utilities can be useful, but they behave like stocks more than people admit, and they often carry interest-rate sensitivity that overlaps with bonds. If you want something that behaves more like gold’s diversifying role, we talk through what characteristics matter most, including low correlation to both stocks and bonds, and why managed futures is the more logical comparison. Along the way, we call out the common traps that wreck DIY portfolios: cherry-picked dates, short-term volatility panic, and the “crystal ball” mindset that quietly turns investing into trading. For our non-US listeners, we tackle how being based in the UK or investing in pound sterling can change implementation details without changing the big picture goal. We discuss currency risk, home-country bias, why US equities still matter for global exposure, and the tough question of whether your bond ballast should be in local currency, US dollars, or a mix. Then we answer a deep question about correlations: why stock-bond correlation is not random, how it shifts across macro regimes, and why treasuries tend to deliver negative correlation when it matters most, during recessions. We close with weekly portfolio performance across our sample portfolios and why the most disciplined move is often to do nothing. Support the show

    45 min

  2. 4D AGO

    Episode 492: An Expat Risk Parity Style Portfolio, Intermediate Accumulation For A Mortgage, And Assorted Asset Allocation Questions

    In this episode we answer emails from TJ, John and Optimus Bill.  We discuss TJ's modified Golden Ratio portfolio and backtests, maximizing withdrawals with flexibility, ZROZ vs. TLT simulated leverage, gambling problems, intermediate accumulation to pay down a mortgage, and assorted allocations questions about mid-caps and other funds. We also talk about our Fairfax CASA fundraiser in our Queen Mary segment and a recent Catching Up to FI presentation at the end. Links: Links: Fairfax CASA Donation Page:  Donate - Fairfax CASA TJ's Portfolio:  testfol.io/?s=gJEgezdqVdy Portfolio Charts Risk Parity style Accumulation Article:  Minimize Your Miss – Portfolio Charts Risk Parity Chronicles ZROZ vs. TLT Analysis:  Bond Allocation Sizing - Google Sheets Risk Parity Chronicles KBWP Article:  The Search for a Low-Beta Equity Unicorn - by Justin Catching Up to FI Presentation:  Catching Up To FI Illinois/Wisconsin Meeting Presentation - YouTube Catching Up to FI Presentation Slides:  The_Risk_Parity_Mission for Catching Up To FI.pdf - Google Drive Catching Up to FI Presentation Summary Video:  Catching Up To FI Risk Parity Portfolios Meeting and Presentation.mp4 - Google Drive Breathless Unedited AI-Bot Summary: A listener writes from overseas with a situation that strips retirement down to the essentials: no pension, no Social Security “backup plan,” and a real need to get the portfolio right. We walk through his modified Golden Ratio style allocation using growth and value funds, small-cap value tilts, long-duration Treasury strips, gold, and alternatives like DBMF, then talk about what matters more than a pretty spreadsheet: whether you can live with the drawdowns and keep the plan steady for decades. From there we get practical about retirement withdrawals and the assumptions hiding underneath them. We explain why a 5.5% withdrawal rate can be realistic when you pair it with flexible rules like a floor and ceiling approach, and why “inflation” is not one number that applies to everyone. If you’re living abroad, spending in another currency, or even willing to relocate, your personal inflation experience can diverge from CPI, which changes how you should think about risk, resilience, and what flexibility is worth. We also tackle the investor temptations that never seem to go away: debating ZROZ versus TLT, obsessing over duration ratios, and tinkering with allocations when the market gets loud. We share a simple constraint that helps many DIY investors stay sane: build a small sandbox for experiments so your core portfolio stays intact. We finish with an intermediate accumulation question about investing toward a future mortgage payoff, plus a clear framework for why splitting short and long Treasurys can be useful, and why international diversification often shows up as currency exposure in modern markets. Subscribe, share this with a friend who’s rebuilding their portfolio, and leave a review with the withdrawal rate question you’re trying to answer. Support the show

    44 min

  3. MAR 8

    Episode 491: Celebrating Listener Generosity, Donor Advised Funds, Learning Some Accumulation Ropes, Risk Parity ETFs, And Portfolio Reviews As Of March 6, 2026

