Risk Parity Radio

They warn against chasing shiny tickers and tiny fee splits instead of designing portfolios around asset classes and goals. They explain differences between zero-fee mutuals and ETFs and how to verify a fund’s true exposure. They debate gold versus multi-precious-metal baskets. They cover cash-equivalent tax strategies, how much liquid cash to hold, and when to shift toward retirement allocations.

In this episode we answer emails from Andy, John, and Todd.  We discuss what "holding dollars" means, the lure of speculation on recent events, the ongoing inadequacies of 401k and 403b plans and their incentives, and small cap value vs. small cap blend.  More Cowbell!  Before that we trade stories from the EconoMe Conference and spotlight Fairfax CASA’s work with foster kids and our fundraising efforts.Links:Fairfax CASA Donation Page:  Donate - Fairfax CASAEconoMe Presentation on Financial Forecasting and Base Rates:  F. Vasquez EconoMe 2026 Final Slides.pdf - Google DriveTestfolio Comparison of LCV vs. LCG vs. SCV vs. SCG:  testfol.io/?s=cSv9C5VxOW9Testfolio Comparison of Golden Ratio Portfolios with Small Cap Variants:  testfol.io/?s=hTcOUvd0g4JBreathless Unedited AI-Bot Summary:Markets get weird fast: oil shocks, war headlines, and that sickening moment when it feels like every asset in your portfolio is moving together. We dig into a question that pops up in exactly those moments: what does it actually mean when traders say they’re “holding dollars,” and is there a DIY investor version that makes sense? We walk through the mechanics behind dollar demand, why institutional cash moves don’t map neatly onto a home risk parity portfolio, and why cash timing is a low-odds game for long-term investors.From there, we tackle the real culprit behind most bad decisions: the urge to tinker. We talk leverage, opportunistic investing, and the seductive idea that you’ll spot the perfect entry point if you just watch enough financial news. Our view stays consistent: a disciplined asset allocation, a clear rebalancing rule, and the patience to wait out uncertainty usually beat prediction. If you absolutely must scratch the itch, we discuss how some investors think about volatility tools when the VIX is elevated, and why even “smart” speculation should be capped and rules-based.We also answer a practical retirement-plan headache: building diversified risk parity style exposure inside a 401k or 403b with limited fund menus. We explain why plan options change slowly, what kinds of “alternative investments” may show up instead, and why pushing for a self-directed brokerage window can be the most effective workaround. Finally, we close with a nerdy but important allocation question: small cap value vs small cap blend, how small cap growth can sneak in, and why index selection (CRSP vs deeper value tilts like S&P 600 value style exposure) can change what your backtest is really telling you.Subscribe for more DIY investing clarity, share the show with a friend who keeps tinkering, and leave a quick review with your biggest portfolio question.Support the show

They debate how much gold belongs in a portfolio and why tiny differences on backtests can be misleading. They compare calculators and encourage using multiple tools and durable allocation ranges. They walk through a near-retirement FIRE portfolio, stressing liquid assets, withdrawal-rate math, and diversification fixes. They also explain where to look for advisors who understand risk-parity principles.

They debate why gold and Treasuries earn a place in portfolios and why recent returns should not drive allocation changes. They call out common investor fallacies like momentum bias and short-term timing. They discuss UK investor currency and allocation choices and explain how stock-bond correlations shift across growth and inflation regimes. They close with reviews of several model portfolios.

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.

They celebrate a major community fundraising match and the impact of donor-advised funds for simple, tax-smart giving. They debate using STRIPS funds to tweak bond allocations and free space for equities and gold. They warn against chasing shiny investment ideas and outline a plain two-fund equity approach for long-term accumulation. They critique risk parity ETFs and walk through recent portfolio reviews and market moves.

Jillian Johnsrud, author and personal finance writer who shares her adoption and foster-care experience and champions CASA. She tells a moving adoption story and the lasting impact of a steadfast CASA. The conversation then moves to fund selection, Big Law career tips, risk-parity and the four-quadrant portfolio framework, alternatives like gold and managed futures, and a partial retirement withdrawal scenario.

They debate whether direct indexing makes sense for small-cap value and why it often fails. They explore modest leverage on diversified portfolios versus stock-heavy bets. They model an early-retirement extra-spending plan and discuss using base rates for forecasting. They run detailed weekly and monthly reviews of eight sample portfolios and highlight recent performance shifts in alternatives.

A moving fundraising segment about Fairfax CASA and a child reunification story that inspired listener donations. A debate on whether managed futures can replace gold and how each hedge behaves in crises. A listener’s plan for an eight-year career break and a conservative drawdown portfolio built to preserve capital and provide multi-year runway.

Mary shares her work with Fairfax CASA and how steady advocacy changes outcomes for abused and neglected children. The hosts launch a CASA fundraising drive tied to National Child Abuse Prevention Month. They explore using a Golden Butterfly risk-parity approach for three–five year savings and how to model HYSAs versus portfolios. They also cover new 529-to-Roth rollover tactics and warn about highly leveraged kids’ portfolios.