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\u201cDo I have enough to fund my retirement?\u201d \u201cWhat\u2019s the optimal lifetime asset allocation?\u201d Those two questions, stemming from a recent academic paper written by Pete, help launch Episode 9. The answers point toward Pete\u2019s solution for retirement challenges, something called \u201cgoals-based\u201d asset allocations (as opposed a singular, static \u201call-in,\u201d asset allocation applied to your entire capital base). In other words, your specific goal \u2013 say, college tuition, a second home, maybe a trust \u2013 dictates the asset allocation of the associated, earmarked funds. From there, Meb and Pete transition to a discussion on factor-based investing, starting with \u201cterm\u201d and \u201cmarket\u201d factors. According to Pete, \u201cNinety-five, ninety-six percent of the return variation of all managers and funds in the Morningstar database are explained by\u2026basic factors.\u201d Meb then asks, \u201cWhat are the best diversifiers to a traditional portfolio?\u201d Hint: Pete\u2019s response includes Meb\u2019s \u201cdesert island\u201d strategy. They then discuss whether individual smart beta factors such as \u201cvalue\u201d should be evaluated relative to their own historical valuation. Your own answer will likely reflect whether or not you believe markets are mean-reverting, a topic often debated. They then touch upon risk factors as applied to REITs before diving into a discussion of the Yale Endowment allocation. Pete tells us that Yale\u2019s outperformance over the decades really boils down to just one thing: exposure to venture capital. The rest could be replicated in a factor-tilted portfolio. They wrap up with a reader question: \u201cHow do you know when your strategy no longer works?\u201d Find out Meb\u2019s and Pete\u2019s answers in Episode #9.\nLearn more about your ad choices. Visit megaphone.fm/adchoices