The Rational Reminder Podcast
RR#220 - Jonathan Berk and Jules van Binsbergen: The Arithmetic of Active Management, Revisited
updated
What does it take to manage a $60 billion wealth management firm while keeping investment strategies grounded in scientific thinking? In this episode, we’re joined by Don Calcagni, Chief Investment Officer at Mercer Advisors. Don chairs the firm’s investment committee and provides guidance on mergers and acquisitions, investment integration, and long-term strategic planning. His expertise spans fiduciary oversight, portfolio management, private equity, and financial mathematics. In our conversation, we discuss how his firm constructs client portfolios, engages with academic and industry experts, and leverages a factor-based investment approach. He also explains the importance of having an investment philosophy rooted in fiduciary principles and delves into how Mercer Advisors manages fiduciary oversight for billions of dollars in assets across thousands of families. Explore the details of portfolio governance and the role of the firms’s alternative investment platform space. Gain insights on value metrics, factor investing, and how Mercer works to provide a family-office experience for everyday clients. Tune in for a deep dive into portfolio construction and the evolving landscape of wealth management with Don Calcagni!
Timestamps:
0:00:00 Intro
0:05:52 Main Topic: Optimal Retirement Withdrawal Sequence w/ Don Calcagni
0:47:56 Aftershow
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on TikTok — www.tiktok.com/@rationalreminder
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/our-team
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/our-team
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — https://x.com/MarkMcGrathCFP
Dan Bortolotti on LinkedIn — linkedin.com/in/dan-bortolotti-8a482310
Canadian Couch Potato — canadiancouchpotato.com/blog
Don Calcagni on LinkedIn — linkedin.com/in/donald-calcagni-8104b546
Mercer Advisors — merceradvisors.com
‘Building Better Portfolios | 2023 Summit’ — youtu.be/TWYukQogQPA
Future Proof Festival — futureproofhq.com/festival
Episode 316: Andrew Chen — rationalreminder.ca/podcast/316
Episode 323: Renting Versus Buying a Home in Canada 2005-2024 — rationalreminder.ca/podcast/323
Episode 325: Addressing 200+ Comments on Renting vs. Owning a Home — rationalreminder.ca/podcast/325
Papers From Today’s Episode:
‘Portfolio Selection’ — doi.org/10.1111/j.1540-6261.1952.tb01525.x
What are the critical factors driving investment success? How can investors balance profitability and risk? In this episode, we sit down with Dr. Sunil Wahal, the Jack D. Furst Professor of Finance and Director of the Center for Responsible Investing at the W.P Carey School of Business at Arizona State University, to delve into the intricacies of financial science. With over 25 years of academic and practical experience, Dr. Wahal shares his unique perspective on factor investing, profitability premiums, and how to approach value investing in today’s complex financial environment. He talks about the joint distribution of value and profitability, explains how profitability premiums work, and discusses the challenges faced when integrating academic research into practical investing strategies. Dr. Wahal also touches on common misconceptions in financial theory, the long-term benefits of maintaining a diversified investor base, and why understanding the nuances of financial risk is key to avoiding costly mistakes. Gain insights into building a successful investment portfolio grounded in the principles of financial science and how to avoid common pitfalls in factor investing. Join us to hear actionable strategies for balancing risk, understanding factors, and applying academic research to real-world scenarios with Dr. Sunil Wahal!
Timestamps:
0:00:00 Intro
0:04:59 How robust the profitability premium is in the pre-1963 data
0:09:22 How impactful controlling for value to the profitability premium is
0:12:57 How large the premiums have been for portfolios formed on value and profitability relative to a cap weighted portfolio
0:17:24 The best way for unlevered long-only investors to use this information in constructing a portfolio
0:22:50 Sunil describes the differences in Dimensional's and Avantis's approaches to implementing value and profitability in portfolios
0:28:43 How important an investor’s time horizon to their ability to capture the benefits of a tilted portfolio is
0:35:53 How institutions decide which investment managers to hire
0:39:56 How institutions decide when to fire managers
0:44:21 How manager hiring and firing decisions affects institutional performance on average
0:49:18 How relationship-based hires affects performance
0:52:03 How institutions choose which private market firms to invest in
0:57:11 The main lessons that institutional investors should take from Sunil's research
1:01:17 The lessons from this research that applies to retail investors
1:11:10 How competitive the market is for mutual funds
1:19:25 How investors can look for funds with a more diversified investor base
1:23:05 What this suggests about the efficiency of markets outside of the US
1:27:51 Sunil defines success in his life
Links From Today’s Episode:
Meet with PWL Capital: calendly.com/d/3vm-t2j-h3p
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on TikTok — www.tiktok.com/@rationalreminder
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/our-team
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/our-team
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Sunil Wahal on LinkedIn — linkedin.com/in/sunil-wahal
W. P. Carey School of Business — https://wpcarey.asu.edu/
Avantis Investors — avantisinvestors.com
Dimensional Fund Advisors — dimensional.com
UpWork — upwork.com
NVIDIA — nvidia.com
Episode 316: Andrew Chen — rationalreminder.ca/podcast/316
Books From Today’s Episode:
The Interpretation of Financial Statements — amazon.com/dp/0887309135
Papers From Today’s Episode:
‘Long-Term Shareholder Returns: Evidence from 64,000 Global Stocks’ — doi.org/10.1080/0015198X.2023.2188870
‘Long-Run Stock Market Returns: Probabilities of Big Gains and Post-Event Returns’ — dx.doi.org/10.2139/ssrn.3873010
‘Prudential Uncertainty Causes Time-Varying Risk Premiums’ — dx.doi.org/10.2139/ssrn.2176896
‘A Five-Factor Asset Pricing Model’ — dx.doi.org/10.2139/ssrn.2287202
‘Do Institutional Investors Exacerbate Managerial Myopia?’ — doi.org/10.1016/S0929-1199(00)00005-5
There are many different considerations behind housing when you are in the position to choose between renting or buying. During this episode, hosted by Ben Felix and Dan Bortolotti, we address user questions and comments on homeownership, rentals, and the factors that may lead to choosing one over the other. We discuss what makes homeownership more attractive as your financial situation evolves, consider whether or not landlords are making money on their properties in 2024, and explore the explanations behind whether or not renters are less wealthy than owners. This conversation also touches on one of the most common misconceptions about housing, why it is untrue, and how to make this key decision of renting or buying based on both lifestyle and financial considerations and the difference in mindset between renters and buyers. Join us today to hear all this and more.
Timestamps:
0:00:00 Intro
0:02:22 Main Topic: 250 Questions About Renting vs. Owning a Home
Links From Today’s Episode:
Meet with PWL Capital: calendly.com/d/3vm-t2j-h3p
Globe and Mail: Renting is often a better deal than buying theglobeandmail.com/investing/personal-finance/household-finances/article-renting-is-often-a-better-deal-than-buying-thats-because-of-how
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on TikTok — www.tiktok.com/@rationalreminder
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/our-team/?team-search=benjamin+felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Dan Bortolotti on LinkedIn — linkedin.com/in/dan-bortolotti-8a482310
Canadian Couch Potato — canadiancouchpotato.com/blog
Have you ever wondered how financial markets performed centuries ago or how world events impacted stock prices? Today, we sit down with Dr. Bryan Taylor, President and Chief Economist at Global Financial Data, to unpack the world’s fascinating financial history. Dr. Taylor is known for his extensive work in collecting and analyzing historical financial data that spans several centuries and his valuable knowledge of stock, bond, and commodity market trends, which led to the creation of Global Financial Data. In our conversation, Dr. Taylor shares insights from his extensive research, covering stock and bond returns from as far back as the 1600s. From the impact of the French Revolution on financial markets to the performance of commodities, Dr. Taylor provides a rare view of the long-term trends shaping today’s financial decisions. Learn about the value of historical financial data, its importance for investment decision-making, and how long-term trends can provide insights into future market behaviour. We discuss the creation of Global Financial Data's extensive historical financial database, the challenges of gathering centuries-old data, and the long-term performance of stocks versus bonds. Explore the impact of major geopolitical events on financial markets, the importance of studying historical market trends for modern investment decisions, and how his data-driven research has been utilized. Join us as we delve into the world’s financial history and its relevance to today’s investment landscape with Dr. Bryan Taylor. Tune in now!
