The Rational Reminder Podcast | The Index Fund "Tipping Point" | Rational Reminder 225 @rationalreminder | Uploaded November 2022 | Updated October 2024, 11 hours ago.
Are index funds a menace to the market? Are pension funds still a wise way to secure your financial future? In this episode, we discuss index funds, the state-sponsored pension plan in Canada, and much more. First, we unpack the nuances of index funds and take a look at the impact that active and passive investors have on the market. We discuss current index fund trends, when to switch from a passive to an active investor, and the dreaded index fund tipping point. To help us understand pension funds, we also chat with Jordan Tarasoff, a financial planner at PWL Capital, about the recent controversy regarding state pension schemes in Canada, and he provides us with some valuable insights into the government’s upcoming plan. We switch up our usual book review to celebrate Financial Literacy Month and share five recommended books that will help you improve your understanding of finance. We also try something new by giving listeners a condensed overview of a previous episode with one of our favourite guests, Scott Rieckens. Finally, we go through some of the feedback and comments we’ve received from the growing Rational Reminder community about the show and our recent financial goals survey.
Timestamps:
0:00 Intro
9:14 Main Topic: The Index Fund Tipping Point
14:15 The Size of the Active Industry
18:14 The Market Portfolio and the Tangency Portfolio
23:28 Who Turns Passive?
33:22 The Paradox
35:18 Conclusion
38:42 Deferring CPP until Age 70 May Be Suboptimal
54:06 5 Book reviews for financial literacy month
1:02:49 1 Episode. 60 seconds
1:04:50 Talking Cents
1:09:18 Podcast / Community feedback
Participate in our Community Discussion about this Episode:
community.rationalreminder.ca/t/episode-225-the-index-fund-tipping-point-discussion-thread/19992
Books From Today’s Episode:
Balance: How to Invest and Spend for Happiness, Health, and Wealth — amzn.to/35tiNPC
If You Can: How Millennials Can Get Rich Slowly — amzn.to/3UiPmnr
The Coffeehouse Investor's Ground Rules — amzn.to/3hqJsyQ
The Psychology of Money — amzn.to/3npH7G6
Think, Act, and Invest Like Warren Buffett — amzn.to/3WqgvXD
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Shop Merch — shop.rationalreminder.ca
Join the Community — community.rationalreminder.ca
Follow us on Twitter — twitter.com/RationalRemind
Follow us on Instagram — @rationalreminder
Benjamin on Twitter — twitter.com/benjaminwfelix
Cameron on Twitter — twitter.com/CameronPassmore
'On the Size of the Active Management Industry' — jstor.org/stable/10.1086/667987
'Disagreement, tastes, and asset prices' — sciencedirect.com/science/article/abs/pii/S0304405X06001954
'Measuring skill in the mutual fund industry' — sciencedirect.com/science/article/abs/pii/S0304405X15000628
'Which Investors Matter for Equity Valuations and Expected Returns?' — papers.ssrn.com/sol3/papers.cfm?abstract_id=3378340
'On index investing' — sciencedirect.com/science/article/abs/pii/S0304405X22001143
Are index funds a menace to the market? Are pension funds still a wise way to secure your financial future? In this episode, we discuss index funds, the state-sponsored pension plan in Canada, and much more. First, we unpack the nuances of index funds and take a look at the impact that active and passive investors have on the market. We discuss current index fund trends, when to switch from a passive to an active investor, and the dreaded index fund tipping point. To help us understand pension funds, we also chat with Jordan Tarasoff, a financial planner at PWL Capital, about the recent controversy regarding state pension schemes in Canada, and he provides us with some valuable insights into the government’s upcoming plan. We switch up our usual book review to celebrate Financial Literacy Month and share five recommended books that will help you improve your understanding of finance. We also try something new by giving listeners a condensed overview of a previous episode with one of our favourite guests, Scott Rieckens. Finally, we go through some of the feedback and comments we’ve received from the growing Rational Reminder community about the show and our recent financial goals survey.
Timestamps:
0:00 Intro
9:14 Main Topic: The Index Fund Tipping Point
14:15 The Size of the Active Industry
18:14 The Market Portfolio and the Tangency Portfolio
23:28 Who Turns Passive?
33:22 The Paradox
35:18 Conclusion
38:42 Deferring CPP until Age 70 May Be Suboptimal
54:06 5 Book reviews for financial literacy month
1:02:49 1 Episode. 60 seconds
1:04:50 Talking Cents
1:09:18 Podcast / Community feedback
Participate in our Community Discussion about this Episode:
community.rationalreminder.ca/t/episode-225-the-index-fund-tipping-point-discussion-thread/19992
Books From Today’s Episode:
Balance: How to Invest and Spend for Happiness, Health, and Wealth — amzn.to/35tiNPC
If You Can: How Millennials Can Get Rich Slowly — amzn.to/3UiPmnr
The Coffeehouse Investor's Ground Rules — amzn.to/3hqJsyQ
The Psychology of Money — amzn.to/3npH7G6
Think, Act, and Invest Like Warren Buffett — amzn.to/3WqgvXD
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Shop Merch — shop.rationalreminder.ca
Join the Community — community.rationalreminder.ca
Follow us on Twitter — twitter.com/RationalRemind
Follow us on Instagram — @rationalreminder
Benjamin on Twitter — twitter.com/benjaminwfelix
Cameron on Twitter — twitter.com/CameronPassmore
'On the Size of the Active Management Industry' — jstor.org/stable/10.1086/667987
'Disagreement, tastes, and asset prices' — sciencedirect.com/science/article/abs/pii/S0304405X06001954
'Measuring skill in the mutual fund industry' — sciencedirect.com/science/article/abs/pii/S0304405X15000628
'Which Investors Matter for Equity Valuations and Expected Returns?' — papers.ssrn.com/sol3/papers.cfm?abstract_id=3378340
'On index investing' — sciencedirect.com/science/article/abs/pii/S0304405X22001143