    In this episode we answer emails from Optimus Bill, Mark and Ryan.  We discuss donor advised fund sponsor Daffy and a strips fund portfolio substitution, the challenges of figuring out accumulation without getting caught up in chasing shiny objects and magic investing buttons, and discuss commercial risk parity funds and why they probably won't work for your goals.  Errata:  I said "Mark" when I meant "Michael"  Mauboussin. And THEN we our go through our weekly and monthly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio. Links: Fairfax CASA Donation Page:  Donate - Fairfax CASA Father McKenna Center Donation Page:  Donate - Father McKenna Center Catching Up To FI Podcast with Daffy:  A Donor-Advised Fund For You (Daffy): Democratizing Philanthropy for Everyone | Adam Nash | 200 White Coat Investor Article:  150 Investment Portfolio Examples | White Coat Investor Infinite Loops Podcast with Jim O'Shaughnessy and Cliff Asness:  Surviving the Meme Stock Bubble | Cliff Asness ETF Slop Video:  The Rise of ETF Slop Sample Portfolio Idea for Mark:  https://testfol.io/?s=flOaQQOXaH4 Breathless Unedited AI-Bot Summary: A community gift turns into a movement: we celebrate more than $13,000 raised for Fairfax CASA and announce a surprise $20,000 match, then open the books on how donor-advised funds make generosity simpler, cheaper, and more strategic. From flat-fee platforms to custom portfolios and social giving, we share how to build a micro-foundation that aligns your values with long-term impact. Then we zoom out to the decisions that actually move the needle. Forget the hunt for a magic fund—macro allocation drives results. For savers 20-plus years from retirement, we unpack a clean, high-conviction approach: 100% equities with a two-fund core that pairs large-cap growth with small-cap value for balanced offense. We explain why investors underperform their own holdings, how to avoid shiny-object drift, and the simple rules that keep compounding on track. Curious about adding more “oomph” without reckless leverage? We walk through using Treasury Strips like ZROZ to amplify bond duration and free space for equities or gold. We also answer a big question: do risk parity ETFs solve the problem? They exist, but most are built for elegant theory, not your actual goals—be it maximum accumulation or higher safe withdrawal rates. For families who want one-ticket simplicity, we highlight how long-standing workhorses like Vanguard Wellington or Wellesley can deliver steady spending without complex overlays or buckets. We close with a brisk market recap, why alternatives like managed futures can shine during turbulence, and the habit that consistently wins: do nothing when your plan is sound.  Support the show

    1h 1m

  4. MAR 4

    Episode 490: Queen Mary Segment With Jillian Johnsrud, Big Law Life, Alternative Assets And Four Quadrant Portfolio Construction Principles, And A Partial Retirement Withdrawal Scenario

