Make Retirement Awesome Again With Jared Dillian

Jared Dillian's Awesome Portfolio advocates a 20% allocation each to stocks, bonds, cash, gold, and real estate for lower drawdowns and higher risk efficiency. Traditional all-stock portfolios expose investors to severe drawdowns and behavioral pitfalls; diversification across uncorrelated assets enhances long-term compounding. Bullish on bonds (especially front-end), bearish on the USD, precious metals have bottomed, and energy likely has peaked.

Jared Dillian talks about his awesome portfolio (0:30)

Saving for retirement (2:20)

Are we in a new normal? (7:10)

Managing money (12:45)

Bullish on bonds, bearish on the USD, precious metals bottomed (14:00)

Tax consequences (19:05)

Portfolio statistics (24:20)

Jared Dillian, very happy to have you on Investing Experts Podcast. For those that don't know, have been in hiding perhaps, and have not afforded themselves your content yet. It's Jared Dillian, founder and content creator at Jared Dillian Money, also the author of most recently, The Awesome Portfolio . And very excited to get into that today. Perhaps you've read the book, No Worries, How to Live a Stress Free Stress Free Financial Life. Jared, really happy to have you on Seeking Alpha. Really great to have you on Investing Experts. Thanks for making the time.

Yeah, thanks for having me. I've kind of been in hiding lately, so it's good to crawl out of my cave and do a podcast.

Always important to peek out and and see what's happening in the real world, on the online world, both perhaps. So, first of all, why are you out of hiding? Why why poke your head out? Is it is it to talk about the book? Is it for other things?

I would say in the last couple of years I've been keeping a little bit of a lower profile. I've been doing my newsletter for eighteen years, which is a really long time to do anything. And I've been focusing more on managing money. I have my other extracurricular pursuits, but yeah, the book, The Awesome Portfolio, is coming out on September 8th. I am super excited about it. It's kind of been a not lifelong, but at least since 2019, a mission of mine to get people to save for retirement in a much smarter, low stress way than the way they do it currently. I think the way we do it currently is really a mess and prone to all kinds of problems.

Well, maybe let's get started there. And I'm curious, coming from the newsletter and creating content, have you always had these ideas in mind to put them out in book form?

The one idea that I've had is the conventional wisdom around saving for retirement, for most people, is that you put all your money in a low-cost stock market index fund and you dollar cost average it. And anybody who's ever sat down with an Excel spreadsheet for the first time and discovered compound interest, if you max out a 401k for 40 years and you dollar cost average it and you get 11% returns in the SP 500, which is what we've had for the last 40 years, you're gonna have a huge number when you retire. And I think people are kind of seduced by that number. and what they don't realize is that the path to get there is very rocky sometimes. and that if you're going to be investing over a 40-year period, there's probably gonna be at least one instance where you have a 50% drawdown or more, right? And how you behave during those drawdowns is super important. I think also the conventional wisdom is that stocks always come back and all you have to do is keep dollar cost averaging and do what you always did. some people can't do that. some people will puke and sell their retirements funds and stop compounding. And for the people who manage to keep doing it, they're just gonna be really unhappy until they get back to the high water mark, right? So what I...