#618: Retiring at 50 While Caring for Elderly Parents, Featuring Frank Vasquez

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      Frank Vasquez observed his parents, aged 91 and 96, facing financial difficulties during their retirement. They were immigrants, with his father serving as a physician, and they raised five children. They retired in the early 1990s, but by 2009, they exhausted their funds. At 45, Frank received calls from his parents seeking financial assistance to make ends meet. This reality struck Frank profoundly and initiated a ten-year journey to understand sustainable retirement withdrawals.

      At 45, Frank set an ambitious objective: to retire in his early 50s while also providing financial support to his parents. The challenge? Most financial advisors simply recommended spending less instead of optimizing portfolios for better withdrawal rates, which left Frank unsatisfied.

      You will learn how Frank realized that many retirees miss out on potential funds by holding excessive cash or adhering to overly conservative allocation strategies. Through thorough research, he identified an optimal stock allocation that maximizes safe withdrawal rates—something most conventional advisors overlook.

      Frank elaborates on his portfolio construction strategy, emphasizing the importance of balancing growth and value stocks while limiting bonds to U.S. treasuries for recession protection. He breaks down the calculations behind safe withdrawal rates and highlights why rising property taxes can be a hidden danger to retirement security as home values increase.

      The discussion also touches on risk parity strategies, macro allocation principles, and the advantages of diversifying across uncorrelated assets for greater stability compared to traditional 60/40 portfolios. Frank discusses his Golden Ratio Portfolio, a systematic approach to asset allocation designed specifically for the retirement drawdown phase.

      Frank found solutions to the issues that affected his parents’ retirement, and his approach could help you avoid making similar errors.

      Resources mentioned: All resources referenced in today’s episode can be accessed by clicking the link below:

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