Risk Parity Radio

Frank Vasquez
  • 4.5 (278)
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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 480: Tail Risk Strategies, Better Approaches Using Diversification And Who To Learn That From, Fund Taxonomy, And Portfolio Reviews As Of January 16, 2026

    In this episode we answer emails from Gregory and Isaiah.  We discuss whether tail-hedged ETFs belong in a retirement portfolio, then map out a cleaner path with Treasuries as recession insurance, a value tilt for equity resilience. We also discuss the problems with relying on voices from popular personal finance unless they are well supported by professional and academic teachings, and the importance of the four quadrant model in understanding correlations and diversification.  We also a practical taxonomy for classifying holdings. 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 Links Page at Risk Parity Radio:  Links | Risk Parity Radio Analysis of Tail Risk ETFs:  testfol.io/analysis?s=jCSSoT7bFRe Bob Elliot Macro Masterclass:  Bob Elliott, Unlimited Funds – A Macro Masterclass Bob Elliot on Excess Returns:  Understanding Economic Cycles | Bob Elliott Bob Elliot on The Compound:  The Blue Chips of Junk | TCAF 175 Portfolio Tracker:  GitHub - danbuchal/portfolio-tracker: Portfolio Tracker: Track your investments and asset allocation Breathless Unedited AI-Bot Summary: Looking for protection without sacrificing long-term returns? We dig into a donor’s question about using tail-hedged ETFs like SPD and SPYC for early retirement and explain why constant hedging tends to bleed performance. The core idea is simple: prioritize assets with positive expected returns that also diversify when it matters. That’s where long-term Treasuries serve as recession insurance and why picking the right time horizon for correlation analysis changes everything. From there, we zoom out to the four-quadrant framework—growth and inflation as the axes that drive correlations. Stocks thrive in positive growth with moderate inflation, Treasuries support you in weak growth and disinflation, and assets like gold and managed futures help when inflation shifts. If passive flows are reshaping markets, the practical antidote isn’t a new product; it’s a value tilt on the equity side. History shows value, especially small-cap value, is a reliable counterweight when growth-heavy indexes crack. We also share a clear, DIY method to audit and classify your holdings ahead of retirement. Start with growth vs value as your primary lens, use size as a secondary tilt, and treat international exposure as tertiary since currency swings drive much of the variance. Tools like Morningstar and Portfolio Tracker make it easy to roll up accounts, view factor exposure, and keep your targets on track. Finally, we walk through our sample portfolios and a crisp market snapshot—gold’s strength, steady REITs and commodities, and how leveraged mixes are faring—to show how these principles play out in real allocations. If this helps you build a stronger plan, follow the show, share it with a friend who’s rethinking their hedge, and leave a quick review to help more DIY investors find us. Support the show

    54 min

  2. 3D AGO

    Episode 479: The 60% Transition Solution, Financial Advisor Horror Stories, And Notes On Performance Data

    In this episode we answer emails from Bee, Brian, and Derek.  We discuss shifting from pure equities toward a Golden Ratio allocation at 60% of the way to financial independence, using 401(k) BrokerageLink to add small cap value, and replacing monthly performance screenshots with better backtesting tools. Along the way, we talk donor-advised funds, advisor incentives, and why most financial advisory practices run on fear because its the most profitable business model. Links: Portfolio Charts Article:  Minimize Your Miss – Portfolio Charts Sonia Parker on Crystal Balls:  Crystal ball gazing, how to use a Crystal Ball ~ How to Scry with a Crystal Ball ~ by Sonia Parker Jim Sandidge Chaos Paper:  RMJ081-ChaosAndRetirementSecurity.pdf Breathless Unedited AI-Bot Summary: Tired of being told to fear the market, fear retirement, and fear doing it yourself? We dig into three real listener scenarios to show how clarity, incentives, and modern tools beat sales scripts every time. First, we sit with a 41-year-old investor who’s 60% to a FIRE number and wrestling with whether to add risk-parity elements now or stick with 100% equities a bit longer. We break down how a gradual shift toward a Golden Ratio–style mix can reduce volatility without forcing a hard “all-at-once” pivot, and why matching your allocation to your timeline, taxes, and temperament matters more than waxing theoretical about the perfect moment. Next, we explore the power of Fidelity’s BrokerageLink and the case for a structural small cap value tilt. If costs are minimal, opening the 401(k) architecture unlocks better ETFs and truer diversification. A large growth and small value balance can set you up for meaningful rebalancing, while keeping income-heavy assets in tax-advantaged accounts avoids unnecessary drag. We also spotlight donor-advised funds as a practical way to give appreciated shares, lower taxes, and simplify charitable plans—especially helpful during high-income years or advisor breakups. Finally, we question the industry’s incentive structure and the fear-based marketing behind complex portfolios, annuity pitches, and “risk profiles” designed to sell products. Instead of monthly performance screenshots that can mislead when withdrawal rates vary, we point you to TestFolio and Portfolio Visualizer to run clean, apples-to-apples comparisons. Five years of live results won’t settle lifetime decisions; full cycles and solid process will. If you want a portfolio that’s low-cost, transparent, and built to last—without crystal balls or steak-dinner seminars—this conversation lays out the path. If this helped you think clearer about your allocation, subscribe, leave a review, and share it with a friend who’s ready to keep more of their own returns. Support the show

