Talking Real Money - Investing Talk: Recent Episodes
Don McDonald, Tom Cock
30-year financial talk radio veteran, Don McDonald and former host of Serious Money on PBS, Tom Cock, reunite on a weekly call-in program talking about real money issues. Each week they solve real money problems, dole out real investing (not speculating) advice, and really explain the financial issues that effect all of us. It's a show designed to provide the real help we all need to enjoy a really great future. Call in with your questions anytime at 855-935-TALK (8255).
Financial Physics rule five asks the uncomfortable question every investor should answer: what is the worst that could happen? Don and Tom revisit leverage in 1929, the crashes of 2000, 2008, and 2020, and the practical defenses that keep a bad market from becoming a ruined plan.
Then the questions turn to retirement planning: managing IRMAA while considering Roth conversions, weighing long-term-care insurance against self-insuring, and judging whether a $1.6 million portfolio can support a modest withdrawal despite a pricey advisor.
Finally, they untangle the five-year rule when Roth 401(k) money moves to a Roth IRA—and confirm that Tom, not Don, is the resident grump.
00:39 Financial Physics rule five: prepare for the worst
04:35 Leverage, crashes, and the lost decade
06:27 Risk near and in retirement
12:23 IRMAA brackets and Roth conversions
16:46 Long-term-care insurance or self-insure?
22:30 Retirement withdrawals and advisor fees
24:34 Roth 401(k) rollovers and the five-year clock
Questions? Comments? Click!
Don opens with a spirited defense of AI as a creative tool—especially when it makes ideas possible that would otherwise be too expensive or time-consuming. Technology changes the jobs around us, but learning to direct it responsibly can expand what one person can make.
Then it’s on to listener questions: how charitable giving from a retirement account might work better through an IRA and qualified charitable distributions, whether dividends and bond interest should be reinvested, and why money generally belongs at work instead of waiting in cash.
Finally, Don weighs a COLA-adjusted pension against a lump sum, considers a low-cost new 401(k) versus an IRA, gives a hard no to illiquid Why Refi promissory notes, and compares simple flexible retirement withdrawals with advisor-managed guardrails.
03:40 — AI as a creative tool
07:01 — Charitable giving, IRAs, and QCDs
09:55 — Reinvesting dividends and bond interest
11:37 — Pension or lump sum? Plus the next 401(k)
14:52 — Why Refi and the danger of “magical” returns
17:56 — Flexible withdrawals versus guardrails
Questions? Comments? Click!
Chargebacks were built to protect consumers from stolen cards and crooked merchants. Now they’re increasingly used when a subscription surprises someone, a restaurant disappoints, or buyer’s remorse sets in. Don and Tom sort real fraud from “friendly fraud”—and explain why the first call should usually go to the merchant, not the bank.
They also look at confusing statement names, recurring subscriptions, the cost merchants absorb when a dispute lands, and why credit cards generally provide stronger consumer protection than debit cards.
Then it’s listener-question time: a free-dinner annuity pitch promising 12% to 15%, whether to bunch charitable gifts, dialing a retirement portfolio from 60/40 to 50/50, and using RMD withdrawals to rebalance at Vanguard.
0:38 — From 1929 bucket shops to today’s prediction markets
3:21 — Chargebacks, card fees and “friendly fraud”
7:06 — Mystery merchant names and subscription confusion
8:25 — Bad service, buyer’s remorse and the fraud line
11:10 — When a chargeback is legitimate
13:28 — Why merchants lose most disputes
16:59 — Listener questions begin
17:30 — The free-dinner annuity pitch
22:49 — Should you bunch charitable gifts?
24:06 — 60/40 or 50/50 before Social Security?
26:06 — RMD withdrawals and Vanguard rebalancing
Questions? Comments? Click!
VT, DFAW, and AVGE all promise global diversification—but they take different roads to get there. Don and Tom compare cost, holdings, factor tilts, and the extra risk behind higher expected returns, then explain why the “best” one-fund solution depends on how much risk you actually need.
Then a listener asks why advisors build portfolios with many funds when one might do. The answer runs through tax-loss harvesting, rebalancing, personalization, and the fine line between thoughtful design and a 20-fund hodgepodge.
Also: the hidden tradeoffs in fractional rental-property platforms such as Arrived, why IRMAA anxiety can outweigh the actual Medicare surcharge, and a sensible way to unwind concentrated tech gains without detonating the tax bill.
00:30 Swing-era cold open
01:53 Three global funds, one decision
03:29 VT, DFAW, and AVGE compared
05:45 Recent returns and expense ratios
06:47 Factor tilts: value, size, and profitability
08:59 Holdings, frontier markets, and micro-caps
10:40 Matching the fund to the risk you need
14:52 Listener question: one fund or many?
17:50 Why advisors use multiple funds
22:08 Fractional real estate and Arrived
25:47 IRMAA anxiety versus the actual surcharge
28:56 Unwinding concentrated tech gains
32:15 Buc-ee’s, crypto, and trademark comedy
Questions? Comments? Click!
From your 20s to your 60s, the priorities change—but the basic job doesn’t. Don and Tom walk through emergency savings, Roth IRAs, 401(k) matches, rebalancing, retirement planning, Social Security, Medicare, and estate planning, decade by decade.
Then Mary calls with a smart Roth-conversion puzzle. They weigh whose IRA to convert, how much to move without wasting a low tax bracket, the age-59½ penalty, and why a household’s accounts should be managed as one portfolio—even when the spouses have very different tolerances for risk.
Finally: whether retirees still need emergency cash, how much umbrella insurance is enough, when a family office begins to make sense, and three near-identical retirement portfolios from a listener in Wagner, South Dakota—whose hometown briefly steals the show.
00:25 Tom’s brassy choice
01:36 Financial priorities, decade by decade
02:58 Start early with a Roth IRA
04:02 Your 30s: emergency cash and the 401(k) match
06:02 Your 40s: fixed obligations and retirement planning
09:13 Your 50s: risk, HSAs, and getting on track
10:45 Your 60s: Social Security, Medicare, and estate planning
14:48 Roth conversions and household asset allocation
24:12 Emergency funds in retirement
27:01 Umbrella coverage and family offices
30:16 Three retirement portfolios from Wagner
Questions? Comments? Click!
Rule Four of Financial Fysics says everything eventually rises—not every stock, not every year, but human productivity and global economic output over time. Don and Tom explain why buying the broad market is ownership in thousands of businesses, not a trip to the casino, and why international diversification matters when nobody knows which country will lead the next century.
Then Kenneth asks whether a tiny slice of his emergency fund belongs in stocks. The answer is still no: emergencies tend to arrive when markets are already falling. The guys also look at using qualified charitable distributions from inherited IRAs and why smart tax planning should not let the tax tail wag the financial dog.
Finally, they compare BND with TIPS and ultra-short bond funds, unpack the trade-off between price stability and durable yield, and explain why preferred stocks cannot replace the ballast in a 60/40 portfolio.
00:44 AI music, a low-budget show, and big-money topics
02:46 Financial Fysics Rule Four: everything eventually rises
04:05 Stocks are ownership, not a casino bet
05:13 Macroeconomic gravity and two centuries of productivity
07:45 From $48 to $90,000 of U.S. output per person
08:22 Letting thousands of companies do the heavy lifting
09:18 AI, global output, and a Social Security token tax
11:03 Why the next century demands global diversification
13:35 Should emergency-fund money ever go into stocks?
19:56 Inherited IRAs and qualified charitable distributions
21:40 BND versus TIPS and ultra-short bond funds
26:59 Why preferred stocks are not bond substitutes
29:13 Theme-song experiments and the Talking Real Money singers
Questions? Comments? Click!
Can 21 funds deliver useful global diversification—or mostly camouflage overlap, cost, and complexity? Don opens the Friday Q&A by giving one listener a sharper set of questions to take back to an advisor, including what each fund actually contributes and what would be lost by owning fewer.
The questions then move from portfolio architecture to retirement reality. A listener learns why RMDs and Roth conversions should not wag the retirement dog, and another faces a sudden $15,000-a-month skilled-nursing bill that changes the investment plan for good reasons—not because of market timing.
There’s also a timely Roth-conversion opportunity for a young worker headed back to school, a warning about state charges on multi-year guaranteed annuities, and a sober return estimate for a balanced portfolio. Add one lovingly brutal critique of Competitive Don, and the listener mailbag is officially doing its job.
00:39 Welcome to Friday Q&A
02:50 Are 21 funds too many?
05:40 Don’t let RMDs wag the retirement dog
09:13 Investing for a $15,000-a-month care bill
12:44 A low-income-year Roth conversion
15:30 Competitive Don gets reviewed
18:04 State charges on multi-year guaranteed annuities
19:05 What return should a 60/40 portfolio expect?
Questions? Comments? Click!
Active fund managers have a new explanation for years of underperformance: index funds have made their old job harder. Don and Tom examine that award-winning excuse, revisit how indexing reshaped the business, and return to the stubborn arithmetic—when active management charges more, matching the market still means losing to it after fees.
Listener questions widen the lens. A UK investor wants to move from 60/40 to 50/50 without taking needless currency risk, while a family needs a sensible plan for a $200,000 windfall, a near-term car purchase, Roth contributions, and the money left for a brokerage account.
The show closes with a federal retiree’s TSP allocation and a critique of an AI-built income portfolio stuffed with dividend funds. The throughline is simple: start with the job the money must do, favor total return over yield theater, and keep the plan easier to understand than the sales pitch.
00:33 AI jingles on demand
02:31 Active managers blame index funds
08:34 A Social Security benefit wrinkle
10:00 A UK investor moves from 60/40 to 50/50
16:11 Planning a $200,000 windfall and car purchase
20:20 A federal retiree’s TSP choices
22:59 AI builds a dividend-income portfolio
28:24 The jingle experiment continues
Questions? Comments? Click!
Listener questions take over the studio as Don and Tom work through a very big pile without sacrificing any more forests than necessary. The quick tour runs from life insurance in retirement to the seductive yield on floating-rate bank-loan ETFs—and why extra income usually comes with extra risk.
Then a live call turns asset allocation into an actual retirement plan: how a couple can move from 90/10 to 70/30, use Roth space intelligently, and rebalance without guessing what the market will do next. The hosts also weigh simplifying banking at Fidelity or Schwab, the Social Security shortfall, and the limits of retiring at 53 on a $2.8 million 401(k).
It’s a brisk, practical Q&A about making portfolios safer, simpler, and realistic—plus expensive vacations, old television, and the strange persistence of paper.
00:00 A special midweek Q&A
03:29 Life insurance after retirement
06:47 The risk behind high-yield bank-loan ETFs
11:12 Bonds inside Roth accounts
13:14 Moving a portfolio from 90/10 to 70/30
22:54 Spending more after years of saving
25:18 Consolidating banking at a brokerage
26:53 How to repair Social Security
31:10 Can $2.8 million fund retirement at 53?
Questions? Comments? Click!
AI stocks are booming, valuations are stretched, and capital spending is surging. Does that add up to a bubble—or just another story investors cannot reliably time? Tom and Don walk through Fidelity’s warning signs without pretending anyone can ring a bell at the top.
The practical conclusion is less exciting and more useful: stay diversified, keep realistic expectations, include the fixed income your plan needs, and do not mistake a recent gain for money the market owes you forever.
Then a caller pressure-tests the flexible 5% withdrawal idea, followed by questions on delaying Social Security after leaving work and why convertible bonds add complexity without much benefit for individual investors.
00:00 Time compression and the AI boom
02:42 Is artificial intelligence in a bubble?
04:51 Earnings, cash flow, and valuation signals
07:14 Capital spending and the rate-cycle argument
08:56 Fidelity’s verdict—and the diversified response
11:13 The greed hidden inside market timing
13:04 How flexible is a flexible 5% withdrawal?
19:56 Delaying Social Security after stopping work
23:44 Convertible bonds and a very expensive C-share fund
Questions? Comments? Click!
Markets fluctuate. That sounds obvious—until a favorite stock climbs for years and investors start treating gravity as optional. Tom and Don revisit Financial Physics and the essential difference between a temporary market decline and permanent single-company damage.
The cure is not predicting the next dip. It is connecting the return you need with the volatility you can tolerate, then owning thousands of companies and rebalancing instead of reacting.
Questions range from IRA eligibility for business owners to building a global portfolio in Singapore, choosing bonds near retirement, using a self-directed 401(k) window, and making a retirement plan before the calendar makes one for you.
00:00 Money Monday and the law of financial fluctuation
02:57 Why individual winners eventually stumble
05:04 Temporary market declines versus permanent stock losses
06:56 Return, volatility, and the tradeoff nobody escapes
09:32 Diversification across roughly 10,700 companies
12:16 IRA contributions for LLCs, partnerships, and corporations
15:54 A listener’s investing journey from Singapore
18:08 Fixing a concentrated U.S. portfolio overseas
21:17 Bonds as retirement approaches
23:40 Self-directed 401(k) windows and overthinking
24:31 Build a retirement life—not just a retirement date
Questions? Comments? Click!
Bonds are supposed to be the brakes in a portfolio—but should those brakes be BND, a shorter-term fund, CDs, or a Treasury ladder? Don explains why duration, yield stability, and personal comfort make the answer more nuanced than one ticker.
The Friday questions keep coming: pairing AVGE with VT, moving $5 million from real estate into a retirement portfolio, understanding an emerging-markets fund that became legally non-diversified, and building 529s for grandchildren.
The final stretch is all planning: Roth conversions and IRMAA, choosing a HELOC over a 401(k) loan, and resisting the urge to let the tax tail wag the retirement dog.
00:00 A full inbox of financial questions
02:30 BND versus short bonds, CDs, and Treasury ladders
06:45 AVGE plus VT—or unnecessary overlap?
10:23 Moving $5 million from real estate into markets
14:51 When an index fund becomes legally non-diversified
18:18 Building 529s and Roth head starts for grandchildren
22:16 Roth conversions, RMDs, and IRMAA
25:23 HELOC or 401(k) loan for renovations?
28:01 The tax tail and a long Roth-conversion plan
Questions? Comments? Click!
AI can crunch a portfolio, harvest losses, and explain an investment concept in seconds. But can it stop a nervous investor from selling at exactly the wrong moment—or understand the life behind the spreadsheet?
Tom and Don test the robot-advisor promise, even asking ChatGPT to weigh in. The verdict is a useful division of labor: let technology handle repeatable mechanics, while human judgment, fiduciary responsibility, and behavior coaching remain hard to automate.
Then the questions get wonderfully strange: whether a 0.70% advisory fee earns its keep, how a concentrated tech fund hides risk behind a huge return, whether a $100 million Bitcoin Roth story adds up, and how to invest an inherited account.
00:00 Are AI advisors coming for financial planners?
03:06 ChatGPT offers its own cautious verdict
04:14 Where automation helps—and where humans matter
09:36 What investors should ask their advisory firms
12:10 Is a 0.70% advisor fee earning its keep?
16:50 The concentrated tech fund with a dazzling record
21:12 A purported $100 million Bitcoin Roth
25:22 Building an inherited-account portfolio
Questions? Comments? Click!
A quarter in the piggy bank has grown into a maze of UTMAs, 529s, custodial Roth IRAs, and the new child investment accounts. Tom and Don sort the options by what the money is actually for—and who keeps control.
The 529 emerges as the flexible favorite, especially with its education uses and limited Roth rollover. Then the conversation turns to concentrated factor ETFs, the familiar Bitcoin argument, and whether private markets are really swallowing public investing.
The through-line is refreshingly simple: match the account to the goal, favor broad diversification, and resist stories that make investing sound more complicated than it needs to be.
00:00 Pshaw, Wordle, and the kid-money maze
03:00 UTMAs and UGMAs: control has an expiration date
05:34 Why 529 plans remain the flexible favorite
09:01 Custodial Roth IRAs and an enormous head start
11:15 New child accounts versus the 529
16:02 MOAT and COWZ: clever ticker, concentrated portfolio
20:48 Bitcoin, volatility, and the meaning of value
26:51 Public markets versus the private-market story
Questions? Comments? Click!
Chasing performance feels like the easiest way to make money—but buying what has already gone up often means arriving late and leaving with less.
In this episode of Talking Real Money, Tom and Don examine the “behavior gap”: the difference between an investment’s return and what investors actually earn after buying high, selling low, and chasing the latest market story. They explain why disciplined diversification and a sensible asset allocation usually beat a portfolio built around hot ideas.
They also answer listener questions about retirement withdrawal order, Roth conversions, reinsurance funds, high investment costs, and whether financial recommendations are influenced by commissions.
00:20 Why buying what’s hot usually means arriving late
01:42 Chasing performance without ever catching it
03:03 How Bitcoin rose while Bitcoin ETF investors lost money
04:58 The costly confusion between “has gone up” and “is going up”
05:53 Morningstar’s “Mind the Gap” research
06:44 AI, chips, and the latest performance-chasing cycle
07:37 Asset allocation versus a collection of hot ideas
09:21 Why trying to beat the market often backfires
10:16 Listener Question: Retirement accounts and withdrawal order
12:29 Taxable, pre-tax, or Roth—which money should come first?
15:35 Listener Question: Do reinsurance funds belong in a portfolio?
16:58 Catastrophe risk, complexity, and nearly 2% in expenses
21:33 Listener Question: Are fund recommendations influenced by compensation?
23:27 Why “trust us” isn’t a convincing financial argument
Questions? Comments? Click!
The episode covers market bubbles, diversification, Social Security timing, and retirMarkets aren’t mysterious—they’re driven by one of the oldest economic principles there is.
In this episode of Talking Real Money, Tom and Don explain why supply and demand can send prices soaring in the short run… and why disciplined investors should usually ignore the excitement.
You’ll also hear practical answers to listener questions about Social Security timing, investment clubs, umbrella insurance, and protecting retirement assets.
00:12 Financial Fysics returns: Rule #2—Supply and Demand
02:04 Tom returns from vacation
03:32 Reviewing Rule #1 before diving into Rule #2
04:10 Why supply and demand mostly affects short-term prices
05:25 The difference between investors and traders
06:18 The dot-com bubble and today’s AI enthusiasm
08:35 Market efficiency, trading volume, and why surprises matter
10:55 Every bubble eventually runs out of buyers
12:35 Listener Question: Delaying Social Security versus investing the money
17:55 Why Social Security decisions are always personal
19:25 Listener Question: Are investment clubs worthwhile?
23:48 Listener Question: IRA protection, lawsuits, and umbrella insurance
30:05 What actually determines umbrella insurance costs
31:42 AI accidentally creates an extremely “chunky” Tom
Questions? Comments? Click!
This week Don tackles seven excellent listener questions covering everything from credit cards and emerging markets to covered-call ETFs, annuities, retirement buckets, and whether investors should worry about new additions to stock indexes.
00:51 Summer surge in listener questions
01:15 LitReading success and thanks
02:01 Are credit cards really evil?
05:09 Emerging markets inside international funds
07:44 Paying kids for chores to fund Roth IRAs
10:58 Covered-call ETFs (JEPI and others)
15:47 Helping a friend avoid an expensive annuity
19:40 Should index investors worry about SpaceX?
21:38 Bucket strategy and retirement portfolios
Questions? Comments? Click!
What exactly is a model portfolio—and should you trust one with your retirement?
Tom and Don explain why professionally designed model portfolios can improve consistency and reduce advisor bias, but also why investors should be wary as firms like Morningstar begin adding private equity, private credit, and other alternative investments to traditional portfolios.
00:12 What is a model portfolio?
02:11 Why advisors should use investment models
03:31 Morningstar’s new private market portfolios
05:20 Liquidity problems with private investments
07:27 The high cost of private equity
08:12 “Persistent inflation” claims examined
10:49 Why Wall Street wants retirement assets
12:23 Listener questions begin
14:17 AUM vs flat-fee vs hourly advisors
21:22 Do ETF expense ratios add together?
23:21 Roth IRA income limits and backdoor strategy
27:44 BrokerageLink inside a 401(k)
31:00 Costco, avocado oil, and gas prices
Questions? Comments? Click!
Can keeping up with financial news actually make you a better investor—or just make you more confident about making bad decisions? Don and Tom dig into research on how markets react to news, why investors tend to overreact to splashy stories and underreact to boring numbers, and whether sophisticated traders can actually exploit those inefficiencies. Then, a caller nearing retirement asks how to build a conservative brokerage account to bridge the years before Social Security. Plus, the guys compare Avantis global ETFs with Vanguard’s Total World Stock ETF, debate the value of factor tilts, and marvel at how quickly investors can pile billions into the latest hot investment idea.
- 00:05 Can financial news make you a better investor?
- 00:52 The illusion of being ahead of the market
- 01:44 Can investors profit from company news?
- 02:42 Are markets really efficient?
- 03:33 What 6.7 million Reuters articles reveal about news
- 04:40 How much financial news is actually predictable?
- 05:06 Why investing based on headlines is a fool’s errand
- 06:18 Bad news, numbers, and investor underreaction
- 07:06 Why investors overreact to ambiguous, high-attention news
- 08:10 Investment strategies that ordinary investors can’t realistically use
- 09:02 Be skeptical of your reaction to splashy news
- 09:36 Big news isn’t always new information
- 10:31 The factor zoo and the cost of complicated investing
- 11:04 Can expensive strategies overcome their fees?
- 12:28 Why diversified investors can mostly ignore the news
- 13:32 Soccer, summer football, and Orlando’s forgotten team
- 14:10 Listener call: Building a retirement bridge account
- 15:00 Retirement plans, Social Security, and a future inheritance
- 16:28 How soon will the retirement money be needed?
- 17:10 Matching asset allocation to short-term spending needs
- 18:04 Using bonds and cash for retirement stability
- 19:28 Is it okay to hold bonds in a taxable brokerage account?
- 20:43 A listener puts Don and Tom on his financial Mount Rushmore
- 22:02 Halloween in Celebration and 1,000 pieces of candy
- 22:46 Why did Avantis launch AVTM?
- 23:58 AVTM versus Vanguard Total World Stock ETF
- 24:06 Why Don and Tom prefer AVGE for a one-fund portfolio
- 25:29 The astonishing rise of a semiconductor ETF
- 26:45 Can VT plus AVGV replicate AVGE?
- 27:06 Why a 20% value tilt may not be enough
- 28:33 Factor investing, expenses, and expected returns
- 29:30 Tom returns from Greece and is ready for calls
Questions? Comments? Click!
Having a child later in life can change far more than your sleep schedule. It can completely rewrite your retirement plan.
Don and Tom explore the financial realities of becoming a parent in your late 40s or 50s, from college savings and life insurance to delayed retirement and the temptation to sacrifice your own financial future for your children. Tom brings some very personal experience to the conversation—and a few stories about being mistaken for his daughter’s grandfather.
Then, a listener asks about a simple three-fund retirement portfolio, international diversification, small-cap value, Roth asset location, and when an aggressive investor should finally consider adding bonds.
Plus, why the best retirement portfolio may be the one that keeps you from doing something stupid during the next bear market.
- 00:12 Old guys, act your age—and other financial lessons
- 01:14 Disagree with Don and Tom? Send in your argument
- 01:57 The financial reality of becoming a parent later in life
- 03:17 Tom became a father at 50
- 04:11 The dangers of grocery shopping with your daughter
- 05:21 Are older parents actually better parents?
- 06:10 How a late child can completely change retirement plans
- 07:28 Why retirement should come before college savings
- 08:48 A $36,000-a-year whole life insurance quote
- 09:08 How long does a parent really need term life insurance?
- 10:42 Fertility costs and the financial price of parenthood
- 11:28 Your retirement must remain the financial priority
- 12:50 Having a child at 50 may mean working until 68
- 13:42 What are you actually going to do in retirement?
- 15:19 Tom reflects on raising his youngest daughter
- 16:02 Don and Tom need more listener questions
- 17:17 Listener portfolio review: FZROX, FZILX, and AVUV
- 18:49 Is 50% U.S., 30% international, and 20% small value reasonable?
- 20:01 Should high-growth assets go in a Roth IRA?
- 20:43 When should an aggressive investor start adding bonds?
- 21:25 Bonds may keep you from doing something stupid
- 22:53 Remembering investor panic after 9/11
- 23:21 How to get a free Talking Real Money portfolio analysis
- 25:16 Why Talking Real Money is different
Questions? Comments? Click!
Money Monday has arrived, and Don kicks off a new weekly series based on his book Financial Fysics. The first “law” may surprise you: according to Don, every dollar ever earned comes from just three sources—luck, theft, or work. He and Tom debate where investing belongs, why entrepreneurship remains one of the best paths to wealth, and how much luck really contributes to financial success.
Then they answer a listener’s retirement planning question about whether to finance a Florida townhouse or withdraw money from a Roth IRA. Along the way they discuss Roth conversion strategy, Florida HOA reserve funds, special assessments, and why building a retirement plan should always come before deciding where the money comes from.
00:00 Welcome to Money Monday
00:12 A new weekly Financial Fysics series begins
01:35 Why anonymous two-star book reviews are so frustrating
02:40 Free Financial Fysics book giveaway
03:50 Rule #1: There are only three ways to make money
04:45 Luck—including investing, lotteries, and inheritance
06:35 Theft, fraud, and unethical financial products
07:55 Why successful investing combines work and luck
10:30 How most great fortunes are actually built
12:10 Entrepreneurship, risk, and creating wealth
13:35 Understanding just how large a trillion dollars really is
15:50 The biggest takeaway from Rule #1
17:15 Preview of next week’s rule: Supply and Demand
18:15 Why listener questions slow down during the summer
19:15 Listener Question: Should a retiree finance a Florida townhouse or withdraw money from a Roth IRA?
21:10 Florida HOA reserves and avoiding expensive surprises
24:30 Why retirement planning comes before choosing an account
26:00 Why the Roth IRA is probably the last account to tap
Questions? Comments? Click!
Tom’s on vacation, but the listener questions are not. In this packed Q&A episode, Don tackles one of the most common retirement dilemmas: if your Social Security and annuity income already cover your expenses, do you still need a traditional emergency fund?
From there, the questions keep coming. Don weighs in on what to do with “lazy money” earning only 3%, whether a MYGA is really a better deal than a CD ladder, how to structure a taxable brokerage account for long-term growth, and where to keep nearly $300,000 set aside for a home purchase in the next two to three years.
He also takes on a thoughtful question about managing a taxable portfolio for elderly in-laws who need additional income for memory care, and wraps up with a step-by-step explanation of how inherited IRA money can potentially be used to fund backdoor Roth contributions.
Along the way, you’ll hear why “guaranteed” doesn’t always mean what insurance companies want you to think it means, why simplicity often beats ETF overengineering, and why liquidity still matters—even in retirement.
0:05 – Intro and why Tom is getting buried in listener questions while on vacation
1:14 – Don thanks listeners and mentions Apple featuring Litreading
1:58 – How to send recorded questions at TalkingRealMoney.com
2:16 – Question 1: Do retired investors still need a six-month emergency fund if Social Security and annuities cover expenses?
3:14 – Why Don still favors stable, liquid emergency money even in retirement
4:30 – Question 2: What should retirees do with “lazy money” that’s earning only about 3%?
5:28 – Don’s preference for CD ladders over MYGAs and why “guaranteed” doesn’t mean risk-free
7:33 – Question 3: How should a high-income investor build a long-term taxable portfolio at Vanguard?
10:03 – Don’s case for simplifying with AVGE or DFAW instead of mixing multiple ETFs
11:24 – Question 4: Is a five-year MYGA better than a five-year CD ladder?
12:01 – Why Don still leans toward CDs despite the higher MYGA yield and tax deferral pitch
14:16 – Question 5: Best place to keep $291,000 earmarked for a home purchase in two to three years
14:46 – Money market vs. high-yield savings vs. CDs vs. BND for short-term house money
17:04 – Question 6: How to structure a $300,000 taxable portfolio for elderly in-laws who need extra monthly income for memory care
18:37 – Why Don would keep lots of liquidity, use only a little equity, and skip muni bonds in a 22% bracket
20:50 – Question 7: Can inherited IRA proceeds be used to fund a backdoor Roth for both spouses?
22:40 – Don’s step-by-step answer, including opening new IRAs and watching out for the pro-rata rule
25:07 – Don plugs The Line Uncrossed and offers a free one-hour advisor meeting
25:42 – Reminder to send questions and be patient while Tom is on vacation
Questions? Comments? Click!
In what may be our last quiz, ever, Tom turns the tables and puts Don in the hot seat with a Wall Street Journal high-school personal finance quiz—covering the Magnificent Seven, Roth IRAs, TIPS, efficient markets, yield curves, market risk, and dollar-cost averaging. Don does reasonably well, but not without protesting a dubious “debt avalanche” question and getting tangled up in a couple of accounting and risk terms. After the quiz-show nonsense, the guys tackle a listener question from Joseph in Pennsylvania: should your stock/bond allocation be based on a fixed percentage of your portfolio, or should it be driven by how many years of spending you want buffered in safer assets? Tom and Don explain why the answer depends on more than just income needs—it also depends on your emotional tolerance for volatility, your need for growth, and the role fixed income plays in helping you stay invested when markets get ugly.
0:22 Tom becomes quizmaster and introduces the Wall Street Journal high-school personal finance quiz
2:12 Question 1: Which stock is not part of the Magnificent Seven?
3:47 Question 2: Which retirement account does not require withdrawals at a certain age?
5:09 Question 3: TIPS, STRIPS, Series I bonds, and inflation-adjusted principal
6:58 Question 4: Debt payoff strategies and the disputed “debt avalanche” answer
9:13 Question 5: Efficient market hypothesis
10:12 Question 6: What an inverted/downward-sloping yield curve says about future rates
11:25 Question 7: Return on equity math and a heavily leveraged company
12:56 Question 8: What it means when net present value equals zero
14:44 Question 9: Why putting your emergency fund in stocks creates market risk
16:52 Question 10: Unsystematic risk versus broad market risk
18:57 Question 11: Dollar-cost averaging
20:06 Tom and Don wrap up the quiz and revisit the “debt avalanche” controversy
21:11 Listener question from Joseph in State College, Pennsylvania
21:34 Should bond allocation be based on a fixed percentage or on years of spending?
22:07 Risk tolerance vs. risk profile: why income needs are only part of the equation
23:26 Why a 5-year spending buffer in safer assets can make sense in retirement
24:13 The emotional role of bonds and fixed income during market declines
Questions? Comments? Click!
Tom and Don tackle one of retirement’s hardest questions: how much can you safely spend from your portfolio without blowing up the rest of your life? They walk through the familiar 4% rule, flexible withdrawal strategies, why a flat 10% withdrawal is usually fantasyland, and why the “right” spending rate depends heavily on your age, timeline, and tolerance for adjusting in bad markets. They also answer a listener question about a 22-year-old’s investment allocation and close with a timely discussion of the latest Social Security trust fund warning, what it actually means, and the only real ways Congress can fix it.
00:12 — How much can you safely spend in retirement? Tom and Don tee up the big question: 4% rule, 5% flexible rule, or something more personalized.
02:08 — Survey shocker: many people think they need 30 years of income saved before retiring comfortably.
03:03 — Longevity math: how long retirement might actually last, and why that matters for withdrawal rates.
04:40 — Can you really withdraw 10% a year? Tom and Don push back on overly aggressive retirement spending assumptions.
05:59 — Why generic withdrawal rules fall apart in real-life retirement planning.
06:25 — Every retiree needs a personalized withdrawal strategy based on their own timeline and circumstances.
07:17 — Retiring at 60 vs. 70: why earlier retirement makes even “safe” withdrawal rates riskier.
09:04 — Why it’s worth having a professional review your retirement withdrawal plan, even if you’ve used calculators.
09:58 — The case for flexible withdrawals: spending more in strong markets and less in weak ones.
10:20 — Three common retirement planning mistakes: not saving enough, not knowing your needed return, and taking the wrong amount of risk.
12:16 — Listener question: a 22-year-old with $28,500 invested wants to know if his allocation makes sense.
13:28 — Breaking down DFAW, VT, and VTI: overlap, diversification, and whether the portfolio is too complicated.
16:21 — The bigger story: a 22-year-old already has a terrific head start on retirement savings.
17:56 — Social Security update: the trust fund could run short in 2032 if nothing changes.
18:37 — The only real ways to fix Social Security: raise taxes, cut benefits, or some combination of both.
19:52 — Why scary Social Security headlines should not automatically push people to file early.
21:22 — One possible fix: raising or removing the payroll tax cap.
23:27 — The demographic problem under Social Security: too few workers supporting too many retirees.
Questions? Comments? Click!
As parents age, money can get more complicated—bill paying, account access, healthcare decisions, investment management, and eventually the possibility that someone else may need to step in. In this episode, Don and Tom walk through how families can start that conversation before a crisis hits. They cover when to begin talking, what adult children should know about accounts and spending, why durable powers of attorney need to be checked with custodians in advance, and the importance of reviewing wills, beneficiaries, and backup decision-makers. They also talk about the emotional side of these transitions, including independence, trust, and the danger of children projecting their own investing preferences—or financial self-interest—onto aging parents.
Then they answer two listener questions: one about whether it’s time to fire an evasive advisor charging 1% plus expensive funds, and another about alternative career paths in financial planning beyond the traditional CFP route.
0:05 – Intro: the hard conversation families need to have about aging and money
1:00 – When parents—or you—reach the point where financial help may be needed
1:56 – Tom’s family experience and the challenge of stepping in gracefully
3:17 – Why families should talk early about money, spending, and where accounts are held
5:24 – Account access, passwords, and why digital organization matters more than ever
7:38 – Durable power of attorney: why you need one and why custodians should review it in advance
9:01 – Backups for everything: POAs, wills, beneficiaries, and successor decision-makers
10:02 – Why adult children should meet their parents’ financial advisor before a crisis
11:07 – When a trusted advisor can help if parents don’t want children directly involved
11:28 – How to approach the conversation as an adult child without expecting instant control
12:28 – Don’t project your own investing style onto your parents’ retirement portfolio
13:28 – The uncomfortable reality of greed and inheritance influencing family decisions
13:40 – Why this belongs at the top of the planning checklist for older families
14:07 – How to send your own questions to Talking Real Money
14:58 – Listener question: Is it time to fire a wealth manager who won’t answer basic questions?
17:15 – Don and Tom’s verdict on an advisor charging 1% while dodging accountability
18:48 – Listener question: Are there good financial-planning career paths besides becoming a CFP?
20:41 – The regulatory reality of giving investment advice for a fee
22:32 – Relationship roles, planning roles, and the growing specialization inside advisory firms
Questions? Comments? Click!
Don and Tom take on the latest crypto hype cycle, arguing that Bitcoin remains speculation—not a reliable store of wealth—and that putting crypto inside retirement accounts is especially dangerous. They discuss a new self-directed IRA crypto platform, the risks of private equity and alternative assets in retirement plans, and why “get rich quickly” pitches should set off alarm bells.
Then they answer two listener questions. First, Mark from Ohio asks how to prepare a retirement portfolio for a likely market downturn and how withdrawals and rebalancing should work once retirement begins. Later, Doug from Utah asks whether market-linked CDs make sense compared with Treasuries and whether the “no downside” promise is worth the tradeoffs. Don and Tom explain why they dislike market-linked CDs, how bank brokers get paid to sell them, and why simpler fixed-income tools often make more sense.
They wrap up with a warning about growing bank-related scam tactics and a publishing scam Don has been seeing aimed at authors.
0:05 – Intro: one-star Bitcoin review and why crypto losses are hard to ignore
1:16 – Bitcoin’s drop, crypto volatility, and retirement-account crypto pitches
2:42 – Self-directed IRAs, IRA Financial, and the “get rich quick” problem
5:27 – Why crypto, private equity, and alternative assets can be dangerous in retirement plans
6:58 – Why most people bought Bitcoin: speculation, not currency utility
10:29 – Hot money shifts: crypto, gold, semiconductors, and chasing momentum
12:20 – Don’s bottom line on crypto as speculation vs. wealth storage
13:16 – Listener question from Mark: preparing for a market downturn before retirement
15:32 – Is an 80/20-ish portfolio too aggressive with retirement four years away?
17:13 – Bonds vs. cash/CDs: what fixed income should do near retirement
18:56 – Withdrawal strategy during a downturn and how rebalancing fits in
20:46 – Listener question from Doug: market-linked CDs vs. Treasuries
23:47 – Why Don and Tom dislike market-linked CDs
26:42 – The danger of taking investment advice from a bank salesperson
29:18 – Building Treasury and CD ladders through a brokerage instead
31:23 – Banks training tellers to spot scam victims before money is lost
34:04 – Don’s author scam warning: fake book clubs and fake promotional offers
Questions? Comments? Click!
Don and Tom take apart a clickbait Kiplinger piece touting the “five top buy-and-hold investments to manage market volatility,” arguing that the list is a random grab-bag of recent winners rather than a coherent portfolio. They explain why the suggested mix—VOO, VXUS, a healthcare sector ETF, Apple stock, and gold—does little to reduce volatility and instead layers on concentration risk, sector bets, and performance chasing. From there, they broaden the discussion into a more useful question: where should investors actually go for trustworthy information, how should listeners think about evaluating a financial advisor, and what really matters when judging portfolio design. The back half of the episode features a thoughtful call about investing a spendthrift trust for two sons over a 12-year horizon, plus a warning that advisor performance can’t be measured by returns alone without understanding risk, asset allocation, and the planning services being delivered.
0:05 Cold open, podcast intros, and Tom’s ever-growing aircraft museum
1:40 Don tees up a Kiplinger clickbait article on the “five top buy-and-hold investments” for market volatility
2:14 Why the article’s opening about political uncertainty and inflation could apply to almost any year
3:36 The one part they agree with: long-term wealth is built by disciplined exposure to quality assets, not reacting to headlines
4:53 The rise of numbered clickbait headlines and whether numbers in titles actually matter
5:53 Why “stability” and “stock picks” don’t belong in the same sentence
6:27 Kiplinger pick #1: VOO — fine as a broad U.S. stock fund, but hardly a volatility solution
7:06 Kiplinger pick #2: VXUS — the one recommendation they think mostly holds up
8:21 Kiplinger pick #3: XLV healthcare ETF — a sector bet masquerading as a defensive holding
9:33 Why a healthcare sector fund lags a total-world approach while adding unnecessary concentration
10:28 Kiplinger pick #4: Apple stock — and why adding a single stock you already own inside the S&P 500 makes little sense
10:59 The problem with betting on one company instead of owning the economy through broad diversification
12:20 Kiplinger pick #5: gold — and why recent gains don’t make it a volatility manager
12:48 Gold’s long-term history, lack of fundamentals, and why its recent performance actually illustrates volatility rather than reducing it
14:12 The bigger issue: how do you decide which financial publications or sources are worth trusting?
15:26 Why Vanguard and Dimensional research tend to be more reliable than headline-driven finance content
16:35 The real reason people click these articles: fear, underperformance anxiety, and the urge to “improve” a portfolio
17:23 Why the Kiplinger portfolio is missing the one thing you’d expect in a true volatility-management portfolio: bonds
18:51 Don and Tom’s plea to listeners: follow evidence-based advice rather than clickbait lists
19:30 Listener call from Brian in Bremerton about investing spendthrift trusts for his sons over a 12-year horizon
20:55 The challenge: balancing growth with the possibility of distributions for education, cars, weddings, or a house
23:08 Don’s suggested framework: keep a cash/fixed-income reserve for near-term needs and invest the rest aggressively for growth
24:48 Why a target-date fund may not be the best fit for this kind of trust structure
25:37 A practical allocation idea: roughly 80/20 with a global equity fund plus a broad bond fund
26:51 Brian explains that Roth IRA funding is already part of the family’s gifting and estate strategy
27:32 A listener from Seoul praises the show and begs them not to turn into a “humblebrag retirement call-in show”
29:49 Listener question: how do you measure whether your financial advisor is performing well?
30:42 Why advisor performance should not be judged by returns alone
32:11 The importance of understanding what services you’re actually paying for: planning, rebalancing, tax guidance, income strategy, and more
33:11 What to examine in a portfolio besides returns: risk level, asset allocation, and whether key asset classes are missing
34:11 Why even benchmark comparisons can be misleading if the portfolio isn’t properly diversified
35:18 The better question: is your advisor delivering the services and portfolio design you actually need?
Questions? Comments? Click!
Can Tom beat the average American on a personal finance quiz?
Don puts Tom in the hot seat with eight questions drawn from a financial literacy quiz developed by researchers at Stanford University and TIAA. The topics range from earning, budgeting, inflation, investing, debt, insurance, and risk to evaluating investment advice. Along the way, there’s plenty of good-natured ribbing, a debate over compounding, and a reminder that even financial professionals can stumble on carefully worded questions.
Later, the guys answer listener questions about whether the small-cap value premium still exists despite the rise of private equity, and whether exotic portfolios like the “Golden Butterfly” really deserve their impressive back-tested reputations.
Plus, Tom gives an enthusiastic endorsement of Don’s Civil War novel, The Line Uncrossed.
00:18 – Tom faces an eight-question financial literacy quiz
03:49 – Inflation versus savings: the trickiest question
05:53 – Why diversification beats owning a single stock
07:11 – The power—and danger—of compound interest
08:50 – Insurance coverage young adults actually need
09:52 – Expected value and lottery math
11:10 – Appropriate investments for different ages
12:40 – Why compounding may be the most important concept in investing
13:39 – Which asset classes have historically produced the highest returns?
16:03 – Does the small-cap value premium still exist?
23:01 – Should investors trust the Golden Butterfly portfolio?
26:45 – Tom’s review of The Line Uncrossed
29:17 – Free meetings with Appella advisors
31:11 – Blue shirts, blue eyes, and wrapping up
Questions? Comments? Click!
Don and Tom tackle the blurry line between free speech and market manipulation after the conviction of prominent short seller Andrew Left. They debate whether financial influencers should be allowed to profit from public stock recommendations, discuss why members of Congress continue trading individual stocks despite widespread public opposition, and explain why ordinary investors should avoid trying to outsmart people with superior information or influence.
The conversation then shifts into listener questions covering Roth employer matches, Roth IRA withdrawal rules, Roth conversion strategies for retirees, and whether paying taxes now simply to benefit heirs makes financial sense. Along the way, there’s plenty of lighthearted banter about soccer, politics, podcast reviews, and Don’s growing passion for his Litreading short story podcast.
00:05 – Introduction and Independence Day reflections
01:27 – Andrew Left convicted of stock market manipulation
03:24 – Is market manipulation protected free speech?
06:56 – Why Don opposes congressional stock trading
09:18 – Congress made over 13,000 stock trades in 2025
12:29 – Why public officials should be held to a higher standard
14:12 – The lesson for ordinary investors: you can’t beat insiders
15:27 – Podcast reviews, politics, and avoiding crypto
17:12 – Florida’s proposed property tax amendment
18:22 – Transition to listener questions
19:38 – Employer Roth 401(k) matching contributions
20:10 – Can you withdraw Roth IRA money before age 59½?
21:49 – Should retirees convert large IRAs to Roth accounts?
24:52 – Soccer, World Cup talk, and the “laws” of the game
26:44 – Don promotes Litreading and Short Storyverses
Questions? Comments? Click!
Are you keeping too much money in cash because you’re waiting for the “right time” to invest? In this episode, Tom and Don explain why market timing has historically been one of the costliest investing mistakes—and why even the worstinvestment timing has dramatically outperformed sitting on the sidelines.
They also answer listener questions about immediate annuities, I Bonds, portfolio allocation, sequence-of-returns risk, and why using whole life insurance as an investing strategy is a bad idea.
00:05 – Why so much money is sitting in cash
03:21 – Americans hold over $20 trillion in cash-like accounts
05:08 – The enormous cost of waiting to invest
07:27 – Morningstar’s “Mind the Gap” study and investor behavior
10:41 – Cash is trash (except when it isn’t)
11:41 – How to earn more on your bank savings
15:55 – Should immediate annuities count as bonds in your portfolio?
17:23 – I Bonds vs. TIPS and inflation protection
19:50 – Is 20% cash too much in retirement?
20:43 – Whole life insurance for sequence-of-returns risk?
22:28 – Why the advisor’s recommendation raises red flags
23:39 – The real way to manage sequence risk in retirement
Questions? Comments? Click!
This week’s Friday Q&A is packed with six listener questions covering some of the biggest financial decisions people face before and during retirement. Topics include whether actively managed bond funds are worth the extra cost, how the new senior tax deduction may affect Roth conversions, whether a 24-year-old should keep a whole life insurance policy, financial planning before marriage, the role of mid-cap funds, and whether it’s worth abandoning a target-date fund before retirement. If you’ve ever wondered whether you’re making your portfolio more complicated than it needs to be, this episode is for you.
00:00 Welcome and Fourth of July schedule update
02:21 Active vs. passive bond funds: Avantis, Dimensional, or BND?
05:00 Using the new senior deduction to reduce Roth conversion taxes
08:01 Does a 24-year-old need whole life insurance?
10:35 Money conversations every engaged couple should have
15:53 Are mid-cap funds worth owning?
17:52 Should you leave a target-date fund before retirement?
23:37 How to submit your own questions
Questions? Comments? Click!
Why do so many retirees struggle to spend money they’ve spent decades saving? Don and Tom explore the psychology behind retirement spending, including the fear of running out of money, the reluctance to touch principal, and how guaranteed income sources like Social Security, pensions, and even simple immediate annuities can make retirees more comfortable enjoying their wealth. They discuss practical strategies for creating spending confidence, the importance of comprehensive retirement planning, and why delaying meaningful experiences can be riskier than spending. The episode also answers a listener question about setting up a Roth IRA for a teenager and examines the latest uncertainty surrounding 529-to-Roth transfers.
0:05 Introduction: Why retirees struggle to spend money they can afford to spend
1:36 Fear of running out versus fear of missing out in retirement
2:52 Why even millionaires worry about spending their savings
3:51 The saver mentality and the challenge of switching to spending mode
4:47 Research shows many retirees barely touch their nest eggs
5:29 YOLO, aging, and the reality of declining mobility later in life
6:02 Why retirees prefer spending Social Security, dividends, and interest over principal
8:04 Travel, aging, and the danger of postponing experiences
8:49 Creating confidence through retirement planning
9:56 Using Social Security and RMDs to cover essential expenses
10:12 Flexible withdrawal strategies for retirement spending
11:39 Could a simple immediate annuity help retirees spend more confidently?
12:42 Healthcare costs, aging, and changing spending patterns
13:30 Recency bias and how it distorts retirement decisions
14:48 Why lifelong savers have trouble becoming spenders
16:27 Summer slowdown and a request for more listener questions
17:58 Listener question: Setting up a Roth IRA for a 19-year-old daughter
19:16 Evaluating Avantis ETFs and M1 Finance for a young investor
19:48 Why a single-fund solution may be better for small accounts
20:56 The importance of emerging markets exposure
22:40 Understanding 529-to-Roth IRA transfer rules
24:33 The unanswered question of beneficiary changes and the 15-year rule
Questions? Comments? Click!
Tom welcomes legendary investor educator and longtime friend Paul Merriman for a wide-ranging conversation about the evolution of indexing, the proposed changes to the S&P 500, and why investors should understand both the strengths and limitations of traditional index funds. Paul explains why firms like Dimensional Fund Advisors and Avantis Investors use a more flexible, evidence-based approach than traditional indexing and discusses how academic research has reshaped portfolio construction over the past several decades.
The discussion also explores lessons from market history, including the importance of understanding major bear markets, determining appropriate risk levels, and building portfolios that align with personal goals rather than chasing maximum returns. Paul shares insights from the latest Dimensional Matrix Book and explains why he believes studying 100 years of market data helps investors stay disciplined during inevitable downturns.
Finally, Paul introduces a simple but powerful strategy for helping newborns and young children build substantial retirement wealth through small annual investments that can compound over many decades.
Timestamps
0:11 Special guest Paul Merriman joins Talking Real Money
0:55 Long friendship and investing partnership between Tom and Paul
1:20 S&P 500 rule changes and earlier inclusion of major IPOs like SpaceX
2:07 Historical examples of S&P 500 additions and omissions
2:35 Microsoft’s delayed entry into the S&P 500
2:56 NVIDIA replacing Enron in 2001
3:29 How index rule changes can affect future returns and volatility
4:08 Why indexing remains the preferred strategy for most investors
5:16 Traditional versus non-traditional index funds
6:37 How Avantis and Dimensional incorporate factors beyond company size
8:05 Why factor-based investing differs from traditional indexing
9:02 Problems with rigid index reconstitution schedules
10:16 Momentum, flexibility, and portfolio management advantages
11:22 Introduction to Dimensional’s annual Matrix Book
11:53 Using market history rather than forecasts to guide investing decisions
13:09 Lessons from past bubbles, crashes, and lost decades
14:20 Why Paul trusts academic research more than Wall Street forecasts
15:14 The case for small-cap value investing
15:49 Clarifying Paul’s allocation to small companies
16:53 Investing for heirs, charities, and future generations
18:10 Remembering investor panic during the 2008 financial crisis
19:18 Determining an appropriate risk level for retirement portfolios
20:43 Different investor goals: beating the market, maximizing returns, or minimizing risk
21:28 Peace of mind versus maximum growth
21:55 Helping young people build retirement wealth early
22:54 The $365-per-year retirement funding concept
24:09 Final thoughts and appreciation between Tom and Paul
Questions? Comments? Click!
Tom welcomes consumer advocate and longtime journalist Herb Weisbaum to discuss the surprisingly expensive and increasingly chaotic summer travel season. Herb explains why airfare and travel costs remain elevated, why airline prices may not fall even if fuel costs eventually decline, and how travelers can save money through flexibility, airline perks, and smart planning. The conversation also explores travel insurance, airline schedule cuts, baggage fees, vacation-rental scams, fake airline customer-service numbers, and the importance of using credit cards rather than debit cards for travel purchases. The episode is packed with practical consumer-protection advice for anyone traveling this summer.
0:05 Introduction to consumer advocate Herb Weisbaum and the challenges facing travelers this summer.
0:55 Airfare surge: domestic fares up roughly 18% year over year and international fares up about 8%.
1:23 Why airline ticket prices may stay high even if fuel costs eventually decline.
2:38 Airline executives signal that fare increases could become permanent if demand remains strong.
3:10 Strong travel demand despite higher prices and the impact of reduced low-cost competition.
3:42 Concerns about consumers financing vacations with credit cards and buy-now-pay-later programs.
4:36 Strategies travelers can use to reduce costs despite rising fares.
4:58 Rising checked baggage fees and how airline credit cards or elite status can help avoid them.
5:42 The value of flexible travel dates and considering less-crowded destinations.
6:30 Why booking trips sooner rather than later may be advantageous.
7:04 Travel insurance considerations, including “cancel for any reason” coverage.
7:39 Basic travel insurance limitations and war-related exclusions.
8:03 Airlines reducing schedules and eliminating routes because of fuel and operational pressures.
8:42 International carriers cutting thousands of flights and what it means for travelers.
9:24 Why this may be the most unpredictable travel season since the pandemic.
10:02 Practical advice for travelers facing uncertainty and disruptions.
10:18 The importance of airline apps for rebooking and managing travel disruptions.
10:42 Growing scams involving fake airline customer-service phone numbers appearing in search results.
11:46 A simple clue that a customer-service number may actually be a scammer.
12:19 Credit cards versus debit cards for travel purchases and fraud protection.
13:57 Why wire transfers, cryptocurrency payments, and peer-to-peer apps create major consumer risks.
14:58 Vacation rental scams involving major booking platforms.
16:25 A real-world family reunion rental scam and the challenges of obtaining refunds.
18:03 Differences between how major vacation-rental platforms handle payments and disputes.
18:59 World Cup travel, ticket scams, and avoiding fraudulent offers.
20:50 Why major events create ideal conditions for scammers.
21:46 Herb shares where listeners can find his articles, podcast, and consumer resources.
Questions? Comments? Click!
Tom welcomes back advisor Roxy Butner for a wide-ranging discussion that begins with practical financial advice for new graduates and quickly expands into questions from listeners about student loans, emergency funds, retirement savings, portfolio construction, mortgages in retirement, and the coming frenzy around a potential SpaceX IPO. Along the way, they explore the tradeoffs between debt repayment and investing, the role of small-cap value tilts in diversified portfolios, why taxes matter when funding a major purchase from an IRA, and how investors should think about highly publicized investment opportunities.
0:05 – Roxy Butner returns to the show by popular demand as Tom welcomes her back for a summer discussion of listener questions and financial topics.
0:57 – Graduation season prompts a conversation about money advice for new graduates and young adults starting their financial lives.
1:23 – Tom references recommendations from financial journalist Jill Schlesinger, including the importance of tracking spending before creating any financial plan.
2:05 – Why understanding cash flow is the foundation of every financial decision, from debt repayment to investing.
2:31 – The surprising statistic that roughly 60% of college graduates leave school with student loan debt and why understanding loan terms matters.
3:30 – Roxy explains how graduates should evaluate student loan repayment versus investing based on cash flow and interest rates.
4:11 – Building an emergency fund and why high-yield savings accounts remain a preferred location for short-term reserves.
4:23 – Retirement savings for young workers, including the importance of capturing employer matches and establishing savings habits early.
5:39 – Why freezing your credit can be a simple and effective defense against identity theft and fraud.
6:43 – Listener question from Del Rio, Texas: Is AVGE enough small-cap value exposure for investors who follow factor-based investing principles?
7:38 – Comparing AVGE’s built-in factor tilts with the heavier small-cap value allocations often recommended by Paul Merriman.
8:32 – The long-term historical outperformance of U.S. small-cap value stocks and the tradeoff of accepting greater volatility.
9:33 – Why Avantis intentionally chooses moderate factor tilts rather than aggressive small-cap allocations.
10:25 – Roxy discusses risk-adjusted returns and the dangers of assuming that higher expected returns automatically justify larger allocations.
11:37 – The appeal of simplicity and why a one-fund portfolio like AVGE can help investors avoid behavioral mistakes.
12:31 – Listener question from Kansas City: Should retirees withdraw $1 million from an IRA to pay cash for a new home or take a mortgage?
13:00 – A retired couple with a $4.2 million net worth faces a decision between a large IRA withdrawal and a mortgage at roughly 6.3%.
14:14 – Why a massive IRA withdrawal could trigger substantial taxes and reduce portfolio flexibility.
14:41 – Tom explains the difference between evaluating cash flow needs and preserving overall net worth.
16:03 – The importance of maintaining liquidity in retirement and avoiding excessive concentration of wealth in a personal residence.
16:41 – Roxy proposes a compromise strategy: take the mortgage now and gradually make larger payments using carefully managed annual IRA withdrawals.
18:05 – A brief discussion about lake homes, neighboring properties, and the appeal of having family nearby.
18:42 – Tom asks Roxy about investor excitement surrounding a possible SpaceX IPO and whether investors should participate.
19:32 – Why investors may already gain exposure through index funds and retirement plans without purchasing shares directly.
20:38 – IPO investing as speculation, the role of familiarity bias, and why investors should be cautious about concentrated bets.
21:57 – How major IPOs eventually enter market indexes and become part of broadly diversified portfolios.
22:02 – Summer plans, weddings, Seattle sunshine, and a lighter closing conversation.
23:19 – How listeners can submit questions or schedule a free portfolio review through TalkingRealMoney.com.
Questions? Comments? Click!
Don and Tom take on one of investors’ biggest blind spots: focusing on tiny costs while ignoring the factors that have a far greater impact on long-term wealth. Using a recent Jason Zweig article as a springboard, they explain how taxes can reduce stock market returns far more than the difference between low-cost fund expense ratios. The discussion covers tax-efficient investing, asset location, ETFs versus mutual funds, dividend taxation, capital gains, and why investors should pay more attention to portfolio design than chasing the lowest possible expense ratio. They also dissect a highly tax-inefficient YieldMax fund tied to MicroStrategy and Bitcoin, illustrating how taxes and poor fund structure can devastate returns. Listener questions cover Morningstar’s acquisition of CRSP indexes and whether it threatens Vanguard investors, plus whether a retiree working part-time can contribute earned income to a Roth IRA.
0:05 Big-picture investing versus obsessing over tiny details
0:39 Why fund expense ratios matter less than most investors think
2:06 Jason Zweig’s research on taxes reducing long-term market returns
3:20 How taxes often outweigh fund expense differences
4:06 Qualified dividends versus ordinary income taxation
5:03 Why investors should pay attention to after-tax returns
5:40 YieldMax funds and the hidden cost of tax inefficiency
7:19 The dangers of exotic income-focused ETFs
7:48 Why ETFs can be more tax-efficient than mutual funds
9:15 Tax knowledge as a critical investing skill
10:30 Asset location: where stocks and bonds belong
11:20 The YieldMax MicroStrategy fund and Bitcoin losses
11:58 The truly important parts of financial planning
13:15 Listener question from Longmont, Colorado
14:17 Morningstar, CRSP indexes, and Vanguard concerns
16:00 Why market-cap indexes are unlikely to be manipulated
17:16 Morningstar ratings and conflicts of interest discussion
17:58 Thoughts on the military-industrial complex
19:23 UFL football, soccer, and sports tangents
20:47 Listener question about Roth IRA contributions from part-time work
21:30 Filing thresholds and earned income requirements for Roth IRAs
23:21 Listener questions, voice submissions, and website tools
24:08 AI voices and synthetic Don McDonald
25:59 Romper Room memories and closing banter
Questions? Comments? Click!
NOTE: This episode was accidentally uploaded as yesterday's podcast. To make the information match, the correct podcast for 6/16 has been uploaded in yesterday's place. If you heard this episode yesterday, please check out the newest episode in the June 16th podcast preceding this one. Sorry for the error.
Don and Tom take on the latest attempt to reinvent retirement investing: the claim that retirees should hold 90% stocks and just 10% bonds. They explain why focusing on recent stock returns ignores both history and human behavior, discuss the role bonds play in managing risk and retirement income, and remind listeners that successful investing is about meeting your goals—not maximizing returns at any cost. They also answer a listener question about claiming Social Security early versus waiting until age 70 and revisit the importance of maintaining exposure to emerging markets despite their volatility.
0:12 The newest retirement “better mousetrap”: 90% stocks, 10% bonds
1:48 Bob Pozen’s argument for aggressive retirement portfolios
3:01 Why 10-year return data can be misleading
4:16 The psychology of large portfolio losses
5:42 Bonds are not stocks: understanding the difference
7:37 How fixed income supports retirement withdrawals
8:22 Why retirees should know their actual asset allocation
10:04 Taking only the risk you need to take
12:25 Remembering how investors felt in 2000, 2008, and 2022
13:33 Using the Talking Real Money risk quiz
14:27 Summer request for listener questions
15:31 Listener Scott asks about claiming Social Security early
17:07 Why delaying Social Security can still make sense
18:32 The value of Social Security’s guaranteed increase
20:11 Risks of assuming stock market returns will cooperate
21:55 Why contrarian retirement advice attracts attention
22:25 The overlooked role of emerging markets
23:50 Why emerging markets belong in diversified portfolios
24:30 The risks and rewards of global diversification
Questions? Comments? Click!
Should retirees live off dividends and bond interest, or use a total return strategy? Don and Tom tackle one of the most persistent myths in retirement investing: that dividend-paying stocks create safer retirement income. They explain why dividends are not “free money,” how dividend-focused portfolios can create hidden risks, and why most academic research favors a diversified total return approach. The conversation explores dividend traps, covered-call income funds, sustainable withdrawal strategies, and the importance of diversification. They also respond to a listener defending Robinhood’s platform, debate gamification in investing, and discuss Philadelphia’s new automatic retirement savings program designed to help workers without employer-sponsored plans.
0:05 Introduction: Dividend income vs. total return investing
1:44 Why retirees are attracted to dividend-focused portfolios
2:19 What a total return strategy actually means
3:37 The appeal of predictable dividend income
4:55 High-yield ETFs and the risks behind the payouts
5:03 Why dividends are not free money
6:10 Larry Swedroe’s argument: dividends are not income
6:27 Understanding the dividend trap
7:05 Extreme dividend yield example: GMEX Robotics
8:35 YieldMax and triple-digit yields
9:44 Why academics favor total return strategies
10:48 Rebalancing as an income source in retirement
11:43 The hidden risks of income-focused products
13:30 Bridge-playing and retirement banter
14:21 How listeners can submit questions
15:12 Listener question: Is Robinhood getting unfair criticism?
16:13 Robinhood, gamification, and investor behavior
18:18 Why “stodgy” may be good for money management
19:53 Philadelphia’s new retirement savings initiative
20:45 Automatic enrollment and retirement success
22:30 Why saving must be made easy
23:28 Free portfolio reviews at Appella
24:21 Discussion of The Line Uncrossed
26:47 Family history and future book possibilities
Questions? Comments? Click!
Don takes listeners on a journey through nearly four decades of investment advice, explaining how his thinking evolved from recommending active mutual funds in the 1980s to embracing index funds, factor investing, and eventually ETFs. Along the way, he and Tom discuss Vanguard’s rise, Don’s early relationship with Paul Merriman, the emergence of Dimensional Fund Advisors and Avantis, and why their recommendations have changed over time. They also address listener skepticism about fund recommendations, compare Avantis and Vanguard products, answer a tax-efficient portfolio rebalancing question from a retired couple, and debunk a marketing pitch for “layered income portfolios.”
0:08 Don shares the story of his early days giving investment advice from Leadville, Colorado
2:56 The active management era and why great fund managers were once considered essential
3:52 Vanguard’s early growth and the gradual acceptance of index investing
5:38 Don discusses Vanguard sponsoring his radio show and maintaining disclosure transparency
6:55 Paul Merriman introduces factor investing and Fama-French research
9:10 Early Dimensional Fund Advisors portfolios and advisor-only access
10:56 The rise of ETFs, Dimensional’s hesitation, and Avantis’ origins
11:23 The 2010 ETF flash crash and why Tom and Don were initially cautious
13:29 Why factor investing remains compelling despite uncertain future returns
14:20 Addressing listener skepticism about Avantis recommendations
16:07 Comparing AVUV and Vanguard VBR small-cap value funds
17:44 Comparing AVGE and Vanguard VT global equity funds
19:15 Clarifying compensation, conflicts of interest, and transparency
21:27 Listener Anton asks about tax-efficient portfolio rebalancing in retirement
26:03 Why holding bonds inside IRAs can improve tax efficiency
27:23 Discussion of Roth conversion strategies and tax considerations
30:20 Listener asks about “Layered Income Portfolios”
31:05 Why income portfolio marketing pitches are often more sales than substance
Questions? Comments? Click!
Don answers a diverse collection of listener questions covering Roth conversions, indexed annuities, emergency fund management, TSP contributions, inherited money, and portfolio construction. He delivers a forceful warning about indexed annuities and commission-driven insurance sales after one listener considers using an annuity bonus to offset Roth conversion taxes. Other questions explore whether short-term bond funds belong inside a Roth IRA, how much attention investors should pay to taxes, investing a potential $200,000 windfall, Roth versus traditional TSP contributions, and Paul Merriman’s popular Two-Fund for Life strategy. Along the way, Don shares his appreciation for readers of The Line Uncrossed and reminds listeners how to submit questions through the new Talking Real Money website.
0:05 Summer question slowdown, Friday Q&A format, and submitting questions through the new website
1:41 Listener asks about using an indexed annuity bonus to help fund a Roth conversion
3:14 Why indexed annuities are often misleading and how insurance commissions create conflicts
5:01 The risks of moving an entire retirement portfolio to cash at retirement
6:30 Why a comprehensive fiduciary financial plan may be essential for this listener
8:16 Question about holding VFSTX as part of an emergency fund strategy
10:36 Why taxes are often a minor concern compared with investment allocation
11:03 Why a short-term bond fund may not belong inside a 42-year-old’s Roth IRA
12:17 Balancing growth, risk tolerance, and liquidity needs
13:22 TSP lifecycle funds, Roth contributions, and planning for a possible $200,000 windfall
15:03 Separating travel money from long-term investment assets
16:09 Paul Merriman’s Two-Fund for Life strategy
17:38 The role of small-cap value funds alongside target-date funds
18:13 Fama-French factor investing and the tradeoff between simplicity and optimization
19:15 Closing thoughts on listener questions and participation
20:26 What makes a fiduciary advisor different from a commissioned salesperson
21:13 Update on The Line Uncrossed and request for listener reviews
Questions? Comments? Click!
Don and Tom tackle rising bond yields and the anxiety they create for investors, explaining why higher bond yields mean lower bond prices and why recent moves in long-term Treasury rates have sparked comparisons to the period before the 2008 financial crisis. They discuss inflation fears, interest rate policy, and why investors should be cautious about reading too much into bond market movements as predictors of future stock returns. The conversation reinforces the role of bonds as portfolio stabilizers rather than return generators, particularly for retirees. They also answer a listener question about covered-call ETFs, explaining how option premiums create income, why the strategy isn’t “magic money,” and the tradeoffs between yield, complexity, and risk. The episode closes with a correction involving Robert Wagner and Robert Conrad and a humorous detour into reverse-mortgage celebrity spokespeople.
0:05 Bond investing versus “bondage” and why bonds are suddenly making headlines
1:07 Rising Treasury yields and concerns about the bond market
2:30 Why investors compare today’s bond yields to conditions before 2008
3:00 Bond prices, bond yields, and the inverse relationship between them
3:51 Inflation fears, energy prices, and their impact on bonds
5:50 Global bond market pressures and rising yields in Britain
7:06 Federal Reserve rate expectations and inflation control
7:51 Lessons from the bond market collapse of 2022
8:36 Can bond market activity predict future recessions or market declines?
10:06 Why geopolitical events often fail as market-timing signals
10:31 Why own bonds when long-term returns have been disappointing?
11:03 The role of bonds in diversification and retirement portfolios
12:06 Using bonds as a spending reserve during stock market declines
13:07 Listener question: How covered-call ETFs generate income
14:18 Covered-call basics and selling options against stocks
17:26 Risks, costs, and limitations of covered-call strategies
19:38 Evaluating JEPI and the tradeoff between yield and volatility
21:22 Listener correction: Robert Wagner versus Robert Conrad
24:01 Reverse-mortgage spokespeople and celebrity rankings
25:34 Why making a top-five list may be life’s greatest achievement
Questions? Comments? Click!
Don and Tom examine the coming wave of blockbuster IPOs, including rumored offerings from SpaceX, Anthropic, and OpenAI, and explain why investor excitement often leads to disappointing results. Drawing on research from Dimensional Fund Advisors and examples such as Uber, Facebook, and Groupon, they discuss the historical underperformance of IPOs and the dangers of buying into hype. They then answer a listener’s question about assets-under-management fees, explaining the broader planning, tax, behavioral, and retirement services provided by fiduciary advisors beyond portfolio construction. The episode concludes with a look at the growing number of highly speculative ETFs, including UFO-themed and meme-stock funds, and a warning that investors should focus on diversification and discipline rather than chasing the latest financial product.
0:05 Summer IPO mania: SpaceX, Anthropic, OpenAI, and the hype machine
1:24 SpaceX’s massive valuation and why investors are excited
3:05 Anthropic and OpenAI join the trillion-dollar IPO conversation
4:29 Comparing today’s IPO wave to the dot-com boom
5:09 Why hot IPOs are usually a bad investment
6:27 Dimensional research on IPO underperformance and liquidity concerns
7:51 Uber, Facebook, Groupon, and other IPO cautionary tales
8:50 Why even great companies can be poor investments at the wrong price
9:45 Why disciplined firms delay adding IPOs to portfolios
10:59 How to submit questions to Talking Real Money
13:17 Listener question: Is a 1% AUM fee really worth it?
15:20 What advisors actually do beyond portfolio management
16:44 Vanguard’s research on advisor value
17:12 Why large portfolios shouldn’t pay a flat 1% on all assets
18:24 The emotional and behavioral benefits of professional advice
20:29 How advisors help investors stay diversified
21:45 The explosion of bizarre new ETFs
22:49 UFO ETFs, meme-stock funds, and speculative product launches
25:05 Why investors should be skeptical of niche ETFs and high fees
Questions? Comments? Click!
Don and Tom explore the difference between smart risk and dumb risk in investing, sparked by new survey data showing younger investors increasingly believe they must take big risks to achieve their financial goals. They discuss the rise in stock trading, options speculation, and meme-stock behavior, contrasting those activities with evidence-based risks such as broad stock market investing, factor tilts, and maintaining efficient use of cash. They also answer a listener question from a recently retired investor concerned about market valuations and inflation, discussing small-value tilts, bond allocations, and the role of TIPS. Along the way, they wander into Roman and Han Dynasty history, retirement boredom, Don’s Civil War novel, podcast economics, and the launch of the newly redesigned Talking Real Money website.
0:05 Podcasting economics, removing ads, and the realities of making money from podcasts
2:34 Why investors believe they need to take bigger risks to reach financial goals
4:26 The growth of indexing and the shift away from active investing
4:59 FINRA survey shows younger investors embracing options and speculative trading
6:25 Smart risk versus dumb risk and why experience changes risk perception
7:04 Options, IPOs, hot stocks, crypto, and other forms of speculative risk
8:07 Research on options trading success rates and why most traders lose money
8:48 Individual stocks, market timing, and sector bets that historically have not paid off
10:47 Risks that may be worth taking, including all-stock portfolios for younger investors
11:22 The long-term case for owning the global economy through diversified stock funds
11:55 Small-cap, value, profitability, and momentum factor tilts
12:37 The hidden cost of idle cash and improving returns through better cash management
13:42 Why inflation is guaranteed to beat most traditional bank savings accounts
14:59 Roman and Han Dynasty history and what it says about long-term economic growth
15:42 The new Talking Real Money website and easier ways to submit questions
17:34 Listener question from a 58-year-old retiree using a Boglehead four-fund portfolio
19:15 Whether adding a small-value tilt makes sense in retirement
20:41 Thoughts on bond funds, TIPS, and inflation protection
22:02 Short-term Treasury ETFs versus high-yield savings accounts
23:11 Avoiding emotional reactions to market valuations
24:03 Retirement longevity risk and planning for a potentially decades-long retirement
24:52 Don discusses researching and writing The Line Uncrossed
27:32 Meet-an-Advisor invitation and how the free portfolio review process works
Questions? Comments? Click!
Don and Tom question whether the investment industry—and increasingly Vanguard—keeps creating new products simply to stay relevant rather than solve real investor problems. They critique Vanguard’s new Target Retirement Lifetime Income Fund, which combines a target-date fund with an annuity, arguing that it sacrifices liquidity, introduces inflation risk, and obscures costs. They also take aim at Vanguard’s new Active/Passive Model Portfolio Series, suggesting it adds unnecessary complexity and market-timing assumptions to what should be a straightforward indexing approach. Listener questions cover the risks of holding 72% of retirement assets in an ESOP and whether a military family should replace a simple Schwab index-fund portfolio for their two-year-old daughter with AVGE. The episode closes with a plug for The Line Uncrossed and a discussion of the real-life Civil War experiences that inspired the novel.
0:12 Do investors really need new products and new ideas?
2:11 Vanguard’s Target Retirement Lifetime Income Fund and annuities in target-date funds
4:29 Liquidity, inflation risk, and the tradeoffs of guaranteed retirement income
7:44 Why immediate annuities often take years just to return your own principal
9:16 Morningstar’s skepticism of guaranteed-income retirement products
10:46 Vanguard’s new Dynamic Active Passive Model Portfolio Series
12:42 Are active/passive hybrid portfolios solving a real problem?
13:38 Has Vanguard lost its indexing compass?
15:30 New Talking Real Money website features and submitting listener questions
16:12 ESOP question: 72% of retirement assets tied to employer stock
17:59 The dangers of concentrated company-stock positions
21:29 Understanding ESOP returns versus traditional investments
24:09 Why diversification matters more than past ESOP performance
26:49 Using GI Bill benefits, a 529 plan, and a UTMA to fund a child’s future
28:27 AVGE versus a simple total-market index portfolio for a young child
29:42 Why simplicity may be good enough for long-term investing success
30:35 Discussion of The Line Uncrossed and its Civil War inspiration
31:41 John B. Anderson, Andersonville Prison, and the history behind the book
Questions? Comments? Click!
Don records through a booming Florida thunderstorm while tackling five listener questions. He discusses a thoughtful strategy for using a UTMA account to teach investing and potentially fund a future Roth IRA, then provides a detailed overview of what goes into a true financial plan, including cash flow analysis, insurance, estate planning, tax strategy, retirement projections, and investment management. Another listener asks about investing for a long life, prompting Don to explain why maintaining a diversified portfolio and spending less than portfolio growth are the keys to retirement sustainability. He also addresses when retirees might safely move from a 4% withdrawal rate toward 5%, emphasizing flexibility over rigid rules. The episode concludes with a discussion of HSAs, explaining why they are often better spent during retirement rather than left to non-spousal heirs, who may face less favorable tax treatment.
0:04 Florida thunderstorm opening and update on the new podcast website and question system
2:35 Using a UTMA account as a teaching tool, harvesting gains for a child, and eventually funding a Roth IRA
4:47 What a comprehensive financial plan actually includes beyond investments
6:14 Gathering financial data, setting goals, cash flow analysis, and risk management
7:42 Asset allocation, diversification, Monte Carlo simulations, and behavioral coaching
8:28 Retirement planning, Social Security timing, Roth conversions, RMDs, and tax strategies
10:23 Listener crediting the show for retirement confidence and asking about investing for longevity
12:37 Why spending less than portfolio growth is the key to long-term retirement success
14:15 Whether a 4% withdrawal rule can become 5% later in retirement
15:45 Fixed versus flexible withdrawal strategies and how age affects sustainable spending
17:49 HSA withdrawal decisions in retirement and inheritance considerations
19:31 Why HSAs generally should be spent rather than preserved for non-spousal heirs
20:52 Meet-an-Advisor invitation and how portfolio reviews can uncover hidden risks
Questions? Comments? Click!
Don and Tom tackle investors’ obsession with inflation protection and the financial industry’s willingness to sell expensive products that promise impossible outcomes. Using PIMCO’s Inflation Response Multi-Asset Fund as a case study, they explain why complex, high-cost inflation hedges often create more problems than they solve. The discussion explores historical inflation, why stocks remain the most effective long-term defense against rising prices, and the dangers of chasing investment magic. Listener questions cover retirement asset allocation at age 50, the role of bonds as retirement approaches, balancing Roth and traditional retirement contributions in a high-tax state, and the surprisingly small impact of foreign tax credits on international fund returns.
0:05 Why investors constantly search for inflation-proof portfolios
2:09 Historical inflation, Fed targets, and perspective on rising prices
5:47 The endless appeal of inflation hedges
6:15 Breaking down PIMCO’s Inflation Response Multi-Asset Fund
8:09 Why TIPS, commodities, and leverage aren’t magic solutions
10:57 Stocks as the best long-term inflation defense
12:39 Listener question: Moving from 100% stocks toward retirement
14:15 Risk tolerance versus age-based allocation formulas
15:58 Building a bond allocation before retirement
17:26 Small-cap value and international diversification considerations
19:24 Roth versus traditional 401(k) contributions in New York
21:44 The value of tax diversification and multiple retirement account types
23:13 Countries that operate without personal income taxes
24:19 Understanding foreign tax credits and international funds
27:58 Why tiny tax differences shouldn’t drive investment decisions
28:14 Celebrating 1,900 Talking Real Money podcast episodes
29:09 An advisor shares how the podcast helps her growing practice
30:26 Working with a fiduciary advisor at Appella
Questions? Comments? Click!
Most Americans are far less prepared for retirement than many assume. Don and Tom discuss new Federal Reserve data showing that only about half of Americans have retirement accounts, the median retirement balance is just $200,000, and only a tiny percentage of retirees have more than $1 million saved. They explain why starting early, saving consistently, and avoiding speculative investing matter far more than chasing hot stocks or market trends. The episode also covers Social Security misconceptions, the challenges of retiring on limited income, concerns about Schwab’s Teen Investor Account, and the importance of teaching young people disciplined long-term investing habits.
0:11 How many Americans actually have enough saved for retirement?
2:08 Federal Reserve data on retirement account ownership
3:18 The surprisingly low median retirement balance
4:47 Why advisors chase million-dollar clients
5:07 Income, education, and retirement savings disparities
7:06 Homeownership and wealth accumulation
8:25 The importance of simply getting started
9:41 Why Fidelity says it takes roughly 27 years to reach $1 million
10:56 Saving versus investing and the dangers of speculation
12:03 Leaving retirement money alone during market and life crises
14:08 Bellevue, Nebraska caller asks about Social Security earnings limits
15:11 Social Security taxation and claiming considerations
16:32 Discussion of Edward Jones and advisor relationships
19:29 Can a 76-year-old buy a home with $400 monthly payments?
21:44 Schwab Teen Investor Account review
22:39 Why Don dislikes stock-picking education for teenagers
25:12 How custodians profit from trading activity
26:35 Better ways to teach young people about investing
27:31 Free advisor meetings and listener resources
Questions? Comments? Click!
Don and Tom tackle a Wall Street Journal financial decision-making quiz that explores how to prioritize competing goals such as retirement savings, high-interest debt, mortgages, and student loans. The discussion highlights the importance of employer matching contributions, the damaging impact of credit card debt, and the reality that many financial decisions depend on individual circumstances and risk tolerance. They then answer listener questions about retirement portfolio allocation, Fisher Investments’ sales tactics and fees, stock ownership concentration among wealthy Americans, and whether a federal retiree should consolidate TSP assets into a Vanguard IRA. The episode emphasizes building a financial plan before making allocation changes, avoiding market predictions, and simplifying finances where possible.
0:00 Wall Street Journal financial decision-making quiz begins
1:23 Prioritizing 401(k) matches versus high-interest debt
4:31 When to pay down credit cards instead of investing more
5:20 Borrowing from a 401(k) to eliminate 22% credit card debt
6:07 Mortgage payoff versus other debt reduction strategies
7:55 Mortgage prepayment versus additional retirement savings
9:35 Building a hierarchy for financial priorities
11:07 Listener Bob asks about retirement readiness and portfolio allocation
13:02 Fisher Investments’ fees, sales tactics, and active management claims
16:15 Why retirement planning should come before allocation decisions
19:40 Stock ownership concentration among the wealthiest Americans
22:03 Why markets are not a zero-sum game
23:51 Will retiring Baby Boomers hurt stock prices?
25:52 Listener asks about consolidating TSP and Vanguard retirement accounts
29:18 Comparing Vanguard and TSP target-date fund allocations
31:57 Benefits of simplifying and consolidating retirement accounts
35:06 Don discusses sales and distribution of The Line Uncrossed
Questions? Comments? Click!
Don and Tom tackle some of the most common retirement planning mistakes, with a particular focus on taxes and the danger of becoming overly obsessed with them. They discuss taxable Social Security benefits, the importance of diversifying across account types, Roth conversion considerations, tax-loss harvesting, and why most retirement decisions ultimately fall into the category of “it depends.” They also answer a listener question about navigating poor 403(b) plan options and the advantages of a 457 plan for educators. Finally, they dive deep into a thoughtful challenge from a listener regarding Avantis and Dimensional factor funds versus traditional Vanguard index funds, examining the evidence for factor tilts, the role of risk premiums, costs, and whether higher expected returns justify modestly higher expense ratios.
0:05 Retirement planning mistakes, taxes, retirement income, financial independence, retirement readiness
1:58 Tax obsession, retirement taxes, income planning, financial priorities, wealth management
2:43 Social Security taxation, taxable benefits, retirement income, Social Security myths, tax planning
5:14 Tax diversification, traditional 401(k), Roth accounts, brokerage accounts, retirement savings
7:57 Roth IRA, young investors, compound growth, retirement investing, tax-free income
9:11 Tax-loss harvesting, brokerage accounts, capital gains, tax strategy, investment management
10:03 Roth conversions, Medicare IRMAA, retirement taxes, financial planning, tax efficiency
12:03 Inherited IRAs, heirs, estate planning, retirement accounts, legacy planning
13:35 403(b) plans, 457 plans, retirement savings, school employees, listener question
15:29 403(b) Wise, 457B Wiser, educator retirement plans, high fees, retirement options
18:35 Roth IRA investing, small-cap funds, emerging markets, diversification, asset allocation
19:38 Avantis funds, Dimensional funds, Vanguard funds, factor investing, index investing
23:55 Fama-French research, small-value premium, indexing, active management, factor premiums
26:08 Rules-based investing, passive investing, factor tilts, portfolio construction, diversification
27:02 Small-cap value investing, fund performance, index comparisons, advisor value, investment returns
30:25 International small value, emerging markets, factor premiums, diversification, expected returns
32:55 Academic investing research, Nobel Prize economics, risk premiums, value investing, factor investing
35:18 Portfolio construction, asset allocation, diversification, retirement planning, investment strategy
36:16 Free portfolio review, financial advice, portfolio allocation, retirement readiness, fiduciary planning
Questions? Comments? Click!
Don celebrates the continued success of the Friday Q&A format and the encouraging first week of sales for his novel The Line Uncrossed, including a strong Kirkus review, before tackling a series of listener questions centered on retirement income and fixed income investing. He explains how his combination of cash reserves, a CD ladder, and bond funds supports a disciplined withdrawal strategy, discusses why diversified bond funds like BND still play an important role in reducing portfolio volatility, rejects the idea that Social Security and pension income should be counted as bond allocations within an investment portfolio, argues against the concept of a reverse glide path that increases stock exposure later in retirement, and shares lessons learned from decades of entrepreneurship about balancing investments in a business versus the market. Throughout the episode, he emphasizes diversification, discipline, investor behavior, and the importance of managing volatility rather than chasing returns.
0:05 Why listener questions remain Don’s favorite part of talk radio after 40+ years
1:16 Friday Q&A episodes continue to be the most downloaded shows each week
1:50 Easier ways to submit questions through the redesigned Talking Real Money website
2:42 First-week sales update on The Line Uncrossed and reader support
3:21 Positive Kirkus review and details on the ebook bundle
4:48 How Don uses cash, bond funds, and a CD ladder during retirement
8:00 Why BND and total bond market funds remain useful fixed income tools
11:22 Should Social Security and pensions count as bonds in your allocation?
14:26 Why Don believes reverse glide paths are a bad retirement strategy
17:34 Investing in your own business versus investing in the market
21:23 Why compliance reviews delay listener questions from airing
Questions? Comments? Click!
This episode of Talking Real Money examines why financial advice so often turns into emotional debate instead of productive problem-solving. Don and Tom discuss how investors routinely underestimate spending, cling emotionally to employer stock, and defend strategies like dividend chasing, covered calls, crypto, or gold despite decades of evidence favoring diversified investing. They answer a listener question about aggressively paying down a 6.625% adjustable-rate mortgage versus maintaining liquidity, warn about commissioned advisors circling employees receiving RSU payouts, and correct a previous mistake regarding Roth employer matches under Secure 2.0 legislation. Along the way, the hosts mix humor, blunt honesty, and personal stories about why changing financial behavior is far harder than simply explaining the math.
0:05 Are listeners looking for advice, validation, or just an argument?
0:58 “Two old white guys waiting to die on a podcast” and why changing investor behavior is so difficult
1:24 Basis points complaints and arguing over financial terminology
2:21 Why financial planning conversations often become debates
3:16 Most people underestimate how much they actually spend
4:04 Net income minus savings equals spending, whether you admit it or not
4:59 Growing up arguing in big families and learning debate skills early
5:53 Emotional attachment to employer stock and concentration risk
6:19 Microsoft, Enron, Washington Mutual, and the danger of loyalty investing
7:02 Why many individual stocks underperform for long stretches
7:42 Covered calls, dividend strategies, and belief in “secret” investing systems
8:16 Why Don and Tom remain skeptical of crypto, gold, and speculative investing
9:16 Their investing philosophy comes from peer-reviewed academic research, not hunches
10:17 If you call for portfolio help, don’t expect automatic validation
11:23 Listener Jim asks whether to aggressively pay down his adjustable-rate mortgage
12:17 Extra principal payments versus saving cash to pay off the mortgage later
13:12 Why a 6.625% mortgage changes the payoff math
14:35 Liquidity concerns versus the emotional appeal of being debt-free
15:06 Mortgage recasting explained and reducing future interest costs
17:39 Regret over not refinancing during ultra-low-rate years
18:10 Why peace of mind sometimes outweighs financial optimization
18:50 “Paper argues badly” and the transition into listener emails
18:59 RSU sharks circling a listener with a large restricted stock payout
19:48 Wealth managers aggressively targeting employees cashing out company stock
20:47 Warning signs of commissioned annuity sales disguised as “help”
21:48 Why concentrated company stock remains risky even after huge gains
22:24 Recalling the advisor who openly admitted to a 10% annuity commission
22:41 Retirement quiz follow-up and correcting a Roth 401(k) mistake
23:01 Secure 2.0 technically allows Roth employer matches in 401(k)s
24:09 Why most employers still don’t offer Roth matching contributions
24:36 Tax uncertainty and the value of maintaining both Roth and pre-tax accounts
25:33 Tom admits he occasionally tells players when he missed a call as a referee
26:05 Encouraging listeners to argue, ask questions, and engage with the show
27:02 Offering free portfolio consultations without annuity sales pressure
27:39 Joking about becoming annuity salesmen after all these years
Questions? Comments? Click!
Tom and Don dismantle the myth of “free money” from high-dividend stocks and ETFs, explaining why chasing yield often leads to poor diversification, lower total returns, and disappointing long-term performance. Using examples like Campbell’s, Kraft Heinz, and Whirlpool, they show how dividend-paying companies can still destroy shareholder value while the broader market marches higher. The episode also features listener questions on military retirement planning with a pension-heavy income stream, asset allocation and Roth contributions near retirement, how to structure a UC retirement portfolio using low-cost index funds and small-cap value tilts, and the smartest way to generate retirement withdrawals from a balanced portfolio. Along the way, Don plugs his new Civil War novel The Line Uncrossed and the hosts revisit some old radio history.
0:05 Dividend investing myths and “free money” thinking
2:18 Why retirees are drawn to dividend stocks and ETFs
4:03 Huge inflows into high-dividend ETFs despite lower expected returns
5:19 Total return vs. income investing explained
5:45 Campbell’s Soup and Kraft Heinz as dividend trap examples
7:06 Whirlpool cuts long-running dividend after financial strain
8:10 Why total return matters more than yield
9:10 Vanguard Dividend Growth vs. S&P 500 performance comparison
10:44 The dangers of concentrated dividend strategies
12:19 Why “magic income” strategies usually disappoint
13:32 Military retirement caller asks about pensions, Roths, and mortgage payoff
17:43 Using pensions as bond-like income in portfolio allocation
18:41 Caller shifts from U.S.-only investing toward global diversification
20:28 Don discusses The Line Uncrossed and companion Civil War stories
22:30 UC employee asks about AVGE/DFAW vs. ultra-cheap UC index fund
24:39 Suggested mix using low-cost index fund plus small-cap value tilts
26:04 Listener thanks Don for decades of investing guidance
27:58 Retirement withdrawal strategies from a 60/40 portfolio
29:19 Rebalancing as the primary source of retirement cash flow
30:14 Why retirement distribution planning matters
32:35 Fiduciary advice vs. product sales pitches
33:54 Friendly rivalry with Stacking Benjamins
Questions? Comments? Click!
Tom and Don tackle the impossible task of spotting market bubbles in real time, leaning on insights from Jason Zweigand Eugene Fama to argue that if bubbles were truly predictable, they wouldn’t exist. They discuss soaring semiconductor and AI-related stocks, speculative manias from tulips to SPACs to Bitcoin, and why diversification and disciplined rebalancing beat emotional market timing every time. Listener questions cover tax-loss harvesting and wash sales involving VT, VTI, and VXUS ETFs, family conversations about money, Roth conversion strategy for a wealthy near-retiree, and Dimensional’s refusal to chase hot IPOs despite the S&P 500’s changing rules. Along the way, there’s plenty of classic TRM banter about giant brains, vacation boredom, and the dangers of trying to outsmart markets that are probably smarter than all of us combined.
0:05 Bubble noises, market mania, and why everyone thinks they can spot bubbles
1:11 Jason Zweig on semiconductor stocks soaring nearly 40% in a month
2:23 Emerging markets, small value, and global stocks compared to AI-driven speculation
3:39 Eugene Fama explains why bubbles are impossible to identify in real time
4:26 Dot-coms, Bitcoin, SPACs, and the legendary tulip bulb bubble
5:03 Why “doing nothing” often beats reacting emotionally to market fears
5:51 Jason Zweig’s sign of a bubble: when critics get attacked instead of debated
7:15 Rebalancing, diversification, and why the S&P 500 alone isn’t enough
9:41 Listener question on tax-loss harvesting, wash sales, and replacing VT with VTI and VXUS
14:05 Why families should talk openly about money instead of outsourcing financial education to TikTok
17:44 Near-retiree with $7.3 million asks about Roth conversions and paying taxes from IRAs
20:36 Dimensional responds to S&P rule changes allowing earlier IPO inclusion
21:15 Why Dimensional avoids IPOs during their first year after going public
22:39 Allbirds’ collapse from a $2.2 billion IPO to a $39 million sale
24:47 Why waiting before buying IPOs may reduce risk
Questions? Comments? Click!
Don opens the show with a deeply personal announcement: the release of his first novel, The Line Uncrossed, inspired by the life of his great-great-grandfather, a teenage Union soldier captured at Chickamauga and imprisoned at Andersonville. After sharing the journey behind the book, the episode shifts into listener Q&A covering the limited diversification benefits of international bond funds, skepticism toward direct indexing for retirees with taxable accounts, concerns about high-yield student loan investment schemes like Yrefy, ethical and practical issues surrounding Medicaid asset-protection trusts, and the surprising usefulness of adult-funded 529 plans as a backup Roth-style savings vehicle.
0:05 Don announces the release of The Line Uncrossed and shares the personal Civil War inspiration behind the novel
2:50 Q&A begins with a question about international bond funds like Vanguard Total International Bond ETF versus domestic-only bonds
6:11 Direct indexing in a taxable account: why the tax benefits may be overstated for retirees slowly averaging in
8:13 Skepticism about Yrefy and high-yield private student loan investing
10:52 Medicaid asset-protection trusts, ethical concerns, and simplifying investments for heirs
16:28 Using adult-funded 529 plans as a long-term tax-advantaged savings strategy with Roth rollover potential
Questions? Comments? Click!
Don and Tom take on the uncomfortable reality that even supposedly “rules-based” index investing is starting to look suspiciously active, as major indexes like the S&P 500 consider bending long-standing rules to admit massive IPOs like SpaceX earlier than before. They explain why changing index rules matters more than most investors realize, debate whether index committees are chasing performance to stay competitive with the QQQ, and argue that broad global diversification may be safer than relying on any single benchmark. Listener questions cover retirement-saving strategies for LLC owners, how highly compensated employees can work around 401(k) discrimination limits, the pros and cons of backdoor Roth strategies, and why taxable brokerage accounts are often more tax-efficient than people assume. The episode wraps with skepticism about proposed “Trump IRA” retirement plans that don’t actually exist yet, plus the usual blend of sarcasm, practical advice, and mild exasperation with modern finance.
0:05 Rules-based investing versus changing the rules mid-game
0:50 Why podcasting is safer than television for Don and Tom
1:40 How index funds are supposed to work
2:27 Why the S&P 500 wants SpaceX and giant IPOs
3:01 IPO hype, pricing games, and the original S&P waiting rule
4:05 Fear that indexes are drifting into active management
5:01 Why investors wrongly assume the S&P 500 is “automatic”
6:24 Explaining stock float and why liquidity matters
8:07 QQQ and S&P changing IPO admission rules
9:10 Why changing index rules should concern investors
10:08 The explosion of specialized stock indexes
11:33 Why owning the whole global market may be safer
12:27 How Dimensional and Avantis differ from traditional indexes
14:04 How listeners can submit questions to the show
15:06 Retirement options for an LLC owner taking only dividends
16:57 IRS concerns about treating a business like a hobby
18:52 Highly compensated employee struggles with 401(k) testing
20:42 Using a rollover IRA to reopen backdoor Roth opportunities
21:58 Why taxable brokerage accounts are underrated
22:33 Tax-efficient ETF investing and retirement flexibility
23:14 Questions about the proposed “Trump IRA” plan
24:35 Why investors should ignore retirement proposals that don’t yet exist
25:58 Congress, air conditioning, and why Washington never leaves town
26:48 Podcast rankings and chasing Stack & Benjamins
Questions? Comments? Click!
Don and Tom unload on sensationalized financial journalism, taking aim at recent articles claiming the 4% withdrawal rule and classic 60/40 portfolios are “failing” retirees. They argue that the media increasingly prioritizes fear-driven headlines over practical investing wisdom, pushing emotionally charged narratives that ignore investor behavior and long-term historical returns. The duo also push back against claims that target-date funds could wipe out retirees, explaining why diversified portfolios remain far less risky than headlines suggest. Listener questions cover Robinhood’s controversial 2% transfer bonus, SEC transaction fees on ETF sales, Roth IRA liquidity concerns, rebalancing discipline, and the dangers of emotionally reacting to politics and markets. Along the way, Don discusses the release of his Civil War novel The Line Uncrossed, while Tom manages to squeeze in Morse code, Rasputin, and model bomber references for absolutely no good reason whatsoever.
0:05 Don and Tom rant about the collapse of quality financial journalism
1:43 Criticism of Money.com article attacking the 4% rule and 60/40 portfolios
2:44 Morningstar’s 3.7% withdrawal study versus the traditional 4% rule
4:21 Why “100% stocks beats 60/40” ignores investor psychology and risk tolerance
5:03 Emotional pain, market crashes, and why most investors cannot handle full equity exposure
6:02 Financial media sensationalism and clickbait retirement headlines
7:32 Seattle Times article warning target-date funds could destroy retiree savings
8:35 Critique of claims that target-date funds are dangerously risky at retirement
9:41 Discussion of Vanguard 2025 target-date allocation and global diversification
12:00 Why diversified global portfolios are far less risky than fearmongers suggest
13:16 Media outrage, sensationalism, and why Talking Real Money avoids scare tactics
14:48 Listener comment about Don’s books appearing on Amazon
15:15 Reality check on book royalties and publishing economics
15:49 Discussion of Don’s Civil War novel The Line Uncrossed
17:19 Book pricing, Kindle strategy, and avoiding Amazon exclusivity
18:41 Transition to listener questions
19:10 Caller asks about Robinhood’s 2% IRA transfer bonus and possible tax issues
20:10 Why IRA transfers and Robinhood bonuses are generally not taxable
21:05 Concerns about Robinhood’s gamified investing culture versus Vanguard’s philosophy
22:03 Risks of getting lured into speculative products after transferring assets
22:59 Caller explains working with a fee-only fiduciary advisor and self-managing investments
24:48 SEC transaction fees on ETF sales explained
25:47 Why the SEC fee is effectively meaningless for ordinary investors
26:15 Listener question about moving Roth IRA money to CDs due to market fears
29:10 Why emotionally reacting to politics and market fears can hurt long-term investing
31:17 Importance of maintaining an appropriate long-term asset allocation
31:41 Tom jokes nervously about a meeting with HR
Questions? Comments? Click!
Tom and Don explore whether artificial intelligence is truly ready to replace financial advisors, sparked by a recent Wall Street Journal experiment using ChatGPT to build a long-term investment portfolio. They break down the AI-generated recommendations, highlighting both the surprisingly sensible use of low-cost index funds and the concerning inconsistencies, recency bias, and lack of academic factor tilts. Along the way, they discuss whether AI gives investors what they need or simply what they want, the future of fiduciary advice, and why human judgment still matters. Listener questions cover retirement planning basics, the foreign tax credit on international ETFs, cash “bucket” strategies in retirement, and why banks paying 0.01% on savings accounts still somehow get away with it.
0:05 AI threatens financial advice jobs and why Don is oddly relieved to be old
1:15 Product placement, affiliate marketing, and favorite AI assistants
2:06 Wall Street Journal test of ChatGPT as a financial advisor
3:24 AI portfolio recommendations: 80/20 allocation breakdown
5:13 Concerns about cash, REITs, and taxable account inefficiencies
6:16 Lack of value and small-cap tilts in AI-generated portfolios
7:10 Same prompt produces different AI portfolio recommendations
8:44 MIT professor says AI investing isn’t “ready for prime time”
9:50 AI personalization and the danger of confirmation bias
11:09 Why AI is at least favoring low-cost indexing over active management
12:14 How listeners can submit questions to the show
12:51 Listener question: What actually goes into a financial plan?
14:27 Retirement income planning basics and fixed income sources
15:17 Using portfolios, home equity, and withdrawal strategies in retirement
16:03 Estate planning, insurance, healthcare, and lifestyle considerations
17:01 Why purpose and meaning matter in retirement planning
19:17 Younger generations avoiding phone calls
20:02 Foreign tax credits with VXUS, VT, AVGE, and AVGV
22:33 How little foreign tax credits usually matter in practice
23:36 Apple fandom, Cupertino, and Don’s dead Apple TV dilemma
25:35 Listener question about cash buckets and retirement withdrawals
26:14 How much “safe money” retirees should keep available
27:19 Why excessive cash drags long-term portfolio performance
29:13 Bank savings accounts paying 0.01% APY
31:17 Free fiduciary advisor meetings through TalkingRealMoney.com
32:33 Tom’s advancing age and the race to catch Stacking Benjamins
Questions? Comments? Click!
Tom and Don tackle one of retirement planning’s most misunderstood tools: reverse mortgages. Using the analogy of “selling your house in slow motion,” they explain how modern HECM reverse mortgages work, why they’ve become more regulated and potentially more useful, and why they may deserve consideration for retirees who are house-rich but cash-poor. The duo breaks down the real costs, the cash-flow benefits of eliminating a mortgage payment, and the tradeoffs between preserving home equity and improving retirement security. Listener questions cover the differences between money market funds and bond funds like Vanguard Total Bond Market ETF, ETF versus mutual fund fees, and another spirited debate over Bitcoin and whether it truly has intrinsic value.