Timestamps:
0:00:00 Intro
0:04:39 Bryan defines Global Financial Data
0:09:01 The challenges with collecting data on the distant past
0:13:29 How useful data from the distant past are for making investment decisions today
0:14:36 How stocks have performed relative to bonds throughout the full history that you have data for
0:22:50 Bryan describes the five financial eras that we have seen over the last 400 years
0:28:27 How to know what type of era we are in now
0:31:36 What effect government debt has on country stock returns
0:39:57 Which countries have the best and worst performing stock market throughout history
0:44:11 What the lessons from studying history suggest about expected stock and bond returns today
0:47:42 How low interest rates were in recent history relative to the long-term history of interest rates
0:53:20 How Bryan addressed the lack of historical data for emerging markets returns
0:57:14 How Bryan classifies an emerging market in his data
1:03:04 How often emerging markets transition to being developed markets
1:08:25 How the current level of concentration in the U.S. stock market look relative to history
1:13:43 Bryan defines success in his life
Links From Today’s Episode:
Meet with PWL Capital: calendly.com/d/3vm-t2j-h3p
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on TikTok — www.tiktok.com/@rationalreminder
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — https://x.com/MarkMcGrathCFP
Dr. Bryan Taylor — linkedin.com/in/bryan-taylor-46a92032
Global Financial Data — globalfinancialdata.com
Dr. Bryan Taylor on SSRN — papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=4320002
Papers From Today’s Episode:
‘France and the Four Horsemen of the Market’ — globalfinancialdata.com/france-and-the-four-horsemen-of-the-market
‘The Financial History of Emerging Markets: New Indices’ — dx.doi.org/10.2139/ssrn.4193062
Is renting just “throwing money away,” or could it be the smarter financial choice? In this episode, we dive deep into one of the most debated topics in personal finance: renting versus owning a home. In our conversation, we discuss the nuances of renting versus owning, the hidden costs of buying a home, and the importance of saving discipline. Tuning in, you’ll discover how emotional biases may inflate real estate prices and how societal pressures influence housing decisions. Then, we shift our focus to a listener's question about interest rates and bonds. Dan explains how bond prices and yields work inversely and delves into the concept of bond duration. He also breaks down how long and short-term bonds react to interest rate changes and why the Bank of Canada’s influence on bond markets may not always be straightforward. Join us as we investigate the pros and cons of renting versus buying and how to leverage bonds effectively in a dynamic interest rate environment!
Timestamps:
0:00:00 Intro
0:04:23 Main Topic: Buying vs Renting a Home in Canada
1:09:33 Ask the Spud
1:23:10 Aftershow
Links From Today’s Episode:
Meet with PWL Capital: calendly.com/d/3vm-t2j-h3p
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on TikTok — www.tiktok.com/@rationalreminder
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — https://x.com/MarkMcGrathCFP
Dan Bortolotti on LinkedIn — linkedin.com/in/dan-bortolotti-8a482310
Canadian Couch Potato — canadiancouchpotato.com
Future Proof Conference — futureproofhq.com
CMHC (Canada Mortgage and Housing Corporation) Rental Market Survey Data — cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-data/data-tables/rental-market/rental-market-report-data-tables
Episode 196: Sebastien Betermier — rationalreminder.ca/podcast/196
Episode 308: Dan Bortolotti — rationalreminder.ca/podcast/308
Statistics Canada — statcan.gc.ca
Bank of Canada — bankofcanada.ca
National Council of Real Estate Investment Fiduciaries (NCREIF) — ncreif.org
REALTOR.ca — realtor.ca
Kevin Prins — bmoetfs.ca/specialists/kevin-prins
BMO Canadian ETF — bmoetfs.ca
Financial Planning Association of Canada — fpassociation.ca
Papers From Today’s Episode:
‘Assessing High House Prices: Bubbles, Fundamentals and Misperceptions’ — aeaweb.org/articles?id=10.1257/089533005775196769&ref=josephnoelwalker.com
‘Lessons from Over 30 Years of Buy versus Rent Decisions: Is the American Dream Always Wise?’ — doi.org/10.1111/j.1540-6229.2011.00321.x
‘Perception of House Price Risk and Homeownership’ — nber.org/papers/w25090
‘Owner-Occupied Housing as a Hedge Against Rent Risk’ — doi.org/10.1093/qje/120.2.763
‘To Rent or Buy? A 30-Year Perspective’ — financialplanningassociation.org/article/journal/MAY18-rent-or-buy-30-year-perspective
‘Are Renters Being Left Behind?: Homeownership and Wealth Accumulation in Canadian Cities’ — http://hdl.handle.net/2429/50413
‘The Life-Cycle Effects of House Price Changes’ — philadelphiafed.org/-/media/frbp/assets/working-papers/2005/wp05-7.pdf
‘Depreciation of Housing Capital, Maintenance, and House Price Inflation: Estimates From a Repeat Sales Model’ — doi.org/10.1016/j.jue.2006.07.007
‘Characteristics of Depreciation in Commercial and Multifamily Property: An Investment Perspective’ — doi.org/10.1111/1540-6229.12156
‘Homeownership and Psychological Resources Among Older Adults: Do Gender and Mortgage Status Moderate Homeownership Effects?’ — doi.org/10.1177/08982643211029174
Can we really understand the impact of passive ownership on the US market? Marco Sammon is an Assistant Professor in the Finance Unit at Harvard Business School. During this episode, he joins us to share deep insights into the complex and counter-intuitive nature of the index fund revolution. To kick off our conversation, we discuss some of the challenges associated with getting a true understanding of the scope of passive ownership across the US. Distinguishing between different approaches to investment, we begin to unpack Marco’s paper with Alex Chinco, titled ‘The Passive-Ownership Share Is Double What You Think It Is’. We touch on the relevance of Grossman Stiglitz in 2024, pricing and reconstitution, and the ins and outs of employee stock and compensation. Using the case studies of huge global firms, we consider how to best accommodate passive demand. Lastly, as an index investor who does not own index funds, Marco shares his opinion on whether index funds have had a net positive or negative impact on financial markets. Tune in today to get a more dynamic view of the complex world of index funding and investment.