    38 min

  3. JAN 11

    Episode 478: Index Fund Choices, Distribution Methods, The Financial Advisor Landscape, Parsing Our Approach, And Portfolio Reviews As Of January 9, 2026

    In this episode we answer emails from Jeff, Chad and Matt.  We discuss choices in 100% equity accumulation portfolios, distribution methodology for the sample portfolios, more on radio-personalities-cum-financial-advisors who try to punch down, the landscape of financial advisors and distinguishing the good, the bad, and the ugly, and our overall approach here, which is simply to match financial behaviors with financial goals.  Because Personal Finance is FINANCE. And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio. Links: Best Equity Index ETFs:  Best ETFs 2025 | Merriman Financial Education Foundation Sarah Catherine Gutierrez Presentations:  Interacting with the Financial Services Industry with SC Gutierrez Afford Anything Podcast re RPR:  They Ran Out of Money. I Didn’t. Here’s Why. Breathless Unedited AI-Bot Summary: What if your portfolio actually reflected your real goal—spend confidently while you’re alive—or, if you prefer, maximize what you leave behind? We dig into that choice and show how to align behavior with outcomes, from accumulation tilts to retirement withdrawals, without getting trapped by complexity or fear. We start by tackling a common accumulator snag: limited 401(k) menus. When a plan doesn’t offer the exact funds for a 50% large-cap growth and 50% small-cap value tilt, we show how to keep the core in a low-cost total market index and use outside accounts for precise small-cap value exposure. The final 10%? It’s often a coin flip—simplicity and consistency usually win. We also compare small-cap value options and why funds with profitability screens (like AVUV) can sharpen the tilt. For retirees and near-retirees, we lay out a clean distribution method. Use cash generated by the portfolio first; if you must sell, trim the position most above target since the last rebalance. Prefer even fewer trades? Hold a modest cash sleeve and draw from it, replenishing during scheduled rebalances. The aim is to reduce friction while keeping allocations on track. Throughout, we push for strategies that raise safe withdrawal rates, not stories that only soothe nerves. We also hold a bright light on advisor incentives. AUM fees aren’t “evil,” but they’re misaligned with consumer interests and compound against your long-term outcomes. Fee-only, flat-fee, or hourly planning models provide clarity and control without the drag. Our stance is simple: demand the math, insist on base rates, and ask every product or tweak one question—does this increase sustainable spending power? The market check brings it all together: small-cap value is out front, gold remains a steady diversifier, and diversified sleeves like managed futures, REITs, and Treasuries contribute ballast. We walk through the eight sample portfolios, highlight performance since 2020 and 2024 inceptions, and note why mechanical year-end rebalancing can backfire when flows get weird. If you’re a do-it-yourself investor who values low costs, clarity, and evidence over noise, you’ll find practical steps you can use today. If this resonates, follow the show, leave a review, and share it with someone who needs more signal and less sales pitch. Support the show

    57 min

  4. JAN 8

    Episode 477: Handling Midwest Mom, Some Book Recommendations, And Australians Trying To Beat The Market