0:05 “Money in slow motion” and the reverse mortgage analogy
1:48 Why reverse mortgages still have a terrible reputation
2:33 America’s massive home equity and retirement savings comparison
4:34 Celebrity reverse mortgage spokespeople and the “wild west” era
6:11 How modern HECM reverse mortgages actually work
7:14 Reverse mortgage costs, fees, and borrowing limits by age
9:06 Real-world example of accessing equity from a million-dollar home
10:25 Why reverse mortgages still feel like a last resort
11:13 The biggest hidden benefit: eliminating mortgage payments
12:17 The compounding impact of reverse mortgage interest
13:24 Shockingly low retirement savings statistics in America
15:10 Would Tom or Don personally use a reverse mortgage?
17:05 Listener question: money market funds vs. bond funds
21:10 ETF versus mutual fund fees and whether ETFs are worth it
25:10 Listener pushes back on Don and Tom’s Bitcoin skepticism
26:58 Military testimony, blockchain hype, and Bitcoin promotion
30:39 Final thoughts on crypto evangelism and speculative investing
Questions? Comments? Click!
Don opens this Friday Q&A episode with a personal reflection on finally releasing his historical fiction novel The Line Uncrossed, inspired by his great-great-grandfather’s imprisonment at Andersonville during the Civil War. Listener questions then cover the wisdom (or insanity) of converting millions from a traditional IRA to a Roth all at once, the evolving role of “538” savings accounts, why covered calls and options strategies often disappoint despite sounding clever, skepticism over the show’s repeated praise of Avantis and Dimensional funds, and the surprisingly massive dollar amounts collected in ETF management fees. Throughout, Don leans hard into skepticism, simplicity, evidence-based investing, and the dangers of overcomplicating portfolios or tax planning.
0:05 Friday Q&A tradition and how listeners submit spoken questions
1:28 Don talks about releasing The Line Uncrossed next week
2:22 Andersonville inspiration and writing historical fiction
3:29 Listener asks about converting $4.1M traditional IRA to Roth to avoid RMDs
5:55 Why a massive one-time Roth conversion could be financially disastrous
7:17 RMD misconceptions and the need for professional tax planning
8:13 Discussion of proposed “538” accounts and Roth conversion possibilities
10:40 Listener asks about covered calls, selling puts, and options strategies
12:06 Why buying options is gambling and covered calls eventually fail
13:28 The illusion of downside protection with covered calls
14:58 Skeptic questions repeated mentions of Avantis and Dimensional funds
17:31 Don explains factor investing, Fama/French research, and fee tradeoffs
20:30 Why TRM recommends Avantis and Dimensional despite higher costs
20:38 Don responds directly to accusations of compensation or sponsorship
21:47 Listener shocked by millions paid in ETF management fees
22:26 What ETF management fees actually pay for behind the scenes
23:27 Why large ETF operations require huge staffs and compliance teams
24:33 Final call for listener questions and advisor meetings
Questions? Comments? Click!
Don and Tom explore one of retirement’s biggest emotional and financial questions: where should you actually live once work winds down? They discuss the hidden realities behind “low-tax” retirement states, including insurance costs, healthcare expenses, weather extremes, and the importance of family and community. The episode also features listener questions on retirement cash management, why annuities often create more problems than solutions, retirement savings strategies for LLC owners, and the ultra-wealthy “buy, borrow, die” strategy using securities-backed lines of credit.
0:05 Retirement dreams and deciding where to live
1:49 The myth of “low-tax” retirement states
3:18 Washington taxes, Jeff Bezos, and Wyoming winters
4:27 Florida’s hidden costs and brutal summers
6:04 Insurance shocks, pension taxes, and state tax surprises
8:04 Property taxes, sales taxes, and healthcare costs
10:12 Why family and community matter more than taxes
11:38 Florida thunderstorms and surviving the humidity
12:40 Comparing total living costs before relocating
13:52 Aging in place and the rising demand for one-story homes
15:34 Listener question: What to do with $192,000 sitting in checking
18:52 Why liquid savings may beat annuities near retirement
22:15 Delaying 401(k) withdrawals and retirement flexibility
24:47 LLC profits and retirement contribution limitations
28:06 “Buy, borrow, die” and securities-backed lines of credit
33:19 The risks of borrowing against investments
34:05 Free fiduciary advice versus commissioned sales pitches
Questions? Comments? Click!
Don and Tom take aim at the booming annuity industry, arguing that most annuities are sold through fear, confusion, and unrealistic promises rather than honest financial planning. They explain why indexed annuities are especially problematic, why annuities should be viewed strictly as income tools rather than investments, and how even “good” annuities often return your own money back to you first. The episode also covers smarter retirement income strategies, including maximizing Social Security benefits, plus listener questions on “Trump accounts” and youth retirement accounts, taxable investing with DFAW vs. VT, factor investing, and whether U.S. government bonds remain safe despite soaring national debt. Along the way, the hosts detour into a spirited discussion about Pacific Northwest town pronunciations and Sacagawea.
0:14 Why annuities are booming as baby boomers retire
0:38 The illusion of “market returns with no risk”
2:11 How annuities are actually sold through fear and seminars
3:22 Why annuities should be viewed as income products, not investments
4:17 Immediate vs. deferred vs. variable vs. indexed annuities
5:03 Indexed annuities and the “no risk, stock market returns” pitch
5:36 What people really want from annuities: guaranteed income
6:17 Liquidity, guarantees, and the hidden costs of annuities
6:50 Why single premium immediate annuities can disappoint
7:29 How SPIAs often return your own principal first
8:03 Inflation riders, survivor benefits, and reduced payouts
9:13 Longevity fears and unrealistic retirement assumptions
9:47 Social Security as the best inflation-adjusted annuity most people underuse
10:13 How to submit questions to Talking Real Money
10:45 Listener question: “Trump accounts” and YRAs explained
11:57 Why YRAs are not especially tax-advantaged
12:40 529 plans vs. youth retirement accounts
14:25 Listener question: DFAW vs. VT in taxable accounts
15:47 Foreign tax credits and overthinking portfolio optimization
16:17 Factor investing, Dimensional, Avantis, and small value tilts
17:38 Listener question: Are U.S. bonds safe with $39 trillion in debt?
18:31 Why U.S. Treasury bonds remain highly secure
19:10 Who actually owns most U.S. government debt
20:36 The origin and pronunciation battle over Sedro-Woolley
21:33 Lewis and Clark, Sacagawea, and Pacific Northwest pronunciations
Questions? Comments? Click!
Don and Tom tackle the strange psychology of politics and investing, exploring how Republicans and Democrats consistently perceive the economy and markets differently depending on who occupies the White House. Drawing on research from Spencer Jakab, the University of Michigan, and Dimensional Fund Advisors, they argue that long-term market performance has historically shown little correlation to presidential party affiliation, despite investors’ emotional reactions. The episode also features a thoughtful listener discussion about pensions in public safety careers, including the hidden risks of not paying into Social Security and the limitations of pensions as wealth-building tools. Additional listener questions cover Vanguard target-date fund combinations and the drawbacks of holding a costly variable annuity inside an IRA. The show wraps with commentary on pay-to-play podcast awards, Don’s surprisingly modest Amazon book ranking triumph, and updates on his upcoming Civil War novel The Line Uncrossed which has been pre-released for podcast listeners in an exclusive ebook bonus package at donmcdonald.com
0:05 Politics, perception, and the “presidential puzzle”
2:26 Partisan views on the economy and stock market
3:51 Why presidents have limited long-term market impact
6:03 Emotions, investing, and politically themed ETFs
8:18 Why asset allocation matters more than politics
8:51 Performance of the MAGA ETF vs. expectations
10:51 Listener question: pensions, Social Security, and public safety careers
15:11 The importance of supplemental retirement savings alongside pensions
16:38 Why pensions provide income but not generational wealth
19:45 Listener question: mixing Vanguard Target Date 2035 and 2040 funds
21:48 Debate over “rebalancing” target-date funds
22:57 Listener question: variable annuity inside an IRA at Edward Jones
24:28 Why variable annuities can be expensive and inefficient
25:11 Fake podcast awards and pay-to-play recognition schemes
27:07 “Financial Physics” Amazon ranking discussion
28:32 Don’s upcoming novel The Line Uncrossed and Civil War inspiration
Questions? Comments? Click!
Tom and Don take aim at the persistent myth that active management adds meaningful long-term value, using a new study highlighted by Larry Swedroe showing that 1,260 balanced mutual funds dramatically underperformed simple low-cost index portfolios from 1990–2021. The duo contrasts expensive actively managed balanced funds with inexpensive index strategies like the Vanguard Balanced Index approach, illustrating how fees alone can devastate long-term returns. Along the way, they discuss the emotional challenge of rebalancing, the hidden costs inside broker-sold funds, and why simplicity usually beats complexity in investing. Listener questions cover paying off a high-interest HELOC, whether gold or silver make sense as CD replacements, how advisor fees relate to the 4% withdrawal rule, and the behavioral value of good fiduciary advice. The episode wraps with a detour into collectible stock certificates, including Enron, Washington Mutual, and even Trump Media, proving once again that Talking Real Money can turn almost anything into a financial lesson and a comedy bit.
0:05 Satirical opening mocking the “you need a professional” investing pitch
0:27 The enduring myth that active management beats indexing
1:40 Larry Swedroe study on 1,260 balanced mutual funds vs. index portfolios
3:05 Balanced funds underperform across returns and risk-adjusted metrics
4:32 Massive fee differences between active funds and index funds
6:05 Rebalancing challenges and lousy 401(k) investment menus
7:05 American Funds Balanced Fund fee breakdown shocks Don
8:49 Vanguard Balanced Index Fund cost comparison
9:36 Why advisor fees are different from high mutual fund expenses
10:30 Simplicity and low costs win most of the time
11:41 Enron stock certificate becomes a lesson on stock-picking risk
14:47 Listener question about paying off a 7.1% HELOC
19:29 Whether pensions should count as “bond-like” assets
21:42 Gold and silver vs. CDs discussion
25:40 Does the 4% rule include advisor fees?
26:11 Vanguard Advisor Alpha and the behavioral value of advisors
27:32 Fiduciary advice, tax management, and preventing investor mistakes
28:50 Collectible stock certificates and bizarre eBay discoveries
30:48 Closing banter and preview of future unpredictability
Questions? Comments? Click!
This Q&A episode of Talking Real Money covers a wide range of listener questions, from proposed “youth retirement accounts” and 529 plans to the deceptive marketing tactics behind indexed annuity steak dinners. Don also shares details about his upcoming Civil War novel, The Line Uncrossed, releasing May 22. Other topics include Vanguard’s ETF stock split, the difference between quantitative investing and factor-based investing used by firms like Dimensional and Avantis, and a bizarre Apple Podcasts glitch that incorrectly labeled a recent episode as explicit content. Along the way, Don delivers a passionate takedown of indexed annuity sales tactics and marvels at modern AI audio cleanup tools
0:05 Q&A episode kickoff and listener question backlog talk
1:13 Don discusses dictation vs typing and listener engagement
2:21 Announcement of Don’s debut Civil War novel The Line Uncrossed
3:35 Decoration Day origins and Memorial Day history
4:38 Question about proposed youth retirement accounts and 529 plans
6:30 Why proposed 530A accounts currently cannot fund 529s
7:40 Reminder about free fiduciary advisor meetings at TalkingRealMoney.com
8:09 Listener reports attending a free steak dinner annuity seminar
9:47 Indexed annuity “54% bonus” pitch dissected
11:29 Why indexed annuity charts are misleading
13:25 Hidden caps, fine print, and low long-term returns
14:49 The truth behind “bonus” annuity money
15:51 Don unloads on indexed annuity sales tactics and commissions
17:26 Vanguard’s mega-cap ETF stock split explained
18:40 Why ETF stock splits can help small investors
19:30 Difference between quantitative investing and factor investing
20:49 Demonstration of AI audio cleanup software
21:23 How Dimensional and Avantis use evidence-based investing rules
23:33 Listener reports Apple Podcasts flagged “War vs. Markets” as explicit
24:06 Don investigates the mysterious Apple Podcasts explicit label
25:34 Apple appears to have manually overridden the explicit setting
27:02 Request for more listener questions and podcast sharing
27:55 Final reminder about Don’s novel presale availability
Questions? Comments? Click!
Tom takes a Wall Street Journal retirement-account quiz while Don gleefully plays game show host, leading to a surprisingly useful (and occasionally chaotic) discussion of HSAs, Roth IRAs, Trump accounts, 529 plans, contribution limits, and retirement withdrawal rules. The episode then pivots into listener questions about ACAT transfer anxiety during market volatility and a blistering takedown of indexed annuities, including misleading “bonuses,” surrender charges, and the illusion of “market returns without risk.” The show wraps with a spirited rebuttal to a listener defending annuities and a reminder that insurance companies aren’t charities—they’re math machines built to profit from your longevity assumptions.
0:05 Wall Street Journal retirement-account quiz begins
1:06 Admitting financial advisors don’t know everything
1:50 AI voices, digital immortality, and cloned Don
4:01 HSAs and the “triple tax advantage”
5:20 Roth vs. traditional IRA tax treatment
6:34 Employer matches and “Trump accounts”
7:46 529 contribution-limit confusion
8:47 IRA contribution eligibility and earned income
11:17 Rule of 55 for penalty-free 401(k) withdrawals
12:37 Trump accounts requiring U.S. stock index funds
14:25 Expanded 529 eligible expenses under new law
16:06 Listener question about ACAT transfer anxiety during volatility
18:24 Why missing a few market days usually doesn’t matter
20:57 Indexed annuity “bonus” pitch dismantled
23:17 Why Don despises most insurance investment products
24:27 Listener challenges the show’s annuity criticism
26:12 Why annuities and bonds are not equivalent
28:09 Long-term market assumptions vs. fear-based selling
29:22 Appella’s free portfolio-review philosophy
29:51 Immediate annuity math and the “you’re getting your own money back” argument
31:23 Why insurance companies usually win the longevity bet
32:15 Mattress-money analogy for annuity payouts
32:59 Closing thoughts and growing podcast downloads
Questions? Comments? Click!
Don and Tom react to the gold-pushing radio show that replaced Talking Real Money, breaking down misleading claims about gold investing, TSP accounts, and “tax-free” gold IRAs while exposing the fear-based marketing behind precious metals sales. They contrast long-term investing with speculation, discuss Jamie Dimon comments taken wildly out of context, and explain why gold’s recent surge says little about the future.
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This episode features an in-depth conversation with Justin Baer about his book House of Fidelity, exploring how Fidelity Investments helped transform investing from an elite activity into a mainstream necessity. The discussion traces Fidelity’s evolution from mutual fund pioneer to 401(k) powerhouse, highlighting its adaptability as active stock picking gave way to index investing (driven in part by figures like Jack Bogle). It also examines the firm’s surprising embrace of cryptocurrency under Abigail Johnson, as well as the complex family dynamics that shaped its leadership transition. The broader takeaway: even dominant firms must reinvent themselves—or risk becoming irrelevant.
0:05 Intro and setup for special interview episode
0:39 Introduction of Justin Baer and House of Fidelity
1:11 How Fidelity Investments helped democratize investing
2:34 Rise of mutual funds and access for everyday investors
2:58 Early role in the growth of 401(k) retirement plans
4:12 Shift to direct-to-consumer investing and marketing evolution
5:26 Creation and impact of donor-advised funds
6:27 Legacy of star managers like Peter Lynch and active investing culture
7:31 Decline of stock-picking dominance and need to evolve
8:46 Rise of index investing and influence of Jack Bogle
10:10 Generational shift in how investors perceive Fidelity
11:26 Transition to 401(k) recordkeeping and broader services
12:03 Fidelity’s early and controversial move into cryptocurrency
13:27 Abigail Johnson and the push to innovate
14:44 Strategic reasons for exploring blockchain and crypto
16:23 Cultural return to experimentation inside Fidelity
17:01 Historical willingness to try unconventional ideas
20:13 Family dynamics and succession challenges within Fidelity
24:52 Abigail Johnson’s rise through internal adversity
27:14 Near-sale tensions and power struggle within the company
29:59 Resolution and eventual leadership transition
31:03 Closing thoughts on the book and Fidelity’s future
Questions? Comments? Click!
A graduation-season episode turns into a surprisingly deep conversation about careers in the age of AI, anchored by a New York Times article from Jodi Kantor. Don and Tom explore the idea that successful careers are built not by chasing trends, but by developing a personal “craft” and aligning it with real-world need. They connect that concept to investing discipline—ignore noise, focus on what you can control—and emphasize experimentation early in life. The back half pivots to listener questions, where Don dismantles buffered ETFs as overly complex, critiques commission-laden annuity practices masquerading as fiduciary advice, clarifies Social Security spousal benefits, and takes apart the flawed comparison between low-cost index bond funds and leveraged, high-fee active products like the PIMCO Income Fund. The throughline: complexity, whether in careers or investing, is usually a trap.
0:05 Graduation season and why young people face a radically different job market
1:36 AI, automation, and the uncertainty of future careers
2:00 NYT article breakdown—“craft” and “need” as career anchors
5:01 Why developing a unique skill set matters more than chasing trends
6:37 College as a poor place to discover real-world “craft”
7:19 Weekly self-reflection exercise: track what you enjoy vs. hate
7:30 Generational career fads—from Japan to “plastics”
9:15 Mentorship vs. going it alone in career development
10:50 Real-world example: finding a career through evolving skills
12:00 Parallels between career decisions and investing discipline
13:39 Taking risks early in life when stakes are lower
14:32 Listener question: buffered ETFs vs. bonds for stability
17:11 Why buffered ETFs deliver limited upside and hidden risks
19:39 Counterparty risk explained with 2008 auction-rate securities story
21:56 Simpler alternatives: CDs and municipal bonds
23:47 Industry hypocrisy: annuities inside “fiduciary” environments
24:46 Why putting IRA money into annuities makes no sense
25:30 Social Security spousal benefit basics explained
26:39 Advisor claim: higher fees justified in certain asset classes
27:57 Breaking down active bond fund risks vs. index funds
29:44 Leverage dangers in funds like PIMCO Income
31:38 SPIVA reality: active managers rarely outperform long term
Questions? Comments? Click!
Don flies solo for a Friday Q&A, fielding questions on switching into financial services careers, the risks and reality of “enhanced” direct indexing strategies, whether newer Avantis ETFs add real value, and a classic diversification debate sparked by Markowitz and Bessembinder research. He emphasizes that financial advising is primarily a sales-driven business, warns against overly complex and leveraged investment strategies being pushed by Wall Street, reinforces the importance of broad diversification over clever stock picking, and closes by cautioning DIY retirees about the real complexity of managing withdrawals—suggesting that many would benefit from at least some level of professional guidance.
0:02 Friday intro, Tom gets screened out, tease of upcoming interview
1:41 Listener question: switching from IT consulting to financial services
3:20 Reality of the industry: sales-driven, not data-driven
6:03 Don’s personal story entering finance and high failure rate
6:58 Listener question: enhanced direct indexing explained
8:02 Critique of long/short indexing strategies and high risk
10:44 Why firms like Schwab and Fidelity are limiting these strategies
11:20 Listener question: Avantis Total Market ETF (AVTM)
12:07 Why AVTM is unnecessary and overly complex
13:49 “Tune out the noise” and product proliferation critique
14:11 Listener question: 44 stocks vs. total market diversification
16:12 Markowitz vs. Bessembinder explained clearly
17:38 Why owning the whole market beats trying to pick winners
19:18 Listener question: DIY retirement, bucket strategy, and tools
20:15 Why complexity often requires paid guidance
21:41 When advisors make sense in retirement
23:12 Call for more listener questions and show promotion
Questions? Comments? Click!
This podcast audio was accidentally posted yesterday, so you might want to listen to our 4/29 episode, if you’ve already heard this one.
A listener-inspired revisit of emerging markets investing—sparked by the legacy of Mark Mobius—highlights why most investors are dramatically underexposed to this critical asset class. Don and Tom explain that while emerging markets bring higher volatility and currency risk, they also offer diversification, access to faster-growing economies, and exposure you simply can’t get from U.S. multinationals alone. The conversation reinforces a core principle: proper global diversification matters more than chasing returns, and for most investors, owning a broadly diversified fund is far more practical than trying to build a perfectly balanced portfolio piece by piece. Listener questions then tackle currency risk (don’t worry about it) and expose the dangers of “hodgepodge” portfolios built from random ETF ideas—ending with a strong case for simplicity, discipline, and knowing the purpose behind every dollar invested.
0:05 Long-forgotten topic returns: emerging markets investing
0:26 Tribute to Mark Mobius and his emerging markets legacy
1:00 Why most investors have never heard of him
2:02 What emerging markets actually are (and why they feel risky)
2:43 Franklin Templeton era and historical performance claims
3:26 Efficient market skepticism vs. boots-on-the-ground investing
3:42 The real issue: investors massively underweight emerging markets
4:59 Long-term returns and the case for inclusion
5:57 Volatility, crises, and why diversification still wins
6:53 Portfolio reviews reveal almost no EM exposure
7:25 The S&P 500 problem: what you’re missing globally
8:29 Why all-in-one funds (AVGE, DFAW) simplify everything
9:40 Listener question: currency risk in international investing
11:04 “We own international… right?” portfolio reality check
12:16 Currency swings explained (and why you shouldn’t obsess)
13:55 Japan’s lost decades as a diversification lesson
15:24 Why global companies ≠ true international exposure
17:53 RV nostalgia and listener banter
19:21 $17K “play account” turns into portfolio chaos
21:55 ETF overload and CNBC-driven investing behavior
23:35 Why the portfolio has no coherent strategy
24:36 Simple fix: target-date or total market approach
25:13 The myth of “play money” in investing
26:01 Complexity makes bad portfolios worse over time
26:53 Why Talking Real Money stays audio-only
27:33 Growth update and listener appreciation
Questions? Comments? Click!
Private equity gets sold as exclusive, sophisticated, and “what the smart money does,” but the reality is far less compelling. Don and Tom break down the illusion: limited transparency, questionable valuations, high fees, and serious liquidity risks—all for returns that barely edge out (if at all) simple public market strategies. They argue that the supposed advantages—like the “illiquidity premium” and diversification—don’t hold up under scrutiny. The episode then pivots to smart listener questions on early retirement planning and 457 vs. 401(k) decisions, reinforcing a core theme: complexity is often marketed as intelligence, but disciplined simplicity usually wins.
0:05 Financial pros sell complexity because it pays them more
0:30 Private equity pitch: exclusivity, access, and “smart money” appeal
1:40 Article breakdown: positives vs. negatives of private equity
2:21 “You get to feel special” and access private companies
3:00 The illusion of diversification and non-correlation
3:37 Public vs. private pricing: real markets vs. guesswork
4:04 Example of questionable private equity valuation jumps
5:27 The “illiquidity premium” myth
6:00 Liquidity risk: not being able to access your money
6:27 Pension funds and private equity track record reality
6:51 Returns comparison: private equity vs. public markets
8:20 Small cap value vs. private equity (higher returns, lower cost)
9:48 Why advisors push complex products (fees and optics)
10:30 Liquidity crises and echoes of 2008 (Blue Owl example)
11:36 Caller: early retirement planning with pension and TRICARE
13:19 Financial readiness vs. purpose in retirement
15:28 Long-term risks of early retirement and longevity
16:19 Monte Carlo planning and scenario testing
18:37 Listener question: 457 vs. 401(k) strategy
19:56 Key advantage: penalty-free withdrawals from 457 plans
23:13 Rare but real risk: non-governmental 457 ownership issue
24:35 Roth vs. traditional: educated guesses, not certainties
24:48 When you need a real financial plan (not just rules of thumb)
26:03 Human advisor vs. emerging AI planning tools
27:40 Closing thoughts and how to get help
Questions? Comments? Click!
This episode shifts from investing to protection, starting with increasingly sophisticated scams—from fake Microsoft emails to deceptive hotel booking sites highlighted by The New York Times that can triple the cost of a stay while appearing legitimate. Don and Tom walk through how these schemes work, why they’re often legal but unethical, and how to avoid them with simple habits like ignoring unsolicited messages, using unique passwords, and booking travel directly. A listener question then pivots to retirement returns, where they explain that a steady ~6% return can be perfectly fine depending on diversification, withdrawals, and peace of mind. The episode wraps with a practical discussion on umbrella insurance—when it’s worth the cost, how risk actually plays out, and why protecting assets sometimes matters more than optimizing every dollar.
Questions? Comments? Click!
Boomers take the blame (with a grin) while unpacking the real retirement mistakes that still trip people up today—failing to plan, claiming Social Security too early, relying on bad advice, and mismatching portfolios to actual needs. The episode leans hard into practical fixes: delay Social Security when it makes sense, build a real financial roadmap, ignore friends-as-advisors, and understand the difference between savings and portfolio strategy. A listener question adds clarity on when (and why) to introduce bonds versus using high-yield savings, followed by a quick dive into Dimensional’s factor-based investing approach. The throughline: retirement success isn’t about clever products—it’s about disciplined planning and avoiding expensive behavioral mistakes.
0:05 Boomer blame (playfully) and framing retirement mistakes
1:16 Retirement regrets: not saving enough, not starting early
2:26 The bigger issue: lack of a real retirement plan
3:25 Retirement as the “final quarter” mindset shift
4:31 Social Security mistakes and early claiming problem
6:04 Why waiting feels shorter than you think
6:44 The “8% guaranteed” Social Security advantage
7:40 Spousal strategy and survivor benefit risks
8:10 Buying products vs. having a plan
8:53 Dangerous reliance on friends and family for advice
10:10 Why professional advice matters (and the sales trap)
12:31 Generational differences in talking about money
13:15 Why families should discuss finances openly
13:15 Portfolio mismatch and unnecessary risk-taking
14:24 Spending honesty (or lack thereof)
15:26 Only ~1% of advisors are true fiduciaries
17:19 Caller: high-yield savings vs. bonds (age 30, aggressive investor)
18:50 Role of bonds as portfolio stabilizers
20:53 When to add bonds and how much
21:38 Importance of diversification within stocks
22:31 Dimensional vs. traditional target date funds
24:14 Factor investing: small, value, profitability
26:34 Risk and return—no free lunch
Questions? Comments? Click!
A rapid-fire Friday Q&A dives into one of retirement’s biggest debates—flexible withdrawals versus the traditional 4% rule—with Don explaining why adaptability may be the key to never running out of money. The episode also tackles ETF vs. mutual fund tax efficiency at Vanguard, pushes back on “fancy” portfolio add-ons like managed futures and long-term bonds, clarifies why employer 401(k) matches are always pre-tax, and gives a pragmatic take on so-called “Trump accounts” (free money… with strings). As always, the throughline is simple: keep it low-cost, flexible, and grounded in reality—not marketing.
0:05 Friday Q&A kickoff and podcast growth update
1:17 5% flexible withdrawals vs. 4% + inflation debate
3:33 Why flexibility reduces the risk of running out of money
4:43 Real-world comparison: 2000–present withdrawal outcomes
5:34 Vanguard mutual funds vs. ETFs—tax efficiency question
6:16 When ETF conversion matters (and when it doesn’t)
7:51 Managed futures, long-term bonds, and gold in retirement portfolios
9:05 Real-world performance vs. theoretical “safe withdrawal” claims
10:33 Costs, complexity, and why “portfolio decoration” often fails
12:12 Why employer 401(k) matches are always pre-tax
13:26 “Trump accounts” (aka 530A?): free money vs. better tools
16:22 Restrictions, taxation, and practical usefulness
17:17 Bottom line: free money is still free money
18:44 Listener suggestion on naming the accounts (530A)
19:51 When to use a real advisor vs. podcast answers
Questions? Comments? Click!
AI-powered trading is the latest shiny object designed to make investors feel smarter while quietly encouraging more trading (and more profits for platforms). Don and Tom break down why letting an “AI agent” execute your personal market theories is just automated speculation—no edge, no accountability, and no evidence it works. They contrast this with decades of data showing that even professionals fail to beat simple index investing. The episode also tackles a listener question on Roth conversion timing (spoiler: don’t overthink it) and a new “no-dividend” ETF gimmick that raises more questions than it answers. The throughline: complexity sells—but simplicity wins.
0:05 AI trading tools enter the mainstream—and why they’re a bad idea
1:34 “Public” and AI agents: your ideas, their execution, your risk
3:12 The illusion of having a “market edge”
5:41 Removing emotion vs. removing common sense
7:09 Robinhood déjà vu and engagement-driven trading
10:15 The real goal: more trades, more profit (for them)
11:12 Hedge funds, cheating, and Buffett’s famous bet
12:51 Day trading data: ~1% succeed (barely)
13:55 SPIVA results: active managers consistently lose
15:21 Why your AI-powered strategy won’t beat the market
16:22 Listener Q: Roth conversions and “dollar-cost averaging”
17:19 What a Roth conversion actually is (and key rules)
19:22 Why DCA is mostly a myth outside regular income investing
20:23 Timing Roth conversions: sooner is usually better
21:50 Listener Q: XDIV “no-dividend” ETF explained
23:57 How dividend avoidance actually works (and doesn’t)
25:10 Gimmick or innovation? Costs, tracking error, and taxes
26:34 Why waiting years beats chasing new products
28:00 Q1 performance: U.S. vs. globally diversified portfolios
28:15 The real diversification lesson investors ignore
29:27 Free portfolio review pitch (and karmic marketing)
Questions? Comments? Click!
War headlines dominate attention, but history shows they rarely have lasting impacts on stock markets. Don and Tom break down why geopolitical events—despite their emotional weight—typically cause only short-term volatility, while long-term returns are driven by economic growth and corporate earnings. They reinforce the importance of global diversification, push back hard against market-timing myths (with a great 1929 example), and remind investors that reacting to headlines is a losing game. Listener questions cover 529 plans with VA education benefits and the ongoing failure to enforce a true fiduciary standard in financial advice.
0:05 Market uncertainty, war headlines, and timing risk of pre-recorded shows
1:09 Do wars actually hurt markets? Historical perspective
2:09 30 geopolitical events since 1939—average market drop and recovery
3:27 Extreme cases: Japan and WWII market collapses
4:32 What really drives markets: companies, earnings, and growth
5:43 Oil, tech layoffs, and AI hype influencing current sentiment
6:40 Why global diversification works—even after major economic collapses
7:17 Recent market moves: oil up, bonds down, gold mixed
8:09 Why war is not a reason to change your portfolio
8:58 Investors vs. traders—know the difference
9:17 1929 quote exposing the myth of market timing
10:24 The danger of “experts” predicting the future
11:35 CNBC vs. actual useful information (and better entertainment elsewhere)
13:24 Listener comment: risk-balanced allocation and diversification
16:23 “Portfolio of ideas” vs. disciplined investing
17:03 What true diversification really means (global, broad exposure)
18:33 Listener question: 529 plans + VA education benefits
21:11 How VA education stipends actually work
22:21 Why 529 plans still make sense (and Roth rollover opportunity)
22:30 Fiduciary rule struck down—why reform keeps failing
23:32 Industry resistance and regulatory challenges since Dodd-Frank
Questions? Comments? Click!
Roxy Butner joins the show to break down practical retirement saving strategies—especially for entrepreneurs who struggle to pay themselves first. The conversation covers foundational options like IRAs and Roth IRAs, then moves into more powerful tools such as Solo 401(k)s, SEP IRAs, and SIMPLE IRAs for business owners. They highlight the enormous impact of starting early through compounding, common planning mistakes (like neglecting retirement and estate planning), and current client concerns around market volatility and geopolitical risk. Listener questions tackle HSA asset allocation and whether bonds belong in a portfolio nearing withdrawal, along with a comparison between money market funds and bond funds. The episode reinforces a core theme: ignore the noise, build a plan, and stick to it.
0:09 Show intro and Roxy joins; focus on practical, common-sense advice
0:50 Entrepreneurs and the challenge of saving vs reinvesting in business
1:14 Getting started: traditional IRA basics and tax deferral
2:41 Roth IRA advantages and contribution limits
3:41 Retirement options for self-employed: overview
4:20 Solo 401(k): high contribution potential and dual-role benefits
5:17 SEP IRA: flexible contributions for variable income
6:40 Contribution discipline and “pay yourself first” strategy
7:44 SIMPLE IRA for small businesses with employees
8:22 The power of compounding and starting early
9:12 Early vs late investor example—time beats total contributions
10:29 Common mistakes: not planning early, ignoring estate planning
12:00 Tax season behaviors and last-minute contributions
13:15 Listener question: HSA allocation—100% equity vs adding bonds
14:03 Suggested shift toward 80/20 or modest fixed income allocation
15:34 Risk considerations and need for stability nearing withdrawals
16:00 Listener question: money market vs bond fund performance
16:51 Apples-to-apples comparison and limits of historical data
17:57 Role of bonds vs money markets in long-term portfolios
18:49 Client fears: market drops and volatility concerns
19:49 Geopolitical risk and sticking to a long-term plan
20:17 Importance of real financial planning vs guessing returns
21:57 What listeners get from a free advisor consultation
23:16 How to connect with an advisor and submit questions
Questions? Comments? Click!
Don and Tom tackle the idea that retirement isn’t what it used to be—and maybe shouldn’t be at all. From historical retirement ages (when most people never made it) to today’s longer, healthier lives, they explore why many people aren’t eager to stop working. The conversation shifts to purpose, identity, and the growing trend of “phased retirement,” where people scale back instead of quitting outright. They also answer listener questions on using the TSP’s G Fund as a stable anchor in a portfolio and the smartest way to time withdrawals from 529 plans for future medical school costs. Along the way, there’s the usual banter, skepticism of industry nonsense, and a firm reminder: retirement is no longer a finish line—it’s a design problem.
0:05 Don’s “retirement strategy”: Don’t
1:13 Should anyone actually retire anymore?
2:06 Financial vs. psychological reasons people keep working
3:15 History of retirement ages and why they were set
4:39 Longevity trends and aging populations
5:04 Why modern retirees want purpose and engagement
6:14 Companies encouraging phased retirement (Microsoft example)
7:48 Planning the “what will I do?” side of retirement
8:28 Why experience makes you better (especially in media)
10:12 Retirement identity and self-awareness
11:01 Real-world example: professionals scaling back instead of quitting
12:34 Don’s evolving “never retire” plan
14:55 The importance of knowing yourself before retiring
16:22 Retirement today vs. historical necessity
17:14 Rethinking retirement as continued contribution
17:58 Listener question: Using TSP G Fund in retirement allocation
20:19 Risks and logistics of split-account rebalancing
21:26 Listener question: When to use 529 funds for med school
23:17 Why delaying 529 withdrawals maximizes tax advantages
24:52 How to submit listener questions
26:19 Free advisor meetings and fiduciary pitch (without the noogie)
Questions? Comments? Click!
A wide-ranging Q&A episode tackles the real-world tradeoffs investors actually face: whether Paul Merriman’s aggressive small/value “ultimate” portfolio is worth the complexity and risk, how much stock to put in scary online bank reviews versus FDIC reality, and how to find advice when you don’t want someone managing your money. Don also explains why FAFSA tricks with traditional IRA contributions don’t work, how to control capital gains taxes using specific share identification, and—somehow—confirms he was the voice behind a powerful Auschwitz exhibit. Practical, skeptical, and very Don.
0:05 Friday Q&A intro and how to submit questions
1:49 Merriman 10-fund portfolio vs “owning the market”
5:21 Don confirms Auschwitz exhibit voiceover work
6:54 Bread Savings reviews, withdrawal limits, and FDIC reality
9:38 Finding tax-only retirement advice (CPA vs hourly planner vs EA)
12:05 FAFSA myth: traditional IRA won’t lower aid eligibility
13:55 Selling ETFs: minimizing taxes with specific lot selection
17:01 Podcast hosting quirks and MP3 download workaround
Questions? Comments? Click!
Annuities promise peace of mind—but often at a steep and poorly understood cost. Don and Tom break down when (rarely) annuities might make sense, why most—including fixed indexed annuities and QLACs—tilt heavily in favor of the insurance company, and how investors can replicate “guaranteed income” with a disciplined portfolio instead. They also take on a listener question about escaping high fees at Edward Jones (spoiler: yes, run) and dismantle a pitch for a Bitcoin-backed “bond alternative,” explaining why high yields usually signal high risk—and why crypto still fails the basic test of having a rational investment purpose.
0:11 Questionable motives behind much of today’s investing advice
0:50 Why annuities appeal—turning savings into a “personal pension”
2:09 The illusion of annuity “returns” vs. reality of payouts
4:08 Where annuity decisions get complicated—and costly
5:21 Why using IRA money for annuities often makes little sense
5:50 QLACs explained—and the uncomfortable truth about dying early
7:37 The only annuity worth considering: SPIA (and its trade-offs)
8:38 QLAC math vs. simple investing—who really wins
10:33 The hidden downsides: illiquidity, opacity, and insurer risk
11:16 Where (and how) to actually shop for annuities safely
14:05 Why indexed annuities dominate—and why that’s a red flag
15:42 The myth of “market returns without risk”
16:45 Building your own income stream without annuities
18:47 Listener: escaping high fees at Edward Jones
20:09 Simple, low-cost portfolio solutions for a 30-year-old
23:08 Listener: Bitcoin-backed “bond replacement” pitch
25:11 Why high yields (11%+) scream risk, not safety
27:06 The danger of replacing bonds with speculative assets
28:59 Final blunt take: crypto as an investment “has no there there”
Questions? Comments? Click!
Starting early beats almost everything else in investing—and this episode drives that home with eye-opening math and a brand-new tool for jumpstarting a kid’s retirement. Don and Tom break down the new “Youth Retirement Account” concept (government seed money plus family contributions), compare it to Roth IRAs and 529 rollovers, and show how relatively modest early contributions can grow into millions. Then they pivot to a listener question about a Nationwide indexed annuity and dismantle the sales pitch—exposing hidden commissions, capped returns, and why these products rarely deliver what they promise. It’s a mix of optimism (you can set your kid up for life) and skepticism (don’t fall for complicated insurance products pretending to be investments).
0:00 The only near-guarantee in investing: start early, win big
1:24 Compounding as the real “eighth wonder”
2:28 Turning $50K in your 20s into ~$1M by retirement
3:57 Introducing “Youth Retirement Accounts” (YRA concept)
5:08 Government $1,000 seed + up to $5,000/year contributions
6:59 Why waiting until 24 to access matters (tax rules)
7:34 Converting to Roth and the path to ~$3M tax-free
9:08 Total cost math: ~$135K to fund a lifetime retirement
10:33 Why earned income + Roth IRA is still the gold standard
11:40 529-to-Roth rollover strategy (up to $35K)
13:06 Gifting strategies: how to ask family to fund accounts
15:18 Why even small contributions can create huge outcomes
17:37 Listener question: Nationwide indexed annuity pitch
19:34 The “no commission” myth and surrender charges
20:06 Participation rates, caps, and confusing index formulas
21:34 Real-world returns: often 2%–5%, not market-like
22:46 When annuities might make sense (SPIAs only)
23:29 Why most annuities are sold, not bought
24:57 Why RetireMeet doesn’t travel well beyond Seattle
26:05 How to submit listener questions
Questions? Comments? Click!
This episode exposes the misleading language behind “best interest” financial sales practices, using the insurance-backed fight against the Department of Labor’s fiduciary rule as the main example. Don and Tom explain why rolling money from a 401(k) or 403(b) into an IRA can leave investors vulnerable to commissions, conflicts, vague disclosures, and expensive products dressed up as advice. They break down the difference between true fiduciary advice, so-called best-interest standards, and bare-minimum suitability, then answer listener questions on pension-heavy asset allocation, Delaware Statutory Trusts, and why some seemingly clever planning ideas are often more trouble than they’re worth.
0:00 “Federation of Americans for Consumer Choice” irony and setup
0:52 Fiduciary rule battle with the Department of Labor (and why it keeps dying)
1:43 Who’s really behind the “consumer choice” push (insurance industry)
2:41 Why retirement rollovers (401k → IRA) are the financial “wild west”
3:13 $841B rollover stat and loss of ERISA protections
4:34 Who actually operates under a true fiduciary standard
5:14 Why rollovers require serious skepticism (fees, conflicts, hidden costs)
6:10 Form BI and the illusion of “best interest”
7:09 Insurance “best interest” rules and the loophole problem
8:23 Disclosure theater: legal cover vs real transparency
9:40 What a fiduciary does NOT guarantee (returns, cost, communication)
10:47 Why even fiduciaries can be expensive
10:58 The three standards explained: fiduciary vs best interest vs suitability
12:02 “It’s not terrible” — the low bar of suitability
13:03 Advice vs sales pitch: how most investors get fooled
13:38 Listener case: pension-heavy early retirement plan
17:18 Pension as “bond substitute” debate
19:08 Portfolio breakdown and fund choices (Vanguard, Avantis)
20:55 Simplicity vs complexity across multiple accounts
21:58 Risk reduction suggestion despite strong financial position
24:13 Delaware Statutory Trusts (DSTs): tax deferral vs massive fees
25:59 DST downsides: illiquidity, lack of control, high commissions
26:29 Bottom line on DSTs: “pay your taxes and move on”
27:12 Listener suggestion: “Can I afford it?” segment
27:50 Why personalized affordability segments are impractical
29:37 Show longevity discussion and future timeline
31:11 Financial Physics book plug (Kindle version now available)
Questions? Comments? Click!
A century-long study by Hendrik Bessembinder reveals a stunning truth about investing: while the U.S. stock market produced enormous overall wealth, the vast majority of individual stocks were losers, with just 46 companies responsible for half of all gains. Don and Tom unpack what this means for investors—namely, that stock picking is essentially a losing game driven more by luck than skill, and that broad diversification through index investing is the only reliable way to capture market returns. They also tackle a listener question on annuities vs. CDs, highlighting trade-offs between yield, safety, and liquidity, while reinforcing their long-standing skepticism of locking up money for marginal gains.
0:13 “Miss a day, miss a lot” — but missing the right stocks matters far more
1:09 Introduction to Bessembinder’s 100-year stock market study
2:35 30,000 stocks, 30,000% total return — but context matters
3:21 Median stock return is negative — most stocks lose money
3:55 60% of stocks destroy wealth; only a minority create gains
5:25 Just 46 companies generate half of all market wealth
6:24 The near impossibility of picking winning stocks consistently
7:01 Why stock picking is closer to lottery odds than skill
7:56 Broad diversification as the only reliable strategy
8:50 Owning the entire market captures the winners automatically
9:25 Active management vs. indexing — evidence vs. anecdotes
10:00 Skill vs. luck in outperforming managers (near zero true skill)
11:19 Behavioral flaws: confusing stories with evidence
12:25 Fundamentals vs. sentiment in long-term stock performance
12:59 Emotional investing pitfalls and the need for discipline
13:42 Listener question: annuity vs. CD for short-term cash
15:30 Risks of annuities vs. FDIC-insured alternatives
16:37 Liquidity trade-offs and current CD rate comparisons
18:05 Laddering CDs vs. locking into annuities
18:33 Listener question on podcast changes post-radio transition
19:36 Reflections on leaving live radio and moving fully to podcast
22:06 Free portfolio reviews and fiduciary advice offer
23:01 Call for listener support as big-name podcasts grow
Questions? Comments? Click!
This Friday Q&A episode of Talking Real Money features a surge in listener questions, covering key retirement and investing topics including IRA inheritance strategies, borrowing in retirement, how to find fiduciary advisors, the powerful tax advantages of HSAs, pension timing decisions, and whether Robinhood’s 2% IRA transfer bonus is worth the trade-offs. Don emphasizes simplicity and tax efficiency—favoring IRA rollovers over inherited structures for spouses, cautioning that borrowing becomes harder in retirement, praising HSAs as one of the best tax-advantaged tools available, encouraging aggressive Roth saving to bridge early retirement gaps, and warning that “free money” incentives like Robinhood’s may come with hidden costs, particularly through payment-for-order-flow execution.
0:05 Shift to podcast-only boosts listener call volume
2:26 Spousal IRA decision: inherited vs rollover strategy
5:59 Why rollover IRAs usually win for older surviving spouses
6:26 Borrowing in retirement: income limits and lender challenges
8:03 Alternative borrowing strategies and why cash often wins
9:07 How to find fiduciary advisors on the website
10:16 HSA explained: triple tax advantage and retirement use
12:41 Pension planning and early retirement trade-offs
14:08 Why delaying pension and Social Security pays off
15:35 Roth IRA as a bridge strategy for early retirement
18:33 Robinhood 2% IRA transfer: risks vs reward
19:49 Payment-for-order-flow and why execution quality matters
21:54 Final thoughts: simplicity, discipline, and avoiding gimmicks
Questions? Comments? Click!
Don and Tom tear into Kiplinger’s roundup of “best money advice,” separating the genuinely useful from the obvious, the flawed, and the downright silly. They agree that core principles like living below your means, automating investing, and seeking qualified fiduciary advice still reign supreme, while pushing back on oversimplified takes about debt, life decisions, and self-auditing. The conversation reinforces a familiar truth: personal finance isn’t about clever hacks—it’s about consistent behavior, smart systems, and avoiding the many ways people sabotage themselves. Listener questions cover fund-of-funds expense ratios (no stacking), high-yield savings tradeoffs, and the real cost of chasing slightly better interest rates.
0:05 Chasing the “best money advice of all time” (and where it definitely isn’t)
1:44 Kiplinger roundup sparks review of popular financial advice
3:10 Dave Ramsey basics—simple, correct, and incomplete
4:29 The myth of easy money and cultural obsession with getting rich quick
5:18 Getting help from professionals (and why most aren’t actually professionals)
6:07 “Good vs. bad debt” debate and the problem with vague advice
7:32 Aligning money with values… or just saying something that sounds nice
7:39 “Marry wisely” as financial advice (yes, really)
9:02 Automating finances as one of the most effective strategies
10:40 Why friends and family are often terrible sources of financial advice
10:53 Should life decisions be based on money? (spoiler: they usually are)
12:33 Self-audits vs. professional guidance—can you really judge yourself?
13:42 The foundational rule: spend less than you make
14:31 Most people don’t know what they actually spend
15:00 Listener question: AVGE / AVGV expense ratios—no fee stacking
17:50 PI Bank high-yield savings—rate vs. usability tradeoffs
19:25 Wire transfer fees and when higher yields actually matter
21:31 Practical ways to manage savings movement costs
22:17 Don’s Financial FYSICS book—pricing, Kindle version, and Amazon quirks
Questions? Comments? Click!
This episode cuts through the marketing fog around “financial advisors,” breaking them into three real categories—brokers, insurance agents, and fiduciary investment advisors—and exposing how incentives, commissions, and murky regulations shape the advice investors receive. Don and Tom highlight the industry’s gradual shift away from commissions while warning that titles like “fiduciary” or “CFP” don’t guarantee behavior. A listener segment dives into retirement portfolio construction, clarifying misconceptions about bond funds like BND, sequence risk strategies, and the role of safe assets. The episode closes by reframing trendy concepts like “liability matching portfolios” as common-sense planning: keep near-term spending safe and let long-term money grow.
0:05 Three types of “financial advisors” and why the title means nothing
0:51 Brokers vs RIAs vs insurance agents—what they actually do
2:10 Fiduciary confusion and “part-time fiduciaries”
3:10 How brokers really operate (transactions, firm-first incentives)
6:00 Insurance agents, annuities, and massive hidden commissions
7:47 Regulation gaps and misleading “no commission” language
8:15 Investment advisors (RIAs) and the fiduciary standard (with caveats)
9:42 CFP designation—rigorous, but not a guarantee of behavior
10:36 Portfolio reality: “a collection of ideas” vs an actual plan
11:50 Industry trend: slow death of commissions and rise of fee-only
15:13 Listener: retirement portfolio, glide path, and bond confusion
18:15 BND vs Treasuries—risk, diversification, and reality
19:59 Sequence risk strategy—lower equities early, increase later
21:31 2022 bond drop explained (rates, not failure)
23:11 Managing volatility fear—cash buffers vs bond funds
24:01 Practical solution: mix of bonds, CDs, and cash
28:07 Liability Matching Portfolio (LMP) vs “bucket strategy”
31:01 Core takeaway: match short-term needs with safe assets, let rest grow
Questions? Comments? Click!
Don and Tom kick things off with a colorful history lesson on 19th-century “bucket shops,” drawing a sharp parallel to today’s emerging world of tokenized securities—digital representations of stocks traded on blockchain platforms. While proponents tout 24/7 trading and faster settlement, the hosts question the real value, highlighting added complexity, thin trading, pricing deviations, and unclear ownership structures. They frame tokenized investing as a solution in search of a problem—one that primarily serves speculators rather than long-term investors. The episode reinforces a familiar theme: avoid unnecessary complexity, ignore trading temptations, and stick with disciplined, low-cost investing. Listener questions cover whether retirees still need life insurance (generally no, if financially secure) and clarify that rebalancing means selling winners and buying laggards—not chasing losses.
0:05 Intro and setup with historical market story
0:24 Bucket shops explained—early stock market gambling
1:50 Transition to modern “tokenized securities”
2:35 What tokenized stocks are and how they trade 24/7
5:27 Blockchain explained in plain English
6:23 Ownership confusion—what do you actually own?
7:53 Custodian risk and structural concerns
8:33 Pricing issues and thin trading risks
9:01 Tokenization compared to past financial “innovations” (CDOs)
10:54 Why investors should ignore tokenized securities
11:26 New call-in system for podcast listeners
12:03 Listener question: keep or drop term life insurance in retirement
13:02 Why life insurance is unnecessary for financially secure retirees
15:05 Listener question: selling losers vs. rebalancing
16:05 Proper rebalancing strategy explained (sell high, buy low)
17:31 Jack Bogle philosophy—do less, win more
Questions? Comments? Click!
This episode shifts from investing to the growing threat of scams—especially targeting older adults—breaking down how common fraud tactics work, from fake virus alerts and spoofed calls to AI-driven voice cloning and recovery scams. Don and Tom emphasize a simple but powerful rule: if you didn’t initiate the contact, assume it’s a scam, and never act under pressure. The conversation then pivots to listener questions, covering how to construct a globally diversified portfolio with proper U.S./international balance, how to structure fixed income for retirement income needs, and why investors should resist the urge to “take winnings” after gains—focusing instead on long-term discipline and occasional rebalancing.
0:05 Scams targeting older adults and why susceptibility increases
1:21 AARP article and life in The Villages as a scam hotspot backdrop
3:05 Fake virus alerts and tech support scams (iPad example, $25K loss)
6:10 Scale of scam losses (older Americans, underreporting, $5B+ impact)
6:48 Common scam types: fake purchases, investment fraud, and urgency tactics
7:23 Caller ID spoofing and law enforcement impersonation scams
8:25 AI voice cloning and evolving scam sophistication
8:39 Call screening tools and reducing scam exposure
9:53 Bank impersonation scams using stolen personal data
11:14 IRS scams—what the IRS actually does (mail only)
11:57 Key defense rule: urgency = scam
12:47 “Recovery scams” targeting prior victims
13:27 Core principle: assume unsolicited contact is fraudulent
14:44 Transition to listener Q&A intro and contact methods
16:07 Portfolio construction: balancing U.S. vs international exposure using ETFs
18:00 Fixed income strategy: BND vs CDs, money markets, income buckets
19:26 Listener question: should you “take profits” after gains?
20:03 Why long-term investing ≠ gambling (stay invested vs timing)
21:39 Exception: rebalancing vs profit-taking
22:38 Historical perspective on long-term economic growth
Questions? Comments? Click!
This Q&A episode tackles a mix of practical retirement and investing questions, starting with why spousal Social Security benefits rarely change the core advice to delay claiming. Don explains the limits of basic retirement calculators versus more robust planning tools, then reassures a late-starting saver that simple, low-cost investing (like target-date funds) often beats complexity. A listener’s story about $242 stock commissions leads into a blunt reality check on day trading (spoiler: still a losing game), while another question explores how and when to share wealth details with adult children. The episode wraps with a clear affirmation of total-market investing—and a striking demo of AI audio cleanup that turns an unusable question into something crystal clear.
0:11 Intro to Q&A format and how listeners submit questions
1:32 Social Security spousal benefits and why they rarely change the “delay” strategy
4:13 What to look for in retirement calculators (and best free options)
6:43 Late-start saver with pension: Roth strategy and keeping investing simple
10:58 $242 commissions and the fall of high-cost brokerage trading
12:00 Day trading reality: why most lose (and why firms loved it)
14:57 Sharing wealth details with adult children and choosing a financial “leader”
18:00 AI audio enhancement demo—bad recording vs. cleaned version
19:06 Total market investing: owning everything vs. chasing winners
22:22 Wrap-up and advisor offer
Questions? Comments? Click!
This episode opens with a blistering takedown of sensationalized financial media, using a Kiplinger income piece as the latest example of how risky, high-fee junk bond products get dressed up as safe income solutions for yield-hungry investors. Don and Tom explain why bonds are supposed to provide stability, not speculative upside, and why chasing eye-popping payouts usually means swallowing hidden risk, ugly expenses, and stock-like volatility. They then pivot to listener questions on building a teen’s Roth IRA, whether Avantis or Dimensional funds make more sense than Vanguard for a small/value tilt, and why their website still shows mutual funds more prominently than ETFs, before wrapping with some loose studio banter and a reminder to send questions through TalkingRealMoney.com.
0:04 Rant on terrible financial advice and declining media trust
0:24 Criticism of Kiplinger and “investment porn” content
1:08 Concerns about newsletter-driven incentives
2:35 Warning against using short-term returns
4:13 Breakdown of Nuveen Multi-Asset Income Fund and unrealistic yield claims
5:08 Junk bond exposure and credit risk explained
6:18 Expense shock: 0.03% vs 3.38%
7:18 High yields = high risk reality
8:01 “Safe income” claim debunked
8:57 Collapse risk in downturns
9:37 Core principle: risk and return are linked
10:38 Fed/yield curve speculation criticism
10:56 Purpose of bonds: stability vs yield
11:27 Bonds as capital preservation, not return drivers
12:05 Example of high-cost junk bond ETF
12:12 Fewer trustworthy financial sources
13:16 Stop consuming financial media noise
13:38 Do something better with your time
14:32 Listener: teen Roth IRA strategy
16:33 Recommendation: AVGV single-fund approach
17:40 Fund-of-funds diversification explained
18:38 Listener: Vanguard vs Dimensional Fund Advisors / Avantis
19:45 Case for small/value tilt
21:59 Listener: ETF vs mutual fund inconsistency
24:12 Simple portfolio: DFAW / AVGE + BND
25:11 Studio banter and mic technique
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In the final hour of the radio show, Don and Tom blend nostalgia with a blunt reality check—highlighting the looming Social Security shortfall that could force 20–25% benefit cuts within a decade. They explore politically painful solutions (tax increases, benefit reductions, later retirement ages), while reinforcing their core investing philosophy: ignore fear-driven moves like chasing gold, stay diversified, and avoid market timing. Listener calls drive discussions on fiduciary advice, ethical investing dilemmas, and planning for less financially engaged spouses. The show closes with gratitude, humor, and a transition to a podcast-only future—same mission, fewer commercials, and more freedom.
0:05 Aging perspective and how quickly decades pass
2:28 Social Security crisis and projected 20–25% benefit cuts
4:46 Proposed fixes: higher taxes, later retirement, reduced COLA
7:11 Caller considers switching from index funds to gold
8:17 Why gold is a poor long-term investment
11:10 Market timing is impossible to do consistently
15:07 Fiduciary vs. non-fiduciary advisors (Fidelity discussion)
17:16 “Best interest” standard vs. true fiduciary duty
21:26 Listener reminder: stay the course during market fear
24:03 Ethical investing and whether profits justify harm
27:32 ESG limitations and the difficulty of “pure” investing
28:52 “Pay yourself first” as foundational financial advice
31:23 Listener gratitude and behavioral investing success
32:55 Planning for a less-engaged spouse and advisor relationships
34:48 Longtime listener appreciation and show legacy
37:23 Transition from radio to podcast and what changes
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The final live radio episode of Talking Real Money blends nostalgia, listener appreciation, and core investing philosophy. Don and Tom reflect on nearly four decades of broadcasting while reinforcing their timeless message: consistent investing beats prediction. Using a simple S&P 500 example, they illustrate how discipline—not brilliance—builds wealth. They address current market declines with calm realism, urging listeners to ignore noise and stick to a plan. Calls cover everything from podcast transition logistics and annuity sales traps to credit freezes, tax surprises from brokerage accounts, and when to fire an advisor—ending the radio era exactly as it ran: practical, skeptical, and relentlessly investor-first.
0:04 Emotional opening and end of the radio era
0:46 Show history back to 1988 and investing perspective
1:55 $500/month S&P 500 example → ~$3.1M outcome
2:43 Market fears vs long-term investing reality
5:16 Podcast growth to #43 in U.S. investing category
6:40 Market drop discussion and “what should you do?”
7:29 Core advice: plan, ignore predictions, stay disciplined
8:57 Podcast call-in format going forward (Car Talk style)
11:01 How to challenge annuity salespeople effectively
13:22 Call from Paul Merriman reflecting on legacy
16:55 Listener success story: Roth IRA to $500K
20:32 Credit score drop and how to check/freezes
26:35 Why freezing credit is a smart default move
27:47 Tax shock from brokerage gains and hidden trading issues
32:11 Warning signs of poor advisor behavior (Wells Fargo case)
34:08 When to fire an advisor (fees, complexity, value gap)
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This episode mixes studio banter with a surprisingly substantive look at education and investing trade-offs. Don and Tom walk through data on the lowest-paying college majors, highlighting that many bachelor’s degrees—especially in education and the arts—start and stay low in income unless paired with advanced study. They push back on the idea that college isn’t worth it, citing Federal Reserve data showing higher lifetime earnings, better job stability, and longer life expectancy for graduates, while emphasizing the real danger: taking on large debt for low-paying fields. Listener questions cover Roth conversions (worth considering carefully within tax brackets), why 529 plans still beat so-called “Trump accounts,” and the flaws in covered-call income ETFs like JEPI—ultimately reinforcing their core philosophy: ignore gimmicks, focus on total return, and keep investing simple.
0:04 Almost-live intro from “studio” (aka broom closet) and end of radio era
2:10 Lowest-paying college majors and why outcomes vary
3:23 Pharmacy (without grad school) and theology incomes
4:22 Social services, performing arts, and education pay realities
5:42 Liberal arts debate—value vs. earning potential
7:42 Biology, hospitality, psychology, and other $45K careers
9:22 Should you skip college? ROI vs. cost and debt
10:44 Federal Reserve data on college ROI and lifetime earnings
11:48 Job stability, longevity, and socioeconomic effects of degrees
12:42 Mid-career earnings—education still lags badly
14:32 The real issue: debt vs. income mismatch
16:45 Roth conversion question—when it might (and might not) make sense
19:21 529 plans vs. “Trump accounts” for kids’ savings
20:59 Covered call ETFs (JEPI, etc.) and income strategy pitfalls
22:06 Why income-focused funds don’t reduce risk
23:07 Expense drag and hidden costs in “income” ETFs
24:14 Gimmick investing vs. simple total return strategy
25:43 Bellevue weather, Lyft misadventure, and wrap-up
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A lively Friday Q&A kicks off with some unintended voice effects courtesy of Don’s grandkids before diving into listener questions on money market funds versus high-yield savings accounts, Roth vs. traditional 401(k) decisions in high tax brackets, expense ratios in fund-of-funds like Avantis ETFs, the limited value of international bonds, the reality behind indexed annuity caps, and whether investors should ever move beyond simple one-fund portfolios. The throughline: keep it simple, understand risk vs. safety, and don’t overestimate your ability to outsmart well-constructed investment strategies.
0:04 Grandkids + Rodecaster voice effects open
1:55 HYSA vs. Schwab money market funds (SWVXX, Treasury MMFs)
3:54 Risk spectrum: prime vs. government money markets
5:35 Why some online banks are ditching ACH transfers
6:54 Roth vs. traditional 401(k) in a high tax bracket
8:11 Blended strategy and tax flexibility over time
10:21 AVGV expense ratio—are fees stacked?
10:47 Fund-of-funds pricing explained (no double dipping)
11:41 International bonds: worth it or unnecessary complexity?
13:22 Indexed annuity caps—can they go up? (the reality)
15:33 Why indexed annuities remain opaque and costly
16:08 One-fund portfolios vs. DIY allocation thresholds
17:42 Why simplicity often beats customization
18:47 Don’s own one-fund 401(k) approach
19:32 Plug: Short Storyverses podcasts
20:06 Plug: Financial Fysics Kindle release
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The idea of a universal “retirement number” gets dismantled as misleading and overly simplistic, with Don and Tom arguing that retirement planning is deeply personal and depends on spending, income sources, and lifestyle. They walk through a practical way to calculate your own number—starting with real spending, subtracting Social Security and any pension, and determining what your portfolio must generate—while warning against blind reliance on rules like the $1 million target or aggressive withdrawal rates. The episode also tackles listener questions on ETF expense differences, early retirement withdrawal rules, and a real-world case involving retirement income and long-term care planning, emphasizing conservative strategies and the importance of housing equity in later-life care decisions.
0:04 The myth of “your retirement number”
0:28 Why $1 million became the default—and why it’s wrong
2:17 Inflation and the erosion of the “millionaire” benchmark
2:39 The only correct answer: “it depends”
3:17 The 4% rule origin and its limitations
4:04 How to actually calculate your retirement number
4:55 Northwestern Mutual’s $1.26M average—and cost skepticism
6:11 Reality check: most retirees don’t have pensions
6:46 The real starting point—what you actually spend
8:11 Reverse engineering your withdrawal needs
8:31 Why 6%+ withdrawal rates are dangerous
9:10 The truth about “safe” withdrawal rates
10:12 The importance of saving 15–20% early
10:41 New website podcast player and listener access
12:49 ETF expense differences: VBR vs VSIAX discussion
16:03 Rule of 55 vs. substantially equal payments
17:24 Listener case: $72K IRA and long-term care planning
18:35 Why $72K won’t cover care—housing becomes the asset
19:34 Conservative investing for near-term care needs
20:45 Reverse mortgage as a care funding strategy
22:23 Upcoming change: live listener calls on Fridays
23:52 Free portfolio review offer (fiduciary advisors)
24:51 Joke math on annuity commissions
25:47 Closing thoughts and transition to podcast-only futur
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As Talking Real Money moves into its final week on terrestrial radio, Don and Tom mix transition talk with a practical rundown of common retirement myths. They push back on the idea that expenses automatically fall in retirement, warn that Social Security was never meant to cover everything, and explain why relying on the market alone can be dangerous when withdrawals begin. Callers bring in questions about the sketchy-sounding Quantum X trading platform, required minimum distributions, whether a high-income worker can retire at 62, ETF bid/ask spreads, and where to hold bonds when a 401(k) offers outrageously expensive fund options. The episode also doubles as a preview of how listeners can keep calling and interacting once the show becomes podcast-only.
0:04 Final countdown to the end of the radio show and shift to podcast-only
1:55 Retirement myths theme introduced
2:37 Myth #1: You’ll need less money in retirement
4:02 Myth #2: Social Security will cover most of your needs
5:41 Myth #3: The market will do all the heavy lifting
7:21 Caller asks about Quantum X; Don and Tom warn it looks like nonsense or worse
9:27 Simple alternative offered: broad diversification with VT
10:52 Caller asks about RMD confusion across multiple accounts
12:01 Advice to simplify scattered retirement accounts
13:58 More digging into Quantum X raises additional scam concerns
16:13 Caller asks if he can retire at 62 with substantial savings and pension income
17:21 Don presses on actual spending, not income, as the key retirement measure
21:23 Myth #4: You’ll be able to work as long as you want
23:34 Myth #5: Taxes will be much lower in retirement
26:13 Podcast listening gets easier through the website and apps
29:22 Caller asks about ETF bid/ask spreads, especially DFAW versus VT
32:55 Caller asks where to hold bonds when 401(k) bond fund costs are absurdly high
35:12 After-hours pricing explains bizarre ETF spread quotes
36:37 Example of a shockingly expensive Transamerica bond fund
38:04 How listeners can keep calling and participating after radio ends
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With geopolitical tension rattling markets and investors stampeding into cash, gold, and energy, Don and Tom step back to deliver a familiar message: nobody knows what’s next—and anyone claiming otherwise is selling something. They walk through the behavioral traps of market timing, explain why diversification (especially beyond U.S. large caps) is quietly doing its job, and highlight the role of small cap and micro-cap stocks as part of a broader portfolio—not a silver bullet. Along the way, they mix in listener calls, practical tips (including liquidity strategies and avoiding irreversible investments), and a running acknowledgment that while their radio era is ending, the core mission—keeping investors from doing something dumb—isn’t going anywhere.
0:04 CBS Radio shutdown vs. TRM leaving radio—industry shift toward podcasts
1:32 War-driven market anxiety: money flows to cash, gold, and energy
2:54 Interest rate expectations flip—uncertainty dominates
3:16 Jason Zweig warning: beware “I know what’s next” pitches
4:24 Market timing trap—getting back in is the real failure point
5:37 Diversification reality—why global exposure smooths outcomes
7:08 Financial Fysics Kindle release and podcast transition reminders
9:53 “Retirement Plan” film event plug and discussion preview
13:37 Listener question: small cap value vs. large cap performance
15:44 Correlation explained—why asset classes don’t move in lockstep
16:29 Small cap value premium—historical outperformance rationale
21:49 Micro-cap ETF discussion (DFMC)—extreme diversification option
24:47 Caution: aggressive funds are optional, not necessary
27:52 Listener success story—laddering cash with CDs for caregiving
33:40 Core advice: avoid irreversible financial decisions
34:49 Liquidity matters—dangers of annuities and illiquid investments
35:55 Wall Street “new ideas” skepticism—most benefit the seller
36:21 Final push: transition to podcast-only format
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The housing market is stuck in an unusual freeze, driven by the lingering effects of ultra-low COVID-era mortgage rates, reduced housing inventory, and sharply higher income requirements for buyers. With fewer people moving, less new construction, and more all-cash purchases, affordability has deteriorated and first-time buyers are older than ever. Don and Tom argue that homeownership is often overrated as an investment and suggest renting may be the more rational choice for many. They also tackle listener questions on Robinhood’s 2% transfer bonus (tempting but tied to a five-year lockup), comparisons between today’s market and 1929 (very different structurally), and the limits of 529-to-Roth conversion strategies. Along the way, they remind us that humans—like chimps—are irresistibly drawn to shiny objects, which often leads to poor financial decisions.
0:04 Housing market shift and mortgage demand decline
1:18 COVID-era rates and the “locked-in homeowner” effect
2:23 Inventory shortage and collapse in new construction
2:41 Income needed to buy a home jumps dramatically
3:27 First-time buyers getting older and priced out
4:21 Why the housing market feels “frozen”
5:35 Mortgage rates vs. psychological anchoring to 2% loans
6:23 Advice: rent before buying in uncertain markets
7:36 Flexibility in location and housing expectations
9:20 Helping family vs. accepting renting as a long-term solution
10:05 Why homeownership is not a great investment
11:05 Hidden and unpredictable costs of owning vs. renting
11:56 Possible long-term shift toward renting culture
13:46 Robinhood 2% transfer bonus—too good to be true?
15:13 The five-year lockup and real cost of “free money”
16:38 Temptation vs. trust issues with Robinhood
17:18 Listener question on 1929 comparisons
18:25 Why today’s market is fundamentally different from 1929
20:34 Extreme leverage and speculation in the 1920s
22:03 Regulatory differences and modern safeguards
23:32 529 plan to Roth IRA conversion rules explained
24:47 Beneficiary changes reset the 15-year clock
25:29 “Shiny object” behavior and investing mistakes
27:12 Human nature, speculation, and financial decisions
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Don fields listener questions on asset allocation, advisor timing, and investing complexity with his usual bias toward simplicity and self-awareness. He emphasizes that the decision to add bonds isn’t about age but about emotional tolerance for loss, shares his own shift to a more conservative 55/45 portfolio, dismisses futures markets as largely speculative noise for most investors, and advises a listener nearing retirement that while there’s no urgency to hire an advisor, the value of planning—especially around taxes and income strategy—becomes increasingly important in the early 60s.
0:04 Thunderstorm intro and Q&A format setup
1:37 100% stock portfolio—when (and how) to add bonds
5:47 Don’s personal portfolio breakdown and evolution
10:25 Futures markets explained (and why to ignore them)
13:00 When to hire a financial advisor approaching retirement
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Morningstar’s latest research nudges the “safe” withdrawal rate down to 3.9%, but Don and Tom make it clear there’s no magic number—just tradeoffs. They walk through fixed vs. flexible withdrawal strategies, why spending adaptability matters more than rules of thumb, and how your goals (spend vs. leave money behind) shape everything. Listener questions tackle bond fund choices (yield vs. stability), portfolio allocation math, and whether an advisor should pay for a costly tax mistake (short answer: yes).
0:04 The big retirement question: how much can you safely withdraw?
0:32 Morningstar updates the “4% rule” to 3.9%
0:55 Why their baseline uses a conservative 40/60 portfolio
1:59 Overview of multiple withdrawal strategies (guardrails, RMDs, etc.)
3:13 Why rules of thumb fail real people
4:17 Flexible withdrawals vs. fixed income strategies
5:43 Spending more vs. leaving more—values drive the decision
6:36 Why professional planning still matters (even for pros)
7:38 What Morningstar data shows about spending vs. ending balances
9:05 The real key: flexibility in retirement spending
10:22 RMD strategy—high spending, low legacy
12:36 Listener Q: Active vs. index bond funds (yield vs. quality)
15:09 Why bonds are about stability, not returns
17:13 Listener Q: Portfolio allocation math (70/30 breakdown)
17:58 How much international exposure is “right”
19:44 Listener Q: Advisor mistake causing tax penalties
21:20 Should advisors reimburse errors? (yes—and they usually will)
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The show opens with a major announcement: Talking Real Money is leaving terrestrial radio and going fully podcast-only, marking the end of a 16-year Saturday run. A heartfelt surprise call from Don’s wife Debbie reflects on decades of friendship, trust, and listener connection before the tone pivots back to business. The main topic takes aim at perpetual crash predictors like Robert Kiyosaki, dismantling their track records with hard numbers and highlighting the absurdity of market timing. The episode then shifts to a real-world HOA investing debate, using it as a case study to expose the risks and illusions behind “buffered” or “guaranteed” return products. The core message is simple and consistent: if it sounds too good to be true—especially anything promising safe double-digit returns—it is.
0:04 Major announcement: show leaving radio, moving fully to podcast
0:34 Surprise call from Debbie with emotional tribute
2:13 Reflection on 16 years, trust, and listener impact
3:15 Don and Tom respond to Debbie and reflect on friendship
5:16 Setup: can anyone actually predict a market crash?
6:41 Media fear machine and constant crash headlines
7:44 Kiyosaki’s predictions vs real market performance
9:52 “25 of the last 2 crashes” and the contrarian indicator joke
11:05 Why crash predictions persist and attract attention
12:29 Other fear-based forecasts and why they don’t help investors
13:29 Program note: transition to podcast-only and how to listen
14:32 Caller: rebuilding an emergency fund vs investing
15:58 How to prioritize emergency savings vs brokerage contributions
16:55 Managing risk and asset allocation near retirement
17:32 Caller question: how interaction will work in podcast format
18:57 New system for listener calls and recorded conversations
21:40 HOA story: pressure to invest reserves in complex products
22:54 Explanation of buffered/structured investment products
24:06 Hidden tradeoffs: capped upside, partial downside protection
25:00 Unknown risks and 2008 comparison
25:47 “Do you know who I am?” moment and advisor pushback
27:01 Reality check: no such thing as guaranteed 10% returns
27:27 Simple logic: if 10% were safe, no one would take 4%
28:59 “People lie about money” and incentives in finance
30:12 Listener email: estate planning and Tom’s Starbucks joke
32:09 RetireMeet recording availability and follow-up
34:08 Podcast reach vs YouTube performance
35:28 How to listen and interact with the show going forward
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As Talking Real Money prepares to leave terrestrial radio and become a podcast-only show, Tom and Don pivot from logistics to a deeper issue: the growing financial fragility of retirees. With fewer than 3% of Americans over 65 holding $1M in retirement savings and bankruptcy rates rising among seniors, they explore whether the shift from pensions to 401(k)s helped or hurt. While critics call 401(k)s a failed experiment, the hosts argue the real problem is behavior, education, and lack of early saving. Listener calls reinforce the divide—some are planning wisely in their 30s, while others highlight rising costs, lack of savings, and economic strain. The episode closes with practical withdrawal strategy discussion, a sobering look at consumer stress from a car dealer’s perspective, and a reminder that markets can’t be timed—only prepared for.
0:04 Show moving to podcast-only format; listeners urged to switch now
1:55 RetireMeet recap and airline misery detour
2:44 Retirement reality: few have $1M; rising senior financial distress
4:46 Are 401(k)s a failed experiment? Origins and debate
7:47 Start early: advice for younger savers and families
8:05 Listener JJ: podcast loyalty, missing question glitch
10:47 How call-ins will work after radio show ends
12:06 “Retirement isn’t a switch” — easing into fewer workdays
13:52 Jason: loss of live call-in routine and future logistics
16:53 James (35): starting early and influence of Paul Merriman
20:13 Dave: cost of living, lack of savings, generational habits
23:01 Education gap: financial literacy and modern retirement problem
24:57 Retirement is new: life expectancy and historical context
27:03 Forced savings idea vs behavioral reality
28:11 Caller portfolio: withdrawal strategy, RMDs, tax sequencing
31:59 Importance of personalized planning vs rules of thumb
34:41 Car dealer insight: credit tightening, consumer stress signals
34:59 Market reality: recessions inevitable, timing impossible
36:21 Final push: shift to podcast listening and how to access
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This Friday Q&A episode tackles several thoughtful listener questions covering 401(k) investment choices, Roth conversion strategies, bond market fears, inherited IRA planning, and investment club mechanics. Don explains why opaque collective investment trusts and “cycle” funds often hide market-timing strategies, cautions against making large Roth conversions based on predictions about future tax rates, and reassures investors worried about inflation and national debt that markets already incorporate widely known risks. The episode closes with a practical endorsement of a listener’s strategy to gradually withdraw from an inherited IRA to fund Roth contributions, emphasizing simplicity, discipline, and avoiding emotionally driven portfolio decisions.
0:04 Don realizes the intro still says “radio” even though the show is now mostly a podcast.
0:26 Friday Q&A format explained and reminder to submit questions at TalkingRealMoney.com.
1:00 Question 1: 33-year-old with $330k in a 401(k) invested in opaque “intermediate cycle” and wealth-preservation funds.
2:26 Don explains collective investment trusts (CITs) and why their lack of transparency is problematic.
5:25 Market-timing strategies disguised as “cycle” funds and why simple equity funds may be better.
6:47 Question 2: Listener corrects earlier discussion about transferring securities from investment clubs.
8:37 How in-kind transfers can avoid capital gains when leaving an investment club—depending on club rules and brokerage policies.
10:31 Question 3: Complex Roth conversion strategy involving IRMAA tiers and future tax assumptions.
14:31 Don warns against making large conversions based on predictions about future tax rates.
16:07 Why gradual conversions preserve flexibility compared with large upfront tax bets.
17:28 Question 4: Concern about national debt and whether to replace BND with VTIP (TIPS).
18:56 Don argues markets already price known risks like debt and inflation expectations.
20:11 How TIPS work and when they actually help investors.
21:46 Reminder that emotional reactions to economic fears often lead to bad portfolio decisions.
22:10 Question 5: Using withdrawals from an inherited IRA to fund Roth IRA contributions.
22:52 Strategy: withdraw gradually to fund Roth contributions while staying within tax brackets.
24:15 Don endorses the plan as simple, tax-efficient, and compliant with the 10-year inherited IRA rule.
25:09 Closing comments and reminder to submit questions.
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Exchange-traded funds began as simple, low-cost index vehicles, but their popularity has sparked a flood of increasingly speculative products. Don and Tom explain how more than 1,000 new ETFs launched in the past year—many involving leverage, crypto exposure, or even single-stock bets—turning what was once a sensible investment wrapper into a playground for risky financial engineering. They discuss why firms are rushing into ETFs to capture investor dollars, how leveraged products can devastate portfolios, and why investors must focus on what’s inside an ETF rather than the label itself. The episode also answers listener questions about the cost structure of Avantis’s AVGE fund-of-fund ETF, strategies for gradually escaping tax-inefficient mutual funds like American Funds, and the rules governing cost-basis transfers when moving brokerage accounts.
0:04 ETFs used to be simple—now Wall Street is turning them into gambling products
1:24 Explosion of new ETFs: 1,000 launched in a year and most offer nothing new
3:07 Why firms are rushing into ETFs: chasing the $1.5 trillion flowing into them
4:23 Leveraged crypto ETFs (like 2× Dogecoin) and how investors lost 70% quickly
6:15 Greed, leverage, and investor behavior driving risky ETF products
7:48 The absurd rise of single-stock ETFs—paying fees to own one stock
8:55 Leveraged commodity ETFs and the danger of massive one-day losses
9:45 Margin speculation and the historical lesson of the 1929 crash
10:31 An ETF is just a wrapper—what’s inside determines whether it’s sensible
11:51 Simple rule: avoid ETFs charging more than about 0.35% annually
12:08 Using Morningstar to check ETF costs and holdings
14:26 AVGE question: how fund-of-fund ETF expenses actually work
16:47 Escaping tax-inefficient mutual funds like American Funds
19:56 Capital Group’s ETF strategy vs traditional loaded mutual funds
22:28 Cost basis rules when transferring accounts between custodians
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In this Friday Q&A episode, Don answers four listener questions covering fund recommendations, special-needs financial planning, retirement withdrawal strategy, and tax-efficient health savings. First, he addresses whether Talking Real Money receives commissions for mentioning Avantis and Dimensional funds (they do not) and explains why those firms’ evidence-based strategies stand out. A second caller asks about planning for a child with a lifelong disability, prompting Don to stress the importance of working with a specialist attorney to establish structures such as special-needs trusts and ABLE accounts. Another listener questions whether all-in-one funds complicate retirement withdrawals, but Don argues that simple portfolio withdrawals beat complex optimization strategies. The episode closes with a teacher nearing retirement asking whether drawing from a 457 plan to keep funding an HSA is worthwhile, which Don notes can create a powerful tax advantage similar to a Roth conversion.
0:05 Friday Q&A intro and reminder to submit voice questions at TalkingRealMoney.com
0:50 Listener asks whether Don and Tom receive commissions for recommending Avantis or Dimensional funds
1:33 Don explains the evidence-based origins of Dimensional and Avantis and confirms there are no commissions or compensation
4:15 Caller asks how to financially plan for a child with a lifelong neurological disability
5:15 Don stresses the importance of working with a special-needs attorney and explains tools like ABLE accounts and special-needs trusts
7:09 Listener asks whether all-in-one funds like VT or AVGE create problems when withdrawing money in retirement
8:27 Don argues simplicity is better than optimization and recommends withdrawing from the portfolio as a whole rather than trying to pick winners
10:49 Teacher retiring at 54 asks whether it makes sense to withdraw from a 457 plan to continue maximizing HSA contributions
12:38 Don explains how using taxable withdrawals to fund an HSA can effectively create a Roth-like tax benefit
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A debate over jelly bean flavors quickly pivots into a takedown of a flashy Inc. Magazine article claiming people shouldn’t save for retirement. Don and Tom dissect the “cash-flow over investing” pitch from entrepreneur Joseph Drups, exposing the realities of running small businesses, the risks behind claims of passive income, and the likelihood that the real money comes from selling the system rather than executing it. The conversation then turns to listener questions, including the differences between Avantis ETFs AVGE and AVTM and a thoughtful inquiry about whether factor investing from firms like Avantis and Dimensional justifies higher fees compared with traditional cap-weighted index funds.
0:04 Jelly bean debate returns: Costco Jelly Belly flavors, jalapeño surprises, and the “Pepto-Bismol” mystery bean
1:58 Inc. article claims you shouldn’t save for retirement
2:45 Entrepreneur Joseph Drups’ “cash-flow over investing” strategy
4:08 The myth of passive income from small businesses
5:46 Valuing a business vs. claiming low net worth
7:17 Reality check: most small businesses fail
10:06 Drups Ventures model and e-commerce brand acquisitions
11:10 The $100/month “Fast FI Club” and selling the system
13:55 Entrepreneurship vs. unrealistic promises of passive income
15:28 Impatience and the risks of chasing quick financial independence
16:44 Listener question: Avantis AVTM vs. AVGE
19:11 What actually defines a “true” index fund
23:06 Bogleheads critique of smart beta and factor strategies
24:08 Evidence for small-cap and value premiums since 1926
27:18 Fees vs. expected factor premiums
28:00 Recency bias and long periods when factors underperform
30:53 Raisin Bran bag conspiracy theory and aging complaints
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Broadcast from RetireMeet 2026 in Bellevue, Don and Tom reflect on the evolution of retirement planning—from a narrow focus on investments to a broader conversation about purpose, relationships, and life after work. They interview Paul Merriman, who discusses portfolio construction, the role of small-cap value stocks, risk tolerance, and long-term investing discipline. The conversation also explores withdrawal strategies, market history, and how investor behavior during downturns often determines success more than asset allocation itself. The episode closes with a major announcement: the Talking Real Money radio show will end in April and transition fully to a podcast format with five weekly episodes.
0:27 Reflections on the event and praise for speakers like Christine Benz and Paul Merriman.
1:54 Growing focus on purpose and lifestyle in retirement, not just money.
3:11 Audience turnout and attendees traveling from across the country for RetireMeet.
3:51 The importance of a holistic approach to retirement planning including relationships and lifestyle.
5:25 Estate planning conversation and the uncomfortable reality of thinking about life after we’re gone.
6:01 How to listen to the podcast and transition from radio listening to podcast apps.
6:41 Introduction of Paul Merriman and discussion of portfolio construction and asset classes.
8:15 Understanding risk tolerance and balancing portfolios for different ages.
9:41 Investor behavior during crises like 2008 and the tech crash of 2000–2002.
10:32 Cap-weighted vs equal-weighted S&P 500 and tax implications.
11:48 Why investors should document how they feel during market highs and lows.
12:06 Using nearly 100 years of market data to understand future volatility.
14:42 The evolution of financial planning from investment management to comprehensive planning.
16:19 Financial education gaps and rising bankruptcy rates among retirees.
18:00 Debate over whether 401(k)s replaced pensions successfully.
20:52 Merriman explains small-cap value investing and why unpopular stocks can outperform.
23:12 Why most investors don’t hold small-cap value despite historical advantages.
26:11 Long-term investing and the importance of patience through underperformance cycles.
28:24 Withdrawal strategy research showing dramatic compounding over long periods.
30:05 Whether future market returns can resemble historical returns.
31:41 The danger of reacting to news headlines and wars when investing.
33:52 Talking Real Money radio show ends in April and shifts to a podcast-only format with five episodes weekly.
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Broadcast live from RetireMeet in Bellevue, Don announces that after nearly four decades of Saturday radio shows, Talking Real Money will end its live radio run on March 28 and continue exclusively as a podcast. The episode features conversations with Joe Saul-Sehy of Stacking Benjamins and Morningstar’s Christine Benz about how people should approach retirement. The central theme is flipping the traditional process: design the life first and the money second. Guests emphasize “play-testing” retirement activities before leaving work, gradually transitioning into retirement rather than stopping abruptly, maintaining strong social connections, and keeping purposeful work or learning in later life. The discussion closes with Benz’s practical financial steps for retirement planning, including tracking spending, accounting for Social Security and pensions, and using flexible withdrawal strategies supported by fiduciary advice.
0:04 Live broadcast from RetireMeet in Bellevue and show introduction
2:58 Don announces the end of the Saturday live radio show after nearly 40 years
3:59 Transition to a podcast-only format beginning in April
4:43 How listeners can switch to listening via podcast apps or the website
6:41 Introduction of Stacking Benjamins host Joe Saul-Sehy
8:09 Discussion of Stacking Benjamins community meetup groups
9:25 Trivia detour about the $500 bill featuring William McKinley
9:36 Joe’s retirement philosophy: design the life first, then the financial plan
10:56 “Begin with the end in mind” when planning retirement
11:23 The concept of “play-testing” retirement activities before retiring
13:51 Warning about AI impersonation podcasts and fake financial shows
15:20 Joe Saul-Sehy’s career change after selling his advisory firm
16:37 Discovering a passion for teaching about money through media
17:33 Continuing meaningful work rather than fully retiring
18:07 Humor about a future podcast called “Two Old White Guys Waiting to Die”
18:48 Core message: experiment with retirement interests now
19:38 Christine Benz of Morningstar joins the conversation
21:04 Retirement as more than leisure—importance of purpose
21:59 Gradually transitioning into retirement during your 50s
22:58 Shaping work to emphasize what you enjoy most
24:21 Christine’s approach to scaling back work travel
26:22 Lifelong learning through podcasting and interviews
27:49 Whether it’s okay not to retire if you enjoy your work
28:27 Relationships and social connection as the key to retirement happiness
29:40 Introverts and maintaining meaningful friendships
30:05 Research on aging, happiness, and social environments
31:28 Discussion about the future of retirement communities
33:56 Christine’s three key financial steps before retirement
34:42 Calculating retirement spending and non-portfolio income
35:22 Safe withdrawal rates: 3.9% fixed vs flexible strategies near ~5.7%
36:09 The value of fiduciary financial advisors in retirement planning
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Don and Tom start with the classic “jelly beans in a jar” experiment to explain the wisdom of crowds and why large groups often produce surprisingly accurate predictions. That idea leads to a discussion of modern prediction markets like Kalshi and Polymarket, which sometimes outperform professional economists when forecasting things like GDP, inflation, or Federal Reserve decisions. But the hosts emphasize that these predictions ultimately don’t matter to investors, pointing instead to the long-term evidence that active fund managers consistently fail to beat the market. They highlight massive investor flows away from active funds toward index and rules-based strategies and remind listeners that successful investing is far simpler than many believe: save regularly, diversify broadly, keep costs low, and avoid emotional decisions. Listener questions cover tax-efficient asset location across account types, retirement withdrawal strategies including the 5% variable rule, and why short-term differences between funds like AVUV and DFAS are largely irrelevant.
0:04 Jelly beans and the “wisdom of crowds” analogy
2:24 Prediction markets and why crowds sometimes beat expert forecasts
3:29 Research showing prediction markets rival or outperform professional economists
6:01 Why gamblers may make better predictions than professional forecasters
7:04 Betting on prediction markets themselves and recession/interest-rate predictions
8:08 Why economic predictions ultimately don’t matter for investors
8:19 $1 trillion outflow from active mutual funds and the shift to passive investing
9:39 SPIVA data showing 98% of active funds underperform over 10 years
10:46 Index funds vs “rules-based” or evidence-based funds
11:43 The dramatic shift from active to index investing over the past decades
12:41 Why investors don’t need forecasts to succeed
14:28 Listener question: Asset allocation across taxable, IRA, and Roth accounts
17:14 Listener question: RMD timing and the 5% variable withdrawal strategy
20:36 How the 5% variable withdrawal approach works in retirement
22:36 Listener question: AVUV vs DFAS performance differences
24:48 Why short-term performance comparisons are largely meaningless
26:15 Market timing losses despite a strong 2025 market
27:10 Final reminder: No one can predict the future, not even brokers
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AI hype is colliding with financial reality. Don and Tom examine Elon Musk’s suggestion that artificial intelligence could create such abundance that retirement savings might become unnecessary. They unpack the economics behind universal basic income, including the staggering cost—even a modest payment would require trillions in new revenue—and explain why most Americans aren’t betting their futures on Silicon Valley promises. The episode also answers listener questions about confusing target-date fund holdings, what to do with an overfunded 529 plan, and how to reduce taxable investment distributions by placing assets in the right accounts. Along the way they revisit lessons from past technological revolutions, discuss the importance of work beyond income, and continue their campaign against the scourge of gas-powered leaf blowers.
0:04 AI panic and Elon Musk’s claim that AI could make retirement savings unnecessary.
1:52 Musk’s vision of AI-driven abundance and universal income replacing traditional retirement planning.
3:36 The practical question: who actually pays for universal income checks?
5:30 Historical tax rates in the 1960s vs. today’s marginal tax structure.
6:21 Survey shows 94% of readers still plan to save despite AI predictions.
7:17 Boston College researchers warn Musk’s comments send a dangerous retirement message.
8:23 Why universal basic income would require major government policy and taxes.
8:45 Past technology revolutions didn’t distribute wealth evenly.
9:27 Why humans need work for purpose, not just income.
10:33 The math problem: even $1,000/month UBI would require about $3.1 trillion annually.
11:54 Historical comparison to the Luddite era and displaced workers.
13:18 Listener question: What “short-term debt and net other assets” mean in a Fidelity target-date fund.
17:38 Listener question: Overfunding a 529 plan and potential Roth rollover strategies.
20:45 Listener question: Using Vanguard Tax-Managed Balanced Fund to reduce taxable distributions.
23:28 Asset location strategy: placing bonds in IRAs and stocks in taxable accounts.
24:49 Where to easily find mutual fund returns using Morningstar.
25:46 Tom’s Scottsdale advisory meetings announcement.
26:45 The crusade against gas-powered leaf blowers.
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Financial education is expanding nationwide—but much of it is still teaching speculation instead of investing. Don and Tom critique stock-picking contests, flawed risk frameworks, and misleading “active vs. passive” framing, while arguing for evidence-based investing and early Roth contributions as the true foundations of financial literacy. They break down the compounding power of a 529-to-Roth strategy, address custodial transaction fees when selling mutual funds, caution against performance chasing in emerging markets after a major rally, and help a caller navigate moving an elderly parent’s CD out of a low-yield bank account. The through-line: education is powerful—but only if it’s grounded in reality.
0:04 Financial education expanding nationwide—but stock-picking contests still dominate curricula.
2:14 Why stock games teach trading, not investing. Own the market instead.
3:32 Federal Reserve curriculum critique—risk scales and “active vs passive” framing.
6:10 Teach teenagers Roth IRAs early. Time is the superpower.
7:36 Questionable risk ratings—growth stocks equated with collectibles.
9:17 Efficient Market Hypothesis in plain English—luck vs insider info.
10:45 529 plans and Roth rollovers—$35K opportunity.
11:37 Compounding example—$35K to nearly $2M tax-free over 40+ years.
15:43 Withdrawing from a Vanguard target-date fund—costs and custodian fees.
20:07 Performance chasing—emerging markets surge after tariff ruling.
23:13 South Korea’s role and Avantis outperformance.
28:40 Helping an elderly parent move a $200K CD—avoid automatic rollovers.
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Don and Tom revisit the eternal temptation to beat the market, dismantling the appeal of equal-weight indexes and active management claims by highlighting implementation costs, tax drag, and decades of underperformance data. They explain why diversification isn’t about bragging rights but smoother returns and disciplined risk management. Callers tackle portfolio rebalancing for a multimillion-dollar account (with a strong case made for elegant simplicity), sibling stock-picking rivalries, and small-business 401(k) options
0:04 Beating the market. Four decades of “sure things” that weren’t.
2:44 Equal-weight vs. cap-weight. Smart idea… until costs show up.
4:58 Why diversify beyond the S&P 500. Smooth ride over bragging rights.
6:03 Theory vs. reality. Execution costs ruin beautiful strategies.
7:30 Active managers as “teammates.” The SPIVA reality check.
15:43 Small-business 401(k)s. More options, Vanguard pricing breakdown.
20:59 Caller Dan: Rebalancing a $3M portfolio. Simplicity wins.
28:33 Caller Glenn: “My brother beats the market.” Luck vs. skill.
33:56 Caller Dale: Virtual access and post-event recordings.
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This episode dives into the surprisingly emotional world of fixed income investing, exploring whether traditional bond funds like BND still make sense or if newer laddered bond ETFs offer a psychological edge by returning principal at a set maturity date. Don and Tom unpack how these ETFs compare to CD ladders, why capital gains should never be expected from bonds, and how investor psychology often drives the preference for “certainty.” They also congratulate Dimensional Fund Advisors on reaching $1 trillion in assets, discuss whether laddering target-date funds makes planning easier or just more complicated, and answer listener questions about transferring accounts from Morgan Stanley to Vanguard and managing tax consequences along the way.
0:04 Bonds vs. crypto — why fixed income feels boring but matters
1:02 Why bonds exist in portfolios (stability, income, not growth)
2:18 Introduction to laddered bond ETFs (Invesco, iShares, Vanguard)
3:51 Bond returns in 2025 and the “don’t expect capital gains” rule
5:03 The psychological problem with bond funds (they never mature)
6:54 How target-maturity bond ETFs differ from traditional bond funds
11:28 Yield comparisons across laddered maturities vs. BND
13:14 When laddered ETFs might make sense (income timing, certainty)
15:09 Dimensional Fund Advisors reaches $1 trillion in assets
19:57 Listener: Laddering target-date funds instead of bonds
23:19 Listener: Transferring IRA and taxable accounts to Vanguard
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On this Friday Q&A episode, Don answers listener questions on international stock overweighting inside a Seattle city retirement plan, whether a Vanguard target-date fund might be a smarter emotional guardrail than self-managing allocations, how much term life insurance a family really needs (hint: it’s about replacing income, not funding Ivy League dreams), whether an aggressively small-value–tilted Avantis portfolio is too risky for a disabled early retiree, and how to evaluate a $36,000 pension annuity versus a $500,000 lump sum using withdrawal math instead of Monte Carlo optimism. The recurring theme: feelings aren’t an edge, discipline beats prediction, and structure matters more than conviction.
0:09 Fewer recorded questions lately and how to submit them
1:41 Seattle city employee overweighted in international stocks
3:36 Why “historic pivots” and gut feelings aren’t an investing edge
4:50 Target-date fund vs. self-built allocation
7:27 Using small-cap/value funds alongside a target-date fund
9:15 Risk tolerance vs. emotional market timing
10:53 How much term life insurance is enough?
12:35 Replacing income vs. funding lifestyle extras
12:44 Aggressive Avantis (AVGV/AVGE/AVNV/DFAW) portfolio review
15:50 What happens if your portfolio drops 50%?
17:10 Pension choice: $36k annuity vs. $500k lump sum
21:29 The 41-year math on the lump-sum difference
22:52 Why lump sum often makes you the “insurance company”
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Vanguard slashes fees again, pushing its average expense ratio down to six basis points. Don and Tom contrast that with outrageously expensive ETFs charging 2% to 14% annually, walk through why evidence-based factor funds cost a bit more than pure index funds, answer listener questions about international tilts and fund-of-funds rebalancing, and clarify why diversification across assets still matters more than fee-chasing alone.
0:04 Vanguard cuts fees again — average expense ratio now 0.06%
3:43 What expense ratios really are (and how many investors unknowingly overpay)
5:00 The shockers: ETFs charging 2% to 14% annually
11:13 Comparing Vanguard index costs vs. Avantis and Dimensional factor funds
14:41 Why anything above ~0.35% for passive/rules-based investing is likely too much
16:03 The “Militia” ETF: 14% fee, poker background, no real track record
19:46 Listener: Increasing international exposure inside IRA/Roth
21:35 Clarifying fund-of-funds vs. multiple funds for rebalancing
23:18 Why Avantis and Dimensional include mid-cap, REITs, and bonds
27:25 Evidence-based investing isn’t just about returns — it’s about correlation and volatility control
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This episode focuses on smart portfolio construction across multiple accounts, using AVGV to complement limited 401(k) options, and why allocation should be viewed holistically. A caller debates stretching into a later target-date fund, prompting a discussion about risk versus actual retirement need. Crypto is challenged as speculation rather than investment. Dividend strategies and bond placement inside Roth IRAs are examined. A muni bond question reinforces the value of patience. The show closes with a humorous but pointed critique of the UFO ETF and broader thematic fund hype.
0:04 AVGE vs. AVGV — why adding global value can offset a 401(k)’s large-cap bias
5:02 Think one portfolio — asset allocation should span every account
8:18 2045 vs. 2060 target-date funds — only take the risk you actually need
11:20 Crypto challenge — utility, politics, and “I’m up” aren’t investment theses
14:48 SCHD in a Roth — dividend chasing and why bonds usually don’t belong there
18:54 Roth contribution ideas — avoid overlap, consider value exposure
20:11 Selling an individual muni — bid/ask spreads and the case for just holding
26:50 The UFO ETF — defense stocks wrapped in alien hype
31:01 $800B in thematic ETFs — headlines aren’t a strategy
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This episode moves from the origin of “rule of thumb” to why most investing rules of thumb don’t work for real people. Tom and Don explore a Yale professor’s personalized allocation model, walk through tax-smart strategies for funding a child’s car while managing Roth conversions and capital gains, warn about liquidity risks in private credit after restrictions at Blue Owl Capital, explain how to structure IRA withdrawals through disciplined rebalancing, and close by addressing market-timing anxiety for retirees sitting heavily in cash. The through-line: simple rules are comforting, but thoughtful planning beats shortcuts every time.
0:04 What “rule of thumb” really means and why investing is full of them
2:17 60/40, 100-minus-age, and why simple formulas fall short
3:16 Yale professor James Choi’s personalized allocation formula
4:35 Why a 25-year-old probably should be nearly 100% in stocks
6:25 Spreadsheets vs. real-world investors
9:39 Portugal caller: funding a daughter’s car purchase tax-efficiently
13:28 Roth conversions, 12% bracket strategy, and zero capital gains planning
16:46 Rebalancing opportunity: selling VTI vs. Schwab Intelligent Portfolio
19:16 Private credit warning: liquidity restrictions at Blue Owl Capital
23:45 The illusion of “safe” high returns in private lending
26:53 IRA withdrawal strategy: sell winners when rebalancing
29:35 Annual vs. monthly withdrawal discipline
31:34 60/40 vs. 70/30 — how much difference really matters
33:32 Retirement income simplification: fewer funds, easier rebalancing
34:48 Seattle caller: $1.45M in money market and market-timing temptation
36:18 Why market timing fails and when an advisor earns their keep
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Don and Tom examine Kiplinger’s list of top retirement side gigs and separate practical ideas from pipe dreams, questioning whether executive coaching, IT consulting, online reselling, and landlord life truly offer “passive” or realistic income. They highlight more viable options like tutoring, handyman work, and tour guiding while emphasizing purpose over paycheck. Listener questions cover the risks of private credit and alternative investments, plus smart strategies for consolidating multiple 401(k) accounts without triggering unintended tax consequences.