Timestamps:
0:00:00 Intro
0:04:15 How much of the US stock market owned by index funds
0:09:02 Marco defines what a passive investor is
0:11:33 Marco identifies which indexes he looks at for his estimates of total passive share
0:14:36 What Marco's findings suggest about the validity of the Grossman-Stiglitz framework for how investors choose between active and passive investing
0:22:29 How the price effects of index inclusions and deletions have changed over time
0:27:38 The implications of Marco's findings for market efficiency
0:30:38 How index fund ownership has affected price informativeness
0:35:29 How index funds’ demand for securities differs from that of other investors
0:46:11 How important firm issuance has been to the growth in assets managed by index funds
0:48:00 Where the shares provided by Firms to meet passive demand come from
0:52:54 The conditions affect the responsiveness of Firms in accommodating passive demand
0:57:00 How Marco thinks the market would respond to significant net selling by index funds
1:01:27 How firms with fast track index inclusion perform relative to their non-fast-track peers
1:05:41 How fast track IPOs would affect investors in index funds
1:11:46 Marco defines success in his life
Links From Today’s Episode:
Meet with PWL Capital: calendly.com/d/3vm-t2j-h3p
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on TikTok — www.tiktok.com/@rationalreminder
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Marco Sammon — marcosammon.com
Marco Sammon on X — https://x.com/mcsammon19
Episode 302: Michael Green — rationalreminder.ca/podcast/302
Papers From Today’s Episode:
‘The Passive-Ownership Share Is Double What You Think It Is’ — https://www.hbs.edu/ris/Publication%20Files/double-what-you-think-it-is%20may%2023_3c1ae213-5aec-407d-b656-13e3822f0b8b.pdf
‘On the Impossibility of Informationally Efficient Markets’ — http://www.dklevine.com/archive/refs41908.pdf
‘Capital Asset Prices With and Without Negative Holding’ — ideas.repec.org/p/ris/nobelp/1990_003.html
Do Demand Curves for Stock Slope Down? — jstor.org/stable/2328486
How can the Rational Reminder Podcast get even better? By bringing back one of its most beloved voices, Dan Bortolotti, also known as "The Spud." In this exciting episode, hosts Ben Felix, Cameron Passmore, and Mark McGrath announce that Dan, the mind behind the Canadian Couch Potato Podcast, will now be a regular guest, contributing segments like "Bad
Investment Advice" or "Ask the Spud.” Before Dan joins the conversation, we have an insightful discussion with Håkon Kavli, CIO of Reitan Kapital. Håkon shares how his team manages the wealth of one of Norway’s most prominent families, comparable to Canada’s Weston family. We discuss Reitan Kapital’s evidence-based investing approach, their robust methods for overcoming portfolio optimization challenges, and much more. Håkon also sheds light on their upcoming investing conference in Norway, featuring speakers like our very own, Cameron Passmore, and Marcos López de Prado. Following this, Dan kicks off his return by dissecting an article that advocates going all-in on the QQQ ETF in an RRSP, exposing the dangers of such a concentrated and risky strategy. He contrasts this approach with the wisdom of diversifying across global markets, using examples like Vanguard’s VEQT ETF, which offers exposure to over 13,000 stocks worldwide. Additionally, if you’re a financial advisor interested in joining a planning-focused, fiduciary firm like PWL Capital, we encourage you to reach out. Our team is growing, and we’re looking for like-minded individuals to join our mission. Tune in for a rich mix of expert advice, thoughtful discussions, and exciting announcements!
Timestamps:
0:00:00 Intro
0:07:29 Main Topic: Håkon Kavli, CIO Reitan Kapital
1:13:10 New Segment with Dan Bortolotti
1:28:36 Aftershow
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on TikTok — www.tiktok.com/@rationalreminder
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — https://x.com/MarkMcGrathCFP
Dan Bortolotti — canadianmoneysaver.ca/authors/dan-bortolotti
Dan Bortolotti on LinkedIn — linkedin.com/in/dan-bortolotti-8a482310
Canadian Couch Potato Blog — canadiancouchpotato.com
Canadian Couch Potato Podcast — canadiancouchpotato.com/podcast
Episode 308: Dan Bortolotti — rationalreminder.ca/podcast/308
Håkon Kavli on LinkedIn — linkedin.com/in/haakonkavli
Marcos Lopez de Prado — https://www.orie.cornell.edu/faculty-directory/marcos-lopez-de-prado
Antti Ilmanen — aqr.com/About-Us/OurFirm/Antti-Ilmanen
Episode 224: Prof. Scott Cederburg — rationalreminder.ca/podcast/224
Sharpe ratio — investopedia.com/terms/s/sharperatio.asp
Episode 210: Prof. Ludovic Phalippou — rationalreminder.ca/podcast/210
‘An interesting RRSP idea – all in on QQQ?’ — tawcan.com/all-in-on-qqq
Papers From Today’s Episode:
‘Estimating Private Equity Returns from Limited Partner Cash Flows’ —
papers.ssrn.com/sol3/papers.cfm?abstract_id=2356553
‘Mutual Fund Flows and Performance in Rational Markets’ —
nber.org/papers/w9275
‘What are Stock Investors' Actual Historical Returns? Evidence from Dollar-Weighted Returns’
— papers.ssrn.com/sol3/papers.cfm?abstract_id=544142
Have you ever wondered how vibes can shape the economy? Or how the economy differs from financial markets? Or even how meme stocks operate? In this episode, we dive into the intersection of economic theory, social media, and public sentiment with Kyla Scanlon, an insightful economic commentator known for her relatable approach to explaining complex economic concepts. Kyla is a prolific content creator and founder of the financial education company, Bread. She produces a weekly newsletter, informative YouTube videos, the Let’s Appreciate Podcast, and (almost) daily short-form videos that break down complex economic concepts into engaging, bite-sized content. She’s also the author of In This Economy?: How Money & Markets Really Work, an indispensable guide to the “mad math and terrible terminology” of economics. Join us as we explore her unique vibecession concept, discuss the impact of social media-driven market movements, examine the housing crisis through the lens of generational wealth transfer and zoning laws, and much more. As Kyla explains it, economics isn't just about numbers. It’s about the stories we tell and how they influence the world around us. For a fun, fascinating, and highly accessible look at the state of the economy today, don’t miss this conversation with one of the internet’s favorite financial educators!
Timestamps:
0:00:00 Intro
0:04:03 Kyla defines economics
0:06:02 How vibes affect the economy
0:11:33 How inflation expectations affect vibes and the economy
0:14:36 What people get wrong about housing
0:22:42 Kyla identifies the distinction between the stock market and the economy
0:25:50 Kyla explains why, or how, markets became a meme
0:29:49 Where Kyla thinks crypto went wrong
0:36:56 Kyla defines a "Vibecession"
0:42:16 Why the Fed exists
0:52:45 How social media affects people's vibes
0:53:46 Kyla's biggest learnings from talking to people about economics
0:58:15 Kyla defines success in her life
Links From Today’s Episode:
Rational Reminder on Apple Podcasts — podcasts.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on YouTube — youtube.com/@rationalreminder
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — https://x.com/MarkMcGrathCFP
Meet with PWL Capital: calendly.com/d/cpws-jyp-znp
Which account should you choose, a registered retirement savings plan (RRSP) or a Tax-free savings account (TFSA)? This is one of the most common decisions that Canadians must make when it comes to investing, but it will also elicit some of the most passionate responses. RRSPs especially get a lot of undue skepticism, with some even labelling it as a scam. Today we take a deep dive into both of these savings accounts, exploring the downsides and benefits of each, and how to decide which account is right for you based on your savings goals. With the help of Conquest Planning, a specialized, in-depth modelling tool, we look at a range of scenarios incorporating different variables, like income and family size, and break down our analysis regarding the RRSP vs. TFSA decision for each scenario. We discuss key factors to consider, including the basic personal amount tax credit, which allows RRSPs to act as a tax flow-through, and the guaranteed income supplement (GIS), which can impact retirement planning. Our conversation also examines how to approach family size and longevity, as RRSPs become more advantageous with longer lifespans. Join us today to learn about the benefits and flexibility of each of these accounts, the surprising ways RRSPs often outperform TFSAs, and find out which one is right for you!
