Episode 423: ALLW (It's New!), Social Security Claiming Considerations And Dividend Delusions

Risk Parity Radio

In this episode we answer emails from Dave, Jeff and Peter. We discuss a new risk parity ETF, ALLW, a social security claiming question and considerations, and how a listener has been misled regarding so-called dividend investing by misinterpreting a misleading source.
Links:
Father McKenna Center Donation Page: Donate - Father McKenna Center
ALLW Fund Main Page: ALLW: SPDR® Bridgewater® All Weather® ETF
Open Social Security: Open Social Security: Free, Open-Source Social Security Calculator
Hartford Funds Dividend Fund Page: The Power of Dividends: Past, Present, and Futurehb
Breathless Unedited AI-Bot summary
Financial misconceptions can cost you dearly. This eye-opening episode tackles three critical investment topics that challenge conventional wisdom and may transform how you approach your portfolio.
When State Street and Bridgewater Associates launched their All Weather ETF (ALLW), it promised the stability of risk parity with the pedigree of Ray Dalio himself. We dissect this new offering—examining its 175% leverage, complex asset allocation, and 0.85% expense ratio—to determine whether it delivers on its promises or falls into the same traps as similar products like RPAR and UPAR. For investors approaching retirement, understanding these nuances could be the difference between confidence and confusion in the decumulation phase.
Delaying Social Security benefits remains one of retirement planning's most debated decisions. We cut through the noise of oversimplified break-even calculators to explore what truly matters: appropriate risk-free rate calculations, the value of guaranteed income streams, and perhaps most importantly, how your family's longevity history should influence your claiming strategy. For married couples, the analysis becomes even more critical as spousal benefits create powerful optimization opportunities that generic calculators often miss.
The episode concludes by dispelling one of investing's most persistent myths: the magical power of dividends. When Hartford Research noted that "85% of the S&P 500's return came from reinvested dividends and compounding," many investors misinterpreted this to mean dividends themselves were responsible for these returns. We reveal how this fundamental misunderstanding leads investors astray, explain why dividend payments offer no advantage in today's zero-commission environment, and demonstrate why creating your own "dividend" through strategic selling provides superior tax control.
Whether you're building wealth or planning your withdrawal strategy, these insights will help you see beyond marketing claims to make decisions based on financial reality rather than comforting illusions. Listen now to align your investment approach with actual market mechanics instead of persistent financial folklore.
Have a question about risk parity investing or portfolio construction? Email [email protected] or visit riskparityradio.com to join our community of thoughtful DIY investors.
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Chapters

1. Welcome to Risk Parity Radio (00:00:00)

2. Bridgewater's All Weather ETF Analysis (00:02:05)

3. Social Security Delay Calculation (00:13:06)

4. Debunking Dividend Investing Myths (00:20:19)

5. Closing Thoughts and Contact Information (00:34:24)