Risk Parity Portfolio FIRE Fails Even Without Leverage
A risk parity portfolio FIRE fails unlevered at 2.45% to 2.71% over 50 years. The apparent edge comes from small-cap value, not diversification.
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A risk parity portfolio FIRE fails unlevered at 2.45% to 2.71% over 50 years. The apparent edge comes from small-cap value, not diversification.
FIRE withdrawal strategy breaks at retirement when the optimization function stays set to the accumulation phase. The fix is structural, not psychological.