Timestamps:
0:00:00 Intro
0:07:25 Main Topic: Ultimate RRSP vs. TFSA Showdown
1:04:09 Aftershow
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-
podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on TikTok — www.tiktok.com/@rationalreminder
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — https://x.com/MarkMcGrathCFP
Brady Plunkett on LinkedIn — linkedin.com/in/brady-plunkett-712489105
Lukas Fleck on LinkedIn — linkedin.com/in/lukasfleck
Flossing for your Finances, Personal Financial Strategies for Dentists — https://
us06web.zoom.us/webinar/register/9017236574029/WN_7O_JdvejRhmh-_LleBNRmQ#
registration
Episode 317: Kevin Milligan — rationalreminder.ca/podcast/317
Papers From Today’s Episode:
‘Tax Uncertainty and Retirement Savings Diversification’ — papers.ssrn.com/sol3
papers.cfm?abstract_id=2799288
If you’re in the Canada Pension Plan (CPP), then you won’t want to miss today’s conversation with Canada's Chief Actuary, Assia Billig. Assia’s knowledge of the CPP is extensive, having joined the Office of the Chief Actuary (OCA) in 2008, where she was involved in the preparation of statutory actuarial reports on the Canada Pension Plan and Old Age Security Program. She has served as Chief Actuary of the Government of Canada since 2019, and, before joining the OCA, she worked in private pension consulting. She is also a Fellow of the Society of Actuaries and the Canadian Institute of Actuaries. Assia joins us today for a deep dive into the most common questions about the Canada Pension Plan, from the inner workings of its financial components to the quality of governance that drives it. Discover the world-leading topics she and her team investigate, the immense power and research behind their analysis, and why the CPP is set to be sustainable for the next 75 years. We also discuss the concerns some people have about the CPP’s longevity, before examining how the actuarial report on the sustainability of the CPP, conducted every three years, reliably addresses this. If today’s conversation with Canada’s chief actuary does not instill confidence and pride in Canada’s investment in our collective retirement, then we don’t know what will! Tune in, to hear all of Assia’s keen insights and discover why she is unequivocally the best person to talk about the sustainability of the CPP.
Timestamps:
0:00:00 Intro
0:06:06 Assia defines the main function of the Office of the Chief Actuary
0:08:31 Assia defines the main purpose of the Actuarial Report on the Canada Pension Plan
0:13:33 How common it is for the report to result in changes to benefits or contribution rates
0:16:54 How much of the base CPP benefit payments are funded by contributions vs. investment income
0:23:32 How funding for additional CPP differs from base CPP
0:26:29 How plan sustainability is measured
0:33:05 How Assia estimates expected returns for the assets managed by CPP Investments
0:36:42 How sensitive the sustainability of the plan is to realised returns being lower than the expected returns
0:44:02 How a change in the income distribution affects the sustainability of the plan
0:49:56 How major world events like the pandemic affect the way that you approach the projections
0:53:46 What Assia would say to people who are sceptical of CPP’s future sustainability
0:54:51 Assia defines success in her life
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on TikTok — www.tiktok.com/@rationalreminder
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — https://x.com/MarkMcGrathCFP
Assia Billig — osfi-bsif.gc.ca/en/oca
Assia Billig on LinkedIn — linkedin.com/in/assia-billig-9b861587/?originalSubdomain=ca
Today, we sit down with Professor Kevin Milligan to unpack the recent capital gain changes and the complexities of the Canadian tax system. Kevin Milligan is a Professor of Economics at the Vancouver School of Economics, University of British Columbia. He holds positions as a Scholar-in-Residence at the C.D. Howe Institute and a Research Associate at the National Bureau of Economic Research. A two-time recipient of the Purvis Prize, Professor Milligan’s work is recognized for its significant contributions to Canadian economic policy. His research focuses on public and labour economics, particularly concerning the economics of children and the elderly, along with tax and labour market policy issues. In our conversation, we dive deep into capital gains tax, the progressivity of the tax system, and the distribution of tax burdens among different income groups. We explore the intricate details of who bears the burden of corporate taxes, the impact of recent capital gains changes, and the intriguing relationship between income and longevity in Canada. Professor Milligan also shares insights from his research on longevity and the implications of tax policies on economic behaviour. Join us and uncover the truths about Canada's tax system, capital gains changes, and their profound impacts on Canadians. Tune in now!
Timestamps:
0:00:00 Intro
0:08:31 Main Topic: An Economist's Perspective on Capital Gains Taxes
0:11:39 Main Topic: Special Guest Kevin Milligan
1:24:52 Aftershow
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — https://x.com/MarkMcGrathCFP
Professor Kevin Milligan — sites.google.com/view/kevin-milligan/home
Professor Kevin Milligan on X — https://x.com/kevinmilligan
The Vancouver School of Economics — economics.ubc.ca
C.D. Howe Institute — cdhowe.org
National Bureau of Economic Research — nber.org
Canadian Tax Journal — ctf.ca/EN/EN/Publications/CTJ.aspx
Episode 316: Andrew Chen — rationalreminder.ca/podcast/316
Papers From Today’s Episode:
‘How Progressive is the Canadian Personal Income Tax? A Buffett Curve Analysis’ — https://utpjournals.press/doi/10.3138/cpp.2021-087
‘The Evolution of Longevity: Evidence from Canada’ — onlinelibrary.wiley.com/doi/10.1111/caje.12497
Are you curious about the hidden factors driving your investment decisions? Today’s guest is Andrew Chen, a Principal Economist at the Federal Reserve Board who focuses on monetary policy and financial stability. Published in leading journals, his research informs key policy
decisions and helps shape the Federal Reserve’s strategy for managing economic challenges effectively. In this episode, Andrew delves into the intricacies of meta-research and asset pricing, focusing on cross-sectional asset pricing predictors, replication, and out-of-sample performance in factor investing. We discuss the significance of open-source data and
transparency, highlighting Andrew's creation of the Open Source Asset Pricing project, an indispensable and comprehensive dataset for asset pricing predictors. We also address the challenges of replicating financial studies, publication bias, data mining, and false discovery rates, with Andrew offering practical insights on how these factors impact financial research and investment decisions. For actionable insights that could refine your investment strategies and enhance your understanding of financial research, don’t miss this fascinating conversation!
Timestamps:
0:00:00 Intro
0:04:44 Andrew defines asset pricing factors and how it is different from a predictor
0:06:22 Andrew explains how many predictors there are
0:10:55 How many asset pricing factors Andrew was successfully able to reproduce
0:15:58 The implications of this research for the supposed “replication crisis” in cross sectional asset pricing
0:22:01 How the false discovery rate relates to publication bias and out of sample returns
0:27:10 Whether these are the worst-case transaction costs, or if Andrew uses cost mitigation techniques
0:34:09 Which factors, or factor combinations, had the strongest investable expected returns in Andrew's data
0:38:33 How peer-reviewed factors with strong theoretical underpinnings perform relative to naively data mined factors
0:43:54 What this tells us about the academic peer review process
0:47:10 What this tells us about the usefulness of machine learning for asset pricing research
0:51:06 The implications for people using peer-reviewed research for asset allocation decisions
0:54:37 Andrew describes the current state of cross sectional asset pricing
0:58:54 Andrew defines success in his life
Links From Today’s Episode:
Rational Reminder on Apple Podcasts — podcasts.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on YouTube — youtube.com/@rationalreminder
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — https://x.com/MarkMcGrathCFP
Andrew Chen — sites.google.com/site/chenandrewy
Federal Reserve Board — federalreserve.gov
Andrew Chen on LinkedIn — linkedin.com/in/andrew-chen-63394169
Andrew Chen on X — https://x.com/achenfinance
Books From Today’s Episode:
The Adaptive Markets Hypothesis: An Evolutionary Approach to Understanding Financial System Dynamics — amazon.com/dp/0199681147
Papers From Today’s Episode:
Andrew Chen, Tom Zimmermann, ’Open Source Cross-Sectional Asset Pricing’— papers.ssrn.com/sol3/papers.cfm?abstract_id=3604626
Kewei Hou, Chen Xue, Lu Zhang, ’Replicating Anomalies’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=3275496
R. David McLean, Jeffrey Pontiff, ’Does Academic Research Destroy Stock Return Predictability?’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=2156623
Ilia D. Dichev, ’Is the Risk of Bankruptcy a Systematic Risk?’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=99868
Campbell R. Harvey, Yan Liu, Caroline Zhu, ‘...and the Cross-Section of Expected Returns’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=2249314
Andrew Chen, Mihail Velikov, ‘Zeroing in on the Expected Returns of Anomalies’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=3073681
Victor DeMiguel paper relating to which factors have the strongest investable expected returns —
Andrew Chen, Alejandro Lopez-Lira, Tom Zimmermann, ‘Does Peer-Reviewed Research Help Predict Stock Returns?’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=4308069
During this episode, we welcome back Eduardo Repetto, Chief Investment Officer of Avantis
Investors. In his leadership capacity, he directs research design and the implementation of
strategies and oversees the investment team and marketing initiatives. Our conversation kicks
off with Edoardo’s explanation of how Avantis systemizes active management before we dive
into strategies for launching in Europe and beyond. He weighs in on the most significant
capacity issues that people face today, offering solutions to tweak your approach. We touch on
what makes Avantis strategies preferable for advisors and Eduardo shares his insights on the
future of small-cap value strategies for emerging markets. We discuss short-term reversals,
towing the line between growth and value and factors that should inform asset allocation before
diving deeper into small-cap value in the US and Canada. Tune in today to hear more.
