508 | 5% SWR, Revealed Preferences, and the 3 Stories | Frank Vasquez

In this episode: 5% safe withdrawal rate, the three stories, psychology and personal finance, and community.

In this insightful episode of the ChooseFI Podcast, Brad chats with Frank Vasquez, a well-known figure in the financial independence community and the voice behind Risk Parity Radio. They delve into Frank’s journey from a career in law to becoming a personal finance expert, and explore topics like the 5% safe withdrawal rate, revealed preferences, and Frank’s three defining life stories. This conversation offers insight on approaching personal finance, investments, and life after achieving financial independence. Frank shares his unique blend of academic rigor, personal curiosity, and his thoughtful approach to living with purpose in the post-FI world.

🔑 Key Themes Discussed:

• Understanding the 5% Safe Withdrawal Rate (SWR) and its practical application.
• How revealed preferences shape financial and life decisions.
• The three stories Frank lives by: the Curious Child, the Starfish Thrower, and the Mexican Fisherman.
• How narrative psychology impacts our personal finance decisions.
• Personal experiences in managing life post-financial independence.
• The intersection of economics, personal finance, and storytelling.
• Practical insights on podcasting, community engagement, and sharing financial knowledge.

🕒 Chapters:

• 00:00 – Introduction to Frank Vasquez and Risk Parity Radio.
• 03:00 – Frank’s Journey: From Law to Personal Finance Expert.
• 07:30 – Understanding the 5% Safe Withdrawal Rate.
• 15:00 – The Three Stories Frank Lives By.
• 25:00 – Revealed Preferences: What Do We Really Want?
• 35:00 – Narrative Psychology and Personal Finance Decisions.
• 45:00 – Post-FI Life: Teaching, Relationships, and Purpose.
• 55:00 – Frank’s Thoughts on Podcasting and Community.

🔗 Mentioned Links and Resources:

• Risk Parity Radio
• Big Think video on Narrative Psychology with Jane Goodall and Terry Crews
• “Build the Life You Want: The Art and Science of Getting Happier” by Arthur Brooks and Oprah Winfrey
• The Role Of Bonds In A Portfolio with Frank Vasquez | ChooseFI Ep 194
• Find Your Local ChooseFI Group

More Helpful Links and FI Resources:

• Top 10 Recommended Travel Rewards Credit Cards
• Empower: Free Dashboard to Track Your Finances
• CIT Bank Platinum Savings Account
• M1 Finance: Commission-Free Investing, 1-click rebalancing
• CashFreely: Maximize Your Cash Back Rewards
• Travel Freely: Track all your rewards cards and points
• Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
• Student Loan Planner: Custom Consult (with $100 Discount)
• Get a cheaper phone plan with Mint Mobile