0:04 Old guys still podcasting intro
1:38 Kiplinger’s retiree side-gig list
3:26 Executive coaching reality check
4:40 AI and tech consulting skepticism
6:32 Consulting and client ego problems
7:53 AI vs. content writers
9:06 Bookkeeping for small businesses
9:29 Online selling isn’t easy money
11:19 Tutoring as a steady option
12:17 Handyman work pays well
13:44 Tour guide opportunities
14:17 Landlord myth of “passive” income
16:00 Where to find side gigs
16:47 Bridge jobs for healthcare
17:08 Purpose-driven retirement
19:14 Private credit and alternative risks
23:46 Consolidating multiple 401(k)s
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After a bump in crypto-fueled listener calls, Don tackles a mix of practical and philosophical money questions: why Fidelity’s new “stablecoin” isn’t an investment at all, whether a heavily conditioned city 401k match is worth the risk versus a flexible Roth 457, how to safely reposition an 85-year-old’s idle savings without sacrificing liquidity, and why actively managed mutual funds can generate painful surprise tax bills. The episode closes with the return of Bitcoin Bob, sparking a spirited debate over whether Bitcoin is a currency, a commodity, or a “store of wealth” — and whether something that swings 50% qualifies for that title.
0:04 Crypto episode follow-up, listener call surge, and AI voice processing update
1:52 Fidelity’s new stablecoin FIDD — why it’s pointless for investors
3:41 City retirement plan dilemma: conditional 401k match vs. Roth 457 flexibility
8:24 When complicated employer matches aren’t worth the hoops
9:31 Helping an 85-year-old move idle savings — high-yield savings vs. brokerage
11:40 Janus mid-cap fund capital gains surprise and ETF tax efficiency
13:11 Why mid-cap alone isn’t diversification — broader ETF alternatives
15:19 Bitcoin Bob returns: currency vs. commodity vs. “store of wealth”
19:53 Volatility reality check — why Bitcoin fails the store-of-wealth test
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Vanguard lowers fees yet again, pushing its average expense ratio down to just six basis points — a move that underscores how dramatically fund costs have fallen over time. Don and Tom contrast this with shockingly expensive ETFs charging double-digit annual fees and explain why those costs are nearly impossible to overcome. They unpack the difference between pure index funds and factor-based funds like Avantis and Dimensional, clarify common confusion around rebalancing and fund-of-funds strategies, answer listener questions about increasing international exposure, and explain why evidence-based investing includes diversification across bonds and real estate — not just stocks. The episode reinforces a core message: fees matter far more than most investors realize, especially the ones they never see.
0:04 Vanguard cuts fees again — average expense ratio now just 0.06%
1:23 Brief detour into model aircraft before returning to money talk
3:43 Fund expense ratios explained — what investors are really paying
5:00 The shock factor: ETFs charging 12%–14% annually
10:08 Why ultra-high expense ratios are nearly impossible to justify
11:13 Vanguard vs. factor funds — why Avantis and Dimensional cost more
14:41 The invisible cost problem — how expense ratios quietly drain returns
16:03 Militia Long Short ETF (ORR) — high fees, no track record
21:02 Listener question: Increasing international exposure inside IRAs
23:03 One fund vs. multiple funds in taxable accounts — rebalancing clarification
24:09 Why Dimensional and Avantis offer mid-cap, REIT, and bond funds
25:51 Evidence-based diversification beyond equities
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Don and Tom tackle S&P 500 concentration risk and the dominance of the Magnificent Seven, explaining why diversification still matters despite compelling active management narratives. They clarify the difference between currency and investment in a pointed Bitcoin vs. U.S. dollar discussion, then pivot to fixed income strategy—highlighting why low-cost, large-scale bond funds like BND often outperform higher-fee “active” alternatives that quietly take more credit risk. Listener calls cover 401(k) catch-up contributions, bond ETF selection for retirement income planning, and whether using excess RMD funds for Roth conversions really adds value after taxes and IRMAA considerations. As always, the theme is disciplined investing over storytelling.
0:04 Technical chaos intro and why better investing still matters
1:32 S&P 500 concentration risk and the “Magnificent Seven” problem
2:40 The dangerous “but” in diversification pitches
3:43 Small, value, and momentum factors explained briefly
5:33 Active management as narrative creation
9:57 Bitcoin vs. U.S. dollar as currency vs. investment
13:29 What actually makes something an investment
15:08 Bond ETFs for retirement years 5–8: BND vs. Avantis
17:42 Why bond fund size and expenses matter
21:36 Active bond ETFs, credit risk, and hidden tradeoffs
25:38 401(k) catch-up contributions clarified
30:21 Roth conversions, RMD strategy, and tax math realities
34:09 IRMAA considerations and Medicare premium surprises
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Don and Tom dissect a Morningstar article naming the “best core stock funds” for 2026, noting the sharp decline in recommended actively managed funds and the dominance of low-cost index funds. While they applaud the shift away from expensive stock pickers, they argue Morningstar’s “core” approach still leads to unnecessary complexity and heavy large-cap (especially S&P 500) concentration, with little exposure to small-cap, value, and emerging markets. They advocate instead for simple, globally diversified, factor-tilted funds like DFAW, AVGE, or AVGV. Listener questions cover switching from AVGE to AVGV inside an IRA (risk tolerance matters), improving a 32-year-old’s 401(k) allocation (use a Roth IRA to add small/value exposure), and a sharp analogy comparing passive investing to driving with traffic rather than weaving aggressively for no gain.
0:04 Investing in a “wonderful world” by ignoring noise
1:14 AI audio tools that may replace editors (and shorten meetings)
5:06 Morningstar’s 2026 “Best Core Funds” list shifts toward indexing
6:39 Why “core” still means large-cap heavy and incomplete diversification
9:50 The problem with piling into multiple S&P 500 funds
12:14 Why Dimensional and Avantis are missing from the list
13:26 One-fund global solutions: DFAW, AVGE, AVGV
17:44 Listener analogy: aggressive driving vs. active investing
19:08 IRA question: Switching from AVGE to AVGV and risk tolerance
20:34 32-year-old’s 401(k) allocation and using a Roth IRA to add small/value
28:40 Retirement workshop plug and who should attend
30:21 Free fiduciary advice vs. actually hiring an advisor
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In this Friday Q&A episode, Don introduces a new AI audio enhancement tool that dramatically improves the sound quality of listener questions, then dives into a series of practical retirement issues. He tackles whether converting a $2 million term life policy to whole life after a disability makes sense (and what must be guaranteed in writing), explains how to properly freeze a deceased parent’s credit and handle inherited POD accounts and IRAs under the 10-year rule, pushes back on the increasingly discussed “bond trough” retirement strategy by emphasizing emotional risk over theoretical logic, and closes with reassurance for listeners considering retiring part-time in Mexico, explaining how U.S. retirement accounts, tax treaties, and global banking make the process far simpler than many assume.
0:04 Friday intro and new AI tool that dramatically improves caller audio quality
2:01 Whole life conversion offer after disability — “free” premiums and what to demand in writing
5:57 How to submit spoken questions and call-in info
6:22 After a parent’s death: credit freezes, deceased alerts, and final credit reports
7:41 Inheriting POD accounts and an IRA — step-up in basis and the 10-year IRA rule
9:57 AVGE vs. AVGV fake-out and real question: bond “trough” strategy in retirement
11:24 Logical vs. emotional risk tolerance — why most retirees can’t handle 50% drawdowns
13:40 Retiring internationally (Mexico example) — IRAs abroad, tax treaties, and practical
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Markets may feel calm despite geopolitical noise, but uncertainty is the permanent condition of investing—and the price of admission for higher returns. Don and Tom unpack Jason Zweig’s reminder that investors hate uncertainty (tough), discuss the surge in speculation from leveraged ETFs to prediction markets, and explain why “play money” accounts should stay small. They field listener questions on building an investment policy statement, rebalancing without sabotaging returns, simplifying overly complex ETF portfolios, choosing international small-cap exposure, and setting up custodial accounts (with a nod to Roth IRAs for working teens). The core message: take only the risk you need, not the risk your inner con man wants.
0:00 The podcast that never ends; investors hate uncertainty
1:19 Jason Zweig revisits 2008 and the permanence of market uncertainty
3:16 Calm markets, speculative behavior, and the rise of prediction markets
6:00 “Play money” accounts and the danger of confusing gambling with investing
8:18 Take the risk you need—not the risk you want
9:05 Writing down how you feel during downturns
11:51 Listener question: Rebalancing and creating an Investment Policy Statement
17:09 25-year-old portfolio review: Too much complexity, wrong tilts
20:27 International small-cap choice: AVDV vs. AVDS
23:26 Custodial accounts for teens and the Roth IRA opportunity
26:10 RetireMeet 2026 promotion and event details
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Talking Real Money opens with a stark illustration of why Bitcoin fails as a usable currency, showing how volatility can destroy real-life budgets overnight. Don and Tom compare crypto to historic speculative bubbles, argue that stability—not hype—is the core function of money, and dismantle the “store of value” narrative. The show then shifts to practical listener calls covering CD ladders, Treasury yields, retirement readiness, estate planning, and early-retirement balance. Throughout, they emphasize boring, diversified, evidence-based investing over speculation, reminding listeners that long-term financial security comes from discipline, planning, and emotional restraint—not chasing the next hot trend.
0:04 Bitcoin paycheck scenario and real-world income collapse
1:04 Currency volatility vs. household budgeting reality
2:22 Bitcoin’s 45% drop and “currency vs. speculation” argument
3:24 Hyperinflation examples and why stability matters
4:03 “Greater fool” theory and vanishing crypto hype
4:47 Why Bitcoin fails as a functional currency
5:59 Tulip mania and historical bubbles comparison
6:59 Tangible assets vs. pure speculation
7:39 “At least you can live in a house” argument
8:26 Michael Saylor, HODL culture, and empty promises
9:30 NFT collapse and Beeple example
10:11 Crypto returns vs. real assets
11:14 Listener question: CDs vs. Treasuries
12:22 Current CD rates and Bankrate reference
13:56 Risks of long-term bonds and rate changes
15:32 Don’s real CD ladder example
16:37 Fixed income diversification strategy
18:35 Hot money leaving crypto for prediction markets
19:45 Generational blind spots and bubble psychology
21:08 Retirement planning call: housing proceeds and savings
23:57 Social Security timing and cash-flow planning
25:41 Importance of fee-only fiduciary planning
27:32 Vernita Toll Bridge digression (classic TRM)
30:33 Estate planning: wills vs. trusts
33:49 RetireMeet promotion and resources
35:43 FIRE listener call: saving vs. living balance
38:58 Permission to spend responsibly
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0:04 Dow hits 50,000 while most stocks lag—why it’s a meaningless headline
0:59 Robinhood and Palantir slide—speculators start getting nervous
1:39 Jason Zweig on low-volatility funds—and why timing them is a trap
1:55 Why the Dow is a terrible “index” built on 1890s math
3:22 Diversified portfolios quietly up nearly 6% YTD in early 2026
3:32 Small-cap value up 13%—the payoff of long-term discipline
4:05 “We didn’t predict this”—why diversification beats market bragging
4:54 Portfolios should already be built for downturns
5:10 The danger of reacting after markets “stumble”
7:09 Average vs. median net worth—why averages mislead
8:26 How billionaires distort financial statistics
9:09 “Lies, damned lies, and statistics” origins
10:06 AI-enhanced listener call audio and Friday Q&A podcast
10:37 DFFVX vs. AVUV—Dimensional vs. Avantis small-cap value
13:33 Why track records don’t matter for similar funds
13:53 Super Bowl sirloin cooking advice
15:17 Whole life insurance review—why to cash out in retirement
17:08 When cash-value insurance makes sense (rarely)
19:22 Surprise downloads of Christmas stories in February
20:57 Caller asks about “set-it-and-forget-it” investing
24:26 Risk tolerance when retiring soon
26:08 Using AVGE for global diversification
27:48 Why near-retirees should get professional reviews
30:28 Emergency funds—never use a Roth
31:37 High-yield savings accounts around 4%+
34:11 Portfolio balance and realistic expectations
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Don and Tom step away from pure investing talk to explore how AI, layoffs, and stagnant wages are reshaping career paths—especially for young people and midlife career changers. Drawing on a Wall Street Journal article, they make the case that skilled trades and blue-collar careers are increasingly attractive alternatives to vulnerable white-collar jobs. They discuss service advisor roles, union trades, and apprenticeship paths, then pivot to listener questions on Robinhood bonuses, switching to financial advising later in life, and the risks of moving from AVGE to AVGV. Throughout, they emphasize self-knowledge, discipline, and long-term thinking—whether choosing a career or building a portfolio.
0:04 Why this episode is about earning money, not just investing
0:31 Encouraging parents to rethink college-only career paths
1:15 AI, layoffs, and the shrinking white-collar job market
2:32 Crash Champions and the rise of service advisor careers
3:31 Don’s dealership days and why he left the car business
5:12 Learning to drive stick shift the hard way
6:46 Apprenticeships, $60K starting pay, and growth potential
7:34 Work-life balance in blue-collar vs. white-collar jobs
8:36 Why contractors struggle with communication and planning
9:05 Demand for skilled trades and handyman services
9:47 Labor shortages: factory, construction, and auto techs
10:36 Demographics and the retirement of skilled workers
11:35 Pensions, unions, and taking responsibility for retirement
12:45 Finding yourself in your 20s and career experimentation
13:04 New Tales Told plug and early radio career story
14:23 Listener: Robinhood bonuses and disciplined investing
15:41 Why Robinhood encourages risky behavior
17:23 Listener: Becoming a financial advisor at 55
18:31 Barriers to entry and starting an independent RIA
19:14 Why people skills matter more than math skills
20:45 How AI will reshape the advisory profession
22:07 Shift from brokerage to fiduciary advising
23:18 Listener: Switching from AVGE to AVGV
24:47 Risk tolerance and fund volatility
26:31 Splitting funds and managing behavioral risk
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In this Friday Q&A episode of Talking Real Money, Don tackles five thoughtful listener questions ranging from confusing 401(k) collective investment trusts and investment club withdrawals to Roth conversion strategies, inflation fears in bond portfolios, and inherited IRA planning. Along the way, he emphasizes transparency over opacity, flexibility over prediction, and discipline over emotion. Don pushes back against fear-driven investing decisions, cautions against large tax moves based on uncertain futures, explains when TIPS do (and don’t) make sense, and praises a listener’s smart inherited IRA-to-Roth strategy.
Note: listener call audio has been enhanced with a new tool, making callers sound almost like they’re in the studio. Let us know what you think.
0:04 Podcast vs. radio intro, Friday Q&A format, and improved caller audio quality
1:00 How listeners submit questions through TalkingRealMoney.com
1:44 33-year-old with $330K in a 401(k) and confusing collective investment trusts
4:26 Why “intermediate cycle” funds are market timing in disguise
6:47 Investment club withdrawals and in-kind transfers after Schwab/TD merger
9:23 Why there’s no universal rule for investment club distributions
9:58 Complex Roth conversion plan and IRMAA concerns
14:31 Why large Roth conversions rely too heavily on tax predictions
16:59 The case for slow, flexible, incremental conversions
17:28 National debt fears and switching from BND to TIPS
20:47 When TIPS actually help and why panic reallocations fail
21:46 Emotional control as the core investing skill
22:10 Inherited IRA strategy to fund Roth contributions
24:15 Why spreading withdrawals over 10 years makes sense
25:09 Listener growth, competition with Stacking Benjamins, and call to action
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Don and Tom take on Elon Musk’s claim that AI will make retirement saving obsolete, pushing back hard on the idea that technology or billionaires will somehow fund everyone’s future. They examine why universal basic income is politically and mathematically unrealistic, remind listeners that past tech revolutions didn’t magically create widespread wealth, and reinforce the importance of steady, diversified investing. The episode also tackles listener questions on HSAs, 529 rollovers, taxable account strategy, and tax efficiency, while weaving in commentary on work, purpose, behavior, and—once again—the ongoing menace of gas-powered leaf blowers.
0:04 Fear of AI and its supposed impact on money and jobs
1:52 Elon Musk’s claim that retirement saving will become irrelevant
2:59 Why billionaires don’t like sharing wealth
4:29 Historical tax rates and wealth distribution
6:21 Business Insider survey: 94% still plan to save
8:45 Why tech revolutions don’t eliminate financial risk
9:59 Work, purpose, and retirement psychology
10:33 Universal basic income math and tax reality
11:54 Luddites and historical job displacement
12:55 Listener questions segment begins
13:18 HSA invested in Fidelity target-date fund
17:38 Overfunded 529 plans and Roth rollover rules
20:45 Taxable account strategy and balanced funds
23:28 Asset location and tax efficiency
24:49 Finding fund returns on Morningstar
25:46 Tom’s Scottsdale meetings
26:45 War on gas-powered leaf blowers
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Tom and Don break down why gold, silver, and individual stocks remain speculative distractions rather than reliable investments, using recent volatility in precious metals and Microsoft as cautionary examples. They explain how globally diversified portfolios helped investors stay steady while fear-driven assets whipsawed. The show tackles retirement allocation risks, high-cost target date funds, and how much risk retirees may actually need to take. Listener questions cover 401(a) rollovers, withdrawal strategies, rebalancing after a decade, tax treatment of tips, collective investment trusts, teacher retirement plans, and high-yield savings accounts—reinforcing the case for low costs, broad diversification, and disciplined investing.
0:04 Why gold and silver are speculation, not investments
1:19 Precious metals crash and volatility reality check
3:11 Microsoft drop and risks of single-stock investing
4:40 Fear, home bias, and global diversification
7:12 Birthday story and listener banter
8:31 Elaine’s 401(a) and risky target-date fund allocation
11:24 High expense ratios vs. low-cost index options
12:47 Retirement income needs and withdrawal risk
14:04 Monte Carlo results for 60/40 portfolios
15:56 Tips income, taxes, and rebalancing questions
18:03 Standard deduction and real tax impact
23:39 Capital Group CIT vs. Vanguard index funds
25:21 Downsides of collective investment trusts
28:08 403(b)WISE and school district plan ratings
29:55 Teacher retirement plan advocacy
32:32 High-yield savings account recommendations
34:18 Rebalancing after 10 years
35:17 Asset location and tax efficiency
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In this episode of Talking Real Money, Don and Tom dig into the Washington State pension system’s heavy exposure to private equity, sparked by Jason Zweig’s Wall Street Journal reporting and a Seattle Times investigation. They explain why high fees, opaque valuations, and lack of liquidity make private equity especially dangerous for public retirement funds—and why Washington leads the nation in risk. The conversation expands to compare pension strategies across states, question governance and oversight, and warn retirees about the real-world consequences of excessive risk. Later, the hosts respond to a listener trapped in a high-fee, actively managed portfolio and variable annuity, illustrating how costs and complexity quietly erode wealth. The show wraps with practical retirement guidance inspired by Warren Buffett—simplify and protect—plus a discussion of converting mutual funds to ETFs for greater efficiency.
0:04 Show open, call-in invitation, and setup on private equity
0:32 Jason Zweig’s WSJ reporting on private equity fees and markups
1:25 Washington State pension’s heavy private equity exposure
3:23 Valuation and liquidity problems in private equity
4:35 Breakdown of WA pension assets (private equity + real estate)
5:18 Risks of market downturns and illiquidity
6:25 Who’s overseeing the pension fund and their qualifications
7:06 Concerns for Washington retirees and contributors
8:28 Board “experts” and potential conflicts of interest
9:55 Difficulty exiting private equity investments
11:06 Questioning reported 12.3% returns vs public markets
11:59 Call for political accountability and reform
12:50 Comparison to states using mostly public index funds
13:35 Why private equity suffers most in downturns
14:22 Comparison of pension private equity exposure by state
15:58 Rebalancing and “emperor’s clothes” concern
17:07 Caller Luke reacts to pension risks
18:11 Promotion of RetireMeet and retirement education
19:22 Warren Buffett’s retirement advice: simplify and protect
20:28 Risk reduction and advisor role in retirement
21:26 Fiduciary standards and conflicts of interest
22:55 Emphasis on simple, protective portfolios
23:07 Caller Jane asks about high advisory fees
24:40 Discussion of “active management” risks
26:12 Review of proposed funds and red flags
29:57 Analysis of high-fee, high-turnover portfolio
30:57 Concentration and volatility concerns
32:16 Variable annuity warning signs
33:37 Commission conflicts and surrender charges
33:57 Recommendation to change advisors
34:56 Recap of excessive fees and risks
36:33 Importance of honest warnings vs future losses
37:48 Question on converting Vanguard mutual funds to ETFs
38:52 Advantages of ETFs: cost, tax efficiency, liquidity
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In this episode of Talking Real Money, Don and Tom take aim at “magical” high-yield investments, focusing on why junk bond funds often behave more like risky stocks than stable bonds. Drawing on research from Larry Swedroe, they explain how high fees, high turnover, and economic sensitivity undermine the appeal of high-yield funds—especially during recessions. They reinforce the core principle that higher returns always mean higher risk and argue that investors are usually better served taking risk in equities and safety in high-quality bonds. Listener questions cover HSAs in retirement, Roth IRAs for young investors, backdoor Roth conversions, and the Vanguard Star Fund. The episode closes with discussion of RetireMeet 2026 and the importance of long-term, disciplined investing.
0:04 Opening: Wanting high returns with no risk
1:02 Introduction to “magical” high-yield investments
1:10 Larry Swedroe’s research on junk bond funds
2:20 Investment-grade vs. high-yield bonds explained
4:29 Bankruptcy risk and bondholder losses
5:49 Returns, volatility, and stock-like behavior
6:36 Risk-adjusted returns and Sharpe ratios
7:47 Why passive beats active in junk bonds
8:35 2008 losses in high-yield funds
9:36 “Yield is for farmers” and risk perspective
10:42 Why higher yield always means higher risk
11:08 Bonds as portfolio ballast
12:17 Why equities are better for risk-taking
12:27 HSA investing for medical expenses
13:56 Roth IRA for grandson with long time horizon
15:18 Backdoor Roth conversion tax question
17:57 Vanguard Star Fund discussion
19:03 Active vs. index fund comparisons
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In this Friday Q&A episode, Don answers listener questions on handling backdoor Roth conversions with investment gains, whether Avantis or Vanguard makes more sense for bond investing, and why 529 plans have become even more attractive with new Roth rollover rules. He also tackles a puzzling report of inflated ETF pricing on Vanguard’s platform, urging further investigation, and reassures a listener concerned about AVGE’s diversification compared to VT. Along the way, Don emphasizes the importance of low fees in fixed income, the long-term logic behind factor investing, and the reality that taking additional risk is what creates the potential for higher returns.
0:04 Friday Q&A intro and plea for more listener questions
1:44 Backdoor Roth with gains—how to handle taxable growth
6:01 Avantis vs. Vanguard for bond funds and why fees matter more in fixed income
8:00 Using 529 plans for kids and new Roth rollover rules
11:19 Odd ETF pricing on Vanguard and why it makes no sense
13:38 AVGE vs. VT diversification concerns and factor investing explained
18:24 Risk, factor tilts, and long-term expectations
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Don and Tom examine the long disciplinary history of former broker James Tuberosa and his attempt to reinvent himself as a registered investment advisor through a newly formed firm, highlighting how fiduciary language can be used to mask conflicts driven by insurance commissions. They walk listeners through the importance of reading Form ADV disclosures and explain how regulatory gaps allow questionable practices to continue. The episode reinforces the principle of “buyer beware” before shifting to listener questions on saving for major expenses, evaluating high-fee annuities for elderly retirees, Roth IRA investing for young adults, and the advantages modern investors enjoy from lower costs and better diversification. The show closes with reflections on financial literacy, generational investing improvements, and a preview of RetireMeet 2026.
0:05 Opening and setup: broker misconduct story
0:10 James Tuberosa’s career and long record of complaints
1:14 FINRA expulsion and failed expungement lawsuit
2:42 How complaints get quietly “settled”
3:51 Shift from broker to RIA status
4:49 Skyview Pinnacle and the “clean” front
5:48 Using fiduciary language as marketing cover
7:17 Why insurance escapes SEC oversight
8:22 Conflicts disclosed in ADV
9:19 Why disclosures matter
10:47 Warning signs: promises and product pitching
12:01 Weakness of fiduciary protection
13:08 Ethical failures at large firms
14:38 Fiduciary vs. commission contradiction
15:36 Why reading ADVs protects investors
16:17 Transition to listener questions
17:16 Sinking funds: investing vs. saving
18:40 Planning for major home repairs
19:36 Elderly couple and complex annuity
21:01 Risks of high-fee variable annuities
22:36 Best Roth IRA investment for young adults
23:24 Advantages for today’s investors
24:58 Lower costs and better diversification today
26:38 Historical perspective on investing access
28:10 Listener engagement and contact info
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Don and Tom break down why hedge funds’ so-called “comeback” doesn’t justify their massive fees, showing how simple index portfolios continue to outperform. They challenge the idea of allocating even small amounts to speculative assets like Bitcoin, emphasizing academic research and real-world risk. The show covers Roth TSP strategies for young federal employees, the importance of international diversification, and why overcomplicated portfolios rarely add value. They also dismantle “Power of Zero” and life insurance retirement schemes, exposing their sales-driven motives. Throughout, Don and Tom reinforce their core message: disciplined saving, diversification, and simplicity beat hype, sales pitches, and emotional investing every time.
0:20 How the live radio show becomes a “magical” podcast and why Don controls the edit
1:55 Wall Street Journal hedge fund article feels like advertising
3:28 Hedge fund returns vs. outrageous fees
4:59 How simple 60/40 and 80/20 portfolios beat hedge funds
6:43 Jason in Sammamish and the Tesla/Bitcoin debate
8:11 Why speculative investing hurts regular savers
10:56 Bitcoin, hype, and institutional money myths
11:45 Bessenbinder research and why stock picking fails
13:09 Why money decisions stay emotional
14:03 Micro-cap stock failure rates
15:11 Roth TSP matching and young federal employees
16:32 When Roth vs. traditional makes sense
19:21 Mad Men, old computers, and optimism about the future
21:45 Asset allocation for young investors and AVUV vs. global funds
23:52 Why international investing matters
25:21 The case for simple one-fund portfolios
27:45 Advisors pushing annuities and insurance
29:14 Why LIRPs and “Power of Zero” plans are dangerous
34:43 Exposing insurance-driven “tax-free retirement” marketing
34:55 RetireMeet preview and upcoming events
36:39 Voice-to-text tools and listener questions
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Don and Tom kick off the show with weekend banter and nostalgia about checkbooks before diving into why buying and selling a home remains one of life’s biggest—and most misunderstood—financial decisions. Using a Wall Street Journal quiz, they explore smart pricing, commission negotiations, low-cost home improvements, inspections, seasonal pricing patterns, and even haunted-house disclosures. Along the way, callers ask about life insurance planning, tax-managed accounts, umbrella insurance, and retirement income strategy. The episode emphasizes realistic expectations, low-cost investing, diversification, and avoiding unnecessary fees, while reminding listeners that simple, disciplined decisions usually beat flashy financial “solutions.”
0:04 Weekend open, call-in invite, “no annuity” guarantee, check-writing nostalgia
1:24 Don discovers last checks were written in 2019–2021
2:45 Home buying/selling as life’s biggest transaction
3:20 Overpricing your house and “it’s worth what someone pays”
4:24 WSJ real estate quiz: pricing strategy in slow markets
6:14 Break, banter, and commission quiz setup
7:04 Real estate commissions are negotiable
8:10 Selling by owner and staging realities
9:14 Caller Dustin: debt-free at 27, life insurance, DIY vs advisors
12:41 Planning for life insurance proceeds and beneficiaries
14:06 Zillow estimates and home values
14:43 Caller Joey: SMAs and tax-loss strategies
17:31 Capital gains, housing exemptions, and SMA practicality
19:16 Caller Beth: umbrella insurance for homeowners
22:02 Caller Ron: retirement income, stable value funds, RMDs
25:06 Diversification beyond the S&P 500
26:50 Returning to WSJ real estate quiz
27:43 Best ROI upgrades: paint and curb appeal
28:23 Pre-listing inspections
29:44 When home prices peak (June)
31:09 Haunted houses and disclosure laws
33:43 Listener portfolio: AVGE, AVGV, bonds
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Don and Tom tackle fears about U.S. national debt by breaking down who actually owns it (mostly Americans), why “China owns us” is wildly overstated, and why rising interest costs matter more than sensational headlines. They explain why government debt isn’t a looming foreclosure scenario, how interest payments circulate back to investors, and why politics often distorts financial decision-making. The show also covers 60/40 portfolio resilience, the real role of bonds, listener questions on AVGE and DFAW, investing simplicity, and a nostalgic detour into Spam keys and Mad Men—ending with encouragement for disciplined, long-term investing.
0:05 National debt fears and the “Mr. Potter foreclosing America” analogy
0:27 Holiday movies, Home Alone sequels, and It’s a Wonderful Life
1:13 Who really owns U.S. debt and why it matters
2:50 Japan, UK, and China holdings explained
4:02 Why foreign selling wouldn’t crash the economy
5:13 Most U.S. debt is owned domestically
5:31 Interest payments now exceeding military spending
6:18 What debt interest really costs households
7:19 Why investors shouldn’t panic over government debt
8:15 Politics vs. rational investing decisions
9:55 Debt, taxes, and what society is willing to give up
11:28 Historical tax rates and Mad Men economics
12:37 Military spending and post-WWII budgets
13:22 60/40 portfolios and market downturn protection
14:43 Worst historical declines for balanced portfolios
16:37 Long-term resilience of diversified investing
17:51 Bonds: income vs. volatility control
19:08 Spam keys, Hormel, and changing industries
20:52 AVGE, DFAW, and Apella portfolio structure
22:29 Simplicity vs. complexity in investing
23:47 Podcast longevity and download estimates
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In this listener-driven episode, Don, Tom, and advisor Roxy Butner tackle a wide range of investing questions, starting with the explosive growth of ETFs and why many new funds—especially active, leveraged, and thematic products—may be risky for long-term investors. They discuss whether and how to exit expensive inherited mutual funds, how to use low-income years for tax planning, and why capital gains can still trigger taxes even in sabbatical years. The team reviews a complex multi-fund portfolio, explains the pros and cons of adding growth tilts, and dives into behavioral finance—offering practical ways to resist over-tinkering. They close with guidance for investing inherited money later in life, emphasizing purpose, risk tolerance, and family planning, and preview the upcoming RetireMeet event.
0:04 Intro, listener questions, and why “ETF” is not “EFT”
0:27 ETF growth in 2025 and the rise of active and leveraged funds
1:31 Why most new ETFs worry Tom (active, leverage, speculation)
2:04 Choosing the right ETF: costs, indexing, and long-term focus
3:16 Roxy joins and the listener Q&A begins
3:54 Inherited AIVSX: taxes, donating shares, and switching to ETFs
7:04 Why traditional mutual funds are tax-inefficient
8:14 Sabbatical year strategy and capital gains misconceptions
10:39 When to involve a tax professional
11:31 Portfolio mix: VOO, Avantis, international, and value tilts
12:17 Why adding VUG may increase risk
14:57 Asset location challenges and rebalancing problems
15:22 Behavioral finance: resisting the urge to tinker
19:21 How often to check your portfolio
20:10 Discipline, rules, and systematic investing
21:11 Inherited $300K at age 79: purpose and next-generation planning
23:40 Building a taxable portfolio for heirs
24:40 RetireMeet preview and featured speakers
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Don and Tom open with sports banter and TV talk before diving into state-run retirement savings programs, explaining how auto-enrollment boosts participation and what fees and investment options really look like. They discuss why forced saving works, why Roth structures make sense, and how these plans compare to traditional IRAs. The conversation shifts to the emotional side of retirement, emphasizing purpose, “mattering,” and the mental health risks of disengagement. Listener calls cover annuity sales masquerading as fiduciary advice, helping a widowed parent invest conservatively, and managing old 401(k)s. The show closes with a thoughtful discussion of advisor fee models, self-management, and why planning and tax strategy matter more as retirement approaches.
0:04 Show intro, Broncos talk, Mad Men, and settling in
2:02 Retirement as the biggest lifetime expense
2:47 State-run retirement plans and auto-enrollment
3:47 Who really pays for “free” state plans
4:09 Why Roth-style saving makes sense
6:25 OregonSaves fees and State Street target-date funds
8:07 Limited investment choices in most retirement plans
9:24 Florida has no state savings plan
9:33 WSJ article on purpose and meaning in retirement
11:12 “Mattering” and being needed after retirement
12:19 Longevity after age 65
14:30 Retirement without a plan vs. needing structure
15:36 Depression and suicide risks in older retirees
16:52 Caller: “Fiduciary” selling indexed annuity
17:40 Why annuity pitches violate fiduciary duty
20:20 Knowing yourself before retiring
21:18 Caller: Helping widowed mother invest safely
22:33 When CDs and Treasuries make sense
23:47 Using brokerage CD ladders
26:34 Sports updates and listener mail
27:36 Old 401(k)s and consolidation
30:43 Listener saved $100K/year in advisory fees
31:47 AUM vs hourly vs flat-fee advisors
34:47 Subscription advisors and limited portfolios
35:51 Why advice matters more in retirement
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A chaotic but revealing game-show-style opening leads into a sharp lesson on why market trivia doesn’t matter nearly as much as discipline. Tom and Don walk through eye-opening 2025 market stats, including the real impact of the Magnificent Seven, international stocks’ outperformance, and a surprising Bitcoin result, before pivoting to listener calls on risk aversion in retirement, tax drag in fixed income, ETF vs. mutual fund structure, pensions as “bond substitutes,” and the fear of poorly timed rollovers. The episode reinforces a consistent theme: markets anticipate, investors overthink, and long-term success comes from diversification, cost control, and building portfolios around real human behavior—not headlines.
0:04 Cold open and chaotic “What Do You Know?” game show setup
1:58 S&P 500 return vs. performance without the Magnificent Seven
5:16 Magnificent Seven’s staggering 10-year return
5:48 International stocks outperform U.S. stocks in 2025
7:35 Retired caller weighs SGOV vs. VTEB and tax efficiency
10:01 Risk aversion, inflation fears, and when bonds actually belong
13:11 CD ladders as a stability alternative to bond funds
14:27 Clean energy ETFs rise despite negative policy headlines
16:41 Colombia emerges as best-performing global stock market
18:02 Bitcoin’s surprising full-year decline in 2025
19:02 Why none of this market trivia actually matters
20:28 ETFs vs. mutual funds explained simply and clearly
24:44 Why fund companies resist ETF conversions
27:13 Pension income vs. bonds in portfolio construction
31:20 AI voice experiment and margin rate reality check
32:02 Fear of rolling over 401(k)s and “hodgepodge-itis”
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Most retirees aren’t spending anywhere near what they safely could — often barely 2% of their savings — and that hesitation may be costing them the very retirement they worked for. Don and Tom make the case for permission to spend, walking through why flexible withdrawal strategies beat rigid rules, how the “go-go / slow-go / no-go” years actually play out, and why fear of future healthcare costs often leads to unnecessary deprivation today. Listener questions cover tilted portfolios inspired by Paul Merriman, early-retirement home financing decisions, inheritance timing versus helping kids now, and whether ACATS fraud fears are overblown. The through-line: have a real plan, update it annually, and then — finally — live it.
0:04 You did everything right — now spend some of the darn money
1:06 Retirees spending only ~2% of savings (why this happens)
2:03 Permission to spend is harder than permission to save
3:16 Go-go, slow-go, no-go years (and why front-loading joy matters)
4:34 Healthcare fear vs. actual retirement guardrails
6:19 Helping kids before inheritance (when it matters most)
6:35 Why “winging it” works for some — and fails for most
7:58 Flexible percentage withdrawals vs. fixed rules
8:59 Vacations, Hawaii, and spending after strong market years
10:55 Great Wolf Lodge economics (and parental survival strategies)
13:00 Listener Q: Portfolio tilts (US, SCV, international, EM)
15:49 Listener Q: Downsizing early, mortgages vs. IRA withdrawals
18:34 Liquidity matters more than interest rates pre-59½
21:15 Retirement planning as a map, not a spreadsheet
21:46 Listener Q: ACATS fraud fears and account security
24:40 Why total safety often makes life worse, not better
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This Friday Q&A covers real-world money decisions with real consequences, including how to invest life-insurance proceeds after a spouse’s death, why dividend-and-leverage strategies promoted online are fundamentally dangerous, and how inherited IRA rules actually work under the IRS’s 10-year framework. Don also tackles long-term HSA investing, explains why the 4% rule isn’t a one-size-fits-all solution (especially when advisor fees are involved), and even demonstrates an AI-generated version of himself to explore whether good advice can outlive the human delivering it. Equal parts practical guidance, hard math, and skeptical humor.
0:04 Friday Q&A returns, holiday illness, and how to submit questions
1:04 Investing life-insurance proceeds after a spouse’s death
1:45 Why portfolio allocation depends on income need, taxes, and risk tolerance
3:05 Why a fee-only fiduciary is essential for survivor planning
3:49 Living off dividends using leverage and margin
5:03 Why “paycheck into brokerage + leverage” strategies are dangerous
7:43 Dividend cuts, margin risk, and downturn math reality
9:29 Inherited IRA rules when the original owner had begun RMDs
11:32 The 10-year rule, annual RMDs, and IRS life-expectancy tables
12:48 Listener appreciation and the value of taking money seriously
14:01 How to invest an HSA that won’t be used for years
15:09 Adjusting the 4% rule when paying an advisor
15:54 AI voice demo, advisor value, and Vanguard’s Advisor Alpha
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Retirement income doesn’t have to mean hoarding assets or obsessing over leaving an inheritance. In this episode of Talking Real Money, Don and Tom dig into a topic that still makes many investors flinch: reverse mortgages. Using recent research and real-world planning logic, they walk through why modern reverse mortgages aren’t the shady last-ditch option they once were, how they can reduce cash-flow stress, and when they may (or may not) make sense as part of a broader retirement plan. Along the way, they tackle myths about heirs losing the house, unpack the true costs, and explain why being “house rich and cash poor” is a real planning problem. The show also answers listener questions on bond ladders using iShares iBonds ETFs, critiques Vanguard’s newer fixed-income ETF BNDF, and closes with a reminder that yield chasing — even from respected firms — still carries risk.
0:04 Retirement isn’t about dying rich — it’s about spending your money on you
0:25 Why inheritance shouldn’t be the primary goal (with one important exception)
1:21 Shirt colors, corporate culture, and the last people still wearing white dress shirts
2:48 Smoking everywhere: airplanes, hospitals, grocery stores — and why it mattered financially
4:12 Disney jokes, expensive vacations, and setting the tone
5:08 Introducing the real topic: reverse mortgages
5:15 Why reverse mortgages still scare people — and why that reputation exists
6:44 How FHA regulation changed the reverse-mortgage landscape
7:21 Are reverse mortgages really a “last resort”?
8:14 Using home equity to improve lifestyle, not just survive retirement
8:52 Are reverse mortgages expensive? Breaking down the real costs
10:53 Lending limits, age factors, and how much equity you can actually access
12:39 When the upfront costs make sense — and when they don’t
14:35 Myth busted: heirs can still inherit the home
15:08 You still own your house — it’s just a mortgage with no monthly payment
16:18 Reverse mortgages as liquidity, not a wealth-building tool
16:33 The importance of planning before touching home equity
16:45 $35 trillion locked in U.S. home equity — and why paying off mortgages isn’t always smart
17:57 Downsizing versus staying put: another option entirely
19:59 Listener question: simplifying a complex bond ladder
21:17 Using iShares iBonds ETFs to build a disciplined bond ladder
22:32 The risk of breaking the ladder when rates change
23:41 Listener question: Vanguard’s BNDF ETF
24:44 Why chasing yield in bond funds can backfire
26:06 Gimmicks, relevance, and Vanguard’s shift away from leadership
26:33 RetireMeet 2026 preview and registration details
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This episode dismantles the myth of “one-size-fits-all retirement,” arguing that retirement isn’t a date, an age, or a lifestyle—it’s a personal transition that demands both an income plan and a purpose plan. Don and Tom explore the growing trend of “un-retiring,” why fear and economic anxiety are lousy motivators for going back to work, and how a lack of planning fuels unnecessary worry later in life. Listener questions cover smart uses of 529-to-Roth conversions, parking large sums of cash, Roth strategies for young investors, rebuilding emergency funds without sabotaging retirement, and why converting Vanguard mutual funds to ETFs in taxable accounts is often a no-brainer. The through-line is clear: stop predicting the future, stop reacting emotionally, and build flexible plans that let your money support the life you actually want.
0:04 Retirement isn’t a script, a date, or a finish line
0:56 The myth of “retire at 65 and stop living”
1:20 The rise of “un-retiring” and why Disney hires retirees
3:22 Fear-based reasons people go back to work
4:28 Why retirees often worry more, not less
5:10 Studies showing how many retirees expect to work again
6:38 Income plans vs. purpose plans in retirement
7:16 The Dalai Lama, retirement, and dark humor
8:16 Using leftover 529 money for a future Roth IRA
10:31 Anton Chekhov’s The Bet and money as a moral test
12:08 Parking $3.5M: T-bills vs. high-yield savings
14:30 Why holding massive cash piles is usually a mistake
16:21 Interest-rate predictions and the illusion of certainty
19:17 How (and where) people actually listen to podcasts
21:02 Mortgage rates under 6% and why context matters
23:15 Roth IRAs for young investors and compounding reality
25:12 VT vs. AVGE vs. AVGV for long-term simplicity
27:51 Disney’s $60B expansion and what it says about costs
31:07 Rebuilding emergency funds without derailing retirement
33:32 Converting Vanguard mutual funds to ETFs in taxable accounts
35:20 Why small tax efficiencies matter over decades
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Tom Cock and Don McDonald kick off 2026 with a sharp, skeptical look at portfolio simplicity—what it really means, what it doesn’t, and why promises like “no sacrifice in returns” should always raise an eyebrow. Using a Morningstar article as a springboard, they dig into active vs. index funds, one-fund and target-date strategies, and the behavioral traps that complexity creates. Listener calls drive deeper discussions around Avantis funds (AVGE vs. AVGV), value tilts, international exposure, Fidelity’s zero-fee funds, and when simplicity actually beats sophistication. Along the way: holiday viruses, Jeopardy ETF fails, Tesla-as-a-value-stock arguments (sort of), and a reminder that knowing yourself as an investor matters more than chasing the “perfect” allocation.
0:04 Holiday hangover, fake presence, and welcoming 2026
1:27 Simplicity in investing and why complexity isn’t intelligence
1:44 Morningstar’s “simplify your portfolio” claim—skepticism engaged
3:01 Active funds vs. index funds (and Morningstar’s awkward contradiction)
3:56 One-fund vs. multi-fund portfolios and why rebalancing is hard
5:24 Target-date funds as delegation for real humans
7:32 Hodgepodge-itis vs. fewer funds, fewer mistakes
8:52 Listener call: Roth IRA for an 8-year-old and AVGE vs. AVGV
12:20 Value tilt, international exposure, and long time horizons
13:44 AVGE vs. AVGV performance—why short-term results don’t settle debates
16:57 VT compared to Avantis—diversification without tilts
17:32 Fidelity Zero funds—what’s free and what’s the catch
20:00 Jason from Sammamish: value, growth, Tesla, and confidence
23:36 SPY vs. SPYM and when cheap is just cheap
25:46 Listener call: escaping a Fidelity managed large-cap portfolio
29:58 What to say when an advisor tries to keep your money
31:24 Jeopardy contestants miss “ETF” (yes, really)
33:46 AVGE vs. VT—tilts, belief systems, and picking your poison
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Predictions feel comforting—but they’re usually nonsense. In this episode, Don and Tom dismantle the illusion of foresight by revisiting last year’s loudest economic forecasts around tariffs, inflation, jobs, recessions, and markets. Drawing from a Wall Street Journal retrospective, they show how both political promises and expert predictions missed the mark, with reality landing squarely in the messy middle. The takeaway is classic Talking Real Money: nobody—not economists, not presidents, not pundits, and especially not you—has actionable insight into the future. That’s why successful investing isn’t about forecasts or hot takes, but about building a diversified portfolio, rebalancing when needed, and tuning out the noise. The episode wraps with listener questions on teen investing accounts and Roth conversion rules, plus a reminder that humility beats hubris every time markets get unpredictable.
0:04 The future is unpredictable—even when we pretend it isn’t
0:26 Why we crave predictions and mistake luck for skill
0:53 Being “right” once doesn’t mean anything
1:58 Tariffs, Trump, and the great forecasting divide
2:27 Inflation predictions that never showed up
3:53 Jobs, unemployment, and why both sides were wrong
5:49 Who actually paid for tariffs (hint: not who you think)
7:08 Recession fears vs. reality—and the AI wildcard
8:55 Why short-term predictions fail and macro trends survive
10:41 The truth usually lives between the extremes
11:31 Lao Tzu, Yogi Berra, and why nobody knows the future
13:20 The most dangerous “expert” investors trust: themselves
14:43 Listener question: investing for a 16-year-old
17:29 Roth IRA vs. UTMA/UGMA and simple fund choices
18:06 Listener question: Roth conversions and the five-year rule
20:54 Humor, offense, and why everyone needs to lighten up
21:14 RetireMeet 2026 details and special guest preview
23:14 Apella Wealth philosophy and free help reminder
24:39 The number one word of the year (still shocking)
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Investing isn’t a game, and treating it like one can quietly sabotage your future. This episode dismantles the idea of “trying out” investments or advisors the way Wall Street has trained people to do for decades. Don and Tom argue that real financial advice starts with planning, not products, and that a true fiduciary focuses on taxes, portfolio design, and long-term goals — not beating markets or selling what’s hot. Listener questions tackle portfolio overlap inside a 401(k), when simplicity beats customization, the reality behind so-called “Trump accounts” for children, and how to evaluate companies like Corbridge Financial in teacher retirement plans. The show wraps with a reality check on World Cup ticket pricing that somehow makes active management look affordable by comparison.
0:04 Why “trying out” investments makes no more sense than test-driving surgery
1:26 The danger of treating investing like a game
2:29 How Wall Street gamified investing for nearly a century
3:45 What good advisors don’t promise
4:10 Fiduciary planning versus transactional sales
5:14 Marketing narratives vs. real financial planning
6:55 Why big advisory firms spend fortunes on persuasion
7:48 Hot returns, sexy funds, and why chasing them fails
8:35 Investing to win vs. investing to reach a goal
9:56 Accepting market reality instead of competing with billionaires
11:27 Product versus planning — the core distinction
12:09 Listener question: fixing portfolio overlap inside a 401(k)
14:34 Why simpler portfolios usually work better
15:09 Using target-date funds to eliminate overlap and rebalancing headaches
16:19 What “Trump accounts” actually are — and what they aren’t
18:39 Comparing Trump accounts to 529 plans
21:38 Corbridge Financial: when it’s fine and when it’s a trap
23:01 Appreciating listeners everywhere (yes, even Portland)
24:40 World Cup ticket prices that defy financial gravity
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0:04 Remembering the “good old days” of fat commissions
0:33 From $200 trades to zero commissions—what really changed
1:18 Free trading everywhere… so how do brokers make money now?
2:37 Robinhood’s explosive growth and the rise of trading culture
3:15 Trading volume triples in six years—what that signals
4:42 Payment for order flow, cash sweeps, and hidden costs
6:21 Are investors actually getting a deal from free trading?
7:13 Why frequent trading and poor returns go hand in hand
8:21 Dopamine, gambling mechanics, and Robinhood’s design problem
9:47 Day trading: the comeback nobody needed
10:57 Why most day traders lose—and taxes make it worse
11:36 Prediction markets: gambling with an investing label
13:16 Listener questions begin
15:55 What is a tokenized stock—and why it’s not investing
17:25 Bucket shops, NFTs, and synthetic “stocks”
18:45 Early retirement withdrawals and the Rule of 55
19:33 Default retirement plans stuffed with annuities—good idea?
21:20 Liquidity risk and why annuities aren’t one-size-fits-all
22:26 Vanguard’s new Core Plus Bond ETF (BNDP)
24:13 Chasing yield vs. using bonds for stability
26:20 Why bonds shouldn’t be your return engine
27:36 Hoping for a calmer 2026 (good luck with that)
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This episode opens with a reality check on streaming delays before diving into the growing divide between investing and gambling, highlighted by Charles Schwab’s refusal to promote crypto, options, and prediction markets while Robinhood leans fully into high-intensity trading. Don and Tom warn that flashy features and frequent trading usually lead to worse outcomes, not better ones. Listener questions cover whether employees can roll a 401(k) during a plan change (usually no), how to cope with bad retirement plans, and how to choose between a high-cost growth fund and a low-cost index option. The show also tackles whether mixing Avantis and Dimensional funds truly adds diversification, argues that over-engineering portfolios is counterproductive, and closes with a candid discussion about the decline of financial radio, the rise of podcasts, and why a strong financial plan matters more than recent market gains.
0:04 Recorded-not-live reality, streaming delays, and why nothing feels real anymore
1:56 Schwab draws a hard line between investing and gambling
2:56 Robinhood’s casino-style features and the problem with pandering
6:12 Why trading more usually means ending up with less
6:52 Listener question: Can you roll a 401(k) during a plan change while still employed?
9:23 Why “in-service” rollovers usually aren’t allowed before 59½
11:53 What employees can do when stuck in a bad 401(k) plan
14:44 Fund choice question: Fidelity Growth vs. Vanguard 500 Index Trust
18:06 Why expenses, risk, and diversification matter more than past performance
19:21 Why podcasts are replacing traditional financial radio
22:06 How to listen to podcasts using Apple Podcasts and Spotify
27:22 Avantis vs. Dimensional: does doubling up add diversification?
31:52 Over-diversifying and the illusion of control
34:42 New-year reminder: returns don’t equal good planning
35:25 The importance of having an actual financial plan
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With Tom on vacation and an eerily convincing AI stand-in holding down the mic, Don kicks off 2026 by tackling one of the most persistent listener questions: how to actually find a true fiduciary—and how to eliminate salespeople fast. Using FINRA’s BrokerCheck as a simple filter, the show explains why the “B” matters, why dual-registered advisors are still a risk, and how complexity is often a red flag. From there, the conversation dives into the rise of RILAs (registered index-linked annuities), why their shiny back-tested returns don’t mean much, and how simpler balanced portfolios often do better with far less risk and confusion. Along the way, the hosts cover podcast reviews, investing in bourbon barrels (don’t), Roth IRAs for teenagers (do), and close with Tom’s five timeless investing rules for 2026: go global, simplify, define risk, rebalance, and understand your taxes.
0:04 New year, Tom on vacation, and the rise of AI Tom
0:22 AI voices, joke quality, and job security jokes
2:20 Welcome and the show’s core mission
2:46 How to actually find a real fiduciary
3:30 BrokerCheck explained and why the “B” is a deal-breaker
5:24 Firm searches and fast advisor elimination
6:38 Why dual registration still isn’t fiduciary
7:22 RILAs introduced and why “index-linked” is a warning sign
9:38 Hypothetical returns and misleading back-testing
11:19 Balanced index funds vs annuity complexity
13:00 Why RILAs solve no real investor problem
14:08 How to leave podcast reviews (and where)
15:22 Apple vs Spotify reviews and ratings reality
17:34 Ratings, trolls, and thin-skinned hosts
20:07 Tom’s five investing rules for 2026
20:41 Go global—actually global
21:56 Fewer accounts, less mess
22:49 Know your risk before the market teaches you
23:50 Rebalancing after strong stock years
24:38 Understanding taxes by account type
27:33 Bourbon barrel investing pitch—hard pass
29:13 Custody risk and private-investment danger
31:35 No sales guests, ever
33:54 Roth IRAs for working teens
34:35 RetireMeet 2026 announcement
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Wall Street is pitching “fixed-maturity ETFs” as the perfect solution for retirees who want certainty, income, and peace of mind—but are they actually solving a problem that already has simpler answers? In this episode, Don and Tom break down what bonds and CDs really do, why fixed-maturity funds are being pushed so hard right now, and how fees quietly eat away at the promised benefits. Along the way, they explain the real role of bonds in a portfolio, why chasing yield is a trap, and how diversification and simplicity still beat clever packaging. Listener questions tackle fiduciary responsibility in 401(k) plans, loaded mutual funds, and how much international exposure makes sense in retirement.
0:04 New year opener, time anxiety, and refusing to acknowledge large numbers
1:05 What a bond actually is—and what it guarantees (and doesn’t)
1:54 CDs vs. bonds: fixed maturity products that already work
2:37 Why Wall Street suddenly “needs” fixed-maturity ETFs
3:22 BulletShares, yields, and the quiet problem of fund expenses
4:45 Larry Swedroe’s blunt answer: skip the fund, buy the bonds
5:24 Yield fixation and how investors ignore cost and complexity
6:05 When fixed-maturity ETFs might make sense—and when they don’t
7:14 I-Bonds, TreasuryDirect, and Don’s practical reality check
7:48 A simple solution: total bond fund plus a CD ladder
8:28 Why fixed maturity doesn’t mean fixed safety
10:09 Expense ratios compared: broad bond funds vs. sliced products
10:35 The real purpose of bonds in a portfolio
12:04 Putting 2022’s bond losses in proper historical context
12:58 Eugene Fama on Wall Street “innovation”
13:20 Listener question: fiduciary responsibility in a 401(k) plan
16:30 Listener question: A-shares, B-shares, loads, and advisor honesty
19:14 Why high fund expenses hurt more than exit fees
20:52 Listener question: international exposure in retirement portfolios
22:18 Practical global diversification without precision theater
23:02 Why Don is flexible on allocations—but not on insurance sales
23:22 How to send in questions and closing banter
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The calendar flipped, but the rules didn’t. In this New Year Friday Q&A, Don tackles listener questions on longevity annuities (QLACs), legacy insurance mistakes, advice-only advisory services, and the growing trend toward complex fixed-income systems and alternative investments. From insurance math that favors the house to eye-watering fees dressed up as innovation, the message stays consistent: simplicity beats sophistication, fees matter, and global diversification works the same whether you live in Seattle or Spain.
0:00 New year, new Q&A — and why January changes nothing
1:30 QLACs explained and why the math still favors insurers
2:49 Longevity odds vs. guaranteed income myths
5:15 Trapped in a bad annuity — ride it out or cash out?
8:53 “Magic money,” bonuses, and negative real returns
10:46 Advice-only firms: Abundo Wealth and paying for simplicity
13:44 Bond ETFs vs. CD and Treasury ladder strategies
17:39 When “systematic” fixed income starts to smell like gimmicks
18:53 Alternatives, private credit, and outrageous expense ratios
22:18 Why Don defaults to simplicity — every time
24:35 Global diversification: same advice, any country
27:38 Happy New Year — and why boring still works
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This episode dismantles the idea that successful investing comes from finding the next hot thing. Instead, Don and Tom argue that good portfolios are built by eliminating what doesn’t belong: actively managed funds, sector ETFs, alternatives, high-yield bonds, gold, and other distractions that add complexity without purpose. Drawing on a Morningstar column by Amy Arnott, they reinforce that most investing mistakes come from chasing performance rather than embracing simplicity and discipline. The show also tackles listener questions on retirement “bucket” strategies, rebalancing timing, Dimensional fund structure, and annuities—emphasizing that bonds exist for stability, cash should be limited and intentional, and any strategy must be personal, rules-based, and boring enough to actually work.
0:04 Opening banter, Apple censoring Tom’s name, and the beige pudding world
1:12 Bitcoin critics, one-star reviews, and a bad 2025 for crypto
2:03 Core idea: good investing is about elimination, not prediction
2:56 Amy Arnott and the case against active management
4:07 Why past winners usually become future losers
5:28 REITs, once useful, now mostly redundant
6:01 Sector funds as performance-chasing traps
8:19 Alternatives, I Bonds, and junk bonds—complexity without payoff
10:04 Bonds explained properly: stability, not income or excitement
11:14 Gold (and Bitcoin) as non-productive speculation
13:21 Simplify first and portfolios become easier—and calmer
15:05 Retirement bucket strategy: where it helps and where it hurts
18:48 Cash as an emergency tool, not a long-term holding
21:04 MYGA annuities, safety trade-offs, and insurer risk
29:04 Insurance failures as cautionary history
31:04 DFAW explained: Core Equity 1 vs Core Equity 2
35:53 Rebalancing discipline: timing beats tinkering
39:11 Final reminder: stop watching your portfolio so much
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As the year crawls to a close, Don and Tom torch the ritual of “New Year, New You” financial advice and take aim at the endless lists of five things you must do next year. They break down why year-end deadlines are mostly psychological theater, why prediction-based investing is a sucker’s game, and how even AI—when pressed—admits the truth: diversification beats cleverness, patience beats prediction, and complexity usually hides higher costs and worse outcomes. Along the way, they tackle 529 plans, proposed “Trump accounts,” Roth strategies for kids and retirees, factor investing myths, and the ongoing media obsession with whatever already went up last year. It’s a holiday episode for skeptics, cynics, and anyone tired of being told that this is finally the year everything changes.
0:04 Holiday cynicism, snow, trees plotting revenge, and Don declares war on Pollyanna finance
1:19 Year-end obsession: why December 31 is an arbitrary psychological trap
2:29 Why “five things to do in the new year” articles exist—and why they’re mostly nonsense
3:55 Asking AI for financial advice and accidentally getting decent answers
4:18 Don’s AI delivers brutal honesty: complexity isn’t sophistication, it’s camouflage
5:54 The most dangerous question of all: “What should I invest in next year?”
6:06 Everyone’s favorite prediction: AI stocks (again), and why that’s backward logic
6:29 The real answer: globally diversified equities, patiently held and largely ignored
8:07 Motley Fool, Morningstar, defense stocks, and the annual prediction circus
9:29 AI’s final verdict: everything after diversification is garnish people argue about on TV
10:33 Listener Brian on New York 529 plans, state tax deductions, and Roth rollover flexibility
11:30 How aggressive is too aggressive for a child’s college savings?
12:45 Why age-based 529 portfolios are often far more conservative than parents realize
14:10 When college money should actually shift to safety—and when it shouldn’t
15:43 The mysterious “Trump accounts”: proposed rules, confusion, and missing details
16:56 Tax treatment uncertainty, Roth myths, and why free money is still free money
18:39 Clear conclusion: this account doesn’t exist yet and nobody knows the real rules
20:05 Don’s full rant: pandering policies, financial clutter, and unnecessary complexity
22:07 Listener Larry on starting a Roth IRA for a 19-year-old with a one-fund solution
22:47 AVGE explained: global, factor-tilted, low-cost, and boring in the best way
24:15 AVGE vs. Vanguard Total World: interest vs. necessity
25:26 AVGE underperformance criticism and why one-year returns are meaningless
28:26 Why Avantis funds aren’t trying to “pick winners” and never claimed to
31:32 Listener Caroline on retirement withdrawals, IRAs, Roths, and tax reality
33:11 The unavoidable truth: you’ll pay taxes—now or later
35:43 How (and where) listeners can actually rate the show
38:01 Politics, labels, John Oliver, and why nuance is apparently illegal now
38:54 Capitalism, fairness, and refusing ideological purity tests
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In this post-Christmas edition of Talking Real Money, Don McDonald and Tom Cock dismantle one of the most seductive myths in personal finance: the promise of high returns, no risk, and tax-free income. Using the lawsuit filed by Kyle Busch against Pacific Life as a case study, they expose the dark mechanics of indexed universal life insurance—hidden commissions, opaque costs, fabricated indexes, and returns that quietly disappoint. The episode then pivots to listener questions on diversification mistakes, Roth vs. traditional 401(k)s, late-career pivots into financial advice, ETF selection for retirees, and why doing less with your portfolio almost always beats doing more.
0:04 Post-Christmas welcome, Kyle Busch jokes, and why rich people get fleeced too
1:18 Indexed Universal Life explained (and why it’s not an investment)
1:45 The “bank on yourself” fantasy and why it never dies
2:27 $10.5 million in premiums and promises of $800K tax-free income
3:20 Why IULs avoid SEC and FINRA scrutiny entirely
4:21 The sixth premium notice that blew up the deal
4:41 How IULs implode if you stop paying—and why everything can vanish
5:52 “Tax-free income, high returns, no risk” exposed as marketing fiction
6:01 Hidden commissions, alleged 35% payouts, and zero disclosure
7:37 Proprietary indexes designed to benefit insurers, not investors
8:50 Internal Pacific Life doc: “Don’t call yourself a financial planner”
9:57 Why consumers can’t see costs, commissions, or real returns
11:37 Real-world IUL returns: roughly 3–5% annually
12:23 Why even Kyle Busch doesn’t actually need life insurance
13:44 Caveat emptor—and why “Life” in the firm name should trigger alarms
14:03 Listener portfolio question: 60/15/25 isn’t diversified
14:53 The S&P 500 isn’t “the market” (and seven stocks prove it)
15:54 Simple global solutions vs. portfolio over-engineering
17:11 Podcast tech humor and March seminar tease
17:22 Listener praise—and teaching people how to find podcasts
18:11 2026 seminar date confirmed: March 7
19:23 Career pivot at 53: CFP vs. AFC vs. Series 65
22:02 Why fiduciary firms are hiring—and sales shops are traps
23:22 ETF selection for retirees: growth, risk, and tax efficiency
24:27 Why Morningstar confuses more than it helps
25:07 Dimensional, Avantis, and keeping portfolios simple
26:20 Final thoughts, free fiduciary consults, and year-end wrap
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A year-end Boxing Day Q&A covering realistic downside expectations for global portfolios, the marginal value of adding international small-cap value, details for RetireMeet 2026, and a deeply skeptical look at Medicaid-compliant annuities. The common thread: diversification helps, simplicity usually wins, and when complexity shows up early, commissions are often lurking nearby.
0:04 Boxing Day confusion, goodwill, and a short-format holiday Q&A
1:07 Why this is a shorter, four-question episode to wrap the year
2:17 How much can a globally diversified stock portfolio really fall
3:06 Limits of global market data and why 2008 still sets expectations
4:11 Roughly 40% decline for global stocks in 2008 and how bonds softened the blow
4:54 Why worst-case scenarios are about expectations, not predictions
6:07 Listener portfolio with VXUS, AVUV, and SWTSX and whether to add AVDV
6:35 Balancing small-cap value exposure versus keeping things simple
7:56 Why a few basis points rarely justify added complexity
8:38 RetireMeet 2026 question and a well-earned jab at Tom’s joke delivery
10:02 RetireMeet 2026 details and early seat reservations
10:29 Event date and location: March 7, Bellevue at Meydenbauer
11:44 Medicaid-compliant annuities explained through a real family scenario
13:57 Why MCAs are usually last-resort tools, not early planning solutions
15:49 Concerns about elder law attorneys, incentives, and hidden commissions
16:35 What MCAs really do: income conversion, not asset protection
17:28 Why skepticism is healthy and shopping non-commission options matters
18:43 Closing thoughts on trust, incentives, and surviving another financial year
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It’s surprisingly hard to know what something is really worth until someone actually tries to buy it—and that problem is front and center in private funds. Don and Tom unpack why private equity, private real estate, and other “alternative” investments often look calm and stable on paper, only to suffer brutal price drops once they finally trade in public markets. From a Wall Street Journal example of a private real estate fund losing roughly 40% overnight, to Morningstar’s troubling enthusiasm for expensive, speculative new ETFs, the episode reinforces a core principle: prices discovered by real markets beat internal estimates every time. Along the way, listeners call in with real-world retirement questions, inherited IRA rules, portfolio simplification strategies, and a healthy dose of holiday banter.
0:04 What something is “worth” versus what someone will actually pay
1:06 Defining private funds and why valuation is murky
2:27 Private fund pricing versus real market pricing
3:56 BlueRock fund haircut: paper value meets reality
4:24 Market pricing, efficiency, and the wisdom of crowds
5:42 The myth of private investments being “less volatile”
6:27 Real estate as the perfect valuation example
7:39 Listener call: inherited IRA and annuity distribution rules
12:42 Holiday humor, crypto annuity joke, and Kentucky bourbon
16:01 Moving assets from Edward Jones, loads, and simplification
19:41 DIY portfolios versus advisor value
21:08 Morningstar’s “Best and Worst New ETFs” critique
22:21 Why most new ETFs exist (and why you don’t need them)
24:43 Shockingly high ETF expense ratios
26:27 Leveraged crypto ETFs and financial absurdity
27:37 Seasonal podcast plug and ratings gripe
28:44 Listener call: Boeing retirement and rollover planning
34:40 Holiday reflections, gratitude, and comfort over riches
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A Wall Street Journal column argues that younger investors are turning to options, crypto, and betting as a rational response to a “rigged” economic system. Don and Tom aren’t buying it. While acknowledging real headwinds—student debt, housing costs, wage gaps—they dismantle the idea that gambling is an intelligent adaptation. Drawing on history, lived experience, and actual math, they make the case that leverage, speed, and desperation reliably destroy wealth, while patience, diversification, and boring consistency still work. The system may be flawed, but trying to beat it with casino tactics only helps the house.
0:04 Opening rant on “financial nihilism,” generational scolding, and why Gen Z investing looks like gambling
1:21 Wall Street Journal column by Kyla Scanlon introduced and framed
2:53 Gambling vs. investing—why “the system is rigged” is a terrible excuse for riskier behavior
5:24 Don and Tom reflect on their own slow, uncomfortable paths to financial stability
6:04 Real-world counterexample: young coworkers who are saving, investing, and buying homes
7:41 Defining “financial nihilism” and why speed, leverage, and impatience backfire
9:00 What actually works: spend less, delay gratification, diversify, avoid leverage
10:46 Historical perspective—every generation faced headwinds, none solved them by gambling
12:39 The power of compounding, patience, and boring index investing
14:41 Critique of the “small chance of huge return beats slow decline” argument
17:12 Listener question: cap-weighted vs. equal-weighted index funds explained
19:11 Why equal weighting tilts toward value and smaller companies—and costs more
20:22 Millennial caller Jason offers empathy for generational frustration without endorsing gambling
23:48 Lifestyle expectations, flexibility, and why hardship doesn’t justify reckless investing
27:27 Food, lifestyle, and historical context—what’s better now, what isn’t
29:25 Hormel vs. Motorola story revisited: why predicting winners is nearly impossible
36:29 Jaw-dropping returns: Hormel’s long-term outperformance over flashy tech
38:45 Light holiday banter, gift absurdities, and wrapping up the show
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Streaming was supposed to save us money. Instead, it quietly rebuilt cable… with better branding and worse self-control. Don and Tom trace the journey from rabbit-ear TV to today’s subscription sprawl, where “it’s only $14 a month” quietly becomes hundreds per year. They break down why streaming costs have exploded faster than inflation, how duplication and inertia drain wallets, and what actually works to fix it (bundling, pruning, and strategic binge-and-cancel). From there, the show pivots to listener questions covering smart investing for an 18-year-old, retirement withdrawal sequencing, trust and estate planning pitfalls, and why complexity is often the real enemy of good financial decisions.
0:04 Life before streaming: rabbit ears, three channels, and forced family labor
0:48 Rewatching Bewitched and realizing old TV was… not great
2:27 Cable’s rise, early streaming optimism, and Netflix’s cheap beginnings
3:30 Subscription creep: listing the modern streaming pileup
4:16 Streaming prices vs inflation — why this hurts more than groceries
6:43 Average household streaming costs and the real percentage increase
8:21 Duplicate subscriptions and why households overpay without realizing it
9:37 Live TV bundles, YouTube TV vs Hulu, and paying cable prices again
12:30 Binge-and-cancel as a legitimate cost-control strategy
14:02 Value judgments: paying for services you don’t actually watch
15:20 Annual audits, forgotten subscriptions, and silent monthly leaks
18:17 Investing $9,000 for an 18-year-old with decades ahead
19:20 Why a Roth IRA plus one global ETF can be enough
20:53 Retirement withdrawals: taxable vs IRA confusion clarified
22:45 When wealth gets big enough that DIY stops making sense
24:00 Trusts, trustees, and why professional oversight is expensive
27:15 Estate planning as a team sport (advisor + attorney)
29:33 Why every TV character is suddenly a podcaster
30:49 Gratitude, rankings, and why the audience matters
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In this holiday Friday Q&A, Don opens with a festive announcement about Season’s Readings—now Apple-featured and temporarily commercial-free—before diving into listener questions on fixed annuities versus CDs, a creative (and complex) 529-to-Roth strategy tied to Georgia tax deductions, simplifying IRA management and RMDs at Schwab or Vanguard, the unavoidable tax traps of old investment clubs structured as partnerships, and the perennial question of how much U.S. large-cap exposure belongs in a diversified equity portfolio. Along the way, Don reinforces core themes: simplicity beats complexity, costs matter, taxes are inevitable, and diversification has no single “correct” allocation—only trade-offs aligned with philosophy and discipline.
0:04 Holiday welcome, Friday Q&A format, and how to submit questions
0:46 Season’s Readings podcast announcement, Apple feature, and commercial-free holiday run
2:16 Fixed annuities vs CDs: safety, state guarantees, and annuity ladders
5:29 Using 529 plans as a long-term Roth pipeline with state tax deductions (Georgia example)
9:29 Moving an IRA to Schwab or Vanguard and automating RMDs
10:20 Investment clubs as partnerships: K-1s, capital gains, and tax inevitability
14:47 How much U.S. large-cap belongs in a diversified stock portfolio
18:54 Reviews, critics, Bitcoin pushback, and holiday sign-off
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Market drops are a gift when you’re young and a potential gut-punch when you’re retired, and this episode walks through why that’s true—and what to do about it. Don and Tom break down sequence-of-returns risk in plain English, then explore practical defenses: cash buffers, CD ladders, bucket strategies, flexible withdrawals, partial retirement, and why stocks still belong in retirement portfolios whether you like it or not. Listener questions tackle letting portfolios ride for heirs, value vs. total small-cap funds, tax consequences of rebalancing, and whether political risk should affect public fund investing. The takeaway: there’s no perfect plan, only resilient ones—and behavior matters more than spreadsheets.
0:04 Why market drops are good for young investors and scary for retirees
0:28 Holiday cheer, audience growth pleas, and the gospel of paper questions
1:40 Why young investors should root for down markets
2:41 Sequence-of-returns risk explained without the jargon
3:20 Real-world retire-at-the-wrong-time examples (2000, 2008, 2020, 2022)
4:48 Why sequence risk is such a big retirement planning problem
5:40 What to do if you fear bad markets near retirement
6:08 Cash buffers and why they actually make sense in retirement
7:06 Bucket strategies and how they’re supposed to work
7:36 CD ladders as a “get-me-through-the-bad-times” strategy
9:27 Flexible withdrawal strategies and lifestyle adjustments
10:37 Partial retirement, side hustles, and easing into retirement
11:33 Why retirees still need stock exposure
12:26 Even small equity allocations help fight inflation
13:20 There is no perfect withdrawal rate—only survivable ones
14:11 The realistic withdrawal range and why stocks are still required
15:33 Why professional fiduciary reviews actually matter
16:21 When life blows up your retirement plan anyway
18:55 Listener question: should a retiree just let stocks ride for heirs?
21:36 Washington CARES, politics, and investing public funds
23:18 Small-cap value vs. small-cap index: FSIVX vs. FSSNX
25:44 Why low-cost value tilts can still make sense
27:00 Smarter gifts: Roth IRAs, 529s, and future-you generosity
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This episode of Talking Real Money takes aim at the latest “easy money” illusion—house flipping—explaining why rising costs, higher interest rates, softer housing demand, and plain old competition have drained much of its appeal. Tom and Don connect flipping’s decline to a familiar pattern of speculative behavior, much like day trading or past real estate manias, and reinforce why there are no reliable shortcuts to wealth. Listener calls drive a wide-ranging discussion on global diversification versus U.S.-only investing, the dangers of concentration risk in the S&P 500, how recency bias distorts performance comparisons, and why owning more markets matters more than making predictions. The episode wraps with practical retirement guidance for older investors, including simplifying portfolios with low-cost target-date funds, and closes with trademark humor and perspective.
0:05 Show open, intro banter, singing callbacks, and weekend rhythm
0:28 House flipping compared to day trading and FOMO investing
1:28 Why flipping activity is down sharply: costs, rates, and competition
3:41 The myth of “passive income” in real estate
4:50 Softer housing markets and demographic headwinds
6:02 No magic systems—long-term investing still wins
8:27 Lisa (Colorado): investing nonprofit funds at Vanguard
10:30 VOO vs VTI vs VT and the case for global diversification
12:29 Volatility, standard deviation, and diversification basics
14:44 Sharpe ratios, recency bias, and misleading performance metrics
16:54 Charles (Seattle): Boeing plans, VOO, and AVGE at Schwab
18:32 S&P 500 concentration risk and the “Magnificent Seven”
21:33 Jason (Sammamish): VTI vs VT debate and long-term market data
28:41 Debbie (Camano Island): portfolio risk concerns at age 73
31:20 Risk tolerance vs risk capacity in retirement
33:16 Vanguard target-date funds as a simple retirement solution
36:01 Lighter close with creative fundraising and holiday humor
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A classic TRM episode that starts with Tom’s ill-fated attempt to cross a flooded Snoqualmie River (spoiler: no walking on water) and turns into a timely lesson on market returns, diversification, and why comparing your portfolio to headline numbers is usually a mistake. Don and Tom unpack eye-popping 2025 performance across U.S., international, bonds, and small-cap value, warn against recency bias and overpriced active funds, and take several listener calls on Roth conversions, bad custodians, debt forgiveness taxes, and rollover mechanics. The show wraps with Don’s well-earned victory lap for Seasons Readings, now rubbing shoulders with Julie Andrews and Hugh Bonneville in Apple’s fiction charts.
0:04 Tom gets stranded by flooding after a questionable river-crossing idea
1:40 Flood damage reality check and sympathy for displaced homeowners
2:22 Market year-end context and “Dave Ramsey average” returns
3:32 Bond funds surprise with strong year-to-date performance
4:05 International and global funds crush expectations
5:46 Why your return may lag headlines: allocation, costs, and recency bias
6:20 Apples-to-apples portfolio comparisons matter
9:26 Active funds underperforming despite a strong market year
10:47 Global diversification pays off big in 2025
12:04 January prerecorded show tease and holiday logistics
13:25 Seasons Readings featured by Apple Podcasts—downloads explode
15:18 Fiction chart brag: sandwiched between Julie Andrews and Hugh Bonneville
16:25 Listener call: John Hancock IRA, forced conversions, and bad advice
19:06 Why liquidating inside an IRA is not a taxable event
20:17 Exposing high-cost, loaded funds and custodian nonsense
23:35 Listener question: Roth conversions, pensions, and IRMAA timing
26:36 Why “top tax bracket forever” is usually a myth
27:31 Listener call: debt settlement and taxable forgiveness income
30:13 When a 1099-C is a good deal anyway
31:56 Flood-era investment scams and terrible ideas
35:55 Clarifying direct rollovers vs. taking possession of funds
38:13 Roth IRAs for young earners—yes, even pizza money
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If you’re nearing retirement and uneasy about the math, you’re not alone. Don and Tom tackle the uncomfortable reality that most near-retirees haven’t actually run the numbers—and many won’t like what they see when they do. Drawing on Vanguard data and real-world client experience, they break down three practical ways to shrink a retirement gap: working longer (but not necessarily full-time), thoughtfully tapping home equity, and spending less before and during retirement.
0:06 Opening and the retirement gap problem
0:52 Podcast platforms, Apple vs Spotify, and Don’s short-story empire
4:08 How TRM ranks among investing podcasts and why that still feels surreal
5:24 Vanguard data: only 40% of near-retirees are on track
6:51 Kids, money, and why retirement math gets uncomfortable fast
7:51 Strategy #1: Working longer (and why part-time can be powerful)
9:41 Purpose, boredom, and the underrated psychology of retirement
10:00 Strategy #2: Home equity as a retirement resource
11:12 Downsizing, renting, HELOCs, and reverse mortgage trade-offs
13:05 Strategy #3: Spending less—before and during retirement
14:29 Reverse mortgage costs, limits, and real-world implications
17:01 Social Security timing and when immediate annuities actually help
18:40 Inflation risk, fixed income streams, and practical trade-offs
19:02 Listener Q: AVGE vs DFAW and understanding underlying holdings
21:48 Listener Q: Aggressive Roth portfolios intended for heirs
25:30 Listener Q: Washington 529 plans and GET vs traditional 529s
27:32 Listener Q: Quantum computing (short answer: no)
28:59 Sector investing, AI hype, and why diversification wins
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A holiday-flavored Friday Q&A that covers a lot of ground without selling a single candy cane. Don answers listener questions on Medicare vs. Medicare Advantage (and the IRMAA buzzsaw), how to safely reposition an elderly parent’s taxable account, whether to ditch target-date funds for a DIY equity portfolio, how to think about international small-cap ETFs, why teaching kids to pick stocks is a terrible idea, and what to expect when a “free portfolio review” comes from a company whose name literally includes the word annuity. Skeptical, practical, and very on-brand.
0:17 Corny holiday Q&A musical intro and setup
0:33 Friday Q&A format, how questions get on the show, and holiday vibe
2:00 Medicare vs. Medicare Advantage, IRMAA penalties, and why private insurers are exhausting
3:37 Why capital gains can make Medicare shockingly expensive
4:15 The profit motive problem with Medicare Advantage plans
4:37 Question transition and listener call-in reminder
5:43 Managing an 82-year-old’s taxable account: safety vs. yield
6:18 Why bond funds like BND diversify interest-rate risk better than savings accounts
7:15 CD ladders: how they work and why discipline matters
7:39 Treasury funds vs. total bond funds for capital preservation
7:47 Closing thoughts on preservation-focused portfolios
8:52 Target-date funds vs. DIY 401(k) portfolios
9:20 Glide paths, rebalancing, and what target-date funds do well
10:35 100% equity risk, volatility, and why down markets help accumulators
10:53 Choosing between AVDV and AVES (international small value vs. emerging markets)
11:47 Why the correct answer is often “both”
12:33 Teaching high school students about investing
13:52 Why stock-picking education reinforces a dangerous myth
14:28 Luck vs. skill and the evidence against beating the market
15:39 Index funds, market efficiency, and investor behavior
16:49 Morningstar vs. other research tools
17:18 Empower’s “free portfolio review” and what might be coming next
18:06 Portfolio concentration concerns and tech exposure
19:33 Humor break and annuity skepticism
20:55 What Empower actually is and what that implies
21:16 Empower as an RIA and how to treat their recommendations
21:52 Getting a second opinion from a fee-only advisor
22:58 Thanks, holiday wrap-up, and call for more questions
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Today’s show turns a national mood ring into a money lesson. Don and Tom walk through a new Wall Street Journal/NORC survey that sorts Americans into four emotional quadrants—comfortable optimists, comfortable pessimists, stressed optimists, and stressed pessimists. Tom takes the quiz live, landing squarely where most Americans do: personally comfortable, broadly pessimistic. The two unpack why sentiment is so gloomy despite solid personal finances, how risk tolerance shifts with market cycles, and why feelings often overpower facts. Listener questions follow on retirement diversification, how much risk one really needs if Social Security covers the bills, whether younger investors should ever be 100% in stocks, and the practical challenges of automatic withdrawals from ETF-based portfolios.
0:04 Don’s intro and NPR-style location banter
1:08 Why the episode is about how we feel about money
1:40 Explaining the four sentiment quadrants in the WSJ/NORC poll
3:12 Tom begins the quiz: current financial satisfaction
4:23 Confidence levels across jobs, savings, and expenses
6:04 Vacations, stock market reactions, and financial worry
8:10 Comparing today’s challenges to parents’ generation
9:18 Buying a home, marriage, caregiving
10:07 Rating the strength of the U.S. economy
10:46 Optimism about the future and “the American dream”
11:26 Expectations for the next year and future generations
13:06 Results: Tom is a “comfortable pessimist”
14:44 Why pessimism dominates the national mood
15:16 What individuals can—and can’t—control about tomorrow
16:29 Listener question: retiring at 63 with mixed assets and too much cash
19:14 How risk tolerance should drive allocation, not income sources
20:35 Fixing the portfolio’s biggest issue: excess high-yield savings
21:54 Listener question: should a 47-year-old investor be 100% stocks?
23:11 Why very few people can stomach a 50% decline
23:59 The case for diversification even when accumulating
24:44 Listener question: automatic ETF withdrawals in retirement
26:15 Annual or semiannual rebalancing as a solution
27:28 ETFs vs. mutual funds: cost vs. convenience
29:13 Year-end cleanup and planning habits
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Don and Tom take a sharp look at Vanguard’s surprising new direction, especially the decision to fold annuities into 401(k) target-date funds through lightly regulated collective trusts. They contrast Vanguard’s historical simplicity with today’s trend toward complexity, comparing costs, structure, and risk across major providers. Listeners call in with questions about Roth conversions, Schwab target-date funds, entering the market after a forced delay, and whether TIPS or buffered ETFs are worth owning. Throughout, Don and Tom hammer home the fundamentals: low costs matter, complexity harms investors, active management rarely pays, and your stock/bond mix—not gimmicks—drives long-term success.
0:04 Opening and setup: Vanguard’s recent drift toward complex products
1:03 Vanguard’s dominance in target-date funds and why simplicity used to be the point
1:58 Vanguard adding annuities into 401(k) target-date funds — is this helping anyone?
3:11 What does an annuity inside a target-date fund even mean?
4:03 The 25% annuity allocation example and the misleading “8% payout” illusion
5:03 TIAA’s role and why annuity costs remain unclear
6:28 Are annuities inside retirement plans a solution in search of a problem?
7:38 The fine print: Vanguard’s new collective trusts and weak disclosure requirements
8:20 Why collective investment trusts are lightly regulated and potentially concerning
9:07 Caller: Roth conversions when you’re withdrawing to live on — should you stop?
11:32 When Roth conversions lose their benefit and why you need cash for taxes
12:21 Caller: Are Schwab target-date funds worth it in a Roth? (Short answer: No.)
13:31 Why Schwab’s higher fees and low international allocation are a problem
14:52 Active management inside target-date funds — unnecessary and risky
16:12 Risk vs. return: Schwab’s higher volatility and lower historical performance
16:41 Caller: Missed market gains while transferring funds — how to get back in
18:49 When market discomfort signals a stock/bond misalignment
20:16 Comparing Schwab vs. Vanguard target-date funds over 15 years
21:37 Why lower cost + lower volatility + better return makes Vanguard the clear win
22:02 Should you fear future gimmicks like private credit inside target-date funds?
23:29 Caller PSA: Realizing capital gains in a low-income year
24:06 ETF explosion — 908 new ETFs this year, most using leverage or derivatives
25:29 Why “ETF” doesn’t mean good; junk ETFs equal junk mutual funds
26:05 Structural benefits of ETFs and why the market prefers them
27:29 Soccer vs. NFL detour, then back to phone calls
29:07 Listener question from Colorado: Should you buy a TIPS fund?
31:01 Why TIPS rarely add value in diversified portfolios
33:22 TIPS behave more like inflation bets than true inflation protection
34:34 Why simple, short/intermediate, high-quality bonds—and CDs—often do the job
36:17 Caller: What is a buffered ETF, and why does it sound like an annuity?
37:29 Buffered ETFs explained: expensive, complicated, and unnecessary
38:30 Why gimmicks dominate product launches and how they hurt investors
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In this special seasonal episode, you and Tom resurrect Ha or Duh, tearing through Investopedia readers’ “rules to live by” and dismantling the silliest ones with mock gravitas. Between the dad-joke arms race, a spirited defense of compounding, strong opinions on due diligence, and a surprising detour into crypto-mad zip codes, the show blends real financial guidance with holiday-season chaos. The episode also hits deeper listener questions on rebalancing, Roth vs. pre-tax strategy in high brackets, and the danger of thinking blue chips alone equal diversification.
0:04 Seasonal return of Ha or Duh and setup of Investopedia’s “investing rules”
1:32 Rule 1: Never sell because of emotions — duh
2:44 Rule 2: “Only invest in what you know” — emphatic huh
3:35 Rule 3: Good investment in a bad market — phrasing unclear, lean duh
4:26 Rule 4: Never underestimate compounding — mega-duh
5:35 Rule 5: Cash and patience as “positions” — hard huh
6:25 Segment break into calls
7:49 Back to Ha or Duh lightning round
8:33 Buy low, sell high — duh (with caveats)
9:58 “Losses are tuition you won’t get at uni” — pass
10:21 Hold for the long term — duh
11:09 Marathon, not sprint — duh
11:39 Is education the best investment? Nuanced disagreement
12:45 “Always do your own due diligence” — modified duh (about advisors, not stocks)
15:22 FOMO avoidance — duh
16:27 Final rule: Start now — biggest duh of all
17:41 Wrap-up and transition back to regular Q&A
18:06 Listener question: Finding the “sociopath son” episode
19:28 Setup for Friday’s Q&A episode
20:18 Don’s town turns into “free Disney World” during holidays
21:51 Disney hotel pricing shock and personal stories
23:42 Don’s new original Christmas story: Santaverse
24:01 Story podcasts spike; Short Storyverses mention
25:28 Listener from Bothell: 90% blue chips, 10% cash — how to rebalance?
26:39 Why blue chips aren’t diversified and the S&P concentration problem
28:52 Listener in high bracket asks when Roth beats pre-tax
30:26 SECURE Act 2.0 catch-up rules; Roth vs. pre-tax philosophy
32:10 Monte Carlo vs. unknowable future tax rates
33:26 Why all-Roth 401(k)s would simplify life
34:28 Advice: Likely stay pre-tax in 24% bracket
35:50 Shocking stats: Seattle among highest crypto-owning zip codes
37:24 Air Force bases dominate crypto ownership — why it’s dangerous
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In this episode, Don and Tom saddle up for a tour through Schwab’s “Good, Bad, and Ugly.” They applaud CEO Rick Wurster’s warning about the growing overlap between gambling and investing, take a hard look at Schwab’s retail-side conflicts and non-fiduciary sales practices, and then recoil at the truly ugly: Schwab’s acquisition of Forge Global and its push to open private-company speculation to everyday investors. From there, they field listener questions about crypto’s pointless search for a purpose, how to implement a disciplined 5 percent retirement withdrawal strategy, the ins and outs of tax-free Vanguard mutual-fund-to-ETF conversions, and whether a younger spouse should convert a large TSP balance to Roth. It’s classic Talking Real Money: skeptical, practical, consumer-first, and mildly exhausted by the Wild West of modern finance.
0:04 Investing as the Wild West and why caveat emptor still defines the industry
0:24 Schwab’s role as custodian vs. broker and how they reshaped trading costs
1:14 Schwab’s discount-broker origins and institutional dominance
2:37 Free trades, market influence, and why Schwab became the industry’s leader
3:52 CEO Rick Wurster’s warning about gambling creeping into investing
4:43 Sports betting numbers, prop bets, and why only 5 percent come out ahead
5:54 The “bad”: Schwab retail selling and the fiduciary confusion
6:40 The “ugly”: Schwab buying Forge Global and pushing private-company speculation
7:23 Why private equity is riskier, pricier, illiquid, and over-hyped
8:17 The myth of private companies outperforming public ones
9:22 Why the Wild West persists: weak oversight, self-dealing, and revolving doors
10:48 Listener question: stablecoins, crypto legitimation, and the greater-fool problem
13:00 Currency concerns and why crypto still solves nothing
13:50 5 percent withdrawal strategy: when and how to draw from your portfolio
15:28 Rebalancing, total return withdrawals, and annual cash-flow discipline
16:47 Why withdrawals should follow rebalancing, not lead it
17:56 Vanguard mutual-fund-to-ETF conversions: how they work and why they’re useful
20:10 Expense-ratio savings vs. capital-gains distributions
20:55 TSP-to-Roth conversion question: tax-rate timing matters
22:44 Only convert if you can pay taxes from outside savings
23:08 Reminder: free adviser meetings, no sales pressure
24:10 TRM’s longevity and approaching episode 2,000
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This Friday Q&A episode tackles a wide range of listener questions: whether someone with full pension income still needs bonds, how to fix a cluttered 403(b) invested through Corebridge, what to make of Bill Bengen’s new comments about higher withdrawal rates, how inherited IRAs are taxed over the 10-year rule, and a quick explanation of the difference between “securities” and “equities.” Along the way, Don delivers a vintage KOA radio tag, explains why simplicity beats complexity in retirement plans, and walks through why 8% withdrawal fantasies collapse under real-world math.
0:04 Friday Q&A intro and listener call-ins
1:19 Do you need bonds when pensions cover all expenses?
3:01 Why fixed income still matters (and how to gauge risk tolerance)
4:33 Listener request: Don recreates a KOA radio tagline
7:29 A messy CoreBridge 403(b): what funds to keep and how simple it can be
11:37 Target-date vs. multi-fund portfolios and a small value tilt option
12:05 Bill Bengen’s new withdrawal rate comments — does 8% make any sense?
14:07 Why high withdrawal rates implode in historical simulations
16:02 Inherited IRA: what’s actually taxed and how to plan distributions
18:35 The bracket danger of big lump-sum withdrawals
19:31 Final question: difference between a security and an equity
21:15 Why music licensing on podcasts is a nightmare
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This episode digs into the unwelcome December surprise of capital-gains distributions, especially from actively managed mutual funds. Don and Tom break down Morningstar’s latest list of high-distribution offenders, spotlighting the astonishing 83% capital-gains payout from the Royce Midcap Total Return Fund. They compare the tax drag, costs, turnover, and long-term underperformance of these funds against index funds and ETFs, and explain why tax-efficient investing matters far more than most people realize. Listener questions cover overly complex portfolios, Edward Jones stock positions, odd-lot tender offers, and whether large-cap blue-chip stocks remove the need for bonds. The episode closes with a reminder that detailed portfolio triage is best handled in one-on-one meetings.
0:04 Capital-gains season returns and why high fund returns can still hurt
0:29 Don & Tom on weather, wardrobe, and warming up in Florida
1:30 December capital-gains distributions and why they happen
2:07 Morningstar’s warning: active funds with big capital-gains payouts
3:06 Vanguard, T. Rowe Price, and American Funds distribution levels
4:09 The biggest offender: Royce Midcap Total Return Fund
5:41 Why 35 funds will distribute more than 10% of assets
5:52 The stunning number: Royce’s 83% capital-gains distribution
6:52 Why big outflows and poor performance drive big taxable events
7:21 Royce’s turnover, tiny size, high costs, and weak long-term returns
8:47 Why it’s critical to hold active funds only in tax-advantaged accounts
10:07 ETFs vs mutual funds: tax efficiency and turnover differences
11:42 Comparing Royce to Avantis AVGE on fees, turnover, and performance
12:16 How AVGE tracks its index vs Royce’s massive underperformance
13:33 When selling an active fund before a distribution may or may not help
14:05 Listener question: overly detailed allocation request — why it needs a meeting
16:29 Why some questions require one-on-one analysis
18:20 Why Appella’s free meetings exist (and what they’re not)
20:35 Odd-lot tender offers explained
22:14 Listener: selling Edward Jones stock holdings and leaving EJ
23:42 Why small, young investors should clean up taxable accounts early
24:24 The long decline of commission-based brokerage
25:26 Bothell check-in: blue-chip stocks vs bonds
27:18 Historical returns: 98 years of total market vs small-cap value
28:49 Why bonds exist in a portfolio despite low recent returns
29:30 Closing thoughts on discipline, diversification, and realism
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A fast, funny Thanksgiving-weekend show where you and Tom unpack why a tiny handful of stocks drive the S&P’s returns, revisit forgotten winners like Hormel and McDonald’s, explain why “you can’t pick them in advance,” and tie it all back to building global, diversified portfolios. Listener calls cover early-retirement withdrawals with 72(t), whether AVGV should replace AVGE, a Thanksgiving relative obsessed with dividends, and a listener being pitched a 1.24% Fidelity “wealth management” upsell.
0:06 Thanksgiving haze, Manhattans, overeating, and setting up the show
2:24 Magnificent 7 vs S&P 493 and how concentrated returns distort hindsight
4:49 1985’s shock winners: Hormel, Lowe’s (the other one), Franklin Resources
7:41 The 1980–1990 decade: Hormel and McDonald’s huge runs and why none were predictable
8:10 Why you need small, value, and international beyond the S&P 500
10:58 Caller: retiring at 56, 72(t) rules, penalties, and whether IRA vs 401(k) location matters
14:28 Correction: SEPP applies only to the chosen account, not all pre-tax assets
16:36 Travel while you can: knees, age, lie-flat flights, and holiday banter
20:21 Caller: AVGE vs AVGV, value tilts, the overlap, and whether it’s worth the swap
22:49 Why AVGV exists (and why advisors may not need it)
27:35 Thanksgiving email: dividend-obsessed relative critiques VXUS payouts
29:53 What dividends really mean—and don’t—and why payout “stability” is useless
35:49 Voicemail: Fidelity wants 1.24% to “manage” half a 401(k); is it worth it? (No.)
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Tom and Don spend this post-Thanksgiving episode dismantling the illusion that big insurance companies—Northwestern Mutual in particular—are “financial advisors” rather than high-pressure sales organizations built on whole-life commissions. Don recounts his own early days as a Dean Witter cold-call cowboy, and the two walk listeners through a damning Guardian investigation revealing recruitment practices, high-pressure quotas, and the wealth-destroying math behind whole life. The phones open to calls about Cambridge’s nearly 3% wrap fees, sociopathic insurance sales relatives, term-insurance needs for young families, Roth vs. pre-tax decisions, and how to find a real fiduciary advisor. The theme is consistent: avoid sales machines masquerading as advice, and keep investors from being devoured by the industry’s worst incentives.
0:04 Tech glitches, Thanksgiving jokes, and Tom’s three-week vacation cadence
1:45 Why this is “not the best-of”—it may be the worst-of
2:26 Don’s Dean Witter cold-call origin story and the culture of selling, not advising
3:35 Northwestern Mutual’s rebrand and the Guardian investigation
4:08 False promises: “You’ll make $200K in three years”
5:12 The cold-calling boot camp and why only one trainee survived (Don)
6:46 Inside the student recruitment pipeline and the friends-and-family harvesting
8:11 Whole life math: the S&P at +3700% vs. Northwestern at +44%
10:50 Why whole life persists: commissions
12:41 Wrap-up of the Guardian findings and the industry’s structural sleight-of-hand
16:23 CALL: Cambridge Wealth “index” portfolio with hidden fees
23:14 The reveal: Cambridge’s small-account wrap fees approach 3% per year
25:54 CALL: Son-in-law selling insurance, knows it’s a ripoff, loves the money
28:55 Thanksgiving family drama and the “sociopath vs. psychopath” riff
29:59 CALL: How much term life insurance should a high-income parent carry?
32:52 CALL (same): Splitting Roth vs. pre-tax contributions when income is high
34:28 CALL: How to find a true fiduciary (and avoid annuity traps)
37:59 The advisor interview form and how to make salespeople disqualify themselves
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A light Black Friday edition tackles four listener questions covering Vanguard’s Digital Advisor, the timing of Social Security versus IRA withdrawals, whether to swap target-date funds for a VT/BND mix, and the wisdom (or lack thereof) of adding managed-futures ETFs. The show ends with a look at whether international bonds meaningfully improve diversification (answer: barely). The through-line? Keep investing simple, avoid expensive complexity, and stick with risk-appropriate, broadly diversified portfolios—holiday weekend or not.
0:09 Don debates doing a Black Friday episode but decides to keep listeners company
1:58 How to submit questions on the website and call on Saturdays
2:16 Q1: Is Vanguard’s Digital Advisor worth using?
2:56 Pros and cons: low cost, limited choices, avoid the active-fund version
4:29 Transition to Q2
4:55 Q2: Should a spouse take Social Security at 62 or delay and live off an IRA?
5:50 Pension changes the math—delay for the 8%/yr benefit
7:13 Target-date vs. VT/BND performance and Roth allocation logic
8:32 Risk tolerance matters more than account type
9:09 Actual performance: 2035 fund vs. VT/BND nearly identical
9:42 Q3: Adding managed-futures ETFs as a diversifier
10:23 Why Don strongly opposes adding complexity and high-expense hedges
11:36 Expense ratios make them non-starters
11:56 Q4: Should investors add international bonds?
12:46 Tiny diversification benefit; generally not worth it for DIY investors
14:38 Correlation improvement maxes out around one-tenth of one percent
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Don and Tom run through a Wall Street Journal list of “subtle signs it might be time to retire,” reacting to each one with their usual mix of disbelief, personal anecdotes, and gentle ribbing. The episode wanders into tech reluctance, job promotions nobody wants, Sunday dread, obsessive 401(k) checking, volunteering guilt, missing peers, feeling left out of friends’ retirements, boss-related misery, and aging knees. They also answer listener questions about Schwab Intelligent Portfolios and their high cash allocations, discuss the shrinking role of physical cash, explain the real value of pre-1964 silver quarters, and handle calls on Social Security math. Tom repeatedly tracks his daughter’s high-school soccer match on-air, providing live updates as the drama unfolds.
1:06 WSJ list of “subtle signs it’s time to retire” begins
1:40 Sign #1: Feeling numb arriving at work
2:11 Why neither host relates to workplace numbness
2:59 Sign #2: Shrinking from new tech tools (Tom jokes incoming)
3:40 Don embraces AI, Tom… less so
4:21 Sign #3: Avoiding promotions; why neither wants a bigger job
5:16 Sign #4: The “Sunday scaries”
5:50 Sign #5: Constantly checking your 401(k) balance
6:26 Mid-list recap before the break
7:42 Second half of the list introduced
8:57 Sign #6: Wanting to volunteer more
9:40 Sign #7: Realizing all your peers have retired
10:11 Don jokes about dying at his desk
11:34 Sign #8: Feeling left out as friends enjoy retirement trips
12:40 Sign #9: Hating your boss (and why that’s not a retirement issue)
12:56 Sign #10: Achy knees and “retire before you can’t enjoy things”
13:35 Doctors, guarantees, and aging joints
14:43 Call for listener questions
15:04 Call: Schwab Intelligent Portfolios’ big cash allocations
16:28 How Schwab makes money on the spread
18:20 Transparency vs. hidden fees
20:20 Back from break — Wednesday podcast explanation
21:31 Don hates change (the coin kind and the life kind)
22:30 Historical buying power of coins
22:56 Pre-1964 silver quarter value
24:15 Odds of finding one in circulation
25:10 What amount of money makes you bend over and pick it up?