Timestamps:
0:00:00 Intro
0:04:15 Main Topic
0:06:51 Main Topic: Eduardo Repetto - Avantis UCITS Launch
0:57:05 Aftershow
0:59:28 Aftershow: Small-Cap Value
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-
podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Eduardo Repetto on Linkedin — linkedin.com/in/eduardo-repetto-653231155
Episode 313 — rationalreminder.ca/podcast/313
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — https://x.com/MarkMcGrathCFP
In this episode, we sit down with Professor Valentin Haddad to unpack the intricacies of market elasticity, passive investing, and the dynamic nature of financial markets. Valentin is an Associate Professor of Finance at UCLA Anderson School of Management and a research fellow for the National Bureau of Economic Research’s Asset Pricing Program. His research
focuses on how financial institutions trade, and manage risk, and their impact on market prices and the broader economy. Notably, his work challenges traditional assumptions, such as the perceived safety of life insurance companies' investments in Treasuries. In our conversation, we
delve into the impact of index funds on the market, stock market bubbles around the development of new technology, and the response of investment-grade corporate bonds to the COVID-19 crisis. Discover the definition of demand elasticity, strategic interaction, and how market elasticity has changed over time. Explore how he defines a market bubble, ways stock
market bubbles are related to new technology, and how to measure the value of innovation. We also discuss the impact of COVID-19 on investment-grade corporate bonds, the Federal Reserve’s response, the implications for bond safety, and much more. Tune in and join us as we uncover the mess of the market with Professor Valentin Haddad!
Timestamps:
0:00:00 Intro
0:03:45 How substantial the shift toward passive investing has been over the last 20 years
0:07:30 Strategic interactions between investors
0:12:43 Why active investors would be limited in their strategic response
0:17:25 Defining the aggregate elasticity of an individual stock
0:23:56 How aggregate elasticities have changed over time in Valentin's sample
0:27:10 The implications of Valentin's findings for how passive investing is affecting asset prices
0:32:44 Whether Valentin's findings support the concept of a bubble in large stocks due to flows into index funds
0:38:26 The regulatory interventions that make sense to address the impact that passive investors may be having on demand elasticity
0:42:41 What investors should do with this information
0:46:14 How Valentin defines bubbles in his research
0:50:20 How the market value of innovation changes during bubbles
0:56:55 The implications of this research for innovation policy
1:02:42 What happened in the US investment grade corporate bond market in March of 2020
1:09:20 Why market participants weren’t stepping in to buy bonds as their prices crashed
1:12:10 The effect did the Fed’s intervention had
1:20:48 Valentin defines success in his life
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Professor Valentin Haddad — sites.google.com/site/valentinhaddadresearch
Professor Valentin Haddad on LinkedIn — linkedin.com/in/valentin-haddad-0056843
Professor Valentin Haddad Email — valentin.haddad@anderson.ucla.edu
UCLA Anderson School of Management — https://www.anderson.ucla.edu/
National Bureau of Economic Research (NBER) — nber.org
Episode 212: Prof. Ralph Koijen — rationalreminder.ca/podcast/212
Papers From Today’s Episode:
‘How Competitive is the Stock Market? Theory, Evidence from Portfolios, and Implications for the Rise of Passive Investing’ — dx.doi.org/10.2139/ssrn.3821263
‘Concentrated Ownership and Equilibrium Asset Prices’ — https://www.stern.nyu.edu/sites/default/files/assets/documents/Princeton- Haddad - Concentrated ownership.pdf
‘Bubbles and the Value of Innovation’ — drive.google.com/file/d
1tnvZ5L_zUcehn5hR720Nl1vtsTv4VgK0/view
‘When selling becomes viral: Disruptions in debt markets in the COVID-19 crisis and the Fed’s response’ — doi.org/10.1093/rfs/hhaa145
‘How Speculation Affects the Market and Outcome-Based
Low-cost index funds and digital tools have revolutionized wealth-building, making it easier than ever before to manage your own investment portfolio. However, additional support and expert advice can be critical to help you reach your financial goals, especially when facing complex financial decisions, feeling overwhelmed, or deciding to change your investment strategy. Today on the Rational Reminder Podcast, we discuss when it makes sense to hire a full-service financial advisor, whether or not every investor needs one, and how professional guidance can enhance your financial outcomes. You’ll find out how delegating your financial decision-making can not only boost your wealth but also improve your wellbeing, increase your peace of mind, and mitigate the impact of cognitive decline on your financial decisions as you age, plus so much more. For valuable insights that could transform your financial future, tune in today!
Timestamps:
0:00:00 Intro
0:02:38 Main Topic: When Should You Hire A Financial Advisor?
0:38:23 Aftershow
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — https://x.com/MarkMcGrathCFP
‘Why Do Investors Hire Their Financial Advisor?’ — morningstar.com/financial-
advisors/why-do-investors-hire-their-financial-advisor
‘Why Do Investors Keep Their Financial Advisors Around?’ — morningstar.com/financial-advisors/why-do-investors-keep-their-financial-advisors-around
Center for Fiduciary Excellence (CEFEX) — cefex.org
Papers From Today’s Episode:
‘Time Is Money: Rational Life Cycle Inertia and the Delegation of Investment Management’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=2350785
‘The Use and Value of Financial Advice for Retirement Planning’ — pm-research.com/content/iijretire/7/3/46
‘Professional Financial Advice and Subjective Well-Being’ — researchgate.net/publication/359635224
‘Smoking Hot Portfolios? Overtrading from Self-Control Failure’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=3347625
Discover the hidden underbelly of financial markets in today’s episode featuring Professor John M. Griffin, a leading forensic finance expert and the James A. Elkins Centennial Chair in Finance at McCombs School of Business at the University of Texas at Austin. Tuning in, you'll learn how forensic finance exposes illicit activities in crypto markets, revealing how entities like Tether (a cryptocurrency pegged to the US dollar) facilitate scams and money laundering. We also delve into the disturbing world of pig butchering scams, which have stolen more than $75 billion from victims globally, and how the victims of these scams have helped John study the flow of illicit funds in crypto markets. Find out how John uncovered massive fraud in the Paycheck Protection Program during the COVID-19 pandemic, and how this exposed the central role of fintech lenders and social networks in spreading fraud. We also discuss the importance of rigorous academic research and its practical implications in uncovering financial fraud, emphasizing the need for robust oversight and transparency in both emerging and traditional financial systems. Tune in for a thought-provoking discussion that challenges established practices and calls for greater scrutiny in financial systems!