    In this episode we answer emails from Midwest Nice, Ron and Stefan.  We discuss helping a cautious parent with a high-fee advisor, what services are actually worth paying for in their case, how to invest home-sale proceeds for a 5–10 year horizon, where to learn beyond basic indexing without losing the plot, the McKenna Man portfolio, and best approaches to try to beat the market (beyond don't try).  Links: Father McKenna Center Donation Page:  Donate - Father McKenna Center Excess Returns Channel: Excess Returns - YouTube Tacoma Narrows Bridge Collapse Video:  Tacoma Bridge Collapse: The Wobbliest Bridge in the World? (1940) | British Pathé Stefan's Sparkline Capital Article:  Buffett's Intangible Moats Ben Felix Video On Leverage:  Investing With Leverage (Borrowing to Invest, Leveraged ETFs) (youtube.com) Book List: Ashvin Chhabra:  "The Aspirational Investor" J. David Stein:  "Money For The Rest of Us" Michael Mauboussin:  "More Than You Know" and "Think Twice" Antti Ilmanen:  "Expected Returns" and "Investing Amid Low Expected Returns" Andrew Lo:  "In Pursuit of the Perfect Portfolio" Ed Thorpe:  "A Man For All Markets" Larry Swedroe:  "Your Complete Guide to Factor Investing" Breathless Unedited AI-Bot Summary: Ever tried to help a parent who’s financially fine but glued to a “nice” advisor and a vague plan? We dig into the real-world tactics that preserve relationships while improving outcomes—think gentle on-ramps like scam protection, account alerts, and sharing your own planning choices. The goal isn’t to win a debate; it’s to earn access, reduce avoidable taxes, and align risk with comfort, especially when pensions and Social Security already cover spending. From there, we get specific about value. If an advisor stays, the highest-return work for many retirees is tax strategy, asset location, and simplification—not performance theater. We talk practical setups like Wellington or Wellesley for low-cost balance, when a deferred QLAC can be a comfort hedge, and why generating more income than you need can backfire at tax time. For listeners sitting on house-sale proceeds with a 5–10 year window, we unpack why hoarding cash invites erosion and why a golden ratio–style mix can cap drawdowns to a few years while keeping growth and inflation resilience alive. Curious investors also get a roadmap for learning beyond slogans. We highlight factor tilts with quality screens, institutional-grade thinkers like Ilmanen, Lo, and Mauboussin, and the simple truth that outperformance usually comes from concentration or leverage—so position sizing and behavior matter more than hot takes. We challenge the myth that a cap-weight index buys the “whole economy,” and we favor building like engineers: learn from failures, control volatility, and design for the stress you’ll actually feel. If this helped you rethink fees, timelines, or tilts, follow the show, share it with a friend, and leave a quick review so more DIY investors can find these tools. Support the show

    54 min

  5. JAN 4

    Episode 476: Come On Up To The House With Our Annual Portfolio Reviews For The Very Good Year Of 2025

    In this episode we conduct our annual portfolio reviews of our eight sample portfolios you can find at Portfolios | Risk Parity Radio, and compare them with commercial alternatives.  We discuss why factors beat geography, and explain how gold, bonds, and managed futures improved results and withdrawal durability. We also confront the real roadblock to a good retirement: underspending driven by identity and fear, which we heard about in 2025 from Bill Bengen, Michael Kitces and Carl Richards, Morgan Housel and David Bach, among others. Breathless Unedited AI-Bot Summary: The biggest retirement risk most prepared savers face isn’t market volatility—it’s not spending enough. We dig into why identity and fear keep people stuck in “I am a saver” mode, and how to break that habit with a portfolio built for higher, safer withdrawals. Then we open the books on eight sample portfolios and share what actually worked in 2025: factor-driven international exposure, a powerful year for gold, the yield curve’s shift favoring intermediate bonds, and a split decision for managed futures where DBMF led. You’ll hear how the Golden Butterfly and Golden Ratio outperformed classic 60/40 approaches by leaning on uncorrelated return drivers, and why DIY risk parity designs can match or beat commercial funds at lower cost. We walk through the conservative All Seasons mix, the diversified Risk Parity Ultimate, and two leverage case studies: one that shows how leverage without real diversification can disappoint, and another that demonstrates smart “return stacking” with OPTRA—combining modest leverage, gold, value tilts, and managed futures for equity-like returns with a steadier ride. Along the way, we connect portfolio choices to what matters most: turning savings into a life well-lived over the next decade. A candid listener story reminds us that time is finite, and that a better withdrawal rate is not a luxury—it’s a plan for joy, relationships, and experiences now. If you’ve wondered whether your mix underuses factors, overlooks gold, or over-relies on 60/40 assumptions, this is your field guide to a sturdier, more generous retirement strategy. If this resonates, tap follow, share it with a friend who needs a nudge to spend confidently, and leave a quick review with your biggest portfolio question. Your next ten years will thank you. Support the show