25:47 Cleaning out the garage vs. hunting silver coins
27:36 Halftime soccer update: the comeback begins
29:02 Caller: misunderstanding “8% interest” from Social Security discussion
30:26 Caller Paul on cash vs. cashless society
31:51 Coca-Cola prices through time
32:57 Only 12–18% of payments today are cash
34:02 Holiday well-wishes and generational shifts
35:34 Bewitched, credit checks, and pre-internet detective work
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This episode opens with a warning to younger investors who take TikTok advice over historical perspective, especially around claiming Social Security early. Don and Tom walk through the guaranteed 8%+inflation benefit increase from delaying, why “take it at 62 and invest it” collapses under market reality, and how fear is driving a surge in early claims. They pivot to Bitcoin’s sharp drop and why crypto speculation is driven by greed, not protection, before teasing Don’s upcoming crypto short story. Listener questions cover bad long-term-care/annuity hybrids, overcomplicated “bucket” strategies, responsible portfolio risk, and finally a breakdown of two expensive high-volatility mutual funds—both easily beaten by low-cost index alternatives.
0:04 Message to younger investors about lacking market perspective
1:19 Why TikTok advice on claiming Social Security early is flawed
2:17 The real 8%+inflation annual increase from delaying benefits
2:27 The “take it at 62 and invest it” myth
3:47 Tom recounts Paul Merriman calling his allocation aggressive
4:49 Rising panic-driven Social Security filings
5:21 Don’s 69 vs. 70 claiming decision
6:11 Survivor benefit logic many forget
7:42 Imagining a sudden 30% crash—except it’s Bitcoin
8:29 Bitcoin’s drop from 124K to mid-80s, plus MicroStrategy leverage
9:58 Crypto culture, crypto research, and Don’s upcoming story
10:58 Crypto as a greed play, not protection
12:37 Emotions sabotage investing; the plan removes them
13:51 Why risk needs to match the plan, not ego
15:24 Crypto story teaser + Short Storyverses email plug
16:31 Listener question: NY Life Asset Flex LTC pitch
17:49 Why hybrid LTC/annuity products are weak and commission-heavy
19:47 “Bucket” confusion and the need for purpose
21:30 Caller Eugene: $250K “play money”
23:43 Reality check: could you watch $250K drop to $125K?
24:06 Why timing dips doesn’t work
25:20 Better uses for excess cash in your 70s
27:08 Tom: time for full planning review at age 77
28:38 Fund analysis: Morgan Stanley Growth A
29:25 Fund analysis: Invesco Equity & Income A
30:30 Why moving to low-cost Vanguard indexes is the logical move
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Don and Tom go deep on a shady “non-profit” financial education group that funnels retirees into high-commission indexed annuities, using a listener tip to unpack the advisor’s fake credentials, mismatched ADV filings, dubious fiduciary claims, and the simple math that reveals where the money really comes from. Along the way, they cover how to investigate advisors yourself, why financial fairy tales persist, and answer listener questions on Avantis gold holdings, private equity’s impact on small-cap value, and the quality of Schwab’s 529 plan.
0:04 Don’s industry rant and a look at the “American Financial Education Alliance” disguise.
1:01 How pseudo-nonprofits target advisors and consumers with “no-sales” sales pitches.
2:20 Tom’s take on the recycled seminar game and fake educator designations.
3:40 Listener tip sparks Don’s PI dive into the flyer, claims, and contradictions.
4:49 How to vet advisors using BrokerCheck and Form ADV.
5:58 The firm’s tiny AUM and impossible economics of their claimed operations.
8:02 The Maryland house vs. the Lakewood Ranch mansion — where the money REALLY comes from.
9:25 The inevitable reveal: indexed annuity commissions driving the whole machine.
10:18 Breaking down the seminar pitch language and the deceptive “market returns without risk” promise.
11:24 Why the sales story collapses under math and dividends.
12:34 The “licensed fiduciary” myth and regulatory reality for small firms.
14:38 How consumers get fooled by the fiduciary framing in seminar mailers.
16:13 Don and Tom dissect the pre-fab radio/TV show factories behind these advisors.
17:19 Why the meeting is the real sales trap — and how to avoid it.
18:48 Don’s plea: stop believing financial fairy tales.
19:26 Don jokes about infiltrating steak-dinner seminars undercover.
20:14 Transition to listener Q&A from Maryland: AVDV’s gold exposure.
21:26 Why Avantis owns gold miners without being “in gold.”
23:47 Momentum, value screens, and why the gold weight makes sense.
24:26 Gold Hill, Oregon 529 question: Is the Schwab plan good?
25:30 Age-based 529s and Schwab’s low-cost structure.
27:28 Private equity fears: will it starve small-cap value indexes?
28:41 Why the concern is mostly a media creation, not an investment reality.
29:48 Don on the IPO–private–IPO cycle and how markets actually work.
30:11 Why private equity performs worse in bad markets.
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A lively Friday Q&A episode tackling listener questions about FSAs vs. 401(k) contributions, BND vs. BKAG bond funds, intermediate-term bonds vs. CD ladders, Avantis fund-of-funds fees and structure, and the financial implications of New York City’s newly elected socialist mayor. The show blends practical investing guidance with jokes about annuity-salesperson Halloween costumes and a detour into political fears vs. economic realities.
0:04 Opening, Friday Q&A setup, thanks to Tom’s grandkids
0:44 Listener FSA dilemma and choosing between FSA funding or 401k
3:01 Why FSAs are painful and why a 401k wins when choosing one or the other
5:57 Comparing BND and BKAG bond funds, holdings, universe, credit quality
9:01 Listener joke: “scariest Halloween costume is an annuity salesperson”
9:55 Moving CD-ladder money to VGIT or BIV; differences and trade-offs
12:22 Thoughts on iShares LifePath target-date ETF (ITDC)
12:33 Why Avantis fund-of-funds exist and whether you pay double fees
15:36 Underlying fund costs inside AVGE and how the total expense ratio works
16:21 Question about NYC’s new socialist mayor and financial impact fears
17:54 Walking through political fears vs. practical economic reality
21:55 Why one politician can’t radically reshape a city’s economic fate
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You and Tom spend this episode unpacking a surprisingly liberating idea for investors: that average is good enough. Kicking off with your own story about a two-star podcast rating, you two stumble into a bigger truth—most people are chasing a level of portfolio perfection that doesn’t matter. Christine Benz’s Morningstar piece becomes the backbone of the discussion, contrasting “maximizers” (engineers, tinkerers, over-optimizers) with “satisfizers” (simple, diversified, sane). From there you hit Tesla’s trillion-dollar pay package drama, Bito’s goofy “dividends,” SGOV vs. CD ladders, fears about private equity sneaking into retirement plans, and a few classic Don-and-Tom tangents. The message: stop overthinking, build a sensible portfolio, and go live your life.
0:04 Don’s two-star review existential crisis and the epiphany about doing things for joy
1:16 Why being “average” in investing (and life) is perfectly fine
1:45 Elon Musk compensation debate and ETF shareholders not getting a vote
3:12 Don’s “brilliant raving lunatic” take on Elon and Tesla’s dominance
4:38 The kings of tangentiality finally introduce the show
5:55 Christine Benz and the “Good Enough Portfolio” philosophy
6:36 Maximizers vs. satisfizers explained (plus Bogle bobbleheads)
8:53 Why over-optimization rarely improves results
9:56 Happiness and second-guessing: satisfizers win
11:22 Time costs, tax worries, and the illusion of finding a perfect portfolio
12:33 Two-fund vs. ten-fund portfolios and why simplicity works
13:55 Working harder doesn’t usually make you richer—your job does
14:25 Listener letter: long-time fan from Silverdale reminisces about 1988
15:26 Tom recalls being put on the air after several glasses of wine
16:03 Acorns user asks about BITO’s wild “dividends”
18:10 Why BITO’s payouts are actually return of capital and cannibalization
19:58 BITO’s volatility roller-coaster (standard deviation 53)
20:12 SGOV vs. CD ladders for short-term retirement cash
22:07 Why emergency funds shouldn’t sit in a Roth IRA
22:58 Listener concerned about private equity creeping into 401(k)s
23:52 PE risks, political pressure, and greater-fool concerns
25:27 Don thanks listener “AlwaysLearning1953” for the positive review
26:49 Murder of Crows, sound effects, and the power of scary crows
27:36 New Tales Told update—more stories on the way
28:38 Saturday live show reminder and flyover banter
28:58 Don’s Kansas/Leavenworth childhood story detour
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Don and Tom open with the investor mistakes Christine Benz highlighted in Morningstar: portfolio sprawl, concentration in the same large-cap tech names, clinging to ancient active funds, ignoring reallocations, and failing at both asset allocation and asset location. The show then shifts into calls—first about fears of an “AI crash,” then a heartbreaking case of an 80-year-old widow stuck in an expensive, incoherent Schwab-built portfolio, which Don dismantles live. Later, Roth conversion strategy, smishing scams, and a closing riff on Bitcoin’s extreme volatility versus gold. A packed episode on how bad habits, high fees, and fear derail investors—and how a simple, globally diversified plan avoids most of it.
0:04 Intro and Christine Benz’s list of common portfolio mistakes
0:56 Portfolio sprawl and “hodgepodge-itis”
1:32 Overloaded baskets of large-cap tech stocks
2:52 The 31-year-old underperforming fund problem
3:54 Active vs. passive: the shift the industry still hasn’t admitted
4:03 Asset allocation errors driven by ignoring the plan
4:51 Why rebalancing matters (and why people never do it)
5:40 Asset location mistakes and why taxes demand a smarter structure
6:15 Why these errors are easy to fix with a simple plan
7:58 Don solo; open phones
8:23 Caller: Fear of an “AI crash” and whether it can tank the market
11:16 Building a portfolio that can withstand any crash
13:01 International ballast and why planning matters more than predictions
14:27 Don solo again; open phones
15:17 Smishing scams and the rise of SMS-based fraud
16:13 How cheap scam-software makes fraud explode
17:08 Caller: 80-year-old widow with an awful Schwab portfolio
18:27 Don investigates the tickers—high fees, obscure funds, bad structure
19:57 Schwab dropped her; Don: “This advisor should be fired”
21:07 Why the portfolio lost money and what those numbers really mean
22:26 Active funds, high turnover, and tax drag
24:01 Don’s verdict: unload the mess and move to simple, low-cost indexing
25:01 Why a target-date fund may be the cleanest fix
26:33 Take the risk quiz; why advisors should be boring
27:00 Don vents about industry incompetence and fee-only failures
28:23 Why advisors chase “exciting” instead of sound
30:02 Caller: Roth conversion when 70% of assets are in traditional IRAs
31:25 Why conversion benefits are minor but sometimes worthwhile
32:33 Strategy: convert up to top of the 24% bracket
33:19 Wrap-up and call for last questions
34:56 Gold vs. Bitcoin: which is actually stable?
36:09 Why Bitcoin’s volatility makes it a terrible “currency”
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You and Tom take on the myth of hard-and-fast financial rules by walking through Real Simple’s list of nine “rules you can break.” From the latte factor to credit cards, budgeting, bulk shopping, and the old “retire at 65” trope, the conversation keeps coming back to a single theme: money isn’t black and white. You push back against absolutists like Dave Ramsey, emphasize discipline over dogma, and highlight the practical realities of saving behavior, debt, lifestyle choices, and risk. Listener calls round it out — including a thoughtful inheritance question and a late-career investor worried about having “run out of time,” which you defuse with smart, flexible solutions.
0:04 Absolutism vs. nuance in personal finance
1:24 Dave Ramsey’s black-and-white rules
1:57 The latte rule and small vs. big expenses
3:36 Pay-yourself-first as the only rule that really works
4:57 Are credit cards bad? Protection, perks, and pitfalls
6:26 Truth lives between extremes
7:45 “Breakable” money rules from Real Simple
8:39 The myth of retiring at 65
9:59 Why more people work past traditional retirement age
11:00 Don’s TV story and accidental age-compliment
12:59 Is bulk shopping really a money saver?
13:55 Why strict budgets fail
15:04 Tom’s failing FaceTime and tech-phobia
16:02 Caller: leaving money to grandkids who vanished
19:43 Family lawsuits when inheritances differ
20:23 Caller: asset location and bond placement
24:55 Should you draw from 401(k) or IRA first?
28:43 Caller: “Am I out of time to retire?”
33:00 Solving retirement shortfall with portfolio structure
36:16 Don runs the numbers — immediate annuity option
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A listener’s nightmare 401(k) story sparks a deep dive into how small employers can delay, misuse, or even lose employee retirement contributions before they ever reach the plan custodian. Don and Tom explain the Department of Labor’s weak enforcement, why small plans are most vulnerable, and what workers must do to protect themselves. Then the show tackles backdoor Roth timing rules, Social Security “worst-case” planning, the appeal (or lack of) of mid-cap ETFs, and how to unwind a hodgepodge portfolio without triggering massive tax bills.
:04 When employers steal 401(k) contributions before depositing them
1:42 The WSJ case: three-year hunt for missing contributions
3:02 Why small employers are the highest-risk group
5:02 DOL enforcement loopholes and the “administratively feasible” dodge
7:04 What to do if your contributions never show up
8:09 Fidelity bonds, audits, and how recovery really works
9:39 Big-company plans vs. small plans
10:36 Inside the Amazon layoff notice fiasco
11:54 Listener question: timing a backdoor Roth in 2026 for the 2025 tax year
13:40 The Form 8606 trap and pro-rata consequences
15:03 Listener question: Should you assume Social Security cuts in your plan?
16:41 Why benefits probably won’t be cut—even though the system needs fixing
18:04 Listener question: Should anyone buy a mid-cap ETF?
18:46 Why good portfolios already own plenty of mid-caps
19:36 Listener question: Fixing 20 years of hodgepodge-itis at age 72
21:22 Taxes, capital gains, and the slow cleanup strategy
23:52 Why Wellington and Wellesley don’t fit a modern portfolio
25:20 Personal banter: vacations, spending guilt, and sci-fi
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Don fields a full slate of listener questions on everything from SGOV vs. high-yield savings accounts to the differences between AVUV and DFSV, why international stocks belong in a portfolio (but shouldn’t dominate it), and whether equal-weighted funds solve the “Magnificent 7” concentration problem. He digs into target-date and bond-fund suitability for short-term money, clarifies what “rules-based” really means for Avantis and Dimensional, and gently deflates misconceptions about long-term international outperformance. Along the way he riffs on talk radio’s decline, teases Tom’s dad jokes, and reinforces the core message: diversify, know your time horizons, and don’t overthink what good academic research already tells us.
0:04 Don opens Q&A Friday and reflects on radio’s slow fade
2:20 SGOV vs. high-yield savings accounts for emergency cash
5:13 Why AVUV and DFSV only overlap ~40% despite similar factors
8:43 Which fund is “wilder”: AVUV vs. DFA small value
9:54 Why international stocks belong in a portfolio—but not overweighted
11:41 Long-term U.S. vs. international return history
14:51 S&P 500 concentration and equal-weight ETF considerations
18:44 Equal-weight vs. small-value tilt vs. rules-based funds
20:07 Where to put 2–3 year money: savings, CDs, BND, or a near-dated target-date fund?
23:13 Better language than “active”: rules-based vs. systematic
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Don and Tom question a surprising Wall Street Journal column arguing that annuities should become the default option in 401(k) plans. They explore why the idea is gaining traction, where the logic breaks down, and how the insurance industry benefits when complexity outpaces understanding. Along the way, they dig into the real shortcomings of annuities—fees, opacity, inflation risk, liquidity traps—and why “guarantees” often mask the true cost. Listener questions follow, covering tax-efficient stock cleanup at Schwab, spouse disagreements over individual stock picking, automatic ETF withdrawals at Vanguard, and building Dimensional portfolios inside Aspire plans.
0:04 Don’s rant: “What the world needs now is… more annuities?”
1:20 WSJ’s argument: make annuities the 401(k) default
2:05 Why income complexity doesn’t justify default annuities
3:01 Do annuities actually solve longevity risk?
3:29 Inflation, joint-life costs, and who really wins
4:20 Insurance industry reputation and the unanswered criticisms
5:15 High fees, opacity, and why mistrust is earned
5:59 Are annuity sales tactics the real barrier?
7:02 Should annuities be in 401(k)s at all? Don vs. Tom
7:36 Why annuities are mostly sold, not bought
9:10 Liquidity traps and major-life-event risks
10:01 Why “plans” matter more than “products”
10:57 Listener questions: why nobody calls anymore
11:14 Q1: Selling a brokerage full of individual stocks at Schwab
12:46 Q1b: How to convince a spouse who loves stock picking
14:21 Indexing vs. anecdotal evidence
16:21 SPIVA data and why active managers lose
17:02 Q2: Can Vanguard automate ETF withdrawals?
19:05 Fractional shares and why purchases are allowed
20:25 Q3: Aspire 403(b) options and DFA overload
23:46 How many DFA funds do you really need?
24:44 Micro-cap risks and portfolio sprawl
25:42 Tom’s pumpkin-patch grandkid cameo
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Tom and Don grade Gen Z investors from a recent Wall Street Journal article, discussing their portfolios, common mistakes like stock picking, active management, and crypto speculation. They move into practical retirement and college-planning questions from callers — including Roth vs. taxable accounts, 401(k) catch-up contributions, 529 plans, and college costs pushing $90 K a year.
0:04 Gen Z investing habits and media influence
1:59 Grading five young investors from a WSJ profile
7:43 Financial-flinch reflex and planning plug
12:21 Listener: starting a 401(k) at 59
15:34 Listener: using taxable funds for a Roth contribution
20:24 Listener: Roth 401(k) catch-ups and 529 trade-offs
26:08 College costs and saving priorities
28:43 Listener: opening a 529 for a grandchild
36:12 Listener: portfolio check (AVUV + bond ladder) and AVGE recommendation
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Don and Tom tackle investor “magical thinking,” especially the belief that private equity, non-traded REITs, and other illiquid “exclusive” investments offer hidden superior returns. They walk through Jason Zweig’s recent reporting on a Florida pension fund that locked up money, paid higher fees, and earned under 1% a year. The conversation underscores why liquidity, transparency, and diversification matter far more than complexity or exclusivity. The episode also features listener questions on retirement withdrawal sequencing for a $9M portfolio, evaluating cash balance plans, and deciding between traditional vs. Roth 401(k) contributions. A recurring theme: boring portfolios win.
0:05 Magical thinking and the fantasy of “special” investments
1:52 Private equity realities: higher fees, no liquidity, often lower returns
2:46 The Indian Shores pension fund case
3:44 Withdrawal limits and 0.7% 5-year returns
4:34 Why endowments can do illiquid assets but you probably shouldn’t
5:21 “Roach motel” investing and lack of transparency
8:35 How mutual funds must provide daily liquidity vs. private funds that don’t
8:49 Excitement is bad; investing should be boring
9:54 Caller: $9M portfolio—withdraw taxable first or convert IRAs?
11:51 Traditional IRAs vs taxable sequencing strategy
14:17 Why taxable first lowers tax impact and preserves flexibility
16:03 Blackstone senior housing REIT losses and why “sure things” fail
17:39 Diversification protects you when single bets go bad
18:06 Why private deals appeal emotionally (exclusivity + status)
20:38 Caller: Tesla & concerns about private equity creeping into ETFs
23:07 Why mainstream ETFs won’t adopt illiquid private assets
24:43 REIT ETFs behave more like stabilizing bond substitutes
26:02 LeaveMeAlone email-unsubscribe tool discovery
28:04 Listener questions: send via site or voice form
30:51 Cash balance plan concerns—likely a stable value/insurance product
33:08 Another listener: Edward Jones 401(k) with American Funds C-shares
34:30 High-fee small-plan 401(k)s—why they happen and how to fix
36:27 Caller: Should we switch to Roth 401(k) contributions? Probably not here.
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Tom welcomes consumer advocate Herb Weisbaum (ConsumerMan) to talk through the rising headaches of modern travel and everyday scams. Herb shares a recent Delta Airlines ordeal where he was nearly stranded overseas because he didn’t have the exact credit card used to purchase his ticket months earlier — a policy he and others say is poorly disclosed and inconsistently enforced. The conversation expands to robocall loan scams, fake toll violation texts, and AI-boosted fraud that’s becoming harder to spot. Herb offers practical steps on how to avoid getting trapped, plus early holiday shopping advice as tariffs and supply issues push prices up. A lively, useful consumer-protection episode.
0:10 Tom introduces Herb Weisbaum and today’s consumer-focused discussion
1:14 Tom’s Heathrow airline mess and why travelers feel powerless
2:08 Herb’s far worse Delta experience: denied boarding without original credit card
3:44 Calling a neighbor at 3am to photograph the card and save the trip
5:13 Delta’s justification: “We’re protecting you from fraud”
6:20 Why airlines can mistreat travelers and get away with it
7:04 U.S. vs. EU passenger rights and compensation differences
8:32 Text scams: fake unpaid toll notices are surging
9:46 The new wave of “pre-approved loan” robocall scams
10:48 AI makes scam messages grammatically perfect and harder to detect
11:04 Slow down, don’t engage, verify before responding
12:20 Let unknown calls go to voicemail to avoid social pressure
14:07 Holiday shopping preview: tariffs, supply constraints, scarcity in decor and toys
15:55 Black Friday all season long—price tracking and refund requests
16:27 Brief detour into kid gifts, backpacks, and questionable plush monsters
17:21 Checkbook.org and ConsumerMan resources for unbiased help
18:17 Herb’s love of model trains and signing off
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This Friday Q&A tackles a familiar voice: Bitcoin Bob tries again to make the case for crypto as protection against currency debasement. Don breaks down what “debasement” actually means, why inflation gradually reduces purchasing power, and why Bitcoin’s extreme volatility makes it a poor replacement for the U.S. dollar. Productive assets remain the historically reliable hedge. Then: a comparison of target-date funds vs. a DIY three-fund portfolio, guidance for a couple aiming for early retirement with multi-account withdrawal planning, a discussion of equity/bond allocation in personal portfolios, and what might happen to the small China exposure inside global funds if geopolitical tensions escalated into war.
0:04 Friday Q&A intro and request for more listener questions
1:33 Bitcoin Bob returns: what “currency debasement” means
4:34 Bitcoin vs. the dollar: volatility and why stability matters
6:59 The real hedge: productive global assets over speculative tokens
8:29 Target-date funds vs. a three-fund portfolio in retirement
10:32 Asset allocation control vs. glide path defaults
11:20 Early retirement scenario: withdrawal sequencing, 72(t), and risk tolerance
14:55 When to add bonds and why emotional behavior matters
16:00 Don’s and Tom’s current equity/bond allocations
17:07 If the U.S. and China went to war: what happens to VT’s China exposure?
20:26 Why global diversification limits catastrophic loss
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Don and Tom take listeners on a wild ride through the booming (and frequently disastrous) world of leveraged ETFs. They break down how these funds promise double or triple the excitement but mathematically bleed away returns through volatility decay. A few listener questions follow, covering retirement cash buffers, negotiating advisory fees on large portfolios, and comparing IRTR vs AOM for a near-retiree allocation. Humor, subtle self-mockery, a Jonas Brothers detour, and a reminder that gambling is not investing.
0:04 Opening banter and the thrill-seeker pitch for leveraged ETFs
1:29 Leveraged single-stock ETFs explode from zero to $40B
3:26 MicroStrategy example: stock up ~30%, 2x ETF down ~65%
5:03 How volatility decay quietly destroys leveraged returns
7:36 5x ETFs and the “go to zero in one day” problem
9:01 When leverage stops being “investing” and starts being gambling
11:38 Listener question: Should retirees hold a bigger cash buffer to avoid selling in downturns?
14:37 Listener question: Should a $4M managed client negotiate fees? (Yes.)
17:43 IRTR vs AOM comparison for someone three years from retirement
22:54 Seasonal weather rant and hunkering down for productivity
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Don and Tom tackle the universal truths of investing — namely, that most investors underperform the market due to their own behavior. They discuss the persistence of emotional decision-making, the dangers of market timing, and the importance of diversification and sticking to a plan. Listener calls cover UGMA accounts, bond allocation in IRAs, downsizing for assisted living, robo-investing, annuities, and advisor ethics. The show mixes data-driven insight with classic Real Money humor and real-world financial guidance.
0:04 Universal truths of investing and investor behavior
2:07 Why investors underperform their own funds (Morningstar “Mind the Gap”)
3:30 Market sentiment, cash levels, and memories of 2000 and 2008
4:31 Peter Lynch on market corrections and investor overconfidence
5:40 The danger of timing the market and trusting stocks too much
6:40 “Financial Flinch Reflex” parody PSA (Appella Wealth ad)
7:41 Listener: diversifying a Vanguard UGMA for grandson’s education
12:14 Listener: TSP rollover, age-based bond allocation, and risk tolerance
14:40 The right asset mix for long-term investors in their 40s
15:48 Listener: selling condo for assisted living — planning for late-life care
18:45 Spending vs. inheritance — why it’s okay to use your own money
20:27 Producer’s question: is SoFi robo-investing safe for beginners?
22:56 Emergency funds vs. long-term investing; debt priorities
26:03 Listener: spouse investing in individual stocks — handling differences
28:32 Listener: total market vs. S&P 500 core fund; AVGE and DFAW explained
30:17 Listener: 8% annuity “crediting rate” myth and why it’s misleading
35:42 Real internal rate of return on annuities and risk comfort
37:12 Listener: following advisor from Ameriprise to a bank — fiduciary warning
39:36 Why commissioned products persist and how fiduciary rules differ
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Don and Tom tackle the timeless question: why do you invest? They challenge the “TINA” mindset (“There Is No Alternative”) and dissect new research claiming retirement savers should own no bonds at all. They argue that while stocks outperform over long stretches, bonds remain essential for emotional stability and survival during market crashes. Listeners join in with sharp questions about CD ladder withdrawal strategies, crypto-based dividend schemes, securities lending, and international ETF allocation. The show wraps with a skeptical look at Vanguard’s growing tilt toward active management and new global funds from Avantis.
0:04 Why do you invest? Defining purpose versus chasing returns
1:29 The rise of “TINA investing” — there is no alternative to stocks?
2:30 Bonds as shock absorbers when markets collapse
3:57 Questioning global overweights in new stock research
5:01 The emotional toll of chasing maximum returns
6:12 Bonds’ true role: keeping investors calm and consistent
7:50 Zweig’s conclusion — even he still owns bonds
9:06 Retirement timing risk and the case for diversification
10:29 Caller Jay from Georgia — testing a five-year CD ladder withdrawal plan
12:34 Turning the CD ladder into part of a bond portfolio
13:46 What to do with the ladder during a market downturn
14:47 Caller Jason from Washington — Elon Musk, Bitcoin, and the “Strike/Strive” gimmick
15:49 The math behind high-yield crypto preferreds doesn’t add up
17:18 When hype meets hazard: Ponzi parallels in risky yields
18:57 Why “everyone’s doing it” isn’t a defense for bad strategy
20:04 Why MicroStrategy’s dividend promises defy logic
21:15 Listener question — securities lending in IRAs
23:09 How stock lending actually works (and why it barely pays)
24:18 Why most small investors shouldn’t bother
27:15 Vanguard’s new identity crisis: the push into active management
27:47 The profitability problem of index funds
28:53 Can Vanguard’s active funds really beat their benchmarks?
31:48 Why past performance still fails as a predictor
33:14 Vanguard’s crypto flirtation and industry pandering
35:43 Caller Craig from Seattle — expanding global exposure with AVNV
36:32 The case for adding Avantis International Value ETF
37:46 Early results and long-term expectations
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Don and Tom unpack why even smart, financially literate people sometimes need a financial advisor — prompted by Morningstar’s Christine Benz explaining why she hires one. They explore the value of second opinions, professional organization, tax guidance, spending permission, and succession planning. The conversation also draws lines around who doesn’t need an advisor (DIY investors under 50 with good discipline) versus who does (retirees, disorganized investors, and anyone over 65 facing complexity). Later, they tackle listener questions about small-cap value ETFs — comparing AVUV, DFSV, and SLYV — and close with a retirement scenario review for a disciplined 77-year-old federal retiree. A lighthearted finish touches on long-term care insurance, empty nesting, and the Raiders’ black hole stadium.
0:04 Reintroducing the need for financial help (but not that kind of help)
1:17 Christine Benz’s surprising admission: she has a financial planner
2:27 The value of a “responsible second opinion”
3:25 Why Benz says peace of mind has real value
3:50 Reasons to hire an advisor: second opinions, tax guidance, rebalancing, perspective
4:54 When hourly financial advice makes sense
6:38 Organization and accountability as hidden benefits
8:08 The disinterested spouse problem
8:40 Why succession planning matters more than you think
9:32 “Permission to spend” — an underrated role of advisors
10:19 Who doesn’t need an advisor: young savers and disciplined investors
11:27 When to get a second opinion even if you’re DIY
12:18 Spotting bad advice and hidden annuities
13:03 Who does need an advisor: hodgepodge portfolios and over-50 investors
14:09 Complexity and the need for help beyond 65
14:47 The problem of small investors being preyed upon by salespeople
15:52 Listener question: adding small-cap value exposure
16:47 Comparing AVUV, DFSV, and SLYV performance and structure
19:00 Expense ratios and diversification differences
20:18 Don and Tom’s ETF verdict
21:10 Retirement checkup: 77-year-old with pension and LTC coverage
22:06 Evaluating liquidity, income, and survivorship
23:48 The vanishing quality of long-term care policies
24:56 Tom’s empty-nest plans and aching knee
25:43 Raiders jokes and the black-painted stadium
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Don answers a range of listener questions covering topics from Fidelity’s fully paid lending program to the Roth 401(k) decision and mortgage payoff strategies. He explains why stock lending rarely adds much value for ETF investors, why paying off a 2.6 percent mortgage makes little financial sense, and why even Berkshire Hathaway isn’t a substitute for true diversification. Listeners also learn about HSA payroll tax savings and how to build Roth flexibility without triggering the pro-rata rule.
0:04 Friday Q&A intro and listener invitation
1:25 Fidelity’s fully paid lending program explained—small returns, limited upside
3:47 When stock lending might make sense for rare or hard-to-borrow shares
4:33 Mortgage payoff debate—2.6% rate vs. 7% investing return
5:30 Don confirms: investing wins, emotion aside
7:09 Caller argues for Berkshire Hathaway B as the “perfect” one-stock portfolio
9:14 Don dismantles the myth—Buffett’s own warnings, risk concentration
11:23 401(k) vs. Roth 401(k)—how to decide and why a plan matters
14:04 Backdoor Roth options for self-employed spouses
15:32 Importance of long-term planning once portfolios near $1 million
15:56 HSA payroll advantage—no Social Security tax on contributions
17:11 Using a Roth to store “extra mortgage” money until retirement
18:08 Why paying off a low-rate mortgage later may not make sense
19:37 Free fiduciary portfolio checkup offer from Apella Wealth
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Don and Tom open with an honest reflection on market déjà vu—how today’s investing climate echoes the speculative excesses of 1929 and 2008. Citing Andrew Ross Sorkin’s new book 1929: Inside the Greatest Crash in Wall Street History, they discuss the modern “financialization” wave: private equity, venture capital, crypto, and private credit being repackaged for retail investors and even 401(k)s, often under looser regulation. They warn listeners about “mark to make-believe” valuations and Wall Street’s relentless drive to sell complexity to the masses. The conversation moves from cautionary history (leveraged trusts of 1929, margin loans, and subprime mortgages) to present-day parallels like Bitcoin ETFs and private-market tokens. The takeaway: avoid opaque, speculative products; stick with transparent, low-cost diversification. In the Q&A, they answer listener questions about simplifying global portfolios with VT vs. VTI/VXUS, and about selling or donating concentrated stock positions from employee plans.
0:04 Opening disclaimers and acknowledgment that the episode isn’t meant to scare investors
1:18 Historical parallels—1929, 1987, 2008—and the feeling of “market déjà vu”
2:10 Introducing Andrew Ross Sorkin’s new book 1929 and his NYT column on modern speculation
3:20 Financialization and the loosening of investor protections in the 2020s
4:33 Wall Street’s constant invention of confusing products that favor sellers
4:58 Robinhood’s Vlad Tenev and the illusion of democratizing risk
6:12 Lowering the barriers to private markets and what that means for investors
7:26 Echoes of 1929: leveraged ETFs, margin-like structures, and “Russian-doll” debt
8:29 The perils of leverage and speed of modern market declines
9:02 Private-market tokens and the “mark-to-make-believe” problem
10:25 Overvaluation, lack of liquidity, and Wall Street’s interest in 401(k) assets
11:41 Historical leverage shifts—from banks to private credit
12:58 Why trusting financial “authorities” can be dangerous
13:32 Emotional honesty: people lie, and investors must self-protect
14:42 Jealousy, lottery-thinking, and envy as behavioral pitfalls
15:36 Investing as elimination—avoid what’s complex, costly, or confusing
16:48 Listener Q&A: two-fund simplicity (VT + BND) vs. multi-ETF tinkering
18:38 The temptation to overweight U.S. equities
20:00 Contrarian case for international exposure (VXUS)
21:15 ESPP stock cleanup: when to sell concentrated holdings
22:44 Charitable giving of appreciated stock for tax efficiency
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Don and Tom go after one of their favorite targets: bad actors in the financial industry—especially those who flee regulation by becoming insurance salesmen. They break down a shocking new study showing that 98% of brokers kicked out by FINRA stay in the business by selling annuities and other insurance products, often with little oversight. The duo compares this behavior to “cockroaches,” slamming state insurance commissions for weak enforcement and minimal fines. Later, they tackle Washington State’s ballot measure SR 8201 on investing long-term care funds, answer listener questions about 529 plans versus UTMAs, discuss 457 plan costs and fund choices, and close with a fun chat about Halloween chaos and coffee and cocoa prices.
0:04 Opening rant on misbehavior in the financial industry and the perils of “bad advisors.”
1:03 How fired brokers reappear as insurance salesmen—98% stay in the industry.
3:10 Why state insurance oversight is toothless and how low the penalties really are.
5:14 Insurance firms masquerading as planners—why fiduciary-only advisors matter.
6:03 The study’s “cockroach” comparison and why the problem persists.
7:37 How to vet your advisor using FINRA’s BrokerCheck and state insurance lookups.
9:16 State vs. federal regulation—why the insurance lobby spent $200 million to avoid SEC oversight.
11:08 Caller Beth from Washington asks about SR 8201—investing long-term care funds in stocks.
13:27 The fiduciary perspective: diversification and realistic expectations.
15:23 Caller Gene from Puyallup on 529 plans vs. UTMAs for grandkids.
17:55 Tax control, gift rules, and the best state 529 options.
19:20 Holiday gifting and a little banter about who’s on Tom’s “nice list.”
20:22 Halloween costumes, tourists, and Celebration, Florida trick-or-treat madness.
23:28 Behind the scenes: Don reveals the entire “Talking Real Money” production staff (himself).
24:32 Podcast email list plug—how to subscribe at TalkingRealMoney.com.
25:35 Explaining podcasts for the AM radio crowd—how to find Talking Real Money on your phone.
27:30 Listener question from Matthew in Illinois about 457 plan costs and hidden fees.
30:38 The truth about 457s, penalties, and why Schwab’s low-cost ETFs may be smarter.
32:34 Caller Rob from Bellevue discusses attending RetireMeet and noticing the Apella building.
33:18 Wrapping with cocoa and coffee futures—good news for chocolate, bad for espresso lovers.
37:49 Don plugs Litreading’s Scary Story Season before switching to Christmas stories.
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Don and Tom tackle the timeless topic of diversification — why it’s back in style, why it’s so hard to maintain, and why most investors (and pros) still get it wrong. They walk through how market “leadership” shifts over decades, the global vs. U.S. split, and why comparing your portfolio to the S&P 500 is often a trap. Listener questions cover ETF access at T. Rowe Price and Vanguard, whether to invest or pay down debt, and how the 5% flexible withdrawal rule works in early retirement. Plus, the guys riff on Halloween candy inflation, Social Security COLA bumps, and Don’s LitReading “Scary Story Season.”
0:04 Show open — Saturday radio edition and why repetition matters in financial education
1:03 The fashion of diversification — and why it’s “back in style”
2:27 International and small-cap value resurgence
3:15 Why investors chase past returns instead of diversifying
4:02 Gold, inflation, and recency bias — lessons from the 1980s
5:21 U.S. vs. international allocation debate: market cap vs. 50/50
6:20 The long wait for Japan’s market recovery
7:41 Practical diversification tools — AVGE, DFAW, VT
8:19 Stop comparing everything to the S&P 500
9:08 Historical proof: global portfolio vs. S&P since 1931
10:02 Caller Charlie — buying Avantis or DFA ETFs through T. Rowe Price or Vanguard
12:39 How fund custodians differ from managers
13:27 Checking portfolio exposure with Morningstar
14:42 Caller Gabe — invest or pay off debt?
16:45 When to pay off a car loan vs. mortgage
19:35 How to handle multiple mortgages and long-term plans
20:22 Social Security’s 2026 COLA bump and the “good news/bad news” of $102 more a month
22:21 Inflation realities — coffee, beef, and Halloween candy
25:02 Candy talk — shrinkflation and Don’s trick-or-treat haul
25:54 LitReading plug: “Scary Story Season” and Philip K. Dick’s The Hanging Man
27:34 Search “Don McDonald” in Apple Podcasts — chiropractor cameo included
29:05 Listener Victor (a.k.a. George) — can $4 million last 60 years with 5% withdrawals?
31:38 How the flexible withdrawal method works in practice
33:49 Retirement purpose, Monte Carlo results, and FIRE skepticism
37:41 Kindleberger quote on bubbles and envy: “There’s nothing so disturbing as to see a friend get rich.”
38:55 Kindleberger’s background and Manias, Panics, and Crashes
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Tom Cock and Apella Wealth advisor Roxy Butner team up for a lively listener Q&A episode covering everything from the new wave of penny-stock IPOs to retirement readiness and tax traps. Tom opens with a warning about the surge in risky penny-stock offerings, then the two dive into listener questions about annuity sales pressure at Fidelity, portfolio diversification mistakes, CD taxation myths, Roth conversions, and one standout 21-year-old listener getting her financial life off to a stellar start.
0:05 Tom opens with a warning about the explosion in penny-stock IPOs
1:26 Why “lottery-ticket” stocks nearly always burn investors
2:21 Diversify, stay tax-efficient, and skip the hype
2:30 Roxy joins for listener Q&A
3:38 Fidelity’s annuity pitch — a listener wonders if it’s time to leave
5:05 Who’s truly fiduciary: Fidelity vs. Vanguard vs. Apella
6:14 Vanguard dipping a toe into crypto
6:51 Quabina from Ohio: $2.2M at 47 — diversified enough to retire at 55?
8:14 Missing global diversification and bonds in an all-U.S. portfolio
9:57 Early-retirement planning challenges and healthcare costs
10:20 How to design the right stock-bond-international mix
11:36 Daniel from California: Are long CDs taxed as capital gains?
13:04 Why CD interest is always ordinary income — and muni bond alternatives
13:29 Year-end planning: RMDs, Roth conversions, and tax optimization
14:45 Common tax mistakes and mis-placed assets
15:19 Emily from Ohio: “Young and Dumb” — a 21-year-old investing the smart way
18:51 Building a first Roth IRA and why bonds don’t belong yet
20:00 One-fund simplicity: AVGE vs. VOO
21:41 Long-term mindset: global diversification and patience pay off
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Don and Tom tackle another full “Q Day,” answering listener questions on Roth fund selection, bond fund gimmicks, real estate returns, California’s odd HSA tax treatment, switching from Vanguard to Avantis, copying politician trades, and whether Vanguard’s Cash Plus account beats its money market fund. The episode mixes practical investing logic with humor, skepticism, and a bit of Don’s plug for his new storytelling podcast, New Tales Told.
0:04 Q Day begins — Don riffs on “Q” words and high-quality listener audio
1:42 Betsy from Minnesota asks: best funds for a Roth IRA (AVUV, VOO, AVGE)
2:39 Don suggests simplifying to AVGE, but warns of risk and emotional resilience
4:12 Jesse from Seattle on CPAG “tax-efficient” bond ETF — Don calls it a gimmick
5:55 Don’s math: CPAG only helps slightly at 35% tax bracket, not worth complexity
9:06 Listener compares 403(b) vs. home value growth — Don confirms results typical
12:45 Real estate’s weak real return over time and lifestyle vs. investment value
12:45 California HSA confusion — Don explains CA taxes HSAs like normal accounts
15:22 Nathan from Georgia: Vanguard vs. Avantis funds, and “copy politician trades”
17:20 Don: Avantis adds small/value tilt, AVGE can simplify portfolio management
19:14 Don: “copy-trade” apps are expensive, delayed, and silly gimmicks
20:58 James from Virginia: Vanguard Cash Plus vs. money market funds
22:34 Don explains FDIC difference and risk-reward tradeoff, prefers money market
24:11 Closing reflections, legacy talk, and plug for New Tales Told
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Don and Tom revisit the Social Security debate after new Wall Street Journal and New York Times articles challenge long-standing advice to delay claiming. They dismantle clickbait claims that “waiting doesn’t make sense,” highlighting emotional biases, unrealistic investment assumptions, and spousal benefit considerations. The episode also covers whether Social Security counts as an asset, then shifts to listener questions about 529-to-Roth rollovers for graduate school, switching funds in an IRA, and managing company stock in an ESOP-based 401(k).
0:00 Why they keep returning to Social Security and why 25% of retirees rely on it entirely
1:43 Two-thirds claim before full retirement age; Wall Street Journal’s clickbait headline
3:02 The “bird in hand” fallacy and instant-gratification bias
3:48 Don’s confession: took Social Security at 69—and dogs ruined the travel plans
4:40 WSJ’s faulty 5%-return argument and why most investors won’t achieve it
5:43 The math: waiting pays more monthly, but longevity is the unknown
6:32 Trade-offs between retiring early, portfolio drawdowns, and spousal benefits
7:35 NYT’s claim that Social Security is America’s most valuable “asset”
8:08 Don’s rebuttal: it’s income, not an asset—you can’t liquidate it
9:49 Why people misclassify Social Security and how bonds fit differently
10:08 When and how to get a second (fiduciary) opinion on claiming strategies
11:00 The plague of commission-driven “advisors” and fake fiduciaries
12:29 Old brokerage “no-load fund” lies and how similar games persist today
12:40 Listener Q&A: overfunded 529 plan vs. Roth rollover for grad school
14:27 Midwifery degrees, student-loan math, and the 5% rate cutoff
17:13 Rollover IRA question: switching Fidelity funds to Vanguard ETFs
18:15 Active vs. index funds—why fees and diversification matter
20:05 Active-active management and small-cap risk humor
20:54 ESOP question: how much company stock is too much? (Hint: under 5%)
22:42 Selling discipline and diversification in employee-owned firms
24:39 Don and Tom joke about their own ownership and “sell-out” strategy
25:04 Daily calls, good-natured ribbing, and reminders about Saturday’s live show
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Don and Tom dive into common misconceptions about what’s really been the top-performing asset class over the past five years—spoiler: it’s not the S&P 500. They compare U.S. large-cap growth with international small-cap value, using Larry Swedroe’s data to highlight the importance of global diversification. Listeners call in about estate planning, withdrawal rates in retirement, and portfolio construction. The hosts explain community property rules, flexible withdrawal strategies backed by research, and which small-cap value ETFs they prefer. The episode closes with a reality check on Bitcoin’s latest crash, revisiting Mark Hulbert’s warning that crypto isn’t an asset class but a risky “thingy.”
0:04 Opening banter on the show’s long Seattle run and mission to simplify money.
2:08 The S&P 500 obsession—why investors overweight large U.S. growth stocks.
3:23 Larry Swedroe’s quiz: best-performing asset class 2019–2025 (hint: it’s not U.S. large growth).
4:07 Dimensional International Small Cap Value Fund (DISVX) vs. S&P 500 Growth (VOOG).
5:20 Why diversification and global exposure matter long-term.
6:20 Break: “Financial Flinch Reflex” PSA.
7:42 Diversification means holding assets that sometimes disappoint you.
8:33 Don’s marriage analogy and listener call-in from Baltimore about trusts.
10:15 Estate simplicity, beneficiary designations, and when trusts are unnecessary.
11:55 The danger of “trust mills” and the value of family transparency.
14:40 Community property vs. joint tenancy—Washington’s unique tax advantage.
16:36 Call from Michael: flexible vs. fixed withdrawal rates in retirement.
17:29 Why a 5% flexible withdrawal often beats the classic 4% rule.
20:19 Research roundup: Kitsis, Vanguard, Morningstar confirm flexible success rates.
23:09 Listener from Tennessee asks about capital-gains exclusions.
25:44 Chris from Seattle: using target-date funds to fix a “hodge-podge” portfolio.
27:24 Adding small-cap value (AVUV) to target-date funds for tilt and simplicity.
28:34 Listener from New Hampshire asks which planning software Appella Wealth uses.
30:06 Call from Sam: best small-cap value ETF options (AVUV vs. VBR).
33:21 Risk, volatility, and why small-cap value offers higher expected returns.
35:47 Mark Hulbert on crypto’s crash—bigger than 1929 by percentage.
36:54 Why hype, not utility, drives crypto coverage.
38:36 Final takeaway: investors remain too U.S.-centric; diversify globally.
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Don and Tom kick off by joking about their “record-breaking” call drought before diving headlong into the week’s biggest speculative loser: crypto. The duo dismantle the mythology around Bitcoin and its countless imitators, comparing the excitement of trading coins to sports betting and reminding listeners that portfolios are for investing, not gambling. They tie the current crypto crash to leverage, insider-like trades, and the same fraud patterns seen in history’s great financial cons—from Jay Gould’s gold-cornering to Elizabeth Holmes’ blood-testing farce. Later, they field listener questions on asset location, liquidity management, emerging-market exposure, and the danger of leverage via MicroStrategy’s Bitcoin bet. Through it all, they emphasize fiduciary discipline, skepticism toward hype, and the basic rule: excitement and good investing rarely mix.
0:04 Pretending last Saturday’s show didn’t happen; Tom’s pun about “Pacific” questions.
1:41 Crypto crash carnage—Bitcoin off 16%, Ethereum down 25%, “Trump Coin” collapsing.
2:30 Comparing crypto’s thrill-seeking crowd to sports betting mania.
3:55 Why your financial advisor should not be your gambling coach.
4:48 The leveraged, insider-ish side of crypto speculation.
5:06 The absurdity of 10,000+ coins that serve no purpose but gambling.
7:40 Calling crypto “speculative” and comparing it to a casino roller coaster.
8:10 Binance payout trouble—proof many players don’t know how to run big-money businesses.
10:32 MicroStrategy’s leveraged Bitcoin plunge and the perils of margin.
11:37 The illusion of “value” in digital tokens versus productive assets.
12:55 Historical echo: borrowed money, bubbles, and 1929-style leverage warnings.
15:25 Listener questions segment opens; lighthearted banter about philately and call volume.
17:02 “ChatGPT beats bad advisors” — asset location done right (bonds in IRA, stocks in Roth).
18:30 Why most “advisors” ignore tax planning in favor of commissions.
20:23 Jay Gould, robber barons, and the Wall Street Journal’s bizarre defense of con artists.
22:12 From Nikola to Theranos—lying as business strategy and why “gray areas” hurt investors.
24:53 The moral cost of tolerating fraud disguised as innovation.
26:36 Why trust is the real foundation of capitalism, not creative deception.
27:00 How to protect yourself: fee-only fiduciary advice and due diligence.
27:36 Mariners hangover theory for low call volume; nostalgic TV banter (“Bewitched”).
29:06 Caller Tom (Seattle): $4 M portfolio, $1 M in money market—how much liquidity is too much?
30:34 The hidden risk of waiting too long to react when rates fall.
33:08 Building a CD ladder to lock yield without betting on one-day rates.
34:25 Quick take: Why they’d avoid owning Boeing stock individually.
36:18 Caller Justin (Florida): emerging-market allocation for high-risk investors.
37:29 Case for small-cap and value tilts, including emerging markets.
38:34 Should you exclude China? Why it’s still essential in global portfolios.
39:29 Closing reminders—use the website for questions, and find fiduciary help at TalkingRealMoney.com.
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Don and Tom tackle a mix of market mania and listener questions, skewering speculative fads like meme stocks, SPACs, private credit ETFs, and covered-call funds. Don opens with a scam text story before the duo dive into the absurdity of “get-rich” products during a record-breaking market. They stress discipline, diversification, and turning off CNBC — repeatedly. Listener questions include Roth conversions in high tax brackets and funding a home purchase without wrecking retirement plans. The show ends on a hilarious tangent about listeners wearing backpack banners to promote Talking Real Money.
0:04 Scam text from Colorado and the hazards of living alone in a studio
1:09 Market highs and the illusion of perfect timing
2:35 Stock concentration, meme stock mania, and the “Magnificent Seven” dominance
3:34 Listener call: investing in a soccer team partnership promising 15–30% returns
5:12 Why “too good to be true” often is — scams and speculative traps
6:09 Covered-call ETFs (JEPI, GPIQ) explained and debunked
9:39 New private credit ETF (PCR): high fees, low transparency, huge risk
12:49 CNBC hype vs. reality — why turning off financial TV is sound advice
16:21 Listener question: Roth conversions and tax traps in the 30% bracket
19:26 Another listener: funding a new home without derailing retirement
21:47 Don’s rant on overpricing homes — “every house sells at the right price”
23:24 Real estate emotion vs. math — the price always tells the truth
24:31 Episode wrap-up: humor, gratitude, and an absurd “wearable banner” promo idea
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Don answers six listener questions covering CD ladders vs. bond funds, global diversification for young investors, allocation shifts for early retirees, HSA documentation rules, 529 plan comparisons, and whether Dave Ramsey-style portfolios need bonds. He closes with practical guidance on holding cash for opportunities and a reminder about the value of disciplined, evidence-based investing.
0:10 Friday Q&A intro and how to send in questions
1:51 Are CD ladders a good replacement for bond funds?
3:37 How to build a disciplined CD ladder and avoid rate-timing mistakes
3:41 A father asks how to diversify his daughter’s Roth IRA beyond VTI
5:48 Couple planning early retirement—asset allocation and 72(t) options
9:41 Why bonds exist: emotional stability vs. return chasing
11:29 The case for international diversification
11:29 Long-term HSA strategy and what to do without old receipts
14:32 How to recreate expense records and save PDFs going forward
15:26 Which 529 plans are best for kids aged 2–12? (Utah vs. Schwab)
17:28 Dave Ramsey investing myths and the real purpose of bonds
20:36 When to start adding bonds—take the Talking Real Money risk quiz
21:00 Where to park six-figure cash for car or property purchases
22:46 Short-term safety vs. yield trade-off
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Don swats a studio bug, then swats down the idea of dividend-driven retirement portfolios. Drawing on Jason Zweig’s interview with Richard Thaler, they explain why retirees should focus on total return—spending from a diversified portfolio rather than chasing yield. They hit Robinhood’s profit model, bid-ask spreads, and the need for automatic-enrollment retirement plans. A listener call leads to a discussion of Social Security timing, debt-free retirement, and (yes) hodgepodge-itis—Don’s term for chaotic portfolios. Things wrap with a jailed investor’s question, some gallows humor, and the usual banter about holidays and compliance.
0:04 Bug chaos and phone-line reminder
1:41 Why dividend-income portfolios are a trap
2:50 Jason Zweig & Richard Thaler on total-return spending
4:18 Total return beats “high-dividend” illusions
5:39 Robinhood’s option-spread profits and the myth of “free” trading
6:15 Schwab vs. Robinhood: relative honesty in bid-ask spreads
7:43 Thaler’s take on missing retirement plans and automatic savings
9:05 Anniversary talk and the failed “Debbie Show” experiment
10:15 Back to Thaler—why most workers still lack plans
11:39 Tesla options example showing 7 percent spread
12:05 Case for national retirement depository & hybrid Social Security
13:33 Hodgepodge-itis defined (and owned by Don)
14:51 Low call volume and the Mariners’ hangover
15:52 Listener Kevin asks about dividends vs. selling stock
16:53 Reinvesting dividends vs. total-return withdrawals
18:17 Dividends reduce company growth potential
19:45 Why high-yield chasing kills diversification
20:07 Caller David, age 67, plans retirement & asks how to prep
21:55 Social Security timing advice—benefits rise monthly
22:50 David’s details: city pension, deferred comp, house, no debt
24:07 Getting professional fiduciary advice before retiring
25:23 David’s crypto confession and $3K Ripple gamble
27:27 Jail-bound investor asks where to park money
30:18 Don & Tom debate investing from behind bars (humor intact)
33:19 Columbus Day scheduling confusion & closing banter
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Don and Tom open with banter about the weather, baseball playoffs, and studio quirks before diving into what it means to be a “millionaire” today versus in 1890. They explore how much of modern net worth is illiquid, why home equity and retirement funds can trap wealth, and how planning for liquidity and income is crucial. The conversation transitions into a discussion of market volatility, rare earth trade tensions with China, and Brett Arends’ critique of index investing. They counter with historical perspective, humor (and potato chips), and advice about risk, rebalancing, and human behavior. Later, listener calls cover portfolio structure, Empower vs. Vanguard advisor options, and evaluating advisor fees and fund costs. The show closes with their classic blend of education, sarcasm, and fiduciary realism.
0:04 Opening banter, phone number, Florida “cold front,” and baseball chatter
2:33 Topic intro: What a million dollars means now vs. 1890
3:58 Comparing historic vs. modern millionaires and net worth equivalency
4:43 The illusion of wealth—why 70% of assets are often inaccessible
5:30 Planning for liquidity: why paying off a mortgage too early can backfire
6:37 Don’s retirement planning promo
7:39 Historical comparison: 1890s Gilded Age vs. today’s millionaire stats
8:19 Market globalization and modern wealth concentration
9:43 Rare earths and the U.S.–China tariff skirmish
10:22 Market check: stocks, bonds, and gold all dip; volatility talk
12:04 Don’s “unnamed thing” (Bitcoin) drops 10.5%; discussion on risk and rebalancing
13:48 Don shifts to 60/40 allocation—explains rationale near retirement
14:34 Brett Arends’ “Dumbest Stock Market in History” critique discussed
16:00 Debate: Are index investors stabilizing markets through consistency?
17:19 Potato chip tangent and investor psychology
18:32 Arends’ bearishness vs. evidence-based investing
20:00 Protecting your psyche, not every dollar, from market declines
20:20 Podcasting history—when Talking Real Money began
21:32 Caller Samir (Virginia): $4M net worth, suffering from “hodgepodge-itis”
24:15 Don and Tom’s prescription: stop investing until you have a plan
25:42 Margin loan temptation and why 10.5% interest kills the idea
27:00 Tom reinforces the need for a fiduciary planner
27:32 Caller Chris (Texas): moving from Empower to Vanguard PAS
29:21 Vanguard vs. Empower: conflicts, fund choices, and planning gaps
31:46 “Half-pregnant” advice models and Bogle’s legacy examined
34:20 Broader critique: single-provider risk and investor behavior
35:54 Caller Dave (Olympia): evaluating returns, fees, and portfolio costs
37:50 What’s a reasonable expense ratio and advisor fee range
39:24 Final takeaway: judge portfolios by structure, not short-term returns
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In this playful and insightful episode, Don and Tom explore how the beloved Friends characters might fare financially if they were retiring today. Using their signature mix of humor and practical investing wisdom, they analyze each character’s fictional career, personality, and spending habits to project their retirement readiness. The second half of the show returns to real-world money matters, answering listener questions about blending withdrawal strategies and fund choices in employer retirement plans.
0:04 Why this episode starts with a Friends reference—and yes, it’s copyright-friendly
0:31 Monica and Chandler Bing as retirement savers: organized, driven, but maybe too perfectionist
3:25 Monica’s obsessive planning vs. Chandler’s possible risk aversion
4:22 Overthinking portfolios and the emotional toll of too much tweaking
5:01 Savers who struggle to spend: how Monica might hoard instead of enjoy
5:56 Chandler’s likely financial behavior and their combined million-plus portfolio
7:03 Ross: neurotic, divorced, and probably pension-supported
7:54 Why pensions are psychologically powerful for retirees
8:35 Ross would need an advisor to keep him calm and invested
9:14 Rachel: spender, low earner, fashion industry job—not retirement ready
10:30 Joey: the actor’s feast-or-famine finances and SAG-AFTRA pension potential
12:22 Real SAG-AFTRA pension expectations: modest but helpful
13:09 Joey’s likely retirement: modest income, limited comfort outside major cities
13:54 Phoebe: quirky, lovable… financially reckless?
14:28 Phoebe’s imaginary downfall: alimony, bad investing, busking in Times Square
15:20 Big picture takeaways: personality, income, and circumstance aren’t destiny—but they shape outcomes
16:48 The Bings win the retirement game… Phoebe’s husband probably doesn’t stay married
17:30 Listener Q1: Combining fixed and flexible withdrawal strategies
18:52 30-year portfolio simulation using 60/40 and AI tools
20:24 Hybrid strategy results: high survival rate, smoother ride, and growing payouts
21:21 Comparison of 4% vs. 5% withdrawal income over time
22:36 Listener Q2: Replacing expensive international funds in a union 401k plan
24:00 Replace EuroPacific and Developed with Fidelity’s low-cost international index fund
25:17 Expense ratio showdown: PigWX vs. FSPSX
26:32 Closing chaos: how to contact Tom and the long-lost newsletter phone number
27:49 Origins of 800-FUND-004 and how someone just walked into the Bellevue office
29:42 End credits and final laughs—yes, even Tom held back the dad jokes (mostly)
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In this extended Friday Q&A episode, Don answers six listener-submitted questions covering a wide range of personal finance and investing topics. He kicks off with a fiery takedown of cryptocurrency as a viable asset class, arguing it’s based on hype and the greater fool theory. Other questions explore whether pensions should count as fixed income in asset allocation, the performance of Dimensional and Avantis funds versus traditional index funds, the pros and cons of Collective Investment Trusts in 401(k)s, and the strategic timing of Social Security. He ends by clarifying a common misconception about RMDs and Secure Act 2.0. Expect smart insights, a little snark, and the kind of blunt honesty that’s rare in financial media.
0:04 Listener Q&A returns with an extra dose—six questions this time
1:07 Confusing podcast scheduling clarified (sort of)
2:11 Crypto as an asset class? Don calls it “entirely invented” and dismantles the use case hype
4:32 If civilization collapses, your Bitcoin won’t save you
6:06 Crypto = greater fool theory; Don braces for hate mail
7:30 Dimensional/Avantis vs. index funds—do the extra fees pay off?
9:13 A 15-year comparison: Dimensional Global Equity vs. VT
11:43 Should a pension count as fixed income? Don says no—it’s a volatility game, not income
15:48 CITs (Collective Investment Trusts) in 401(k)s—cheaper, but less transparent
18:58 Index funds should be your benchmark; Don suspects this one’s active
20:02 Claiming Social Security early to preserve Roth? Don says the math rarely supports it
23:59 Secure 2.0 and RMD confusion—born in 1959? You still take RMDs at 73, not 75
26:15 Tech keeps improving—Don urges retirees to stay sharp, stay curious
Don and Tom dive into a new Morningstar report showing that tactical allocation funds—those run by “smart” managers who actively shift investments—significantly underperformed simple buy-and-hold index portfolios. They unpack why doing nothing often wins, discuss investor behavior gaps, and revisit the power of staying the course. Listener questions follow on mortgage payoffs, TIAA advisory fees, and adjusting stock/bond splits in retirement. The episode wraps with Don revealing his personal creative project—his short story A Chance of Death on his LitReading podcast—and a teaser for his next story, Murder of Crows.
0:23 Morningstar headline: tactical allocation funds lose to “do-nothing” portfolios
1:45 What tactical allocation funds really are (a.k.a. expensive market timing)
2:52 Morningstar urges investors to “stay the course”
3:04 Revisiting “Mind the Gap” and why investors underperform their own funds
4:28 Data comparison: $10k in tactical vs. passive portfolio over 10 years
5:31 Why professionals can’t beat buy-and-hold investors
6:51 Human behavior, arrogance, and the illusion of market-timing skill
8:37 The need for a written plan and risk-based portfolio
9:58 If you have a plan, market noise stops mattering
10:22 Tangent: WWII documentaries vs. Taylor Swift’s Miss Americana
11:21 Listener question #1 – Paying off a low-rate mortgage vs. investing
13:35 Math and emotion collide: cheap money, liquidity, and peace of mind
15:35 Listener question #2 – TIAA Wealth Management fees and fiduciary standards
18:31 Reading TIAA’s ADV: possible fees up to 2% on small accounts
20:08 Comparing local RIAs vs. large institutions
21:08 Clarifying blended fees and fund costs
21:47 Listener question #3 – Vanguard advisor suggesting 60/40 allocation
22:53 Risk tolerance vs. risk need – the real balance
24:05 Investment Policy Statements and Vanguard’s advisory limitations
25:46 Call for more listener questions and upcoming Q&A shows
26:15 Don plugs Lit Reading and his new original story “A Chance of Death”
28:24 How AI collaboration shaped the story’s creation
30:59 Discussion of his next story, “Murder of Crows”
32:17 Invitation for audience feedback on Lit Reading stories
Don and Tom kick off this episode with a satirical bang—mocking the apocalyptic tone of a MarketWatch article about the “Fourth Turning,” a cyclical doom prophecy claiming America faces a cataclysmic reset every 80–100 years. Citing wars, depressions, and now AI, wealth taxes, and the fall of the dollar, the hosts break down the fatalistic tone, expose the fear-marketing behind it, and reassure listeners that, historically, markets have recovered—and rewarded long-term investors.
0:04 Faux alien warning: the Fourth Turning economic apocalypse is coming
1:16 Dissecting the MarketWatch article and the “Fourth Turning” theory
2:26 Peak catastrophe by 2030? AI job loss, collapsing dollar, wealth taxes
3:38 Don asks: what is this guy selling? Spoiler: $100M wealth club
6:01 $180k to join R360—clearly not for the average listener
6:33 Don’s “financial flinch reflex” PSA spoof (ad)
7:41 Tom: “We love being scared”—AI panic and deepfake video fears
9:07 Caller Sue (68): Ready to retire with $820k and SS? Don says yes
13:05 Sue’s next step: get a fiduciary checkup, maybe run Monte Carlo
14:10 Tom runs one: 50th percentile = she hits zero at 98
15:32 Flexible withdrawal rates might work better than rigid 4%
16:34 Listener voicemail: Should we switch from Roth to Traditional now?
18:16 DT’s Roth vs. traditional strategy: save taxes while you can
20:14 WSJ article on taxes and stock gains—do ETFs instead
21:25 Tax basics for investors: capital gains rates and efficiency
23:26 Mad Men nostalgia and mid-century tax rates
25:15 TV detour: Bewitched vs. I Dream of Jeannie vs. Outlander
27:10 Back to calls: Theodore asks about 403(b) options in Burlington
29:10 Don explodes: garbage annuity vendors dominate the plan
31:01 Aspire is the only halfway-decent vendor… if you avoid their advisors
33:54 Don tells how an Albuquerque teacher got Vanguard into their plan
35:44 Aspire hack: use FundSource for no-load mutual funds
36:14 Caller Steve: hold 20 stocks or sell and rebalance?
37:53 Tom: hybrid approach. Don: depends on need. Watch tax bracket
The show kicks off with a sardonic take on turf wars between delivery drivers—yes, really—before diving into third-quarter market returns, investor behavior, and asset class performance. Don and Tom remind listeners (again) that sticking with a diversified portfolio beats timing markets or following headline noise. Listeners call in about Social Security strategies, inheritance accounts for minors, and what to do with large sums of cash in retirement. The show wraps with a smart look at ETF-to-mutual fund conversions and why the old-school fund industry is getting left in the dust.
0:11 Delivery turf wars joke and quarter-end reflections
1:40 Fears vs. reality: inflation, jobs, and trade wars
2:16 Q3 returns: U.S. stocks +8%, EM +9.6%, silver tops, cocoa flops
3:09 What you had to do to earn those returns: be invested, diversified, and ignore noise
5:13 Don scolds investors still avoiding value and international stocks
6:11 Chocolate aside, it’s been a strong year for stocks and bonds
7:42 Promo: Why guessing isn’t a retirement plan
7:51 Don recovers from a cough; Tom lists worst Q3 performers (lean hogs!)
9:13 Listener Chad argues for claiming Social Security early if you can earn 3%
11:08 Don crunches the math: break-even at age 81–82 if invested at 3%
12:57 Survivor benefits and why waiting helps your spouse
13:57 Don jokes about his wife stealing his life force and living to 112
14:54 Vaccine banter and intro to next caller
15:56 Caller Michael from Burien sells a condo, asks where to put $300k
19:07 Don and Tom suggest municipal bonds like VTEB for tax-free yield
20:20 Michael quotes a great retirement planning aphorism
20:29 Shift to ETF inflows and the downfall of mutual funds
29:13 Vanguard’s tax-free conversion model and Dimensional’s exemptive relief
30:49 What this shift means for investors with taxable accounts
31:17 Mutual funds may soon be the next buggy whips
32:22 Listener Connie asks: do you really get back Social Security withheld when working before FRA?
33:14 Tom and Don clarify: benefit adjusted later, but no “refund”
34:37 Caller Susan from Connecticut: what to do with $250k in cash
36:52 Don: You don’t need more products—you need a real financial plan
39:17 Flat-fee plans and how to find a true fiduciary
A lively, unscripted listener Q&A episode with no set topic — just a flood of great questions. Don and Tom tackle everything from inheriting farmland to the hidden cost of medical inflation, tax-efficient short-term investments, Ameriprise conflicts of interest, fund turnover ratios, and a heartfelt tribute to the late Jonathan Clements, a true pioneer of rational investing journalism. Plenty of wit, warmth, and straight talk about money — plus a personal moment of honesty from Tom about life, loss, and gratitude.
0:04 Cold open: “A show with no topics” banter and weather humor
2:07 Angie from St. Paul: Inheriting farmland — hold or sell?
6:04 Anton from Spokane: Medflation’s impact on Social Security COLA and Medicare premiums
10:45 Jason from Tigard: SPAXX vs. SGOV — which is better for short-term cash?
13:35 Ameriprise client: Should I use an SMA or fire my advisor?
18:41 Luke from Evans, GA: ETF turnover and what it really means
23:25 Tribute to Jonathan Clements — his life, legacy, and impact on index investing
27:10 Personal reflections, audience appreciation, and gratitude from Tom
Don tackles a stack of listener questions in this rapid-fire Friday Q&A, covering what a financial plan should cost, how tipping might work in a cashless future, and how to fine-tune a retirement portfolio with Avantis funds. He also addresses important estate planning steps after a death, how to use QCDs with inherited IRAs, and whether AUM fees are worth it compared to hourly planners. Along the way, he reflects on why he still manages his own money—and maybe shouldn’t.
0:04 Intro to Friday Q&A and how listener questions are selected
2:12 What should a detailed retirement plan cost? Median price range explained
4:33 How will we tip in a cashless society? From bellboys to Bitcoin to Apple Pay
7:39 Listener portfolio check: 85% AVGE, 10% AVUV, 5% AVDV—too tilted?
11:36 Credit after death: Should an executor notify the credit bureaus? Yes—and how
13:45 Inherited IRA RMD workaround: Can QCDs help avoid taxes before age 70½?
17:02 AUM fees vs. flat-fee advisors: Is paying more for more assets fair?
25:51 Why Don still manages his own money (for now)—inertia, taxes, and habits
Don and Tom dive into the human obsession with prediction—especially in finance—and why models fail us more than they help. They dissect the CAPE ratio, Fama vs. Shiller, and why “knowing” the market is a fool’s errand. Listeners also get lessons on ETF pricing myths, market cap misunderstandings, SEP Roth IRAs (spoiler: they’re basically unicorns), and whether dad deserves a gift or just more responsibilities.
0:04 We crave certainty—even though our money brains are terrible at prediction.
1:01 Wall Street’s models exist to soothe our fear of the unknown.
1:34 “All models are wrong, but some are useful” — CAPE ratio vs. the real world.
2:39 Shiller vs. Fama: You can’t time the market, even with a Nobel.
4:51 Why diversification, risk-based equity premiums, and low fees beat predictions.
5:24 Models work… until they don’t (hello, Phillips Curve).
7:02 Why the inflation-unemployment link broke after 2000: China changed the game.
8:26 Let’s admit it: You cannot accurately and consistently predict the future.
9:14 Call from Catherine: Why Schwab ETF prices are “low” (spoiler: stock splits).
11:31 Price per share means nothing. Market cap is what matters.
13:04 Berkshire never split its stock—why it’s $731K a share.
14:24 Apple vs. Berkshire vs. Microsoft: Market cap is the real metric.
16:32 Why the Dow is dumb (and would be even dumber with Berkshire in it).
17:49 Listener Q: Where to park $450K before a home purchase? (Hint: not bonds.)
18:29 High-yield savings accounts are still the best move.
19:53 Father’s Day preview: Don rants about dumb gifts and ungrateful kids.
21:19 Kiplinger’s list: 5 ways dads can teach money lessons (cue sarcasm).
24:06 Allowances, budgeting, and tax talks with kids—realistic or fantasy?
25:28 Roth IRAs and investing lessons for teens: what actually works.
27:45 Why teaching kids to pick stocks is a dangerous myth.
29:38 “Graduation fund” idea: simple global ETFs like AVGE or DFAW.
30:43 Yes, your kids might move back in. Yes, it’s happening again.
32:13 Listener Q: Can you open a Roth SEP IRA? (Short answer: not really yet.)
33:54 One firm offers it… but it’ll cost you $500/year and it’s shady.
35:20 Final caller: Are there any annuities we do like? (Answer: the shortest show ever.)
36:34 Program note: Tom gone for 2 weeks, Don wants your calls (or sympathy).
Don and Tom tackle the behavioral trap of “home bias” in investing—why U.S. investors tend to overinvest domestically and why it’s dangerous. They compare global fund allocations across countries, poke fun at nationalist investing instincts, and explain why international diversification is essential. Listener calls cover early Social Security regret, 72(t) withdrawals, covered calls on Palantir, and what happens to target date funds after they “expire.”
1:52 Home bias explained: Americans (and Australians) overweight U.S. stocks
2:58 U.S. vs global stock market value debate
3:42 Fund companies pander to investor bias
4:14 Vanguard Australia fund: 42% Aussie stocks?!
5:25 Why home bias hurts—Australia’s 25% bank exposure
6:26 Dimensional and Avantis global tilt: 70% U.S.
7:52 Long-term global diversification reduces volatility
8:17 The 2000s: Global funds outperformed U.S. funds
9:21 Call: Donna in AZ – Regret over early Social Security filing
11:29 Don confesses he took his at 69: “I’m weak”
12:02 Donna’s still in great shape—no panic needed
13:04 Timing Social Security: Only critical if it’s most of your income
14:45 Emotional investing vs logic—why home bias persists
15:51 Japan: Home bias disaster, zero returns since 1990
16:07 Call: Kyle in TX – 72(t) withdrawals and bond reluctance
18:21 Tom explains why bonds matter when pulling from a shrinking stock portfolio
19:51 Call: Jason the Tesla Bull – Covered calls on Palantir
21:15 Covered call mechanics explained
23:14 Don’s 1980s crash story: When covered calls fail
24:14 Covered calls appeal to greed, often backfire
25:20 Palantir’s PE ratio? Try 1,058—yikes
26:30 Meme stocks vs megacaps: Palantir’s government dependency
27:05 Call: John in OH – Fidelity fee confusion update
28:16 John’s advisor can’t see the same statements—sus?
30:32 Make sure to bring statements and get written answers
31:29 Don’s birthday, Father’s Day gripes, and Twain wisdom
32:22 Call: Elizabeth in SC – What happens to a 2010 target date fund?
33:37 Vanguard 2010 funds merge into 70/30 “retirement income” fund
35:14 Performance? ~5% annualized—above inflation
In this episode of Talking Real Money, Don and Tom take aim at one of the most persistent investing mistakes: owning individual stocks. With humor and sharp skepticism, they explore why investors—even those who say they follow the show’s advice—still concentrate wealth in a few companies like Apple, NVIDIA, or their employer’s stock. Referencing Jason Zweig’s Wall Street Journal column and legendary research from Bessembinder, they show how dangerous, emotional, and often delusional this strategy really is. From Washington Mutual to VF Corp, the history of single-stock implosions is long and painful. Plus, they field smart listener questions on business loans, Roth conversions, and hummingbird beak evolution. Yes, really.
0:04 Why owning individual stocks is more like gambling than investing
0:58 Zweig’s column and stories of extreme stock concentration
1:42 Real investors with 30%+ in just a few stocks
3:00 “I only own Apple”—the emotional traps of stock picking
5:02 Washington Mutual: faith in the familiar turns to loss
6:44 The VF Corp disaster and foundations behaving badly
8:43 No one rings a bell before your stock collapses
9:49 Stock picking risks: underperformance and default
10:22 Don’s infamous four-stock “diversified” portfolio (spoiler: zeroed out)
11:48 Emotional attachment to companies vs. logic
12:27 Top justifications for owning individual stocks—and why they’re bogus
13:40 “It’s money I can afford to lose” (No, it’s not.)
14:51 Owning your own business ≠ owning a stock
15:20 Risk in entrepreneurship is different—but still real
16:18 Listener question: Pay cash or borrow to buy a high-return business asset?
18:02 Don and Tom strongly favor using business cash over loans
19:11 Why even 40% returns are no guarantee
20:39 Hummingbirds evolve to match human feeders (seriously!)
21:34 Listener Q: Convert old 401(k) from Mutual of America to Roth IRA?
23:20 Why you should probably roll that 401(k) out—fast
23:33 Joke time: The silent P in pterodactyl
24:32 Don’s mental age… remains in the single digits
Tom and Roxy dive into listener questions with sharp advice and sharper metaphors—like why a 1,000-point drop in the Dow is more like a slight temperature dip than a financial catastrophe. They cover smart asset location (where to put what), consolidation tips for retirement accounts, the often-overlooked costs of rental real estate, and the emotional tug-of-war between risk tolerance and capacity as retirement nears. Plus: a gentle roast of Robert Kiyosaki, a Parisian travel tip, and a few digs at over-diversified portfolios.
0:05 Tom’s intro rant: fear headlines and market timing
1:39 Denominator blindness: why scary drops sound worse than they are
2:52 2.4% drop = sweater weather, not financial panic
3:55 Listener Q1 (Jeff): Where to hold stocks vs. bonds—taxable vs. IRA
4:17 Asset location strategy: not just S&P and short-term bonds
5:35 Duration, muni bonds, and why not all income is equal
6:24 One custodian, fewer accounts: simplify to win
7:41 Start with overall allocation, not tax location
9:16 Managing drawdowns, RMDs, and legacy with tax planning
10:54 Listener Q2 (Jason): Should I just let my equities grow?
11:40 Risk capacity vs. risk tolerance: don’t drive 90 if 65 gets you there
13:08 Why 90/10 in retirement rarely makes sense
14:27 Distributions and downturns: another case for bonds
15:28 Listener Q3 (Justin): Real estate vs. market income
16:22 Landlord reality check: equity ≠ cash flow
17:47 The tax myths of rental income vs. investments
19:40 How investors really generate income (total return strategy)
21:01 Time to develop a real estate exit plan?
21:38 Final thoughts, free reviews, and Roxy’s Parisian wisdom
This episode explores the psychological and financial side of retirement planning through the lens of entropy. Don and Tom dive into an article from Kiplinger that cleverly compares retirement to the second law of thermodynamics: left unmanaged, both money and purpose tend toward chaos. Only 4% of retirees say they're "living the dream"—and the duo explores why that number is so shockingly low. From maintaining routine and finding meaning to avoiding common money traps like over- or under-spending, this episode is packed with practical insights and sardonic banter. Plus, listener questions on Roth conversions for low-income parents and generating sustainable income in retirement portfolios.
0:04 Why we're talking thermodynamics on a money show
1:40 The "Second Law" of Retirement: Life drifts toward chaos
2:15 Only 4% of retirees say they're "living the dream"
3:06 Why retirement can be scary—even for us
4:44 Do something in retirement... but get paid for it?
6:09 Volunteering vs. purposeful work (and airplane nostalgia)
7:03 Retirement spending traps: splurging or hoarding
8:09 The danger of financially supporting adult children
9:43 Composer John Williams and the myth of retirement
11:24 Three keys to a better retirement: social, purpose, activity
12:04 Paul Merriman, semi-retirement, and finding meaning
13:23 It all still comes down to money—and the freedom it brings
14:42 Steve Martin's quote on money and dumb stuff
15:30 Listener question: Tax-efficient Roth conversions for elderly parents
20:07 Listener question: Income generation with ETFs vs. income funds
22:51 Junk bonds, Franklin Income Fund risk, and total return
25:48 Strategy tip: Keeping a year of cash to smooth out volatility
26:11 Upcoming events and Apollo's July 9th appearance
27:37 Free portfolio review offer and purpose in helping others
28:51 Tom's boat motor saga and 1-star review nightmares
Don and Tom dig into America’s $1.7 trillion in forgotten retirement accounts—29 million of them! They walk listeners through how to search for their own missing funds and share their own finds (or lack thereof). They answer questions about where to park $100K in short-term savings, when (or if) to convert to a Roth in your 70s, the pros and cons of ETFs versus mutual funds in taxable accounts, and the murky territory of backdoor Roth timing and the pro-rata rule. A listener also calls in with praise—and a gentle challenge—to donate or support the show, leading to reflections on how to really help Talking Real Money thrive.
0:05 Welcome back—same truth, new week: invest simply, diversify, and stop overthinking
1:24 Financial complexity is mostly unnecessary—simple portfolios work best
2:37 Listeners have lost $1.7 trillion in forgotten 401(k)s—here’s how to find yours
4:34 Don checks the retirement lost & found—comes up empty
6:33 Tom finds $29 from Starbucks—through a different database
7:36 Sites to check: National Registry, Lost & Found DB, MissingMoney.com
9:15 Caller Alan: What should I do with $100K in liquid, short-term funds?
11:30 Don’s “Three Easy Pieces” ladder strategy: savings + 1-year + 2-year CDs
14:13 Alan’s happy—Bread Savings gets a shout-out
15:43 Talking Real Money Friday Q&A is the listener favorite
17:00 Caller Joel: Should I switch my Vanguard mutual funds to ETFs?
19:14 Yes—especially in taxable accounts, for better tax efficiency
20:44 Caller Sue: At 77, is it too late to convert $100K from IRA to Roth?
27:05 Probably not worth it—tax impact likely the same or worse
29:51 Rethinking retirement tax math—it’s not “your” money until it’s taxed
33:19 Don checks reviews—guess who’s back with a grudge?
33:49 Caller Ray: Can I move IRA to 457 to avoid pro-rata on backdoor Roth?
36:40 Caller Jim: Mom’s advisor switched to LPL—should I worry?
38:59 Jim’s suggestion: listeners donate to a favorite charity in TRM’s name
40:04 Victory Capital funds: Don’s not a fan of their approach
42:41 Why broad diversification beats thematic ETFs with 100 holdings
44:12 Wrap-up: Where to listen, how to submit questions, and why reviews matter
Don and Tom salute high-schoolers who tackled the National Personal Finance Challenge, then test listeners (and each other) with the same nine-question quiz—covering basics like principal vs. balance, Roth RMD rules, CDs, vesting, inflation risk, callable bonds, and limit orders. Call-in segments dig into real-world money puzzles: whether to sink home-sale proceeds into a new mortgage at today’s 7 % rates, how (and whether) to value a military pension, rolling a TSP, and a head-scratcher about wildly swinging “management” fees inside a Fidelity IRA. A quick detour touches on Don’s upcoming birthday before they wrap with practical takeaways: know your income gap first, keep fees transparent, and remember—it’s “losing money safely” if cash just languishes.
0:04 Why everyone needs a working knowledge of money
1:22 National Personal Finance Challenge shout-out & why only 0.1 % of high-schoolers compete
2:04 Quiz Q1 — defining principal
4:01 Quiz Q2 — Roth vs. traditional IRA RMD rules
5:10 Invitation for listeners to tackle the quiz live on air
7:38 Quiz Q4 — why CDs pay more (funds locked for a term)
8:57 Quiz Q5 — what “vesting” really means
9:59 Quiz Q7 — parking cash in a sock = inflation risk
12:33 Quiz Q8 — callable bonds explained
13:51 Caller Hillary — use equity to pay down a 7 % mortgage or invest instead?
16:33 Liquidity vs. rate trade-off and psychological comfort of a lower payment
18:43 Model-airplane museum banter & show phone line reminder
20:46 Caller Justin — valuing a pension and TSP rollover strategy
23:45 Start with income needs, then size savings; why keeping TSP is fine if it’s your only IRA
28:13 Caller John — Fidelity “management fee” swings; how to pin your advisor down
33:25 Caller Will — cosmic birthday musings & the age of the universe
36:51 Quiz Q9 — limit orders, and Tom flunks Series 7 trivia
40:35 How few teens get real money education & resources to close the gap
Don and Tom explore the evolution, promise, and pitfalls of Exchange-Traded Funds (ETFs). While ETFs have become the dominant investment vehicle, boasting $8 trillion in assets and more than 4,000 choices, the duo cautions against the “novelty trap” that lures investors into trendy, high-cost, low-diversification funds. They advocate sticking with time-tested providers like Vanguard, Schwab, and Avantis, and urge listeners to focus on strategy over hype. The episode also covers listener questions on Facet Wealth’s alternative investments and Roth IRA income limits, ending with a light jab at Portland’s real estate collapse and Don’s growing jet lag.
0:04 Opening banter and the rise of ETFs as mutual fund successors
1:28 ETF history from SPY to the $8 trillion juggernaut
2:21 Why ETFs caught on: low cost, tax efficiency, index focus
3:45 When Wall Street noticed: strategic beta and rule-based funds emerge
4:59 The novelty problem: gimmicky single-stock and crypto ETFs
6:57 How to filter the 4,000 ETFs to a trustworthy handful
7:34 Which fund families to consider—and which to avoid
8:58 Active vs. passive: the murky middle and the “passively active” dilemma
10:01 Conflicts of interest in ETF endorsements and advertising bias
11:19 ETF investing principles: keep it simple, diversified, and strategic
12:09 Why the industry lumps Dimensional and Avantis with active managers
14:09 Brief detour into Austin, Silicon Valley, and Portland real estate
15:22 Final ETF takeaway: old, boring, and proven beats shiny and new
17:01 Listener Q1: Is Facet Wealth’s alternative income strategy a red flag?
22:01 Listener Q2: Roth IRA income limits, backdoor Roths, and best next moves
In this Friday Q&A episode, Don answers a wide range of listener questions, covering everything from market timing behavior and condo pitfalls to portfolio simplification and strategic debt repayment. He offers heartfelt financial guidance with his usual mix of candor and compassion—including a personal confession about his own Social Security decision. Plus, he pleads (just a little) for positive Apple Podcast reviews to combat the crypto bros and insurance hawks.
0:04 Friday Q&A intro and how to submit voice questions
1:40 What do market-timing traders actually do with their cash during volatility?
4:25 Are condos and co-ops really “the devil”? Why Don’s skeptical
9:46 Listener shares Don sparked his investing journey in the ‘90s
11:15 Should a friend drop her advisor for a robo-platform—or go DIY with VT/BND?
17:32 Why Don prefers AVGE over VTI for broader, smarter diversification
18:15 Tiny differences in fees can mean big long-term results
18:58 Active-duty military caller: Should I pay off debt using savings and ditch whole life?
24:08 Listener nearing 70: Should I freeze my Social Security or just enjoy it now?
26:46 Don’s honest confession about his own SS filing decision
27:52 Why good reviews matter (and how to fight the crypto/insurance trolls)
29:43 Call live on Saturdays while Tom vacations… again
A chaotic day leads Don into a deep (and entertaining) dive into the futility of market timing, spurred by a recent Morningstar article on Pacer’s Trendpilot ETF. Don and Tom break down the mechanics of the fund’s strategy, its underperformance compared to a simple 60/40 portfolio, and the long-term cost of trying to avoid downturns. Listener questions bring up diversification, Roth IRAs, and the eternal struggle with ticker symbols. Plus, a special heads-up for federal employees about an upcoming webinar. And yes, kilt ventilation is discussed.
0:04 “It never rains but it pours” rant, helicopters, kilts, and chaos
2:02 Welcome and the evolution from market timing believers to skeptics
3:13 Trendpilot ETF’s moving average strategy explained (kind of)
5:45 Morningstar says: strategy failed, underperformed S&P by 5% annually
6:58 97-year 60/40 portfolio beats Trendpilot in return and volatility
8:32 2020 example: Trendpilot missed the 38% rebound—ouch
9:59 Why market timing fails most investors over time
11:05 Loss aversion vs. long-term strategy with fixed income
13:08 Trendpilot’s $3.3B in AUM—but it still doesn’t justify market timing
14:23 Listener mail: VTEB vs VTBE, Series 65 textbook gems, diversification
18:26 How much in a single stock? Almost none
19:10 Roth IRA allocation question—AVUS, DFIV, AVUV, and maybe just AVGE
22:24 One-fund to rule them all: AVGE breaks it down across 15 funds
24:11 Federal employee webinar pitch – June 7 at appellowealth.com
25:39 Wrapping up with call-in info, dreams about forgetting the phone number, and kilts (again)
Don and Tom unpack Morningstar’s latest “5 of the Best” investing methods, praising the simplicity of balanced and target-date funds but warning against high-fee versions. They emphasize that no portfolio fits everyone and push for low-cost index solutions. Listeners call in with 401k rollover questions and political discomfort around financial firms—sparking a candid, occasionally funny chat about ethics, emotions, and retirement realities. The episode wraps with a challenge to fix Social Security and a request for more five-star Apple Podcast reviews before Don dies on the mic.
1:07 Morningstar’s ‘5 of the Best’ investing methods reviewed
1:48 Balanced funds and target-date funds: pros and cautions
2:48 Three-fund and custom-fit portfolios discussed
4:08 Critique of Morningstar’s recommended balanced funds
6:19 Expense ratios of target-date funds and better alternatives
7:17 Morningstar’s risky allocation advice near retirement
9:17 Why one-size-fits-all portfolios don’t work
10:14 Caller Sally: Should we move from T. Rowe Price 401k?
12:56 T. Rowe Price vs. Vanguard fee comparison
14:03 How to roll over a 401k into an IRA
17:39 Custom portfolios vs. simplicity and human behavior
21:42 Caller Lynn: Political discomfort with Schwab as custodian
26:26 Keeping an advisor despite ideological concerns
28:38 Raising the retirement age: Denmark vs. U.S.
32:48 Fixing Social Security: remove the wage cap
35:29 Listener reviews, crypto hate, and ETF conspiracy theories
In this episode of Talking Real Money, Don and Tom reluctantly return to the topic of Bitcoin, using its recent price spike to explore deeper questions about market efficiency, irrational investor behavior, and the legitimacy of crypto as an investment. With nods to Eugene Fama, Cliff Asness, and some well-aimed skepticism, the duo debates whether price reflects value or just hype. Alongside listener calls from California, Canada, and North Carolina, they address portfolio allocation, pension rollover strategies, and even debunk gold’s glitter as a bond replacement—punctuated by a truly explosive segment on “FartCoin.” Yes, really.
0:56 Tom and Don reluctantly dive into Bitcoin and crypto’s price spike
1:37 Are crypto markets truly efficient? Academia vs. reality
2:44 Price goes up because price went up? Questioning efficient market theory
4:17 Cliff Asness on how social media distorts collective investment judgment
6:23 Don restates the three ways to make money: work, luck, dishonesty
6:50 Harvard-style debate: Can markets be truly efficient?
8:24 Rational ignorance and emotional investing behavior
9:36 Fama says Bitcoin will go to zero within a decade
10:30 Dogecoin and meme coins: speculative absurdity vs. real purpose
12:06 Investment principles: Diversify, plan, ignore hype
13:51 Tom and Don are ‘contrary indicators’—Bitcoin jokes ensue
14:14 Call: Clinton in CA asks where to put pension payments he doesn’t need yet
16:13 Investment advice for 5-year+ horizon: high yield/cash/bond/stock mix
17:48 Tom’s wife builds a wheelbarrow, financial education “nonprofit” mailer
19:11 Crypto joke segment: FartCoin rises to $3.50… and the bad puns begin
22:02 Call: Jeff from Canada on gold returns vs. bond stability
24:24 Should gold be part of a diversified portfolio? Historical returns debunked
28:39 Gold bar nostalgia vs. investment logic
29:58 TRM T-shirt giveaway and gold vs. bonds as ‘cool’ vs. smart
31:30 Call: Zach in NC—Should he roll old 401(k) into state pension plan?
33:10 Breakdown of NC pension plan fund options and a 90/10 allocation strategy
36:03 Don signs up for a “non-sales” financial education class by an unlicensed guy
37:50 Red flags: financial advisor not registered anywhere, mystery deepens
Don and Tom dive into a new study showing the average investor spends just six minutes researching a stock—most of it just watching the price move. From gut feelings to hometown bias, they unpack why individual stock picking is often driven by emotion, not logic. Along the way, they skewer myths about control, tax efficiency, and the Warren Buffett fantasy. Listener questions cover Roth 401k rollovers, Roth conversion timing, and Fidelity’s commingled active target-date funds—and why none of them beat a good portfolio of low-cost ETFs.
0:04 Stock picking takes 6 minutes, says NYU study
1:09 Why people pick stocks without research
1:56 Risk analysis ignored by most investors
2:57 The illusion of gut instinct investing
4:22 Beating the market is harder than it looks
5:44 The fantasy of picking only “good” stocks
7:10 The control myth and cost of stock picking
8:29 Buffett’s process vs. your fantasy
9:53 The illusion of control and tax myths
10:58 What real diversification means
12:11 You’re wasting time, not just money
13:11 Emotion makes individual stock picking harder
13:59 Familiarity bias in hometown investing
15:21 Listener Q1: Roth 401k rollover planning
16:27 How many ETFs should a multimillion Roth have?
17:59 Get fiduciary help or risk being sold garbage
18:21 Listener Q2: Roth conversion tax trap
20:17 RMDs aren’t the enemy—bad Roth math is
20:29 Listener Q3: Fidelity commingled target-date fund
21:35 Why active target funds fail investors
22:07 Better option: Three low-cost ETFs instead
Don fields a fresh batch of listener questions in this all-audio edition. A longtime fan asks whether a municipal bond ETF (VTEB) is a smarter place than a money market fund for short-term cash—Don explains why liquidity and risk matter more than yield. Another listener wants help navigating how much cash retirees should keep and when to use it—Don breaks it into two simple buckets: one for living, one for emergencies. A third caller gets a red flag for being pitched Cliffwater’s CCLFX fund by a so-called fiduciary. Don pulls no punches on high-fee, opaque, risky private lending funds—and questions the advisor’s motivations. Later, a listener asks about Vanguard’s old-school actively managed funds like Wellington and PrimeCap, and whether they still have a place in a modern index-based portfolio. And finally, a TIPS investor wonders if he’s overcommitted to inflation protection. Spoiler: maybe. Don wraps by reflecting on 40 years in talk radio and thanking the show’s loyal, growing audience
0:10 Don introduces the many ways listeners can submit questions
2:21 Q1: SPAXX vs. VTEB for short-term savings—liquidity vs. yield
5:34 Why money market wins for money needed within 2–3 years
6:27 Q2: How much cash should retirees keep—and when to use it?
7:25 Retirement cash strategy: living cash vs. true emergencies
9:31 Q3: Advisor recommends Cliffwater CCLFX—should I worry?
11:01 CCLFX breakdown: 10% yield sounds sexy, but what’s the cost?
13:27 A thousand times the cost of Vanguard bonds—yes, really
15:41 Don: this “fiduciary” isn’t acting in your best interest
17:01 Q4: Do Vanguard’s active funds still belong in a portfolio?
18:18 PrimeCap vs. VTI—higher cost, same return, less diversification
19:56 Active funds are legacy products—and not built for the long game
20:25 Q5: TIPS bonds—smart inflation hedge or overweight risk?
22:48 Equities already provide inflation protection—TIPS should be a slice, not half
24:03 Don reflects on 40 years in talk radio—and thanks loyal listeners
Don and Tom roll through Memorial Day weekend with a little heat from the audience, a breakdown of where Americans get their financial advice (hint: it’s not great), and some solid, real-world investing guidance. They take a couple of strong listener calls—one on geopolitical market fear and another from a small business owner unsure how to save for retirement. Plus, Don flaunts a ridiculous cash stash and his new Rodecaster Pro II. Yes, it’s that kind of show.
0:04 Memorial Day weekend caller drought and listener outrage over not using cash
1:10 Don reflects on talk radio, aging, and Colonel Sanders
2:05 Gallup survey reveals where Americans get financial advice—spoiler: it’s not ideal
3:47 Breakdown of advice sources: friends, family, advisors, websites, banks, podcasts
5:23 Tom reads the actual top 10 list from Gallup—cue confusion and math jokes
7:54 Why banks may be the worst place to get financial advice
10:18 Fiduciary fail: Only 1% of advisors always act in your best interest
12:36 Sound effects galore and nobody on the phone—hello, crickets
15:53 Brad finally calls back with fears over Israel-Iran conflict and market moves
21:38 Why gold isn’t a smart hedge, even in global turmoil
23:52 The myth of timing the market, even with breaking geopolitical news
27:02 Mike calls from Lacey to argue that ditching cash detaches us from reality
31:23 Don flexes with $473 in his wallet (and a wife who gives him money)
32:23 Jason the mobile mechanic asks how to save for retirement
34:08 Jason’s stuck with an advisor—but doesn’t know what he’s invested in
36:19 The guys lay out a DIY Roth strategy and recommend ditching the advisor
This episode brings the heat on so-called “financial educators” masquerading as fiduciaries while hawking high-commission indexed annuities. Don and Tom dissect the misleading promises of 9% guaranteed returns, break down real disclosure numbers, and expose the enormous commissions driving these “recommendations.” Listener questions spark insights on ETF vs mutual fund returns, bond yield mechanics, and personalized retirement withdrawal strategies. Oh, and say goodbye to the penny—it’s headed for extinction.
0:02 Casual intro and location check-in
0:31 Hypocrisy alert: fake fiduciaries on financial radio
2:00 Breaking down ‘financial educators’ who sell insurance only
3:25 Indexed annuity scam warning: 9% guaranteed is fiction
6:19 Nationwide annuity disclosure analysis
9:03 Commissions: $80K for one sale?!
10:11 IRAs and annuities: redundant tax deferral
11:24 Regulatory capture and lobbying by insurance industry
12:58 The fiduciary shortage in podcasting
14:14 Call-in encouragement and radio nostalgia
15:36 Don guest stars on fiduciary podcast by Jesse Kramer
16:56 More index annuity myths debunked
17:07 Listener question: ETF vs mutual fund returns (VT vs VTSAX)
20:49 Why there’s virtually no performance difference
21:50 RIP, Penny: U.S. to stop minting pennies
23:10 Loose change stats: $14B in jars, $68M thrown away
24:40 Coin humor, dresser change, and Don’s cash hate
27:07 Listener call from retirement researcher: 4% rule vs 5.5%
29:34 Explaining bond prices vs yields like a teeter-totter
33:01 Bond laddering psychology vs ETF simplicity
36:06 Call from Colorado: portfolio researcher shares insight
38:24 Upcoming federal employee retirement planning webinars
Tom takes a break from vacationing to join Don in a deep dive on target date funds—the good, the mediocre, and the fee-loaded ugly. They break down performance data, highlight major fund differences, and remind listeners why understanding your own risk tolerance still matters. Listener questions spark advice on Roth IRAs for young investors and strategies for holding large tax payments. All with classic banter, bad jokes, and a quick jab at the Raiders.
0:04 Tom’s back (briefly), and the banter’s already off the rails
1:42 Target date funds: the set-it-and-forget-it investing strategy
3:06 $4 trillion invested—do they actually work?
4:29 Performance since 2010: solid but not spectacular
4:52 Fees dropping, but some funds still gouge
6:06 Comparing returns: Vanguard, Hancock, American Funds, Voya
7:39 Hidden loads and fees—legal, but not ethical
7:59 Target date trouble: they don’t know you
9:03 Asset allocation assumptions can misfit your real risk
9:44 Most funds overweight large U.S. companies
11:14 What Vanguard 2025 actually holds (spoiler: little value)
12:43 Better than nothing—but not better than customized
13:38 Final take: decent for novices, but beware high fees and mismatched risk
16:15 Listener Q1: Roth IRAs in only VFIAX—good idea for young investors?
17:36 Why global small-cap value ETFs are a better long-term choice
19:04 Comparing AVGE, DFAW, and VT—size and cost matter
19:36 Listener Q2: Where to hold tax money without exceeding FDIC limits
21:30 FDIC realities and alternative safe options like government money markets
22:23 Tax math: fed + Illinois = close to 50% if income, less if capital gains
23:52 Hidden state tax traps and EV drivers dodging gas taxes
24:13 Pre-DOGE Teslas and pre-Elon excuses
In this lighter (but still info-packed) Friday Q&A episode, Don tackles a mixed bag of real-world money questions—from Roth conversions and selling the family home to foreign tax credits and the emotional overload of trying to do everythingat once. Listeners wrestle with software vs. strategy, gifting real estate to their kids, and finding financial sanity in mid-life. Don reminds us: good advice doesn’t come with a magic wand, but it does come with a bit of permission to slow down.
0:56 Roth conversions vs. tax software forecasts
Don breaks down a listener’s dilemma between believing Bolden software’s results and the unpredictable future of taxes.
3:16 Selling a $1.3M home to your daughter at a discount
Creative estate planning meets real estate risk. Don dives into the tax, gift, and legal landmines.
