Lifecycle Investing, Risk Parity Portfolios, and Why Stocks Are Riskier in the Long Run
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How lifecycle investing and risk parity portfolios can assist you in having sufficient assets to retire. What are the two types of time diversification and why is one flawed?

Topics covered include:

• What is settled work and what are some examples
• How does lifecycle investing work and should you consider it
• Why investing in stocks and other volatile asset classes is riskier over longer holding periods
• What are risk-parity portfolios and how to evaluate them

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Show Notes

The moral calculations of a billionaire by Eli Saslow—The Washington Post)

Life-Cycle Investing and Leverage: Buying Stock on Margin Can Reduce Retirement Risk by Ian Ayres and Barry J. Nalebuff)

Lifecycle Investing - Leveraging when young, Forum Discussion by Steve Reading on bogleheads.org)

What Practitioners Need to Know… About Time Diversification (corrected March 2015) by Mark Kritzman—Financial Analysts Journal Volume 71, Number 1)

Wishful Thinking About the Risk of Stocks in the Long Run: Consequences for Defined Contribution and Defined Benefit Retirement Plans by Zvi Bodie)

Pension Obligation Bonds: Know Their Appeal and Pitfalls by Todd Tauzer—Segal)

Shrinkage Estimation in Risk Parity Portfolios by Nabil Alkafri and Christoph Frey)

Portfolio Charts)

How to Invest in Closed-End Funds—Money For the Rest of Us)

Related Episodes

How to Invest in Closed-End Funds)

Why You Should Rebalance Your Portfolio)

306: Three Approaches to Asset Allocation)

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