    In this episode we answer emails from Connor, Zachary and Brian.  We discuss fund selection, doing the Big Law dance, portfolio construction basics and analyzing alternatives, and a partial retirement drawdown scenario involving early withdrawals, avoiding temptations to market time based on recent performances and funding a vacation property with a dedicated portfolio. But first we thank donors supporting Fairfax CASA and share Jillian Johnsrud’s moving story about adoption, foster care, and how a steadfast CASA changed her kids’ lives. Links: Fairfax CASA Donation Page:  Donate - Fairfax CASA Father McKenna Center Donation Page:  Donate - Father McKenna Center "Retire Often" by Jillian Johnsrud:  Book | Retire Often Bridgewater Paper Describing the Four Quadrant Model:  Microsoft Word - 2009.12 AW Info Pack.doc Blog Article Describing Risk Parity Principles and the Four Quadrant Model:  15 Uncorrelated Assets | SSiS Video Describing Correlations of Alternatives (start timestamp 1:10): iMGP DBi Managed Futures Strategy ETF Update with Andrew Beer | January 2026 Breathless AI-Bot Summary:   A single constant can change a child’s life. That’s the heart of Jillian Johnsrud’s adoption and CASA story, where a determined CASA volunteer carried the full thread of her kids’ journey through seven case managers and years of upheaval. We open with gratitude for Fairfax CASA donors and a candid look at what Court Appointed Special Advocates really do: show up, remember, advocate, and persist in an unreasonably hard job that needs every ounce of support we can give. From there we pivot to the questions you care about. We unpack why SCHG works fine as a large cap growth sleeve and then dive into a pragmatic guide to risk parity. Using a four-quadrant map of growth and inflation, we explain how to pair equities with long-term Treasuries, gold, and managed futures to raise safe withdrawal rates without pretending to predict the future. You’ll hear how uncorrelated return streams and disciplined rebalancing—Shannon’s Demon in action—turn volatility into a feature, not a bug. We also draw a bright line between true diversifiers and crowded “alts” that secretly track stocks. We get tactical: how to treat accounts as one portfolio while keeping extra liquidity in taxable during a low-stress, lower-income phase; when to tax-gain harvest; and why tilting heavily into whatever just outperformed (gold now, bonds avoided) is classic recency bias. For those juggling work and life pivots, Frank shares hard-won Big Law advice: build stamina, communicate clearly, be relentlessly reliable, and stay curious as practice areas shift. Finally, we brainstorm a small, dedicated portfolio to fund a shared family vacation home, and why this sandbox is perfect for testing a slightly higher equity mix you can always top up. If this resonates, help us amplify the work of Fairfax CASA, then subscribe, share the episode with a friend who’s rethinking their allocation, and leave a quick review so more DIY investors can find the show. Your support keeps the conversation smart, practical, and focused on what actually works. Support the show

    1h 1m

  5. MAR 1

    Episode 489: Cowbell Direct Indexing, More Fun With Leverage, An Early Retirement Extra Spending Model And Portfolio Reviews As Of February 27, 2026

    In this episode we answer emails from Jeffrey, Bryan, and Erik.  We discuss the trade-offs of direct indexing in small cap value, why modest leverage on a diversified mix can outperform stock-heavy portfolios with fewer drawdowns, and modelling an early extra spending plan for retirement.  And talk about forecasting with Base Rates. And THEN we our go through our weekly and monthly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio. Links: Fairfax CASA Donation Page:  Donate - Fairfax CASA Father McKenna Center Donation Page:  Donate - Father McKenna Center Bigger Pockets Money Small Cap Value Discussion:  Small Cap Value Funds for FI: Why AVUV? Bryan's Risk Parity Explainer Videos:  Kardinal Financial - YouTube Bryan's Leveraged Golden Ratio Portfolios:  testfol.io/?s=jXswQKw6avr RSST and GDE Comparisons:  testfol.io/?s=dc0nz7avynF Ben Felix Video On Leverage:  Investing With Leverage (Borrowing to Invest, Leveraged ETFs) (youtube.com) Erin on Money Truth About Spending Smirk and LTC:  The Retirement Spending Smile Is Dead (Here’s What the Data Actually Shows) Breathless Unedited AI-Bot Summary: Markets don’t hand out easy wins, so we lean into clarity: what actually works for DIY investors, what’s noise, and how to make choices you’ll stick with when regimes shift. We start with a pointed look at direct indexing in small cap value. The promise of tax loss harvesting sounds great, but the reality is messy: hundreds to thousands of tiny positions, frequent graduations at index cutoffs, and “optimized” portfolios designed to hug an index rather than truly replicate it. We break down why small cap value behaves more like equal weight, why that raises the bar for tracking and taxes, and where direct indexing makes more sense—large caps, cap-weighted sectors, and places where a handful of names dominate the exposure. From there, we unpack a smarter use of risk: applying modest leverage to a diversified portfolio instead of dropping diversifiers to chase higher returns. Think of it as scaling a better mix rather than concentrating into stocks. We compare tools like NTSX, GDE, GOVZ, and managed futures, and discuss why the 1.25x to 1.7x range often hits the sweet spot for return per unit of pain. We also stress-test composite ETFs against DIY equivalents for transparency and control. The goal is a higher Sharpe ratio and fewer bone-crushing drawdowns, not bravado. Planning meets practice when we tackle a common early-retirement question: how to model a 10,000-dollar travel burst for the first decade. The simplest answer is often best—set aside 100,000 dollars and spend it down—or use a Monte Carlo tool that handles time-varying cash flows. Keep three to five years in cash, refill from gains, and let base rates guide expectations. Research shows a spending bump near retirement and a gentle decline afterward for most households, with far fewer late-life spikes than fear-based sales pitches suggest. We close with portfolio reviews across eight sample allocations, highlighting how gold, commodities, and managed futures have led while mega-cap tech cooled and small cap value caught a bid.  Support the show