    51 min

  6. 12/28/2025

    Episode 475: Managing An Inherited Roth IRA, Roth vs. Traditional Tax Locations, Some Basics With Resources, And Portfolio Reviews As Of December 26, 2025

    In this episode we answer emails from Tyler, Michael and Jon.  We discuss managing an inherited Roth across a 10-year window and related questions, compare VXUS to targeted international tilts, tax and asset location considerations for traditional and Roth IRAs, and talk about some of the basic ideas for achieving 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. Additional Links: Father McKenna Center Donation Page:  Donate - Father McKenna Center Golden Ratio Portfolio Article:  Beautiful Constants and the Golden Ratio Portfolio – Portfolio Charts Afford Anything Podcast #618:  They Ran Out of Money. I Didn’t. Here’s Why. Slide Deck:  Afford Anything Episode 618 RPR Basics Slide Deck.pdf - Google Drive Video Summary:  Afford Anything Episode 618 Video Summary.mp4 - Google Drive Afford Anything Risk Parity Portfolio Blueprint:  Afford Anything frank-vasquez-risk-parity-portfolio-BluePrint.pdf - Google Drive Bigger Pockets Money Podcast:  The Secret to a 5% Safe Withdrawal Rate | Frank Vasquez Slide Deck:  BP Money Interview Slide Deck.pdf - Google Drive Video Summary:  BP Money 5 Pct Withdrawals (F. Vasquez).mp4 - Google Drive Breathless Unedited AI-Bot Summary: A surprise inheritance, a strict 10-year clock, and a plan that has to work through whatever the market throws at it—this conversation tackles the decisions that actually move the needle. We break down a practical approach to managing an inherited Roth IRA, why delaying withdrawals can preserve tax-free growth, and how to separate speculation from your core allocation so one risky bet doesn’t hijack your entire plan. Along the way, we show how risk parity portfolios lower sequence-of-returns risk and why the best “edge” is often calm structure, not prediction. We dig into tax location with real-world transitions in mind. During your working years, most of the portfolio belongs in equities; the puzzle appears when you move toward retirement and spread assets across bonds and diversifiers. That’s where location shines: place ordinary-income-heavy assets in traditional accounts, keep the highest-growth assets in Roth, and avoid turning your taxable account into a tax drag. We also talk about securities-backed lines of credit and why reducing portfolio volatility can materially lower margin stress when you’re funding future purchases like rentals. If international stocks feel like a copy of your U.S. exposure, they probably are. We explain how currency drives much of the U.S. vs ex-U.S. gap and why targeted tilts—international large cap growth and small cap value—can be a more effective pairing than broad VXUS. Then we tackle illiquid plays and limited partnerships: categorize by the underlying asset, respect rebalancing limits, and treat truly illiquid positions as separate businesses with independent cash flows. Support the show

    49 min

  7. 12/21/2025

    Episode 474: Planning Around Taxes In Transition, Bitcoin FOMO, Living In A Trailer, And Portfolio Reviews As Of December 19, 2025