9:21 Should I worry about foreign tax credits with VT?
A listener’s ETF portfolio prompts a discussion on whether VT’s structure means missing out on foreign tax credit benefits.
14:13 “Is Tom using a money multiplier?”
A sharp-eared listener catches a math slip and asks whether Tom is secretly using margin or magic.
15:35 Holistic financial planning for a stretched young family
In a heartfelt question, a 30-something couple wonders how to juggle mortgage, saving, and life without burning out. Don gives them more than advice—he gives them permission.
21:59 Don’s guest appearance on Personal Finance for Long-Term Investors
If you want more Don, check out his chat about annuities with Jesse Kramer.
Don shares a deeply personal tale from 2007 when, as an HOA treasurer, he dodged a financial landmine involving auction-rate securities—just before the 2008 crisis froze their liquidity. That real-life scare flows into a fierce takedown of today’s institutional obsession with illiquid assets like private equity, especially in university endowments. Harvard’s high-risk strategies, retirement plans promoting alternatives, and the seductive myths of market outperformance get picked apart. Don and Tom warn investors not to chase complexity or “exclusive” returns, especially when liquidity disappears. Plus: a pension tax trap, Opportunity Zone hype, and the nerdy joys of CD ladders.
0:04 Don’s HOA horror story: auction-rate securities before the 2008 collapse
2:06 Liquidity vanishes when you need it most—Wall Street Journal echoes the warning
3:51 Harvard’s endowment crash: elite returns turn embarrassing
4:34 Private equity’s scary recipe: micro-cap risk + debt + 3–4% fees
5:44 Why these complex products often spark crises
6:42 “Works until it doesn’t”: the fatal flaw of illiquid alternatives
8:10 Illiquidity explained with the real estate analogy
10:13 State pension investing: lessons from Washington’s shift to index funds
11:32 Why elite endowment managers must pretend to be smarter than markets
12:10 Microsoft vs. Mac: the cost of complexity, again
13:15 Secret formulas, snake oil, and the myth of exclusive financial wisdom
14:36 Listener Q1: Can Alaska pension income go into a Roth?
16:25 Listener Q2: Qualified Opportunity Zones—worth it or tax dodge trap?
19:05 Tax deferral vs. sound investing: when kicking the can isn’t smart
20:27 Listener Q3: Fidelity’s CD ladder tool and emergency funds
21:40 How CD ladders smooth yields—and a shortcut with bond funds
23:27 Volatility = reward: why risk is the reason stocks outperform
24:10 Why indexed annuities kill returns—and the fake comfort they sell
25:30 Tech support rants, Gen Z lifelines, and the “is it plugged in?” curse
Tom and Don open the show with tech woes and quips before diving into a serious discussion about the U.S. credit rating downgrade and its implications for borrowing costs and long-term debt. They offer practical investing advice in light of the downgrade—think short- and intermediate-term bonds and global diversification. Listener calls bring a colorful array of financial situations: a comfortably retired couple managing rental income, a military retiree with credit card debt, a candid debt history rant from a longtime listener, and a woman with $80K in savings and a low mortgage who's frozen in financial fear. The show wraps with WWII plane trivia, laughs about caulking commercials, and a reminder: simplify your finances before they complicate you.
0:04 Show open; Tom and Don back on the line, with tech trouble and small-town banter
1:45 U.S. credit downgrade and what it means for investors
5:20 What to do now: diversify bonds, stay short-term, add global exposure
7:26 Call: Ike from Marysville — strong retirement income, rental questions, safe stock skepticism
13:44 Installment sale talk, tax planning, and passive income alternatives
15:41 Call: Nick vents on U.S. debt history and tax policy—“Reagan to Trump, same mistakes”
19:44 Call: Pat the military retiree—$14K in credit card debt, $400K in IRA, what to do?
24:25 Strategy: Use cash and IRA to eliminate debt fast—stop paying 20% to Discover
27:12 Call: Jody from Blaine — 65, working, scared to invest, $80K in savings
33:57 Advice: Keep the mortgage, max the 401(k), move money into higher-yield and growth
35:18 Wrap-up: Graduation pride, plane trivia, caulk jokes, and a heartfelt call to action
Don returns from a exhausting, comedy-of-errors flight to discuss how the markets pulled an equally wild round trip—plunging, then rebounding to the tune of $8 trillion. He and Tom break down the April stock and bond tantrum, laugh off predictions of recession, and offer practical guidance for scared investors, risk-takers, and those tempted by annuities. Listener questions cover mortgages vs. investing, the role of fixed annuities, and a touching thank-you from a longtime fan who retired well thanks to Don’s early radio shows. Oh, and Tom’s now YouTube famous. Just ask his grandkids.
0:04 Don’s cursed travel story: jet lag, delays, and onboard medical drama
1:28 Welcome back—Tom’s model aircraft museum returns
2:48 Market rewind: sharp drop and $8T rebound
3:55 April 8 market bottom; temper tantrum or bear tease?
4:40 CNN Fear & Greed Index: from panic to euphoria in weeks
6:27 Fan mail: “Planes, Trains & Cryptocurrency” and Tesla hate from a Lyft driver
7:43 Don’s Broadway singalong graduation trip to NYC
9:01 Recession odds fall fast—tariffs rise faster
11:27 Tom calls out the mayor’s interest rate prediction logic
13:01 Check your 401(k)? Maybe don’t—unless you’re learning your risk tolerance
14:10 Don’s “Tune Out the Noise” video hits 10+ million views
16:43 Listener challenge: Why bash Fidelity annuities?
18:47 Don’s CD ladder vs. annuities—why he prefers federal over contractual guarantees
20:10 Even “no load” annuities can be slippery—careful with the fine print
21:51 TRM hits 1,648 episodes (and counting)
22:44 Listener Bruce: From broke in 1989 to comfortably retired, thanks to Don
24:17 Remember load funds? Why no-loads and ETFs rule now
25:59 American Funds' ETF pivot: lipstick on a mutual fund
28:36 Listener question: Invest inheritance or pay off 6.6% mortgage?
33:10 Roth IRA strategy, liquidity concerns, and investing at age 35
36:17 Graduation singers belt Sinatra’s “New York, New York” at Radio City
38:21 Reminder: Free portfolio help at TalkingRealMoney.com
39:53 End-of-show degeneracy: full monty jokes, sensitivity training, and accidental innuendo
Don and Tom welcome Weston Wellington of Dimensional Funds for a rare and richly insightful conversation covering market volatility, media noise, diversification, and the enduring wisdom of index investing. Weston compares Spam to Motorola, skewers financial hype, and champions simplicity in investing—and yes, he might just sing if you let him. The conversation explores how far the financial industry has evolved (and still has to go), why most investors get in their own way, and whether AI or just good old-fashioned “aggregated intelligence” holds the future of smart money management.
0:04 Don’s surprise “singing telegram” and guest intro
0:53 Weston Wellington on volatility and market uncertainty
2:47 Why volatility is the “price we pay to play”
3:32 The media’s role in investor anxiety
4:57 Should investors act on daily financial advice?
6:15 Portfolio changes should reflect personal changes, not headlines
7:24 Spam vs. Motorola: A lesson in stock picking
9:44 Dimensional’s stance on individual stock ownership
10:02 Diversification as “the closest thing to a free lunch”
11:07 Are alternative investments the new magic bullet?
12:43 Mutual funds vs. ETFs—what works best and when
15:27 Industry evolution: from 8% loads to indexing dominance
18:29 Where Dimensional fits in the modern fund landscape
21:01 AI vs. “aggregated intelligence” in managing portfolios
24:04 How regular people can find real financial advice
25:34 The key to success: Temperament, not timing
26:44 Weston’s side gig as a roving birthday singer
27:58 Why Weston hasn’t been invited lately (and he's lonely)
Don’s back from NYC with pride (and maybe jet lag), tackling a full slate of thoughtful listener questions. From Roth conversions and the TSP G Fund to cash balance plan gimmicks, RMD timing, overpriced 401(k) plans, and yes, the eternal question: Are annuities ever worth it? Don delivers straight talk, a little outrage, and no-nonsense advice—with some well-placed jabs at the industry’s smoke and mirrors.
0:04 Don returns from NYU graduation trip and thanks listeners for sending questions
0:56 Should a 54/61-year-old couple convert traditional IRA to Roth? “It depends”
3:05 Federal employee asks about the TSP G Fund – why it’s loved, and when not to use it
5:47 High earners ask about cash balance plans – Don says beware the fees and opacity
11:05 Planning for RMDs at 73 – monthly, quarterly, or lump sum? Don prefers year-end
13:38 60-year-old stuck in a principal 401(k) with 2.3% fees – Don goes full outrage
18:28 “Are annuities ever appropriate?” Yes—but rarely, and only immediate ones
Don and Tom launch into a globe-trotting episode—complete with multilingual greetings and a cameo from Cookie Monster—before diving into the serious question of global investing. They challenge the "home country bias" that keeps investors overly concentrated in U.S. stocks, highlight the recent performance gap favoring international small-cap value, and remind listeners that chasing returns and market timing are just two sides of the same bad investing coin. With personal anecdotes, Japan’s long recovery, and fund comparisons (VT, AVGE, DFAW), they make a rock-solid case for global diversification. Plus: a real-life trustee dilemma, a potentially smart annuity strategy, and a few dad jokes you didn’t ask for.
0:04 Multilingual greetings, Cookie Monster, and off-the-rails intro
1:38 Listeners ignore the banter—jump straight to annuity questions
2:05 “Why would I want foreign stocks?” US home bias gets roasted
2:39 International small-cap value up, S&P down—performance flips
3:23 Blackberry nostalgia, Don’s voiceover gigs, and cowboy auditions
5:30 U.S. vs. international investing—timing or chasing returns?
6:48 Market cycles and why global investing reduces regret
8:26 Feelings aren’t facts—own the planet, not your predictions
10:08 Japan's 34-year climb back—and the real lesson of 1990
11:49 Dividends matter: Japan’s returns weren’t all dead
12:20 Comparing VT, AVGE, and DFAW for global exposure
14:33 Why Don prefers global funds over DIY U.S./intl combos
15:30 A 1992 Japan vs. global return showdown—$10k becomes $41k or $233k
17:50 They buried the lead—global diversification wins again
18:14 Listener corrects math on 4% rule—Don admits the slip
19:06 Comment on borrowing from 401(k) and the “double-tax” myth
20:04 Facebook dad jokes derail Tom’s patience
20:53 Trust investing dilemma: annuity vs. portfolio income
23:50 Immediate annuity may be the best fit for a “failed-to-launch” son
25:23 Where to shop for no-load annuities—Fidelity, Ameritas, Stan the Annuity Man
In this episode, Don and Tom rewind to the not-so-golden era of Wall Street paperwork, bringing a modern perspective to old-school investing habits. They tackle listener questions around dividend investing, the allure of individual stocks, and whether the 'buy and hold forever' mindset still holds up in the era of ETFs. Along the way, they dismantle outdated advice, give historical context to stock certificate culture, and steer listeners back toward diversified, evidence-based strategies. A little nostalgia, a lot of myth-busting.
0:00 — Opening thoughts on old-school investing
1:30 — Why dividend stocks still captivate investors (and why they shouldn’t)
3:45 — Caller wants to hand-pick dividend stocks for income—Don’s got a better plan
6:12 — The problem with nostalgia-driven portfolios
7:55 — What a pile of stock certificates used to represent—and what it doesn’t anymore
9:40 — Why ETFs offer smarter, cheaper, saner exposure to dividends
12:18 — Tom reflects on the emotional appeal of owning "pieces of companies"
14:02 — Another caller asks: Should I dump my dividend ETF for higher-yield stocks?
15:40 — Compounding, risk, and the illusion of control
17:00 — Why chasing yield can lead to capital destruction
19:15 — Final thoughts: Don’t mistake familiar for safe, or paper for value
Don and Tom take aim at America's favorite financial myths—starting with the widespread belief that real estate and gold are the best long-term investments. They present nearly 100 years of historical data to show why stocks have far outpaced both. The conversation also tackles misleading annuity pitches, a classic pension lump sum dilemma, and the age-old question facing 20-somethings: save for a house or retirement? Callers bring smart questions about guaranteed annuities, where to park surplus cash, and the VT vs. VTI+VXUS tax argument. As always, the show delivers investing wisdom with skeptical charm and a few zingers.
0:10 — A third of Americans believe real estate or gold are the best long-term investments
1:40 — The real historical winners: stocks beat gold and real estate by miles
3:03 — Nearly 100 years of returns: real estate (4.2%), gold (5%), stocks (9.9%)
6:00 — Don’s missed heart procedure and Tom’s recycled joke vault
7:49 — Don’s NYC hotel sticker shock vs. Tom’s five-star absence excuse
9:02 — Caller Jim asks about multi-year guaranteed annuities as bond alternatives
10:01 — Why MYGAs aren’t remotely comparable to U.S. Treasuries
13:07 — If something looks too good (5.8% guaranteed), it probably isn't
14:25 — Another Jim (Florida) asks: lump sum or $250/month pension?
17:30 — Financial flexibility vs. longevity risk in pension decisions
21:32 — Listener dilemma: save for retirement or a house at 24?
23:57 — Why early Roth contributions beat early homeownership for long-term wealth
25:41 — Kyle in Indianapolis has an extra $40K—where should it go?
27:26 — If it’s 5 years, don’t risk stocks. If it’s 10+, maybe
30:47 — Allie from Wyoming asks: VT vs. VTI+VXUS for better foreign tax credits
32:25 — Why foreign tax credit isn’t a good enough reason to skip VT
34:21 — Global GDP, stock valuations, and the eternal U.S. vs. international allocation debate
In this episode, Don and Tom tackle the investor's most persistent foe—fear—especially during volatile markets. They draw on insights from Vanguard and others to reinforce the value of long-term investing, explain why missing a few key days in the market can devastate returns, and stress the importance of rebalancing over reacting. The duo also takes on political distractions, market timing myths, asset location dilemmas, and the emotional turbulence that causes people (including Don’s wife!) to question their portfolios. It all wraps with a cheeky new market jingle courtesy of ChatGPT and a shirt that reached Everest. Yeah, literally.
0:04 Welcome, podcast humor, and the pain of being downloaded
1:10 The recurring fear-driven urge to “do something” with your portfolio
1:33 Set it and forget it? Vanguard and others weigh in
2:44 Remember AOL? The danger of investing with confidence in the wrong thing
3:35 Volatility is the cost of real returns—don’t try to dodge it
4:50 Presidential influence and personal political biases in investing
5:50 Real portfolios with too few stocks and too much risk
6:55 Missing just 10 good days in the market could cut your returns in half
7:59 Buy and hold ≠ do nothing: how disciplined rebalancing works
9:17 Should you be buying international now? Maybe… but only if rebalancing
10:21 Feelings ≠ facts: don’t let emotions dictate portfolio moves
11:31 “Tune Out the Noise”—free advice and a free YouTube documentary
13:06 A musical market mantra written by ChatGPT
14:47 When even your spouse doubts your strategy: the advisor's personal dilemma
16:57 T-shirt spotted at Everest Base Camp—financial fame ascends
18:14 Can you contribute to a Roth IRA using last year’s wages?
19:54 Why young investors should love down markets
20:11 Asset location dilemma: comparing AVUV vs FISVX in 401(k) plans
23:54 Bedford, TX and a lesson in regional geography
24:31 Don’t chase performance—get help and rebalance smart
25:05 One more round of “Clueless is Smart”—market timing parody jingle
In this extra-packed Friday Q&A episode, Don powers through a barrage of listener questions while recovering from an attempted heart ablation (yep, he's okay—but not fixed). He dives into everything from sketchy SIMPLE IRA fees and Roth rollover rules, to when it actually makes sense to take Social Security. You’ll also hear a checklist of questions to grill a potential financial advisor with, a primer on small-cap value stocks, and a lightning-round suggestion for international bond exposure. And yes, he dishes on why many advisors don’t actually want you to read those pesky prospectuses.
0:04 Don's in his VO booth—surgery didn’t go as planned
1:38 SIMPLE IRA fees: 5% commissions and better alternatives
3:53 Roth IRA strategy: match in SIMPLE, max out Roth with AVGE
8:35 Why that Raymond James advisor doesn’t want change
9:43 Social Security breakeven isn’t one-size-fits-all
11:35 Roth IRA transfer to Robinhood: does 5-year clock reset?
13:04 What to ask when hiring a financial advisor
16:06 Small-cap value vs. other stocks explained
18:59 Comment: Prospectuses scare advisors (and why)
21:42 Best international bond index fund? Try BNDX
On this Talking Real Money episode, Don and Tom tag-team one of the biggest financial myths around: your house as a retirement plan. With over $35 trillion locked in U.S. home equity, they challenge the idea that owning a home equals wealth. From the emotional pull of mortgage payoffs to the liquidity traps of reverse mortgages and HELOCs, the duo breaks down the risks, rewards, and real returns of homeownership. Then it’s on to listener questions about IRAs, 401(k)s, rollovers, and... fiber (yes, the breakfast and internet kind). And they end with a little brag—because 154,000 monthly listeners can’t be wrong.
0:04 $35 trillion tied up in homes—does that make us rich or just house-poor?
1:20 Post-COVID home equity boom: 80% growth, but at what cost?
2:53 Renting vs. buying: the case for liquidity over bricks
3:44 Property tax pain for retirees and why Florida isn't so tax-free after all
4:21 Mortgage payoff: emotional win, financial mistake?
5:48 Why home equity shouldn’t be your retirement income plan
6:37 Housing’s historic returns: barely 3% pre-inflation
7:54 Forced savings illusion and the real cost of home improvements
8:45 If you’d invested instead of buying… you’d have more
9:35 Reverse mortgages, HELOCs, and why it’s harder to get cash out
10:19 Home equity lines now ~8%—not cheap or easy to get
12:30 Big picture: don’t include home equity in your retirement spending plan
14:05 Florida vs. California: which really costs more to live in?
16:38 Insurance, taxes, and Florida's fraud problem
18:50 Listener Q: Can you do both an IRA and a 401(k) in the same year? (Yes.)
20:40 IRA vs. 401(k): pros, cons, and personal strategy
22:53 Listener Q: Should we roll an old 403(b) to a Roth IRA?
23:44 Talking Real Money’s audience numbers: brag-worthy and booming
25:19 Retirement prep tip: match income to lifestyle before you retire
Tom welcomes Roxy Butner to co-host a packed episode of Talking Real Money, tackling the ever-elusive "magic number" for retirement with a healthy dose of realism, humor, and data. They dig into a Northwestern Mutual study that shows Americans lowering their retirement savings goals—even as confidence continues to slip. Roxy breaks down why retirement planning is all about cash flow, not some mythical lump sum. They field questions on company stock in 401(k)s, bonus check strategies, RMD tax strategies, and how to get young people started right. From Monte Carlo analysis to Roth IRA advantages, the duo bust myths and offer practical steps listeners of all ages can act on today.
0:04 Tom introduces Roxy and the episode’s core question: “Do I have enough to retire?”
1:01 Why the idea of a single “magic number” is misleading and varies by lifestyle
2:41 Roxy: $600k may be enough—or $3M might not be; it’s all about cash flow
4:32 Despite lowering their goals, only 51% believe their retirement plan will work
6:15 Roxy explains Monte Carlo analysis and why asset type (Roth vs. pre-tax) matters
7:31 Why tracking actual spending matters more than estimates before retirement
8:32 Caller: Should we sell the company stock in my wife’s 401(k)?
9:18 Tom warns of overconfidence and stock concentration risk, citing WaMu collapse
10:45 Roxy and Tom agree: diversify ASAP—don’t let company loyalty cloud judgment
12:14 Historical cautionary tales on once-great companies that fell apart
13:26 Regional bias: How geography skews investor confidence in local companies
14:46 Caller: What to do with a $20k bonus after maxing out the 401(k)?
16:11 Roth IRA contribution options for him and his wife, and the 5-year rule
18:10 Bonus: Enhanced catch-up contributions for ages 60–63 explained
20:31 Caller asks about RMDs, tax planning, and long-term care deductions
21:53 Only qualified charitable distributions (QCDs) avoid tax on RMDs
23:24 Roth contributions early in life can lead to massive long-term advantages
24:47 Caller asks about a bond fund change in her HRA and 60/40 portfolio safety
29:45 Why “safe” is the wrong word—know your plan, goals, and risk tolerance
31:13 Caller wants her daughter to connect with Roxy for help managing her paycheck
32:54 Yes—Roxy helps young clients with budgeting and financial foundations
34:31 Why early saving and simple investing in your 20s is so powerful
36:09 Tom announces upcoming trip to Portland and free portfolio reviews
37:08 Final notes: building trust, long-term planning, and why they love the work
Tom Cock takes the mic solo (with Don recovering from a “procedure”) and brings in advisor Roxy Butner for a special live episode. They reflect on Warren Buffett’s decision to retire in 2025, discussing lessons from his value investing strategy and massive cash holdings. Listener questions roll in on topics like compound interest assumptions, the risks of holding company stock, ETF mechanics, and how best to diversify for retirement. They also recommend the YouTube documentary Tune Out the Noise, tackle behavioral finance biases, and offer free portfolio reviews—including Tom’s upcoming in-person trip to Oregon.
0:05 Tom hosts solo, Don out recovering, show call-in number shared
0:53 Warren Buffett announces 2025 retirement; lessons from his investing style
2:49 Value investing, risk tolerance, and why most portfolios ignore value stocks
5:05 Buffett’s ultimate advice: low-cost index funds, tune out the noise
7:09 Guest Roxy Butner joins the live show for the first time
7:28 Listener Q: YouTube doc Tune Out the Noise and Dimensional Fund Advisors
8:44 Listener Q: Using 7% return assumptions—how conservative is that?
10:53 Monte Carlo simulations vs. flat-rate assumptions in planning
12:32 Saving percentages, lifestyle choices, and setting early-retirement goals
14:04 You can't count on future returns—only saving and diversification
15:22 Company stock danger: bias, volatility, and concentrated risk
17:51 Behavioral finance: home bias and overconfidence in familiar firms
20:32 Listener Q from Orlando: DFIV vs. VEU, building a smart ETF mix
23:30 Discussing stock/bond ratios, fund tilts, and tax efficiency
25:34 Roxy’s advice: multiple funds offer tax flexibility in taxable accounts
27:16 Listener Q from Ottawa: Do ETF trades affect prices of underlying stocks?
29:59 ETF structure explained, flash crash risk, and long-term thinking
34:17 Listener wants a Talking Real Money nickname—challenge accepted
34:44 ETF vs. mutual funds in taxable vs. retirement accounts
36:19 Free portfolio reviews and Tom's May 21 visit to Lake Oswego
38:29 Roxy's biggest mistake she sees: U.S. large-cap overconcentration
Don and Tom get real about the most important lessons every young person should learn about money—before life (and bad decisions) get in the way. From money values to compound interest, tax realities to the unpredictability of markets, they each offer a list of financial truths no teen should graduate without. Along the way, they drop stories from their own lives, take questions from listeners, and somehow end up discussing soccer (and why Don still doesn’t get it).
0:04 Back to basics: What young people really need to know about money
1:35 Why financial literacy is shockingly low and how Don is tackling it
2:47 Tom’s top five lessons: values, saving habits, compound interest, taxes, and risk
10:48 Don’s five(ish) truths: uncertainty, diversification, history, luck, and time
18:33 Bonus lesson: Save and invest for what money can do, not just to have more
19:04 Q&A: Should a 36-year-old shift from a target fund to DFAW and AVGE?
22:02 Listener wants to up international exposure without “buying winners”
24:47 Rebalancing tips: why it’s okay to shift your allocation now in retirement accounts
25:24 Reflections on past podcasts, Lit Reading, and leaving a legacy
26:30 Soccer vs. baseball: Don’s confused but still trying
Don records this Q&A episode a bit early—right before heart surgery—to make sure listeners don’t miss their Friday dose. He kicks off with a listener confused by a boilerplate $50 foreign stock fee warning on a Fidelity Zero fund (spoiler: it doesn’t apply). Another caller is teetering on the edge of retirement viability with $500K, pensions, and Social Security—Don offers honest thoughts on withdrawal flexibility and why waiting on SSI might be wise. Then comes a takedown of Wealthfront’s direct indexing for small investors (aka “gimmickry”), a nuanced answer about annuitizing a pension vs. taking the lump sum, and finally, a nearly microscopic comparison of IXUS vs. VEU for international exposure. Birds chirp, bells ring, and Don reminds everyone that free help is just a click away
0:05 Early episode recording—Don preps for heart surgery
2:07 Fidelity Zero fund confusion over $50 foreign stock disclosure
5:40 Can I retire with $500K, two pensions, and a 60/40 Roth portfolio?
9:07 Is Wealthfront’s direct indexing portfolio worth it at $20K?
12:46 Should I annuitize my pension or take the lump sum?
15:30 IXUS vs. VEU for international diversification—does it matter?
On this myth-busting episode of Talking Real Money, Don and Tom tackle persistent financial fables that sound logical but often lead investors astray. With help from a Kiplinger list and their own experience, they dissect myths around mortgage payoff returns, Roth conversions, Social Security fears, withdrawal rules, and tax refunds—plus three bonus myths that still haunt conversations today. Along the way, Don shares his own recent experience filing for Social Security online (spoiler: it was surprisingly smooth), and they answer listener questions about muni bond funds and a bizarre Social Security payback tax mix-up. As always, it’s myth-busting with a side of snark and a dash of real advice.
0:04 Myth-busting opener and Greek mythology jokes
1:03 Myth #1: Paying off a 5% mortgage equals a 5% return
5:14 Myth #2: Roth conversions always reduce taxes
7:57 Myth #3: Social Security is going bankrupt
13:20 Myth #4: The 4% rule guarantees retirement success
17:16 Myth #5: It's better to get a tax refund than owe taxes
18:54 Bonus myths: “I can save later,” “Investing is zero-sum,” and “High-cost funds perform better”
21:21 Listener question: Social Security payback tax confusion
26:42 Listener question: Best muni bond ETF for a high-tax-bracket senior
Tariffs, fear, and stockpiling—oh my! Don and Tom break down how consumer sentiment, not just consumer spending, is shifting dramatically under the weight of tariff uncertainty. They connect behavioral shifts—like Googling “recession” and panic-buying tires—to bigger economic signals and what it all means for investors. From the role of emergency savings to the misleading pitch of indexed annuities, they dismantle hype and stress the importance of sticking to a real plan. They also field smart questions on Roth conversions, muni bonds, and whether now is the time to invest that idle cash. Oh, and don’t worry: most of our toilet paper is made right here in the good ol’ USA!
0:11 Consumers drive the economy—and investment returns
0:47 Sentiment is slipping fast, and it could trigger a slowdown
2:05 “Recession” and “depression” searches spike amid uncertainty
3:11 Tariffs shift what we buy: food in, luxury out
4:24 What investors should do now: boost emergency savings
7:22 Auto stockpiling and tariff-fueled panic buying
8:50 Prices rising, brand loyalty falling, and psychology shifting
10:27 Volatility confuses perception—despite flat portfolio returns
12:16 Emergency funds are real insurance without the gimmicks
14:14 Spry 102-year-olds and the power of Bulgarian yogurt
17:47 Best muni bond fund choice for high tax brackets: VTEB
20:31 Can’t milk a Buckeye, but they might ward off arthritis
22:52 Roth conversions: should you pay the tax now or wait?
28:57 Indexed annuities: steak dinners, sales tricks, and the ugly truth
34:16 Why the commissions are so high—and the returns so low
37:55 Got cash on the sidelines? Here's what to do before investing
39:27 Final advice: plan first, invest later, ignore the noise
Our memories—and sometimes our parents'—shape how we invest, often more than logic or data. Don and Tom break down how generational financial trauma, recent market trends, and asset class myths (like gold and U.S.-only investing) skew our thinking. They call out flawed stock picking contests, revisit the real long-term returns on gold versus stocks, and explain why short-term memory leads to bad long-term decisions. Listener questions hit everything from where to park house savings to bond fund risks, rebalancing strategies, and simplifying retirement saving using the TSP. Oh, and yes, the laundry room podcast myth lives on, and the Fyre Festival somehow still smolders in the background.
- 0:04 Don and Tom settle into the show—studio quirks, mic levels, and inviting questions
- 0:52 How memory bias—from the Great Depression to dot-com boom—influences investment behavior
- 2:07 Family stories from the Depression era and why stock picking games teach the wrong lesson
- 2:54 Why investors wrongly believe growth stocks always beat value—thanks to recent performance
- 5:20 Myths about market trends: U.S. dominance, buy-the-dip thinking, and time horizon confusion
- 7:46 Gold mania: Recent price surge vs. long-term returns—spoiler, stocks win
- 9:58 Long-term perspective: $10k in 1980—Gold vs. Treasuries vs. Global portfolio
- 10:28 Listener: Where to park house construction funds short-term—ETFs vs. money markets
- 13:30 Why those new ultra-short ETFs may be a trap
- 15:17 Listener: Should I buy callable bonds with 6% yields? And what’s with PIMCO’s “14%”?
- 17:36 Risks of leveraged bond funds like PDI—why they don’t belong in a stable portfolio
- 19:46 Listener: How often should I rebalance in a 401(k)?
- 23:12 Listener in Albuquerque: Should I go all-in on the C Fund for simplicity?
- 25:39 Roth vs. TSP—what matters more: today’s tax rate or the future’s unknowns?
- 27:33 Future goals: quarterly travel in retirement and pizza roof update
- 28:22 Investing in “brands” like Fyre Festival—don’t
- 32:30 $63 offer for the Fyre trademark, and a plug for free fiduciary advice
Don and Tom dive into the seductive but dangerous world of leverage, starting with real estate and quickly moving into the even riskier territory of leveraged ETFs. They explain how leverage magnifies both gains and devastating losses, using real-world examples like the Direction 3X Treasury Bull and Bear funds, which either crushed or annihilated investor money. They caution listeners that these “extra touchy” funds are pure speculation, not investing, and explain why most people should stay far away. The episode wraps with smart listener questions on direct indexing, Roth rollovers, and the hidden risks in trying to beat the market on your own.
- 0:04 How leverage props up real estate and investing myths
- 1:32 The dark side: Leveraged funds and massive losses
- 2:49 Triple leverage dangers: 90% losses vs. 266% gains
- 5:38 Long-term performance: both leveraged bulls and bears lose
- 7:52 Even treasuries show wild volatility with leverage
- 9:57 Why leveraged funds are pure speculation, not investing
- 11:44 Risk explained through standard deviation comparisons
- 14:16 Listener question: Direct indexing vs. S&P 500 returns
- 17:44 Listener question: Roth 401k rollover to Roth IRA tips
In this listener Q&A episode, Don dives into some powerful topics—from calling out the sales-driven heart of the financial services industry to explaining how bond index funds are built and breaking down the tax realities of non-retirement brokerage accounts. A caller wrestles with guilt over a bad annuity recommendation for a dying relative, prompting a raw conversation about the system’s moral middle ground. Don shares his own early days as a product peddler, highlights red flags to look for in firm ADVs, and walks through the Medicare vs. FEHB decision matrix. If you’re seeking peace, clarity, or just a solid tax lesson, this one delivers.
- 0:04 Opening reflection on aging, money, and why this show matters
- 1:17 Reminder to send questions via TalkingRealMoney.com or call live on Saturdays
- 2:38 Listener shares regret over a bad annuity recommendation from a familiar advisor
- 4:02 Don’s early days as a top-tier salesman turned financial “advisor”
- 5:21 Why most advisors aren’t fiduciaries—and why it matters
- 6:29 MarketWatch study reveals only ~1% of advisors are true fiduciaries
- 7:58 Never trust financial advice based on friendship or affinity
- 8:49 Next caller: How are bond index funds weighted?
- 9:15 Explanation: Bond indexes are also market value weighted
- 10:37 Why bond ETFs are mostly U.S. Treasury securities
- 11:34 Should a retired federal employee with FEHB skip Medicare Part B?
- 13:12 Don’s personal Medicare math and “if it ain’t broke…” approach
- 13:41 New CFP asks: What should I look for in a firm’s ADV as a job seeker?
- 15:02 Red flags: Conflicts of interest, broker registrations, insurance licenses
- 17:18 Align your investment beliefs with the firm’s philosophy
- 17:31 Last question: How is a taxable brokerage account taxed?
- 18:42 Explanation of interest, dividends, and potential capital gains
- 20:31 Don reiterates that real help—not a sales pitch—is always the goal
Gold is back in the headlines, but should it be in your portfolio? Don and Tom take a fresh (and frequently hilarious) look at the shiny metal that never seems to deliver. From Fort Knox to Costco’s gold bar rush, they trace gold’s lackluster long-term returns and its overhyped reputation as a hedge. They break down why physical gold fails as an investment, why GLD is better (but still meh), and why long-term investors might already have enough exposure through diversified funds. Plus: a Medicare premium surprise fix, the case of the copper penny, and a brief but loud murder of crows.
- 0:04 Gilded White House jokes lead into a serious look at gold
- 1:00 Don and Tom reunite—same page, same side, same skepticism on gold
- 1:57 Yahoo Finance: gold’s biggest quarter since 1986
- 2:34 Gold’s ancient history and the Second Boer War detour
- 3:48 What’s a hedge, really? Gold vs. inflation
- 4:21 15-year performance: gold vs. S&P 500
- 5:40 1980 to 2024: gold’s long climb back to break even
- 7:10 110 years of gold prices—brief spikes, long plateaus
- 8:54 The emotional allure of physical gold (and why it’s irrational)
- 9:44 Physical gold: storage, insurance, and Armageddon prep
- 11:10 GLD: a better, but still limited, gold investment
- 12:49 Gold’s chart pattern: flat, spike, crash, repeat
- 13:26 Why gold isn’t a real investment—it doesn’t grow
- 14:16 Gold mining stocks as an indirect investment
- 15:02 Surprise! Taiwan Semi uses gold in chip production
- 15:34 Crypto vs. gold: at least gold is pretty
- 16:07 Atomic number nerdiness and family science failures
- 16:39 Q&A: Will one-year income spike raise Part B premiums?
- 18:06 IRMAA form and exceptions for life-changing events
- 20:02 Medicare Part B premium ranges and adjustments
- 21:10 Listener Perry wonders: if pennies go away, can we melt them?
- 22:34 Today's pennies: mostly zinc, not a copper mine in your jar
- 23:56 Will the penny ever die? Bureaucratic inertia says no
- 24:14 DIY penny production? Just don’t.
- 25:16 Podcast etymology: Apple vs. The Guardian debate
- 26:51 Outro chaos: crows, jokes, and how to ask your questions
When markets get bumpy, emotions take the wheel—and that’s exactly why Don spends this solo episode reminding listeners that logic, evidence, and simplicity still win in the long run. He digs into why private investments aren't the magic they claim to be (even when Vanguard jumps in), why diversification still beats sexy strategies, and how the best “alternative” to bad investing is simply building a solid plan and sticking to it. Listener calls explore structured products, the Sharpe ratio, reverse mortgages, and how to spot a real fiduciary in the wild.
- 0:04 Money mistakes, solo hosting, and listener calls
- 1:17 Market volatility and emotional reactions
- 2:07 Logic and evidence beat financial “magic”
- 3:11 Vanguard’s alt fund and private asset hype
- 4:28 Private equity: opaque pricing, no liquidity
- 6:16 High-cost alternatives underdeliver
- 7:41 Vanguard alt fund: high fees, weak returns
- 9:13 Caller: staying long-term with S&P 500
- 10:20 Don: diversify beyond S&P with VT
- 11:30 Sharpe ratio explained; structured product skepticism
- 13:08 Structured notes: high fees, poor transparency
- 15:00 Fama quote: Few new ideas ever work
- 16:03 Caller: What does Berkshire Hathaway actually do?
- 17:23 Buffett builds value—why you can’t replicate it
- 20:08 You already own Berkshire in index funds
- 21:37 Caller: does currency manipulation matter?
- 23:32 Short answer: not really
- 25:45 Ignore most financial news—it’s just noise
- 27:22 Don flying solo this week
- 27:57 Caller: how to find a real fiduciary
- 31:16 Why Don doesn’t do meetings, and where to get help
- 36:12 Caller: reverse mortgages and property financing
- 39:55 Trusts and protecting assets—call a lawyer
Don flies solo on this episode of Talking Real Money, fielding calls and calling out the nonsense in fancy investment gimmicks. From market-neutral funds to buffered ETFs, he lays out the case for simplicity, diversification, and discipline over complexity and high fees. Along the way, he compares real-world returns of flashy funds to the humble Vanguard Balanced Index, explains the math behind risk and reward, and gently teases listeners dabbling in covered calls and premium farming. With real estate worries, Schwab steak dinners, and Tesla bulls turned cautious, this episode is classic Don: blunt, funny, and laser-focused on keeping it real… money.
- 0:04 Friendly welcome and a call for co-hosting help as Don flies solo
- 1:16 Call-in number shared, and Don apologizes for occasionally sounding political
- 3:01 Markets are volatile—skip the politics, let’s talk practical moves
- 3:59 Media fear-mongering and the pitch for “alternatives”
- 5:13 Barron's & WSJ pitch fancy stuff—Don calls it gimmickry
- 7:15 Long-term market history shows why patience wins
- 8:54 The Campbell Systematic Macro Fund vs Vanguard Balanced Index
- 11:20 Comparing performance, risk, and costs—spoiler: Vanguard wins
- 12:45 Complexity benefits salespeople, not investors
- 13:33 Jim from Tacoma asks about “buffered ETFs”
- 14:02 Don explains buffered ETFs, costs, and gimmick risk
- 16:23 The danger of complex products with little upside
- 17:41 Expense ratios and risk in buffered funds vs Vanguard again
- 19:34 Greg from Florida gets pitched “Schwab Personalized Indexing” over grouper
- 22:15 Direct indexing: useful, but only for big portfolios
- 23:20 Planning is more powerful than piecemeal strategies
- 25:58 High costs, tax strategies, and why a real plan matters
- 28:00 Laura in Olympia asks about selling her home to retire
- 29:24 Market timing fears and the power of diversification
- 30:59 Passive income myth and the burden of managing property
- 31:56 Adjusting risk with age and leaning on fiduciary advice
- 33:14 Real estate market is strong—Don gives Laura confidence
- 34:34 Jason from Sammamish—the “Tesla Bull”—asks about premium farming
- 36:01 Writing covered calls to buy into VONG—Don offers cautious perspective
- 37:51 Don’s stockbroker days and every strategy eventually failing
- 39:09 Covered calls as fun, not a serious strategy—Don doesn’t want copycats
- 39:52 Don signs off with a reminder: invest simply, plan wisely, and stop guessing
In this episode of Talking Real Money, Don McDonald and Tom Cock discuss practical strategies for navigating recessions without panic or unnecessary market timing. They critique the constant, fear-driven speculation around economic downturns and emphasize maintaining a disciplined, long-term approach. Highlighting actual investor behavior from Dalbar studies, they explain why market timing almost always results in poorer returns. Tom humorously criticizes aggressive pickup truck drivers and touches on avoiding common recession-investing mistakes, advocating instead for careful asset allocation, understanding emotional risk tolerance, and maintaining a sensible emergency fund. Listener questions prompt discussions on treasury ladders versus bond funds, the impact of expense ratios, and effective short-term cash management.
- 0:10 Surviving and thriving during recessions
- 0:26 Probability of recession discussions
- 1:04 Don criticizes recession scare tactics
- 1:46 Humorous digression about pickup trucks
- 2:49 Audience wants solutions, not problems
- 3:48 Avoiding common recession investing mistakes
- 4:39 Wall Street Journal example of market timing errors
- 5:29 Importance of emergency cash for retirees
- 6:04 Risk versus loss in investing
- 6:28 Understanding emotional risk tolerance
- 8:01 Critique of Wall Street's short-term focus
- 8:36 Long-term investing approach regardless of recession
- 9:01 Dalbar study reveals poor market-timing results
- 10:51 Long-term Dalbar investor returns vs. market returns
- 13:09 Humorous tangent on global population
- 13:44 Listener questions segment begins
- 14:33 Discussing asset allocation and bond fund concerns
- 16:18 Bond ladder vs. bond fund debate
- 17:20 Examining long-term bond fund returns
- 18:09 Benefits and drawbacks of bond funds
- 19:28 Comparing money market fund options (DTAXX)
- 21:06 Expense ratios significantly impact returns
Don and Tom explore the role of risk, resilience, and rational investing as they tackle stock market uncertainty, Roth conversion confusion, and Robinhood’s attempt to lure new users. They mix in practical advice with plenty of caller questions—plus a detour into air-dried laundry, social media skepticism, and an appreciation for the film Tune Out the Noise. It's Talking Real Money in its purest form: smart, skeptical, and occasionally funny.
- 0:04 Intro: Making money more understandable
- 1:09 Tom’s tech issues and growing role of the stock market
- 2:11 When you should sell stocks in retirement
- 3:31 Risk capacity vs risk tolerance explained
- 5:14 Funny promo: Financial Flinch Reflex (FFR)
- 6:32 Stock market participation then vs now
- 7:04 Caller: Gratitude for 'Tune Out the Noise' documentary
- 8:16 The real goal of the show: Tuning out the noise
- 10:45 Caller Paul on clothesline nostalgia and laundry talk
- 13:05 Documentary's backstory, David Booth’s art & Dimensional’s origins
- 14:30 Why market timing makes you crazy and poor
- 15:57 Caller Tom sees a Facebook Roth ad—what gives?
- 17:46 Breaking down legitimate Roth conversion strategies
- 19:31 Don’s rant on Facebook, Tom’s retreat to LinkedIn
- 20:39 Caller Roger: Can you convert RMDs into Roth? (Spoiler: no)
- 21:37 Clarifying RMDs vs Roth conversions—rules & misunderstandings
- 24:14 Direct 401(k) to Roth IRA conversion—confirmed
- 25:59 Q: Why add bonds if you're 20 years from retirement?
- 28:03 How real people react to 50% portfolio drops
- 29:16 The truth about emotional investing and loss tolerance
- 31:08 Why Robinhood’s "free money" comes at a cost
- 32:56 Custodians vs Gamifiers: Schwab, Fidelity, and the Robinhood trap
Huge market swings, political chaos, and investor confusion set the stage for this episode. Don and Tom break down the emotional impact of volatility, the myths of market timing, and the wisdom in sticking to long-term plans. With insights from Jason Zweig and some smart listener Q&A, they remind us that discipline—not prediction—is what builds wealth, even in uncertain times.
- 0:01 Intro with the 'interesting times' curse and the current market confusion
- 0:48 S&P 500 drops 10.5% in two days, bounces back 9.5%—market whiplash
- 1:33 How volatility overloads the brain and leads to bad decisions
- 2:28 Few people understand tariffs—uncertainty drives market instability
- 3:24 The idea of the market as a fourth branch of government
- 3:38 Why owning stocks long-term still makes sense
- 5:03 Investor panic: emotional decisions vs. rational plans
- 6:27 Jason Zweig's four questions for investors—clarity through chaos
- 8:13 Why you own stocks: not trade stability, but long-term growth
- 9:08 What's changed? Trust, tariffs, and long-term resilience
- 10:27 You earn the premium by enduring market fear
- 10:31 The emotional trap of anchoring and chasing returns
- 11:44 The fantasy of upside-only investing—and the danger of chasing it
- 13:04 Caller Jeff: Should I dollar-cost into ETFs or sell and buy all at once?
- 14:27 Advice: In a retirement account, just make the shift—it’s lateral
- 16:04 Caller Bill: Accidental portfolio drift and how to rebalance to 50/50
- 19:05 Simple ETF plan vs. target-date funds for retiring investors
- 20:37 Caller Joe: Real estate success and why stocks aren’t for everyone
- 27:09 The overlooked danger of foreign countries selling U.S. debt
- 30:24 Bond prices, interest rates, and currency impacts explained
- 32:04 U.S. credit rating vs. the world—and why diversification still matters
- 33:28 Tariff risks, political uncertainty, and long-term investing perspective
- 35:25 If you’ve invested right, you don’t need to react
- 39:04 Tom’s "work trip" vacation and Don flying solo next week
In this classic swirl of candor, humor, and financial sense, Don and Tom tackle the human habit of financial foolishness—from betting big on speculative ETFs to ignoring global diversification. They call out the irony of investment products like ELON, roast the current state of the Motley Fool, and offer real-world perspective on international investing, market timing myths, and retirement portfolio design. They even sprinkle in a few thesaurus gems for good measure.
- 0:04 Welcome and warning: this episode is full of tangents, tomfoolery, and truth
- 0:48 Netflix documentary detour: why are people (and investors) so dumb?
- 2:01 International investing: why people ignore it and why that’s… dumb
- 3:49 U.S. vs international returns in early 2025—surprise! It’s not all about the S&P
- 5:16 Market irony and the value of global diversification
- 6:09 A disappointing turn from The Motley Fool (and a very public grudge)
- 6:59 Enter the ELON ETF—double Tesla, short Ford, and down 64%
- 9:41 What happens when leverage meets marketing in the worst way
- 11:10 A $750K fund that made… $675 in fees. Yep.
- 11:57 Foolish investor behaviors: feelings ≠ foresight
- 13:37 The (simple) path to real investing: low-cost, tax-efficient, diversified portfolios
- 14:28 Punchline investing: don’t be a dunce—be global, be patient
- 15:52 Listener Q: Is my mix of S&P 500, TDFs, and Roth diversification enough?
- 17:26 Portfolio allocation advice: stock/bond mix first, account strategy second
- 19:28 Suggestion: get a professional plan before retirement
- 20:00 Buffered ETFs: what they are, why they’re pricey, and why they disappoint
- 23:22 Returns reality check: buffered funds vs plain S&P 500
- 24:47 The big lie of hedged products—"all the upside, none of the risk"
- 25:19 Wrapping up with more Q&A, grandkids, and international call jokes
- 29:33 Tom’s latest investment: soccer team ownership (yes, really)
It’s a full-on Q&A Friday as Don tackles listener questions on account consolidation, fund choices, proper bond allocation, and portfolio construction. From dissecting the merits of AVGE vs. DFAW vs. VT+AVUV, to helping federal employees estimate how much to save, and even clearing up confusion about average returns—this episode is a masterclass in real-world investing for every phase of life. Whether you’re building your portfolio, nearing retirement, or just trying to clean up a financial mishmash, there’s clarity here. Oh, and snark-free math explanations, too.
- 1:36 First caller: Accumulation phase advice—Fidelity vs. AVGE vs. Vanguard
- 3:15 Follow-up: Retirement accounts, target date funds, and cleaning up a messy portfolio
- 5:06 Safe Harbor 401k rules explained
- 5:53 Deep dive into 401k fund options—why some funds may not be ideal
- 7:43 Old TSP account—combine or leave it?
- 9:34 Caller: How to start adding bonds after years of 100% stocks
- 10:43 Two strategies for shifting into bonds slowly and smartly
- 11:42 Listener from Texas asks: How is average return actually calculated?
- 12:44 Why averages are simple math, not magic
- 14:13 Caller: TSP investor wants to grow $114k to $500k in 10 years—what it’ll take
- 15:55 Fidelity Roth IRA options: AVGE vs. DFAW vs. VT + AVUV tilt
- 17:40 Pros and cons of each fund setup—risk, fees, and portfolio simplicity
Don and Tom put popular retirement rules of thumb under the microscope—testing everything from the 4% withdrawal rule to the idea of downsizing your home in retirement. With equal parts logic and skepticism, they explore whether these oft-repeated guidelines still hold up in today's financial landscape. Along the way, they touch on portfolio construction, social security timing (with Don’s real-life dilemma), and why rules are made to be... at least bent. Plus, a few listener questions round out the episode with practical portfolio advice and fund critiques.
- 0:04 Intro: Humans love rules—including rules of thumb
- 1:30 Should we ditch retirement rules altogether? Or are they helpful shortcuts?
- 3:23 Rule #1: The 4% withdrawal rule—what it gets right (and what it doesn’t)
- 5:08 Rule #2: The 80% income replacement rule—Tom hates it, and here’s why
- 7:49 Rule #3: Defer taxes with traditional IRAs—good idea or future tax trap?
- 10:02 Roth vs. traditional contributions—what young workers should do
- 10:39 Rule #4: The Rule of 110 for stock allocation—Don calls it dumb
- 12:32 Risk tolerance and personal flexibility matter more than age-based math
- 14:13 Rule #5: Wait till 70 for Social Security—Don admits he might not
- 16:38 Don's real-life dilemma: Take Social Security now or wait?
- 19:23 Rule #6: Downsizing your house in retirement—easier said than done
- 22:08 Final thoughts: Plans > rules of thumb, especially after age 50
- 23:07 Q&A: Why don’t you like Fidelity’s zero-fee funds? (Short answer: they’re not fully diversified)
- 26:50 Are they bad? No. Would we recommend them? Also no.
- 27:25 Q&A: Retirees with $4M+—how to rebalance IRAs, Roths, and taxable efficiently
This episode dives deep into the market’s latest mood swing and the potential impact of new tariffs on consumer costs—like the real price of your next iPhone. Don and Tom explain what tariffs are, how they work, and why they’re likely to fuel inflation. Plus, they tackle a range of listener questions, from the risks of fixed-income annuities and rebalancing portfolios, to why bonds (yes, still) deserve a place in your portfolio. And of course, they throw shade at both annuity commissions and self-proclaimed “legendary” market forecasters. Emotional investing? That’s the real danger.
- 0:04 Opening banter and why this has been “a heck of a money week”
- 1:01 What exactly is a tariff? And why you’re paying more than you think
- 4:29 The real cost breakdown of an iPhone—and what tariffs could do to it
- 6:58 How rising costs could slow down upgrades and hit the tech economy
- 8:11 Why economists (even at WSJ) are mostly anti-tariff
- 9:27 Listener question: Did Andrew make a mistake buying a fixed-income annuity?
- 14:47 The ethics of $45,000 commissions and what you give up with annuities
- 21:12 What if Andrew had just invested the money instead?
- 25:48 Listener challenge: Are bonds really worth it if returns lag inflation?
- 30:23 The real reason to own bonds—and it’s not about return
- 32:57 SQQQ gamble pays off—should Devin take the money and run?
- 34:35 Wrapping the week with a reminder: it’s not about guessing, it’s about planning
In this episode, Don and Tom address the market’s recent correction—without ever saying the “D-word.” They explain how global diversification cushions the blow, why balanced portfolios aren’t as battered as headlines suggest, and how reacting emotionally is the real danger. They also dive into classic investing mistakes, like stock concentration and chasing headlines, and share guidance on rebalancing thresholds. Listener questions include when to rebalance, how to strategically tap accounts in retirement, and whether it’s time to break up with Edward Jones (spoiler: it is).
- 0:04 “D-word” banter and market correction intro
- 1:24 The $5 trillion “missing” from markets—why it’s not doomsday
- 2:10 Tariffs, uncertainty, and what markets hate most
- 3:29 Year-to-date performance: S&P 500, total U.S., and global portfolios
- 4:56 Diversification works—global value stocks still positive
- 5:14 Media panic vs. reality—why not watching CNBC is a good move
- 6:11 Real portfolio check-in: diversified and down just 5%
- 7:36 What to do when the market drops—don’t panic
- 8:00 “It’s different this time”—but not really
- 9:35 Risk check: how much are you really taking?
- 10:43 Concentration risk: why individual stocks and tech are volatile
- 11:50 Tesla and Apple tank—example of why you diversify
- 13:45 Expert noise: Bill Gross vs. Ed Yardeni—ignore both
- 15:54 Market predictions: why you should tune out “legendary” investors
- 16:31 Jason Zweig’s pyramid of regret—make small, smart moves
- 18:28 Tariffs aren’t good, but they’re also not the end
- 20:19 Listener Patty asks: When should I rebalance? (5–10% rule explained)
- 25:31 Listener Karen asks: Which account should I draw from in retirement?
- 33:07 Listener Dan asks: Should I still sell stocks and buy ETFs? (Yes.)
- 35:21 Listener Frank asks: Is it time to stop trading with Edward Jones? (Absolutely.)
In this episode of Talking Real Money, Don and Tom sound the alarm on a troubling trend: more people are dipping into their 401(k)s for emergencies. While hardship withdrawals are allowed under IRS rules, they come with serious penalties, taxes, and long-term setbacks. The hosts stress the importance of building an emergency fund before maxing out retirement contributions to avoid turning your future into a piggy bank. They also respond to questions about how to find fiduciary advisors and critique a high-yield income portfolio packed with risky, expensive ETFs—offering a reality check on chasing returns without understanding the risks.
- 0:04 Retirement talk kicks off with 401(k) praise—and a warning
- 2:08 Hardship withdrawals hit record levels; 5% of participants tapped accounts
- 3:50 Emergency fund should come before heavy 401(k) contributions
- 5:25 Auto-enrollment rises, but so does temptation to pull money
- 6:06 Weigh a 401(k) loan before a withdrawal—less damage long-term
- 7:47 IRS penalty exceptions outlined—some hardship cases qualify
- 9:35 Adulting tip: build that emergency fund, even if it’s hard
- 10:57 Better to borrow elsewhere (even a credit card!) than touch your 401(k)
- 12:59 SEP IRAs great for self-employed—but require discipline to fund
- 14:17 Listener asks why they don’t mention NAPFA more—they do!
- 17:25 Listener portfolio review: lots of income ETFs, lots of risk
- 20:33 Many holdings have high expense ratios, junk bonds, or complex strategies
- 22:33 Bottom line: get a professional review—and simplify the portfolio
It’s Q&A Day on Talking Real Money, and Don tackles listener questions on everything from crypto and REITs to emergency funds and IRA contributions. He reiterates his firm stance against crypto as an investment, warns about the risks of individual REITs, and supports diversified REIT funds for long-term portfolios. Don also confirms that yes, you can contribute to a Roth for 2024 and a traditional IRA for 2025 in the same calendar year, as long as you stay within annual limits. Emergency cash? A Treasury money market fund like VUSXX is a solid place. And yes—Don really loves Chattanooga.
- 0:24 It's Q&A Day—Don wants more spoken questions
- 2:37 No love for crypto—even with a “strategic reserve”
- 4:43 Crypto isn’t investing, it’s gambling
- 5:30 REITs okay in a fund, but never buy individual REITs
- 8:10 VUSXX is a great place for emergency savings
- 10:15 Yes, you can do a 2024 Roth and 2025 IRA in same year
- 11:54 Watch out for pro-rata tax rules when backdooring Roths
In this episode of Talking Real Money, Don and Tom dive deep into the question of whether long-term investing in stocks truly guarantees returns. Challenging the conventional wisdom, they examine research by Professor Edward McQuarrie that reveals 10- and even 30-year periods in U.S. and international markets where investors lost money—especially when adjusting for inflation. Despite these sobering findings, the hosts reaffirm their belief in equity markets, emphasizing diversification and the historical outperformance of stocks over bonds. They also critique opaque, sales-driven investment products like private credit funds and annuities, urging listeners to remain skeptical, informed, and grounded in long-term strategy rather than promises of guaranteed returns.
- 0:24 David Booth says stocks average 10% long-term
- 1:20 McQuarrie: no guarantee of gains, even over 20 years
- 2:27 Long-term losses happened—inflation-adjusted
- 3:16 Diversification helps but doesn’t solve everything
- 4:08 Most individual stocks lose money—own them all
- 6:04 Stocks reward, but not guaranteed
- 11:43 Investing = optimism about the future
- 13:02 Market timing fails—psychics underperform
- 15:25 Private credit fund OCIC = high risk, low transparency
- 18:06 OCIC fees are sky-high—10%+ annually
- 19:42 Annuities explained—loss of control, high costs
- 21:53 Annuities ≠ bank CDs—know the difference
- 24:52 OCIC loaded with fees, risky loans
At Talking Real Money, we emphasize fundamental financial principles like disciplined saving, diversification, and cautious investing—highlighted this episode through insights on wealth distribution in America, noting that successful financial outcomes depend heavily on diligent saving and investing, particularly in equities, businesses, and real estate. We caution against chasing high-dividend stocks, explaining their risks and why they're often poor investment choices compared to a broadly diversified portfolio. Listener calls explored common pitfalls with annuities, especially high fees in variable annuities, reinforcing our advice on avoiding expensive financial products. We discussed efficient strategies like Roth IRAs, clarifying rules around backdoor contributions, conversions, and inherited accounts, emphasizing the importance of strategic tax planning. Ultimately, the path to financial success involves consistent saving, smart asset allocation, and avoiding high-cost investment traps.
- 1:24 Wealth distribution and how Americans build wealth
- 2:19 Discussed alarming wealth inequality statistics
- 3:27 Key to wealth-building: working, saving, and investing
- 5:20 Listener call questioning high-dividend stocks
- 6:46 Risks explained about investing in high-dividend companies
- 9:31 Clarified misconceptions about dividends and cash flow
- 11:10 Historical examples of high-dividend stock failures
- 14:21 Listener call regarding variable annuity transfer
- 16:21 Benefits of transferring from high-fee annuities
- 18:20 Humorous mix-up about hosts' identities
- 21:43 Clarification on inherited IRAs and Roth conversions
- 24:34 Discussed tax deductions for home improvements
- 25:30 Listener concerns over annuity safety and risk explained
- 30:07 Caller advised on diversifying using Vanguard ETFs
- 31:45 Listener call clarifying Roth IRA contributions and eligibility
At Talking Real Money, we’re here to reinforce core investing principles: diversify, plan carefully, and never attempt to predict market swings—a point underscored by famed hedge fund manager Ray Dalio, who advocates holding multiple uncorrelated asset classes rather than timing market downturns. Dalio warns of economic shocks comparable to past crises like the dot-com bust but emphasizes preparation, not prediction, urging investors to diversify across stocks and bonds to mitigate volatility. We explore the practicalities of bond investing, noting bond ladders as a potential strategy, though bond funds usually suffice for most investors. Additionally, we caution against market timing, highlighting that missing just a few of the market’s best days over decades could dramatically reduce returns. Ultimately, successful investing relies on consistent strategy and prudent allocation—not reactionary moves based on fear or speculative predictions.
- 1:58 Dimensional Funds documentary discussion
- 2:38 Hedge fund manager Ray Dalio’s predictions and strategy
- 3:58 Dalio emphasizes asset diversification
- 5:48 Comparing podcast viewership and popularity
- 8:05 Critique of leveraged ETFs and annuities
- 11:10 Preparation beats market timing
- 14:57 Bond ladders vs. bond funds explained
- 19:06 Bond market volatility in downturns
- 21:45 Listener question on tax-efficient bond investing
- 26:58 Dangers of market timing highlighted
- 31:18 Clarifying listener confusion about RMDs
- 35:27 Advice on state-specific tax consultation
At Talking Real Money, we consistently emphasize that investing requires diversification, low costs, planning, and acknowledgment that predicting the future is impossible—a lesson humorously highlighted by the saga of Argentina's 100-year bond. Originally mocked after Argentina defaulted in 2020, this bond, offering an initially enticing 7.9% yield, remarkably bounced back following political reforms under Javier Milei, outperforming both U.S. Treasuries and Austria's similar bond, which lost around 80% of its value. This underscores that obvious, high-risk investments can sometimes yield surprising returns, but also emphasizes that bonds, even seemingly safe ones, can exhibit volatility akin to stocks, as evidenced by the 30% drop in U.S. Treasuries in 2022. For retirement portfolios, bonds should primarily provide stability, not speculative gains, and investors must carefully manage strategies such as required minimum distributions (RMDs), transferring old plans into current employer plans to strategically delay taxes. Ultimately, market unpredictability reinforces our fundamental belief that the future remains uncertain for investors and pundits alike.
- 1:40 Argentina's 100-Year Bond
- 2:19 Comparing Bonds: Argentina vs. Austria
- 3:46 The Risks of Long-Term Bonds
- 5:05 Lessons from Argentina's Bond
- 7:16 Rethinking Fixed Income Strategy
- 9:12 Future Predictions on Bonds
- 11:11 Listener Questions Begin
- 12:10 Understanding RMDs for 403Bs
- 14:54 The Debate Over Financial Advisors
- 15:59 Comparing Investment Strategies
On this Friday's episode of Talking Real Money, Don McDonald continued his weekly tradition of answering listener questions, covering practical financial concerns in a straightforward and engaging way. He tackled questions ranging from understanding bid-ask spreads when purchasing ETFs, to choosing the best short-term investment options, such as high-yield savings, CDs, and money market funds. Don also clarified the subtle differences between various Vanguard money market funds, providing guidance on picking the right option based on security and yield. Additionally, he discussed managing retirement withdrawals effectively, particularly addressing conservative strategies for individuals close to retirement who want to protect their principal. Throughout the episode, Don emphasized the importance of balancing risk and returns, maintaining discipline, and using diversified, low-cost investment strategies to manage finances sensibly.
- 1:23 Understanding Bid-Ask Spreads
- 6:25 Short-Term Investment Strategies
- 9:59 Choosing the Right Money Market Fund
- 13:37 Political Discussions on Social Security
- 17:10 Managing Retirement Withdrawals
On today's Talking Real Money, Don McDonald welcomed two special guests from Dimensional Fund Advisors (DFA)—founder David Booth and co-CEO Dave Butler—to discuss their unique investment philosophy and the importance of tuning out financial noise. The conversation centered around DFA's documentary, "Tune Out the Noise," which emphasizes an academically-based investment strategy focused on sensible, disciplined investing rather than market timing and stock picking. Don and his guests explained the distinct difference between DFA's approach and traditional active or passive investing, highlighting DFA's strategy of combining the strengths of indexing with flexible, thoughtful trading to enhance returns. They also discussed how the rise of ETFs and technological advancements are reshaping the investment industry, making it easier for investors to access diversified, low-cost portfolios. Finally, the episode stressed the critical importance of managing emotional reactions to market volatility, reinforcing the value of staying disciplined and diversified to achieve long-term investment success.
- 2:34 Tune Out the Noise Documentary
- 4:23 Dimensional's Unique Investment Philosophy
- 7:31 Adding Value Over Indexing
- 8:20 Early Challenges and Data Evidence
- 11:25 The Role of Nobel Laureates
- 15:24 Active vs. Passive Investing
- 19:04 The Future of Active Management
- 23:32 Evolution of the Mutual Fund Industry
- 26:02 Technology's Impact on Investing
- 28:28 Behavioral Aspects of Investing
- 30:47 The Rise of ETFs
- 32:37 The Trust Factor in Finance
- 35:22 Tuning Out the Noise
On today's Talking Real Money, Don and Tom dug deep into some surprisingly terrible mutual funds—those wealth destroyers that somehow manage to lose investors piles of money year after year. They highlighted the infamous ARK funds, which collectively burned through billions, and even exposed a Fidelity long-term treasury bond index fund that unexpectedly landed among the biggest losers over the past decade, illustrating precisely why they've been cautioning against holding long-term bonds. Alongside their usual listener Q&A, they shared practical tips on safely managing cash between high-yield savings and money market accounts and clarified how much cash to keep handy in checking. Politics briefly entered the scene, sparking a discussion on managing risks amid increasing national debt—spoiler alert: don't panic; stick to a disciplined, diversified plan. Finally, they praised a savvy grandmother setting up Roth IRAs for her granddaughters, reaffirming their belief that a simple, globally diversified fund like AVGE can help secure financial futures with minimal fuss.
- 1:20 The Reality of Mutual Funds
- 2:38 Understanding Value-Destroying Funds
- 4:17 The Importance of Avoiding Bad Investments
- 7:35 Long-Term Treasury Bonds: A Cautionary Tale
- 10:02 Choosing the Right Savings Account
- 13:32 Managing Your Checking Account Balance
- 16:09 Navigating High-Yield Accounts
- 17:48 Retirement Planning and TSP Allocation
- 22:04 Inheriting Wealth: A Financial Strategy
- 23:14 The Need for a Financial Plan
- 24:45 Managing Risks in a Political Landscape
- 28:36 Grandparenting with a Roth IRA
- 30:52 Investing for the Next Generation
- 34:17 Evaluating a Cross-Border Portfolio
Hosts Don McDonald and Tom Cock discuss timely market volatility, emphasizing the importance of maintaining diversified global portfolios rather than reacting to short-term market shifts. They address listener concerns, including the complexities of decumulation in retirement and the critical value of seeking personalized financial planning from fiduciary advisors, particularly during life's transitions. Using real-life scenarios, they illustrate how seemingly minor financial decisions, like the timing of Social Security, can have significant long-term impacts, reinforcing the necessity of detailed, personalized advice. They underscore the challenge of finding genuine fiduciary advisors amidst misleading industry claims and encourage listeners to rigorously verify advisor credentials and fiduciary status.
- 0:34 Introduction to Timely Financial Discussions
- 4:44 Market Sentiment and Performance Analysis
- 7:41 Listener Call: Financial Concerns
- 12:00 Navigating Taxes and Annuities
- 14:57 Personalized Financial Planning Importance
- 17:46 The Challenge of Finding Good Advisors
- 19:04 Fiduciary Responsibilities and Advisor Selection
- 24:50 Decumulation Strategies for Retirement
- 33:01 The Value of Professional Financial Guidance
Hosts Don McDonald and Tom Cock emphasize the critical importance of hiring a fiduciary financial advisor, legally required to act in your best interests and transparently disclose conflicts of interest, such as fees and commissions. They caution listeners against advisors who misleadingly claim fiduciary status and advise verifying credentials through reliable resources like FINRA's BrokerCheck. By reviewing documents like Form ADV Part 2, investors can clearly identify conflicts of interest and fee structures. Highlighting examples from Ameriprise Financial and Appella Wealth, they illustrate the contrast between firms with extensive conflicts and those genuinely fiduciary-focused. The hosts underscore maintaining diversified, low-cost portfolios and avoiding market timing. They encourage investors to utilize available educational resources and thorough advisor vetting to secure their financial well-being.
- 0:32 Introduction to Fiduciary Responsibility
- 2:11 Finding a Fiduciary Financial Advisor
- 6:39 Verifying Advisor Credentials
- 8:39 Researching Financial Firms
- 11:23 Understanding Fees and Compensation
- 13:23 Conflicts of Interest Explained
- 16:43 Importance of Due Diligence
- 21:39 Listener Questions on Investment Strategies
It’s Friday, and you know what that means — Q&A day! We tackled five great listener questions, starting with a deep dive into why that seemingly “safe” $71,000 annuity actually shortchanges you compared to a basic 4% Treasury ladder or a modest balanced portfolio. Then we crunched the numbers on HSAs and proved that investing the tax savings can indeed leave you ahead — despite what your accountant might say. Municipal bonds made an appearance, too, as we broke down the breakeven math for different tax brackets. A retiree asked whether to realize capital gains or convert to a Roth — and spoiler alert: his instincts were spot-on. Finally, we wrapped with a listener concerned about owning small-cap value in retirement, and we emphasized the importance of building a balanced portfolio, not just collecting investments from headlines.
- 1:02 Annuities Explained
- 6:10 HSA Insights and Strategies
- 7:01 Understanding Municipal Bonds
- 10:20 Tax Strategies for Retirees
- 16:26 Addressing Portfolio Overhaul Concerns
Imagine a world where investment firms actually worked in your best interest and financial regulators had your back—yeah, keep dreaming. The reality is getting worse, not better. The latest proof? A flood of sketchy "investment opportunities" dressed up as safe and innovative. Take the new PRIV ETF, which claims to focus on "investment grade" private credit—except 95% of its holdings are junk-rated. Or BlackRock sneaking Bitcoin into its model portfolios, giving investors exposure to one of the most volatile assets around without them even realizing it. And, of course, the structured finance industry is partying like it's 2006, bundling up risky loans and convincing investors they’re solid bets. The lesson? You cannot rely on regulators, Wall Street, or even common sense prevailing. You need a real investment strategy—not a collection of ideas—and a healthy dose of skepticism. Because if it sounds too good to be true, it is.
- 0:11 A Sensible Investment World
- 1:51 The Rise of Risky Funds
- 3:50 Bitcoin in Portfolios
- 5:45 The Return of Old Schemes
- 7:18 The Investor's Responsibility
- 9:45 The Importance of Strategy
- 12:13 Listener Questions Begin
- 14:22 ETFs vs. Mutual Funds
- 16:26 Bonds in 401k vs. Taxable Accounts
Another day, another batch of money myths to bust. In this episode of Talking Real Money, Tom and Don take a sledgehammer to the idea that becoming a millionaire requires some kind of magical stock picking, insane work hours, or pure dumb luck. Spoiler: It’s mostly about spending less than you make, investing consistently, and avoiding financial landmines (like high-interest debt). A listener asks whether bonds are still the best diversifier in a portfolio, which leads to a deep dive into why no investment is a perfect hedge against stocks—despite what the Wall Street wizards want you to believe. Fidelity gets a well-deserved roasting for pushing annuities inside IRAs (seriously, why?). And for those considering Tesla stock or any other hot-shot investment, let’s just say: strap in, because that rollercoaster is a wild one. Along the way, they take on listener questions, reminisce about financial talk radio, and remind everyone that no one—NO ONE—can predict the future, no matter how much they charge for their “insight.”
- 0:41 - Debunking millionaire myths: It’s not about luck, Amazon IPOs, or working 80-hour weeks.
- 1:45 - The Millionaire Next Door and the modern rise in millionaires (2020–2023).
- 2:48 - The top millionaire habits: underspending, steady investing, and avoiding debt.
- 3:13 - Don’t ignore “free money” (employer 401k match) as part of your wealth strategy.
- 3:36 - Understanding risk-adjusted investments (not market trends or headlines).
- 4:12 - The dangers of high-interest credit card debt (current rates around 20%).
- 9:19 - Listener question: Are there better alternatives to bonds in a portfolio?
- 11:52 - The myth of negative correlation: Bonds don’t always move opposite to stocks.
- 14:30 - Real estate, commodities, private credit—are they good alternatives? (Mostly no.)
- 17:37 - Why hedge funds fail at providing a true alternative investment strategy.
- 18:24 - Listener question: Should an annuity be inside an IRA? (No, and beware of sales tactics.)
- 20:06 - A listener asks about tools to analyze asset allocation across different accounts.
- 23:32 - A caller asks about his mom’s annuity; Fidelity gets called out for bad advice.
- 28:08 - The risks of annuities vs. safer alternatives like CDs.
- 31:41 - Listener question: Should I invest my cash-back rewards in Tesla or AVGE? (Tesla is a rollercoaster.)
- 34:29 - Individual stock risk: Why even major companies (like Walgreens) can collapse.
- 37:36 - Nostalgic discussion about financial talk radio, Bob Brinker, and Financial Fysics.
In this episode of "Talking Real Money," hosts Don McDonald and Tom Cock address recent market volatility, emphasizing that despite headlines about markets "nosedives," the S&P 500 is still up 10% over the past year and only down 4.4% year-to-date, while globally diversified portfolios have fared even better with minimal losses. They criticize alarming financial media headlines that cause investor panic and warn that emotional reactions to market fluctuations are more damaging to portfolios than market corrections themselves, which historically last about 100 days. The hosts field caller questions about retirement account allocation strategies, including keeping bonds in traditional IRAs while holding stocks in Roth IRAs to maximize tax advantages, and explain investment terminology such as large/mid/small cap classifications and value versus growth distinctions. They also address Dave Ramsey's claim that investing $100 monthly from ages 25-65 would create a millionaire, calculating that with a 10% return it would yield about $637,000, though Ramsey likely assumes a 12% return based on the American Funds Investment Company of America's historical performance, which they argue sets unrealistic expectations for future investors.
- 0:04 Market reactions and recent trends - S&P 500 up 10% over past year despite media negativity
- 2:50 Baby Boomers and market concerns - critique of alarmist headlines about retirement portfolios
- 5:05 Investing strategies for volatile markets - importance of discipline and avoiding emotional reactions
- 6:14 Understanding portfolio allocation - caller question about bonds in Roth vs. traditional IRAs
- 10:15 Dave Ramsey's $100/month millionaire claim - analysis of investment return calculations
- 19:44 Importance of risk tolerance - historical performance of American Funds with significant downturns
- 23:31 Evaluating old retirement plans - advice on moving a $45,000 government retirement account to an IRA
- 26:22 Investment terminology explained - definitions of large/mid/small cap, growth vs. value stocks
- 32:59 Understanding bond investments - short-term (under 3 years), intermediate (4-10 years), and long-term (10+ years)
- 35:28 Engaging with financial education - information about speaking engagements and consultation opportunities
In this episode of "Talking Real Money," hosts Don McDonald and Tom Cock discuss generational investing habits, highlighting concerning trends among Gen Z investors who start investing at age 19 but often engage in high-risk behaviors like options trading (36%), cryptocurrency (42% of males), and margin trading (25%). Unlike Baby Boomers who typically began investing at age 35, Gen Z relies heavily on questionable financial advice from social media "fin-fluencers," with approximately half using platforms like TikTok for investing guidance. The hosts worry these gambling-like behaviors could lead to devastating losses and eventual disillusionment with investing altogether, contrasting this approach with their recommended strategy of long-term, diversified investing in index funds like Vanguard Total World Stock Index. The episode also addresses listener questions about optimal places for liquid savings and strategies to manage retirement income to avoid IRMAA Medicare surcharges, emphasizing the importance of tax planning in retirement.
- 0:04 Generational wealth distribution and control among Baby Boomers
- 2:06 Investment start ages across generations (Baby Boomers: 35, Gen X: 32, Millennials: 25, Gen Z: 19)
- 3:56 Concerning investment behaviors of Gen Z - options trading (36%), cryptocurrency (42%), and margin trading (25%)
- 7:23 Risks of relying on social media for financial advice and the problems with "fin-fluencers"
- 9:38 Long-term index fund investing versus short-term gambling approaches
- 14:39 Listener question: Where to keep liquid funds in today's interest rate environment
- 16:02 IRMAA (Medicare surcharges) planning and tax-efficient retirement withdrawal strategies
- 19:39 RetireMeet 2025 resources and financial advisory services
It's another Friday Q&A:
- 1:38 Inherited IRAs Explained
- 3:34 Understanding Short-Term Bond Funds
- 5:35 Tax Implications on Dividends
- 6:40 The Role of Mid-Cap Investments
- 8:43 Withdrawal Strategies in Retirement
In this episode, Tom and Don explore retail investors' behaviors influenced by users of platforms like Wall Street Bets, highlighting the risks faced by inexperienced traders in high-stakes options trading. We discuss poor investment habits driven by overconfidence, the gambler's fallacy, and behavioral finance pitfalls such as confirmation bias. We reiterate the importance of diversification and long-term strategies over trend-following. Then, we address listener questions on retirement planning and fiduciary advice.
- 3:08 The Gambler's Fallacy
- 7:01 Confirmation Bias in Investing
- 13:27 Understanding Risk in Investing
- 16:11 Listener Questions and Answers
- 21:02 Retirement Planning Strategies
In today's episode:
- 0:32 American Dream of Home Ownership
- 3:36 Renting vs. Owning
- 7:40 The True Cost of Homeownership
- 12:22 Real Estate as an Investment
- 14:57 Inheriting Retirement Savings
- 16:20 Questions from Listeners
- 18:57 Building Wealth Sensibly
To start a new week:
- 0:27 Safe Investments Unveiled
- 1:16 Meme Stocks and Market Risks
- 3:18 The Fragility of Commercial Real Estate
- 5:27 The Illusion of AAA Ratings
- 7:52 Investing Beyond the Illusion of Safety
- 11:32 The Dangers of Chasing Yield
- 12:41 Financial Planning vs. Target Date Funds
Questions answered about:
- 3:58 Retirement Contributions and Strategies
- 6:18 Selling the Airstream: A Personal Update
- 7:53 Roth IRA Questions Answered
- 11:12 Trusts and Estate Planning
- 14:42 Complex vs. Simple Investment Strategies
In this podcast:
- 0:04 Remembering Bob Brinker
- 2:17 Hot Investments Today
- 7:32 Thematic Investing Challenges
- 8:22 Timing the Market Dilemma
- 12:18 The Dollar's Future
- 14:40 AJ's Financial Questions
- 20:24 Looking Ahead to Retirement
In today's edition:
- 1:05 Misleading Money Media
- 2:47 Who Needs Life Insurance?
- 9:40 Annuity Sales Grew
- 11:03 Move to a TAP Annuity?
- 19:31 How Long Will You Live?
- 25:22 Buy Bitcoin to Afford a Home?
- 35:17 Small Cap Annual Returns
In today's show:
- 0:01 The Federal Reserve's Role
- 5:06 Interest Rates and Their Impact
- 9:33 The Confusion of Rate Cuts
- 14:16 The Risks of Market Timing
- 15:34 The Danger of Misinformation
- 20:53 Meme Stocks and Their Longevity
- 25:11 Understanding Palantir
- 27:06 Social Security Decisions
- 33:34 The Importance of a Financial Plan
In this episode:
- 2:44 The Rise of Investment Funds
- 6:17 The Dangers of Single Stock ETFs
- 14:07 Understanding 1031 Exchanges
- 20:39 Engaging with Our Audience
- 22:12 The Debate on Active Bond Management
- 27:03 The Challenges of Active Fund Management
- 35:55 Navigating the Market Landscape
In this exciting edition:
- 0:03 Introduction to Financial Normalcy
- 3:50 The Retirement Worry
- 6:28 The Gray Area of Investing
- 13:23 The Importance of a Financial Plan
- 21:03 Portfolio Questions and Strategies
In this Q&Apisode:
- 0:04 Stock Market Insights
- 3:05 Questions from Listeners
- 3:31 International Investment Concerns
- 8:45 Portfolio Housekeeping
- 11:53 Charitable Distributions Explained
- 14:35 401(k) Allocation Strategies
Today, we discuss:
- 5:34 The Case Against the Penny
- 7:12 Daylight Savings Time Debate
- 8:27 Worthless Financial Instruments
- 11:24 The Cryptocurrency Conundrum
- 13:14 Rollover Strategies Explained
- 23:00 The Weirdness of Today’s World
In this episode:
- 1:54 Election Investing and Other Gambling
- 6:40 Understanding Financial Futures
- 14:32 Navigating Roth IRA Withdrawals
- 20:16 The Importance of Financial Planning
- 26:53 Pay Yourself First
- 28:57 Target Date Funds Explained
- 38:25 Transitioning to Vanguard
In this episode:
- 1:29 The High Price of High Dividends
- 18:35 The Importance of Staying Invested
- 21:04 Market Fluctuations and Trading
- 29:08 Understanding Asset Allocation
- 31:56 The Value of Asset Location
- 35:39 Rebalancing for a Better Portfolio
To start the week we tackle:
- 0:03 Election Biases and Money
- 2:17 Overcoming Recency Bias
- 3:34 Strategies Against Bias
- 6:42 Understanding Market Cycles
- 11:22 International Investment Options
- 13:30 Listener Questions and Insights
In the shortest Friday Q&A show ever:
- 2:20 Retirement Lump Sum Concerns
- 4:28 Transitioning Investment Accounts
- 6:58 Disclaimers and Financial Advice
In this episode we discuss:
- 3:17 The Illusion of High Returns
- 6:23 The Importance of Second Opinions
- 20:42 Charitable Giving Strategies
- 24:04 Transitioning from Real Estate
- 27:20 Tackling Hodgepodge-itis
- 35:25 The Role of Financial Planning
In this episode,
- We explore the tip request explosion in America.
- We discuss the stock markets' recent performance.
- A caller shares his thoughts on retirement.
- How should twenty-somethings invest for retirement?
Topics of today's questions:
- 2:14 Long-Term Care Insurance Insights
- 14:51 Evaluating ETFs for Downside Protection
- 18:25 Managing Debt with HELOC Strategies
- 23:36 Portfolio Management for Retirement
This edition's discussion:
- 3:08 The Importance of Rebalancing
- 6:40 Understanding Risk and Volatility
- 12:13 Inherited Wealth Decisions
- 15:29 Comparing Exchange-Traded Funds
- 20:05 The Future of Investments
In this episode:
- 1:36 Creative Fear-Mongering Editing
- 11:28 Fund Recommendations and Confusion
- 14:30 Clarifying Financial Advice
- 20:36 Investment Education for Young People
- 21:06 Personal Finance Adventures
- 26:04 The Luck of Investing
- 27:08 Understanding Hodgepodge-itis
- 36:04 Navigating Complex Investments
In this episode:
- 0:04 Financial Exorcism
- 5:09 Index Fund Realities
- 15:03 Understanding Market Behavior
- 21:22 Navigating Retirement Challenges
- 23:30 Managing Unexpected Wealth
- 28:20 Lazy Portfolio Strategies
- 34:17 Healthcare Solutions for Early Retirees
- 40:52 Behavioral Investing Insights
In this special Q&A episode:
- 5:52 Listener Questions Begin
- 7:53 Paying Off Debt vs. Investing
- 8:43 Retirement Savings Strategies
- 10:21 Employee Stock Purchase Plans
- 14:37 Risk Management in Retirement
- 16:10 Finding Purpose in Retirement
- 16:33 Building a New Home
- 22:22 Financing vs. IRA Withdrawals
- 23:50 HSA vs. Roth Contributions
In this episode:
- 2:35 The Bond Debate
- 5:07 Alternatives to Bonds
- 6:47 Evaluating Long-Term Investment Options
- 9:56 Listener Questions Begin
- 16:39 Financial Decisions and Strategies
As Don was actually vacationing, here is last Friday's episode a few days late:
- 4:06 SIPC Insurance Explained
- 6:43 Fiduciary Duty and Insurance Companies
- 8:23 IRA vs. 401k Protection
- 10:23 Seeking Source Material
- 14:17 Finding the Podcast
- 16:36 Connecting with Advisors
As Don was actually vacationing, here is last Thursday's episode a few days late:
- 1:03 The Money Talk Dilemma
- 1:45 Power Dynamics in Financial Discussions
- 2:01 Evolving Perspectives on Money Talks
- 3:08 Historical Context of Money Discussions
- 4:14 Maintaining Financial Independence
- 5:05 Joint or Separate Bank Accounts?
- 6:04 Initiating Money Conversations
- 7:13 Frequency of Money Talks
- 8:00 Long-Term Financial Planning
- 10:07 Dealing with Fixed Incomes in Retirement
- 11:03 Setting Financial Approval Limits
- 11:35 Seeking Professional Financial Guidance
- 12:49 Psychological Impact of Financial Control
- 14:08 Pitfalls of Structured Notes
- 17:28 Maximizing Saving Opportunities
- 18:06 Legal Recourse for Mismanaged Investments
- 20:25 Seeking Financial Assistance
In another traveling episode, we discuss:
- 1:01 Retirement Savings Importance
- 2:10 Court Ruling Impact
- 3:59 Common Retirement Mistakes
- 6:25 Failing to Maximize 401k Benefits
- 8:19 Borrowing from 401k Risks
- 10:12 The Importance of Asset Allocation
- 11:17 Traditional vs. Roth 401k Considerations
- 13:44 Financial Planning Importance
- 14:33 Variable Annuities Dilemma
- 17:33 Equities in Short-Term Portfolios
Don joins Tom from a dairy farm in Elk, Washington to explore the history and structure of closed-end funds. They discuss a recent fund by Bill Ackman, highlighting high fees compared to ETFs. Listeners seek advice on simplifying their portfolios with recommended funds like AVUV, AVGE, and VT. Don and Tom suggest allocation strategies based on risk tolerance and financial goals, stressing the importance of comprehensive planning with varied income sources. The conversation shifts to retirement planning, emphasizing the need for long-term strategies considering life expectancy and financial dynamics for couples. Don addresses differences in retirement perceptions between genders. The episode wraps up with Tom’s corny cow-themed jokes.
Don's taking your questions as he sits in Montana for a moment:
- 2:51 Simplifying Investment Management
- 10:49 Choosing the Right Bonds
- 13:14 Tax Implications of Selling Property
- 16:55 Establishing a Trust for Inheritance
- 17:52 Lump Sum vs. Monthly IRA Contributions
As Don continues to traverse the country, he and Tom talk about:
- 0:04 Nearing Normalcy
- 2:21 Special Investments Not So Special
- 4:11 The Top 10 Investments
- 4:53 Investing in Crypto
- 7:39 Trouble with Special Investments
- 11:15 Fees and Higher Costs
- 12:47 Ignoring Risky Investments
- 16:42 Career Change Advice
In this episode, Don is dealing from Deadwood, South Dakota:
- 2:05 Answering Money Questions on the Move
- 11:48 Investing Dilemma: What to Do with $50,000?
- 15:13 Overcoming Hodgepodge-itis
- 20:13 Annuitizing Annuities: A Dubious Deal
- 26:21 The Risks of Annuities and Index Funds
- 35:09 Dangers of Misguided Advisor Recommendations
- 37:17 Red Flags in Investment Advice
Don keeps traveling west as we discuss:
- 2:11 Change in Location, Change in Discussion
- 3:19 Fallacies of the Past
- 4:22 Social Security Beliefs
- 6:31 Misconceptions about Equity Returns
- 9:10 Misconceptions about Indexing
- 12:06 The Persistence of Myths
- 18:45 Complexity vs. Simplicity
- 29:23 Home Team Bias
- 35:25 Cicadas and Misunderstandings
- 37:46 Gracious Midwest Visitors
Tom meets Don and listeners in Madison, Wisconsin:
- 0:35 Welcome to Talking Real Money live from Goodland Park
- 8:19 The insurance industry's challenge with transparency
- 12:34 The importance of recognizing ethical financial advisors
- 24:19 The importance of financial literacy for investing
- 31:26 Making informed decisions about high-interest savings accounts
- 36:13 Wrapping up the show in Madison, Wisconsin
Tom meets Don on the road trip in a park in Madison, Wisconsin:
- 0:04 The Corn Chronicles
- 1:33 Ethanol Insights
- 5:31 Financial Decisions
- 7:32 Risky Yields
- 10:44 Insurance Insights
- 13:06 Too Good to Be True
- 17:00 Retirement Dilemma
- 25:05 Portfolio Simplification
In this Q&A session:
- 0:07 Die with Zero concept and spending for experiences
- 1:37 Audience member's humorous desire for a bounced check
- 9:22 Bill Perkins' extravagant birthday celebration and giving away wealth
- 11:19 Importance of enjoying life and family experiences
- 13:53 Valuable life lessons and considerations on money management
- 17:22 Avoiding risky investments when saving for short-term goals
- 18:36 Precautions and considerations for Roth conversions
- 20:25 Impact of Roth conversions on Social Security and taxation
In this Q&Apisode:
- 0:04 On the Road Again
- 5:24 Planning for Retirement
- 8:58 Handling Inherited Accounts
- 13:08 Maximizing Retirement Savings
- 14:24 Balancing Investment Focus
- 18:48 Role of Real Estate in Portfolio
Another episode on the road:
- 0:03 Bad Year for Stock Pickers
- 3:24 Property Value and Lease Analysis
- 4:35 Triple Net Lease Concerns
- 5:19 Seeking a Second Opinion
- 5:31 Fiduciary Advisors at Apella
- 6:18 Creating a Bright Financial Future
- 13:17 Starting a Retirement Plan
- 15:02 Retirement Planning for Contractors
- 25:24 Reality Radio and Index Funds
- 27:03 Treating Hodgepodge-itis
- 28:44 Retirement Planning for Special Needs Children
- 37:27 Diversification with Vanguard
In this Q&A episode:
- 1:49 The Dangers of Following Market Trends
- 4:27 Making Decisions Based on Future Feelings
- 4:58 Investing for Yourself, Not the World
- 5:19 Welcoming Roxy Butner to the Studio
- 5:31 Question from Jane about Robo-Advisors
- 10:24 Estate Planning and Trusts
- 13:35 Exploring Annuities in Retirement Accounts
- 18:25 Retirement Planning with Thomas from New Jersey
- 25:39 Importance of Financial Planning in Retirement
Another exciting episode from the mountains of North Carolina:
- 0:03 Introduction to the Journey
- 2:40 Looking for exciting investments?
- 7:45 Importance of Seeking Second Opinions
- 9:23 Retirement Planning and Investment Allocation
- 11:05 Sustainable Withdrawal Rate in Retirement
- 21:43 Investing Should Be Boring
- 24:32 Discussion on Avoiding Capital Gains Taxes
- 28:09 Seeking Treatment for Hodgepodge-itis
- 34:22 Push for Consumer-Centric Financial Industry
- 38:25 Challenging Live Show Amidst Rainstorm
Here's the first true "On the Road" edition:
- 0:04 On the Road Woes
- 4:09 Temptation of the S&P 500
- 13:25 Technical Challenges Resolved
- 14:24 The Dumb Duo of Investing
- 14:56 Investment Horrors Unveiled
- 15:33 Real Estate Syndicates Warnings
- 25:22 Portfolio Purpose Planning
- 29:46 Avoiding High Fee Traps
- 34:18 Great American Road Trip Ahead
Join Don and Joe Saul-Sehy from Stacking Benjamins as they discuss:
- 0:04 The Secret Coup
- 1:27 Stacking Benjamins
- 3:07 The FIRE Movement
- 9:18 Work and More
- 12:22 Retirement Realities
- 14:56 Retirement Reimagined
- 17:39 The Power of Need
- 19:05 Unveiling the Box
- 21:53 Understanding Complexity
- 25:03 Analyzing ETF BOXX
- 26:25 The Greatest Money Show on Earth
Don is on the road, so Friday's Q&A is a bit late:
- 1:28 Maximizing Financial Aid Strategy
- 4:06 Investing in Individual Stocks
- 7:49 Converting 401k to IRA
- 11:37 Creating a Glide Path
In this episode:
- 1:34 Don's Dumb Duo
- 5:23 Get a Second Opinion
- 8:40 The Value of Gold
- 11:43 Financial Planning Challenges
- 14:55 Roth Conversions Advice
- 16:57 Schwab and Fidelity Comparison
- 19:50 Clarification on Bond Holdings
- 22:06 After-Tax Contributions in 401k
- 29:46 Disagreement on Alternative Investments
- 33:56 Caution on Private Credit Investments
- 37:08 Risks of Alternative Investments
In today's show:
- 0:04 Slipping into the Matrix
- 5:01 The Fascination with Market Capitalization
- 9:45 The Importance of Diversification
- 13:14 Understanding Pension Plan Options
- 16:59 Annuities vs. IRAs: Which is Better?
- 19:16 Opportunities for Financial Guidance
In this Question and Answer Episode:
- 0:04 The Gold Rush: Physical vs. Financial
- 1:18 The Speculation of Gold
- 3:05 Investing Insights: Stocks vs. Gold
- 4:36 Q&A with Roxy Butner
- 5:06 Roth IRA Dilemma: Lump Sum or Dollar Cost Average?
- 8:06 Portfolio Makeover: Fund Reallocation
- 11:17 Retirement Planning: Managing 403b and 401k Funds
- 14:45 Understanding Fund Gains: Net vs. Gross
- 16:41 Financial Evolution: Trends in Investor Questions
- 18:23 Special Announcement: Retirement Reprise Event
In this show we discuss:
- 1:12 Parents' Influence on Money Behavior
- 2:22 Impact of Childhood Money Habits
- 9:45 Retirement Dilemma Discussion
- 13:45 Tax Planning Considerations
- 17:00 Managing Real Estate Assets
- 20:49 Annuity Evaluation Guidance
- 24:46 Selecting Investment Funds in 401k
- 29:08 Annuity Liquidation Tax Implications
- 32:01 Annuity Sales Pitch Awareness
- 35:30 Indexed Annuities Podcasts Overview
In this podcast:
- 0:04 Retirement Reflections
- 21:06 Stock Inclusion Dilemma
- 22:27 Managing Stock Movements
- 25:06 Value of Free Financial Help
In this episode:
- 0:04 The Problem with Dave Ramsey's mutual fund advice
- 5:14 Importance of Second Opinions in Investing
- 11:21 Retirement Income Strategy and Dividend Reinvestment
- 16:07 Creating Income in Retirement
- 21:00 Financial Advice and Misinformation
- 27:15 Overcoming "Hodgepodge-itis" in Investment Portfolios
- 31:26 Comparison of Actively Managed and Index Funds
- 36:57 Caller Plays Back Seat Quarterback
When it comes to money, we make a lot of investing mistakes. Today, we talk about:
- 3:30 The Seven Deadly Sins of Wealth Management
- 14:59 Seeking a Second Opinion
- 21:05 Not Making Cash the King & Letting Dollars Be Lazy
- 22:50 The Purpose of Risk in Investing
- 32:42 Investing as a Means, Not an End
- 37:24 Importance of Guidance in the Decumulation Phase
- 38:43 Stop Dreaming, Start Doing
Topics in the episode:
- 2:02 The Dow Jones Industrial Average
- 5:23 Financial Second Opinions
- 10:35 Roth Conversions and Financial Planning
- 13:45 Trusting Financial Data
- 16:43 Financial Phone-In Questions
- 19:11 Vanguard Advisory Service Review
- 21:01 Managing Inherited IRAs
- 26:28 Diagnosis: Hodgepodge-itis
- 27:35 Importance of Financial Planning
- 33:09 Handling Unexpected Fees
- 37:59 Talking Real Money Road Trip
Today we discuss:
1:00 Money and Happiness
5:31 Second Opinions
12:50 Microphone Woes
27:04 Hodgepodgeitis
37:04 Retirement Account Diversification
Here's what in this episode:
1:02 Understanding the Psychology of Money
2:32 Rethinking Financial Advisor Terminology
3:27 Rise of Financial Therapy Certification
4:17 Impact of Money on Mental Health
7:17 Overcoming Financial Anxiety
10:58 Addressing Financial Concerns & Ideas
14:09 Tips for Managing Investment Emotions
19:27 The Purpose of Life Insurance
20:59 Adjusting Investment Allocation in 401k
In this week's Friday Q&A:
- 1:52 ETF Purchasing Best Practices
- 2:53 Avoid Overthinking and Minutiae
- 5:37 Making Financial Decisions and Pension Options
- 7:51 Investing Strategy and Career Reset
- 11:24 Comfort in Financial Decisions
- 14:45 Long-Term Saving for Family
- 17:16 Importance of Financial Planning
- 18:53 Pension Drawing Decision
In this episode, recorded on Saturday May 22:
- 0:04 Pre-Memorial Day Weekend Banter
- 4:00 Focus on Investing Mistakes with Christine Benz
- 4:54 Portfolio Building and Managing Mistakes
- 18:30 Being Patient vs. Hands-Off Investing
- 34:40 Discussing American Funds and Expense Ratios
In this episodes, Don answers listeners questions about:
- 3:15 Seeking a Fee-Only Fiduciary Advisor for Aging Parents
- 6:24 Uncovering Red Flags in Financial Advisor Disclosures
- 11:44 Evaluating the Dodge & Cox Income X Bond Fund
- 12:46 Importance of Reading Form ADVs for Investment Advisory Firms
- 18:17 The Aftermath of Removing Social Security
- 19:11 Understanding Mutual Fund Return Reports
- 21:24 Replacing Vanguard Bond Fund BND with Risky Alternatives
Can a fiduciary fee-only advisor make you more money, even after expenses. Vanguard says, "yes!" We talk about some of their findings and more:
- 3:53 Cost-Effective Implementation and Rebalancing
- 6:20 Financial Future and Advisor Second Opinions
- 7:16 Asset Location and Withdrawal Strategies
- 9:00 Hodgepodge-itis and Portfolio Simplification
- 11:57 The Vanguard Experience
- 14:30 The Importance of Seeking Advice Early
- 20:14 Backdoor Roth IRA Strategies
- 26:15 Hodgepodge-itis Treatment and Financial Future
- 28:57 Morningstar Ratings Debunked
- 31:51 Roth Conversions and Considerations
- 35:10 Evaluating Investment Fees at Wells Fargo
- 36:31 Simplifying Portfolios with TSP
In this episode:
- 0.54 America's Obsession with New Media and Gurus
- 1:55 The GameStop Saga Begins
- 2:43 Reddit's Influence on GameStop Stock
- 3:33 Lessons from the GameStop Rollercoaster
- 5:20 Seeking a Second Opinion in Investing
- 6:19 The Stupidity in Following Stock Recommendations
- 7:03 GameStop Stock: A Question of Valuation
- 8:30 The Evolution of the Gaming Industry
- 8:54 What to Learn from the GameStop Frenzy
- 9:49 Investing vs. Speculation
- 12:05 Vanguard's Fiduciary Advisors and Financial Decisions
- 12:31 Importance of Getting a Second Opinion
- 15:03 Adjusting Investment Strategy for Retirement
- 15:31 Vanguard's Changes in Customer Service
- 16:45 Questioning Vanguard's Decision-Making
- 21:25 The Significance of Money in Your Life
- 26:34 Addressing Hodgepodgeitis in Your Investment Portfolio
- 27:34 Vanguard's Controversial Fee Changes
- 34:02 Strategies for Protecting Equities After Hours
- 36:46 The Remarkable Story of Dimensional Funds
- 38:26 Platforms for Investing: Schwab vs. TD Ameritrade
- 39:58 Resources and Information at TalkingRealMoney.com
On the week's question and answer session, Tom and Roxy take written questions from listeners about:
- Social Security spousal benefits.
- Moving Emergency Cash
- Short-Term Cash Options
- Portfolio Diversification
- AVGE vs. BND Allocation
- Real Estate Sales and Tax Planning
The questions have started pouring in again. Thanks! Today...
- Using High-yielding CLOs Instead of Bonds.
- Adjusting Portfolio for Growth
- Maryland 529 Plan vs. Other Options
- Maximizing Growth for Grandchildren
- Understanding Rebalancing in a 401k
- Implementing a Three-Bucket Account Strategy
The U.S. Labor Department is going to try again to hold some of those who provide advice on retirement assets to actually act in their clients' best interests. Will this new rule actually go into effect this time and who might it protect. Then we take your questions:
- What to we think of Keith Fitz-Gibbons investing advice?
- What's the best way to cover three years of expenses before collection Social Security?
After years of diligently saving and investing a your retirement plans, what should you be doing when your accounts have grown to sizable amounts? Plus, we share the reasons for a small cap and value portfolio tilt. Plus, we hear from several listeners who ask:
- Why don't we talk more about 529 ABLE plans?
- What do we think of a portfolio with 20-year Treasury bonds?
- After maxxing out retirement accounts, where should other money be invested?
