Risk Parity Radio Episode 492: An Expat Risk Parity Style Portfolio, Intermediate Accumulation For A Mortgage, And Assorted Asset Allocation Questions
22 snips
Mar 12, 2026 A listener’s expat portfolio and a modified Golden Ratio allocation are examined along with long-duration Treasury choices. Practical withdrawal flexibility and a 5.5% withdrawal framework are discussed. Strategies for intermediate accumulation to pay down a mortgage are explored. Questions about mid-cap, international tilts, and splitting short vs long Treasuries round out the conversation.
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Use A Risk Parity Portfolio For Recession Insurance
- Do adopt a risk parity style portfolio if you need recession insurance and low correlated returns.
- Frank praises TJ's modified Golden Ratio (25% VUG, 20% GLDM, 15% AVUV, 15% ZROZ, 10% AVDV, 10% DBMF, 5% AVES) as reasonable for drawdown control and higher long-term returns.
Use Flexibility And Geoarbitrage To Raise Safe Withdrawal Rates
- Do consider flexible withdrawal rules like the Bengen floor/ceiling to raise sustainable withdrawal rates.
- Frank says living abroad (ability to relocate, different inflation experience) plus flexibility can push a 5% SWR to 5.5%–6% for TJ's situation.
ZROZ Versus TLT Is Curve Dependent Not Fixed Leverage
- Insight: ZROZ vs TLT behaves like an interest-rate-dependent ratio, not fixed leverage.
- Frank notes duration ratios shift with the yield curve and the comparison matters most during recessions or periods of big rate moves.