Timestamps:
0:00:00 Intro
0:06:37 John defines Forensic Finance
0:09:27 How forensic finance helps balance out hype in areas like crypto
0:11:21 John defines a pig butchering scam
0:15:47 How scam proceeds typically enter and exit the cryptocurrency network
0:21:49 The role “legitimate” crypto exchanges play in criminal activity
0:25:27 The magnitude of the criminal activity John is measuring ($75 Billion)
0:33:21 How the crypto community responded to John's paper
0:36:53 John defines Tether
0:41:44 How decentralized the crypto space is (or isn't)
0:48:04 If John tested whether tether is backed by other financial assets
0:56:33 How prevalent fraud was in the COVID-19 Paycheck Protection Program in the US
0:58:55 The role FinTech lenders played in the propagation of PPP fraud
1:03:39 The effect PPP fraud had on real estate prices
1:08:46 The implications of John's findings with regards to how financial relief efforts should be executed
1:13:14 John defines success in his life
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-
podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Prof. John M. Griffin — https://www.mccombs.utexas.edu/faculty-and-research/faculty-directory/
john-griffin/
Episode 260: Prof. James Choi: Practical Finance — rationalreminder.ca/podcast/260
Papers From Today’s Episode:
‘Is Bitcoin Really Un-Tethered?’ — papers.ssrn.com/sol3/papers.cfm?
abstract_id=3195066
‘How Do Crypto Flows Finance Slavery? The Economics of Pig Butchering’ — https://
papers.ssrn.com/sol3/papers.cfm?abstract_id=4742235
When witnessing the dramatic payouts of miracle trades, it's easy to be lured into thinking that
your big score is just a few trades away. But as is evident in trading options for retail investors,
it is neither quick, simple, nor easy to make guaranteed returns on your investments. In today's
episode, Ben and Cam walk us through the many reasons why trading options is a losers’
game; especially for retail investors. Trading options is definitely today's hot topic and we
unpack how the recent resurfacing of Roaring Kitty affirms how life-changing payouts are the
exception rather than the rule. We dive deeper into trading options and their uses, the trading
demographics of the current market, why trading options are an expensive choice for retail
investors, and why people still choose to trade even when doing so at a loss. To end, Ben and
Cam highlight the dangers of being a copycat and how social media adds fuel to the fire and
we hear some heartwarming Rational Reminder Podcast reviews from a few of our dedicated
listeners.
Timestamps:
0:00:00 Intro
0:04:00 Main Topic: Trading Options is a Loser’s Game
0:21:17 Aftershow
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-
podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder Email — info@rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Books From Today’s Episode:
Wealthier: The Investing Field Guide for Millennials — wealthierbook.com
Papers From Today’s Episode:
‘Retail Trading in Options and the Rise of the Big Three Wholesalers’ — https://
onlinelibrary.wiley.com/doi/full/10.1111/jofi.13285
There is a huge range of factors that can impact our investment decisions, whether we realize it or not, from our level of financial literacy to our political affiliations. This is borne out in research conducted by today’s guest Professor Antoinette Schoar, the Stewart C. Myers-Horn Family Professor of Finance at MIT Sloan. Today, Antoinette joins us to share her insights and challenge conventional wisdom on various topics from target date funds to cryptocurrencies. Tuning in, you’ll learn about the transformative impact of target date funds on investment behaviours and asset allocation, before delving into the subject of financial literacy and financial advisors. Antoinette also sheds light on the unique dynamics of crypto trading and breaks down why retail investors' strategies in crypto differ significantly from those in traditional markets. We also discuss the complexities of private equity and venture capital, focusing on why these asset classes might not be suitable for retail investors due to high barriers and risks. Our conversation also covers the critical role of regulation in maintaining market stability and protecting investors. Join us for a thought-provoking discussion that promises to deepen your understanding of financial markets and enhance your investment decisions!
Timestamps:
0:00:00 Intro
0:04:49 How important target date funds have become to the American retirement system
0:08:38 How target date funds affected the trading behavior of retail investors
0:14:07 How target date funds affected individual stock prices
0:17:50 The effect target date funds have on market efficiency
0:21:38 How individual beliefs affect how one changes their portfolio in response to new information
0:28:24 How much variation there is across households in the risk perception of housing as an investment
0:31:09 How individual perceptions of house price risk affects the rent vs. buy decision for housing
0:35:36 How people can use this information to make better housing decisions
0:38:38 How well financial advisors de-biased their prospective clients in Antoinette's study
0:49:03 How reveicing advice affects investors' beliefs
0:53:49 How advisor compensation affects how their advice is perceived by the consumer
1:00:44 What got Antoinette interested in cryptocurrencies
1:07:13 How the trading behavior of retail investors in crypto differs from their trading in other asset classes
1:13:57 What caused the Terra Luna collapse
1:19:53 What the outcome suggests about the role of regulation in financial system stability
1:32:24 Antoinette defines success in her life
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Antoinette Schoar — https://mitsloan.mit.edu/faculty/directory/antoinette-schoar
Monika Piazzesi — https://economics.stanford.edu/people/monika-piazzesi
Papers From Today’s Episode:
‘Belief Disagreement and Portfolio Choice’ — nber.org/papers/w25108
‘Credit Supply and House Prices: Evidence from Mortgage Market Segmentation’ — nber.org/papers/w17832
‘Retail Investors’ Contrarian Behavior Around News, Attention, and the Momentum Effect’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=3544949
‘Anatomy of a Run: The Terra Luna Crash’ — nber.org/papers/w31160
When robo-advisors first came onto the scene, they were pitched as an easy way to access index funds. These digital platforms provide algorithm-driven financial planning and investment services, with little to no human supervision, and typically use passive investment strategies. But while this technology has revolutionized access, not all robo-advisors are created equal. In today’s episode, Mark, Ben, and Cameron sit down to discuss the role of robo-advisors as passive investors, and the performance disparity in robo-advisor returns, as they investigate different robo-advisors, from Wealthsimple to Wealthfront. Next, in this week’s version of ‘Would you rather?’, we have robo-advisors pairing off against active bank mutual funds, with each of our hosts debating the pros and cons of these two approaches. For our aftershow section, we discuss listener feedback, interesting community discussions, Ben’s addiction to Excel, and much more. Tune in for a deep dive into robo-advisors and how to navigate this technology!
Timestamps:
0:00:00 Intro
0:05:38 Main Topic: Are Robo Advisors Passive Investors?
0:39:08 Would You Rather?
0:45:39 Aftershow
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — https://x.com/MarkMcGrathCFP
Wealthsimple — wealthsimple.com/en-ca
Wealthfront — invest.wealthfront.com
Rational Reminder Episode 308: Dan Bortolotti —
Episode 299: The Most Important Lessons in Investing — rationalreminder.ca/podcast/299
The Money Scope Podcast — moneyscope.ca
Episode 251: Covered Calls — rationalreminder.ca/podcast/251
Papers From Today’s Episode:
‘Are Banks Better Money Doctors?’ — researchgate.net/publication
377037694_Are_banks_better_money_doctors_An_analysis_of_mutual_fund_flows_of_bank_and_non-bank_funds_using_Canadian_data
When it comes to DIY investing, there’s always a temptation to make things more complicated than they need to be. But, in reality, embracing simplicity is one of the best ways to ensure good investment outcomes. Today’s episode features an exceptional conversation with our long-time friend and colleague, Dan Bortolotti, who has worked alongside us as an Portfolio Manager at PWL Capital for over ten years. Some of our Canadian listeners might recognize Dan as the man behind the Canadian Couch Potato blog (one of the most popular resources for Canadian investors) and the voice behind the Canadian Couch Potato podcast. Dan is a consummate communicator, both on paper and in person; beyond his extensive blogging, he has also written a number of books, both fiction and non-fiction, the most recent of which includes Reboot Your Portfolio: 9 Steps to Successful Investing with ETFs. Dan has played a pivotal role in making PWL Capital what it is today, and in this episode, we learn about his surprising journey to becoming an advisor, before hearing his wide-ranging insights on DIY investing. Dan breaks down key components for investors, from how to approach your asset allocation and picking index funds to navigating fees, taxes, and performance. We also discuss how the investing landscape has changed since Dan started writing and essential lessons he has learned over the years. To hear all about investing from the Canadian Couch Potato himself, be sure to tune in for this expansive conversation!