- Why can't more people save and invest?
Is it a mutual fund? Is it an annuity? Can one investment met everyone's retirement needs? That's seems to be the claim of the complex BlackRock LifePath Paycheck funds. Plus, we talk about Warren Buffett's take on corporate taxes and how individuals could all end up paying no income taxes. We also discuss the workings of the "backdoor" Roth IRA. Then, listeners want to know:
- Nearing retirement is a fiduciary adviser needed and what should one cost?
- The name of the book Tom mentioned about Crazy Eddie?
There aren't many ways to improve your odds while investing in stocks. So, why have investors like Warren Buffet been so successful and why do we belive in factor investing? Plus listeners want to know:
- Why do we suggest more expensive products from firms like Avantis and Dimensional?
- What are the differences between a 403b and a Roth IRA?
Once again, the United States Depratment of Labor is trying to protect retirement investors against the lies told, and the high fees charged, by many providers of advoce for retirement pland rollovers and transfers. Will they succeed against Wall Street and Big Insurance? Plus, we take your questions:
- What's the best way to pay for a new roof?
- Why are my ETFs paying out taxable dividends?
This Friday's Qs:
- How should an aggressive investor invest money that is not needed in retirement?
- Does a QLAC make sense as a toold to control long-term care expenses?
- Are there any tax ramications from moving from an expensive funds to ETFs in a qualified retirement account?
- Does his portfolio idea make sense for a lazy retirement investor?
Over centuries, gold has proven to be a lousy investment. Its big selling point has been "safety." But, is gold really safe? What good is gold? Then, listeners want to know:
Should a home equity line of credit be used to buy a new home?
What's the best way to make a lot, quickly, with both safety and liquidity?
What should be dome with retirement investment money after maxing out retirement plans?
Should I-Bonds be sold now that they're earning less?
After big losses from a brokerage portfolio, what should be done?
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Advisor Diana Bacon joins Tom and Don to discuss those future purposes for which you need to invest. Should you invest for a house, education, retirement, or beer, and how much for each? Listeners ask: Is a Fidelity investor limited to their funds, or can a couple of ETFs work? Is buying individual bonds better than a bond fund? Learn more about your ad choices. Visit megaphone.fm/adchoices
We discover that Vanguard charges fees to buy and sell some of their mutual funds. What's the difference between a transaction fee and a commission? Plus, are friends and family the best resource for fiduciary financial advice? What's the best way to find a great financial advisor? After Bob Barker's passing, Tom states, "The Price is Right." Then, we hear from some listeners:
Is FICA charged for income from retirement plan withdrawals?
Will a widow receive the whole capital gains tax exclusion on a primary home sale?
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Apparently, to become a famous market prognosticator, you only need one accurate guess. Tom and Don wonder why we still hang on the advice of those who rarely, if ever, make a correct guess about market direction. Then we hear from some of you:
Is my partner right to be concerned about my retirement portfolio?
Is is too late to fund a 529 for older kids?
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Here are today's questions:
Is a friend working with a good advisor?
What's the best way to move money from an appreciated mutual fund to a more tax-advantaged fund?
How does an organization determine the proper risk profile?
How can a a well-diversified ETF portfolio created?
At what age does a custodial IRA need to be turned over to a beneficiary in Washington?
How should an investment property be sold and the proceeds reinvested?
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We all want to make lots of money with no risk. Well, you can't have both. That hasn't stopped many in the financial and insurance business from creating products designed to make it appear you can receive wealth without risk. Tom and Don share the latest confounding example of this phenomenon. Then we answer listeners questions:
How does the new law allowing $35,000 to be moved from a 529 to a Roth IRA work?
How do you adjust the retirement withdrawal rate between a traditional 401k vs. a Roth?
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Most of us are not ready for a financially secure retirement. Americans are increasingly on their own when it comes to creating a life-long retirement income stream. What will it take to make us better retirement investors? One of the biggest problems are the high-fee (and commission) annuity products foisted on 403b plan participants by insurance companies. What should you do to become a better rtetirement investor? Plus, why is CBS News allowing blatants ads for gold investing and gold IRAs to be posted online under its name as news articles? Listeners want to know:
Is it better to consider the "30-day SEC yield" or "estimated distrubution" when considering bonds funds?
What is a reasonable fee to pay for a fiduciary investment advisor?
What's the best way to rebalance taxable and retirement accounts?
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On today's Friday Q&A episode:
Is there a way to move from one appreciated fund to another without a tax hit?
How many stocks are in AVGE?
What is the best way to give appreciated assets to charity and receive an income?
Is it better to take money out in retirement once a year or by averaging out over the year?
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Does the fact that target-date funds (which hold international stocks) have underperformed their balanced competitors (with generally on US companies) tell you anything about their future?Plus, why is the financial media keep taking the easy path by suggesting big, blue-chip stocks? Oh, and Tom shares a joke from a Norwegian listener. Then, callers want to know: Does it makes sense to start using new Roth option at work versus the old degerred plan? Is 10 years enough time to invest in a well-diversified portfolio or does a target-date fund make more sense? Does it makes sense to convert funds in a qualified plan to ETFs? How can taxes be reduced on portfolio? Learn more about your ad choices. Visit megaphone.fm/adchoices
The show starts with a relatively tame discussion of the reccomendation to sell I-bonds and move the money into long-term Treasury bonds. Then, our first call sets off fireworks as attempts to claim that equity indexed annuities (EIAs) are wonderful, fee-free products that we unfairly slam. This is a conversation not to be missed. The raest of the show is filled with others callers:
How should a conservative retiree be allocating investments?
Looking advice on moving from a 401k to an IRA?
How to invest after maxing out qualified retirement plans?
What should be done with savings at US Bank if they are in trouble?
How can gold coins be sold?
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Don is back from vacation while Tom is well into vacation and yet they managed to get together to discuss the relative unaffordability of single family homes. Are homes more expensive than ever? Plus, homeowners are borrowing record amounts of equity from their homes. Then we hear from listeners:
How can I essentially gamble with my retirement money in penny stocks and IPOs?
On track for an early retirement at age 55?
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After a technical problem bringing Don in live from Copenhagen, Tom carries on with Apella advisor, Derek Jobe and talks about our need to always be doing something with money. How much money do you need to retire comfortably? Listeners ask:
Does it make sense to move from from bond funds to CDs?
Should money be taken from a retirement plan and moved into annuities?
What can be done to make long-term care insurance more understandable?
How can it be determined when to take Social Security?
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Don answers listeners questions while sitting on the 10th floor of the Copenhagen Marriott (check the cover art for his view):
Is there a better way to create a balanced 60/40 portfolio than Fidelity Balanced fund
How to allocate any international portfolio between two American funds?
What's the best way to transfer a 403b annuity to Fidelity?
Is it better to overfund retirement early or low down to keep getting the employer match?
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What do you know about Social Security. Join us for an exciting game that will help you learn more about most American's primary source of retirement income. Plus, we take some questions:
What's the best investment for a 529 education plan?
What are the costs for buying and selling brokered CDs?
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Don's on his summer cruise, freezing in Iceland, and answering questions:
Does a portfolio of specific date bond ETFs make sense?
Should a 28-year old retirement investor use target-date funds or AVGE?
How much is needed to become our client?
Should retirement money be invested in Schwab Intelligent Portfolios?
With today's high yields do CDs have a place in a retirement portfolio?
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While Don sails across the North Atlantic, Tom mans the podcast and discusses overrated financial concepts and how you deal with money. Then come the callers:
Does it makes sense to have both a 401k and a Roth IRA and what are the differences?
Have we forgotten about the less tangible aspects of a paid-off mortgage?
What’s the best way to convert a regular IRA to Roth IRA?
Is a Roth 457 better?
What’s the best way to avoid the high fees at Empower?
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With Don on vacation, Tom spends some time covering the basics of investing. Later he is joined by Consumerman, Herb Weisbaum discussing the latest scams. They also discuss the pros and cons of electric vehicles. Callers ask about: What are the reals costs of mutual funds and ETFs? How to start working toward a financially secure retirement? Learn more about your ad choices. Visit megaphone.fm/adchoices
Even when on vacation, Don tackles an array of questions and comments from listeners, including:
How should an inheritance be invested for a vacation fund?
Is this portfolio allocation too aggressive?
A listener lays out his case for crypto currencies, and Don responds.
What traits should an investor look for in a financial advisor?
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Don't spend too much of your savings on a child's college education. People often retire because they can no longer earn a living, so you must ensure your retirement is your financial priority. Then callers ask:
What should be done with a hodgepodge portfolio?
What can be done with a currently non-deductible disaster loss?
What should be done with the stocks in a company purchase plan?
Still trying to discover the value of some of Warner Bros. stock.
How should a bunch of individual inherited stocks be sold?
Should money be placed in a tax-deferred or taxable account?
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In today's pre-vacation question and answer session Don addresses:
Concerns about the young age of funds like AVGE.
Are Fidelity Enhanced funds like Dimensional and Avantis funds?
With the yield below 4%, should I-Bonds be cashed in and moved to saving accounts?
Which money market yield quote is the right one?
Does it make sense to fo with three funds instead of ten to simplify rebalancing?
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Today, after a robot briefly seizes the podcast, we talk about the power of advice and when hiring a robot to help you invest makes sense. We also compare a few of the biggest robo-advisory firms. Then we hear from listeners:
Praising our help.
Where is a great source for information on taking pensions and annuitization options?
What should be done with a grandchild's investment vehicles and portfolio?
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We start with proof that "Luke from WI" is real. Then, we dive into the topic du jour; those annoying never-ending subscription charges. How can we better manage and eventually cancel them? Then, we take your questions:
Isn't rebalancing a form of market timing?
Is a cash-hoarding financial advisor incompetent?
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On this week's Friday Q&A:
Vanguard has made another customer angry with their $25 fee and they want to know how to move.
Do these two ETFs provide enough diversification?
After one year in a Kai-Zen Trust, a disillusioned buyer wants to know if he should continue funding it.
What do we think of Dave Ramsey's advice to take Social Security payments at age 62?
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With the US Supreme Court ruling against the student loan, elimination plan, what can students do now to help reduce the burden of their education debt? Plus, we talk about special people and their special financial treatment. Then, listeners ask:
Should they go ahead and annuitize a variable annuity or move it into an IRA
Is this work 401(k) plan diversified enough?
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In this episode, we share the surprisingly good returns for 2023 so far and what it means going forward. Then we share a terrible way to find a fiduciary investment advisor and why it’s so hard to find high-quality financial advice. Callers ask about the following:
Flexible withdrawals in retirement planning. We explain how withdrawing a reasonable percentage each year can provide a sustainable income.
Using QLACs (qualified longevity annuity contracts) as a means to avoid RMDs (required minimum distribution).
What are value stocks, and how are they more aggressive?
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We are inundated with "expert" financial advice. Is it worth heeding? There are a lot of people who claim to be able to predict the financial future, but they all have one thing in common with plain old us. They CANNOT know the future. So, why bother listening, watching, or reading their advice? Then, we hear from some of you wondering:
If Bitcoin makes simple mathamatical sense as an investment?
What do we think of lightly traded ETFs?
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What are the big issues that drain your wealth after you retire? Here are five of the biggest wastes of money in retirement: Housing, health, scams, Social Security, and investing. Listeners ask:
How can I be sure that my portfolio reflects my core beliefs?
How should money from a condo sale be invested in retirement?
After losing a job is life insurance still needed?
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Risk is part of life, but should we really worry about the possibility of losing everything? A 100% loss from your investments is almost 100% avoidable if you stop gambling. You can dramatically increase your chances of total loss with leverage. Listeners ask:
Is a 6 to 7% esoteric bond product a safe way to create retirement income?
What should be done with five non-income producing real estate investments?
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The "Baby Boom" generation continue to own a large percentage of their wealth in stocks. Are they taking too much risk or are they saavy investors? Then, listeners ask Tom and Don:
Can couples get around the "wash sale rule" by trading in their seperate accounts?
Should a portfolio's missing asset class be purchased slowly or all at once?
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Passive income is paradoxical. While it sounds like getting something for nothing, it either requires a lot of work or money (which generally requires wealth to accumulate). Why do so many people chase after this impossible dream? Plus, you want to know:
How should a $250,000 nest egg be invested?
Should I ask my broker to help me invest in low-cost index funds and ETFs?
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It's a lesson we constantly fail to learn: Avoid investing in your company's stock. Employees who believed their firm could not fail have lost billions of dollars. We compare the rate you can get on a Bank of America CD in the bank itself versus through a brokerage firm. The difference is shocking. Plus, how to make a CD ladder. Listeners stop by to ask:
What should be done with an investment account with Securian?
What do we think of FDIC-insured online banks?
What should be done with a bunch of money that has no stated purpose?
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A bull market seems to encourage us to watch our investment portfolios more closely, which can lead to bad, emotionally-driven decisions. Why do we rush into the hot stocks? Plus, an example of studying an advisor's form ADV, Part 2. Listeners want to know:
What kind of impact would moving investments have on average annual returns?
Is paying bills from a checking account or with a credit card better?
What do we think of Vanguard's new $ 25-a-month fee per mutual fund or brokerage account?
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In this week's Q&A episode:
Is it true you can live off of capital gains tax-free?
How should young adults' Roth IRAs be invested?
What do we think of the cash product from MassMutual's "Flourish" program?
Does monthly rebalancing make sense?
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As we approach retirement, several things cause concern, but what do retirees worry about most? Discover how to reduce concerns about running out of money before running out of life. Then, we hear from listeners:
Sharing a trick to own the market without using ETFs or funds.
Is Morningstar a good source to research funds recommended by my LPL advisor?
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Do you need a robo advisor to help you create a fixed-income portfolio? Can they make you more money while also charging you more? We compare a robo advisor bond buying service to cheap bond ETFs. Plus, we take listeners' questions:
Will returns rise if you never rebalance your portfolio?
A salesperson suggests moving an old 403b to his Roth IRA. Should I ask if he's a fiduciary?
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Dave Ramsey received $30 million to promote a deceptive timeshare seller and now faces a huge lawsuit. Much of the financial advice in the media is bought and paid for, leaving you to wonder whose advice to trust. Then a listener: Shares his Tesla excitement, and we explain our concerns about owning Tesla or any other individual stock.
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Look at that. Despite all of the "economic uncertainty," the longest bear market since 1948 has officially ended. How many stocks were responsible for the return of the bull? What does that mean for your portfolio and future? We also talk about small side hustles and the changes and troubles at Vanguard. Then listeners ask:
How can an investor in a Fidelity retirement plan invest in international small-cap value stocks?
What can be done with an old annuity that is slow to pay out assets to the owner?
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Don fields your comments and questions:
Praise for Vanguard's customer service.
Taking us to task over life insurance advice.
How to invest when Roth ineligible?
What would happen if Apple failed?
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"Investors" – and we use that term a loosely as possible – are pouring money into anything that seems even remotely connect to AI (artificial intelligence). The end result is not likely to be pretty. Listeners want to know:
What do we think of the Oxford Club's 200+% return bond trading strategy?
Why own international stocks when the US has done so well?
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It's Friday! That means Don is answering a few more of your questions:
What should be done with some old, expensive funds in a Roth?
Does a pre-tax retirement contribution reduce Social Security earnings penalties?
Does it make sense to use RMDs to make charitable contributions?
Is an expensive, actively managed small-cap value fund better, and do target-date funds have hidden fees?
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Many people believe that higher interest on safe bank instruments makes this a good time to get out of the stock market for a while. The market habitually makes fools of those who think they are smarter than the market. We also discuss the foolishness of paying high commissions to that friend in the business. Don rips into a "radio host" who claims to be honest and sell indexed annuities. Then, we discuss the annoying proliferation of tipping screens at businesses. We hear from listeners:
How to move from Edward Jones to Vanguard?
Are 10-year CDs better than the Vanguard Total Bond Index ETF?
Then, we get our holiday weekend drunk caller.
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Today and tomorrow, we look at several reasons you might not be ready to retire. Plus, listeners want to know:
- Is there a deadline during the day for canceling a mutual fund trade?
- Are we heading for economic trouble?
- How much of an annuity will need to be withdrawn for RMD?
- How bad is my financial situation?
Don is back, taking on your questions with his answers. Here's what today's episode brings:
- What is Phoenix Capital, and how can they offer 9-12% yields?
- How much of BND is in long-term bonds?
- How should a portfolio be rebalanced to add a REIT fund?
- Should a bonus go into a 401k, and does it make sense to convert to a Roth?
- Should old 401ks be moved into a new John Hancock-managed 401k plan?
- Plus, a bit of additional information about crypto creation.
With rates all over the place, many are trying to play the fixed-income market. Tom and Don explore the purpose of fixed income in a portfolio and disciplined strategies for investors. Plus, they discuss a new, strange NFT offering.
Listers want to know:
- What do we think of Paul Merriman's target date and small-cap fund strategy?
- Does it make sense to test the five biggest brokers by giving each a whopping $1,000 to invest?
The world has changed dramatically. So, how do you manage your money in this mad new world? Plus, we hear from listeners asking:
- How do you get restarted on a retirement investment path?
- Will other world currencies supplant the US Dollar?
- What do we think of these two stocks?
Today, we present part one of a two-part series focused on what you must know about money. In this episode, we discuss spending and credit. Then, we hear from listeners asking:
- For help looking up his fee structure and an ADV Part Two. You'll be shocked at what we found.
- Seeking the best plan for reducing company ESOP stock holdings.
- Wondering why a bank would limit the amount of cash allowed to be withdrawn.
Like financial leeches, old online subscriptions slowly suck your bank account dry. What can be done about these almost to impossible to cancel services? Then, we hear from listeners asking:
- What should I expect from a wealth manager?
- Which assets should be in what kind of account?
Today's questions:
- Why did my ETF distribute capital gains?
- Will this tax harvesting and repurchasing strategy run afoul of the "wash-sale" rule?
- Is there any reason to pay off a mortgage in retirement?
- Why do banks have 11-month CDs?
The fallout from Silicon Valley Bank's failure continues to impact the investing markets. Should you be concerned? What should you do?
Plus, listeners want to know the following:
- Who writes those almost identical stock market headlines and if pros can trade, why can't we?
- Why does Apella Wealth list insurance sales in its Form ADV?
Today's questions and comments include the following:
- Another way to fund a child's Roth IRA.
- Can regular in-service transfers be made from a bad SEP-IRA into a traditional IRA?
- Does using a margin loan to buy commercial real estate makes sense?
- Does this simple three-fund portfolio look okay?
- Can you contribute more than you earn to IRAs and 401ks?
- How much diversification is needed in a bond portfolio?
Every so often, a group of investing "experts" suggest that investing in cash is better than owning stocks. Last year, with rates near zero, that was terrible advice, but what about now?
The listeners ask:
- How do you calculate the minimum distributions for an inherited IRA?
- Does using an expensive small-cap value fund in a company plan make sense?
In today's question and answer episode, Don answers these questions:
- Does a non-deductible IRA make sense?
- How is the cost basis of restricted stock units determined?
- Does it make sense to have an expensive small-cal value fund?
- Can his regular IRA be converted to a Roth?
- does it make sense to convert regular Vanguard funds to ETFs?
When saving for retirement, either in a employer-plan or using IRAs, how do you decide whether to take the tax-deduction and pay taxes later or get lifelong tax-free growth using the Roth option?
Then, listeners ask:
- When is the right time to rebalance and how is it done?
- How can you judge the performance of a young index fund?
We are thrilled that Dimensional Funds made the Barron's Top Funds list. However, this is a hollow victory, at best (and speaking of victory...). What makes a great fund group?
Then we hear from you:
- Who provides the best retirement advice?
- Why not give your child a 1099 for chores?
- Are American Funds too expensive for a 401k?
- Finally, a big fan of indexed annuities calls right at the end, so Don works overtime to discover the truth.
On this Q&A episode, listeners ask:
- Where is the best place to start investing at age 13?
- Is it better to just have VT versus using VTI and VXUS?
- Are non-deductible IRAs worthwhile?
- How should I allocate assets between growth and value?
Tom and Don explore Retiree's biggest retirement regrets. Of course, the biggest one is not having enough money.
Then, we respond to listeners:
- One shares a story of an overfunded 529 plan and a new bonus.
- Another seeks advice on the best way to start spending retirement assets.
"Experts" have been been writing books filled with investing advice for over 300 years. After all of that information, why are we still such lousy investors? Plus, a couple of listeners join in:
- What impact will rising debt have on the economy and investments?
- A young investor requests our opinion of his portfolio?
After a bit of a troubled trip to Hawaii, Tom turns to ConsumerMan, Herb Weisbaum to discuss your rights and protections when travelling by air.
It seems that most investors are expecting continued volatility for the stock market. Yet, the stock market is always volatile. So, it it really volatility they're concerned about?
In today's question time:
- Are CITs more risky than a mutual fund or ETF?
- Where should money for retirement be parked?
We are more comfortable talking about death than money. Yet, financial planning is an critical part of an estate (and even, life) planning. Then, a school district employee gets us talking about using the tool at 403bWise to look up many school district 403b plan investments.
We hear from listeners:
- How can school district employees get school boards to improve plan investments?
- You may want to include your actual phone in you estate package.
- Please explain the process of meeting with one of our advisors.
- What do we think of Thrivent?
Nothing stops the excitement of trading your way to wealth in the stock than the inevitable bear market. You claim to follow our advice, but many of you seem to be hearing something else.
Callers want to know:
- How to get retirement plan trustees to invest more aggressively?
- What's the best way to invest for a younger beneficiary?
- Does it makes sense for his wife to take Social Security at full retirement age?
- Should she invest in a fixed annuity?
- Can money from household chores be invested in a Roth?
This episodes questions:With a new child on the way, what should be done financially?What are collective investment trusts?Daughter being sold a structured annuity, what it it?Does it make sense to pay of home mortgage?Does it make sense to transfer a 403b to an IRA and what are the drawbacks?Can a health savings account (HSA) be moved to another HSA?Learn more about your ad choices. Visit megaphone.fm/adchoices
Once again, we enter the gift giving season frustrated by trying to pick the perfect present. While things are quickly forgotten a gift of a financial future can literally last a lifetime. Plus, listeners want to know:
The best way to allocate money between our "three-fund" suggestions?
Does it makes sense to wait on buyiong bonds right now when building a 60/40 portfolio?
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Tom and Don get them, too. Those e-mails that offer you a free gift or inform you a gift that couldn't be delivered. Don't get scammed for Christmas. Plus listeners chime in: More agruments against actively managed mutual funds and ETFs. Can tax-loss sale proceeds be inveting in the same security in and IRA or 401k? Learn more about your ad choices. Visit megaphone.fm/adchoices
If bonuses could cause a large group of Wells Fargo employees to cheat, why impact might large comissions have on financial "advice?" Plus a couple of questions: Can I change my Roth back to a regular IRA and take a tax loss? Should I consider the new indexed annuity in my compnay's 401k? Learn more about your ad choices. Visit megaphone.fm/adchoices
We recently heard about a non-profit financial education organization, F3E (or Foundation for Financial Education) which claims to provide an unbiased fiscal education. After further review, we found some glaring problems with those who provide this "education." They all appear to be selling insurance products. Plus, a listener wonders if Securities America is a legitimate custodian.
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Why would a CBS News reporter tout gold IRAs? Don explains why buying gold in your retirement account is a terrible idea. Plus, he explains what is wrong with most financial advice and why it continues to be so bad. Then, our last caller proves Don's point while trying to to call him out. Your questions:
What is wrong with ESG investing?
Does it make sense to slowly move an IRA to a Roth?
A former crypto gambler looks for a way to invest kid's gifts.
An the insurance salesman's response to Don's rant.
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As Tom gets ready to travel to Qatar, we consider the opinion of some that a fallen market makes for a dangerous retirement. Plus, we wonder why so many are scared of "the market." What is "the market," really? Then on to listener questions:
Is there a proper order to move asset classes to a Roth?
How can a young worker invest for the lowest tax liability?
Should a house-flipper own investment property in retirement?
What's the best way to give money to kids?
Can a recharacterized Roth be "backdoored" into another Roth?
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On this pre-holiday Q&A session listeners want to know:
If a pension counts as a fixed-income portfolio?
From where should retirement income be drawn first?
What's the best place to invest for no risk whatsoever?
That we understood he wasn't throwing Paul Merriman under the bus?
Is it okay to use brokered CDs?
What do we think of Betterment?
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Another large cryptocurrency exchange, FTX, collapses and even some crypto advocates are having second thoughts about the viability of this possible mega-scam. Plus, a listener asks of Social Security income can somehow be incorporated into a portfolio as a fixed-income investment? Learn more about your ad choices. Visit megaphone.fm/adchoices
Every so often, someone tries to make news by declaring a typical balanced portfolio (60% stocks, 40% fixed income) deceased. While a 60/40 portfolio is not the universal answer, creating a properly diversified portfolio for your personal situation should be immortal. Plus, a listener asks why managed international funds outperform index funds? (spoiler: they don't) Learn more about your ad choices. Visit megaphone.fm/adchoices
How much is your house really worth? How much is anything worth? One real estate firm decided to stop buying houses because they feared insulting sellers. Tom and Don explain the realities of asset prices. Then, we take listeners questions:
Where should an estate executor invest money?
How can a lump sum payout stay tax-deferred?
From Ireland: Why have we stopped talking about VT?
Why do some active funds beat the market even though they cost more?
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After a dreadful three quarters, the stock market soared recently. We discuss which asset classes fared best this year. Then we take lots of questions:
What's the best strategy for retiring early and delaying Social Security?
After getting out of the market early this year, when should he get back in?
Where should a teenager's earnings be invested?
What should be done with a chunk of cash?
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Another Friday means more of your questions and Don's answers:
Should an old Empower managed 401k be moved to IRA?
How is a pension added to retirement calculation?
Should a Thrivent fund be moved to a low-cost index fund?
Where is our live video show?
What can be done with an extra $4.37 left in old IRA?
If Jeff Bezos invested everything in the total stock market what would happen?
Is the 4% Rule just a ruse to help financial advisors?
Should 403b money be transferred into an indexed annuity?
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A recent study found that there may be a best time of day to invest in ETFs. We wonder if it's worth your while. Plus, a listener asks if it makes sense to get a reverse mortgage for "fun" money? Learn more about your ad choices. Visit megaphone.fm/adchoices
Everyone should have an emergency fund. How big should it be and how can you get started building one. We share our thoughts and examine a ne Suze Orman backed service to help get employees set up with automated savings. Then we hear from a listener wondering what we think of J.L. Collins investing advice. Learn more about your ad choices. Visit megaphone.fm/adchoices
Everyone should have an emergency fund. How big should it be and how can you get started building one. We share our thoughts and examine a ne Suze Orman backed service to help get employees set up with automated savings. Then we hear from a listener wondering what we think of J.L. Collins investing advice. Learn more about your ad choices. Visit megaphone.fm/adchoices
Many of the hot funds of the past got that way by taking big risks on just a few stocks or sectors. However, the dangers of a concetrated portfolio outweigh the occasional impressive gains. Plus, Tom and Don discuss: Should you have invested in the lottery? Are ARMs better than fixed-rate morgages? Then we take listeners questions: What is the difference between bank and brokered CDs? Can you pick which IRAs from which to take withdrawals? What are the call letters of our Seattle station? Learn more about your ad choices. Visit megaphone.fm/adchoices
Many of the hot funds of the past got that way by taking big risks on just a few stocks or sectors. However, the dangers of a concetrated portfolio outweigh the occasional impressive gains. Plus, Tom and Don discuss: Should you have invested in the lottery? Are ARMs better than fixed-rate morgages? Then we take listeners questions: What is the difference between bank and brokered CDs? Can you pick which IRAs from which to take withdrawals? What are the call letters of our Seattle station? Learn more about your ad choices. Visit megaphone.fm/adchoices
During the crazy Medicare enrollment period, insurance compnaies will say or do almost anything to get you to sign up for their Medicare Part C (Medicare Advantage) plans. This allows them to get their hands on that government money that might otherwise just go to patients. We take some questions, too:
What's the best way to add international equities to AVGE?
Should precious metals and crypto be in your portfolio?
Learn more about your ad choices. Visit megaphone.fm/adchoices
During the crazy Medicare enrollment period, insurance compnaies will say or do almost anything to get you to sign up for their Medicare Part C (Medicare Advantage) plans. This allows them to get their hands on that government money that might otherwise just go to patients. We take some questions, too:
What's the best way to add international equities to AVGE?
Should precious metals and crypto be in your portfolio?
Learn more about your ad choices. Visit megaphone.fm/adchoices
How is the price of anything determined? We explore that issue after discovering a huge discrepency between the price of publicly traded real estate investment trusts (REITs) and non-traded REITs. How can one plunge in price while the other seems to be rising? Plus, a listener wants to know about investing overseas and moving money to safer investments? Learn more about your ad choices. Visit megaphone.fm/adchoices
How is the price of anything determined? We explore that issue after discovering a huge discrepency between the price of publicly traded real estate investment trusts (REITs) and non-traded REITs. How can one plunge in price while the other seems to be rising? Plus, a listener wants to know about investing overseas and moving money to safer investments? Learn more about your ad choices. Visit megaphone.fm/adchoices
Some "top experts" share their thoughts about retiring in times of perceived market turmoil. Tom and Don make them easier to understand. Plus, a listener wonders if his advisor is really a fiduciary when suggesting an annuity purchase. Learn more about your ad choices. Visit megaphone.fm/adchoices
Some "top experts" share their thoughts about retiring in times of perceived market turmoil. Tom and Don make them easier to understand. Plus, a listener wonders if his advisor is really a fiduciary when suggesting an annuity purchase. Learn more about your ad choices. Visit megaphone.fm/adchoices
Just as you can't have calories without weight, you can't have wealth without risk. However, many in the insurance industry want you to believe you can get market returns without losses. Plus, Tom blames Don for the I-bond induced crash of treasurydirect.gov. Don calls Tom an elitist. We take your questions:
Is moving from Vanguard Windsor II into their large cap index fund a good idea?
When will "real" banks raise their rates?
Why did T. Rowe Price merge funds?
Learn more about your ad choices. Visit megaphone.fm/adchoices
Just as you can't have calories without weight, you can't have wealth without risk. However, many in the insurance industry want you to believe you can get market returns without losses. Plus, Tom blames Don for the I-bond induced crash of treasurydirect.gov. Don calls Tom an elitist. We take your questions:
Is moving from Vanguard Windsor II into their large cap index fund a good idea?
When will "real" banks raise their rates?
Why did T. Rowe Price merge funds?
Learn more about your ad choices. Visit megaphone.fm/adchoices
We discover we have job security as investors are still missing the basics and looking for advice in all the worong places. Plus, what is investing risk. In addition, we get an update on Tom's new car purchase. Then, we take listeners questions:
What should a recent widow do with a found 401k?
Should he do a $1 million Roth IRA conversion?
How can an investor find true fiduciary advice for a portfolio?
Learn more about your ad choices. Visit megaphone.fm/adchoices
We discover we have job security as investors are still missing the basics and looking for advice in all the worong places. Plus, what is investing risk. In addition, we get an update on Tom's new car purchase. Then, we take listeners questions:
What should a recent widow do with a found 401k?
Should he do a $1 million Roth IRA conversion?
How can an investor find true fiduciary advice for a portfolio?
Learn more about your ad choices. Visit megaphone.fm/adchoices
We have some really great questions this week (and hopefully some decent answers). There seems to be a tax-loss and Roth theme: Can money from a tax loss sale in a brokerage account be investing in a Roth? Did she screw up her tax loss sale? How much can be investing in a Roth TSP and a Roth IRA? Why isn't Talking Real Money on Deezer? Is there a better time of day to buy ETFs? Learn more about your ad choices. Visit megaphone.fm/adchoices
We have some really great questions this week (and hopefully some decent answers). There seems to be a tax-loss and Roth theme: Can money from a tax loss sale in a brokerage account be investing in a Roth? Did she screw up her tax loss sale? How much can be investing in a Roth TSP and a Roth IRA? Why isn't Talking Real Money on Deezer? Is there a better time of day to buy ETFs? Learn more about your ad choices. Visit megaphone.fm/adchoices
"But, they're so nice," "She's my niece." He goes to our church, so he must be honest." We hear this stuff all the time about financial advisors. Of course they're nice. Most of them are salespeople. To sell products, you generally need to be nice. Should niceness be one of your top criteria for hiring someone to manage your future? Tom and Don discuss how you should be picking an investment advisor. Plus, a listener wonders which is best, Vanguard, Dimensional, or Avantis? Learn more about your ad choices. Visit megaphone.fm/adchoices
"But, they're so nice," "She's my niece." He goes to our church, so he must be honest." We hear this stuff all the time about financial advisors. Of course they're nice. Most of them are salespeople. To sell products, you generally need to be nice. Should niceness be one of your top criteria for hiring someone to manage your future? Tom and Don discuss how you should be picking an investment advisor. Plus, a listener wonders which is best, Vanguard, Dimensional, or Avantis? Learn more about your ad choices. Visit megaphone.fm/adchoices
A number of fiduciary advisors are being sued for not putting their clients in more expensive mutual funds. Somehow, they equate higher expenses with long-term higher returns. A listener wonders whether individual bonds are better than a mutual fund? Learn more about your ad choices. Visit megaphone.fm/adchoices
A number of fiduciary advisors are being sued for not putting their clients in more expensive mutual funds. Somehow, they equate higher expenses with long-term higher returns. A listener wonders whether individual bonds are better than a mutual fund? Learn more about your ad choices. Visit megaphone.fm/adchoices
Despite being a proven, long-term wealth building strategy, many Americans still have no stocks on the their portfolios. We explore why. We also spend some time talking with Paul Merriman about the current market and what the future might bring. Plus, we take a question on what should be done with an inheritance? Learn more about your ad choices. Visit megaphone.fm/adchoices
Despite being a proven, long-term wealth building strategy, many Americans still have no stocks on the their portfolios. We explore why. We also spend some time talking with Paul Merriman about the current market and what the future might bring. Plus, we take a question on what should be done with an inheritance? Learn more about your ad choices. Visit megaphone.fm/adchoices
Money market mutual funds used to be a good place to park money. That has changed as many funds have raised their expenses – some to 1% per year. These high expenses eat up what tiny yield you might have received. There are better alternatives. We also dive into all mutual fund expenses and where they go. How much are you paying, to whom, and for what? Plus, we take a question about the fee structure of funds of funds. Do you pay twice? Learn more about your ad choices. Visit megaphone.fm/adchoices
Money market mutual funds used to be a good place to park money. That has changed as many funds have raised their expenses – some to 1% per year. These high expenses eat up what tiny yield you might have received. There are better alternatives. We also dive into all mutual fund expenses and where they go. How much are you paying, to whom, and for what? Plus, we take a question about the fee structure of funds of funds. Do you pay twice? Learn more about your ad choices. Visit megaphone.fm/adchoices
It's Friday (for Don anyway) and he takes a bunch of your questions: Can you sell an S&P 500 fund at Vanguard and simultaneously buy a a different S&P 500 fund at Fidelity? Who decides when dividends are declared and terminated? Who should manage a real estate portfolio? Should businesses paying her kids to do some work to fund Roth IRAs provide 1099s? Is AVGE too conservative? Learn more about your ad choices. Visit megaphone.fm/adchoices
It's Friday (for Don anyway) and he takes a bunch of your questions: Can you sell an S&P 500 fund at Vanguard and simultaneously buy a a different S&P 500 fund at Fidelity? Who decides when dividends are declared and terminated? Who should manage a real estate portfolio? Should businesses paying her kids to do some work to fund Roth IRAs provide 1099s? Is AVGE too conservative? Learn more about your ad choices. Visit megaphone.fm/adchoices
Just when you thought the meme stock traders had learned their lesson, they return with new trading targets and even less knowledge. Plus, we answer our most asked question. Learn more about your ad choices. Visit megaphone.fm/adchoices
Just when you thought the meme stock traders had learned their lesson, they return with new trading targets and even less knowledge. Plus, we answer our most asked question. Learn more about your ad choices. Visit megaphone.fm/adchoices
Market volatility frightens many investors. So, with so many financial experts out there, does anyone really understand investing markets wild fluctuations? Plus, why would would ever suggest a brand new fund with little money invested and no long-term track record? Learn more about your ad choices. Visit megaphone.fm/adchoices
Market volatility frightens many investors. So, with so many financial experts out there, does anyone really understand investing markets wild fluctuations? Plus, why would would ever suggest a brand new fund with little money invested and no long-term track record? Learn more about your ad choices. Visit megaphone.fm/adchoices
As real estate prices peak, some of the first feel the effects are speculators like flippers. There is no easy money. Just ask Kevin Bacon. Then, on to the questions: Can you tax loss harvest from a municipal bond ETF in a total market bond ETF? What are the alternatives to to long-term care policies? Does an immediate annuity make sense? What is the purpose of bonds in a portfolio? Learn more about your ad choices. Visit megaphone.fm/adchoices
As real estate prices peak, some of the first feel the effects are speculators like flippers. There is no easy money. Just ask Kevin Bacon. Then, on to the questions: Can you tax loss harvest from a municipal bond ETF in a total market bond ETF? What are the alternatives to to long-term care policies? Does an immediate annuity make sense? What is the purpose of bonds in a portfolio? Learn more about your ad choices. Visit megaphone.fm/adchoices
Most people want more money than they have. Many want to be rich. How do we define rich and what are some simple ways to get there? Because inflation and the market have battered portfolios, many have decided to delay retirement. Should you wait? Then we take listeners questions:
Is the Avantis All-Equity ETF (AVGE) a good replacement for VT and how should it be added?
Do we suggest FOREX trading?
In what kinds of accounts to different investments belong?
Learn more about your ad choices. Visit megaphone.fm/adchoices
Most people want more money than they have. Many want to be rich. How do we define rich and what are some simple ways to get there? Because inflation and the market have battered portfolios, many have decided to delay retirement. Should you wait? Then we take listeners questions:
Is the Avantis All-Equity ETF (AVGE) a good replacement for VT and how should it be added?
Do we suggest FOREX trading?
In what kinds of accounts to different investments belong?
Learn more about your ad choices. Visit megaphone.fm/adchoices
It's Friday Q&A day with Don and in this episode, he takes six of your questions:
Should a home be part of a portfolio mix?
Explain the relationship between bond yields and bond prices.
Is there a disadvantage to waiting to take Social Security?
Is it okay to own multiple funds in similar asset classes?
Do I really need bonds in my portfolio?
Learn more about your ad choices. Visit megaphone.fm/adchoices
It's Friday Q&A day with Don and in this episode, he takes six of your questions:
Should a home be part of a portfolio mix?
Explain the relationship between bond yields and bond prices.
Is there a disadvantage to waiting to take Social Security?
Is it okay to own multiple funds in similar asset classes?
Do I really need bonds in my portfolio?
Learn more about your ad choices. Visit megaphone.fm/adchoices
Here's the reveal: Don discovers that one of the worst investment ideas of all times has risen from the dead. Yes, Collateralized Mortgage Obligations (CMOs) are being sold again. Then, Tom's topic is retirement. Do we have retirement planning backward? When should we start planning for our post work life? Then we take listeners questions: Is there a better investment than VT for kids long-term investments? What is our opinion of Avantis All Equities Markets ETF (AVGE)? Learn more about your ad choices. Visit megaphone.fm/adchoices
Here's the reveal: Don discovers that one of the worst investment ideas of all times has risen from the dead. Yes, Collateralized Mortgage Obligations (CMOs) are being sold again. Then, Tom's topic is retirement. Do we have retirement planning backward? When should we start planning for our post work life? Then we take listeners questions: Is there a better investment than VT for kids long-term investments? What is our opinion of Avantis All Equities Markets ETF (AVGE)? Learn more about your ad choices. Visit megaphone.fm/adchoices
Numerous investigations point to rampant Medicare fraud by the companies that run some of the largest Medicare Advantage plans. When they cheat the system they hurt all of us. Then we take your questions:
What should be done with an indexed annuity in a qualified retirement plan?
Does it makes sense to join a class action suit against a mutual fund?
How do you convert a percentage to basis points?
From which investment should RMD money be taken?
Learn more about your ad choices. Visit megaphone.fm/adchoices
Numerous investigations point to rampant Medicare fraud by the companies that run some of the largest Medicare Advantage plans. When they cheat the system they hurt all of us. Then we take your questions:
What should be done with an indexed annuity in a qualified retirement plan?
Does it makes sense to join a class action suit against a mutual fund?
How do you convert a percentage to basis points?
From which investment should RMD money be taken?
Learn more about your ad choices. Visit megaphone.fm/adchoices
Don looks at his investment portfolio for the first time in months. Yes, stocks and bonds have been down. Should you be doing something? We discuss how to build the right portfolio for any market. We also spend some time discussing the problems with celebrity endorsements for financial products. Also, should the SEC regulate crypto? Then we take some questions:
Why do so many start taking Social Security before age 70?
We clarify spousal beneficiary benefits from Social Security?
How can you buy Treasury securities?
Where should parents go for financial help later in life?
Learn more about your ad choices. Visit megaphone.fm/adchoices
Don looks at his investment portfolio for the first time in months. Yes, stocks and bonds have been down. Should you be doing something? We discuss how to build the right portfolio for any market. We also spend some time discussing the problems with celebrity endorsements for financial products. Also, should the SEC regulate crypto? Then we take some questions:
Why do so many start taking Social Security before age 70?
We clarify spousal beneficiary benefits from Social Security?
How can you buy Treasury securities?
Where should parents go for financial help later in life?
Learn more about your ad choices. Visit megaphone.fm/adchoices
It's Friday and Don is answering your questions again: What is our opinion of Personal Capital and AVUV? What is the cost basis and what are the fees to buy and sell ETFs? A listener is disappointed with Tom's opinion of I-Bonds. Is this a good time to buy farm land? Is it better to be in a tax-free bonds fund? Learn more about your ad choices. Visit megaphone.fm/adchoices
It's Friday and Don is answering your questions again: What is our opinion of Personal Capital and AVUV? What is the cost basis and what are the fees to buy and sell ETFs? A listener is disappointed with Tom's opinion of I-Bonds. Is this a good time to buy farm land? Is it better to be in a tax-free bonds fund? Learn more about your ad choices. Visit megaphone.fm/adchoices
Congress came close, but at the last minute greed prevailed and the powers that be, in the House, refused to bring a bill to a vote that would have banned stock trading. What, funds and ETFs aren't good enough for them? Then off to listeners questions:
What do we think of the Washington state employee annuity?
Should you have different asset classes in your 401k and IRA?
Why does the amount of a security sale differ from the cash available to trade?
Does no state income tax influence the the purchase of CDs or bonds?
With an advisor retiring, how do you choose a new fiduciary advisor?
Learn more about your ad choices. Visit megaphone.fm/adchoices
Congress came close, but at the last minute greed prevailed and the powers that be, in the House, refused to bring a bill to a vote that would have banned stock trading. What, funds and ETFs aren't good enough for them? Then off to listeners questions:
What do we think of the Washington state employee annuity?
Should you have different asset classes in your 401k and IRA?
Why does the amount of a security sale differ from the cash available to trade?
Does no state income tax influence the the purchase of CDs or bonds?
With an advisor retiring, how do you choose a new fiduciary advisor?
Learn more about your ad choices. Visit megaphone.fm/adchoices
We start with Don's update on Hurricane Ian, the we consider the many imroved opportunities for investing you short term cash. After that, we are innundated with questions:
How can a 401k be slowly liquidated when an employer requires the whole account be closed?
What should be done with some old American fund shares in IRAs?
My advisor forgot to send some paperwork.
Is there a cure for a bad case of 'hodgepodgitis?"
How should a TSP portfolio be allocated?
Plus, Tom feels compelled to talk sports again and would you pay 200% interest for that cute "doggy in the window?" Learn more about your ad choices. Visit megaphone.fm/adchoices
We start with Don's update on Hurricane Ian, the we consider the many imroved opportunities for investing you short term cash. After that, we are innundated with questions:
How can a 401k be slowly liquidated when an employer requires the whole account be closed?
What should be done with some old American fund shares in IRAs?
My advisor forgot to send some paperwork.
Is there a cure for a bad case of 'hodgepodgitis?"
How should a TSP portfolio be allocated?
Plus, Tom feels compelled to talk sports again and would you pay 200% interest for that cute "doggy in the window?" Learn more about your ad choices. Visit megaphone.fm/adchoices
Don is taking your questions again to wrap up the week:
Which comes first, your HSA or 401k?
When is interest taxed in "at maturity" CDs?
The best way to create a balanced investment at Fidelity?
What do we make of an obscure, institutional only fund for retirement plan?
What should parents do with $150,000 sitting in the bank?
Before considering an annuity, with whom should she talk?
Learn more about your ad choices. Visit megaphone.fm/adchoices
Don is taking your questions again to wrap up the week:
Which comes first, your HSA or 401k?
When is interest taxed in "at maturity" CDs?
The best way to create a balanced investment at Fidelity?
What do we make of an obscure, institutional only fund for retirement plan?
What should parents do with $150,000 sitting in the bank?
Before considering an annuity, with whom should she talk?
Learn more about your ad choices. Visit megaphone.fm/adchoices
Real estate prices can fall. That truth is becoming obvious as we learn that the Seattle area is falling fastest. Plus, we talk about all of the misleading advice from idustries with commissioned salespeople. Do you have to withdraw from a Roth 401k. Tom asks Don about the latest Florida Hurricane. We share JPMorganChase CEO's Jamie Dimon's thoughts about cryptocurrency. We follow that with the story of Michael Saylor's multi-billion dollar BitCoin bet. We also hear from listeners:
What are the tax consequences of realizing capital gains in an IRA product?
Thanking us for what we do.
Can you choose with type of 401k account from which you take withdrawals at age 72?
Looking for more information about Series I bonds.
Does it make sense to get a HELOC to buy stocks?
Learn more about your ad choices. Visit megaphone.fm/adchoices
Real estate prices can fall. That truth is becoming obvious as we learn that the Seattle area is falling fastest. Plus, we talk about all of the misleading advice from idustries with commissioned salespeople. Do you have to withdraw from a Roth 401k. Tom asks Don about the latest Florida Hurricane. We share JPMorganChase CEO's Jamie Dimon's thoughts about cryptocurrency. We follow that with the story of Michael Saylor's multi-billion dollar BitCoin bet. We also hear from listeners:
What are the tax consequences of realizing capital gains in an IRA product?
Thanking us for what we do.
Can you choose with type of 401k account from which you take withdrawals at age 72?
Looking for more information about Series I bonds.
Does it make sense to get a HELOC to buy stocks?
Learn more about your ad choices. Visit megaphone.fm/adchoices
For the second time in a row, investors have faced a second 20%+ decline in 2022. What happened and what does it mean to you? With stocks down and bonds down, at least that bear market protecting, inflation hedging asset class, gold, must have bailed you out? Right? Think again. So, how are those complaex hedging type mutual funds done? Find out. Plus, we talk about both hurrican and market panic. Then, we take your calls:
What happened to your podcasts in mid-September?
How to buy treasury securities on their initial offering?
How does the "wash sale rule" work and how to define a "substantially identical" security.
Is AVUV worth the higher fees compared with a pure small cap value index?
Learn more about your ad choices. Visit megaphone.fm/adchoices
For the second time in a row, investors have faced a second 20%+ decline in 2022. What happened and what does it mean to you? With stocks down and bonds down, at least that bear market protecting, inflation hedging asset class, gold, must have bailed you out? Right? Think again. So, how are those complaex hedging type mutual funds done? Find out. Plus, we talk about both hurrican and market panic. Then, we take your calls:
What happened to your podcasts in mid-September?
How to buy treasury securities on their initial offering?
How does the "wash sale rule" work and how to define a "substantially identical" security.
Is AVUV worth the higher fees compared with a pure small cap value index?
Learn more about your ad choices. Visit megaphone.fm/adchoices
Don is slowly mending as the podcast maintains a shortened schedule of three to four episodes a week. There will be no videos for the nest few weeks.
Today, is the American retirement system broken and what can you do to avoid poverty in your final years? PlUs, a reformed stockbroker wonders about using actively managed funds to create an income portfolio? Learn more about your ad choices. Visit megaphone.fm/adchoices
Don is slowly mending as the podcast maintains a shortened schedule of three to four episodes a week. There will be no videos for the nest few weeks.
Today, is the American retirement system broken and what can you do to avoid poverty in your final years? PlUs, a reformed stockbroker wonders about using actively managed funds to create an income portfolio? Learn more about your ad choices. Visit megaphone.fm/adchoices
Don and Tom consider the question that plagues many during times after markets have lost money: Is it a bad idea to retire from work in a bear market? Should you go after a "guaranteed" 9% return? Then, on to your questions:
What do we think of an "advisors" advice to use American Funds in lieu of Vanguard funds?
How much can a working teenager contribute to a Roth?
How can money be given to grandkids and yet protected being used too early?
Is her bank advisor actually a fiduciary and how do they make money?
Learn more about your ad choices. Visit megaphone.fm/adchoices
Don and Tom consider the question that plagues many during times after markets have lost money: Is it a bad idea to retire from work in a bear market? Should you go after a "guaranteed" 9% return? Then, on to your questions:
What do we think of an "advisors" advice to use American Funds in lieu of Vanguard funds?
How much can a working teenager contribute to a Roth?
How can money be given to grandkids and yet protected being used too early?
Is her bank advisor actually a fiduciary and how do they make money?
Learn more about your ad choices. Visit megaphone.fm/adchoices
Don returns to the mic and explains his recent surgical absence (and catches some flack for his disdain for emergency room procedures). Then, we discuss the recent improved performance of active mutual fund managers. Could it simply be luck? Plus, Robin Hood is creating a stupid trader index.
From there we take listeners questions:
When should a 529 plan be funded?
Immediate joint annuity...?
Moving money to Fidelity. How should he switch to indexes.
Learn more about your ad choices. Visit megaphone.fm/adchoices
Don returns to the mic and explains his recent surgical absence (and catches some flack for his disdain for emergency room procedures). Then, we discuss the recent improved performance of active mutual fund managers. Could it simply be luck? Plus, Robin Hood is creating a stupid trader index.
From there we take listeners questions:
When should a 529 plan be funded?
Immediate joint annuity...?
Moving money to Fidelity. How should he switch to indexes.
Learn more about your ad choices. Visit megaphone.fm/adchoices
Program note: We apologize for the delay in getting this episode posted. Don had a major medical emergency on September 9th that both kept him from doing the show and caused him to undergo some intensive surgery on Monday. Thanks so much for your understanding. What is the diffrenece between stocks and bonds and why do you need those boring bonds? He also discusses the power of broad diversification and a long period during which owning the S&P 500 alone was disasterous. Plus, Tom takes questions: Another call about I-Bonds How do we view REITs? Thoughts on a Social Security withdrawal strategy? Learn more about your ad choices. Visit megaphone.fm/adchoices
Program note: We apologize for the delay in getting this episode posted. Don had a major medical emergency on September 9th that both kept him from doing the show and caused him to undergo some intensive surgery on Monday. Thanks so much for your understanding. What is the diffrenece between stocks and bonds and why do you need those boring bonds? He also discusses the power of broad diversification and a long period during which owning the S&P 500 alone was disasterous. Plus, Tom takes questions: Another call about I-Bonds How do we view REITs? Thoughts on a Social Security withdrawal strategy? Learn more about your ad choices. Visit megaphone.fm/adchoices
Program note: We apologize for the delay in getting this episode posted. Don had a major medical emergency on Friday that both kept him from doing the show and caused him to undergo some intensive surgery on Monday. Thanks so much for your understanding. He plans to be back for the Saturday show and subsequent episodes. Tom uses the passing of Queen Elizabeth to make a point about investing consistency. Do you know your retirement number? Can you really retire in a recession? Can iBonds be used in retirement accounts? What should be done with low interest rate credit union money? Learn more about your ad choices. Visit megaphone.fm/adchoices
Program note: We apologize for the delay in getting this episode posted. Don had a major medical emergency on Friday that both kept him from doing the show and caused him to undergo some intensive surgery on Monday. Thanks so much for your understanding. He plans to be back for the Saturday show and subsequent episodes. Tom uses the passing of Queen Elizabeth to make a point about investing consistency. Do you know your retirement number? Can you really retire in a recession? Can iBonds be used in retirement accounts? What should be done with low interest rate credit union money? Learn more about your ad choices. Visit megaphone.fm/adchoices
Don and Tom and John Rekenthaler share some lessons learned about the latest hot boutique funds. Then we take some questions:
Which mutual funds should be used in new Fidelity IRAs?
What's a good ETF in which to park tax loss assets?
Learn more about your ad choices. Visit megaphone.fm/adchoices
Don and Tom and John Rekenthaler share some lessons learned about the latest hot boutique funds. Then we take some questions:
Which mutual funds should be used in new Fidelity IRAs?
What's a good ETF in which to park tax loss assets?
Learn more about your ad choices. Visit megaphone.fm/adchoices
Sure, you might correctly guess the future direction of the stock market once, but can you do it every time? Then, we hear from a bunch of listeners:
One shares a great Vanguard experience.
Another with some really bad investments.
Are Vanguard and few other fund groups facing government intervention?
We hear about the elcetic concept of private foundations avoiding RMD.
Must money be in Roth for five years before withdrawals?
Finally, what do we think of the Fidelity Zero funds?
Learn more about your ad choices. Visit megaphone.fm/adchoices
Sure, you might correctly guess the future direction of the stock market once, but can you do it every time? Then, we hear from a bunch of listeners:
One shares a great Vanguard experience.
Another with some really bad investments.
Are Vanguard and few other fund groups facing government intervention?
We hear about the elcetic concept of private foundations avoiding RMD.
Must money be in Roth for five years before withdrawals?
Finally, what do we think of the Fidelity Zero funds?
Learn more about your ad choices. Visit megaphone.fm/adchoices
We start with off-topic discusssions about holidays and changes in office work. Then we discuss a concern that many share: Can I afford to retire? Plus, we question a retirement portfolio suggestion. We hear from listeners:
About Vanguard's declining level of customer support.
Wondering if Tom remembers him?
Bashing us for bashing crypto.
It was a holiday.
Learn more about your ad choices. Visit megaphone.fm/adchoices
We start with off-topic discusssions about holidays and changes in office work. Then we discuss a concern that many share: Can I afford to retire? Plus, we question a retirement portfolio suggestion. We hear from listeners:
About Vanguard's declining level of customer support.
Wondering if Tom remembers him?
Bashing us for bashing crypto.
It was a holiday.
Learn more about your ad choices. Visit megaphone.fm/adchoices
Don discover a number of articles in Entreprenuer magazine that seem to be created from the same formula by a stock "research" firm in Kalkota. Plus, a comment of our tax-free investing advice.
Tom and Don take a look at a couple of popular investnents that no one needs; buffer funds, private real estate. Then a listener wonders how to get into Dimensional Funds' products?
United Healthcare has been using expensive funds in their 401k plan. Should they have looked for cheaper products? Looks like a court will decide. Then we take lots of listener questions:
Is Vanguard getting out of mutual fund business?
How do ETFs work and why use them?
What might happen to a company when all shares are held internally?
Will savings rates ever get reasonable again?
How do Treasury Bills work?
Must IRA accounts have beneficiaries named?
As the market collapsed again, how bad has the market actuall been for real investors? Then, what should you do with your student loan forgiveness? How do you pick the right mutual funds? We share the latest chapter in the AMC meme stock stupidity. Listeners ask:
Does it make sense to tax-loss harvest in tax-advantaged accounts?
How long does the IRS expect us to live?
Don spends another day answering listeners questions:
What to we think about market timing?
How can he add small and emerging markets with a mediocre 401k?
What is the worst case scenarion for an I-Bond buyer?
What is a basis point and is Tom caffeinated?
Can a retored spouse have a Roth IRA and Personal Capital's new savings account?
What should be done with next year's Roth contributions?
We explore one of those lists of the "best" financial "advisors." What makes this list of commissioned brokers the "best" wealth managers? We ask and answer that question. Plus, listeners want to know what to do with a bunch of Microsoft stocks and what is the difference between Dimensional and Avantis? Also, check out the video version at YouTube.com/talkingrealmoney
Tom is back. First, we discover that active mutual funds can pick their own securities benchmarks against which they are compared. Now, it appeard that insitutional fund managers are setting their own performance targets to increase performance bonuses. A listener wonders if Social Security can be considered part of a fixed-income portfolio?
Don't like the way your active mutual fund compares to the competition? No problem. Just pick a better benchmark. It's perfectly legal and very effective at misdirecting investors. Don also considers the arguments that index funds are un-American. Yet, only a tiny percentage of active funds beat the indexes. A caller wonders if annuities are guaranteed and what to do with them? What's the best way to fund retirement accounts for young children? How could Wellington and Wellesley be recreated with index funds? In which accounts should bonds be held?
Don dives into one of his biggest issues with the financial services industry. Many insurance companies are lying their way into the retirement plans of educators, medical workers, and public employees and sucking out HUGE fees. That's not conjecture, it's fact. Even worse the teachers unions are more than complicit. They actively promote expensive annuities to their members. Then onto the questions:
Where can the most recent IRS mortality tables ne found?
Does al all value portfolio make sense?
What should be done with an old fixed annuity?
Thanks for all the great questions. Here's what Don answers in this episode:
How should bonds be added to a portfolio?
Is it time to abandon the sinking ARKK?
Does Crowdstreet look like a good investment?
Will a 70-year old employee face any emergency 401k penalties?
Are these advisors always fiduciaries?
Any apparent problems with this 60/40 portfolio?
Today Don dives into Morgan Stanley's form ADV and a sample crokerage statement to try and help you understand how much you might be paying for investing advice. Be sure to watch the video to get the visual details at youtube.com/talkingrealmoney
Taken from the pages of New York magazine, Don shares the tale of two hot-shot "kids" whose greed nearly killed cryptocurrencies. If you haven't heard of Three Arrows Capital before, you will soon. This is an incredible story of greed gone wild and how it can destroy investors fortunes (again).
Plus, a caller wonders if his income allows for IRA contributions.
Tom's all alone again and discusses the foolishness of taking celebrity investing advice.
The he takes questions on:
- The best places to invest for stability?
- Which is better: Roth or traditional 401k?
- How to get started with a 529 education plan?
- When should you start taking Social Security?
Tom's on duty as Don takes his final vacation of the summer. In this episode, Tom discusses the silly idea of making investment decisions based on the news and what you should do instead. He also shares the recent movement of various securities.
Then he takes your questions:
- Should investors have short, intermediate, and long-term bond buckets?
- Do Oppenheimer and Ameriprise act as fiduciaries?
- How can mutual fund shares be split among heirs?
A recent study shows that brokers with a disciplinary history tend to go into the insurance industry. We explain what a "35% bonus" on a complex annuity product really means. Has an insurance agent ever disclosed the total commission paid on annuity products. Then, the callers keep us in the insurance product groove with questions about:
The value of a universal life policy for savings.
Does it make sense to move a 401k into an annuity?
Does it make sense to convert a pension payout to an immediate annuity?
A study shows that a large percentage of Americans don't understand stocks. Then, we hear from a bunch of listeners:
- Is an advisor likely making a decent suggestions?
- Does it makes sense to extend a "target date" to make a portfolio more aggressive?
- A "friend" suggests moving a government deferred compensation plan to his brokerage firm.
- Is his fiduciary charging extra fees?
Don's taking your questions again:
- What does it take to sell an RTF?
- In which funds can money from VT be parked to avoid wash sale rule?
- What's the story of JEPI (a complex ETF from JP Morgan)?
- Are ETFs an better deal than Fidelity's Zero funds?
- In which ETFs should rebalanced assets be invested?
- Should retiring wife keep her money with Empower?
Don and Tom discuss an all too common problem, reaching age 65 without enough money to live comfortably. What can you do if you find yourself in this situation and how can you avoid it.
Plus, a listener comments on Don's brother's death and Don share a couple of minutes from his memorial.
A listener wonders if a great 38-year track record makes a fund a buy? Tom and Don explain why looking at historic returns can be problematic.
Tom shares some advice he gave a friend who "came into money."
You can't know the future. So, what do you do, then? Tom has some ideas.
Then, Tom takes questions:
- What is the impact of a government pension on Social Security payments?
- What do all of those letters at the end of mutual fund names mean?
- What are the benefits of third-party trusts?
- What should be done with a costly short-term bond fund?
- Is a short or intermediate bond fund better?
- Can assets be moved tax-free into a donor-advised fund?
What should you do with a big jackpot? Tom is joined by Social Security expert Tom Margenau who explains how the Social Security might be saved and answers listeners questions.
Happily, Don is back in the studio taking your wonderful questions:
- Why are we being so hard on annuity salespeople?
- Will Voyager Digital customers get their money back?
- How will I-Bond rates change in the future?
- What are some Fidelity fund alternatives for 529?
- Should he sell some stocks to take tax losses?
Tom and Don discuss an article filled with tips to help you retire at a younger age. Some a great, others not so much. Should you even consider early retirement. Plus, Don shares a unique tribute to his brother (to get the full effect watch our video on YouTube).
On a day when some crypto prices rose over 15%, we dive back into the crypto controversy with stories of Bit Boy (not Bat Boy) and Celsius (not the temperature) in this episode. Why do people keep buying into this insanity? Is there any credible cryptocurrency advice?
Please forgive the audio quality. We had a glitchy live Saturday show.
Once again, we discuss the latest scandal involving the misleading sale of annuities in teachers retirement plans (again). The bottom line is the fact that those who sell investments don't want you to know what you are actually paying them. However, there are a very few financial advisors who disclose costs up front. Plus, are financial publications becoming shills for salespeople?
Listeners ask:
- Is there anytime when buying a commissioned myutaul fund makes sense?
- What do we think of his portfolio?
- Did a broker mistreat an older client with an annuity sale?
- Which bond fund do we prefer?
As real estate prices have been slipping recently, what should home owners do now? Plus, has real estate ever been a generally great investment? Plus, we had a few technical difficulties trying to connect Don while he was traveling.
Then we take some questions:
- Over how much time should you compare investments?
- How do you pick mutual funds?
- What is sequence risk and how does it weffect real investors?
- Does it make sense to take annual retirement distributions?
- What are our thoughts on brokered CDs?
Don is on vacation and Tom discusses our number one question: I just came into money, so how should I invest it? Of course, everyone wants high returns with no risk. Investors went from buying hot stocks from fear of missing out (FOMO) to fear of holding on (FOHO), ignoring the fact that stocks are now on sale.
Listeners ask Tom:
- What should be done with some old American funds in the current market?
- Should an RMD strategy change based on market conditions?
- Does it makes sense to more aggressively invest assets destined for inheritance?
- How can an inherited IRA be moved to a new custodian?
With Don on vacation, there will be fewer episodes this week.
Almost everything costs more including chickens and, yes... eggs. However, stocks and bonds are lower. Today, Don leaves his post to loaf in the Georgia mountains, forcing Tom to take the reins. Later, Paul Merriman joins Tom to discuss how the markets should impact your investments.
A listener shares a strategy to reduce required minimum distributions.
Should a mortgage be paid down early?
Since bear markets can't be predicted, how can you get your portfolio ready for the inevitable downturns. Tom and Don share the wisdom of Dimernsional Funds founder, David Booth.
Plus, they take a question on the best way to invest $30,000 languishing in a CD?
Scams of various kinds have been proliferating. We talk about some of the worst ones and how you can avoid being ripped off.
Plus, a listener wants to know if a reverse mortgage makes sense for them.
How much emergency cash might you need and where should you keep it?Then, we talk about all the extreme metaphors for bad events (like "Black Swans").
Then we hear from our listeners:
What's the best way to invest very simply with Vanguard?
What the heck are these 9% I-Bonds?
Finally, whay are we so negative about those "innovative" cryptocurrencies?
This is a very strange episode. In addition to the personal tribulations that Don has been facing, we get more than our share of "unique" callers.
Our main topic is the market, particularly all of the mistaken signs that are believed to point to an imminent change. Tom shares a different kind of market analogy. Then on to the callers discussing:
- The best way to take a distribution from a non-qualified retirement plan?
- A strong distate for the "government."
- Who knows, because "Dave" left the phone off the hook.
- Complaints about the system that reduces Social Security payments for those who have some types of pensions.
A holiday shortened week led to fewer questions:
- A woman believes she and her husband were pressured to invest in bad investment.
- Can an inherited IRA avoid distributions for 10 years?
- Does it make sense to keep a short-term bond fund in a taxable account?
Plus, Don shares a tough personal story.
So many "financial advisors" will say almost anything to get you to rollover your 401k or 403b to them. The most egregious of those are peddling annuities inside IRAs (a HORRIBLE idea). Will a new Labor Department rule requiring greater disclosure reduce the abuses?
A listeners wonders why Don hates Cathy Wood (of Ark Innovation).
Finally, Eli has a beef with Grandpa Tom over his 529 plan. You really need to see the video (youtube.com/talkingrealmoney)
Entrepreneur magazine should be ashamed for publishing an "article" by an annuity peddler. Plus, how does this salesman's website offer a 3% guaranteed interest rate?
Then, our holiday caller fest continues with:
- A listener who shares his misleading annuity sales pitch.
- How should a portfolio be structered to add small cap?
- Does a retired military member need long-term care insurance?
- What is the difference between TIPs and I-bonds?
Holiday weekend shows typically feature few callers. This year's 4th of July weekend was unusual.
Lots of calls:
- How does one move from a 401k into self-guided investing?
- What should be done with wife's Long-term care policy?
- Does it make sense to move to a longer maturity target-date fund?
- How should a portfolio be allocated for long-term care purposes?
- Should an aggressive investor move into all stocks?
- A caller complains about our opinions on long-term care insurance.
Plus, Don sneaks in a couple of dad jokes about money.
This week, Don covers the following questions:
- Is there something better to do with the money that should be in bonds?
- What's the best interval for retirement withdrawals?
- How should parents invest after leaving a bank broker?
- Is this a good stocks?
- Are ETFs dangerous and how to read a RisQuiz?
How bad were the first six months of 2022 for investors? It really depended on how you invested. Plus, Tom and Don take a question from a listener who has lost 35% off his investments.
A combination of bad match and magical thinking have created hugely underfunded pension plans. Rather than solve the problem rationally, plan managers are stretching for unlikely additional returns while increasing costs.
Plus, a listener wants to know if it makes sense to extend the maturity of a target-date fund?
Several of the the past decades most popular stocks have gone from fast growing to undervalued. Yet, another case for diversification. Plus, Don shares the real story of the return that most of Ark Innovation ETF investors received.
Listeners want to know:
What should be done with an unneeded required minimum distribution?
Is her financial advice provider really acting as a fiduciary?
Will the RMD age be increased to 73 this year?
Can their non-retirement plan investments support them until Social Security?
How can you know which ETFs are actively managed?
Tom and Don move from creating wealth to creating the income needed to retire comfortably. They discuss determing your income needs and income strategies that have worked and failed.
Plus, they take questions on buying bonds through Treasury Direct and when the IRS considers a couple married for tax purposes.
Thanks! Don is able to tackle a slew of great questions again:
- In which account should new bond investments be made?
- How should an investor reduce equity risk?
- What kind of account does he have at TIAA?
- With rates rising does it still make sense to avoid paying off a mortgage?
- Can index funds be lend out?
Investing newsletters are both a waste of money and massively ineffective in real life circumstances. Plus, a listener fears rebalancing in the current market.
Tom and Don discuss the scary "sequence of retrun risk" concept and share the best ways to stop worrying about the state of the market when you retire.
Plus, we take questions about:
- American Airlines consolidated 401k plan.
- Robert "Rich Dad" Kiyosaki.
After posting fast, furious, triple-digot returns the Ark Innovation ETF attracted billions of dollars. Since then, the bulk of the funds investors have lost a lot of money. Even those in for the fund's history haven't done all that well considering the risk they took.
Then, Don talks with listeners:
- How can investors determine if they're dealing with a true, 100% fuduciary advisor?
- He spends a lot of time with someone who appears to have a really bad financial advisor.
- How do heirs get started handling a complex estate.
- What are reasonable fees for financial advice?
Today's episode was supposed to just be about the mistaken belief that gold and precious metals are invesment vehicles. However, with Bitcoin dropping below $18,000 on Saturday, Don decided to start with what he believes is the beginning of the end of cryptocurrencies.
Then, Don takes listeners questions:
- During the declining stock market of the 1930s, how much longer did inflation make the recovery time?
- What should be done with a Fidelity managed account?
A hot June has led to a severe question drought. Thankfully, a combination of Elon Musk, a fake crypto currency, and a huge lawsuit lead to a fascinating episode.
Our only question:
- How much small cap value should be in a portfolio?
We devote this entire episode to understanding investing risk. Learn how to judge the type of risk, know how much risk you need and are able to take, and how to manage your portfolios fear factor. Plus, we show you how to take our free RisQuiz.
Indexed annuity sales are heading for record highs as investors search for the elusive (actually, non-existant) no-risk investment. The insurance industry appreciated your naïveté.
Plus, we hear from a listener who is his own worst investing enemy.
Investing news has been depressing. It looks like we have just experienced a bear market. Had you invested properly, you probably wouldn't have experienced a true "bear."
Corporate auditor investing update (from a call yesterday).
Then, we're off to the questions:
- What should be done with the account of 92-year old that was invested badly?
- How do we create portfolios for our clients?
- What should be done with the proceeds from Dad's house sale?
- How should a pile of cash be invested?
Plus, a purveyor of poor puns praises Tom's humor.
It seems that every person who provides financial advice these days claims to be a fiduciary. Yet, the fact remains that very few are ALWAYS required to act as your fiduciary. That means that many who claim to provide pure fiduciary advice a actually partial prevaricators. In today's episode, we tell you exactly how to get 100% fiduciary advice (if you have the courage to ask tough questions).
Plus callers want to know:
- Our opinions of an I-bond buying strategy?
- How corporate auditors can invest?
- Why an advisor would suggest a US and an international fund over a global fund?
Here are the questions for this episode:
- Do I need more than one mutual fund?
- What do we think of the new TSP mutual fund program?
- What is the right percentage to save for retirement when you're young?
- What is a "price improvement" on a Schwab statement?
We tend to believe that real estate is a great investment. Yet, in much of the country real estate prices have been stagnant for many years.
Plus, a listener lets us know we were right.
In this episode we explore a few of the biggest mistakes we make as investors and how to avoid them.
Then we are inundated with listeners calls:
- How accurate are Social Security earnings estimates?
- What should a son receiving a large inheritance do with the money?
- How to invest in the decumulation phase of life?
- Why should investors avoid actively managed funds?
- What do we think of a particular fund at Vanguard?
- What are I-Bonds and what do we think of them?
A large part of the poulation is saving little or nothing for retirement. What can be done to encourage saving and investing. Plus, in the worst case, where might you be able to survice on nothing more than Social Security benefits?
A caller wants to know what we think of a planner's advise to take out a home equity line of credit instead of spending assets.
We are finally catching up with our question backlog:
- How to choose between a T. Rowe Price and a Vanguard fund?
- What if we're about to enter a bear market?
- Does this 529/I-Bond strategy make sense?
- Should I fire my Vanguard advisor and which small cap value fund might be best?
Can you actually get rich quickly? The financial media uses your greed to attract you to advice that MIGHT make you rich... eventually?
A sizable portion of near retirees are delaying retirement over inflation and economic fears. Do you have what it takes to retire and whose investing advice should you follow?
FROM OUR AUDIO ARCHIVES (In other words: This is an OLD episode that hasn’t been heard in over five years).
Please do not call the phone number in podcast. Use 855-935-8255 instead.
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It sounds like everything everyone wants in an investment. Stock market returns with no risk! What could be better than these equity-indexed annuities? Almost anything, actually. Don explains, in detail, what an indexed annuity is likely to return in the real world – not some hyped-up sales pitch – and it's not pretty. Plus, Tom and Don discuss real estate as an investment, when to take Social Security, and much more.
Retiremeet (and Don's short film) are now behind us. Don takes a ton of your questions:
- What's the best way for an executor to distribute IRA assets to heirs?
- What kind of firm is Postal Benefits Group?
- How should fixed-income assets be allocated in a 529 to be used soon?
- Does a Fidelity SMA make sense?
- Can tax losses be carried forward without taking the $3,000 income deduction?
- How does Tom's advice sound so much like Paul Merriman's
- Why is the latest inflation rate showing for I-Bonds?
After markets have made big moves we think we know where they will go in the future. However, we're usually wrong. Plus, a listener questions our negative opinion of cryptocurrencies.
How much money does it take to be rich? You seem to think it's a loss less than we imagined. Tom and Don talk about wealth and deriving income from it in retirement.
Then on to questions:
How to find an fiduciary advisor in Alaska?
What do we think of an Vanguard advisor's allocation advice?
Why should you own bonds? While stocks have both risen and fallen dramatically, bonds have tended to fluctuate in a very narrow range.
Plus, Don takes listener questions:
- Do we like cryptocurrencies like BotCoin?
- Does a portfolio need foreogn real estate or bonds?
- Is it time to wait a few months before investing?
- Should his wife go with this "nice" financial advisor?
As we approach the edge of a "bear market," many investors are ready to throw in the towel. What should you do? Let the past and your situation be your guide since you CANNOT predict the future.
Then, we answer one of our favorite questions: Is my advisor always required to act as a fiduciary?
A caller decides to ignore the market during these troubled markets, but what should he do with his money now?
We read a note from someone wanting to come on the show to promote a risky real estate venture.
A listener asks if he has to make estimated tax payments on a big capital gain?
Is there any benefit to a traditional IRA if you make too much for a deduction?
FROM OUR AUDIO ARCHIVES (In other words: This is an OLD episode that hasn’t been heard in over five years).
Please do not call the phone number in podcast. Use 855-935-8255 instead.
Also, the ads and other information may not be accurate at the time you listen.
Is your adviser acting your best interests? You may be surprised to learn that the only financal advice providers who are required by law to act as a fiduciary are "registered investment advisors." Most are "dual registered" meaning sometimes they have to provide advice that is best for you. Most of the time, they are only required to provide suitable advice.
With stocks and bonds sinking in value what should an investor do? Tom shares his advice and answers some listener questions:
My target date fund is down, what should I do now?
Should all of a bond portfolio be invested in the TSP "G" fund?
We have always been huge fans of the work of the later John Bogle, founder of Vanguard. We had the opportunity to spend time with him on several occasions. Bloomberg's Eric Balchunas also spent many hours with "Jack" Bogle in the years prior to his death and compiled his acheivements and wisdom into a fascinating book.
Another episode from Retiremeet in Bellevue, WA.
For some strange reason, another big bank declares the 60/40 portfolio dead (again). We disagree. Plus, is the bear market over or does it continue? How can you ride out any kind of market?
Then we hear from callers:
Why haven't the Fed's actions controlled inflation?
What should children do with old 401k plans?
What should be done with grandfather's old, run down home?
More questions about I-bonds?
Don and Tom broadcast live from our annual Retiremeet event in Bellevue, WA where we take listeners questions on:
How can a 78-year create and income from a small portfolio?
- What do we think of Del Walmsley's real estate system and LeveragedPlanning.com?
- What should be done with an IRA at Wells Fargo?
- Would it be a good time to sell and investment property?
- How can you adjust the income calculation in a retirement calculator?
- How can she retire early?
Don heads out to Seattle for Retiremeet and his new edition of "Financial Fysics" is hot off the press. So, Don whips out his traveling mic and Tom interviews him about the book.
Your financial advisor may appear to be independent of the large insurance or brokerage firms. Most aren't. How can you find an independent, 100% fiduciary advisor?
Plus, we answer a question about the future direction of interest rates and bond prices.
How many stocks do you need – and how many should you have – to diversify enough to reduce volatility?
Plus, we take a question from our favorite listener in Poland.
Note: This episode was was edited and posted from an aircraft in flight.
Is it better to take the lump sum pension buyout option or the monthly pension. It all comes down to how long you expect to live.
Beware or "financial advisors" (insurance salespeople) who want to place your lump sum into an immediate annuity.
We take your questions:
- What is so great about Warren Buffett?
- Can investment property gains be protected from taxes and how should they be invested?
- How long should it take for money to show up in a brokerage account?
- What happens to Social Security payments if you keep working past age 70?
Some folks with a vested interest in active money management, like ARK's Kathie Woods, want to convince you to stop investing in passive and index-style funds. Their argument is a bit spurious. Then, we address the financial market elephant in the room.
Listeners want to know:
How do US treasury notes work?
Should a coworker rebalance her portfolio.
Our number one question: What should I do with a bunch of new money?
FROM OUR AUDIO ARCHIVES (In other words: This is an OLD episode that hasn’t been heard in over five years).
Please do not call the phone number in podcast. Use 855-935-8255 instead.
Also, the ads and other information may not be accurate at the time you listen.
Paul Merriman joins Tom and Don again and spends some time talking about investment confusion. Find out how to seek our the rarest of investment advisors; those who are always required to act in your best interest.
Don takes on a batch of great questions:
- What's the best allocation strategy for retirement?
- Where can a small firm go for a company retirement plan?
- A teacher with a bad 403b wants to help his fellow employees get a better plan.
- What if you have a big deposit made into a bank just as it fails?
- What to do when your portfolio suffers from a bad case of hodgepodgitis?
- When does the rate adjust on Treasury I-Bonds?
The situation appears dire. Inflation is rampant. War rages. Stocks are down. Bonds are down. What should you do now? Although you probably know the answer, Don and Tom will tell you again.
Plus, we answer a question from a great saver on allocating assets between retirement accounts
Let's think about this: Young people with no investing experience love Bitcoin. Two of the most experienced investors in history believe it isn't even worth $24. Who should you believe?
Plus, Tom and Don take questions on:
- Does this advisor appears to be a fiduciary?
- Why do "experts" suggest taking Social Security at age 70?
Tom's still on vacation. With so many calls left from yesterday's episode (Saturday's show), Don started with callers who had been on hold:
- A relatively safe portfolio and how to invest it for inflation.
- What should his grandmother do with the money that will probably be in her estate?
- A couple with Wellington and Wellesley wonder what to do with them?
- Does an irrevocable trust make sense?
- How does Avantis Small Cap Value ETF compare with Vanguard's similar mutual fund?
- Finally, Don explains Treasury I-Bonds?
Tom's on vacation. Yes, the stock market has been painful lately, Don shows you how to make investing less painful. Later, he talks about all of the shows featuring people who do or say anything for a buck and what it says about the investing industry.
Plus, Don takes your calls:
A financial "advisor" suggests that a huge chunk of money be invested in a variable annuity.
What are the particulars of Treasury I-Bonds?
With the market down, does a home improvement HELOC make more sense that selling stocks?
How do you measure an advisor's performance?
Don takes on a ton of your questions and they're really good ones like:
- Does it make sense to have a lot more invested in small cap value stocks?
- Will there be downloadable materials at Retiremeet online?
- Am I on track for an early retirement?
- Why is my DFA ETF performing so differently from S&P 500?
- Do these alternative investments have a place in a portfolio?
- What information is needed to transfer portfolio to new advisor?
- Do I have the right portfolio allocation to retire soon?
- Should money for a future house down payment be moved from savings to stocks?
- What do we think of dad's investment recommendations?
What should you do when everything is down? Tom and Don have some advice.
Plus, a listener wants to know the best way to convert IRAs into Roths.
Here's a bad idea from Fidelity: Gambling with your retirement savings.
Then we take your written questions and comments on:
- Setting up an ABLE plan.
- Lending out your stock through TD Ameritrade.
- What's the best way to convert regular retirement accounts into Roth?
- Does it look like this advisor's fees are reasonable/
- Finally, we address a comment from someone who believes he knows future interest rates.
We discuss the realities of short-term, safe investment returns. Why are money market funds still paying so little? Where can you find the highest savings rates?
We wanted to go on from here, but a technological glitch created a strange end to show.
Investment prices never have – and never will – move up in a steady, straight line. As much as we would like to only be invested after prices HAVE risen, that just not possible. The only way to invest is to plan for the inevitable declines. Plus, you must avoid looking at your portfolio.
Then we hear from listeners about:
- Transferring I-Bonds after death.
- How I-Bonds work?
- What is the difference between two similar Vanguard products, a mutual fund and an ETF?
- Which asset classes should be used and in what percentages?
- How to find a local 100% fiduciary advisor?
Finally, we discuss why most people have lousy financial advisors.
Economist and prolific author, Larry Swedroe, joins Tom for a special Earth Day episode to explain ESG investing and much more.
There are no investments without risk. However, some bond investments have done really badly, lately. You need the right kind of fixed income in your portfolio. Plus, Treasury I-Bonds will be yielding almost 10% for at least a few months. Then, a short question: Do we believe AAII is a good educational resource?
Tom and Don dive into your questions and comments again:
- Why do we dislike some of Paul Merriman's suggested ETFs?
- How should a $100k IRA be invested for a 3% income?
- A retired CPA comments on the podcast, its hosts, and Don's daughters.
- Should an old 401k and 457 be moved?
- Investing in Doge Coin, trading pot stocks, lottery tickets? Actual question: What do we think of the funds in a 401k?
Quit trying to find the best return and try creating a financial plan instead. Paul Merriman joins Tom as Don took a few days off. Paul shares his research on small cap value investing. Why most Americans are financially illiterate and how financial knowledge can improve lives.
Callers look for advice on:
The best way to take retirement withdrawals?
Do ETFs make sense in a tax-advantaged account?
What should be done with the proceeds on a real estate sale?
Don takes the weekend off. Before welcoming Paul Merriman, Tom shares a tale of bad Mexican food in Arizona and how it relates to money. Later Tom and Paul talk about the current markets and how to invest today.
Then they take a lot of calls about:
How to invest for grandkids?
In which accounts should various asset classes be held?
How to invest for early retirement?
Is mom's account being properly managed?
FROM OUR AUDIO ARCHIVES (In other words: This is an OLD episode that hasn’t been heard in over five years).
Please do not call the phone number in podcast. Use 855-935-8255 instead.
Also, the ads and other information may not be accurate at the time you listen.
Despite what you have been led to believe investing and speculating are not synonymous. You need to know that:
- The future is not predictable.
- If you try to pick individual stocks, you are gambling.
- Gold is not an investment.
- Real estate is not a great Investment (it can be a good job).
Welcome to Friday on a Thursday. Don tackles listeners questions and comments prior to the holiday weekend:
- Praise for the free professional advice we provide everyone.
- After receiving $100,000 can she afford to retire?
- Are these good bond ETFs?
- When should an investor harvest tax losses?
- Is a portion of immediate annuity income tax-free?
- When and how should an advisor be fired?
The Wall Street Journal touts the past years best mutual fund. However, what is the most likely reason for any fund beating its peers over a siingle year? We bet you know.
Plus, a listener looks for our opinion on "momentum " funds.
Our minds can often be manipulated to improve behavior, In this episode Tom and Don share a simple way to frame retirement saving to make it more emotionally palatable.
Plus, we take a ton of your comments and questions like:
- Listening to the podcast destroys a man's bliss as he learns about evil "C" share mutual funds.
- What should be done with an old HSA?
- What is the difference between two Avantis emerging markets ETFs?
- How to find a firm to manage a trust?
- Are estimated taxes owed on a Roth conversion?
More foolish future predictions: Some had said that the 60% stocks, 40% bonds portfolio was destined to fail. Now, it seems that the reports of the balanced portfolio's demise were premature.
The we dive into a record number of comments and questions from listeners:
Tom is taken to task over his comments about Chuck Jaffe.
Can an annuity provide a true 7% annual income.
Can contributions be made into any IRA after retirement?
What should be done with an inheritance?
What are the tax ramifications of tranferring an annuity?
What's the difference between variable or indexed annuity?
In today's exciting Q&A session:
- Where should money from options trading be kept for taxes?
- What are the differences between several small-cap value funds?
- How to invest a $100,000 gift?
- How to leave an annuity to great-grandchildren?
- Sold bonds. Where now?
- Help for a British listener?
With the Federal Reserve stating that home prices seem to high, what's next for homeowners and potential buyers.
Plus, a listener asks: What is the risk of keeping more than the FDIC limit in a single bank?
FROM OUR AUDIO ARCHIVES (In other words: This is an OLD episode)
Please do not call the phone number in podcast. Use 855-935-8255 instead.
Also, the ads and other information may not be accurate at the time you listen.
Don's sad to see a good financial column go bad.
Is there is no way to get 7% per year with total safety?
Plus, a bunch of great calls.
Before getting to the money talk, we discuss streaming scam TV programs and one particularly ironic Ukrainian show.
It has not been a great quarter for investors, but how bad was it really?
Then, we take questions like:
New investors funded a Roth and discover they're ineligible.
Can a SIMPLE IRA be moved into another regular IRA?
Should a Roth be invested into a covered call fund?
Is a 1.3% fee for an investment advisor fair and are they a 100% fiduciary?
Would you pay $300,000 for a jeweled tiara? Probably not, right? There are probably better uses for almost a third of a million dollars. So, who in the right mind would pay that much for a virtual tiara? Don marvels at the incredible inaneness of people who seem to have way too much money.
Due to technical difficulties Don take calls alone for a while:
- When should young investors start seriously diversifying their portfolio?
- Where is our advisor interview form?
- Should investments be focused on regular IRA or Roth IRA?
- Who is eligible to buy $10,000 worth of I-Bonds in a household?
- Then, Tom sneaks in to talk about real estate 1031 exchanges?
The hour ends with a discussion about the connection between bond fund prices and the portfolios duration.
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What's wrong with most of the continuing education classes about investing?
Is your class a sales pitch in disguise?
Plus, we discuss a firefighters pension options, explain the value of diversification and much more.
A full episode of recorded questions from listeners including:
- Two different 529 questions.
- In what should a 31-year old saughter invest?
- How should a 403b be transferred?
- Does it make sense to build a bond portfolio with individual TIPs?
- Should a pension be considered as a bond portfolio?
- Is there a custodian for a Solo Roth 401k?
- Can Vestory by Apella serve clients in other states?
We have so many written questions that we needed a special edition to try and catch up. Some of your notes are perspicacious and philosophical. Here are the topics:
- What happens if the United States loses it power position?
- Where should money from a home sale be parked?
- Should Roth conversion taxes be paid from money in a Roth?
- An argument for Ukrania war bonds.
- What if the US stock market did fall 90% as Harry Dent predicted?
- Best way to save for kids weddings?
- Is it mathematically certain that bond interest rates can't rise very far?
One of our favorite people joins us to talk about his new book on monay management, "Stacked."
You're gonna love this rare "Talking Real Money" interview.
Learn why complex, confusing (and expensive) alternative investments like YieldStreet are best avoided.
Plus, we hear from a slew of callers:
- Why can't I-Bonds be passed directly to heirs?
- What are the heirs options for inheriting a 401k?
- Is Raymond James acting as a fiduciary? We look at a couple of their reccomended funds to find out.
- How can a large estate be passed on and yet protected from spendthrift heirs?
- THE QUESTION (again): How can cash be invested for more return, safely?
An avid soccer fan, Tom flies to Orlando for the World Cup qualifying game. Since he was in town, Tom also stopped by Don's studio to do the podcast and a special video (coming in a few days).
In the first hour of the Seattle show we discuss those horrible stock picking games that we believe teach kids to gamble, not invest.
A caller seeks a cure for "hodgepodgeitis."
Then we answer some written questions:
- What is the best split between US and international stocks?
- What should be done with the badly performing Ark Innovation Fund?
- What should be changed with a bond allocation?
We love being scared. There have always been a number of people publishing prognostications of future calamity. One guy in particular, Harry Dent has made a fortune making up stock market predictions. Since 2009, he has told his followers that to expect a stock market crash at any moment. Eight years later, we're still waiting. The good news is that Harry will eventually be right, but a lot of good it will have done.
Plus, we talk about keeping fees low, portfolio diversification, reasons to buy life insurance and much more!
The query episode is back where it belongs. Here's some of what we have this week:
- Best value funds for creating Paul's Ultimate Buy & Hold portfolio?
- At 21, am I diversified enough?
- Does a Solo-IRA make sense and should it be a Roth or regular?
- Comenity Bank wouldn't take his money?
- Do his real estate investments qualify for QBI education?
- Do stable value funds make any sense in 457 plan?
The Motley Fool are click-bait royalty to sell you expensive systems that can't possibly work for average investors. They aren't the only hyperbolic members of the money media.
Then on to listeners questions:
- Will a big surprise capital gain from Vanguard force her out of her Roth.
- Is a high-yield floating rate ETF better than a high-quality short-term n=bond ETF?
Why do so many people still cling to the old-fashioned belief that they are smart enough to outperform the securities markets? There is no evidence that almost nobody has market beating skill. Even if there were those who did, the is no evidence of persistence.
Plus we tackle questions on:
- Rebalancing equity funds.
- Taxes and inherited IRAs.
- Why we don't suggest Fidelity Zero funds?
We share more stories about bad financial advisors. Learn how to find someone who is more likely to look out for you, not themselves.
Then, we get to listeners questions:
- What do we dislike about many Medicare Advantage plans?
- The impossible question asked again: How to keep up with inflation safely?
- Are we heading for 1980s-style stagflation?
- How much can be put in an IRA stis year?
One again, lots of people are scarwed of the market and are waiting to invest until "things feel better" (whatever that means). You will NEVER know when stocks have stopped moving in one direction or another.
Looking for 11% government bonds?
Listeners ask us:
- Our opinion on two active bond funds?
- Can I stop saving so much?
- How to save for possible long-term care?
Tom suggested that Don watch the 2011 movie, "Margin Call" on Netflix. This led us to use the movie to help explain the Crash of 2008 and Wall Street's true intentions.
Then, we take questions from listeners:
- Is it better to contribute to a Roth or regular IRA?
- Why should I own a fund with international stocks when US funds have done better?
There are all kinds of specialized and affinity investment advice. However, this one (that Tom discovered) take niche advice to a whole new level; financial advice just for strippers and escorts. Sex and money all in one episode.
We take an allocation question from a listener with a really great 401k.
Then, we look at the new TSP new option to invest in any mutual funds.
It's a special middle of the week question day in which Don addresses your queries:
- Why am I getting part of my 401k contributions back?
- Should I sell stock or wait for the price to rise?
- Is it better to move IRA money to an annuity for estate planning?
- What do we think of these "advisor" sold funds?
- Does this backdoor Roth strategy make sense?
- Is a 60/40 portfolio the best choice?
- What should be done with bonds and why does "Rice" give bad advice?
With inflation approaching 8% annually. what should you be doing to tweak your portfolio.
A caller seeks our opinion on alternative income investments and Tom and Don explain the potential pitfalls. Then, we focus on the fees and problems inherent in a non-public REIT fund.
Another listener wonders when it will be time to hire a fiduciary advisor.
A listener shares a really great 401k plan.
Then, a caller seeks advice on keeping or selling a rental condo.
How does a WA state government annuity look?
History has shown, time after time, that smart investors buy "when" prices are falling – technically, after they have fallen. Yet, it feels better to invest "when" prices are rising (have risen). Buying low, selling high isn't easy.
Ready for a 90% stock market collapse? Of course you aren't and you probably don't need to be. One of the most successful yet consistently wrong market forecasters of all time, Harry Dent, doubles down on his decade-long crash production.
Then we take listeners questions:
- What will happen to the US stock market if the United States global influence wanes dramatically?
- What do we think of M-1s automatic investment feature?
- What is our opinion of a listeners Voluntary Employement Benefit Account (VEBAs)?
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Most people are terrible investors, making far less than those things in which they're invested. Who is making the most money off of your investments? It should be you, not your stock broker of insurance agent.Plus, we talk about investing for beginners, whether of not a broker is a fiduciary, and the right reasons to invest in bonds.
Don looks at the market decline of today versus that of two years ago. Plus her answer many of your questions about:
- Taking early withdrawals from Roth IRAs.
- E-filing IRS form 1116, schedule B.
- Avoiding a "wash sale" when harvesting a bond fund loss.
- Better ways to invest in a 401k.
- Setting aside money to pay future RMDs.
- The best way to have advisory fees deduated from multiple accounts.
Tom and Don explore some common, yet mistaken beliefs about the final phase of our lives.
Plus, we take you questions:
How should money in a new Roth-IRA be invested?
Can income from an LLC be used to buy more Treasury I-Bonds?
Finally, we share the Jim Zorn story from Retiremeet One.
Most want to know what to do with their money. Instead, you need to know what you want your money to do for you.
Then, we hear from listeners:
- Wanting to know the best choises for small cap and emerging markets in 403b?
- Chastizing us for our advice to a 90-year old mom.
Many people purchase immediate annuities for "guaranteed" income from insurance companies. Here are some facts about income annuities that the companies prefer you not know.
Then on to the questions:
- Why do the stocks of some companies do badly?
- A caller shares a Vanguard fund comparison tool.
- Is it normal for an investment advisor to request power of attorney.
- What is the best way to fund grandkids education?
- What should be done with a big bunch of portfolio in cash?
Watching your investments fall is bad for both your emotional and fiscal health. No one ever gets in at the low and sells at the high (and then repeats). As a matter of face, even buying at the market high in 2007 worked out for those who were patient.
Then we take questions on topics like:
- Why do funds have investment minumums when ETFs don't?
- Has the Costco 401k been dramatically changed?
- I just won a car, when do I pay the taxes?
- What do we think of the John Hancock funds?
Don shares a few comments on the tough times in which we're living and what you should be doing. Then Don takes a bunch of your questions:
- How to help a friend invest?
- More concern about IBTB.
- Which is the better real estate ETF?
- With CDs coming due does a fixed annuity make sense?
- What is the difference between two small-cap value funds?
- What is a good international small-cap value fund?
- Finally, a comment about Paul Merriman's fund suggestions.
In this episode we share a number of once exciting investments that have fallen fast and furiously.
Then, off to questions:
- Should a younger investor be concerned about the popularity of index investing?
- Can an annuity be moved in to single premoum life without taxation.
Thanks to world events, markets have fallen (and risen). You feel the need to do something, but how should you be acting to both political and market events?
When is the best time to measure your risk tolerance?
Plus, we take a question from someone who is really angry about his bond investment.
There are far too many ETFs, most of which have no place in any portfolio. They are mostly overpriced gimmicks.
Then, we take your questions:
- What should be done with his mother's annuity?
- Can a RMD be coverted to Roth to avoid taxes?
- What should be done with USAA mutual funds held at Schwab?
- Did Schwab freeze Ken Paxton's accounts?
- A day trader wonders if trading in a Roth saves on taxes?
- Can you contribute to a Roth at 75?
- Why can't automated investments be made using ETFs?
Any war creates physical and fiscal turmoil. However, a war in Europe is frightening for a variety of reasons. Plus, the outcome can't be known. The stock market hates uncertainty. That's why stocks are way down one day and back up the next. What should you do? We'll tell you and explain why you should still be globally diversified.
Then, we take tons of questions:
- What is the best way to diversify?
- How many different funds do you need?
- We bought bonds and they went down. What should be done now?
- Big lie: A broker claims that lower fees and no commissions lead to lower returns.
- Is there any way to recover a loss from the past?
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What's the biggest request from investors?
Don shares the history of investment radio.
Is there any financial advice that is totally conflict-free?
Plus, we help our callers become better investors.
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Investing has changed over the past 60 years as illustrated through old episode of "Father Knows Best." While we still buy annuities as investments, we have many more (and often far better) choices. Yet, insurance companies, banks, Wall Street keeps working against you with products that aren't in your best interests. Plus, buying a house is not a real investment. The only way that you can effectively invest in real estate is if you make a business out of it or invest in commercial real estate through REITs and much more.
Don starts with a short address about war in Europe and your investments. Then he's of to answer a slew of listener's questions:
- Can a Roth TSP be accessed early?
- When should changes be made to a portfolio?
- Which ETFs should replace Fidelity funds?
- Which quoted yield is the right one?
- How has Bob Brinker's market timing done in the past?
- Bond funds: short-term or intermediate-term?
- Does it make sense to use new money to rebalance?
- Does it make sense to own a whole bunch of different value ETFs?
A special note about our upcoming Ukrainian war program.
A giant German insurance firm proves, one again, that there is no secret formula for making bigs bucks in rising markets and protecting against loss when prices plummet.
Plus questions:
Where to park short-term money safely (again)?
Should VT be in a taxable account?
Humans believe they know things that can't be known. When we act on those guesses about the future, we're often wrong/ Yet, we tend to focus on our successes and conveniently forget our errors. We also explain the "backdoor" Roth-IRA.
Then we hear from listeners:
- Don is reminded of his mistakes and yet is praised for his wealth-building advice.
- Can a defined benefit plan be changed?
- Is Revolution Partners a fiduciary firm?
- Should new money be used to rebalance portfolio?
- What do we this of this two-fund portfolio?
- Should an index ETF or tax-managed fund be used in a taxable account?
What should you do during this fearful times? How can you adjust your portfolio to world events after they HAVE happened?
What feels safe is often leads to surprise losses.
Then we help listeners:
Understand why a portfolio has decline more than average.
Determine how to safely navigate your credit reports online.
One of the biggest niche scams is romance fraud. An even bigger one is the current proliferation of Amazon "refund" schemes from Indian call centers. As we are talking about them, Don gets an e-mail and calls the scammer on the show. Listen.
Then we take a question on creating a well-diversified ETF portfolio.
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- There is truly only one correct way to invest your money.
- DFA did a study on the best funds over 5 years and 70% of those funds went out of business or underperformed.
- If you are employed, generally the best way to start is to get involved in your employers plan.
- Social security is not designed to live off of and have a great life with.
- Bonds are in your portfolio for security, not a great source of income.
- There should never be insurance funds in any kind of qualified plan.
- You need to account for inflation in your investment portfolio.
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- Vanguard is growing faster that the rest of the mutual fund industry.
- Why is global diversification necessary?
- Dave Ramsey gets in trouble for his "Endorsed Local Provider" program and tries something new.
- Why Wall Street hates index funds and much more.
It's another big day for Q&A. Here's the lineup:
- How can we suggest Avantis funds when they are shown as active funds?
- The best way to backdoor into a Roth IRA?
- What should be done with $17K at Ed Jones?
- How to I Savings Bonds accrue interest?
- With lots of real estate is a trust needed?
- If you use a Roth do you lose the power of compounding?