    58 min

  6. FEB 24

    Episode 488: All Hail Queen Mary And Fairfax CASA, Gold vs Managed Futures, And A Short-Term Drawdown Portfolio

    In this episode we respond to emails from Nick, Ginna, Ashley, Chris and Sara.  In our Queen Mary segment where we are raising money for Fairfax CASA, we express our gratitude for the outpouring of listener support and tell Noah and Taylor’s story of reunification.  We then dive into two big portfolio questions: do managed futures replace gold, and how to fund an eight-year break without derailing long-term plans. We build a conservative drawdown portfolio, weigh taxes in taxable accounts, and explain why good portfolio construction beats market timing. Links: Fairfax CASA Donation Page:  Donate - Fairfax CASA Wilka's in NYC:  Wilka's Sports Bar | Women's Sports Bar | New York, NY, USA Chris's Portfolio Constructions:  testfol.io/?s=lwnOaJGvzDj Sara's Portfolio Analyses:  testfol.io/?s=htNZVoZOZn4 Breathless Unedited AI-Bot Summary: Start with purpose: a child’s safety, a mother’s grit, and a community that shows up. We open with a moving Fairfax CASA story—Noah and Taylor—that reminds us why steady advocacy and second chances matter. Listener donations pour in, and Mary shares how CASA pairs rigorous oversight with real compassion. From there, we pivot to the other kind of safety net: portfolios designed to fund real lives. A longtime listener asks if managed futures make gold redundant. We break down what trend-following actually captures, why gold’s long history and different crisis behavior still earn it a seat, and how the two hedges fit together when you care about drawdowns, not bragging rights. Then we tackle Sarah’s bold plan: an eight-year pause from work to care for family, spending about $90k per year from taxable savings before returning to the workforce. Rather than a classic risk-parity blend, we map a more conservative drawdown portfolio: roughly 30% equities with a large-cap value tilt and a sleeve of property-and-casualty insurers, 25% cash and short-term Treasuries for three years of runway, 25% intermediate Treasuries for recession insurance, and 20% in alternatives split between gold and managed futures. The goal isn’t to win a backtest—it’s to keep maximum drawdowns shallow and flexibility high. We also unpack taxes in the 0% capital gains band, why ordinary-income assets aren’t the villain during low-income years, and how realizing gains strategically can preserve ACA subsidies. For long-horizon IRAs, we keep it simple: a 100% equity mix across large-cap growth or blend and small-cap value, with an optional tilt to international small-cap value for broader diversification. No crystal balls, no heroic timing—just construction that respects time frames and human needs. If this episode helps you think differently about money, advocacy, or how to buy time for what matters, share it with a friend, subscribe, and leave a quick review so more DIY investors can find it. Support the show

    54 min

  7. FEB 11

    Episode 487: It's Mary Time, Intermediate Accumulation, 529s To Roths, And Leeroy Jenkins Gambling Problems