Timestamps:
0:00:00 Intro
0:04:48 Dan tells the origin story of the Canadian Couch Potato blog
0:09:19 How the availability of index funds in Canada has changed since Dan started his blog
0:13:36 How the Couch Potato model portfolios have changed over time
0:18:32 The biggest obstacle to successful investing for most people
0:21:52 How Dan suggests people approach the stock/bond asset allocation decision
0:27:15 What goes into selecting an index fund once someone has decided on an asset allocation
0:35:12 How important it is to be clear on financial goals before investing
0:37:23 The importance of saving relative to things like fees and performance
0:44:49 Whether the importance of financial planning, as opposed to just investing, is appreciated by the DIY investing community
0:53:51 How people should make the DIY vs. advisor decision
0:58:48 What people should look for in a financial advisor
1:02:15 How Dan got connected with PWL
1:11:31 Dan defines success in his life
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Dan Bortolotti — pwlcapital.com/profile/dan-bortolotti
Dan Bortolotti on LinkedIn — linkedin.com/in/dan-bortolotti-8a482310
Canadian Couch Potato Blog — canadiancouchpotato.com
Canadian Couch Potato Podcast — canadiancouchpotato.com/podcast
Larry Swedroe on LinkedIn — linkedin.com/in/larry-swedroe-18778267
Larry Swedroe books on Amazon — amazon.com/Larry-E-Swedroe-Books/s?k=Larry+E.+Swedroe&rh=n%3A283155
Books From Today’s Episode:
Reboot Your Portfolio: 9 Steps to Successful Investing with ETFs — amazon.ca/Reboot-Your-Portfolio-Successful-Investing/dp/1988344328
Wild Blue — amazon.com/Wild-Blue-Natural-History-Largest-ebook/dp/B005BP0E3W
Are you confident about the amount of life insurance coverage you have? Are you maximizing your tax savings with the principal residence exemption? In this episode, we delve into life insurance and optimizing capital gains to answer these essential questions. In our conversation, we unpack the nuanced topic of life insurance, what people get wrong about it, and how to effectively calculate your life insurance policy needs. Using his own experience as the lens for the conversation, Mark shares how he calculated his life insurance and incorporated costs such as funeral cover, emergency funds, short-term expenses, and income replacement. Learn about using the safe withdrawal rate shortcut, free resources for calculating life insurance costs, and the best financial tools for getting the most out of your policy. He also delves into capital gains and how to use a lesser-known exemption to reduce the amount owed significantly. Mark walks listeners through how the principal residence exemption works and how it impacted the sale of his rental properties. Then, jumping to a brand new segment on the Rational Reminder Podcast, Ben introduces his financial decision-making iteration of the game of ‘Would you rather’. Finally, we share listener reviews and feedback on previous episodes and debate whether to lease or buy a car in our after-show segment. Tune in now!
Timestamps:
0:00:00 Intro
0:04:26 Main Topic 1: How Much Life Insurance?
0:38:29 Main Topic 2: Principal Residence Exemption
0:51:54 "Would You Rather"
0:55:17 Aftershow
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-
podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — https://x.com/MarkMcGrathCFP
‘How Much Life Insurance Do You Need?’ — linkedin.com/pulse/how-much-life-
insurance-do-you-need-mark-mcgrath-cfp-cim-clu--tjwwe/
InsureRight — insureright.ca
Episode 65: Dr. Wendall Mascarenhas — rationalreminder.ca/podcast/65
Dimensional Fund Advisors — dimensional.com
Money Scope Podcast — moneyscope.ca
Braden Financial Services — bradenfinancialservices.com
Hendry Warren on LinkedIn — linkedin.com/company/hendry-warren-llp
Brady Plunkett on LinkedIn — linkedin.com/in/brady-plunkett-712489105
Capital Gains Calculator for Non-Corporations — https://research-
tools.pwlcapital.com/research/realize-gain
Episode 305 - Is Private Credit Special? — rationalreminder.libsyn.com/episode-305-is-
private-credit-special
Designing a robust portfolio requires considerable expertise, data, and experience. And while there are plenty of published articles that can guide how you build your portfolio, they are not investment solutions by themselves. Wei Dai is the Head of Investment Research and Vice President at Dimensional Fund Advisors, and she joins us today for a comprehensive and informative conversation on portfolio design for higher returns. Her background includes a Doctor of Philosophy degree in Statistics, Operations research, and Financial Engineering from Princeton. She has also earned a bachelor's degree in mathematics and applied mathematics from Zhejiang University. Her work has been published in multiple journals, including The Financial Analysts Journal. She has also collaborated on articles with esteemed figures such as Professor Robert C. Merton and Robert Novy Marx. In our conversation with Wei, we explore the contents of these articles, key findings from research conducted by Dimensional Fund Advisors, and how they are implementing this knowledge in their portfolios. We discuss the fundamental aspects of portfolio design, like expected return, risk, and costs, with Wei providing a detailed breakdown of each subject. There’s a lot to be learned from today’s conversation, and while things get pretty technical, you are in very capable hands! Tune in for a fascinating dive into the latest research on portfolio design and much more.
Timestamps:
0:00:00 Intro
0:04:46 The main risk premiums that Dimensional targets in portfolios
0:06:51 How the magnitudes of the expected size, value, and profitability premiums vary across regions
0:10:27 Some typical approaches to pursuing multiple premiums in a portfolio
0:12:41 The main trade-offs with these different approaches
0:19:54 Some of the ways to approach assigning individual security weights, given a desired level of factor exposure
0:22:43 How Dimensional approaches assigning individual security weights
0:30:42 How investors should decide whether to currency hedge their foreign asset exposures
0:35:13 Why timing exposure to the premiums is so tempting
0:40:31 The timing strategies that worked in Wei's research
0:48:27 The implications of this research when pursuing premiums
0:50:50 The importance of diversification to capturing the premiums
0:56:20 What investors should look for when choosing a systematic manager
1:07:09 How reversals are related to liquidity
1:12:20 How Dimensional uses all of this information in portfolios
1:21:22 Wei defines success in her life
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Wei Dai on Linkedin — linkedin.com/in/wei-dai-64a3071a
Wei Dai’s Academic Papers — papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=2888456
Dimensional Fund Advisors — dimensional.com
Papers From Today’s Episode:
Assessing the Relative Magnitude of Premiums — papers.ssrn.com/sol3/papers.cfm?abstract_id=3981766
Pursuing Multiple Premiums: Combination vs. Integration — papers.ssrn.com/sol3/papers.cfm?abstract_id=3793594
Weighting for the Right One: Weighting Scheme Design for Systematic Equity Portfolios — papers.ssrn.com/sol3/papers.cfm?abstract_id=4016481
To Hedge or Not to Hedge: A Framework for Currency Hedging Decisions in Global Equity & Fixed Income Portfolios — papers.ssrn.com/sol3/papers.cfm?abstract_id=3703333
Another Look at Timing the Equity Premiums — papers.ssrn.com/sol3/papers.cfm?abstract_id=4586684
Premium Timing with Valuation Ratios
How Diversification Impacts Investment Outcomes: A Case Study on Global Large Caps
How Diversification Impacts the Reliability of Outcomes — carlsoncap.com/wp-content/uploads/DFA_-How-Diversification-Impacts-the-Reliability-of-Outcomes.pdf
On the Valuation of Performance Fees and Their Impact on Asset Managers’ Incentives — papers.ssrn.com/sol3/papers.cfm?abstract_id=3686987
Reversals and the returns to liquidity provision — papers.ssrn.com/sol3/papers.cfm?abstract_id=4339591
Webinar May 22nd: Optimal Compensation Strategies for Business Owners — us06web.zoom.us/webinar/register/3317145039436/WN_GYudVJCYSnyF8HfUx9UbJQ
Private credit is one of the fastest-growing asset classes, and today we take a closer look at
why that is, and if it’s really worth the hype. When you invest in private credit, you are
essentially lending money to borrowers who might have difficulty accessing loans elsewhere.