- How are ETFs more tax-efficient?
- Finally, we look back a the ultimate doom and gloom of Robert Prechter and his Elliot Wave "Theory."
We are not big fans of annuities in any form. A well-respected economist, argues that there are a few annuity vehicles that make sense for some people. We go through his pro-annuity argument and those of others.
We also share the Super Bowl's purported impact on the stock market.
A listener seeks more information required minimum distributions (RMDs).
This week, Tom and Don tackle the problems that money can cause in a relationship. What should you do to improve your pecuniary communication skills?
Plus, another listener who doesn't seem to be actually listening to our investing beliefs.
THIS EDITION CAN ALSO BE VIEWED ON YOU TUBE (youtube.com/talkingrealmoney)
While we are worried about how inflation erodes our assets, we still have trillions of dollars parked in money-losing savings accounts. You need a plan for every dollar. Later, we discuss a new way to ladder bonds for safety.
Then, we take your questions on:
- What to invest in when you have a bad 403b?
- Where to park $2 million short-term?
- Moving from finds to similar ETFs.
- Investing in Robinhood stock.
- The name of an ETF we suggested?
- Investing money safely with higher returns (again).
We discuss the market's recent decline and what might happen in the future.
Later, we discuss the big bucks being bet on the Big Bowl.
Along the way we take your questions including:
- How much diversification is enough?
- The shortest questions ever.
- Does a broker's complex mortgage plan make sense?
- Why do bond prices fall when rates rise?
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This week:
Saving your human capital for the time when you have less.
How do you create income in retirement.
What's wrong with non-publicly traded REITs (real estate investment trusts)? A lot!
How much should you have in stocks and a whole lot more.
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How returns looked like 40 years ago compared to now.
Why Don seems to hate annuitie.
There are no cookie cutter investing scenarios, every situation differs for everyone.
How to minimize the taxes paid on investments.
Answering the common question "How much money should I expect to make on the money I'm saving?"
Here are the topics for today's Q&A session:
- A new, younger listener wants advice on making money quickly.
- Is there better strategy for funding a regular or Roth 457?
- Should you start with a Roth IRA or a 401k?
- When is right time to fund an IRA?
- We hear back from "the dragon fund lady" about the best tax buckets.
- Is it better to fund a regular or Roth account fifteen years from retirement?
Because of powerful lobbyists, a big part of the financial services industry actually has the authority to regulate itself. Can we really expect stockbrokers to protect investors from other stockbrokers?
Plus we take your questions:
- Why do we suggest plain index funds on the show when we create complex portfolios using ETFs like those from DFA and Avantis?
- Is the big tax advantage to using ETFs versus regular index mutual funds?
Congress may soon prohibit individual stock ownership for its members. There is a lesson for everyone in this possible change. Also, read Ron Lieber's New York Times article on the subject.
Plus, we tackle questions about:
- What place should private stocks have in a portfolio?
- What's the best way to invest for young relatives?
You know something has reached peak insanity when celebrities are endorsed it, stadiums are being named for it, and billions of dollars being invented from it. Even crazier are those things called NFTs that can turn a kids drawing into big bucks.
Then we hear from listeners:
- Will Vanguard charge a back-load (yes, some Vanguard funds have a rear-end fee)?
- Should REITs be owned in a Roth?
- Why do we advice against monthly withdrawals for income in retirement?
- Should financial advisors suggest tax preparer?
- Does it make sense to pay off a mortgage with inherited money?
One of the hottest stocks just burned its investors. Recent activity in The Company Formerly Known as Facebook illustrates the dangers of individual stocks.
The we tackle your questions:
What is the Avantis fund that Tom likes?
Where should money be parked shorter-term?
Vanguard Energy Index fund did well. So what?
What are 457 plans and how do they work?
What do we think of Berkshire Hathaway?
How can beneficiaries be changed on IRAs?
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What's the best way to invest for a child's collge education?
Why investing absolutely requires taking risk (no matter what some salespeople might say)?
Are options investments or a casino game?
What purpose to reverse mortgages serve?
How can you avoid bad investing options in 403b retirement plans?
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We share some ideas for getting investing started early in life.
Why do we keep trying to pick stocks when we can't predict the future.
Should you financial advisor be required to act in your best interests?
Investing has progressed and research has improved, which is why our advice keeps evolving.
It's the Friday Question and Answwer session on Talking Real Money. This week:
- In which type of account should international investments be held?
- What is a "Laser Fund" and who the heck is Doug Andrews?
- Is is a bad time to move out of a target date fund?
- What can be safely done with $300K?
- Do REIT funds act more like stock than real estate?
- Where can someone get Morningstar educated?
- Why don't we mention Fidelity Zero funds?
What will happen to the digital investmentment firms when they are all scooped up by the big banks and brokers? Plus, do robo-advisors provide a valuable service?
We hear from a listeners about:
Using REITs in Roth.
Moving from Vanguard to TDAmeritrade.
The strange new Ric Edelman show and persona.
A number of "fiduciary" advisors who claim to believe in the science of passive investing, pretend that they know a few special ways to make more money for you.
Then we take a couple of questions:
- Why do we use the ETF, AGG versus BND?
- A good saver wants to know if she's investing properly?
An article in the Wall Street Journal suggests that retirees may have too much money in stocks. How do you determine how much risk to take and how to manage risk by rebalancing? Plus, Tom shares a story of a woman who scammed a scammer.
Listeners want to know:
Where to invest after a 401k?
How to create a detailed, long-term plan for retirement?
Where to invest the proceeds of a house in retirement?
Is it better to invest in an IRA or money market account?
To where should the money from a full-service broker be moved?
How to help parents prepare for long-term care?
When the news is bad, far too many people pay attenetion to short-term fluctuations. After markets have risen, you fee good about risk. When they have recently dropped, you become more conservative. Stop both. In ten years, you won't remember this.
We discuss the religion of meme stocks and crypto and share a way to get 1.5% on your savings.
What is the best way to take money out of a house?
Do we suggest emerging markets funds?
What should a young man do with a big inheritance?
How can you find a 100% fiduciary advisor?
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Why do we suggest Vanguard funds when they practice active management?
The stock market is dangerous enough without multiplying by four.
You might want them, but are no “safe” investments that make money.
Mighty financial oaks from little acorns.com grow.
What makes Dimensional Funds so special?
When does it make sense to move a regular IRA into a ROTH?
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The Labor Department's fiduciary rule goes into effect soon. Is your advisor a fiduciary?
What are "clean" funds and what purpose do they serve?
Why you should avoid stock brokers.
The new BICE and why you need to watch out for it.
This week Don takes on five of your calls to 855-935-8255:
- Is it better to put $6,000 per year in 401k or Roth IRA?
- Looking for ETFs to replace Vanguard bond funds.
- What are bond bullet funds?
- Will there every be more Talking Real Money Minutes?
- What happened with Vanguard's target-date funds?
- What's wrong with Vanguard advisors?
In a recent Bloomberg article, Professor Wade Pfau, Co-Director of the New York Life Center for Retirement Income (hmmmm, what might his bias be?), suggested that your retirement plan needs a do over. Does it?
Plus, we take your questions:
How to add more excitement to a globally diversified portfolio?
Does a covered call writing ETF make sense for income generation?
Have cryptocurrencies revealed their true risks to you yet? After shedding more than a trillion dollars in made up value, how much fathers can these incomprehensible "currencies" fall? We share a few powerful tales from the crypto-o.
Plus, a listener is look for a way to invest outside of retirement plans.
Since professionals have been wrong about stocks, maybe they can find the the hot stocks on Reddit? Plus, those hot SPACs have turned cold. Later, Tom rants about the way companies handle employyed retirement planning.
We hear from listeners on:
- How to react to faling market when you've just started investing?
- Is there anything that can be done to avoid a bug check from an old 401k?
- What is the best way to invest in real estate?
- Should you take monthly RMD withdrawals?
The law of unintended consequences is clearly illustrated by a change that Vanguard made in an institutional fund that caused a cascade of capital gains distributions.
Our listeners want to know:
What are some good small-cap value ETFs?
What do we think of the New Mexico 529?
Should this institutional fund be swapped for "investor" shares?
What does it mean when a 401k states it will be rebalancing?
Can a fiduciary advisor be bad for you? When they charge outrageous fees, they can!
How can you check on an investment advisor? Visit adviserinfo.sec.gov and look them up.
Are marijuana stocks a great opportunity?
How do you draw income from your investments?
Brokerage firms are scrambling to comply with the new fiduciary rules.
Edward Jones responds with a new product: Guided Solutions. Looks like a pricey robo advisor.
Fees are the key to successful investing. You need to know what it is.
Some ideas to control taxes on investments.
What should your investment priorities be?
What goes up, goes down, and has come back up again. Don talks about the week's market a takes a bunch of listener questions:
- What do we think of the portfolio help a listener has for a friend?
- Another caller wanys advice on shifting Vanguard investments.
- Is there really a tax advantage to ETFs?
- A woman with a Vanguard advisor wonders if she needs full-service financial advice.
- Would it make more sense to use two Vanguard ETFs instead of just VT?
Tom and Don take issue with Chuck Jaffe's plan to deal with 2022 market forecasts. We share the things you should to to prepare for unknown eventualities.
A listener wants to know what to make of a "fiduciary" advisors apparently market timing advice?
Another seeks advice on properly diversifying his portfolio
Financial markets fluctuate, but stocks (in aggregate) have always grown more valuable over time. Plus, we finally figure out a previous caller's reference to the "Paper Plane" cocktail.
Plus, we take a lot of calls:
- What is the E-mini S&P 500 contract?
- What should be done with a maturing CD?
- Does it make sense to transfer old American Century accounts?
- He has LTC insurance, but what should he do for his spouse's long-term care needs?
Bond prices are more stable than stocks, but they have never been risk-free.
Why are the investment expnses so diiferent in two 401k plans run by the same insurance company?
Am I taking too much risk with my investments?
Don begins with his tale of a wallet theft.
One of the problems with an effective active fund management strategy is becoming too popular. The bigger the portfolio, ther harder it becomes to do anything but match the market. As the ARK ETF is discovering, too much money can be a bad thing.
Later, we talk about ways to make your spare chage matter.
We take questions from listeners:
- How to find the right advisor?
- What do we think of a particular Seattle area advisor?
- How to invest for a much higher income?
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Tom is accused of being a financially arrogant. Maybe he's just right?
Most financial experts claim to know something they can't know, the future.
How and why to use real estate in a diversified portfolio?
How much risk should you take with your portfolio in retirement?
Beware of "Infinite Banking" schemes. They're just selling overpriced whole life.
After sharing his wallet theft experience, Don takes on your questions:
- What are good replacements for some American Funds?
- A caller cracks Don up with his question about investing $50K.
- An eastern European caller begs for $3,000 for her sick grandmother.
- Another looks for an opinion on his portfolio if Fisher and crypto.
- What's the best way to regularly invest?
We start with a quick Frank Vasquez update. Then, it's off to your questions – which include a coincidence related to yesterday's podcast:
- First, an ad that lies about 401ks to sell "bank on yourself" life insurance.
- A listener in Laurel, MS seeks investing help for his mother.
- Does the amount of money you have determine portfolio allocation?
- A CA listener looks for 401k in-service Roth conversions.
This episode is also a video cast on YouTube.
Are target-date funds a good option for every investor? WE discuss better ways to create the right portfolio for you.
Somehow, we end up exploring the concept of Blue Plate Specials at Vic's.
How can a son convince mom to leave Edward Jones?
We take a question about Roth conversions and withdrawals.
Our issues with SmartAsset.
What do we think of Frank Vasquez of Wealth Parity Radio and his investing strategies?
Interest rates have to go up in... 2012, 2013, 2014, 2014,2015, 2016, 2017, 2017, 2018, 2019, 2020, 2021, 2022. Eventually they will, but how often have the "experts been wrong? The advice of prognosticators has often resulted in disaster.
Then, on to your questions:
How do you know the proper allocation and do REITs makes sense?
To whom should you turn for financial tax planning?
Why own a global index when so many US stocks are for global businesses?
Shouldn't all S&P 500 funds have the same return and what are other good indexes?
What's the best plan for kids who want to sell one house and buy another elsewhere?
In a recent episode of Jeopardy all of the players failed to ask the correct question to a simple investing question. Of course, our listeners would have gotten it right.
Can an active 401k be moved to a cheaper IRA? Otherwise, what can be done to make better investments.
How can a Roth contribution be removed when income exceeds contribution limits?
What can be done about intermingled pre-tax and post-tax assets in a retirement plan?
How does an investor pick the right index in which to invest?
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Should you stay in 401k or should you go elsewhere?
How do you find a fund's fees.
How accurate are those Social Security benfit estimates?
What's the real story behind indexed annuities?
A very busy Q&A day as Don take on the last questions of last year, finally:
- What evidence is there that lump-sum investing beats dollar-cost averaging?
- What to do when uncomfortable asking an advisor those tough questions?
- When looking for real estate does Elevate Money make sense?
- How to make better tax planning moves when you're out of qualified plan options?
- What's the best place for emergency money?
- How does one create a retirement asset drawdown strategy?
- After emergency funds complete where should longer term money be invested?
Thanks. We are getting so many questions we needed an extra day of Q&A:
What's the best way to fund a Roth when income is near the limit?
What do we think of EE Savings Bonds?
What should be done with cash tips to avoid IRS scrutiny?
Are ETFs better than Fidelity Zero funds?
Why don't talk about state income taxes, too?
Anyone using any statistics can be accused of cherry-picking data. However, the facts don't support a the belief that gold is a sensible investment. It may be a hedge against some unlikely economic distaster, but it's not likely to be good for a worst case scenario. Gold is a great example of a speculative vehicle masquerading as an investment.
Then, we take some quick questions that we can't answer:
- Why does one of Paul Merriman's portfolios have no international?
- What should be done with inherited wealth?
You cannot know the future, yet experts keep predicting, despite being regularly wrong.
Then on to listeners questions:
What's the best way to create a financial and tax plan?
Is Vestory a NAPFA member?
How should Federal Reserve interest rate increases effect bond prices?
A tricky question designed to dance around our great dislike for cryptocurrencies.
Our first episode of the new year was recorded on New Year's Day.
In this episode, we face your biggest challenge, fear. How can you deal with it and keep it from destroying your financial future.
Then we dive into your questions:
What can be done with rental property to reduce taxes. 1031 exchange or DST?
Does a VT investor need additional diversification?
Does Tom have any advice for a young couple writing a prenuptial agreement?
What can be done with old real estate limited partnerships?
What are the tax ramifications of an inheritance?
How do you buy I-Bonds? What are TIPS?
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A hedge fund manager whose firm was guilty of insider trading is coming back.
Why whole life is rarely a good idea.
How life insurance companies underestimated their risk and how that effected policies.
Questions to ask your "financial advisor."
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Tom is accused of being a financially arrogant. Maybe, he's just right?
Most financial experts claim to know something they can't know, the future.
How and why to use real estate in a diversified portfolio?
How much risk should you take with your portfolio in retirement?
Beware of "Infinite Banking" schemes. They're just selling overpriced whole life.
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When should an investor use a robot-advisor as opposed to hiring a human.
Is it better to fund your 401k or your IRA?
There is no ONE right way to invest for everyone. How much risk you need and can tolerate is the key to proper asset allocation.
Why everyone should have a ROTH IRA
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This is a MUST LISTEN episode. Learn how insurance sales people pretend to be acting in your best interests!
Any "adviser" selling indexed annuities is NOT ALWAYS a fiduciary.
How to do your financial advice due-diligence.
Even worse: Beware of those selling "bank on yourself" or "infinite banking" whole life sales gimmicks!
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What is the best investment for a global market crash?
How do you prepare for the more likely kind of market declines?
So you're worried about the market's future. So what?
Will most investing advice actually be in your best interests?
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Should you stay in 401k or should you go elsewhere?
How do you find a fund's fees.
How accurate are those Social Security benfit estimates?
What's the real story behind indexed annuities?
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This week Tom is on vacation, so Don and callers discuss plans for funding college, why short-term bonds are less scary, the importance of patience and rebalancing, plus why homes and gold are likely to continue to be bad investments.
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Join Don and Tom for their new game: Speculating or Investing!
Callers want to know the truth about Primerica, the need for multiple accounts, whether or not to accept a pension buyout, and much more.
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It's our special holiday extravaganza! We talk about real investing, take some great calls on college savings and portfolio building, take a swipe at Bill Gross, and try to make learning about investing a bit more enjoyable. Thanks for listening and Merry Christmas!
Don answers listeners questions a day early as Friday is Christmas Eve:
- Would the Avantis REIT ETF be a good substitute for Vanguard's REIT ETFs?
- What's the right portfolio allocation for an 85-year old father?
- Don't annuities offer value bacsue of the death insurance provided?
- How to build a portfolio using Avantis or DFA ETFs?
- Why do we hate crypto when Ric Edelman loves it?
- Does a very simple ETF portfolio make sense in this situation?
Government regulation of the financial services industry fails to provide investors with a true picture of most firm's true costs and responsibilities. Therefore, the only one who can protect you is you!
Plus, a listener wonders if Edward Jones is acting as their fiduciary.
How can a fund pay out 7% per year (and charge investors 1% per year)? It looks easy in a bull market, but what happens when markets head south? (HNDL - high distribution liquid solutions)
Then we take listeners questions on:
- Starting a fund for a new baby.
- Investing in American funds versus other groups.
- What to do with investment real estate?
- Talking more about investing in gold.
- Converting a Roth before taking RMD.
Plus, we wonder why so many people seem to crave an apocalypse?
These days, most financial advisors (a term that is totally meaningless) claim to be acting in your best interests. Yet, very few are ALWAYS required to act as your fiduciary. How can you deteremine who is really on your side?
Later, find out what people claim they really want for Christmas.
Along the way we take a bunch of listener questions:
What do we think of M-1 Finance?
Do reported fund returns include fees?
Can a 401k be moved into a Roth IRA?
What are the differences between Fidelity's and Vanguard advisory services?
Can I-Bonds be owned in an IRA?
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Exploring the Wild West of financial podcasts.
We answer the big question: Is it a REAL investment?
Is just investing in the S&P 500 adequate or should you diversify more?
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Should you hire a Vanguard financial advisor?
Why the market being at another all-time high shouldn't impact your investing decisions.
Why the advice we provide is so different than most of the other money shows.
Today, Don answers questions about:
- Adding a small cap ETF to a Vanguard portfolio.
- Will interest rates ever get back to "normal?"
- The tax ramifications of liquidating a variable annuity.
- Diversifying further with a Fidelity REIT fund.
- Investing in real estate through a REIT or through crowdfunding.
The insurance industry knows that we hate risk. Our fear of negative outcomes makes them lots of money. Some new insurance investment products claim to eliminate future income risk, but at what price?
Plus, a listener discover that the indexed annuity they were sold did not live up to expectations.
We've hear you frustrations and have expressed many of our own about changes at Vanguard (some good, some bad). Now Morningstar's John Rekenthaler makes a similar case.
Plus, should a mutual fund investor be worried about possible illiquidity in a smaller fund?
Stop believing that there a super secret investments for a special select group of investors. Accept what the market gives and stop chasing rainbows.
Who pays the taxes on a child's portfolio?
Does it make sense to pay off a low rate mortgage?
The Question returns: What should be done with a lump sum to avoid big declines?
Do we suggest exchange traded funds (ETFs)?
Don tries to understand an article about creating income from non-fungible tokens (NFTs).
A listener is looking for an opinion on the Schwab Market Track All-Equity Portfolio.
An online real estate investment proponent sees the light and realizes that REITs are a better way to invest.
A caller wants to start funding college for an older child.
Another listener is considering long-term care funding options.
Don takes on a cryptocurrency writer who claim that only crypto proponents know anything.
Then, he explains, again, what will keep BitCoin from being widely accepted by merchants.
A listener looks for Fidelity investment advice.
Finally, Don reads the latest negative Talking Real Money review on Apple Podcasts.
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Why investing in a globally diversified portfolio has been better.
Is an asset-based long-term care policy considered an investment?
The lies insurance agents tell to sell high-commission, cash-value life.
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The new DOL fiduciary rule has been implemented, but you still need to be careful.
Withdrawal strategies for taking money out of retirement accounts.
Are stockbrokers trained to help you make money? Probably not.
How is inherited property taxed when sold?
It's Friday Q&A day and Don takes on half a dozen of your queries about:
- Fighting the crypto fight with family and friends over the holidays
- The right way to take out money in retirement.
- Another example of just how bad annuities really are.
- What's the difference between a mutual fund and collective investing trust (or "do we need another fund product?")
- Is there way to get better funds through 401k?
- Paul Merriman, I-bonds, CDs, EE bonds, and leaf blowers.
Chuck Jaffe recommends individual stocks for Christmas, while a Wall Street Journal writer suggests giving crypto, NFTs, or overpriced cubes of pure tungsten. Tom and Don explain why these are really bad ideas and then share some better financial gifts.
The IRS reminds us that there are limits to what investors can do with their IRA accounts. We explain why you should avoid self-directed plans.
Plus, a listener wonders where a REIT ETF belongs in a portfolio.
... if they turn out right it'll be sheer luck. The end of the year brings with it a plethora of stock market predictions. Who will end up right? Hopefully, not Tom.
Callers want to know:
Why don't we suggest TIPs?
Why do the people who ring the closing bell cheer a bad market?
Suggestions for investing with a Wal-Mart 401k?
What's a good investment for young children?
The question: What should be done with some money laying around?
A new insurance agent tries to sneak in a plug for indexed universal life.
We celebrate Talking Real Money's 1,000th episode (we are slowly adding some recently uncovered archived shows).
Investors are always seeking the one easy way to solve a problem. There is no one right way to deal with inflation. There is no high-yielding, low risk investing. Later, we consider the wisdom of "model" portfolios.
Throughout the episode, listeners ask:
- Can you make regular contributions to a rollover IRA?
- What is the name of the author of Trillions?
- What is a safe, high-yield alternative to annuities?
- What is the proper allocation for retirement funds in a caller's particular case?
- If retiring in 2022, can the maximum contribution to a TSP allowed?
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What do you really know about investing? Less than you might think.
Even worse, you probably don't know what you don't know. See where this going?
Why those who try to predict the market end up being wrong so often?
Why investing with friends and family (or nice people) can be a big mistake
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Don reports on his visit with Dimensional Funds from Austin Texas.
When is it time to hire an advisor?
Can you roll over inherited retirement plans into a ROTH?
Dimensional funds vs Vanguard funds: Which is better?
How do you qualify for a ROTH IRA?
It's Friday. Don powers through a bunch of your calls on a variety of topics, like:
- With the whole family self-employed, what can be done to save for retirement and can they still fund Health Savings Accounts (HSAs)?
- A listener with some retirement funding advice for the self-employed.
- Another, "whats should I do with $___?" call.
- What do different types of index funds and ETFs have dramatically different turnover ratios?
- With Social Security benefits reduced how can the income be replaced?
- Ehat should be done with money from a previous employer's 401k?
Don and Tom welcome Trillions author, Robin Wigglesworth to Talking Real Money. Robin shares his reserach and insights on the huge changes that have taken place in the mutual fund industry since the creation of the first index funds about 50 years ago. He also explains the growth of ETFs and considers what might come next.
The story of a 42-year annuity debacle. Plus, we share the realities of those "safe" income-producing immediate annuities.
A new listener wonder if he should hang on to AT&T stock.
Just because US stocks have been the big winners over the past decade doesn't mean they always will be.
A caller wonders if there is a Fidelity Contra type fund at Vanguard.
Tom and Don Discuss their broadcasting past.
A listener asks if bonds are really necessary.
We assure you that we ar not affiliated with Applebee's.
A caller wants to know why he should hire us versus Fisher.
We wish everyone was a fiduciary.
A woman seeks help advising her parents on a investing a large sum.
Stocks took a beating on Friday thanks to Omicron. You can save yourself a lot of psycological greif when markets tumble by having a plan and a proper portfolio.
Then we answer listeners questions:
What do we think of robo-advisors?
Would it make sense to move a TSP to Vanguard?
Does it make sense to pay off a mortgage?
What is a good retirement planning tool?
Will TSP plans be offering more investment options soon?
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How can you be sure that your company's stock won't fail when you need it most?
Why owning diversified portfolio is always better than owning individual stocks.
Learn how to create a properly diversified 401k.
When does investing in an ETF make sense?
Plus, please forgive a bit of disjointedness, as Don was broadcasting remotely from Colorado.
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Our good friend, financial author and educator, Paul Merriman, joins Tom
How to have money work for you (and not the other way around).
Why is the U.S. Dollar going down?
Is there a risk that companies may become overvalued due to index funds?
How to minimize the amount of taxes paid post-retirement.
The fact that the future is totally unknowable doesn't stop the financial prognosticators from predicting. Even someone who has been as consistently wrong as Harry Dent keeps selling books.
Plus, a listener wants to put money in a post-tax account to maintain liquidity for "opportunities."
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Why it is important to treat your portfolio as a single entity instead of individual investments.
Can a worker offset taxes on IRA required minimum distributions with new contributions?
The main difference between ETF's and index funds.
More on the importance of fiduciary advice,.
Good news: reverse mortgages ain't what they used to be.
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Does "the Dow" exceeding 22,000 mean much of anything?
What happens to college savings if your child doesn't go to college.
What purpose do bond funds serve in a portfolio?
What's the best way to refinance a mortgage.
How much is too much to pay for financial advice?
We should be grateful for the investing reserach and products that have been developed over the years.
Then, we take on a lot of your questions:
- How to leave Edward Jones and set up a consolidated, sensible portfolio?
- How do you find a 100% fiduciary?
- Should Schwab "Slices" be used for grandchildren's investments?
- How can a fifty-something start building wealth for retirement?
- Why are ETFs more tax-efficient?
- What can be done to reverse a reverse mortgage?
- What's the difference between two apparently identical Vanguard funds?
- Does a supplemental savings plan make sense?
Some small cap index funds may be carrying a high amount of troubled meme stocks. However, active managemt is not likely to be better.
Plus, we hear from listeners:
- Can a retiree contribute to a Roth IRA?
- What can be done with after tax 401k contributions if the mega-backdoor Roth is eliminated?
- THE question: Where can money be invested with no price fluctuation?
- Can a lousy HSA (Health Savings Account) be moved to Fidelity?
Tom makes a stock market prediction. (Don hates it).
In a recent Third Act Magazine article Don writes that investing is evolutionary not revolutionary.
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Bad advice from a big investing organization.
Should saving be a priority when you have outstanding debt?
The earlier you start investing the better.
What's wrong with most investing publications?
What questions should you be asking advisors?
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We celebrate the 2017 opening of our new office.
What funds we recommend when first starting a portfolio.
When to choose a ROTH IRA over a traditional IRA.
What determines a conservative portfolio vs an aggressive one.
Is it ever appropriate to purchase an annuity?
We are thankful for all of your great questions on topics like:
- What the heck are I-Bonds and how do they work?
- Where should money from a home sale be "parked?"
- Why has Paul Merriman changed his bond fund suggestions?
- Will Fidelity always be a fiduciary?
- What is recasting and does it make sense to recast a mortgage?
Tom recently sat down with Eduardo Repetto, PhD. from Avantis Investors, to get his take on ETFs:
- What are their advantages over mutual funds.
- How do they work?
- How do you pick the best products?
Just because you want something doesn't mean you can have it. What most investors want are high returns with little – or preferably, no – risk. Wall Street is happy to try and convince you that it's possible and the popular media often falls for the pitch. There is no place to get a risk-free 4% return.
Then, a listener wonders how to move money from Edward Jones to Fidelity or Schwab and where to "park" $900,000.
With Elon Musk sellings billions of dollars in stock, should you join him? We consider the long-term case for owning hot, groth stocks.
Then on to questions and comments from our listeners:
What should be done with an old 401k?
SmartAsset appears to be suggesting advisors that are far from 100% fiduciaries.
How do you find a pure fiduciary advisor?
Are there differences between Avantis funds and ETFs?
Better ways to buy Vanguard funds.
How is needed reatirement income calculated?
What should a couple do with extra homes to avoid taxes?
Christine Benz from Morningstar argues that the tried and true 4% rule may no longer be effective. We share some alternatives means for creating income from portfolio.
FOUND: 179 old Talking Real Money podcasts. We will have created 1,000 podcasts this year.
Then, listeners ask:
- How to both pick funds in 401k and find information on institutional funds?
- Does an "advisor's" recommendation of expensive, illiquid funds make sense?
- What's the proper allocation for an IRA?
- Should a $500k 457 be converted to a Roth IRA?
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Tricking people into believing that a blatant insurance sales pitch is actually a class at a major university.
Should you ever invest with your friendly neighborhood insurance agent?
Is there ever a safe time to invest?
Should you be waiting before putting money into the market?
Why are trillions of dollars in cash just lying around throughout the world and not being invested?
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In this episode, Don broadcasts from Rapid City, SD in September 2017:
Pity those poor door-to-door investing salesmen from Edward Jones?
What is a reasonable amount of money to pay for an investment adviser?
Is it ever okay to buy an individual stock, and if so, when?
What is the best way to set up a college fund for your children/grandchildren?
Why you want to steer clear of investment advisers that are also licensed insurance agents!
From where did the term "dollar" come and why is one of them a "buck?"
Plus, Don tackles more of your questions on:
- Keeping or firing a Vanguard advisor.
- Determinung the amount on which to rebalance.
- The particulars of Treasury I-bonds.
- Investing in wife's 457 or an IRA.
A George Mason professor compares the efficacy of seasoned mutual fund managers as oppsed to the young turks. Who performed better? Does it even matter?
Plus a listener wonders if he can continue to contribute to his TSP.
A message for millennial investors: It's been a great decade to be an investor (in almost anything). Yet, someday many of those "brilliant" bets you have made will explode and you won't know in advance. There will be pain.
Plus, we answer a question about the best way to invest money from a "side hustle."
Far too many people are not are not financially prepared to retire. However, it's never too late to get started.
Then our listeners chime in on:
- Larry Swedroe's own only small and value stocks strategy.
- The need for bonds in a portfolio.
- Using a "bond replacement strategy" (annuities) instead.
- Converting to a Roth IRA to avoid RMD.
- Determining the best cost basis strategy for tax purposes.
We end we a brief discussion of a Texas Christian money radio advisor about to spend life in prison.
What are stocks worth today? Too much? Not enough? According to millions of investors, they are about right for the time. Plus, how will you know which "record high" is the last one for awhile? Then, when will stocks start to head for their next record?
You can now earn over 7% with no principal risk.
A caller finds an old stock certificate.
Another worries about the taxation of I-Bonds to an estate.
A mortgage-free listeners is considering a new mortgage to increase investments.
A listener wonders why we criticize Edward Jones.
It's Friday, so we have some great questions from listeners starting with:
Cass is trying to find the right emergency fund.
Mindy wonders what to do with a granchild's earnings.
Vince has the ultimate hodgepodge portfolio.
Mark is trying to decide on the best small cap value fund.
Bree is looking to make some TSP changes.
Derek shares his opinions of the future viability and purpose of cryptocurrency.
Finally, Leslie asks Don to check out a financial planner.
In this episode we rise to the defense of our friend Paul Merriman from the misplaced wrath of Josh Scandlen of Heritage Wealth. On a recent YouTube video Josh accused Paul of cherry-picking time periods to make his data look better.
Plus, a listener alerts us to a CFA on Twitter who seems to be playing a bit fast and loose with his facts on running out of money in your retirement portfolio.
Today we talk about the terrible track record of predictors. Even if some could foretell the future, whose contradictory advice would you follow?
Plus, a listener wonders why she should own a global index fund when a US only fund has done so much better.
Just when we thought the battle was won, insurance companies are pushing annuity products back into qualified retirement plans, despite their opacity and high costs.
A caller shares information on the amount you can expect if you start taking Social Security with minor children in your family.
The impatience of younger investors has led to more speculative activity.
Should he invest in a oil-drilling deal promising 18% or more per year?
Joke crypto cpins are now worth more than most of the companies in the S&P 500.
What is the best inflation hedge?
Are there any dangers lurking in Roth accounts.
Where do we list our favorite index ETFs?
Future bond total returns will probably not resemble those of the last four decades. You need more realistic expectations for the fixed income portion of your portfolio and learn the nest ways to own them.
A caller is selling a business and wants to convert an IRA to a Roth.
Don shares the insanity of Halloween in celebration, Florida.
An annuity owner wants out.
Do you need altternatives or private equity in a diversified portfolio?
A big bonus for Social Security eligible parents of minors.
Looking for a definitive guide to Social Security? As promised, Tom interviews Social Security expert, Jason Gentile, Apella Capital's Director of Financial Planning. Tom inquires into the program's viability, the biggest mistakes made, claiming stategies, and shares some of our listener's questions.
Disclosure: Apella Capital is Vestory's parent company.
This week seven truly diverse questions from listeners:
Where to put a bunch of money for grandkids?
Is there a national LTC insurance mandate?
Helping a 93-year olf mom invest better.
Backdoor Roth or a regular Roth?
Is this call a scam?
Which real estate investments do we suggest?
What are some globally diversified equity fund alternatives?
The key to successful investing is controlling those things that are in your power to change and ignoring all the rest.
Plus, a listener wonders how you choose the proper target-date fund year after you retire.
We explore the realities of inflation and share a few ways to plan for it and cope with it.
A listener looks for advice on continuing to add money to an expensive VALIC annuity in a 403b.
Plus, Tom is angry about the stock picking game at his child's school.
There was a time when index investing was considered to be un-American. Now, trillions of dollars are iunvested in indexes as the weight of evidence shows that few investors will consistently beat the market after all of those extra expenses.
Don shares a new phone scam and we have a "leaf-blower" update.
Then we hear from listeners:
- With fixed income questions about using TIPs (treasury inflation protected securities) and where to place bonds.
- Wondering if MYGAs (multi-year guaranteed-rate annuities) have a place in a portfolio?
- Curious as to why we bash speculating?
- Wanting advice on finding 100% fiduciary advisors.
A strange show in the aftermath of Sinclair Broadcasting's ransomware attack (that effected KOMO radio in Seattle). However, we pull off a discussing of the latest way to bet on BitCoin. Then, we discuss the wisdom of advisors who recommend using crypto.
Listeners want to know about:
- The advantages of trusts over wills.
- An investment called Stairs that "guarantees" 4% to 6% income.
- The differences between stocks, mutual funds, and ETFs (exchange-traded funds).
Don drifts off topic for a few minutes to extol the virtues of his new microphone. Hey, it cost money, so it's loosly financial.
Then, on to listeners questions:
- What should be done with a pension distribution from a divorce settlement?
- What so we really think of cryptocurrencies?
- How should a young investor build a retirement portfolio?
- Do preferred stock ETFs make sense?
On Thursday, the wrong file was uploaded. Here is the proper podcast.
Wall Street keeps insisting that real investing will no longer work and that we must adopt their new ideas or perish. Wonder why? Be a bit more cynical.
Plus, is it too late to invest aggressively?
What should you look for in a financial advisor? Tom and Don share a few simple tips to help you find the best help possible.
Plus, we answer a listener's question on small cap value investing.
Are small cap stocks poised for a record run or have small compnay stocks risen to far, too fast? We t alk about the big, bad business of financial predictions and how little any of them mean.
The we hear from a host of listeners:
One is seeking high dividends using funds that have lost a fortune over time.
Another's parents are getting bad advice from a broker.
His son has been right about crypto, so shoukld he "invest?"
We tackle a Social Security question that we can't answer.
Finally, a caller is considering another dividend stock fund.
Rarely do financial magazines provide great investing advice. That's why we're so excited by the latest issue of Fortune.
Desperate for high income a caller considers complex convoluted "enhanced" ETFs.
Another listener needs advice for invest $10K.
As we dug deeper into Fortune, we found the typicallly advice: Thirteen stocks for young investors.
Finally, is his advisor providing 100% fiduciary financial advice?
Don's back with yet another Q&A Friday with six of your queries on:
- Buy and hold versus tactical investing?
- Moving IRA to TSP to allow backdoor Roth?
- Helping mom retire more comfortably?
- Taking the leap from mutual funds to ETFs?
- What to do with an old annuity?
- Higher fees in brokerage firm 529 plans?
How statle are stablecoins? Does Tether actually have the assets it claims are backing it's cryptocurrency. Could it collapse and take everything else down with it.
Plus, a listener looks for the best way to pay for graduate school.
Wall Street and insurace firms are always looking for ways to profit off of your deepest desires. Don't let them trick you into paying too much for "defined outcomes."
Plus, should investors be worried about the Chinese stocks in their portfolio?
Some of the worst investment vehicles inside a qualified retirement plan are annuities. They make no sense for investors, but the insurance compnaies sure love them.
A caller's employer is acquired and the new 401k is with an insurance company.
Why so many investments are not in the client's best interests.
Does it make sense to take a flyer in stem cell stocks?
Looks like Tom and Don are still not on the Forbes 400, but they're in good company.
A listener wants to know if a Principal "fund" makes sense as an international fund.
We start with an update on the big leaf blower feud in the Maltby hill country.
Our main topis the latest hot segment of the financial markets, penny stocks. What in the heck is wrong with "investors?" Plus, we discuss the difference between these and small cap stocks.
A caller wants to know more about a hot, high-yielding investment call Parabola. Does this sound too good to be true?
Does it make sense to keep working for a bit more pension income?
How can a Roth be transferred into a trust?
We revisit our updated "tongue in cheek" review.
An individual stock owner wants to know if she should sell her winners or losers.
A widow wonders why her late husband's annuity stop paying out income.
Who knew there were so many acronyms and mnemonics in the investing industry. Don shares 10 of the top memory aids from real advisors.
Then we do a shortened Q&A Friday episode answering questions about:
The ramifications of overfunding a 529 plan?
Whether a child's income effects earned income tax credits?
There are cheaters in every part of life, so don't except that investing will ever be entirely fair. However, if you invest properly. market manipulation and insider trading will have next to no impact on your portfolio.
Plus, do Roth accounts make sense for those in high-tax states like California?
The Wall Street Journal named the best funds for the last quarter. Were they good or just lucky?
Plus, a listener wonders if it makes sense to invest with a fund that votes it's conscience.
Don't spend too much time fretting over future tax rates. Concentrate on investing.
Then, Tom's neighbor fires up his giant leafblower and he considers invoking the Bill Gross solution.
A listener seeks advice of crawing down assets in retirement.
Do you need to protect your home title from theft?
We settle a spousal dispute abot Social Security.
How can a 529 be et up for friend's kids.
There was a time when you could lock in a 30-year T-bond at almost 16% interest and yet nobody wanted them. Rates have been falling ever since.
A caller accidently buys I-bonds twice.
A listener shares his experience with a Seattle money radio guy who claims he can be a fiduciary and sell indexed annuities.
We explore the latest "own your own pay phone" scam; BitCoin ATMs. What could go wrong?
You answered the call and made the calls. Lots of them. Thanks!
Here's today's line up of queries:
- Where the heck is my daughters child tax credit?
- Should I take cash out of a fully paid condo?
- In what order should monies be taken from investment accounts in retirement?
- What is the best age to start taking Social Security?
- What's the best way to deal with a large, unexpected bill from the IRS?
The popularity of environmental, social, and good governance investing (ESG) may have led some companies to misrepresent their mutual funds.
A listener seeks some advice of the proper portfolio allocation between pre-tax and post-tax accounts.
We also talk about free steak dinners.
Today, we discuss the concerns that many have about Social Security and the likely future of the plan. Plus, we share the best way to manage your retirement payments.
Then, we hear from a listener looking for the best path to becoming a financial advisor.
Insurance companies are struggling to offer competitive yields on the annuities and cash value life products. The industry is stretching by taking more risk. So, are insurance products really guaranteed?
We also ask why mutual fund firms continue to offer expensive actively managed funds when the evidence is overwhelmingly against their future sucess.
Caller want to know:
- The best way to pay for a major home improvement?
- How to defer capital gains taxes on an investment property sale?
- Our favorite sources for investing advice?
Between the possible default of a giant Chinese conglomerate spooked the market. How great is your Chinese market risk?
How do you fund a Roth for a child?
Are you worried about the stock market?
Why are some investing podcasts so popular?
Should investors get out of the market every September?
Which are the most dangerous months to own stocks?
Many find rebalancing to be psychologically challenging.
We look so smart as cryptocurrencies to a beating after yesterdays podcast. We didn't know anything. As the stock market has stumbled recently. Should you consider trying to buy the dips in the market?
Plus, a whole bunch of Friday Q&A:
- Why would anyone want to buy investments from an insurance company?
- If back door Roths go away will a brokerage account help reduce taxes?
- Is it better to change a portfolio before of after capital gains distributions?
- Does it make sense to cash out a whole life policy to invest elsewhere?
After the Chairman of the Securities and Exchange Commission heavily criticizes cryptocurrencies, BitCoin gamblers might want to pay attention before this house of (fake) cards comes crashing down.
We address a comment from a listener about another purpose for life insurance.
Plus, we take a question about where to move money from an old employers 401k.
There have been a couple of stock market scares recently. Plus, as always, there is news that seems economically concerning. So, what should you do when fear accelerates?
Plus, a listener wants to know if it's time to fire a financial "advisor" relative.
If you're serious about enjoying a better future you need both a goal and a plan. We also discuss how much we believe we will need to retire comfortably. Then, we answer a bunch of your questions and comments:
- How does someone use both investment advisors and other experts simultaneously.
- Does it makes sense to move a Roth 401k to a Roth IRA?
- Looking to dividend funds to try and generate more income and a bit of market timing.
- What's the best investment for a new granddaughter?
While extremely popular, "traditional" real estate investing is one of the most complex and potentially dangerous ways to build wealth. There may be a better way for those who don't want a part-time job. Also, real estate is not a good bond substitute.
Then, we take your questions on:
- The wisdom of keeping a bunch of "death" policies.
- How to rebalance a portfolio more tax efficiently?
- Does it makes sense to invest monthly into a Roth IRA?
- Should a 3% mortgage be paid off with excess cash?
As Don just sold his house in Virginia, this is the last Q&A from there. In this episode, Don answers your questions on:
- Investing for a child?
- How aggressive is too aggressive?
- Tips for becoming a financial planner?
- Should a portfolio include dividend stocks or ETFs?
- Is a stock given as a gift subject to taxes when sold?
Tom returns from his speculative investing sojourn in Vegas. Did he win or lose?
His team ended up winning the football game though.
We go back in time to one of the great speculative bubbles in US history.
Plus, we take your questions on:
- What to do with some company stock along with other individual stocks.
- Is a CPA needed to look over retirement plan?
In this podcast/vlog, Don talks about speculative investing, while Tom reports in from the speculative investing capital of North America:
- Are meme stocks are driving the small cap value markets?
- The Bogleheads Forum ban cryptocurrency investing posts with a brilliant explanation.
Then, Don takes a couple of questions on:
- Converting a Roth.
- Investing entirely in small cap value ETFs.
PLEASE LISTEN TO OUR 9/13/21 EPISODE FIRST.
In this edition we finish the question we began yesterday (both in jest and seriously). We also take a bunch of calls:
- A well off former real estate investor wonders what to do with his many millions of cash.
- With everyone claiming to be a fiduciary, how do find somone who is reall acting in your best interests?
- A woman is confused about the taxation of an immediate annuity.
- An older woman seeks advise on investing a big pile of cash that was earmarked for real estate.
Too many believe that they can beat the market. While a few "experts" outperformed the broad stock market, after expenses only a lucky few have made more money. Odds are you won't win when playing the market.
Then, we move on to questions from listeners starting with:
- A primer on Roth accounts.
- With Vanguard promoting private equity, what's our take?
We take a break from calls to talk about the SPAC disaster.
Finally, we tackle the longest question we have ever received.
We have been getting an outpouring of written questions and very few spoken ones. So, with a little help from a cast of AI voices, Don attacks the surge of queries about:
- Who should be on the financial Mount Rushmore?
- An older question about short-term bond funds and retirement accounts.
- Alternative fee structires for financial advisors.
- How to invest for a 12-year old daughter?
- Capital gains tax avoidance on non-owner occupied rreal estate.
- Investing in sector funds.
So, why do we generally dislike annuities, particularly indexed annuities? Can someone who sells indexed annuities be a fiduciary? We talk about the "mistruths" people will tell you to collect that commission which they claim you aren't paying them.
Plus, a listener claims not to be a market timer. Right.
In today's episode, we look at the crazy search for more income from investments. Are you taking too much risk investing in high-yield (junk) bonds and high-dividend stocks.
A listener wonders why we don't suggest investing in the NASDAQ.
Beware of falling into the dangerous trap of financial complacency. Investing can be very dangerous when least expected.
Listeners want to know:
- What different fees mean in real dollars?
- Which short-term bond funds might be an appropriate investments?
- What to do with a Roth after death?
- How to invest semi-precious stone sales proceeds of her non-tanzanite collection?
- How do you know when you have enough money to retire?
In today's episode, Don tackles a bunch of your questions:
- Are there three ETFs that can be used instead of the three Fidelity funds?
- Does it make sense to add an international value investment?
- Is it better to pay the taxes or pay the high loads of "A" shares in a 403b?
- What is the purpose of a "stop loss" order?
There is an ongoing debate about what defines both passive and active investing. Some are even questioning whether certain income funds are passive investments.
Plus, like it or not, we answer another convoluted Roth IRA conversion question.
Compound interest has been called the "8th Wonder of the World." It is pretty powerful. Tom and Don discuss the awesome power of compounding for both good and evil.
Plus, they take yet another question of the popular topic of Roth conversions.
We revisit Meet Kevin and share a bit of his portfolio.
A caller is looking for ways to save for his daughter's future needs.
Another wonders where to put a bunch of cash for a future home purchase and yet keep it safe.
Does it make sense to have a lot of equity in your home?
A caller takes us to task for using the term, investment pornography,
This leads us to our new code word "cheesecake."
A retiree, doing well, looks for advice on investing a bunch of excess money.
How can you use money from an IRA tax-free?
Why do we suggest bond funds vs. CDs?
Is there a reason to buy an annuity?
We take a look at one of the most popular YouTube money "experts," Meet Kevin. This guy has been making more than a million dollars a month getting you to buy the stocks he has already purchased. We hate to break it to you, but this too shall pass (and many of you will suffer).
Everybody hates bonds, but they're missing the big picture.
Why is Wall Street paying attention to social media pundits and meme stocks?
The news guy for our radio show seeks investing advice.
Bonds and stocks haven't behaved similarly in stock market corrections.
Finally, another caller wonders why he should own bonds.
Geez, people, is this that hard to understand?
Today's questions run the gamut from:
Would it makes sense to have both a high-deductible and low-deductible health insurance plan?
Moving money from a mutuial fund to an ETF.
The wisdom of using both a backdoor and super backdoor Roth.
The best way to help subsidize parents' retirement?
Most investing advice is either too simplistic or far too complicated. Real investing lies (like almost everything else) lies somewhere in the middle.
A TRM evangelist wonders if it make sense to move 457 into a better 401k.
A younger listener wants our opinion of investing options in his retirement plan.
Wisdom does come with age and that's particularly true of investing. When we're young we tend to think we know a lot more than we do and tend to tae outsized risks until we experience failure.
Plus, we take questions on:
- What might health care costs be for an early retiree before Medicare eligibility.
- If it makes sense to borrow against house to free up equity.
You can also watch this episode as a video at https://www.youtube.com/talkingrealmoney
What does passive income mean? Seems to us that it shouldn't require work. yet, some consider rental houses, Amazon businesses, and writing books as passive income sources. Really?
We take a bunch of your calls on:
- The taxation of annuity to beneficiaries.
- Something we covered on a previous podcast.
- Borrow of pay cash to buy a portion of a house?
- The best way to pay for a very expensive college right now.
Plus, Tom shares obscure trivia about Daniel Boone and bears.
What is the right amount of money to retire comfortably? Will $200,000 be enough? Half a million bucks? A million? More? We help you figure it out.
Then we power through a bunch of your questions live or from our online contact page:
Why are American's so financially illiterate?
What makes ETFs better that mutual funds?
A younger caller seeks Don's changing investing philosophy.
According to his friends, it's time to move from equities into cash.
What do we think of a listener's Avantis portfolio?
In this week's Q&A extravaganza, Don tackles your questions about:
Does it make sense to fund a Roth IRA later at 67?
How much of extra earned income can a retiree contribute to a Roth?
What should be done with extra cash?
Rather than adding profit from home sale to down payment, might it be better to pay mortgage insurance?
Warren Buffett has suggested an incredibly simple portfolio for average investors. Don and Tom examine his reccomendation and make a few of their own.
A listener takes exception with a newsletter's Social Security advice.
Bloomberg asked a group of investing professionals for their hottest investing suggestions. Tom and Don tear a few of them apart.
Plus, a listener is looking for a better way to derive income from portfolio in retirement.
Buying individual pieces of real estate is a business, not an investment. Investing in Pokemon cards is really crazy.
Plus, we answer listener questions about:
Creating a simple portfolio for mom's future income.
Will someone about to retire get anything from the Washington Cares act?
Refinancing a small mortgage.
A younger listener already set for retirement wants to know how invest more.
Has gold protected you from inflation? That's about all you can expect from precious metals.
Plus, we hear from listeners about:
- The pros and cons of the new Washington Cares program and other long-term care protection.
- Gifting money to son the help reduce his house payment in a refinance.
- The fallacy of market beating advice and investment porn.
Plus, Don shares his mortgage refinancing experience.
A recent $600 million cryptocurrency theft illustrates how wild these "currencies" really are. This led Don to another fascinating comparison between crypto and the early US financial system.
Plus, we keep getting lots of questions. Thanks. In this episode:
- What happens when a 529 owner dies?
- How to better diversify a portfolio overseas and in emerging markets.
- How are ETFs tax-advantaged and can you swith from Vanguard funds to ETFs?
- How does the Washington Cares fund compare with private long-term care insurance?
- A listener suggests T-Mobile's home internet for Tom.
The late manager of the Yale University endowment shared his perfect portfolio. Rather than a complex mess of alternatives and derivatives, David Swensen created a sensible mix of quality, low-cost securities.
Plus, we speak to a listener's concerns about investing in China.
Far too many people believe that providing venture capital is destined to bring riches. Like any form of gambling a few financial angels get rich. The majority, however, are destined to fail.
Plus, another podcaster may have found a way to do a tax-free Roth conversion.
This episode is also a video on YouTube.
We share an insurance expert's open letter about the difference between whole life and univesal life.Plus, he takes those complex indexed life sellers to task. No matter what they say, there is no high return with no risk.
The Tom and Don tackle fun phone lines to talk about:
- The need to add a Roth to a retirement plan.
- The wisdom of investing in Berkshire-Hathaway.
- A smart, successful daughter has her dad ask us how much she should save for retirement.
- A high school daughter suddenly decided to go to college and mom wants to know how to save for it.
- A resident alien wants to know if it makes sense to invest in his 401k.
- A woman moving to Spain wants to know what to do with an extra $400 per month.
From a new book "Wall Street's Wisest Man," Tom and Don discuss the author's Seven Principles for a Perfect Portfolio.
We dedicate most of the hour to the investing guidelines, discovering that we agree with most and have issues with others.
Plus, Don gives a dramatic reading of a listener's question about buying extra pension service years.
This week, Don answers a bunch of questions phone in to 955-935-TALK:
- What do we think of the Avantis funds?
- Is having $400K invested invested enough to be comfortable?
- After securites are sold will there be taxes owed?
- It is time to reduce portfolio risk and how?
China is one of the world's largest economy, yet still an emerging market when it comes to investing. While risky, you need to invest something in emerging markets funds.
Plus, we hear from another younger listener who explains why some young people don't want to hear what we have to say about money.
Tom and Don discuss the various retirement account options from regular IRAs to Roth 401ks to Simple IRAs. Whic ones might be best for your situation?
Plus, how should a young investor invest now and into the future?
Many investors are blisfully unaware of the costs they pay for invesments and financial advice. Yet, paying less is a easy way to increase returns. Learn about the different pricing structures and the myriad ways mutual funds charge fees.
Plus, Don takes questions on:
- Using inflation-protected securities in an emergency fund.
- Moving from expensive funds from Edward Jones into far less expensive Fidelity funds.
- When is it time to add bonds to a portfolio?
- How to allocate $90K in money at the bank.
Robin Hood stock takes a tumble after IPO. Initial public stock offerings are akin to pure gambling.
Yes, we are old. However, are we really out of touch with younger investors? Don reads a recent review that accuses us of reverse agism. The writer claims we failed to give a reasons why we dislike crypto. Plus, is someone with $200K rich?
Then, Don takes questions on:
The wisdom and particulars of increasing equity exposure is a portfolio.
What should someone do to catch up from a lifetime of saving a bit less than needed?
A widely age-seperated couple looks for the best Social Security withdrawal strategy?
A 41-year old non-saver needs to get started.
Don tries to answer a slew of your questions:
How to pick a small cap value fund.
Their fee-only advisor refuses to help with 401k.
Some California houses haven't appreciated.
What is the difference between the $10,500 and $58,000 401k contribution limit?
If you are expecting your investments to return anywhere near this study's participants, you are bound to be disappointed. What is a realistic amount to expect your investments to make in the future?
Plus, a listener with a complex question on using bonds in a taxable account to fund an education.
Investing news organizations often use sensible, albeit inane advice to reel you in. Then they hit you with the bad advice that they sell. One of the worst offenders are out "friends" at the Motley Fool.
Then, we take questions on flipping the typical portfolio placement advice and reducing income to increase Roth conversions.
This episode is also a video on YouTube.
Housing prices are up by an unprecedented amount nationwide. Where will they go from here?
Is it better to buy or rent in the current environment?
For lower income buyers do "manufactured homes" make sense?
How can an insurance company guarantee a 4% annual return?
Can onwers of old LTC policies opt out of Washington's new state plan?
An older woman debates the merits of keeping or selling a rental property.
Past performance does not guarantee future results. This is an understatement. An investment's past is a generally terrible indicator of it's long-term prospects. Tom and Don share a far more accurate indicator of future investing success.
Does it make financial sense to buy a vacation home?
The "best" plcces to park short-term money aren't very good.
Do a caller's found money plans make sense?
Does it makes sense to opt out of new Washington Cares program?
With people spending $250K or more to fly into space, ow much was the first commercial airline flight over 100 years ago?
Another Q&A Day:
Does the child tax credit allow you to fund a kid's Roth-IRA?
How do various compounding methods work?
Jackson Palmer, the creator of one of the ten largest cryptocurrencies publicy stated that crypto is "designed to extract new money from the financially desperate and naive." Meanwhile an article in Current Affairs magazine states "the arguments for [crypto's] usefulness fail completely."
Once again, we try and persuade listeners that crypto is a "fool's game."
Plus, a great question about a questionable financial service provider and the problems with the CFP Board allowing members to rip off clients.
The market was way down this week and the news media sounded the alarm. Then a day later it gained most of it back. What do these moves mean to you?
Oh, and Tom sneaks sports into the podcast (again).
Then we take the longest written question ever about one of the worst 401k plans ever.
Most people need professional financial advice, yet few seek it out. Tom and Don focus the facts about financial advisors, positive and negative (often VERY negative).
We talk dollar-cost-averaging (and Tom questions the callers motive).
California City. We share more information on this old land scam.
A caller is looking for our 401(k) and 403(b) plan review site: 401411.com
What's an Alford Plea?
Clark Howard shares advice on finding financial advice and the value thereof.
We've hit a fiscal bump on the road to Covid recovery. Inflation has snuck back into the economy. What's the real story and what should you do to plan for possible inflation?
Yield stretching is making junk bonds less rewarding.
What to do with student loan payoff money?
Used cars are selling for more than new cars?
What if moving money to a Roth doubles tax rate?
How to buy I Savings Bonds?
Don continues to whittle down the pile of listener questions (thanks for these):
- How should contributions be divided between Roth and pre-tax accounts?
- Should an extra $10K fund a Roth of pay the taxes to convert to a Roth?
- Vanguard or Fidelity for a small cap fund?
- Mom inherited some expensive broker sold mutual funds and wants to give to him.
- Does it make sense to get involved in an employee stock purchase plan (ESPP)?
Recently, the Securities and Exchange Commission (SEC) has started cracking down own fiduciary advisors who sell fee-based clients expensive loaded or hidden load mutual funds. How can you verify your advisors adice is in your best interests?
Plus, we take questions on...
- changes to Utah's 529 program.
- using even a low fee variable annuity in a retirement plan.
Don, Tom, and Paul Merriman get together again to discuss the pros and cons of owning stocks and the stock market.
Stocks are considered risky investments because of their volatility. BitCoin advocates tout it's stability, yet stocks have been much less frightening recently.
Then, Don answers questions about:
- How to best invest in fixed income in a taxable account.
- Investing in 529 plans for kids' education.
- Does it make sense to invest in a mediocre 401k with a match?
The weekend show at KOMO had some recording issues.
As the e-mail bin remains full, Don creates a special Saturday edition on:
- The right way to invest in a TSP.
- Getting started with a better retirement portfolio.
- A comment on Vestory's free meetings.
- Is Paul Merriman's 10-fund portfolio properly allocated?
- Should a pension count as part of a fixed-income portfolio?
Wow. We must be getting popular. Thanks for all the questions. Don takes a crack at answering your questions about:
- Paying taxes when converting to a Roth IRA for the kids.
- Avoiding taxes when moving from American funds to Vanguard.
- Staying in a Merrill Simple-IRA and rolling money out annually.
- Creating a diversified portfolio with Chinese stocks.
- Convesting mutual funds in IRAs into ETFs.
Once again, investors share their next decade investment expectations and, again, you're probably wrong.
Plus, Tom and Don advise a listener who wants more control over his socially responsible portfolio.
With Don on vacation, Tom is joined by The ConsumerMan, Hern Weisbaum to discuss a variety of scams and how to protect yourself.
Plus, Tom takes calls on:
- Taking a lump-sum or pension
- Paying off
- mortgage or investing
- What to do with a CD
- and more
Over $22 trillion is languishing in bank accounts, doing nothing for you. What should you be doing with it?
With Don vacation, Tom is joined by Paul Merriman, who is "Talking Millions." Paul shares some small moves that can make big bucks over time. They also discuss where the market might be heading.
A caller wants to know what to do with $500,000.
Another wants to know how to get his free book.
Paul shares an article by Seth Godin.
Don rarely rests in his quest to educate you. Today:
Educating kids about investing using compound interest.
The great pay-me-now-or-later Social Security debate continues.
There are so many bad "investment" (speculation) ideas being pitched for your retirement assets. Quite possibly the worst idea to date is buying cryptocurrency in your 401k (or IRA, etc).
Plus, a listener wonders what would have happenedd to an investor who unluckily bought stocks at their high every year.
We thought the COVID pandemic would have been bad for the economy. Yet, the stock market and home prices have soared in the past year.
How would an unlucky investor have done buying at the top of the stock market every year?
It's not just senior citizens getting ripped off by scam artists, the number of young victims is rising. Don takes a chance and clicks on a retail scam on the show.
After scaring some investors a weeka ago, the market roars back,
Listeners are looking for help:
- Changing to a new investment advisors.
- Recovering from watching his retirement drawn down by his ex-wife.
- Where to invest for more income.
- An excellent saver desperately needs a financial plan.
We keep hearing from listeners who claim to follow our advice, but we find their portfolios are nothing like what we suggest.
A caller wants to know if he's on track for retirement despite the many mistakes he realizes he has made.
A listener wonders if it makes sense to use savings to pay down high interest debt.
While the heat is on, we keep our advice cool.
Should money managers give you what you want or what you need? Do you really need any investment you don't easily understand.
Plus, a listener contributing to a 401k with high fees wants some investing advice outside of his work account.
Again, Tom and Don are joined by Paul Merriman to discuss the time frame over which invetsors should remain patient and how much return can reasonably be expected.
Perceived as nothing more than financial product peddlers, stockbroker would prefer to be called "financial advisors" or "wealth managers." Do, with all the title confusion, how should you seek out investing advice?
Plus, a listeners asks: Why does it make sense to pay off a mortgage and own bonds?
Beware of old securities ideas being offered again. remember, you can't get high returns.
Plus, the "smart" money can be pretty dumb.
Listeners want to know:
The best way to create income from portfolio?
Instead of real estate, what should be done with $100k.
Finally, a multipart question from a great saver who just can't seem to get investing right.
People freak out when stock prices fall, but the occasional decline is the price you must pay for decent future retirn potential.
Then, Tom and Don dive into your questions:
- Is it better to wait for Social Security and live off other investment?
- After failing to take our advice and liquidate crypto, what now?
- A caller disagrees with our Social Security withdrawal advice.
- Is there way to save a surviving spouse from the higher tax rates as a single filer?
- How to invest extra money after 403b contributions?
Most of the people selling financial products are misleading their clients and deluding themselves. Are you one of the honest brokers or "advisors?" Is your advisor telling you the truth.
Then, callers want to know:
- Does it make sense to pay capital gains taxes on real estate or defer them?
- Why would an advisor suggest actively managed, complex bond funds?
- How do users read their RisQuiz?
A few Dimensional funds (DFA) are now available to the public as exchange-traded funds (ETFs). ETFs has now reached the point where the right kind of ETF (passive or index) can be superior to a comparable mutual fund.
Plus, we hear from a listener who is ready to follow our advice, to a point.
Someone else predicts the demise of of balanced portfolios and suggests replacing them with farms.
A famous soccer player kicks $ 4 billion off Coke's price.
Should I-Bonds be a part of an emergency fund.
Another special episode after Don discovers that the weekend show on KOMO was not recorded. We head back to our large quantity of questions. Since they're written, utilize AI to act as readers to ask:
- Does it make sense to use I-Bonds in stead of tax-free bonds?
- What's wrong with paying taxes from an IRA when converting to a Roth?
- When to sell overpriced mutual fund "C" shares?
- What should be done with a strange mix of actively managed mutual funds?
...so, Don answers a lot of your questions:
Does it make sense to roll 403b plans into a Vanguard IRA?
Should a 15-year old buy his dream car or settle for less?
Is there a reason to move from a great portfolio of funds into ETFs?
Can I-Bonds be used as an emergency fund?
Would is make sense to move a target-date 401k into a Fidelity IRA?
Home prices are through the roof (I know, too easy). Houses is on fire (sorry). Yet, the real estate market has been hot this year. Is there anything you should be doing to take advantage of this crazy market?
Plus, a listener wonders if there are better, cheaper options to Fidelity Balanced fund.
There are a number of money myths that get shared as fact.
In this edition of the Talking Real Money and Sound Investing, Tom, Don, and Paul Merriman each discuss a popular financial assertions:
- Market timing is bad.
- There is no need to rebalance
- Everyone is entitled to high safe income on their money.
An estimated 1 in 9 older Americans suffers from diminished mental capacity, making it difficult to make responsible financial decisions. What should you do to protect your portfolio from cognitive decline?
A listener wonders why we suggest Vanguard so often.
Over $1.6 TRILLION is languishing in old company retirement plans. Properly invested, this money could fund a lot of great retirements.
A new investor wants some investing ideas.
A caller wonders if precious metals are good inflation hedges.
A woman has a lot of CDs coming due and wants some investing advice.
Another listeners seeks our opinion on Vanguard High-Yield and Liberty All-Stars.
Does free popcorn make AMC a better investment?
Financial advisors too often tend to tell you what you want to hear as opposed to what you need to hear. A good advisor will make you do what should be doing. You shouldn't be buying cryptocurrencies.
We also talk about conflicted advice, like the many financial products that Dave Ramsey "recommends" for a fee. These include problematic timeshare resellers.
A listener has a slight difference with our RMD advice for IRAs.
We discuss some silly post Covid "smart money moves."
A caller has a friend who wants to move a TSP into an indexed annuity product.
Another is seeking advice on the tax ramifications of moving money from an IRA to a Roth.
In our zeal to get the perfect portfolio, we sometimes lose track of the big picture. In other words, a strong plan managed properly doesn't need tweaking.
What's our opinion of Dave Ramsey's recommendation of Zander ID theft insurance?
What's the best way to deal with a higher-fee American funds 401k from Edward Jones that offers a decent match?
It's the two-thirds Bob from Lynwood episode as we try to catch up with listeners questions:
First, Bob wants to know how accurate a newsletter precuction was from 20 years ago.
Then, Bob is back for our opinion of I-Bonds.
Finally, a more involved question about using tax-free bonds in a portfolio.
Businesses promise much but deliver as little as possible. Make sure you're getting the services and products you deserve by becoming your own advocate.
Plus, we take a question on the ongoing emotional battle between investing and paying off a mortgage.
The Dow Jones Industrial Average is 125 years old. While it should have been retired 50 years ago, Don and Tom discuss why it should no longer be the benchmark for "the market."
Plus, we take a question about variable annuities and the insurance industry's ludicrous argument that surrender fees are actually good for you.
With 10-year Treasury Notes yielding a paltry 1.6%, it must be impossible to get over 3% from a US government-backed bond. Wrong, Tom and Don share a practically risk-free place to park up to $10,000 that's currently earning 3.5%.
Plus, a whole lot of calls on:
- Stable-value funds, vs bond funds.
- An alternative to Wellesley Income.
- Another renting versus buying question.
- Determining when to move lump-sum pension to IRA.
- Investing for a child's education.
- A crypto trader who's ready to start building a real portfolio.
Today, we talk about the different ways couples feel about investing money and share a simple way to meet in the middle.
We discuss when it might make more sense to rent than to buy a home.
We take more questions than we expected for a holiday weekend:
- What to do with house building funds?
- Tom corrects a previous mistake about Washington's upcoming capital gains tax.
- What should be done with some long-held land?
- Is there an issue with an investment advisor becoming a contractor?
Our brains are wired to make bad financial decisions. Tom and Don talk about why you need to take charge of your emotions to make money.
Plus, a listener wonders if they should sell their home to take advantage of the crazy real estate market.
Today, on our joint Talking Real Money/Sound Investing podcast, Don and Paul Merriman discuss index funds and why they are the only way to build a decent portfolio. It's almost impossible to beat the market, so just be the market.
Paul and Don show you:
- The best indexes to own based on science.
- Keeping costs low.
- The differences between funds and ETFs.
- How to maintain your long-term discipline.
Visit Paul at paulmerriman.com
There are over 200 financial professional designations. Most are practically meaningless. There are better ways to select an expert.
Plus, a listener wonders if there's a reason to lock in a profit within a Roth IRA?
Americans have been paying off record amounts of debt which is good, to a point. There is some debt that is often better left alone.
Plus, are you entitled to a decent return with no risk?
Another caller driven episode waits with questions about:
- Capital gains taxes on a quit-claimed house.
- Diversifiying retirement investments.
- Investing new found money (our most popular questions).
- Increasing a portfolio's return.
- Finding a better mutual fund.
- Parking a home down payment.
Making a few small strategic changes to your portfolio can add huge gains in the future.
Plus, we are swamped with questions:
- Starting with a four question caller: IRA Crypto, Early SS, Roth conversion, Emergency funds
- Giving money to a child? What are the alternatives?
- What do we think of automatic 401k investments?
- Move a 401k to Fidelity funds to save on fees?
- What's the best way to take money out of retirement accounts?
Plus, we talk about the funding problems most people will face in retirement.
Cryptocurrencies, as we know them today, have no future. Crypto advocates are just too stubborn or greedy to acknowledge their demise. Certainly, digital currencies have potential, but BitCoin and it's breathren are already on the way out. Won't you hate being the greatest fool?
We take two questions on when to take required minimum distributions (RMDs)
Finally, the host of the Simple Money, Simple Life podcast calls to thank us for inspiring him.
The vast majority of financial advice comes from one of three groups:
- Prognisticators (fortune tellers)
- Promoters (people pitching products)
- Preveracators (bald-faced liars)
Who should you trust:
- Well-vetted academics.
Plus questions on:
- The total costs of using a fee-only advisor?
- When is it time for a new advisor?
Risk underpins everything we do. Risk is why investing makes money. Without risk there is no return. Yet, there are many kinds or risk and investors can avoid much of it with a plan.
Then we take your questions:
- Does it make sense to wait to build a new house?
- Is a living trust better than a will?
- What should I do with money I can't stand the thought of losing?
Home prices are up like crazy. What should you do?
Plus, those selling investment property are being pitched DSTs. Can these complex, expensive tax dodging "investments" live up to the hype?
Generally, complex investments are best avoided.
Does it make sense to pay off your mortgage?
Three topics from a listener: Markets must go down? Self-directed IRAs? Local scams?
How can you avoid being ripped off?
How to invest for approaching retirement in the TSP?
A caller meant to enroll in 401k plans in the past. Can she go back and get the company match?
How should you invest in times of rising prices? There is no way to know if inflation has returned or we're experiencing a pricing blip. The good news is that there are many sensible ways to hedge you portfolio against inflation without taking unneccesary risk with gold or commodities.
A listener looks for advice on investing in small cap funds through Vanguard.
We discuss the right portfolio size for a massively diversified portfolio.
A first time talk radio caller looks for REIT investing advice.
We consider better ways to get a 4% income stream from your portfolio.
Tom and Don explore how "investors" react to news and events and explain how your fiscal feelings can hurt you.
We start with Elon Musk's recent appearance and the effect it had on the price of Dogecoin. Then we go on to look at variety of other behaviors that can harm you financially.
A listener looks for advice and worries that Dave Ramsey's investing advice may not be the best idea.
Welcome to another joint Talking Real Money/Sound Investing podcast. Today, Don, Paul, and Tom update you on the latest cryptocurrency news.
Plus, with more than 10,000 mutual funds and ETFs available in the US, how do you choose the best ones for your portfolio?
If you are considering early retirement, you need to consider the possible pitfalls and must have a well thought out plan.
Plus, a listener asks for the best mix of bond maturities for his portfolio.
A lot of baby boomers are still supporting their adult children.
When does it make sense to convert an IRA to Roth.
Why don't we spend more time talking about speculating?
Should more money be invested in consumer staples for stability?
What to do with two houses?
When is the best time to take required minimum distributions?
People are following all manner of crazy investments. While many will plunge to financial oblivion, you can avoid the fall by avoiding the hottest stuff.
Excited about "investing" in crypto? Don shares the "incredible" list of businesses that accept the big one, Bitcoin.
What kind of advice should you expect from your "financial advisor" (a meaningless moniker)?
What the heck is a TFRA? Ah, yet another trumped up acronym to help some "financial advisor" (in this case, insurance agent) sell you something that makes them a huge commission.
A caller wonders when a tax-free, municipal bond fund makes sense.
A new listener is outraged at the fee structure of fee-only investment advisors. Don addresses his concerns.
Don answers five of your questions on:
- How should mom invest a small windfall for a more comfortable retirement?
- What is the difference between a bond mutual fund and a bond ETF?
- A "financial advisor" recommends an annuity or universal life. Is the a better idea?
- How can she avoid having her mortgage sold to Wells Fargo?
- Sell a house that needs a lot of work now or fix it and sell it later?
Reports of the 60/40 portfolios death have been grossly exaggerated. Seriously? What are the alternatives to bonds in a well-diversified portfolio?
Then we takes questions about:
- Differences between US vs international bond investing?
- Which Fidelity funds to use in a self-directed retirement account?
"Sell in May and go away." Wall Street has been saying this for decades based on the believe that summers have been bad for equities. What are the facts?
Plus, we share the tale of dumber investment than GameStop, a tiny $100 million New Jersey deli.
We start with a special YouTube channel update.
Then, we talk a bit about Buffett. Is he the best stock picker ever, just lucky, or something else?
Listeners ask questions about Roth IRAs and tax-efficient mutual funds.
We discuss Tom's $43 dollar hamburger order.
Caller want to know when to start converting a portfolio to retirement cash and whether to use ETFs in tax-advanr=taged accounts.
Survey's show that record numbers of older American's plan on retiring early. Do you have a plan for both the money and the life you want to live.
Plus, YouTube ban's Talking Real Money's video feed for no apparent reason. Still waiting for a resolution.
What's up with Warren Buffetr's Berkshire Hathaway? Is it really doing badly?
Will Amazon rule the world of retail (and more)? Many years ago another company had a similar reputation.
Plus, we take some listener questions.
CORRECTION: Please contact the CEO of YouTube, Susan Wojcicki at susan@google.com
Why was Talking Real Money banned from YouTube? We have no clue. Do they believe that talking about cryptocurrencies will somehow incite violence? We are truly baffled. So, here is the latest on our battle with this giant division of Google and a plea for you help.
Please ask the Google CEO to look into this by sending him an e-mail: sundar@google.com
Thanks.
Don takes a question about the best way to allocate Paul Merriman's 10-fund portfolio.
Plus, he shares the story of YouTube's inexplicable takedown of our first video podcast and cancellation of our "Talking Real Money" YouTube channel.
Watch the video on Vimeo or at talkingrealmoney.com.
Welcome the first episode of something new.
After working together for many years, Paul Merriman, Tom Cock and Don McDonald are teaming up for a new audio/video podcast every two weeks. The audio podcasts will become a part of both the Talking Real Money and Sound Investing podcast feeds.
In episode one, we share of thoughts and opinions about the various crytocurrencies like BitCoin and discuss the technology behind it.
Proper rebalancing is more important than ever, but it needs to involve both buying and selling.
Plus, another listener has a beef about our advice to shop for insurance.
Tom and Don answer common questions about Social Security.
Plus, a listener is looking for our favorite small cap fund.
One of the biggest problems people have is our belief that we can get everything we want. This is true for investing and romance.
Then, lots of questions and comments:
- How to choose a mortgage lender
- You can move directly between a Vanguard fund and its ETF.
- We are chewed out for our insurance shopping advice.
- Are muni bond gains taxable?
- Why don't we talk more about retirement lifestyles?
- A real estate agent shares his perspective on mortgage lenders.
- Does it make sense to use Roth IRA money to buy a second house.
We may be nearing peak insanity in almost every financial markets. So, now what should you do with your money?
Plus, we take a lot of calls:
- Starting over and wondering whether to buy a house or invest.
- A long-term 100% stock investor nears $3 million. It is time for bonds?
- As she nears retirement, what should be done with 401k?
- Why is one international fund doing better than another?
- How to invest for retirement in your 30s?
On today's QQRR, Don takes a question about the differences between Warren Buffett's Berkshire Hathaway and total market index funds.
This is a great problem to have. Too many questions piling up. So, today Don dives into a bunch of them:
Does it make sense to convert an elderly woman's IRA into a Roth for beneficiaries?
A guy tries to pitch his friend on the benefits of Primerica.
Does it makes sense to have earthquake insurance?
What is a good tax efficient fund?
What should be done with an actively managed Fidelity fund that is paying out lots of gains.
There is a powerful case for financial stoicism. As an investor there is very little we can control, so it pays to concentrate on those and ignore all of those things over which you have no power.
A caller is heartbroken over a delayed investment.
Missing the best 10 days and you missed a lot. What about missing the 10 worst days?
In addition to helping you invest better, we also want to help you spend less (while still enjoying life to its fullest).
Why do we talk about bonds being risky?
Jim Rogers is (perpetually) bearish. What should investor do?
Whatever the markets have done tell you nothing about what they will do. So, stop trying to guess the future. You'll just make it worse.
Is an ultra-short-term bond fund as safe a money market fund?
Do US debt levels make us nervous?
Investing overseas makes even more sense.
Why are speculators believeing Hertz?
How much is a katrillion?
The wrong question gets asked...again.
How many countries back their currency with gold?
We discuss the growth of Environmental, Social, and Governance (ESG) investing. Is it something you want and how much should it cost.
As part of an effort to reduce the hodgepodge, which agrressive growth index funds make sense.
We take a call about the world's preminent gag cryptocurrency, Dogecoin.
Are there any drawbacks to using bond ETFs?
What should be done with financial gifts to grandchildren?
Where should $100K be parked for 18 months?
In a possible new weekend edition of Talking Real Money, Don takes on a single question:
This episode he explores the question of liability insurance. Do higher net worth individuals need greater coverage to protect themselves from torts?
Rather than have Don read the questions he answers we decided to employ some robot readers to read your typed in questions:
- How should retirement funds be allocated?
- What do we think about Capital Group (American Funds) and "C" shares?
- Why don't we suggest mid-cap funds?
What kind of return can you expect from stocks? No one can possibley know, but Professor Roger Ibbotson guesses it will be less than what we've experienced in the past.
Plus, an 82-year old man is getting divorced and wanst to know what to do after a property sale.
One of the greatest crooks of all time kicks the bucket. Yet, investment scams continue, including one involving a grandmother ripped off by her own grandsons.
Plus, a caller wants to know what to do with an old managed USAA account that is now at Schwab.
American have huge sums of money making very little.
Is Tesla fairly valued?
Callers ask:
- What can be done with cash in a complex self-directed IRA?
- What should be done with money-losing stocks?
- What do we think of Ed Slott's generic IRA advice?
- What should be done with a piece of commercial property before retirement?
- Where to park down payment money?
Mutual funds will soon be bragging about their impressive one-year returns thanks to the elimination of March 2020 numbers. Pay NO attention to short-term performance.
What kind of dividend is better?
After selling a house what should be done with the money?
Does it make sense to transfer money from mutual funds to ETFs?
Even after a great year for stocks, we tend to focus on the bad parts of our portfolios, namely bonds.
WARNING: It's Friday, so we left some errors intact ('cause they're funny)
Is "the market" going up or down? Choose your answer. Tom and Don share a better way to plan for the future of stocks.
A listener takes us to task for our annuity criticisms.
A truly unique episode you don't want to miss.
The financial industry is overflowing with liars and the regulators know it. However, their feeble attempts to improve transparency meet with consistent failure. What's the solution? Should everyone be a fiduciary, all the time?
Plus, a listen is concerned about potential transaction fees in a self-directed brokerage 401(k).
Oh, how I have missed the free steak dinner pitches over the past year. Covid must have really put a dent in the indexed annuity sales. Well, they're back and badder than ever.
We examine the claim in Kiplinger's that pickle ball and investing are similar.
After moving American Funds to Vanguard, is the allocation similar?
What's our opinion of SSIRS, a retirement income strategy.
The Motley Fool shares what should you do to prepare for the stock market bubble?
What are the tax ramifications of a parent's gifts?
Will a public employee face a lower Social Security payment?
Looking for a strategy to reduce a spouses future taxes.
Another caller tried to time the market and failed.
Finally, the Motley Fool that we should stop trying to get rich quickly. However, their simple advice is seriously lacking.
Then we talk about a caller's hodgepodge portfolio.
Then, we hear from a school employee who gets sent to an insurance salesperson for 403b investing advice. Insurance has no place in any qualified retirement plan.
Finally, we are appalled to hear about a stockbroker who invested an 87-year old woman's money in risky stocks. We try to help her son create a better portfolio.
Why would a main stream publication like US News publish an article on investing in hedge funds? Does investing in hedge funds make sense for anyone. Don explores the (pros?) and cons of these exclusive products.
Plus, a listener is outraged by an article that trys to discourage saving and investing for retirement.
How to plan for a lifelong income in retirement. Social Security won't cut it.
Does it make sense to convert an expiring term life policy into pricey cash value life?
Which fund group is best for a 529 plan?
Home prices rose at the highest level in 15 years. That doesn't make a home a great investment. We discuss the financial realities of real estate.
A caller wants to know if a pension counts as a his fixed income portfolio.
Everyone seems to be looking for an alternative to traditional fixed income investments. Are dividend paying stocks a good source of safe retirement income?
Are fixed annuities a safe alternative to bonds?
Is it wise to buy a new home in Arizona and rent the original home?
Real estate is not always as hot as you'd like to believe. Plus, it's illiquid.
Managing your money is not as easy as it seems.
Selling two houses and capital gains taxes.
In a market like this, monkeys throwing darts would have made money. A rising stock markets feels good, but doesn't mean you know anything about the future (because you don't).
Many of today's callers want to know the same thing: How can I make more money on my fixed income portfolio without taking more risk?
How to use joint tenancy as an estate planning tool.
Finally, do you prefer nice furniture of low fees?
Nobody writes a more muddled and misleading headline than the folks at Motley Fool. They're great at getting your attention, just short on valuable information.
A listener gives Don a new opportunity to pontificate about Infinite banking or Bank on Yourself schemes.
Plus, we're extending the Retiremeet video viewing deadline.
Morningstar is really reaching to make a case for the "value" of their star ratings.
Plus a listener wants to know if he can DRIP into mutula funds.
It has only been a year since the stock markets experienced one of the biggest panics in years. Did you sell? What have equities done since?
Plus a caller wants to know if a pension can be considered a bond substitute.
One of the insurance companies big fibs is the immediate annuity income illusion. While they claim to provide an income of 5%, you are getting nothing close to an actual 5% return on your investment.
Insurance salespeople want you to believe they pay more and are safer than they are. We share the real returns you can expect from the safest of annuities and it's not very much.
Sticking with insurance, we take a question about ads from a firm called LifeRates of America.
Then we field more listener questions on
- How an expat can open a Roth IRA in the US.
- The best portfolio allocation (again).
- The difference between "A" and "C" mutual fund shares.
- The proper allocation between taxable and tax-advantaged accounts.
We look at the bad ideas for using your stimulus checks and share some better recommendations for making the most of this free money.
Did we correctly predict the rise of small-cap value stocks?
We answer listeners questions on:
- The wisdom of buying extra pension income.
- The best way to split assets between tax-advantaged and taxable accounts.
- Is it better to take Social Security at full retirement age or wait?
- Why suggest market cap weighting of US and international stocks.
It seems like every decade or so we need to re-learn past lessons about chasing the latest hot investment ideas. Remember when people lost a lot of money on initial public offerings (IPOs)? Now the hot trend is investing in special purpose acquisition companies (SPACs - also know as "blank check" companies). Remember, those who don't learn from the past are desined to repeat it.
Don has an update on Thursday's question about Wells Fargo advisory fees.
A listener has questions about collecting an older spouses Social Security and wonders if she should have money in taxable accounts?
Once again, the facts prove that active mutual fund managers consistently fail to beat their benchmarks, yet most investors still believe that they can still win big.
Then, we take listeners questions on:
- Removing excess contributions from Roth IRA.
- Comparing Wells Fargo's DSIP with index funds.
Don gives his state of financial advice address. He starts with a claim by Jim Cramer on CNBC's Mad Money that a stock market bottom can be predicted and then objects to claims that a bunch of financial apps will turn you from a speculator into an investor.
Then, a mom calls in with the story of her wise investing son and the bad advice received from a Fidelity "advisor."
We get it, you don't want bonds in your portfolio. So, what are the options? Do you really believe that the stock market will stay hot forever or that you possess the magical talents needed to get out before it falls?
We also discuss the dilemma posed by the question (and TV show) Marriage or Mortgage?
Listeners want to know:
- How to catch up on saving for retirement after a divorce?
- Does it make sense to wait a year to collect Social Security?
- Can RMDs be moved into a Roth IRA?
- Do two 529 plans make more sense than one?
- What should a young investor do to save for retirement?
We constantly preach diversification, but our words often fall on deaf ears. For more than a decade, value and small-cap stocks have underperformed. Over long periods, value and small have ourperformed growth and large. However, you will never know when various asset classes will lag or soar.
Plus, we compare Vanguard, Fidelity and Avantis small cap value funds and discuss how you should build an equity portfolio.
What should be done with a bunch of equity in a home?
Don shares the story of time zones.
After winning lawsuit a caller wants to know where to put it.
Why have his 401k Fidelity funds done so poorly when Fidelity Small-Cap Value has risen 29%?
It's hard for new investors to get started. One of the best ways to start building long-term wealth is by setting up automatic investing as early as possible. Don share some ideas.
With our inbox overflowing with written questions Don discusses:
- Vestory's merger with Apella Capital and our sucession plan.
- The issue of rebalancing and taxes.
- What to do with paper stock certificates
- Investing advice for a beginner.
SPACs are nothing more than the latest gimmick to grab your money. Don't fall for the hype.
A listener with a unique retirement matching strategy looks for the best way to invest.
Plus, we share our latest bad review from Apple Podcasts.
Planning for retirement is hard. Yet, many of us believe we have it under control when we don't.
Plus, what do you need to do is you funded a Roth IRA then discover you make too much to qualify?
We are inundated with calls this episode. So, we start with the age old question: How do you find an honest financial advisor who will ALWAYS work in your best interests?
Then we discuss:
- The tax impacts of selling a home.
- Ideas for investing rental house profits.
- After selling stocks in March, what to do with the cash.
- How do you determine whether you'll have enough retirement income
The ARK Innovation ETF has been all over the news after posting huge gains. Just as money started flooding, ARK started sinking.
Everyone wants to be the next ARKK, so we explore the "buzz" surrounding the latest "innovative" ETF, BUZZ.
Plus, we discuss the eases with which Crypto markets can be manipulated after "crazy" rich guy, John McAfee is accused of playing illegal crypto games.
We also here from listeners with:
- A question about hold long a fund should exists and how big it should be before investing.
- Another comment about Tom's "cash is trash" statements.
- A question about using the proceeds from a reverse mortgage to "invest" in BitCoin, gold, and stocks.
We discovered that we were targeted by a Russian online scam involving scam websites.
Listeners ask about:
- A cash value life insurance policy that has turned in to modified endowment contact.
- Taking a flyer on a BitCoin mutual fund.
A lot of folks seem worried that stock prices are near all-time highs. Do they think that the stock market will eventually stop rising completely? Stop worrying. Rising stock markets are normal.
A listener looks for investing advice for when he can no-longer fund tax-advantaged retirement accounts.
Plus, Don goes off on annuities in teacher's 403b plans and the unions that are complicit in this blatant rip off of educators.
To wrap up, Tom and Don share old Civil War stories for no apparent reason.
Many have proclaimed that "cash is king" in the past, but in today's low rate environment is hoarding cash a financial mistake?
Plus, a listener wants our opinion of the actively managed Fidelity Balanced fund.
A mutual fund for wealthier investors gets into trouble promising high returns with low risk.
Don rants about the continued sorry state of 403b investment options for teachers.
Charlie Munger gets called old (hey, he's just 97) for saying that Robinhood is bull****.
Plus, lots of listeners questions:
- How to invest a small financial windfall?
- What are the expected returns for various stock/bond allocations?
- What to with the proceeds from a rental house sale?
- How to transfer money out of a 401k and give wife a little cash?
Does the recent pop in interest rates spell the demise of bonds? We discuss bond investing and the primary reason for investing in them.
Are shoes footwear or investments?
Listeners contact us about:
- Concerns over Vanguard working with a Chines firm.
- The safety of online CDs.
- Tom's comments about was.
- Worries about investing in bonds (see).
- Buying a house now with FHA or waiting to save a 20% down payment.
Don recently appeared on the "Stacking Benjamins" podcast and played a game based on a list of ten great investor habits. None of the "contestants" did well because the list was a bit weird. We go through the list and try to explain it.
Plus, we take a complex question from a listeners on asset allocation concerns, Fidelity Zero funds, and building a bond portfolio.
Finally, investors are beginning to mistrust commissioned financial advice providers. If someone receives a commission for selling financial products that are not acting as your fiduciary!
Plus, a listener asks about the best options to pay for long-term care.
Many financial pundits believe that, due to low rates, you need to move away from a traditionaly balanced retirement portfolio. They suggest that you move your safer fixed income investments into riskier higher yielding securities.
Listeners want to know about:
- Moving money into Roth better in 401k or IRA?
- The best ways to make future chariable contributions.
Tom and Don share some valuable truth about what is and isn't investing for your future.
Plus, a listener has questions on possibly transferring non-deductible IRA to a Roth and wants to know what can be done with a non-traded security.
Don has railed against indexed annuities for years. Now, John Rekenthaler from Morningstar joins a huge chorus of EIA naysayers.
Why do we keep fooling ourselves about our predictive talents.
Another stupid crypto update and Doge Coin vs. Dumb Coin.
Plus, callers ask about:
- Using retirement money to buy a house
- Paying off a mortgage vs investing.
- The best way to change a portfolio's asset allocation.
A note from Don:
Saturday, February 20th is RetireMeet America, our biggest live event ever. As the creator, designer, MC, presenter, and main tech guy, I have been swamped and didn't have time to create a podcast for today. Instead, I created a short recording about the live event and how it works.
Therefore, this podcast will not be of much interest after 2/20/21. In face, I will probably delete it after that. I hope to "see" you at RetireMeet. If you can't make it we hope to have videos of the classes available in a couple of weeks at Retiremeet.com.
A recent study shows that women put less money in stocks. While they tend to be better more disciplined investors, everyone needs stocks in their portfolio. There's a better way.
Plus, a caller wants our source for securities data.
Aftet investigating the big Rediit-fueled run up of GameStock stock (GME) may have been illegal front-running. The SEC has filed suit against the former broker known as "Roaring Kitty."
Plus, we try and help a woman invest a bunch of money that has been sitting around doing nothing for years.
To paraphrase a famous President: Don't ask what to do with your money. Ask first what your money needs to do for you. Investor keep asking the wrong questions. What should you be asking?
Then, lots of calls and other fun stuff:
- What should be done with prevviously restrivted stock units?
- What should be done with an old pension?
- His son wants him to "invest" in BitCoin
- Don shares his Tesla/Bitcoin Index
- Does it make sense to use future gains to help provide income in retirement?
- Does Forex trading make sense?
We check back in with a couple of our "favorite" purveyors of doom, A. Gary Shilling and Harry Dent to see if there forecasts have come anywhere near true.
Tom gets a Social Security scam call.
We discuss the stupidity of the market:
- How can a crypto joke have a multimillion dollar market cap?
- How can AirBnB be worth more than three of the biggest hotel chains... combined?
Caller want to know:
- If you can set up a Roth IRA for young snow shovelers.
- Whether it's better to pay down debt or invest.
We hate to possibly ruin Valentine's Day, but apparently more people cheat financially than sexually. We discuss the problem and the reasons.
Plus, a listener wants to know if two funds are better than one.
Many need the security of a guaranteed income in retirement, but do immediate annuities make sense for most investors? Professor Wage Pfau wants to to believe they do.
Are equity indexed a decent way to make money with no risk?
Plus, a listener needs investing help for parents who are worried about the "current" environment.
When you search for income on the web, you will probably find some really bad or even dangerous options. There is no magic to creating a livable income. You need a plan.
A high-income Ponzi scheme goes down.
We analyze a listener's mutual fund portfolio.
What are diamond hands? How do they differ from paper hands? We checked out the strange world of the trading subreddit r/wallstreetbets.
Then we take a unique call from a older man concerned for the welfare of his much younger (10) girlfriend who claims to have just come into $5 million.
Later, we explore the ARK of innovation, one of the hottest ETFs around.
We take lots of your questions on:
- How to deal with old I Bonds.
- The best way to convert and IRA to a Roth for tax purposes.
- What to do with an old employer's retirement plan.
Just when you thought there was nothing new to worry about, the specter of inflation looms in the distance. If inflation does return what should you do?
Plus, we are inundated with calls on:
- Parking money for a few months.
- The performance of cash-value life insurance policies.
- 401k and IRA creditors protections.
- Giving up a power-of-attorney.
- Investing new self-employment income for retirement.
- How to stop worrying about the stock market.
As April 15th approaches, our thoughts turn to taxes. Be careful. Don't let tax considerations overrule smart investing decisions.
Listeners want to know:
- Are no-load American or T. Rowe Price funds as good as Vanguard index funds?
- Can a converted Roth be combined with a regular Roth?
If you want excitement or huge gains, you're not an investor. Those are the attributes of gamblers. Recent events should help remind us that we can't beat the market, so it's better to be the market.
Plus, Don takes questions on:
- Using Schwab target date funds
- Deciding between a rollover into a new 401k or a rollover to Vanguard.
Studies have determined that trading stocks reduces investors returns, is inherently risky and increases portfolio volatility. Why bother?
Plus lots of calls:
- A dangerous ETF income portfolio.
- Why did the market go down?
- Determinng proper asset allocation.
- Setting up charitable giving before death.
- A disjointed investor is unhappy with returns yet wants little risk.
- Diversifying among multiple IRAs.
Once again, Talking Real Money bites into another nutty "financial" story and we delve further into the instanity of the GameStop stock games. Plus, Paul Merriman drops by to share some ideas that could be woth millions.
It's just Don today lamenting the idiocy of crazed online stock traders again. If you're one of them, STOP NOW, before you lose real money.
Plus, Don takes a spoken question from loyal listener from the UK on fixed income allocations in the current economic climate and then heads back to US to talk international investing.
The crazed buying of troubled stocks returns with a vengeance as compnaies like GameStop and AMC Entertainment get bid way up by a combination of inexperienced traders and Internet troublemakers. There could even be some illicit behavior.
Plus a caller wants to know about allocating her retirement investments in the few years before retirement.
The are some (looking at you, Dave Ramsey) who believe that you should be totally debt-free. But, does it really make sense to pay off your home?
Tom and Don take your questions on:
- Ways to reduce income taxes.
- Are "Worthy Bonds" worthy of your investment?
Investing 101
What is a stock? What is a bond? Real investing is betting on the future of the global economy.
Plus:
- How to best give money to grandchildren.
- Places to park cash for two or three years.
- Overleaded with real estate. Where to invest next.
- The long-term differences between Roth and regular IRAs.
- Using Vanguard Total Stock Market for kids.
- managing unneeded money at age 70.
- Investing ideas for $50k.
In a Wall Street Journal article, Jason Zweig implied that investors needed someone off of whom the could bounce ideas, like Warren Buffet's reliance on Charlie Munger. If you do need a money buddy, who should it be?
Plus:
- Is it a bad time to invest?
- Could this be the beginning of the end of AAII?
- Should you use a QLAC to avoid IRA distributions?
- When getting out of individual stocks, where should the money go?
- Are we in a stock bubble?
- Does it make sense to play stock splits?
What should you do if recent events are worrying you. Tom goes back to basics to help you stay on track.
Many find themselves in financial trouble because they failed to seperate feeling from financial decisions.
Plus, Don answers a bunch of questions about:
- A financial advisors fees.
- The value of an international bond component.
- A wife who wants to bet on hot active ETFs.
- An all-purpose mutual fund versus three funds.
- An Edward Jones broker versus do-it-yourself investing.
ARKK posted triple-digit returns in 2020. Will this fund continue to be hot or is it another flash in the pan?
It's heavy duty question day as Don's inbox grows full. He answers questions on:
- The need for an advisor.
- The effectiveness of rebalancing.
- Digital dollar vs gold.
- Small cap or small cap value?
- Does index investing still make sense.
- Can index investing stop working?
We spend far too much time seeking certainty in our lifes and with our investments. Yet, if you want a decent return on your investments, you must take chances.
There is nothing like a great story to get investor's excited. These days the are a ton of exchange traded funds (ETFs) that have a thrilling tale to tell. Should you be listening?
We share another question you need to answer before retiring.
Listeners look for our opinions on:
- Morgan Stanley's suggestion of "private equity."
- Building an apartment in the home for extra income.
- Moving money from an old 401k to and IRA.
- Social Security benefits for spouse after death or divorce.
- The best time to take money out of investments to buy a car.
A record number of baby boomers are retiring. Are you ready to join them? We share some powerful questions to help you decide from Kiplinger Magazine:
- How much longer can you work?
- What will you do when your stop working?
- Will you have enough money to retire comfortably?
Plus, a caller wants to retire early, but is worried about health insurance and a listener wants to move money from his Dave Ramsey reccomended stockbroker without huting his feelings.
Robin Hood has stated that it is trtying to attract more women, but are woman stock traders? Tom looks at how women invest and how you new investors should get educated.
The folks at Zacks claim they can pick the best funds for the future. Don looks back at a few of their top picks from a year ago.
How much cash should one keep on hand?
Are there any problems taking money out of a taxable account to fund a Roth IRA?
BitCoin and other cryptocurrencies may be all the rage, but is the hype justified? Don discusses many of the potential problems with BitCoin and its ilk, again.
Plus, he takes questions on using sector funds and how to buy a first home.
Tom shares the hottest funds of 2020 and why you might want to avoid them in the future.
Nobody expected 2020 to be a big year for equities. Now many fear we may be in a stock bubble. Tom and Don discuss the possibilities.
Then:
- What's the best Vanguard fund for modertate growth?
- Better to keep a target-date fund or use the TSP?
- With the market high does it make sense to sell and slowly buy back in?
- Is "longevity insurance" a good substitute for LTC insurance?
- What's a fair price for a financial plan and advisor?
- How can you fu=ind a godd fiduciary advisor?
- A broker put a risk averse investor into an expensive and volatile fund.
We have always hated the pitches from Online Trading Academy. This organization has, for years, claimed that it could teach you how to get rich trading stocks. Finally, regulators have caught up with them.
A caller shares his experience with OTA.
We share advice about investing in the latest "hot" mutual funds.
There's an an easier alternative to "bucket" investing.
Managing money is not as complicated as we want to believe.
We answer some important RMD questions.
No matter what we say, people still want to believe that the financial future can either be known or accurately anticipated. Did anyone expect that 2020 would turn out the way it did?
Plus, Don takes listeners questions on:
- is it better to use Vanguard, Schwab, or Fidelity?
- How much income can be expected from a portfolio in retirement?
- Does it make sense to move from stocks to bonds for long-term care needs?
Tom loves life lessons. Tom loves making money. That's why he adores these money and life lessons from Bill Gates and shares one of his own, too.
Good riddance to some bad funds. Tom shares a few ways to avoid bad investments and pick better ones.
So you failed to get back into stocks after they started rising in the Spring. Whose fault is it?
Are there hidden commissions in my 401k?
How long does money need to be in an IRA before a Roth conversion?
RMDs are back and, if you're over 72, it's time to calculate yours.
The attraction and dangers of margin debt.
Do Acorns funds underperform?
What will the "Marxists" do to Seattle?
Plus questions about the best vanguard fund for growth and the best Fidelity fund for income.
You know income investors have lost their minds when they start plutting money in high-yielding Uzbeki Som-denominated bonds.
We discuss the tax ramifications of various types of stimulus payments.
Musk moves up to #2 as Tesla stock soars.
With "safe" yields near zero where should investors fo for income (hint: not Uzbekistan).
With most investors paying more for less advice, we dive deeper into those notorious "liar-load" funds (AKA, C-shares).