    In this episode we answer emails from Jenna, Kevin, and Jack Rabbit.  We challenge the myth of “never pay taxes” and show how to transition scattered holdings into a Golden Butterfly framework while keeping taxes manageable. We also examine Bitcoin’s role, review sample portfolio performance, and share new listener-created bonus material on the site. 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 Jack Rabbit's Creation re Episode 208 (Advice for Beginning Investors):  A Parable for Beginning Investors in the Land of Oz "Free Steak Dinner" Rant Episode:  Episode 321: A Small Rant About Newman Selling Annuities At Local Steakhouses | Risk Parity Radio Breathless Unedited AI-Bot Summary: You can optimize a portfolio to the comma and still miss the point if the tax tail is wagging the rest of your life. We dive into a common blocker—fear of realizing gains—and replace it with a better plan: build the mix you actually need, then minimize taxes over years with smart account placement, specific-lot sales, and well-timed gain harvesting. From there we lay out a practical route to a Golden Butterfly structure—growth and value stocks, long Treasuries, gold, and short-term bonds—implemented primarily inside tax-deferred accounts to keep the brokerage account’s changes light and intentional. Along the way, we tackle a hot question on Bitcoin. Our take is grounded, not tribal: no income, high volatility, and shifting correlation that often mirrors high-beta growth. If you must touch it, keep it tiny so it can’t steer your long-term outcomes. More important, we reframe risk tolerance: being comfortable with swings isn’t a destination. Decide whether your target is maximizing lifetime spending or terminal wealth, then right-size volatility and liquidity to fit that goal. Finance comes first; the personal is how you stick to it. We round out the conversation with a market scoreboard—gold’s surge, equities’ strength, managed futures’ late-year pop—and a transparent look at model portfolios, from classic all-weather to a measured, levered stack that’s built for accumulators who accept higher swings. We also share a listener-made “graphic novel” twist on a past episode now posted as bonus material. If you’re ready to shed tax paralysis, align your assets with your life, and use diversification that actually works across regimes, this one’s for you. If you enjoyed it, subscribe, leave a review, and tell us: what’s the next move you’ll make to simplify and realign your portfolio? Support the show

    40 min

  8. 12/17/2025

    Episode 473: Merry Christmas From Testfolio, More Cowbell, KBWP, And Fund Seeder Mania

    In this episode we answer emails from JT, Phil, and Glenn.  We revel in the updates to the TestFolio tools, weigh how tilting toward small cap value can lift safe withdrawal rates but also reduces overall diversification, return to KBWP and how property and casualty insurance companies can provide value-tilted diversification, and discuss the tracking results reported on the About page at the website. Links: Testfolio 5% Withdrawal Backtest Comparison:  testfol.io/?s=74fuq6N5WWd Testfolio Comparison of SCV, LCG, LCV and SCG:  testfol.io/?s=4eqimbZveGX Weird Portfolio:  Weird Portfolio – Portfolio Charts Testfolio KWBP and BRK-B Analysis:  testfol.io/analysis?s=l34pkinSxde Fund Seeder Tracker Site:  FundSeeder - Empowering Top Traders with Capital and Insights Breathless Unedited AI-Bot Summary: Ready to push past rules of thumb and actually pressure-test a retirement portfolio? We dig into how far a DIY investor can tilt toward small cap value to raise a safe withdrawal rate, what history really shows across 30- and 50-year windows, and why correlation—not bravado—decides whether you can keep spending through ugly markets. Using new Testfolio features with 100-year factor data, we compare the Golden Ratio and Golden Butterfly against more value-heavy mixes and pinpoint where the extra “cowbell” helps and where it just adds stress. We also open a less-traveled door inside equities: property and casualty insurers. Whether you own them through KBWP or direct index the top names, this sleeve has delivered rare intra-equity diversification, often keeping pace with broad markets while zigging in years like 2022. We share the practical trade-offs—expense ratios vs. tracking error, simplicity vs. tax loss harvesting—and explain when the ETF is the smarter, lower-hassle choice. If you already own Berkshire Hathaway for your value core, you’ll hear why insurers can complement or substitute without bloating overlap. Context matters, so we pull back the curtain on our publicly tracked taxable account and why it can look extreme in a bad year and strong in a good one. The whole-portfolio view is far steadier, closer to a risk parity blend of stocks, long treasuries, and diversifiers like gold and managed futures. The takeaway: if you want a withdrawal rate you can live with, build for multiple regimes—blend small cap value and large cap growth, keep long bonds for deflation shocks, and add real diversifiers that cut correlation when you need it most. Subscribe, share this with a DIY investor who loves data, and leave a review to tell us where you’d tilt next. Support the show

    33 min
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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
    482
  • Rating
    Explicit
  • Copyright
    © 2026 Risk Parity Radio
  • Show Website
    Risk Parity Radio

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