Lifecycle Investing, Risk Parity Portfolios, and Why Stocks Are Riskier in the Long Run

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 examplesHow does lifecycle investing work and should you consider itWhy investing in stocks and other volatile asset classes is riskier over longer holding periodsWhat are risk-parity portfolios and how to evaluate themThanks to Masterworks for sponsoring the episode.For more information on this episode click here.Show NotesThe moral calculations of a billionaire by Eli Saslow—The Washington PostLife-Cycle Investing and Leverage: Buying Stock on Margin Can Reduce Retirement Risk by Ian Ayres and Barry J. NalebuffLifecycle Investing - Leveraging when young, Forum Discussion by Steve Reading on bogleheads.orgWhat Practitioners Need to Know… About Time Diversification (corrected March 2015) by Mark Kritzman—Financial Analysts Journal Volume 71, Number 1Wishful Thinking About the Risk of Stocks in the Long Run: Consequences for Defined Contribution and Defined Benefit Retirement Plans by Zvi BodiePension Obligation Bonds: Know Their Appeal and Pitfalls by Todd Tauzer—SegalShrinkage Estimation in Risk Parity Portfolios by Nabil Alkafri and Christoph FreyPortfolio ChartsHow to Invest in Closed-End Funds—Money For the Rest of UsRelated EpisodesHow to Invest in Closed-End FundsWhy You Should Rebalance Your Portfolio306: Three Approaches to Asset AllocationSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.