Nov 30, 2023

Episode 281: Lifecycle Asset Allocation, and Retiring Successfully with Justin King

Today, we take a closer look at asset allocation through an empirical lens, by drawing on the work and data of Scott Cederburg and his new article ‘Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice’. We unpack what the research tells us about how to establish the optimal mix of assets in a portfolio, the challenges of making the right decisions when you have volatile assets, and why it’s critical that you understand your level of risk tolerance. Next, in our Mark to Market segment, we unpack different types of insurance — like life, disability, and critical illness — and when you should own them personally versus making them the property of your corporation. We then review Justin King’s new book The Retirement Café Handbook: Nine Accelerators for a Successful Retirement before sitting down with the author himself to discuss the content of his latest work and his long-held interest in helping others optimize for retirement. Tuning in you’ll hear Justin share his thoughts on the role of choice, vitality, and joy when it comes to having a successful retirement, the nine accelerators he lays out in his book, and how to become the hero of your retirement story. In our final section, we wrap things up with some wonderful reviews from listeners and our book recommendations. To hear all of the captivating takeaways from today’s episode, be sure to tune in!

 

https://youtu.be/5-C79sLpRUs

 

Key Points From This Episode:

(0:02:12) Breaking down asset allocation through an empirical lens; finding the right mix of assets in a portfolio, common challenges, and measuring risk.

(0:09:10) The role of government pensions when considering asset allocation over one’s life.

(0:11:27) Investigating whether volatility is risk; modeling the lifecycle of an investor and determining if (and when) it makes sense to shift into bonds over time.

(0:14:02) Analyzing the data, modelling, and findings from the paper, ‘Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice’.

(0:23:10) The challenges of behaving well with volatile assets; advice on how to assess your risk tolerance, your ability to endure short-term declines, and more.

(0:29:50) Our Mark to Market segment: unpacking different types of insurance and when you should own them personally or inside your corporation.

(0:37:58) A quick look back at our conversation with Dr. Anna Lembke on the subject of dopamine.

(0:39:33) This week’s book review: Justin King’s The Retirement Café Handbook: Nine Accelerators for a Successful Retirement.

(0:41:19) Our conversation with Justin King on how to retire successfully.

(0:45:44) Unpacking the nine accelerators in Justin’s book and where they come from.

(0:55:47) How to get the most out of The Retirement Café Handbook.

(0:59:28) Sharing some of the wonderful reviews we’ve gotten recently, plus our book recommendations.


Participate in our Community Discussion about this Episode:

https://community.rationalreminder.ca/t/episode-281-lifecycle-asset-allocation-and-retiring-successfully-with-justin-king-discussion-thread/26201

Books From Today’s Episode:

‘Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4590406

Dopamine Nation: Finding Balance in the Age of Indulgence — https://www.annalembke.com/dopamine-nation

The Retirement Café Handbook: Nine Accelerators for a Successful Retirement — https://www.amazon.co.uk/Retirement-Cafe-Handbook-Accelerators-Successful/dp/1739410300

Strangers in Paradise: How Families Adapt to Wealth Across Generations — https://www.amazon.com/Strangers-Paradise-Families-Wealth-Generations/dp/0615894356

Wealth 3.0: The Future of Family Wealth Advising — https://www.amazon.com/Wealth-3-0-Future-Family-Advising/dp/B0C9SHFSGM

Links From Today’s Episode:

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.

Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://twitter.com/RationalRemind

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca

Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Episode 30: Larry Swedroe — https://rationalreminder.ca/podcast/tag/Larry+Swedroe

Episode 224: Prof. Scott Cederburg — https://rationalreminder.ca/podcast/224

Episode 169: Prof. John Cochrane — https://rationalreminder.ca/podcast/169

Episode 250: Prof. John Y. Campbell — https://rationalreminder.ca/podcast/250

Episode 278: Juhani Linnainmaa: Financial Advisors, and the Cross Section of Returns —  https://rationalreminder.ca/podcast/278

Episode 177: Dr. Anna Lembke — https://rationalreminder.ca/podcast/177

Anna Lembke — https://www.annalembke.com/

Justin King on LinkedIn — https://www.linkedin.com/in/justinking-retirement-planner-ifa/

Justin King on X — https://twitter.com/JustinKingCFP

The Retirement Café — https://www.theretirementcafe.co.uk/

The Retirement Café Podcast — https://www.theretirementcafe.co.uk/podcast

Notes from Listener

1. The Small Guide to Self-Directed Investing

2. Investing Notes

About The Author
Cameron Passmore
Cameron Passmore

Cameron Passmore has been a leading advocate for evidence-based, systemic investing for over 20 years in the Ottawa area. Today, Cameron and his team serve a broad range of affluent clients across Canada.

Benjamin Felix
Benjamin Felix

Benjamin is co-host of the Rational Reminder Podcast and the host of a popular YouTube series.

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