As 2021 begins Tom shares some easy ideas and simple tips to improve your future financial life.
It's over! 2020 comes to a close and Tom takes this opportunity to share a few ideas that could lead to a better fiscal 2021.
Sometime in our pursuit of money we lose track of the bigger picture. Tom shares his insights on what really matters in life and moneys place in the process.
Call it what you may, Bitcoin is not and never will be an investment. Sure, someday it COULD be a viable currency. Are Yen or Euros investments?
Plus, we take questions:
- How does one use Acorns?
- Better to keep a TSP of transfer to new employer's 401(k)?
- Is a Roth or Traditional account better?
- What should you be doing to start the new year on the best financial footing?
- Why don't we suggest the Fidelity Zero funds?
The future always feels unpredictable, because it is. Far too many "investors" believe investing is something that should be done at the "right" time.
Then, Don and Tom hear from listeners:
- A policeman looking for rebalancing advice and our opinions on some niche funds.
- Are there pitfalls to compnay offered mega backdoor Roth?
- A bad broker mutual fund recommendation.
- We share some figures from Fisher Investments.
- How should a young investor play a potentially hot market?
Merry Christmas! After much thought, Don's holiday wish is for a better financial services industry. Wouldn't it be great if you could trust those who provide fiscal advice as much as you trust your doctor?
Plus, answers to some big questions like:
- What are alternatives to an overpriced "C" share fund from Merrill for a young man's retirement?
- Why don't we suggest Fidelity "Zero" funds and what do we think of IFA?
Tom shares a very timely holiday gift that might last a lifetime and could help create lifelong security.
Robin Hood keeps stirring up trouble with regulators and Don gives up his silly random trading experiment.
Then, we answer some of your questions:
- Does a LIRP make sense for a retirement portfolio?
- So, what makes us so darned special?
- What to do after maxxing out retirement plans?
- Why is the market rising in these trying times?
Plus, we look at the fees structure of many investment advisors and Santa drops by to get some unique gift ideas.
The Standard & Poors 500 is often referred to as "the market." However, a very few hot stocks tend to dominate this index and reduce your diversification. Why you need a truly diversified portfolio. later, we talk about the lack of trust among financial "advisors" and what could be done to improve it.
We hear from caller who want to know:
- How much gold should be in a portfolio?
- How to pick the "best" international fund?
Are the "hot" funds skilled or lucky?
What happens when "everyone" discovers the hottest funds?
There's something new called "Direct Indexing." Why would anyone want to manage an index fund? Doesn't it cease being an index fund of you manage it?
Day trading (heck, any kind of stock trading) will likely mess up your financial future. If you enjoy gambling, there are better ways to do it. No many lose over $100,000 in Las Vegas yet, with day trading, it's easy.
Plus, day-trading poster site, Robin Hood is about to get spanked by regulators. Don also answers questions on:
- The best place to put Roth IRA money for kids
- Waiting for a 401k match and where to go with the money.
Tom talks about making financial and investing decisions when facing major life events.
What are the odds that Us stocks will beat international stocks in any given year? Apparently you believe the rest of the world makes less than the United States. Tom and Don explain why global diversification makes sense.
Then, they take questions on:
- Does a track record matters with index funds?
- Do lower fees improve returns?
- A couple a really terrrible ETFs that have lost 40% per year.
- How to easily distribute retirement accounts to heirs.
It's the time of year when financial professionals start predicting future returns. While we understand the need for return estimates, we also know that predicting is almost impossible. while the past isn't prologue, it can give you some hints.
Then, we answer questions on:
- Making a million with international funds?
- How do taxable accounts work and what are they good for?
- Is it time to break a CD ladder to stretch for higher yields?
- Where should a big retirement payout be invested?
When 80% of "financial advisors" are barely making a living, there is huge incentive to sell at any cost to make their commission goal. Don shares his experience as a stock broker and compares it to the ethical quandary many stockbrokers still face today.
Plus, he answers questions about:
- The best rebalancing strategy
- The value of risk parity investing.
Initial Public Offerings: They entice you to buy with a sexy story, but is there any substance behind their pretty faces? Tom explores the tale of two IPOs.
There's a new bug going around, the gold bug. Once again, this shiny metal is being touted as a great "investment." Don explains again just how lousy (and dangerous) "investment" gold has been in the past.
Plus, listeners ask about:
- Moving Apple stock from an inherited IRA to a taxable account.
- The most volatile days of the week for stocks to dollar-cost market time.
Many have been forced into retirement early or have been given the option to leave ahead of schedule. What should you do and how you plan for an early exit from the workplace?
Robin Hood is seriously addictive and now we see why. Plus, Don rolls out a new random stock trading ongoing feature.
Plus...
- A previously worried investor who went on a buying spree.
- A couple wants to purchase a second home and invest.
- A long-time listener is tempted to try and time the market and the tax code.
- A question on the wisdom of funding supplental retirement at work.
- Another wonders why he has more bonds that he thought he did.
It has been a strange an upsetting year in many ways. It has been particularly tough on folks trying to stock with an investment plan.
Plus, a caller wonders what would happen if China sold all its US Bonds.
Financial publications love to tease with "The Top... to Do Now" type headlines. However, the basic rules of investing rarely change. Don explores "8 Investing Lessons from 2020" that are, in fact, timeless.
Plus, he answers questions about:
- Moving money inside a Roth IRA
- Avoiding taxes when rebalancing.
Some things just go together. Risk goes hand in hand with return. Don't be fooled into thinking that you can get high returns without taking on risk's mate: Risk.
In this episode, Don looks at alternative funds, particularly the AQR Alternatve Risk Premia Fund. He compare this complex hedging offering with a more boring, traditional strategy using a bond fund.
Then, it's off to questions about:
- Reducing volatility in the TSP by adding more volatile funds.
- The best three funds to use at Fidelity.
It's that time of year again. The financial forecasters are making their predictions for 2021. Are they of any value?
High-income vehicles are being pushed like crazy. The higher the yield the greater the risk. That means a 9+% ETF can suffer big losses.
We take a bunch of calls:
- One,that makes us go, "wow!"
- How to catch after a slow investing start.
- The difference between owning bonds and bond funds.
- Can a trust avoid trust compnay fees?
- Is a real estate fund paying 5% a good investment?
Plus we look at current yields for fixed income investments.
It wasn't long ago that many declared small-cap, value, and emerging markets stocks dead. Last month they went from icy to sizzling.
A listeners parents were taken in by a bad insurance selling "advisor." Beware of insurance salepople making investing claims that just don't make sense.
A caller wonders if it makes sense to pay off a mortgage.
Another fears we will yell at him for having too much cash. We do.
Are there any good reasons to hoard cash?
Don explores the case of the incredibly expensive Victory Small Cap Emerging Growth fund and how it compares to someahet similar funds from Vanguard.
Then, he answers questions about:
- The difference between putting cash in high-yield bank accounts or short-term bond funds.
- What is Blooom and is it a good service?
We prefer to invest in what we know, but we need far greater diversity to protect ourselves. Don shares an example of extreme home country bias from Canada, but it happens here, too.
Plus...
- a comment on experts propensity to claim they know more than they do.
- A USAA investor wonders if their new mutual fund manager, Victory Funds, is any good.
- Don shares his personal experience with USAA insurance.
Tom considers how you can have just enough money for the rest of your life:
- How can you create a plan for income that last as long as you do?
- How much will you need to retire comfortably?
- How should you invest in retirement?
- How can you maximize your withdrawal strategy?
For Thanksgiving 2020, Tom shares many of the reasons why today's investors should be grateful to live in the best of times for investing.
Stocks aren't doing what Jim Cramer thinks they should do, so it must be young people's fault. Maybe it's a good time for the Cramer Contrarian Strategy™.
The future: You can't know it.
How to find the best advisor: Trust, but verify.
$100,000 to invest for the long-term, but...
A Motley Fool's foolish investing "rule."
It's almost impossible to make more money with less risk.
Many insurance salespeople will go to any length to convice you to buy their complex, convoluted, high-commission products (like Curtis Ray and his "MPI™ system"). Whole (or universal) life insurance is a bad investment no matter what they claim.
Why is this so hard to understand: Making more money REQUIRES taking more risk. PERIOD.
A house flipper is tired and wants to kove into REITs.
Does you financial "advisor" actually care about you?
The lies your broker tells you.
The difference between Vanguard advisors and full-service registered investment advisors.
How have Ken Fisher's investment picks really done?
There is a simple investing FACT that too many "investors" seem to ignore: There is no such thing as wealth without risk. If you want safety, you will not make money. If you want to make money, you must accept volatility.
In an Investopedia article on the best and worst investing advice, a freelance author provides some of the worst advice herself.
Plus, Don tries to help a listener in Hawaii with his TERRIBLE 403b plan that ONLY offers annuities.
Many investors have fled small cap stocks over the past few years as the big firms have led the market. However, small compnay stocks are perking up and, over many years, have outperformed large cap stocks.
In a recent column, Chuck Jaffe encouraged parents to help teach their kids investing by giving them shares of stocks. Tom thinks that is terrible advice, because it teaches kids that investing and stock picking are the same thing. Stock picking is gambling.
Billions of dollars are lost every year to Ponzi schemes. Whose fault is it? In part it's ours because we suspend disbelief.
Please listeners contact us about:
- Our opinion of ETFs versus mutal funds.
- How to move assets to Vanguard.
- A yound man's success story.
A caller wants to know whether it makes more sense to fund a health savings account before a 401(k).
Another caller believes the US dollar is destined to collapse. Don and Tom share their opinions.
Are there better funds than American Funds?
Tom discusses lessons to be learned from Congressional stock trading.
Plus, Paul Merriman stops by to share tips to supercharge your retirement.
Over five TRILLION dollars is sitting around earning almost nothing. Yet, instead of accepting a bit of extra return for slightly increased risk, many are jumping into dangerous investments without realizing.
Plus, callers want help:
- Choosing between rolling an old 401k into a new 401k or IRA.
- Investing a string of maturing US Savings Bonds.
- Finding information on a suggested financial firm (they have a checkered past).
- Staying with 401k in retirement or rolling into an IRA.
- Deciding what to do with some old Franklin funds.
- Understanding how the law of averages effects stock returns.
The Motley Fool wants you to believe you can be a better investor than professional mutual fund managers.
Plus, Don takes questions about:
- Using this year's deferred RMD to fund a Roth.
- Creating the right retirement portfolio allocation.
- Should pensions or Social Security count a part of your fixed income allocation?
You can never tell what will be hot and what will not. Emerging markets stocks have lagged for years, but recently they have been showing signs of life.
Did hackers take it or did the original owner finally claim his huge cache of Bitcoin. It's not likely anyone will ever know.
Plus, Don helps callers:
- Find our suggestions for the UW 403b plan.
- Determine if buying silver makes sense.
- Use the Robin Hood app.
- Pick the best funds at Vanguard.
- Choose between paying off mortgage, buying a building, or investing in stocks.
Predictions about the future, whether an election or financial markets is harder than it looks. You can't count on "expert" advice.
Plus, after some technical troubles, Don takes calls on:
- Solving the low yield dilemma with inflation protection.
- Protecting assets from Medicaid for heirs.
- An salesperson's advice to buy a variable annuity with 401k money.
- The pros and cons of paying off investment property mortgages.
Welcome to a strange show featuring technical challenges and:
- Wow! What a week for... the stock market?
- Don reads a note criticizing Tom's advice.
- Can the markets be beaten?
- Another Vanguard venting listener.
- We share our 3-fund suggestions from Vanguard, Fidelity, and Schwab.
- It's too easy to take out retirement money.
- Should she take advantage of additional Boening retirement options?
- The hottest market sector last week.
Vanguard HAS been the leader in broad-based index funds. Not anymore. We now have three fund group suggestions. See them all at https://www.talkingrealmoney.com/show-topics
How do you make more money: work hard, spend less, save more, invest wisely. Building wealth is not a privileged process.
Plus, Don takes calls about:
- The downside of fractional share investing.
- Ways to make more than a miney market fund.
- Is it time to flee Ameriprise?
One of the biggest mistakes we make when managing our portfolio is failing to recognize the risks of reaching for greater yield.
What are companies doing with their excess cash? One seems to think that Bitcoin is safer than cash.
We hear from listeners about:
- Our explanation of the election's effect on the markets.
- Vanguard's disappointing customer service.
- Avoiding the wash sale rule when moving money from one fund group to another.
- The impact of changing rates on long-term bond funds.
Tom and Don talk about tricks, treats, bucks (money), big birds, and bears. They also talk about the election and it's impact on the markets. Then take calls and comments from listeners on:
- Is it okay to move to a Vanguard brokerage account?
- Should he move an old 401(k) to his new plan or an IRA?
- A semi-correction on a previous answer.
- Whether a woman should listen to her economist husband and stop playing the stocks market.
With rates near 0%, many are tempted to move into high-yield investments that are often pitched as safe. The reality is that risk and reward are tightly boiund to each other. Be careful!
This Halloween we look at some deadly (or potentially deadly) encounters with financial advisors.
Plus Don takes questions on:
- The wisdom of giving personal information to brokerage firm.
- Whether money should be moved from an IRA to an IUL.
As October nears an end there are still some who believe that stocks usually take a beating in autumn. Is this true?
Plus Don answers your questions on:
- investing in a Health Savings Account (HSA).
- whether it makes sense to booorow against a home to invest for schooling.
- creating a 529 plan or a small child with a small cap/value tilt.
Don get's a phone call that has the potential to frighten someone into the arms of a scammer.
Then Don answers questions about
- a potential tax reduction strategy.
- finding more information on Fama and French research.
- the definition of substantailly different to avoid wash sale rule.
We begin where we left of yesterday with acaller who wanted to park safe money with Edward Jones. What she got was more risk because of high fees.
Seeking higher rates has led to a lot of bad investing.
Who sets the prices of stocks and other securities?
Are target date funds an appropriate retirement investment?
An inheritance ends up being placed in annuity. What now?
Advice for a new investor.
Day trading stocks isn't just for Millennials anymore. Some crazy older people are diving into this dangerous game. It's not liekely to end well.
Could big Bitcoin boosters be pumping up the price to dump it later?
Question: Keep TSP or move to Fisher?
Plus, Don explores Fisher Investments reviews at Yelp.
Tom takes on an involved Social Security withdrawal question.
A major value investor decides to throw in the towel.
A woman wants to know if she found safety with an Edward Jones recommendation.
They once lost investors a fortune. Yet, special purpose acquisition companies are hot again. Should you get involved in the secretive, expensive initial public offerings.
Can these real estate investment trusts pay big dividends with low volatility? Hard to know when they're not publicly traded.
Apparently, the election still has people running scared. Trying to make investement changes because of recent events is not investing, it's gambling.
Plus, Don takes lots of questions:
- Should someone have both an IRA and a Roth?
- Does the income from a Roth conversion raise you taxable income?
- Are Wisdom Tree ETFs better than Vanguard ETFs?
- Contribution modification deadlines for i401ks.
- The validity of a foreign marriage license.
The man credited with craeting the 4% rule for taking money out of your retirement portfolio states that there may be a better withdrawal strategy.
Plus, has Vanguard lost its customer service edge?
Will the stock market crash under a Biden presidency? Will investors flee another four-year Trump term? Do elections have an impact on the stock market? Don looks at the numbers from the past fifty years.
Plus, we have lots of callers:
- How long do tax records need to be kept?
- What should be done with a sudden windfall?
- Is Edward Jones a fiduciary firm?
- Some corrections on past answers.
The number one question we get: How do I invest my money in the current climate? The answer is always the same.
Should the upcoming election change how you invest?
Is the i401k Apple's latest product? What are they and how much can you contribute?
If you don't pay down your mortgage, your must do this.
A radio advisor apparently vanished with some listeners money.
How do you find an honest financial advisor?
Multiple articles state that a 60% stock/40% fixed income portfolio is an anachronism. They believe it should be replaced by more modern assets. Tom and Don examine their claims.
A caller getting pitched an indexed annuity looks for the best questions to ask the salespeople.
Another looks for a moderate risk investment for a special-needs trust.
Plus Tom and Don dig deeper into alternative investments and discuss the fees charged by financial "advisors."
According to Dartmouth Professor Ken French the right portfolio starts with average and then adjusts for you.
Dr. French sits on Dimensional's Advisory Board.
Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.
Nothing in this presentation shall constitute or serve as an offer to sell products or services in any country or jurisdiction by any Dimensional global firm. For informational purposes only. All information is given in good faith and without warranty and should not be considered investment advice or an offer of any security for sale.
Commissions and fees have been coming down for years, but how far can they fall before services suffer?
Plus, listeners want to know:
- How to calculate the maximum amount to convert to Roth?
- How much return to expect from retirement investments?
- Where to invest: Mutual funds, bank accounts, or tech funds?
- After a brother-in-laws investing advice, what now?
- Should he move from Ric Edelman to Ken Fisher?
There seems to be a lot of confusing about what investing is and isn't. Don shares his definition of an investment.
Plus we hear from listeners wanting to know:
- What to do with an inherited IRA?
- How to build the best possible portfolio at Vanguard?
- What is the right investment strategy for a wife's Roth?
It's an all-caller hour:
- How should some aproaching retirement invest and manage a disparate portfolio?
- Where is the best place to save?
- What should be done with an old variable annuity?
- How do two different bond funds compare?
- What should a retiree do with an old Seattle Mariners 401k?
- How much is my fund making and how can I do better?
So are rushing to safety, but are there ligitimate reasons to be fearful. What will you do with your money? We share the reality of high-yields.
Questions and comments:
- When can I fund a Roth IRA?
- Don's answer was better than Tom's.
- What should be done with an Ed Jones IRA?
- Where should safe money be parked?
- When does owning a tax-free bond fund make sense?
What was hot in the 3rd quarter? What was not? Who managed the best performing fund and will it likely repeat?
Initial public offerings (IPOs) are back in vogue. Should you be trying to pick the next big winner?
Dartmouth Professor Ken French shares his personal formula for creating the stock bond allocation is his portfolio on this week's French Friday.
Dr. French sits on Dimensional's Advisory Board.
Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.
Nothing in this presentation shall constitute or serve as an offer to sell products or services in any country or jurisdiction by any Dimensional global firm. For informational purposes only. All information is given in good faith and without warranty and should not be considered investment advice or an offer of any security for sale.
Don gets a call from a fund salesman and discovers yet another overpriced mutual fund. This ESG fund costs six times more than a well-diversified fund from DFA. Environmental investing doesn't have to be expensive.
Plus, do you own your stocks or does Cede & Company? This is not some wacky conspiracy theory.
Following Paul Merriman's advice has led to mediocre returns. Should any changes be made?
Finally, a listener is looking for the right balance between tax-deferred and tax-free retirement portfolios.
"It's different this time?" People have been saying this for generations and yet, the basic investing rules still apply.
Don takes questions on:
- Gifting shares to kids from a parents taxable account.
- Better to refinance or keep investing?
- Does it makes sense to add a small cap value fund to portfolio?
- Is this TIAA-CREF fund a good retirement investment?
Some of the hottest stocks are being bid up on little more than hope and that makes them extra risky.
Proof that our longer podcasts are recorded live: We take a strange call from a troubled woman. We thought about taking this out, but it's part of the show.
Bonds sometimes beat stocks.
How to allocated among retirement plan funds.
Considering paying down a mortgage?
Where to park safe money.
Advice for those taking early retirement.
Most American's are frighteningly financially illiterate. Can you correctly answer three questions that most when most can't?
How are ETFs taxed?
The ONE must have investment if you're worried about a stock market crash. Seriously?
Global diversification would have saved you in the past.
Investors who are invested primarily in the United States may be making a long-term mistake. We all love our countries, but investing globally has saved investors in the past.
Risk is easier to understand thatn we might imagine when Dartmouth Professor Ken French explains it on this week's French Friday.
Dr. French sits on Dimensional's Advisory Board.
Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.
Nothing in this presentation shall constitute or serve as an offer to sell products or services in any country or jurisdiction by any Dimensional global firm. For informational purposes only. All information is given in good faith and without warranty and should not be considered investment advice or an offer of any security for sale.
'Tis the season for free dinners and lunches (brunches?) as the equity indexed annuity salespeople are withering away during the COVID crisis. Enjoy a complimentary meal at your peril as they will stop at nothing to sell you a high-commission product. It's bad enough when insurance agents are selling this stuff, but appalling when it's a Certified Financial Planner (CFP).
Don also takes your questions on:
- ETFs versus mutual funds
- Managing taxable accounts
- Investing on margin
- Picking the best investments from a bad bunch of 401(k) choices.
Creative life insurance salespeople came up with some creative monikers and convoluted "benefits" for boring old cash-value life insurance.
Plus listeners want to know:
- How to track fund expenses?
- How are brokers and mutual funds insured?
- How to allocate a new grads retirement plan investments at TIAA?
Commission grubbing, prevaricating, "financial advisors" continue to spread the BIG lie that indexed annuities can deliver "market returns" with no risk. Avoid EIAs (or FIAs) at all costs or they will cost you big.
We also discuss the foolishness of investors' "home country bias."
Tom wants to spend more time with his "bookie?"
We discuss the current reality of investing and mortgages
Plus questions on:
- Investing an old 401k in Vanguard
- How to find a great fiduciary, low-fee advisor.
- RMD rules for 2020. Can future distributions be avoided?
- Is it better to invest or pay off a mortgage?
There is no evidence that presidential electioins have had any impact of stocks prices.
Public pensions perform poorly. Why should you do better?
S&P shows that active fund managers fail to beat the market.
A question on asset allocation and a long explanation.
Why do so many investors overweight U.S. stocks?
Whjat are the tax ramifications of an inheritance and how should it be invested.
What is the difference between mutual funds and exchange-traded funds (ETFs)?
There is very little advantage to holding cash (except for emergencies). Tom share some simple rules for managing the cash in your portfolio.
Over the next few Fridays we will share the insights and wisdom of Dartmouth College and Dimensional Funds Director, Kenneth French. This week Professor French shows why trying to maime the stocks market makes no more sense than trying to make a living betting on football games.
Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.
Nothing in this presentation shall constitute or serve as an offer to sell products or services in any country or jurisdiction by any Dimensional global firm. For informational purposes only. All information is given in good faith and without warranty and should not be considered investment advice or an offer of any security for sale.
Don shares some investing insights from two of the greatest minds in the pecuniary profession, Professor Kenneth French and Nobel laureate, Professor Eugen Fama.
Then we hear from listeners like:
- A woman whose husband isn't drinking too much wine, he's investing in it.
- Adding equity diversification to a family real estate business.
- Mario accepts our advice, but his friends are still against international investing.
We make investing harder than it needs to be. After attending a DFA conference, Don shares five simple investing concepts.
And we hear from listeners:
- How much should be in emerging markets?
- Should bonds be overweighted to Treasury securities?
- Some advice for those who lost money in life insurance.
Another well-known money manager, Jeffery Gundlach, claims that passive bond investing cannot compete with an active manager.
Plus, are stocks are real estate the best investment?
The we take your questions:
- A divorced listener needs advice on tranferring spouse's 401k.
- Is owning individual stocks a good way to improve a portfolio?
- How much house can they afford?
- Factoring individual properties into portfolio allocation.
- VLO: Take the pension or lump sum.
In the spirit of fairness we read a rant from an unhappy stock-trading listener. We have to admit it's kind of fun.
- What is Blockchain and what's it good for?
- The best way to get a 16-year old started with retirement investing.
- We also hear from a listener who actually likes us.
- we argue with a caller who hates investing overseas.
- What are the gold bugs talking about?
Many investors believe that owning real estate is the best way to invest. Yet, the facts contradict that assumption.
Tom looks at the Wall Street Journal's list of the biggest recession mistakes and find one investors tend to make no matter what the economic climate.
The current value of the stock market is not meant to look like today. Investors are always trying to look ahead. Plus, those things we call the market (like the S&P Five) aren't.
Plus, the questions keep pouring in:
- How should his and his wife's retirement portfolio be allocated?
- While they may be a bad investment is the a way to make a condo work for parents?
- Why are payroll taxes being deferred?
- What should be done with a whole life policy's cash value?
Anecdotes vs. reality. Beliefs vs. evidence. Desire vs. reality. Ego vs. discipline. All the ways our all-too-human mind interferes with investing.
Plus:
- A great call from a doctor who HATES Northwestern Mutual and may be overthinking his long-term retirement planning
- An alternative to parking emergency money in a money markey fund.
- What to do with old restricted stock units.
We really don't understand investing. Stocks both rise... and FALL. There are always good reasons to avoid investing. You keep insisting on owning individual stocks. You don't know what you don't know and can't know what lies ahead. Plus, we asnwer questions on:
- Selling Apple and diversifying.
- Deciding between an annuity and a bond fund.
- How a Roth IRA can turn a 20-year old into a millionaire.
- Trying to time the market.
How does a DFA global 60/40 portfolio compare with the S&P 500. Are they fair to compare? Plus we take lots of questions on:
- Moving from drugs to money management.
- The differece between wills and trusts.
- The best Fidelity idex funds.
- Using HSA money to pay long-term care premiums.
- Keeping your kids in the estate after you die.
A podcast filled with great audio questions:
- Why do we need international stocks when US stocks make money overseas?
- Does it make sense to trade a target date funds for multiple funds?
- Is VFSUX better than putting money in the bank for a short-term?
- Is the Utah 529 plan better than the Nevada 529?
- Does private equity have a place in retirement accounts?
- Why have bond funds made more money than the interest rates paid?
- Should an older couple move money out of CDs?
Most American's aren't saving money for the children.Should putting money away for your kid's future be a priority? And what about paying them an allowance?
Stock players double recently, yet the fact remains, most people fail at stock picking.
Plus, investing plans are rare, but shouldn't be
We talk with callers about:
- Giving money to grandkids through daughter
- Creating a basic investing plan.
- A sister helping her sibling make better choices.
- Should REIT funds be in portfolio and how?
- Would it make sense to roll three old 401ks into a new plan?
Yes, stocks also fall. Is this a time to be chasing the hot stocks or is there a better way. It's hard to sort the future winners from the losers.
We explore the history of the dumb Dow and talk about Dow stocks old and new.
What do we see for Facebook? Who will be the future winners? Remember the AOL.
Which index funds are good?
And a caller wants to know who we back in the big Merriman/Ferri face-off.
Many stock market "experts" are concerned about "the market" being historically overpriced right now. To which market are they referring? Is everything prohibitively expensive? Does anyone really know?
Plus, Don answers your questions on:
- Roth conversion ladders.
- Fixing a bunch of investing mistakes.
- Bonds. What are they go for? How do they work?
Many are saying that building a balanced portfolio is old-fashioned and that today's modern managers have better ways to hedge against declines. Better for whom?
When a stock splits it doesn't become more valuable.
We hear from a bunch of callers about:
- A new investor getting started.
- Robo advisors and cash requirements.
- What to do with saved monet and other investments.
- Listening to all 462 podcasts
- A lucky listener needs to unload stock.
Plus, which investment do people think makes more?
As Warren Buffett turns 90 many question his investing acumen. The truth about the "Oracle of Omaha."
Is value investing dead? What is it and where might value stocks do from here?
Why the Dow is dumb and getting dumber.
A caller asks for advice on betting on a high-tech private placement.
Once again,Cryptocurrencies prove to be the good for something: Crime. How can so many be so stupid?
Plus, Don takes questions on:
- The value of fractional ETFs
- A bunch of new diversified ETFs from Dimensional and Avantis.
- The ins and outs of brokerage account insurance from SIPC and others.
Every investor needs to have a plan and stick with it, even when it doesn't seem to be working. DFA's David Booth say that the value stock premium has always returned in the past.
The Don answers questions on:
- The value of umbrella insurance policies.
- Rebalancing at a 60/40 401k.
- Where to park money that will be needed in a year.
We explain options and how they are used to gamble.
Plus, Robin Hood is raking in the dough and growing.
What is a Series 7 license?
A new and "improved" SEC disclosure document is being ignored.
Where do you usually get financial advice and where should you get it?
Advice on refinancing a small mortgage.
Where to keep your safe, liquid money.
A younger investor panicked out. What to do now?
Is it time to cash out a varaible life policy?
Which is better? Work plan or IRA?
Buying the hot stocks can leave you badly burned. Better to buy low.
How can bonds possibly go higher? Yet they have.
Mortgage rates have never been this low. Time to buy or refi?
Looking for higher yields? Beware the risky bets.
How can art possibly pay a dividend?
Why to we buy annuities? How to generate income without them.
Plus, getting young investors started.
Don compares two high-yield (junk) bond funds and explains how fees impact both the returns and the risk profile of the fund. Plus, he warns against using junk bond funds.
Then he answers questions and fields comments on:
- The wisdom of adding a dividend fund
- Should a woman mortgage a paid up home?
- An old listener gives up on Don's advice.
- Should Social Security benefits be counted as a fixed income asset?
The tech-heavy NASDAQ has been on a tear lately, but who remembers the 14 years of losses after 2000?
Plus, Don takes some questions on:
The best time to take required minimum distributions?
How to get income in a low-yielding bond environment?
Does it make sense to start an early-retirement Roth conversion strategy?
Commission free trading at firms like Robin Hood isn't free of costs to you. If they're making a profit there is only one possible source and that's you!
What are the odds that the entire stock market and its millions of participants are wrong and you are right? That – in addition to the fact that NO ONE can tell the future – should be enough to convince you that you can't time the stocks market.
Lots of questions on:
What's so bad about universal life?
What should be done with excess cash from a home sale?
Taking a friend's market timing advice.
A listener's anaology supporting market timing.
What is a backdoor Roth IRA?
Plus, some constructive criticism with an apology from Tom and Don.
In this episode we address the five big money myths:
- You don't need much diversification.
- Only buy what you know.
- It's best to own the S&P 500.
- International and U.S. stocks mover similarly.
- Market timing is necessary.
Plus, we take calls on:
- Investing in international bonds.
- Capitalism vs. socialism.
- Using Fidelity's Total Market funds.
- Using municipal bond funds.
- Finding a less expensive 529 plan.
- How to get started investing for retirement.
Today, we start with a teachable mortgage moment courtesy of Apple.
Then, Don takes several questions, like:
What's the best way to become a financial advisor?
What will happen to the stock and housing markets?
What can be done with an really bad inherited IRA?
Another question and answer day in which the theme seems to be: Keep It Simple.
Don takes questions on:
Reallocating investments from cash and tech stocks.
Why stocks split.
The best strategies for regular and Roth retirement accounts.
What to do with some Dave Ramsey recommended American Funds.
Why do we keep suggesting simple investing strategies.
Cryptocurrency is not just a bad investment it's a terrible currency for anyone except criminals.
Since stocks have always recovered, why do we need bonds?
Your real risk tolerance might be lower than you think.
Does it make sense to refinance a mortgage again.
More on the phsychology of money, investing and life.
Why are tech stocks and gold both going up?
Can you really get a safe 11% return?
Kodak: Another great example of investors failure to make money trading stocks.
If you can't afford a share should you buy a slice?
You can own the whole world for less than $100.
How do brokers make money offering free trading?
Diversified investing alternatives from Fidelity.
An "innovative" investing strategy from the Motley Fool.
Plus, caller with questions on funding a Roth IRA in old age and how to invest $100K.
Gold has been soaring to an infaltion adjusted level only seen twice before since it's price was allowed to float in 1975. Could it be too expensive.
Questions include:
A listener who shares a lot about his portfolio and wants to know if he needs another fund.
Another has saved well and wants to invest for his adult childs needs.
Finally, is it better to add to an existing 401k or start adding new funds to an IRA?
Why should you have bonds in your portfolio. Not just for income.
A listener is worried that his parents may be getting bad advice from their "financial advisor."
Plus a caller is leaving the service and wonders if he should move his Roth TSP.
Finally, which investments should be in buckets 2 and 3?
Why do "investors" continue to follow those who make so many bad predictions? Why don't we realize that accurate predictions are monre likely locky then prescient?
Listeners as Don:
How to allocate amoung asset classes?
What would be an appropriate portfolio to set and forget?
Where should a mother put an investment she probably won't ever need?
Our main story: VALIC (part of AIG) was fined for paying a teachers union to coerce teachers into buying expensive (and unnecessary) annuities and mutual funds in their 403b plans.
Plus callers want to know:
Is is okay to pull income from a retirement plan without reducing principal?
Should an annuity be moved into another product?
How should one with limited assets get prepared for retirement?
Is it possible to fix a mistaken name on an account?
What are some strategies for getting money out of properties?
Did the U.S. economy really lose a third of it's value? Don share the reality of the latest GDP report.
Why do younger bloggers continue to insist that the stock market and the economy are one in the same?
Another investment firm claims to be a fiduciary on one hand, but their disclosure documents tell a completely different story. How do the get away with lying?
A caller wonders if the election will impact the stock market and why have DFA funds done so poorly recently?
Another listener has a seven-year-old indexed annuity and discovers not only how much he's paid, but that he is basically stuck paying a surrender charge to gain a better potential return.
A blogger on Medium says sell stocks now. What does he know that the rest of the market doesn't?
Don takes questions from three different sources again:
How can an investor decided between taxable investing and tax-advantaged investing?
How should assets be allocated between diffient equity asset classes?
When taking cash out of real estate, where should it be invested.
Why "Is it better to invest in a passive or active technology fund?" is the wrong question.
You would think that after one of the worst economic reports in the history of the United States that the stocks market would crash. Yet, it barely moved after U.S. Gross Domestic Product (GDP) plunged for the second quarter of 2020.
Why didn't markets fall? Everyone expected bad news, so it was built into prices. You need to understand that markets cannot be beaten. They can only be planned for.
The argument for annuities is pretty weak. Even a no-load, no surrender fee annuity is no bargain.
Plus, a listener takes Don to task about his dislike for gold.
Finally, a caller wants to know if he should use an inheritance to pay of his mortgage.
Gold makes nice jewelry. Gold conducts electricity well. Gold never has been a decent investment. It's purely speculative. Feeling lucky?
Is it reasonable to expect financial advisors to be able to predict the futures?
Plus, questions on:
How to invest in a health savings account (HSA)?
How much money is needed to retire comfortably?
What is our opinion of Investacorp?
Bored during COVID? That's not an excuse to go gambling on Wall Street using dangerous trading strategies.
Then, we take lots of calls:
Should a TSP be transferred to an IRA with a commissioned broker?
What should be done with cash taj=ken out of the market at the bottom in March?
Advice for someone on a meager income with no assets who wants to invest in stocks.
Are government stimulus checks taxable?
And more.
Financially, it rarely makes sense to use invested asets to pay off a mortgage. A recent caller was convinced to do just that by a Dave Ramsey video. A Dave listener claims that Dave never said to do that. Did he?
Plus, lots of questions on:
The difference between actively-managed ETFs and closed-end mutual funds.
Tranferring a 401(k) directly into an IRA.
Some questionable income generating advice from a fiduciary advisor.
Since Don got a bit behind answering questions he does an all question show.
How should a working child get started with retirement investing?
A listener wishes he hadn't listened to Dave Ramsey and paid off his mortgage. What should he do now?
Finally, a young man finishing grad school seeks future financial focus.
We intended to talk about the hazards of fractional shares, but we were packed with callers. So, we’ll discuss fractional stock next week.
This week we take calls on:
How to gift money to kids.
Various Vanguard bond ETFs.
The tax ramifications of market timing and the mistakes a caller made.
Avoiding capital gains on the sale of a residence before two years have passed.
Investing in a “back-door” Roth.
Finding a very old 401(k).
In this episode we look back at past financial bubbles from the South Sea Crisis of 300 years ago to the real estate bubble of 2008.
What are some of the better options for estate planning?
Does it make sense to invest in a list of market sectors?
The big question: What should you be doing with your money, now?
You know what a meal costs. You wouldn't buy a car without knowing the price. Yet, as Tom explains, financial services prices are from clear.
One more time: Gold is not an investment. At best it's speculative. In the worst case scenario, you can't eat it.
In this episode our very own long-time listeners prove why so many investors are their own worst enemies. DON'T TRY TO TIME THE MARKET! Sorry for yelling, but...
Tom talks about ways to raise cash for a "Cherise?"
A caller asks if it makes sense to invest in tax liens.
Beware of shady peddlers of 401(k) rollovers.
We revisit one of the most notorius financial newsletter organizations, Stansberry Research and its "founder," Porter Stansberry. For years we have marveled at Stansberry's ability to weave strands of nonsense and even outright lies into a lucrative newsletter publishing empire. Stansberry had dropped from our radar until we saw the story of the death of his friend and employee, Ray Rivera –under suspicious circumstances – on the Netflix series, "Unsolved Mysteries." So, we decided to check up on Porter and his many publications.
Plus, we hear from callers wondering if it's time to sell stocks and what the heck is wrong with small cap value stocks.
The Robin Hood of old would not approve of the 21st century's RobinHood.com. We have receieved many complaints about them. They have caused suicides. The SEC has fined them. Yet, they contunie to lure unwitting, greedy gamblers with their fun and addictive (and "free") trading system. This is not investing!
Plus, Don helps a caller sort through Vanguard's ETF offerings.
In an attempt to balance risk and reward, some investors pay way too much for complex market neutral funds. The are easier ways to reduce volatility.
Despite the holiday, we have a ton of calls:
Investing in the Thrift savings Plan or in a Schwab IRA?
The pros and cons of single premium immediate annuities.
Leaving a Roth IRA to a granddaughter.
How the market has done and what the future might bring.
Despite all the robo advisor hoopla, most investors still need the kind of help that only a human can provide.
We devote most of this episode to annuities; fixed, immediate, variable, and indexed.
Are fixed annuities as good as the guy from TIAA claims they are?
The immorality of selling annuities to teachers and healthcare workers within 403(b) plans.
What are the alternatives? We go through the entire approved investment list of the Seattle School District.
Callers share their annuity experiences.
In this episode, Tom looks back at the second quarter of 2020. You will be shocked to learn what happend to all manner of financial assets.
Even though we discussed them yesterday, the caller took exception to us criticisizing SPACs (special purpose acquisition companies) which he believes are the best investments around. Don begs to differ.
Plus, a listener wants to know whether of not paying off a mortgage makes sense.
Another is concerned that Robin Hood is robbing a friend.
Finally, a security guard is unhappy with a very pricey 401(k) plan.
A caller heavy episode featuring questions about:
Retiring early and whether or not to take a lump sum distribution?
After maxing out 401k what are IRA contribution options?
Does day trading make sense?
Are SPACs decent investments?
and more!
Many typical investors panicked, but Vanguard says theirs stuck around.
A caller filled hour:
All about reverse mortgages and their alternatives.
We hear from Sweden with a question about DFA ETFs.
Getting ready to retire: How to fill a two-year income gap.
Can you return your Social Security payments and wait to file?
Plus, a caller wants to talk with Vestory.
Don compares a high-fee, actively-managed income fund with a no-load index fund and the results will shock you (but shouldn't).
A listeners want to know about taking the kids names off an old UTMA (custodial) account.
Another is looking for advice on allocating assets between pre-tax and post-tax accounts.
The CFP® Board changed it's code to require that it designates must ALWAYS act in a fiduciary capacity. In just a few months (October, 2020) we'll find out if the new rule has any teeth.
Plus, was buying a whole life policy a good idea?
Finally, what should a cruise line "investor" do with plunging stocks.
Suze Orman recently said that everyone should choose a Roth IRA in every circumstance. Yet, there are times when deductible IRAs make more sense.
Do you really need a hedge fund for "the rest of us?" Hedge funds sport huge fees and pathetic returns.
A caller needs to transfer her 401(k).
Another got lucky getting out and wonders about getting back into the market.
Investing for both risk tolerance and risk need.
The Dow is not the market.
What's the best way to take out home equity for retirement expenses?
In this episode we share some of the foolish investment decisions people make as they approah retirement and look for better strategies based on risk tolerance and need. Investing truths lie between the extremes. So, who is responsible for most of terrible investing that occurs?
Tom's target-date fund mea culpa and an examination of various target-date portfolios.
What's the best way for young workers to save for retirement?
To pay you high yields, the insurance compnaies need to invest at even higher yields. After getting burned in CMOs and CDOs, it looks like collateralized loan obligations (CLOs) may be a lot more risky than they thought (or wated to believe).
Then Don takes questions on:
Annuities in 403(b) plans.
Mortgage forebearance.
Picking the best 529 plan.
While target-date funds are far from a perfect solution, they do offer simplicity. Tom compares some of the better target-date offerings.
We devote much of this episode to one of the most popular investments, real estate. Is buying and mamanging property really investing? Is flipping house flippin' crazy? What about purchasing property via crowd funding?
We also discuss the definition of "real" investing.
In this market, is it still wise to fund a 401(k)?
Should you save for your kid's college or for retirement?
Like driving by a car crash, it's hard to avoid looking at the volatility of the stock market.
Plus, more on the Hertz saga.
The lesson af the 90s is lost on today's traders, so we share some sage (and likely to be ignored) advice for stock traders.
A couple of callers seek advice about GrubHub and Tesla stocks.
Don laments his first negative review on Apple Podcasts.
Finally, how have active managers fared in a market they said was just what they needed to excel.
Don shares another example of a clueless stock trader who believes he has found a sure-fire way to beat the market. His advice may be some of the worst ever.
Plus your questions about:
Creating a living trust instead of a will.
Are oil prices really up $80?
Which of Vanguard's small cap funds should you own?
Tom thinks some of your have forgotten the lessons of the 1990s as many "investors" try their hand at stock trading again.
A whole lot of people think investing is playing around with bankrupt stocks. Will you be the greater fool?
A caller disagrees with out criticism of a time share exit firm.
Why was Warren Buffett selling stocks?
Should you move from a broker to a 100% fiduciary advisor?
What are the poros and cons of covered options trading?
Later in the episode, we discuss the last person to receive a Civil War survivors pension and whether or not you should take the ponsion option in your plan.
We start by talking about emergency cash investing.
How do you avoid taxes when selling your home?
Does private equity belong in 401(k) plans?
Is your advisor always a fiduciary and do you know how much they charge?
Wouild pay just any friend thousands of dollars a year for nothing?
How do you plan for retirement income?
Finally, should you now rebalance back into bonds?
Tom and Don talk about the crazy stock market and its miraculous recovery.
A caller gets a earful about the problems with silver investing.
We found that rebalancing really worked.
Jim Cramer gives some surprising advice.
Should anyone investing in specific stocks.
Bad luck for Luckin investors.
There is no chance of getting a steady 7% income.
The stock market has definitely climbed the proverbial "wall of worry" and is almost back where it was on January 1, 2020.
Plus, Don takes questions on the Roth vs/ regular IRA debate, using a 401k withdrawl to pay down a mortgage, and the best options in the Delta 401k.
You think flying is scary. Well, Tom is concerned about those of you who are taking a flyer on the JETS ETF investment.
A new ETF, Strategy Shares Nasdaq 7HANDL Index ETF is promising investors an annual income of seven percent. In one of the lowest interest rate environments in history, that sounds enticing, but how can they possibly pull it off? Don dives deep into this mouthwatering money mystery.
How do you find the best financial advice? Do you know how much you pay your "financial advisor?" No matter what they say you always pay, so Tom and Don share ideas on how to find the right advice.
A caller is shock to discover that having an Edward Jones fee-based account doesn't always mean no commissions and is looking for a better way to invest.
Attorney Rick Gregorek stops by to talk about the new IRA rules.
Who makes sure fiduciaries always act as fiduciaries?
A dad looks for advice getting and 18-year old started in investing.
Plus,how much of the market's swings are driven by program trading?
The stock market often seems to "climb a wall of worry." in other words, stock prices sometimes seem to rise when the news is bad. Are you worried about current events? How should you invest in this environment?
Plus, Space X launched during the show.
Is your financial plan of track? Do you even have one?
We talk about Dave's Ramsey's paid recommendations and bad investing advice.
Plus, a caller shares an investing success story and we share some of Jack Bogle's best quotes.
Ready to be shocked? While researching a Seattle area "fiduciary" advisor, Don discovers that they seem to care less about making money for their clients than they do for themselves. They charge huge fees, sell commissioned securities and insurance, and make 20 times more on their clients' savings account then do their clients.
Plus, the market is almost back to where in ended 2019.
A listener looks for allocation advice for his UPS 401(k).
Finally, some advice for two callers from another listener.
A fiduciary advisor should always act in your best interests. However, most advisors don't. Particularly those who offer annuity products. Tom argues that it is almost impossible for the sale of an annuity to be in a client's best interests for a variety of reasons.
This episode focuses on the problem of non-traded, illiquid investments. They have few benefits and a huge number of detriments. They should be avoided at all costs.
We talk with a caller about the difference between the simple portfolios we suggest on the show and the more complex portfolios we create for our clients.
We help another caller with some confusing real estate sales challenges.
Then, we talk about Robert Kyosaki and all of the other relatively worthless financial gurus who suck you dry.
Hertz asset backed bonds went from safe to risky almost overnight as the car-rental industry collapses.
The Hertz bankruptcy if the perfect illustraion for the need to diversify.
Plus, we have a long discussion about Treasury I Bonds and help a caller decide where to invest his stimulus check.
One of humankind's biggest flaws is our overpowering need to see into the future. Out innate need for prospective prognostication gets us into a lot of trouble and yet we seem unability to recognize the futility of this pursuit.
Plus, why isn't the Talking Real Money podcast more popular? Don thinks he has the answer.
Finally, what's wrong with FIRE aficionados dogged chase for easy wealth though real estate?
Robert Kyosaki is always making some outrageous prediction or giving bad investing advice. Yet he gets richer while making his acolytes poorer.
Stock prices keep going up in the face of an economic disaster. Whaty do they know that we don't?
Plus, Investing emergency money (again, and the answer remains the same).
Is this the bad Bellingham broker?
Don't I need to be doing something?
PLus, the most popular investing podcasts aren't very good for you.
A caller yesterday wanted to know why we recommend index funds that are filled with losing stocks. Why don't we suggest only funds filled with winners?
Do hedge funds belong in pensions?
There is no trick to beating the market.
Why did we go from suggesting three funds to just two?
Does Fidelity offer a global stock index fund?
A caller asks: Do I have the right investments?
Tom and Don discuss the tendancy for stockbrokers and insurance salespeople to lie to your face while they "disclose" the truth in thick paper packets that few ever read.
Specifically, we discuss the possible prevarications associated with UBS and its YES or "yield enhancement system" and the sale of indexed annuities.
Plus, we look at what Sorrento Pharmaceuticals claims did fr its stock price.
Don compares active vs passive bonds using Bond Fund of America vs. Vanguard's Total Bond Market Index fund.
Plus, a caller chares a horror story about a "charitable annuity" that turned out to be a Ponzi scheme.
Wish that everything would get back to "normal." Wishing won't make it so. It takes time and effort.
Why does Schwab sweep money into savings accounts?
Where can you put emergency money and make more?
Is there a way to check hedge funds' performance?
Is there anything magical about "Magic Formula Investing?"
Tom looks at the recent plunge in the value of pensions and proposes some changes that could make them do better.
President Trump tweeted that hedge fund managers are manipulating the markets with the media appearances and Don agrees. It shouldn't be legal to use the media to make millions.
Plus, Don takes a bunch of call at 855-935-8255.
First, is Edelman/Financial Engines worth a 1.75% annual money management fee?
Another caller is looking for an opinion and information on Dave Ramsey's investing advice.
Finally, a Thrivent client wants to know whether to follow his "advisor" as he goes to another firm.
We start the episode talking about some of the new rules for retirement planning.
A caller wants to know how to find old shares of stock that have gone missing. Another wants to know how Tom and Don get paid.
Then, we discuss an investment that should have never been sold to an 84-year old sporting high commissions, huge fees, illiquidity, and massive risk.
Tom and Don share some of the lessons this nasty little virus should be teaching you about managing your financial life. You can't play markets. You can't pick stocks. We share some shocking numbers about market timing.
A stock trader dabbled in oil futures and suffered a horrible loss.
They help a caller navigate the capital gains tax rules on homes.
Another caller asks about single premium deferred annuities as a replacement for a CD.
Did you know the market would start soaruing on March 23rd? Of course, you didn't. Stocks surprise, rarely behaving as expected. They are even close to being predictable.
Plus questions on moving money our of Gabelli funds and into T. Rowe Price or Vanguard and where to keep emergency money with better returns.
A listener shares another example of Harry Dent's constant pursuit of your money even though he continues to make terrible predictions. Why are we so gullible?
Plus Don takes your questions on:
A good Schwab bond fund.
My opinion of Phil Town and his stock picking advice.
Why we don't suggest ETF's more often.
Tom explores the explosion of "free" online stock trading and its hidden pitfalls and costs.
The hazards of too few stocks in your portfolio.
Proper portfolio diversification.
Who needs free online trading?
Modern Portfolio Theory still worthwhile?
How to invest a $150K windfall.
Tom and Don respond to s listeners concern that we may be entering another Great Depression.
Paul Merriman joins us to talk about dealing with bear markets.
A caller talks wonders if this is a good time to speculate in battered industries.
Another wants advice on Boeing's voluntary layoff offer.
We hear from a son whose elderly mother has to cash out her annuity.
Finally, a caller recognizes Tom and Don's erudition and seeks their opinion about the current economy compared with the 1930s.
Don looks at another complex insurance/investment product and the lies those who sell them tell to their potential clients. There's a reason for the warning, "read the prospectus carefully..." Yet, few ever read them, to their own financial peril.
Then Don covers questions on taking Social Secirity early and the problems with junk bond funds.
Tom looks at stable value funds and the price investors pay for safety. Making money requires taking risk.
Women are flocking to investment clubs, but is learning to pick stocks a worthwhile pursuit?
Why wait to take required minimum distributions (RMDs)?
Is a family trust a good or bad thing?
Investors risk tolerance has declined dramatically.
Why are financial advisor teams a better way to manage money?
Should you continue to dollar-cost-average during a bear market?
Are Edelman Financial Engines fees fair?
Millions are struggling with a paycheck. Tom and Don share a few short-term solutions to tide you over until the crisis wanes.
Plus, we talk about specific business retirement plans at 401411.com.
The wisdom and particulars of of tax-loss harvesting.
A woman wants to know if her portfolio is positioned for the market.
Is it smart to pay off your mortgage early?
Professor Wade Pfau seems to be at odds with the advice of many other academics who dislike annuities. Could financial compensation from the insurance industry have colored Dr. Pfau's research?
Plus, Don answers questions on taking Social Security benefits, investing some extra cash and the proper global fund allocation.
When you get unexpected wealth how should you invest it. Tom and Don share the step-by-step process.
A caller wants to know what to do with an extra $10,000
Plus, why playing the market is not investing even if it's in the Wall Street Journal.
Long-short mutual funds fail miserably to provide an investing hedge.
Why complex financial products are bad for you.
And much more.
From our Saturday Radio Show:
Our world has changed. How should you plan for a different future.
Weren't we just in a bear market? What happened? What should you do now?
Active money managers panicked and sold during March, just before the market started climbing.
A caller comes into some big money and wonders how to invest it.
Oil futures prices did something unprecedented. For the first time, futures traders could actually get paid to take practically free oil. Why would something like this happen? Don explains the Monday's strange market behavior.
Plus, listeners want to know:
Where to invest unneeded stimulus money?
If it makes sense to take Social Security at 62 and invest it for eight years or wait until age 70.
Stock markets have been on a tear the past month and sudeenly we've forgotten how scared we were. Isn't that convenient and all too human.
If you think International stocks haven't helped your portfolio, think again.
Does it make sense to wait to take Social Security?
Are annuities a good investment?
Rick Ferri is back, slamming fee-ony advisors for not charging an hourly fee like he does. But, is his way the best way?
Plus, are international funds unnecessary?
Tom is waiting to see just how much money flowed out of actively mamaged funds during this crisis. Active funds don't do well in markets that have risen and they do just is bad in those that have fallen.
Do you need complex products in your portfolio? Not if you want to make money! Tom and Don talk about some of the worst things you can place in your portfolio. In fact, Wells Fargo was fined for selling complex, expensive inverse funds (funds that bet on markets falling).
We also talk about financial advice providers to avoid.
Then we look at an incredibly bad 3X inverse fund that has down down an average of 44% per year, turning $1,000 into a bit more than a buck.
Finally, a caller asks if his adult child should invest in Vanguard Total World Index.
Tom and Don discuss honest financial advisors inability to tell you what you want to hear. Only the dishonest ones try to give you future advice.
Also, while the S&P 500 outperformed international stocks over the past decade, bonds have earned more than the US blue-chip stock index since the beginning of the 21st century.
A caller wants advice on target-date funds.
Another wants to discuss his opinion of variable annuities.
Is it a good idea to get your financial paperwork electronically?
Recently, on CNBC, David Faber and Jim Cramer tried to understand how the market could have gone up when they thought it should down.
Then, Don answers questions about:
Investing in the YMCA Retirement Fund.
The difference between buying an individual stock after it has fallen and buying the same stock in an index fund.
Options for tax-advantaged investing after fully funding a 401(k).
The wisdom of paying taxes now to move IRA assets into a Roth IRA.
For some reason, a lot of people expect a target date fund to protect from the declines of a bear market. Yet, to be effective, they must have a risky component. Tom explains why target-date funds still make sense in your retirement plan.
They lure you in with the suggestion of stock market (like) returns with no risk in down markets. It's the perfect pitch for an horribly imprefect product, indexed annuities. The truth is many of you don't want to know the truth about these complex products that can't possible give you the long-term return of stocks and pay those who sell them up to, in some cases, 10% of your investment. Any wonder smarmy salepeople love them? Tom and Don, again, try to warn a listener about them.
We also hear from a lot of callers:
Why won't more people save and pay attention to the good advice we share on the radio?
What is the process for converting and IRA into a Roth IRA?
Just how easy it is to get some help from making mortgage payments in this crisis.
How to rebalance when you have no bonds?
How can you set up a Roth IRA for kids?
What is a single 401k?
The stock market must behave badly at times. You just can't know when. That's why you need a plan.
Plus, why this is a great time to finally unload those individual stocks you shouldn't own and what should you do when you run into a bear.
In addition, Tom and Don answer questions about:
The difference between mutual funds and ETFs.
What to do with retirement funds to keep the from falling so fast.
Buying cruise lines stocks now that they're down.
The best way to allocate assets for the future.
The wisdom of paying off a mortgage.
Quite possibly two of the worst financial prognosticators and best book peddlers get together on one podcast that you do want to miss. You'll stand a better chance of being a Rich Dad if you ignore their advice. Don explains why.
Plu,s Don takes questions on giving money to grandchildren, finding Saturday's shows, and burial insurance.
You might think that someone who "called" the recent market decline might provide some decent investing advice, but you'd be wrong.
Marketwatch states that "He nailed the March coronavirus selloff," and shares hedge fund manager, Dan Niles latest prediction. Don checks out his track record and finds it hard to call his prediction even a lucky guess.
Plus, more of your questions on which Vanguard mutual finds to own, moving from the TSP to an IRA, and whether it's wise to have everything in one fund.
Tom goes back to 1935 to help put today's financial situation in perspective and shares some ideas on how you can use your extra time to save and manage money.
Tom and Don disagree over the possible effectiveness of charting techniques.
We also discuss the upcoming relief checks coming from the government.
A caller gets a bit political about the government bailout.
Another caller wants to find out whether or not he qualifies for the $1,200 government checks based on his wildly fluctuating income.
Next we discuss required minimum distributions (RMDs) from retirement plans.
The wisdom of Roth conversions in the current market.
A caller from the IRS shares some stimulus information for those who haven't filed tax returns.
Advantages of using a non-dedustible IRA for a Roth conversion (Back Door Roth).
Then, we discuss the wisdom of rebalancing in this market. It's not different this time.
Of course, we start the episode with a little stock market pep talk (very little), then Don takes a slew of questions beginning with one about how to move money from a taxable account in an IRA without invoking the Wash Rule.
A caller asks about the need for bonds in a portfolio that leads to a bit of head-scratching on Don's part as to why the caller owns complex illiquid alternative funds like those from Stone Ridge.
A retiree wants to know whether it is better to rent an apartment or buy a condo.
Another wonders why now is the time to fund a Roth IRA.
A finally, Don is asked for the names of the two funds he likes at Vanguard.
It's deja vu all over again. We find an article that could have been written today, but was actually published almost 12 years ago. What's happening today has happened before and will happen again. Stop looking so often and you'l be less worried.
We discuss how the various markets have done and suggest rebalancing.
A caller wants to know where the money will come from to pay for the latest government stimulus package.
Stop referring to the markets in the present or future tense. Stocks are not going done, they have only gone down.
Plus, you are not smarter than Wall Street professionals and even they aren't smarter than the market, long-term.
Could Boeing or some airlines go bankrupt.
Even investment grade corporate bonds turn out ot be riskier than Tom believed.
We share a great old quote from Benjamin Graham.
Finally, investors have been investing in the wrong Zoom.
We are in unsettled times and, therefore, the securities markets will continue to move all over the place. That doesn't mean you nedd to be doing anything different, unless you weren't properly invested to begin with.
Don takes questions on:
Whether or not to pay off a mortgage.
How bonds and bond funds work.
Rebalancing and tax-loss harvesting a growth-oriented mutual fund portfolio.
Tom shares more reasons to back away from the edge before you push your portfolio into an unknown abyss.
Some of the worst investments are offered to 403(b) participants by insurance companies. You need to know where you're money is invested.
A caller wants to know about investing in pot stocks.
Another listener calls about bad advice being given to her elderly parents.
Our brain tries to trick us into believing that we knew things they we actually didn't.
Then, a caller asks about the best ETFs to take advantage of the market decline.
Considering investing in individual stocks? CAN the company go bankrupt?
Finally, a woman shares a story about a broker sister who sold her an annuity.
A Bonus Episode.
Gloabl stock markets soared over the past 24 hours and the best advice is still "do nothing but rebalance."
Plus, Don takes a non-viral question about the terrible advice that a major financial firm provided in the guise of a fiduciary. Was this "advisor" acting in the clients best interests? Not likely.
Tom starts the episode with an off-key tribute to Kenny Rogers and suggests you hold 'em... and rebalance 'em. You need a plan that starts with your risk tolerance. Plus, why you need some historic perspective.
Our first caller expresses concern about his stable value fund.
Then, Tom and Don applaud a listener for taking advantage of the reduced price of stocks.
How far have bonds yields fallen recently?
An American Funds investor is concerned about the huge decline in his funds' value.
Why you need bonds in your portfolio and how bond funds work.
Recency bias: another emotion that messes with our perception.
Should you sell your stocks now? With global stock markets down by over 30%, how much farther can they realistically fall? Don looks back at history and shares some logicl assumptions to help you put the current panic in perspective.
Plus, Don answers lots of listeners questions on:
The timeliness of Roth conversions and the value of tax losses.
investing now or dollar-cost averaging.
Moving assets in a TSP.
Rebalancing now or later.
Once again, Don does that thing he hates to do, looking at the financial markets. Sometimes, it's just better to ignore the craziness and get back to normal. To that end, Don answers a host of questions:
Should you speed up your retirement contributions?
Should assets be spead out to stay below SIPC insurance limits?
How do mutual funds work?
Is it better to invest in sectors or asset classes?
You cannot turn on the news or open your web browser without being inundated with stories about the coronavirus. Markets react to events such as these because of uncertainty about when they will end. However, these events eventually blow over and markets recover. Over the past 2000 years, the global economy has been steadily growing, and it has withstood crises of greater proportions than this one. Tom and Don also talk about backdoor IRAs and how Roths and regular IRAs works. They discuss estate planning too, shedding light on why a trust might work best for the caller, and caution that the probate process may be a nightmare for their heirs.
- Why having individual stocks is not worth it and examples of ones that have fallen.
- Learn more about backdoor Roth IRAs, how they work, and the benefits of utilizing them.
- Find out how restaurants are coping with the coronavirus crisis: Drive-through and delivery.
- Top tips on estate planning and getting the most money to your kids when you pass on.
- You don’t look at the fluctuating value of your house every day, so don’t do it with stocks!
- Today's stock investing climate means that investors expect higher returns for increased risk.
- The global economy has withstood far worse shocks than the coronavirus.
Vestory — https://vestory.com/
Kroger — https://www.kroger.com/
Matt Colvin — https://www.nytimes.com/2020/03/15/technology/matt-colvin-hand-sanitizer-donation.html
Do stocks outperform Treasury bills? — https://wpcarey.asu.edu/department-finance/faculty-research/do-stocks-outperform-treasury-bills
Tom Douglas — https://www.tomdouglas.com/
Tupelo Honey — https://tupelohoneycafe.com/
Pal’s Sudden Service — https://palsweb.com/
Tom tries to understand why we keep buying individual stocks. He has a few theories and some powerful reasons why you're wrong. He looks at a couple of specific stocks that you might have purchased in the recent past.
On this episode, we discuss fear and greed, and how these emotions detract from our decision-making skills. We talk about the guys who bought up all the sanitizer and weigh in on the effects of greed and fear on our investment decisions. Tom and Don also look at a few different stocks/bonds portfolio options and how important it is to pay attention to the expense ratio. Don’t listen to the brokers! Don’t back out too soon either because as we show you today, after every big crash portfolios start rising very soon after.
- Market fluctuation in relation to crises and the value of not watching it too closely.
- How 60/40 portfolios recovered three years post crashes.
- Building your portfolio based on risk tolerance and needs instead of the market.
- Friday: a free interactive class called Retirement Investing in Turbulent Times.
- The value of having the right type of bonds in your portfolio to anchor finances.
- The guy who resold sanitizer and how the market gets negatively affected by fear and greed.
Once again, Don shares the latest craziness that we used to call the stock market and provides more advice on coping with the volatility.
Then, he takes two questions on the current situation:
Should listeners stockpile some cash?
Is now the right time to rebalance an out of balance portfolio.
The market suffered another big loss. So, what should you do about it? Don explains the reality of investing versus trading.
Plus, a caller adds some valuable information to answers from previous podcasts.
The world is always changing, just as you get used to something it changes and that’s just the way life and, coincidently, the markets work. We are currently dealing with stock markets that are all over the place. On this episode of Talking Real Money, Tom and Don have an in-depth discussion about indexed annuities — what they are, where they come from, who’s trying to sell them to you, and whether they’re a good investment. We also answer questions from listeners on property investing, where to start your retirement portfolio for our recently graduated college students, and discuss the taxation possibilities on inherited IRAs.
- Don and Tom share thoughts on indexed annuities.
- Advice on whether to sell property, taxation involved and what to do with the income.
- Understanding condominiums, and whether they are a good investment.
- Recent college graduates: The basics on where to start your retirement portfolio.
- Rules and guidance surrounding taxation on inherited IRA’s.
Vestory — https://vestory.com/
National Western Insurance — https://www.nationalwesternlife.com/
Vanguard — https://investor.vanguard.com/home
VTWAX — https://investor.vanguard.com/mutual-funds/profile/vtwax
College Funds for Your Children— https://my529.org/
NOTE: If you are worried about your portfolio be sure to attend Don's special, free, online class "Retirement Investing in Turbulent Times" on Friday, March 20, 2020. *Sign up here.*
This episode was recorded on Saturday, March 7th. Don and Tom discuss the market reaction to the coronavirus. Then, they answer caller questions about buying when stocks are low, steering away from individual stocks, getting the right fiduciary advisor, and why, despite world-wide pandemics, your strategy should still be focused on the long-term game.
- How real events like the Coronavirus affects your money.
- Why you shouldn’t do anything to your portfolio, despite the severity of a pandemic.
- Understanding that risk is not an abstract concept, but rather the loss you have to accept.
- Rather than selling, why now is a good time to buy stocks while they are low.
- Importance of putting world-wide events into perspective for your money.
- Where to find fee-only fiduciary advice to avoid commission products.
- How to make the most out of your Health Savings Account (HSA) for retirement.
Vestory — https://vestory.com/
Lively — https://livelyme.com/
TD Ameritrade — https://www.tdameritrade.com/
Well, the bear has roared back into our lives. Remember, that's the price you pay for the stock market's impressive historic returns.
However, you need a more balanced portfolio to help you ride out the volatility inherent in the system. Yet, people still ask, "Why bonds?"
Tom explains.
Don starts with something he generally hates doing, commenting on the wild stock market.
Then he moves on to the important stuff, like helping a widow find some personal and financial direction after losing her husband.
Another bad day for stocks on Wall Street and around the world. With all of the bad news, there is some good news: This is totally normal. Stocks have tended to rise, but must fall sometimes. Don has a bit of advice for younger and older investors. He also answers a question about some annuity advice from a broker.
A wild week ends with little change in the stock market. Plus, Don wants your to put you fear in perspective. Life is always scary.
He also answers a question about Health Savings Account (HSA) rollovers.
This market is even making Don a bit dizzy, but you need to get some perspective maintain your discipline.
Plus, Don takes questions on:
Finding an old 401k
Tracking errors between exchange-traded funds (ETFs) and their benchmarks.
I can understand not wanting to get sick. I get the concern about coprporate earnings suffering possible setbacks. But, I am confident that we are not facing a viral Amegeddon. However, we do like a good scare. We'll get over it.
Then, business as usual as Don takes call about:
Moving a taxable account into a 457 plan.
Using an IRA to but actual rental property.
Dipping into emergency funds to buy on the dip.
With a big chuck of last week's losses recovered on Monday, you have another opportunity to get investing right. Are you ready to become a real investor?
Plus, Don talks with callers about being a closet market timer, lending money to a child for a house purchase, and the lower fees of Fidelity's Freedom Index funds.
Tom talks about the recent stock market declines and how a diversified portfolio has saved most investors from big (paper) losses.
We also have more new advice and information on avoiding financial panic at http://realinvestingjournal.com
Well, those crazy stock traders went and did it again. They caused stocks to lose 10%, allowing the media to scream "correction!" from the rooftops. Are you a real investor or a gambler? Then, congratulations, you have them right where you want them.
Oh, and as for COVID-19, no one knows how bad it might be. Good news though, it's nowhere near as bad as the flu, so far.
Don takes questions on picking a Roth or traditional 401k and whether an ex-spouse can go after a TSP.
It's time to quit pretending to be a REAL investor and actually get with the program. Stuff happens. Always has. Always will. You can neither predict not react to the news. If you can't control your emotions stop watching, reading, and listening.
Create a diversified (GLOBALLY) portfolio with some, gasp, bonds (yes, bonds) to dampen volatility based on your risk profile. Know how much risk you need to take to meet your goals and how much volatility you can stand. Take our FREE RisQuiz at vestory.com/risquiz.
Don also takes listeners questions on:
Lending stocks in your portfolio?
Finding the cost basis of an old mutual fund?
How much and which international funds?
Yes, the Dow and the global stock markets took a beating. You're worried. What should you do now? Listen to Don! He has the only answer that can possibly work.
Plus, your questions on:
Diversifying past our two fund Vanguard global equity solution?
How soon do I need to die to take Social Security at age 62?
On today’s episode Don and Tom guide a couple regarding questionable advice given to them by a financial advisor, they talk about annuities and whether they’re always a bad options for investing, and explain more about the difference between life insurance and whole life insurance.
- Advice on true fiduciary advisors and what to do with creating income for retirement.
- What annuity sales people do and what to watch out for.
- SECURE Act: Whether it is possible to roll a traditional IRA into a solo 401(k).
- The difference between life insurance and whole life insurance.
- LIRPs otherwise known as Super Roth’s: They are not tax free!
- They explain why bonds are a part of a portfolio: Stability, not income.
- The trick to figuring out how much you need for retirement.
- Why big brokerage house portfolios are not well diversified and how to change that.
- NUA: Net Unrealized Appreciation and whether you truly can save on tax.
Financial Fysics on Amazon – https://www.amazon.com/Financial-Fysics-Money-Investing-Really/dp/1453898557
Vestory — https://vestory.com/
Retiremeet 2020 — http://www.retiremeet.com/
Vanguard — https://investor.vanguard.com/corporate-portal/
We talk with the attorney Rick Gregorek about the impacts of the SECURE Act.
A caller has a an account for her daughter, who is now an adult, and wants to know what to do with the assets.
Actively managed mutual funds have fallen on hard times.
Another caller looks for information on a scary, active international technology fund.
Tom explores the arguments for owning or renting a home in retirement. Also, should you pay off your mortgage.
On today’s podcast, Tom and Don discuss the reasons that most Americans are bad investors. They answer questions from listeners about the Invesco Oppenheimer Main Street Fund, private equity versus publicly traded funds, microcaps, RMDs (required minimum distributions, and why building your portfolio should be based on your personal retirement plan. You need a retirement plan in place before you start investing so that you know what you are working towards.
- Invesco Oppenheimer Main Street Fund.
- Don and Tom share their opinions on why most Americans are bad at investing.
- Private equity and why the data shows it doesn’t work.
- Microcaps: The better benchmark, which are publicly traded.
- RMDs: How to appropriately navigate the new rules.
- Don and Tom discuss Vanguard’s decision to go into private equity.
- Building your portfolio based on the rate of return you need to finance your retirement.
- Average monthly Social Security benefits are not enough to cover your monthly rent.
- Understanding the importance of a well rounded, all-encompassing retirement plan. \
Financial Fysics on Amazon – https://www.amazon.com/Financial-Fysics-Money-Investing-Really/dp/1453898557
Vestory — https://vestory.com/
Retiremeet 2020 — http://www.retiremeet.com/
Retiremeet 2020 — Discount code FLASH
Invesco Oppenheimer Main Street Fund — https://www.invesco.com/us/financial-products/mutual-funds/product-detail?fundId=31890
Vanguard — https://investor.vanguard.com/corporate-portal/
S&P 500 — https://www.marketwatch.com/investing/index/spx
HarbourVest Partners — https://www.harbourvest.com/
Apollo Lupescu on LinkedIn — https://www.linkedin.com/in/apollo-lupescu-78a3b87a
On today’s episode of Talking Real Money, Tom and Don talk about the importance of having a retirement plan. Retiring is a journey that you need to plan for, because not planning can lead to all kinds of mistakes. They also answer questions and give advice on setting up IRAs for your grandchildren, whether you can have too much money in your regular IRA, and whether you can avoid paying capital gains. We also discuss when contributions to SEP-IRA are still allowed and understanding when to pay off debt versus saving for retirement.
- The importance of having a retirement plan.
- Grandparents: Leaving a legacy and setting up IRA’s for your grandchildren.
- Whether there is too much money in your regular IRA, and what the tax implications are.
- Under what circumstances you can avoid paying capital gains.
- SEP IRA: When you can still contribute?
- Understanding when it’s better to pay off debt versus saving for retirement.
Vestory — https://vestory.com/
Retiremeet 2020 — http://www.retiremeet.com/
Retiremeet 2020 — Use the code FLASH
Vanguard — https://investor.vanguard.com/corporate-portal/
Vanguard VTWAX —https://investor.vanguard.com/mutual-funds/profile/vtwax
SEP IRA (Vangard) — https://investor.vanguard.com/small-business-retirement-plans/sep-ira
SEP Plan FAQ — https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-seps
It's another busy question day at Talking Real Money.
First up a call from a woman who is struggling to keep up and has a divorce settlement to invest.
Then, Don helps a younger investor pick the best Fidelity index funds.
Finally, an older listener wants to know if an annuity might be a better option for income.
Don answers a pile of online questions from talkingrealmoney.com:
Starting with: Is it better to take the tax deduction and defer taxes or pay taxes and grow tax-free?
Then, he moves on to a very long question about reducing future RMDs by taking money early.
Finally, a question about moving a 401k (in an annuity) into an IRA.
Tom gets his first InstaPot and compares fast investing to cooking a portfolio the old, slow way. He also shares his slow-cook portfolio recipe.
Tom and Don explain why you should choose mutual funds by eliminating the bad ones first before trying to pick the right ones and compare some of the popular Fidelity and Vanguard funds to aid your decision-making. When it comes to choosing funds, the fees should be your first consideration. They remind listeners why they do not need a complex portfolio to be well-diversified. Tom and Don also share their take on including smaller companies in your portfolio, hiring an advisor early on in your investing career, and the only reasons for claiming your Social Security when it becomes available.
- The only problem with the Fidelity ZERO mutual funds.
- Eliminating the wrong mutual funds rather than trying to pick the right ones.
- How to tell if your Fidelity or Vanguard fund is active or passive.
- Comparing Fidelity's Balanced and Puritan Fund with Vanguard’s Balanced Index Fund.
- Using fees as the first point of criteria when choosing mutual funds.
- Why we don’t suggest complex portfolios and how two funds might be all you need!
- Why we would never own specialty or alternative funds.
- Building a three-fund portfolio at Fidelity.
- Why new investors probably don’t need the services of an advisor.
- Why it’s important to own smaller companies in your portfolio.
- When you are eligible for Social Security and what happens if you don’t claim it at the time.
- The two reasons why you should take your Social Security once you’re eligible.
Vestory — https://vestory.com/
Fidelity — http://www.fidelity.com
Vanguard — https://investor.vanguard.com
Retiremeet — http://www.retiremeet.com
Shaquille O’Neal on Twitter — https://twitter.com/SHAQ?ref_src
Paul Merriman — https://paulmerriman.com
We look at last week in the market and all the commotion about its movements, and discuss why this does not mean anything for the rest of the year. Tom and Don take a few calls about mortgages, home loans, and the best place to allocate your assets. They also talk about the usefulness of bond funds and the connection between cryptocurrencies and criminals!
- Do last week's market movements tell us anything about the future?
- Stretching for yield in bond funds and the links between risk and return.
- The one thing that cryptocurrencies do well.
- Home loans and the limits banks set on lending money for real estate.
- Asset allocation and getting away from high expense, actively managed funds.
Vestory — https://vestory.com/
Retiremeet — http://www.retiremeet.com/
RisQuiz — https://vestory.com/risquiz
S&P 500 — https://www.marketwatch.com/investing/index/spx
Eventbrite — https://www.eventbrite.com/
Warren Buffett — https://www.forbes.com/profile/warren-buffett/
Shaq O'Neal — https://www.basketball-reference.com/players/o/onealsh01.html
The New York Times — https://www.nytimes.com/
Don revisits Wednesday's question about the best form of advisor compensation.
Plus, he takes a call about broadening diversification using a Roth IRA
He also answers a question reducing bonds in a portfolio because of other income sources.
Don responds to an article about asset-based invesment advisors and their value versus their fees. Is portfolio creation worth what they charge? What happens to those small investors who are left without fiduciary advice?
Then he helps a couple of listeners who want to know:
The best plan for retiring at 50 when you can't yet touch your qualified plans (IRA or 401k) with incurring a penalty?
Why we believe that a single global total market fund is better than than owning a US and international fund.
To properly plan for the future, you need to have some idea what kind of retiun you can expect from your investments. Yet, with the future unknowable, what can you do?
Don then answers questions about:
The best IRA to inheritances.
The best IRA for young investors.
The future potentail for Avantis funds.
How much risk can you take? Are moderately aggressive? Maybe you're aggressively moderate? Or maybe there's a better way to talk about risk.
You cannot do anything about flucuating financial markets, so stop trying. That's the message of an essay by David Booth from DFA funds published recently at Worth.com
(article at https://www.talkingrealmoney.com/show-topics/)
Then, Don take a call about the differences between Vanguard and Fidelity funds.
Finally, he discusses small cap value investing and which Vanguard small cap index you should use.
Envestnet and Invesco are trying to hide active funds behind index funds and are getting well compensated in the process. Everybody wins except you.
A caller wants to know where to put $100,000 for growth (or is it income)?
Then Don answers a question about Twentieth Century's new Avantis ETFs. If you can't beat DFA, join them?
Finally, we hear again from our London correspondent.
It's an all phone-in Friday featuring financial wisdom from Paul Merriman and Marshawn Lynch.
Our callers want to know:
Why add a small-cap fund with a target-date fund?
Why we differ from John Bogle's international asset allocation advice.
Where can Trasury securities be purchased?
How the SECURE Act effects inherited IRAs?
Where should future IRA money be parked?
Plus, financial advice from Seattle Seahawk, Marshawn Lynch
Tom's shares some of the questions he most often receives from when to invest to the wisdom of paying off your home
One of the worst investments, non-publicly traded real estate investment trusts, is making a comeback thanks to the promise of big returns. There is a far better way to own real estate in your portfolio.
A caller with a very aggressive portfolio looks for a more restrained direction.
We love our listeners but it sometimes seem like you’re listening to someone else.
We get a unique non-financial call from a man whose son walked away from a hospital.
Another caller wonders why we suggested a particular Fidelity bond fund.
In this episode, Don shares a bit more information about an international question.
Then we take calls about using date funds and whether it makes sense to use a windfall to cover expenses to allow bigger retirement investments.
Finally, we spend some time discussing many of the market's past surprises and how investors can best invest for uncertainty.
One listener asks lots of questions and Don answers them:
Does a Roth 401k make more sense than a regular 401k?
What happens when an employer makes HSA (health savings account) contribution that exceed the Federal limit?
Podcast The Support: How to download from TalkingRealMoney.com.
Finally, how does my portfolio look?
This historic episode marks the first totally international question and answer session with queries from both the UK and Canada.
In this episode, Tom and Don discuss:
- How Japan’s market decline reminds us not to get too confident in US stocks.
- Social Security benefits for surviving spouses related to age and disability.
- All the great things you can learn at Retiremeet 2020, and how to participate in it.
- Whether to annuitize a life insurance policy or take its cash value and invest it independently.
- Proper investment tips: get a REIT with 24/7 allocation, and avoid investing in startups.
- Tips on the logistics of registering for Social Security benefits after 70.
- Reasons to keep trusting bonds: their worst drop was small compared to stocks, and more.
- How to set up pension benefits for your spouse after you’re gone: discuss it with them.
Financial Fysics on Amazon – https://www.amazon.com/Financial-Fysics-Money-Investing-Really/dp/1453898557
Vestory — https://vestory.com/
US Social Security Website — https://www.ssa.gov/
Nikkei — https://www.marketwatch.com/investing/index/nik?countrycode=jp
Retiremeet — http://www.retiremeet.com/#about
We start by discussing the response to the recent promotion of our podcast on Facebook. People do love their individual stocks even if they are wrong.
Tom and Don take a call on the taxation of Social Security benefits of a professional gambler.
Next, they take the advice of insurance salesperson posing as a financial advisor. That leads to a discussion of the deplorable tactics used to sell indexed universal life policies.
They explain when to use a Roth 401k or IRA. Then they move on to 529 plans.
Tom shares investors' expectation for the best investment of the 2020s.
Please forgive the audio quality. We are working on a better way to record the weekend radio show.
We start by talking about investing in 2019 and what you should (or shouldn't) do in 2020.
Plus, Don answers questions about dollar-cost averaging, taking money out in retirement and the differences between stockbrokers and investment advisors.
In this episode, Don and Tom talk about the horrible track record of market prognosticator, Robert Prechter and the Elliott Wave Theory. Later they discuss what to look out for when dealing with insurance companies and the new SECURE Act effect on retirement planning. They also field questions on selling property and the usefulness of IRA's.
- The Elliott Wave Theory and its prediction of the coming 'winter'.
- The new year and new laws that impact retirees; the SECURE Act.
- Contracts with insurance companies and why to always stay wary.
- Rethinking resolutions into longer term plans according to your needs.
- Collecting annuity funds and delays in processing your money.
- Selling property, working out the equation of gains and taxes and 1035 Exchanges.
- Why a Simple IRA is a smart bet for small businesses.
- Information on how to attend the upcoming Retiremeet event!
Talking Real Money Twitter — https://twitter.com/talkrealmoney
Financial Fysics on Amazon – https://www.amazon.com/Financial-Fysics-Money-Investing-Really/dp/1453898557
Vestory — https://vestory.com/
Retiremeet 2020 — http://www.retiremeet.com/#eventinfo
Paul Merriman — https://paulmerriman.com/
Apollo Lupescu — https://www.bernhardtwealth.com/blog/advice-dimensional-s-apollo-lupescu-phd
CNBC — https://www.cnbc.com/
Robert Prechter — https://www.robertprechter.com/
Elliott Wave Theory — https://www.marketwatch.com/story/legendary-technical-investor-robert-prechter-is-awaiting-a-depression-type-shock-in-the-us-2017-04-21
AIG — https://www.aig.com/
Executive Life — https://www.businessinsider.com.au/executive-life
In this episode of Talking Real Money, Don and Tom discuss the similarities of gambling and stock picking, getting out of bad investments and individual stocks, inheritance and family gifts and how to go about converting your IRA into a Roth IRA. They also share when you might consider paying surrender charges to exit a pricey product.
- The best investment of the 2010s.
- Gambling, the lottery and other ways to waste your money.
- Selling individual stocks and minimizing your risk with single companies.
- Legacy and inheritance; the best way to give gifts your children.
- The case for Roth conversions.
- Diversification, index funds and avoiding a conflict of interest in your portfolio.
- Surrender charges on annuities and cutting losses with a bad arrangement.
- Some information on the upcoming Retiremeet 2020.
Talking Real Money Twitter — https://twitter.com/talkrealmoney
Financial Fysics on Amazon – https://www.amazon.com/Financial-Fysics-Money-Investing-Really/dp/1453898557
Vestory — https://vestory.com/
Marshawn Lynch — https://www.pro-football-reference.com/players/L/LyncMa00.htm
Bill Gates — https://www.gatesnotes.com/
CostCo — https://www.costco.com/
Retiremeet 2020 — http://www.retiremeet.com/#about
Jim Zorn — https://www.pro-football-reference.com/players/Z/ZornJi00.htm
Bill Sharpe — https://www.investopedia.com/terms/w/william-f-sharpe.asp
my529 — https://my529.org/
Financial Engines — https://financialengines.com/education-center/topics/retirement-planning/
Some make exciting claims for alternative lending products in a diversified portfolio, but the costs are very high. Plus, the real risk is unknown.
A caller wonders if he should pay to get out of his annuity.
Another wants to help his son decide between a regular or Roth 401(k) plan.
A mutual fund that owns the same stocks it purchased back in 1935 and has never changed.
A caller is looking to cut costs by moving to a new community.
Today's episode is a bit of rant against the deplorable people who claim to be looking out for you, but are actually more focused on self enrichment.
We start with a Wall Street Jornal article about teachers unions profiting off teachers' portfolios.
Read WSJ article (paywall)
Read another article.
Then, Don shares the truth about most money talk shows and one in particular.
Read more here.
Why do people seem so surprised when they discover that even experts fail to accurately and consistently predict the future?
Should a caller diversify the funds in his TSP?
Should you dollar-cost-average or invest a lump sum?
Today, Tom and Don discuss Social Security scam calls and fraud and share a new site where you can report these activities. They answer questions regarding investing in Vanguard and give a few different index funds to consider as options. They talk deciding between a lump sum or an annuity as a part of your retirement plan, share their thoughts on precious metals, and what to do with privately held company stock. They also touch on structured notes and why this is not a good option for retirement investments, and finally they give advice to parents on how to help their kids manage their own investments.
- How to help the fight against Social Security fraud.
- Tips on what can and cannot happen to your social security number.
- Whether investing in Vanguard is a low risk, safe option to maximize retirement investment.
- Don and Tom discuss different funds within Vanguard as optional investments.
- What to consider when trying to make a decision whether to take a lump sum or an annuity.
- Do not buy precious metals — it’s one of the worst investments you can make.
- Privately held company stock — where to park it over the next year: money market.
- Structured notes: complex, convoluted, expensive, volatile and dangerous investments.
- Helping your kids manage their money: investing in their retirement.
Financial Fysics on Amazon – https://www.amazon.com/Financial-Fysics-Money-Investing-Really/dp/1453898557
Vestory — https://vestory.com/
Retiremeet 2020 — http://www.retiremeet.com/
Social Security Administration — https://www.ssa.gov/
Vanguard Funds — https://investor.vanguard.com/home/
Vanguard Balanced Index Fund — https://investor.vanguard.com/mutual-funds/profile/VBINX
Vanguard Balanced Index Admiral Fund — https://investor.vanguard.com/mutual-funds/profile/VBIAX
Vanguard Total World Stock Index Admiral Fund — https://investor.vanguard.com/mutual-funds/profile/VBIAX
Vanguard Total Bond Index Fund — https://investor.vanguard.com/mutual-funds/profile/VBMFX
Stockpile — https://www.stockpile.com/
In this episode Tom and Don talk about the crazy way some people choose funds for their 401k and suggest better ways to make your selections.
They help a caller find the Thrift Savings Plan at 401411.com.
And discuss giving Roth IRAs to children and grandchildren.
They also spend time explaining what's wrong with most 403b plans and how you can invest better.
On today's pocdcast:
The average American spends how much on lottery tickets every year? Seriously? You know you're going to lose. right?
A caller is looking for a way to help fund a disable child's future with an Able plan.
Why do we keep using a strategy that hasn't worked (lately)?
It's great to be in love, just not with your favorite stock. Tom explains why an attachment to one's stock has led to huge losses.
If you invest in stocks, we can guarantee that you will lose money at some point. Everyone is anticipating the next big market downturn, but is there really a reason to be afraid if you’ve made smart portfolio decisions? In this episode, we discuss why your approach to investing should be based on your personal risk profile and science. We share some helpful tips on rebalancing, advisory fees, and withdrawing funds from your retirement assets. Learn how to regularly buy low and sell high by making calculated disciplined decisions.
- Get in or get out? Reflecting on the 2008 market crash and where we are today.
- Timeline, volatility, and rate of return: The fundamental structure of your portfolio.
- Find out how to know when the right time to sell your individual stocks is.
- Rebalancing based on diversification, risk tolerance, and asset class.
- Why the value of the publicly traded stock market has steadily increased.
- Tips for transferring money from your pre-tax retirement savings to a Roth.
- Discover the appropriate fiduciary fees to be paying for investment advice.
- Learn more about Indexed Universal Life and whether it’s a good investment.
Financial Fysics on Amazon – https://www.amazon.com/Financial-Fysics-Money-Investing-Really/dp/1453898557
Vestory — https://vestory.com/
Indexed Universal Life — https://www.investopedia.com/articles/insurance/09/indexed-universal-life-insurance.asp
Talking Real Money TV — https://www.talkingrealmoney.com/#/videos/
As much as we all want that magic pill that makes us get rich without any risk, the truth is, that pill doesn’t exist! With sellers of products constantly baffling us with complex language and perfect sales pitches, ‘tis the season not to be manipulated! From “buffered annuities,” with their “cap rates” and “step rates” to get-rich-quick real estate courses, we take them all to task. By the end of this episode, you’ll be more informed of the tactics designed to manipulate you and gain a bunch of new tips to outsmart them. If you want to make better investment decisions to secure you in the 2020 New Year, this is the episode for you.
- Learn more about buffered annuities: Are they just another pitch-perfect scam?
- Why most language on financial contracts is designed to make you dizzy.
- What are cap rates, step rates, and other confusing jargon.
- Why two-thirds of Americans feel under pressure to spend more than they want to.
- Find out why Wall Street thrives on complexity in order to get you to buy their BS.
- High pressure real estate sales tactics and why real estate is a non-diverse investment.
- Discover how get-rich-quick real estate courses are designed to trap you.
- The longer you can live without taking out your Social Security, the better.
Financial Fysics on Amazon – https://www.amazon.com/Financial-Fysics-Money-Investing-Really/dp/1453898557
Vestory — https://vestory.com/
Bright House Financial — https://www.brighthousefinancial.com/
VGSIX — https://investor.vanguard.com/mutual-funds/profile/VGSIX
On today's podcast, Don answers questions about:
When to take Social Security.
Providing advice for an hourly fee.
The best investments for a 403b.
Consolidating assets with a single custodian.
This week's Friday Q&A focuses on income and the crazy risks being taken for higher yields.
We start we a bond fund purchased in an IRA. The yield looks great, but what about the risk?
Alternative income funds are all the rage. With all of the excitement being generated what is the downside?
In this special holiday episode, Tom share's some Christmas (or Hannukah) gift ideas that might even pass muster with Ebeneezer Scrooge because they have the potential to build wealth instead of destroying it.
There are many potentially dangerous financial opportunities and we want you to avoid get ripped off! In this episode, we look at the top misleading sales techniques that companies, financial advisors, market timers, and even reputable radio-show hosts use to mislead you. Tom and Don discuss a recent Chuck Jaffe article entitled: “Beware The Misleading Investment Sales Pitch.” We also discuss the fall of “America’s Money Answers Man,” Jordan Goodman.
- How companies, individuals, and radio-show hosts use sales techniques to mislead you.
- Learn more about “The Fall of ‘America’s Money Answers Man,’” Jordan Goodman.
- Why mutual funds are too expensive if they’re charging you over ½ a percent.
- Find out why funds are not as diversified as most investors out there think.
- Learn more about The Vanguard Total Stock Market Index Fund (VTWAX).
- Why you need to raise your guard against advisors, market timers, and traders.
- Why you should buy index mutual funds and know your return rates before investing.
- The differences between a stockbroker, a fee-only advisor, and a fee-based advisor.
- How to choose a financial advisor that acts in the client’s best interest.
Financial Fysics on Amazon – https://www.amazon.com/Financial-Fysics-Money-Investing-Really/dp/1453898557
Vestory — https://vestory.com/
Wells Fargo — https://www.wellsfargo.com/
Raymond James — https://www.raymondjames.com/
“The Fall of ‘America’s Money Answers Man’” — https://www.nytimes.com/2019/03/01/your-money/money-answers-man-jordan-goodman.html
American Association of Individual Investors — https://www.aaii.com/
Proactive Investing with Ryan & Larry — http://www.ksfo.com/proactive-investing-with-ryan-larry/
Chuck Jaffe — http://moneylifeshow.com/
Chuck Jaffe’s Seattle Times Column — https://www.seattletimes.com/author/chuck-jaffe/
“Beware The Misleading Investment Sales Pitch” — https://www.seattletimes.com/business/beware-the-misleading-investment-sales-pitch/
The Vanguard Total Stock Market Index Fund — https://investor.vanguard.com/mutual-funds/profile/VTSMX
Jordan Goodman Podcast — https://podcasts.apple.com/ca/podcast/the-money-answers-show/id421870391
Once again it’s the time of year for all kinds of financial predictions, many painting a gloomy picture of the future. Tom and Don specifically discuss Neil Irwin’s latest New York Times piece and more generally why we should not believe in the predictive power of perceived “experts.” The future is NOT foreseeable, but at best ‘foreguessable,’ and taking what thought-leaders say as financial gospel can land you in hot water. From there, they pivot to a discussion on rebalancing and timing, explaining why now would be an excellent time to rebalance your portfolio. Finally, they end the show with a discussion on how to educate future generations about investing and all that would go into ensuring the youth are financially fit
- Retiremeet: 2020 dates and phenomenal guest speakers!
- ‘Tis the season for predictions: A critique of Neil Irwin’s New York Times article.
- Your guess is as good as mine: why guesses have no inherent value!
- The difference between rebalancing and timing and why this year is perfect for rebalancing.
- What a good financial advisor should do for you annually.
- Whether it is a good idea to buy additional years of service for increased pension in cash.
- Why and how to educate future generation on the value of investing.
Financial Fysics on Amazon – https://www.amazon.com/Financial-Fysics-Money-Investing-Really/dp/1453898557
Vestory — https://vestory.com/
Retiremeet —http://www.retiremeet.com/
Paul Merriman — https://paulmerriman.com/
Apollo Lupescu on LinkedIn — https://www.linkedin.com/in/apollo-lupescu-78a3b87a/
Woodbridge Group — https://www.woodbridgegroup.com/
Robert Shapiro Woodbridge scandal — https://www.bloomberg.com/news/articles/2019-10-15/former-woodbridge-group-ceo-gets-25-years-in-1-3-billion-fraud
Your Portfolio is Probably Doing Great article — https://www.nytimes.com/2019/11/27/upshot/stocks-portfolio-economy-future.html
Neil Irwin — https://www.neilirwin.com/
Neil Irwin on Twitter — https://twitter.com/Neil_Irwin
Akane Otani — https://www.linkedin.com/in/akaneotani/
Akane Otani in The Wall Street Journal — https://www.wsj.com/news/author/akane-otani
Chuck Jaffe — http://moneylifeshow.com/
Another episode devoted to the craziness of cryptocurrencies. Along with the illegitimate crypto con jobs, of what use are legitimate cryptocurrencies?
Plus, a listener wants to know why he can't get a Vanguard fund through Fidelity.
Today, Don answers a question about active 403(b)’s, investing in Roth IRA’s, determining your personal risk tolerance level, and creating your own investment portfolio. He also delves into investing in REITs, understanding when to meet with your advisors, what to look out for when choosing the right person to advise on your investment strategies.
- How to take the RMD’s from your IRA account as a QCD directly to the charities you specify.
- The importance of being in control of your own Roth IRA and 403(b) investments.
- How to allocate your 403(b) investments and structure your portfolio according to your risk tolerance.
- Why REITs should only occupy a small percentage of your portfolio.
- Understanding when it is a good idea to meet with your investment advisors.
- The difference between a wealth manager, a financial advisor, a stockbroker, and an RIA.
- The legitimacy, longevity, and use of quantitative analysis as it relates to the finance world.
Financial Fysics on Amazon – https://www.amazon.com/Financial-Fysics-Money-Investing-Really/dp/1453898557
Vestory — https://vestory.com/
Retiremeet — http://www.retiremeet.com/
Litreading — https://podcasts.apple.com/ie/podcast/litreading-classic-short-stories/id1438044265
Readastorus — https://podcasts.apple.com/us/podcast/readastorus-timeless-tales-for-tots/id1455639994
Vanguard — https://investor.vanguard.com/home/
Fidelity Investments — https://www.fidelity.com/
U.S Securities and Exchange Commission — https://www.sec.gov/
Chase — https://www.chase.com/
RBC Capital Markets — https://www.rbccm.com/en/
On today’s episode Don talks about getting the income you need in retirement and whether where you’re investing now is where you should be investing for the future. Everybody is writing about alternatives to stocks these days, Jason Zweig wrote about commodities and how they might fit into a portfolio but hear why we have issues with them. We’re also talking about investing for your children, not letting taxes determine your investments, and diversifying your portfolio inexpensively.
- Saying no to commodities in a portfolio.
- Funding Roth IRAs for your children.
- Don’t let taxes determine your investments.
- How to achieve diversification inexpensively.
- Annuities are only good as a source of “guaranteed” income.
- The reality of indexed annuities and what to really expect.
Financial Fysics on Amazon – https://www.amazon.com/Financial-Fysics-Money-Investing-Really/dp/1453898557
Vestory — https://vestory.com/
RisQuiz at Talking Real Money — https://www.talkingrealmoney.com/risquiz
The Intelligent Investor by Jason Zweig — https://jasonzweig.com/
We understand that the future is unknown, but we have a hard time accepting that fact.
Where do you live when you don't live anywhere?
When should a caller start taking Social Security?
Plus, will he be better off with Raymond James or with Fisher Investments?
Don discusses:
The difference between real live human and robo advice.
Which income rule should you follow in retirement?
Recommendation for international funds.
Advisors challenged to provide fiduciary advice.
Tom’s on vacation, so in today’s short episode Don shares the biggest challenge in retirement, when to rebalance your investment portfolio, what risk tolerance looks like as you age, and why to invest your inheritance rather than pay off a mortgage. We also get into how to know when to self-manage your portfolio versus consult a fiduciary.
- How good financial advice can set you up to enjoy the historically recent luxury of retiring.
- Why active money management aggregates to no additional return.
- William Sharpe’s argument that the worst part about retirement is finding an income.
- Risk tolerance fluctuation in relation to age, and Wade Pfau’s perspectives on the matter.
- Whether to pay off a mortgage or get a diverse investment portfolio.
- When to self-manage your investment portfolio or consult an advisor instead.
Financial Fysics on Amazon – https://www.amazon.com/Financial-Fysics-Money-Investing-Really/dp/1453898557
Vestory — https://vestory.com/
Talking Real Money Videos— https://www.talkingrealmoney.com/videos
William Sharpe — https://www.nobelprize.org/prizes/economic-sciences/1990/sharpe/biographical/
The Arithmetic of Active Management — http://frontieradvisorsllc.com/files/1256790821_The%20Arithmetic%20of%20Active%20Management%20-%20Bill%20Sharpe.pdf
Wade Pfau — https://www.theamericancollege.edu/our-people/faculty/wade-pfau
There is one hedge fund that has managed to return almost 40% per year, but there are a few catches that preclude you getting involved. Then Don takes caller questions about safe portfolio options in a fluctuating market, investment strategies heading into old age, the best IRA accounts around, and what to do to keep your retirement safe through sticky 401(k) marriage legalities. Plus, how Ken Fisher stays rich using high-pressure sales tactics.
- The Efficient Market Hypothesis, Jim Simons, and the success rate of the best investors.
- Why having a properly diversified portfolio beats jumping in and out of the market.
- What to do with your IRA, Roth IRA, and Taxable accounts at age 67.
- How to invest in a cheaper IRA.
- Why you can’t protect your retirement after a botched marriage except by using an attorney.
- How Fisher Investments harasses potential investors through constant calling.
Financial Fysics on Amazon – https://www.amazon.com/Financial-Fysics-Money-Investing-Really/dp/1453898557
RisQuiz at Talking Real Money — https://www.talkingrealmoney.com/risquiz
Vestory — https://vestory.com/
The Man Who Solved The Market — https://www.amazon.com/Man-Who-Solved-Market-Revolution/dp/073521798X
Jim Simons — https://www.bloomberg.com/opinion/articles/2019-10-28/how-jim-simons-turned-built-the-best-hedge-fund-ever
Warren Buffet — https://www.forbes.com/profile/warren-buffett/#4bba6aff4639
Renaissance Technologies — https://www.rentec.com/Home.action?index=true
Gregory Zuckerman — https://www.gregoryzuckerman.com/
Northwest Plan Millennium Trust — http://mtrust.co.za/
Vanguard — https://investor.vanguard.com/
Good Help is Hard to Find — https://www.talkingrealmoney.com/videos
Ken Fisher — https://www.forbes.com/profile/ken-fisher/
American Century sent Don an e-mail trying to make junk bonds look better than stocks. Prevarication by omission is still deceitful.
More on non-qualified deferred compensation plans.
A caller adds his thoughts to Don's aging podcast from last week.
Plus, should you use financial planning software?