Risk Parity Radio

Frank Vasquez
  • 4.5 (305)
  • 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 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

  2. 6d ago

    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

  3. 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

  4. 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

  5. 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

  6. 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

  7. Jul 1

    Episode 523: Funding A Family Gap Year Without Derailing FI, A Cowbell History, And Assorted AUM Advisor Follies And Conflicts

    In this episode we answer emails from Sarah, Tyler and Luc.  We Sarah's detailed plan to take a one to two year family gap year, travel, and unpack tax-smart ways to fund short-term spending, why we keep long-term money invested simply, more cowbell, and why complicated advisor math can be more noise than help how it can mask conflicts of interest.  We also touch on the Cederberg paper (yes, with a C and not an S despite my mis-statement) and why it is of little or no practical use for investors even though it may be of academic interest. Links: Father McKenna Center Donation Page (please mention Risk Parity Radio in the comment section with your donation):  Donate - Father McKenna Center Jillian Johnsrud's "Retire Often" Book:  Book | Retire Often Referenced PWL Link:  Canadian Portfolio Manager: Introducing the “Plaid” ETF Portfolios | PWL Capital: Bender Bender & Bortolotti Breathless Unedited AI-Bot Summary: A one to two year career break with three kids sounds like the kind of plan personal finance forums love to dunk on. We take it seriously, run it through a real-world investing lens, and show how a “mini-retirement” can be both joyful and financially survivable when the time horizon and the portfolio match. We walk through Sarah’s numbers, the stress points, and the decision that matters most: separating short-term spending from long-term compounding. For a gap year (or two), we prefer building a large, boring cash pile fast and funding it primarily from the taxable brokerage account, so a sudden market drop doesn’t force you to sell stocks at the worst possible moment. We also talk through keeping a HELOC as a backup plan rather than the main plan, and why retirement accounts often belong in simple equity index funds when you truly don’t need the money for a decade or more. Then we get tactical on taxes. Lower-income years can open the door to tax loss harvesting and tax gain harvesting, including the often-missed 0% long-term capital gains bracket if your total income stays low enough. We also explain why we treat taxes as an expense that changes based on what you sell and when, instead of playing confusing games that “discount” the value of entire accounts. To round it out, we respond to listener skepticism about after-tax portfolio valuation frameworks, advisor incentives, and the Cedarberg paper’s practical limits. If you like smart investing, plain language, and a dash of “more cowbell” diversification talk, hit subscribe, share the episode with a friend, and leave us a review so more DIY investors can find the show. Support the show

  8. Jun 28

    Episode 522: Intermediate Accumulation Decisions, The Follies Of Errant Fund Substitutions And Holding Too Much Cash, And Portfolio Reviews As Of June 26, 2026

    In this episode we answer emails from Tim, Avid Listener, and Aaron.  We discuss bond allocation in an intermediate accumulation Golden Butterfly style portfolios, the follies of fixating on fund or ticker symbol returns instead of the purpose of an asset in a portfolio,  and the follies of holding too much in cash. 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 Analysis of TLT, MBB and SPY:  Asset Analyzer for ETFs, Stocks, and Funds | testfolio Analysis of gold royalty companies:  Asset Analyzer for ETFs, Stocks, and Funds | testfolio Liz Ann Sonders interview of Keith McCullough:  What Happens After Peak Inflation? (With Keith McCullough) | Charles Schwab Breathless Unedited AI-Bot Summary: Chasing a higher yield can feel like progress, but what if it is quietly breaking your portfolio? We take on three listener questions that all circle the same core problem: fund shopping without a framework. From a Golden Butterfly style intermediate-term risk parity portfolio stuck with a limited 401k bond menu, to the temptation to use stable value funds, Roth space, and asset swaps to “fix” taxes, we talk through what matters most when your goal is steady accumulation for a real-world timeline like three to seven years. Next we get blunt about substitutes. Mortgage-backed securities ETFs may look like a better bond deal on paper, and gold royalty companies may look like “gold with higher returns,” but risk parity investing is not built by grabbing the flashiest ticker. We explain the four quadrant model and why each sleeve has a job: stocks for long-run growth, Treasury bonds as recession insurance that can be rebalanced when equities drop, and alternatives like gold or managed futures for low correlation during inflationary or stagflationary shocks. The right question is not “what returned more,” but “what will behave the way I need when the economic weather turns.” We also address a popular habit that masquerades as investing: moving cash between HYSAs, money markets, and short-term funds to optimize yield. If tiny rate differences feel meaningful, it may be a sign you are holding too much cash and taking on cash drag over the long run. We close with our weekly portfolio reviews across the eight sample portfolios and a reminder that nobody knows what markets will do next, so a sturdy process matters more than predictions. If this helps, subscribe, share the episode with a fellow DIY investor, and leave a review so more people can find Risk Parity Radio. 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
    531
  • Rating
    Explicit
  • Copyright
    © 2026 Risk Parity Radio
  • Show Website
    Risk Parity Radio

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