    In this episode we answer emails from Tim, Anderson, and Pete. We discuss using a Golden Butterfly portfolio for intermediate accumulation, converting 529s to Roths and excessively levered portfolios for small children.  (I can't make this stuff up.) But first we share Mary’s mission with Fairfax CASA and explain how steady advocacy changes a child’s path, and roll out our Fairfax CASA fundraising campaign in connection with National Child Abuse Prevention Month. Links: Fairfax CASA Donation Page:  Donate - Fairfax CASA The Starfish Thrower Philosophy from Episode 441 (Cool New Video!):  The Starfish Thrower Philosophy With Mary.mp4 - Google Drive Mary's CASA Case Adoption Story:  The Johnson’s Foster Care & Adoption Story FIRE Takes Podcast:  FIRE Takes Podcast Portfolio Charts Drawdown Calculator:  Drawdowns – Portfolio Charts Testfolio Backtester:  testfol.io Pete's Leveraged Leeroy Jenkins Portfolios:  testfol.io/?s=l7aMOsy4720 Breathless Unedited AI-Bot Summary: Ever wonder how to save for a goal that’s a few years away without riding stock-market whiplash or leaving too much on the table in cash? We walk through a practical, risk-aware path for mid-term savings and pair it with something close to our hearts: Mary’s work with Fairfax CASA, where trained volunteers are a constant for kids navigating abuse or neglect cases. You’ll hear what CASA volunteers actually do—attend hearings, coordinate services, write court reports, and keep showing up—plus the data that proves consistent advocacy moves outcomes. From there, we dig into building an intermediate-term portfolio using a risk parity approach like the Golden Butterfly. We explain how to model a real alternative to HYSAs: use long-history T-bill data instead of SHY, add regular monthly contributions to reflect real life, and examine drawdown length and worst-case windows over three to five-year spans. You’ll learn why shorter, shallower drawdowns can matter more than headline returns when timing is uncertain, and how Testfolio helps you compare paths with clarity. We also unpack a powerful planning angle: rolling leftover 529 funds to a Roth IRA under current rules, including holding periods, beneficiary considerations, earned income needs, and why Roth contribution capacity is too valuable to waste. We don’t shy away from the spicy stuff either—managed futures, leverage, and the gap between theory and practice. Rather than letting fear set the rules, we talk about small, controlled experiments that build skill and confidence. That shift—from anxiety to informed action—can change both your portfolio and your peace of mind. If this resonates, support Fairfax CASA via the link in the show notes and mention Risk Parity Radio or Mary Vasquez in the comment box. Then hit follow, share the episode with a friend who’s stuck between stocks and savings, and leave a quick review to help more DIY investors find us. Support the show

    34 min

  8. FEB 8

    Episode 486: Matching Your Portfolio With Your Spending Goals, The RPR Site, ETPs, Coast FI Sabbaticals, And Portfolio Reviews As Of February 6, 2026

    In this episode we answer email Serge, Nielsen, Paul and Loren.  We dig into the core question that drives every portfolio -- when will this money be spent and by whom -- which dictates how it should be invested, and talk about the website, ETPs and their variations, and thinking about sabbaticals and Coast FI.  We also mention our Risk Parity Radio gathering at EconoMe on Friday at the Celare Hotel. 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: The New(ish) Web Page:  Risk Parity Radio Retire Often Book:  Retire Often | Create a meaningful and enjoyable life Breathless Unedited AI-Bot Summary: What is this money actually for—and when will it be used? We build from that deceptively simple question to map two clear paths: an equity-heavy accumulation approach for wealth you won’t touch for decades, and a diversified, endowment-inspired design for money you plan to spend or share in the near term. Along the way, we unpack revealed preferences, why giving while living can outperform hoarding for family outcomes, and how to convert volatility into usable cash flow with risk parity principles. We share practical playbooks for different life chapters. If you’re sitting on a seven-figure portfolio and dreaming of a sabbatical, hold 1–2 years of cash and let the rest compound in accumulation mode. If you’re leaning toward Coast FI, keep retirement assets in equities while your current work covers life today. If you aim to fund 4–5 percent distributions to family or philanthropy, build a portfolio with multiple return drivers—equities for growth, Treasuries for crisis defense, gold and commodities for inflation, and managed futures for trend resilience—plus disciplined rebalancing to support withdrawals through market cycles. We also clear up product confusion: GLD lives under the broader ETP umbrella while functioning like an ETF to most users—structure matters for risks and taxes, so read the prospectus and know what you own. To ground it all, we review the latest market moves—small-cap value strength, gold’s lead, managed futures momentum—and walk through sample portfolios, including rebalancing thresholds and what’s working now. Ready to align your portfolio with your real timeline and purpose? Hit play, subscribe for more smart, research-backed investing talk, and leave a review to help others find the show. Support the show

    40 min
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Ratings & Reviews

5
out of 5
3 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
    495
  • Rating
    Explicit
  • Copyright
    © 2026 Risk Parity Radio
  • Show Website
    Risk Parity Radio

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