While these assets may be profitable, they can also incur a lot of risk and typically come with
illiquidity. It is traditionally traded among institutional and accredited investors, rather than retail
investors, namely, non-professional investors. Since private credit has gained so much
popularity in recent years, we use today’s conversation to unpack how private credit works, the
role of private credit funds, the associated performance fees and risks, and what retail investors
should know about this asset class before deciding to invest. Our conversation investigates one
of the top reasons for private credit’s rise in popularity, namely risk-adjusted returns, before
evaluating whether this is a worthwhile reason to invest, depending on who you are. Stay tuned
for our after-show section where we discuss the proposed changes to the capital gains tax, why
the death of value could be exaggerated, and more!
0:00:00 Intro
0:02:49 Main Topic: Private Credit
0:38:29 Main Topic 2: Capital Gains Budget Changes Revisited
0:42:46 Aftershow
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — twitter.com/MarkMcGrathCFP
Money Scope Episode 12 — moneyscope.ca/2024/04/19/episode-12-paying-yourself-as-a-canadian-business-owner
Money Scope Episode 13 — moneyscope.ca/2024/04/26/episode-13-optimal-compensation-from-a-ccpc
David Chilton — thewealthybarber.com
David Chilton on X — twitter.com/wealthy_barber?lang=en
Books From Today’s Episode:
The Wealthy Barber: Everyone's Commonsense Guide to Becoming Financially Independent —
amazon.com/Wealthy-Barber-Updated-3rd-Commonsense/dp/0761513116
Papers From Today’s Episode:
‘Direct Lending Returns’ — rpc.cfainstitute.org/en/research/financial-analysts-journal/2023/direct-lending-returns
‘Risk Adjusting the Returns of Private Debt Funds’ — nber.org/papers/w32278
‘An Inconvenient Fact: Private Equity Returns & The Billionaire Factory’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=3623820
‘Reports of Value’s Death May Be Greatly Exaggerated’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=3488748
The Canadian government has recently proposed significant changes to how capital gains are taxed, but how will this impact Canadians? In this episode, we delve into the proposed capital gains tax changes and their impact on financial planning. We unpack the definition of capital gains tax and the complexity of the proposed changes. Explore the historical trends of capital gains tax rates in Canada, how capital gains tax works, and who will be impacted by the proposed changes. We discuss the intricacies of the alternative minimum tax (AMT), its relevance to capital gains tax, and whether the old or new AMT rules apply to the upcoming changes. Gain insights into tax considerations for long-term investment strategies, the importance of tax diversification in mitigating risk, lifetime capital gains exemption, tax planning ramifications, and more! Although this episode is Canadian-focused, it offers many useful takeaways for non-Canadians as well. To gain a comprehensive understanding of the complexities surrounding capital gains tax and strategies to navigate the proposed changes effectively, tune in now!
Timestamps:
0:00:00 Intro
0:03:48 Main Topic: Planning for an Increasing Capital Gains Tax
0:51:26 Aftershow
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-
podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — twitter.com/MarkMcGrathCFP
Capital Gains Calculator — research-tools.pwlcapital.com/research/realize-gain
Episode 224 — rationalreminder.ca/podcast/224
Episode 284 — rationalreminder.ca/podcast/284
Episode 299 — rationalreminder.ca/podcast/299
Episode 302 — rationalreminder.ca/podcast/302
Canadian Medical Association — cma.ca
The Money Scope Podcast — moneyscope.ca
The Most Important Lessons in Investing — youtube.com/watch?v=MOjS2zuQMdo
Dan Solin — danielsolin.com
Compensation Strategies for Canadian Business Owners — pwlcapital.com
compensation-strategies-for-canadian-business-owners2/
Books From Today’s Episode:
The Wealthy Barber — amazon.com/Wealthy-Barber-Updated-3rd-Commonsense
dp/0761513116
What is the role of luck in financial success? And how can we make decisions that will put us in the best possible position to experience long-term prosperity? Joining us today to unpack these questions is Scott Galloway, a talented public speaker, author, entrepreneur, and professor of marketing at NYU Stern School of Business. His latest book, The Algebra of Wealth: A Simple Formula for Financial Security, explores key lessons to help you optimize your life for wealth and success. He is the host of a thrice-weekly podcast, The Prof G Pod, and co-hosts a podcast called Pivot with esteemed tech journalist, Kara Swisher. Scott also has a very popular blog called No Mercy / No Malice, where he shares his thoughts on wealth, business, psychology, and more. In today’s conversation with Scott, we delve into the lessons he’s learned about economic success and the contents of his new book, The Algebra of Wealth. Tuning in you’ll learn how the economic stress he experienced as a child shaped his life, the important role that luck plays in financial success, and why he believes people should follow their talents rather than their passions. Scott goes on to expand on why diversification is essential for financial success before sharing key lessons from the various businesses he has started, built, and sold. We also discuss how he manages his financial worries, his hopes for his children, and how he defines success. Tune in to hear all of Scott’s valuable insights as we take a deep dive into the forces that shape our economic outcomes, and the algebra of wealth!
Timestamps:
0:00:00 Intro
0:04:07 How economic stress when Scott was growing up shaped his life
0:06:14 Scott defiines the algebra of wealth
0:11:40 Why the pursuit of wealth is a whole person project
0:14:55 What people can do to defend against modern temptations
0:21:06 How working hard is different from having character
0:27:13 How Scott's awareness of his own luck impacted his financial decision-making
0:33:32 How Scott thinks about “enough”, when we are programmed for more
0:39:14 Why people should follow their talent, rather than their passion
0:45:39 How important physical exercise is to financial success
0:49:08 The role Scott sees for professional financial planners
0:55:28 How people should think about opportunities to invest in private businesses
0:57:57 How people should respond when everyone else is excited about an investment
1:02:00 The most beneficial ways to trade money for time
1:08:27 Scott's greatest worries, financially speaking, about his kids
1:10:31 Scott Defines Success in His Life
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Scott Galloway — profgmedia.com
Scott Galloway Books — profgmedia.com/books
Scott Galloway on LinkedIn — linkedin.com/in/profgalloway
Scott Galloway on Twitter — twitter.com/profgalloway
No Mercy No Malice — profgalloway.com
Pivot with Scott Galloway and Kara Swisher — profgmedia.com/pivot
The Prof G Pod with Scott Galloway — profgmedia.com/the-pod
Books From Today’s Episode:
The Algebra of Wealth: A Simple Formula for Financial Security — amazon.com/Algebra-Wealth-Formula-Financial-Security/dp/0593714024
With a wealth of experience as a market theoretician and a prolific contributor to financial discourse, today’s guest is uniquely positioned to guide us through the complexities of index fund dynamics. Joining us to discuss the problems that passive investing may be causing in financial markets (and what people should do about it) is Michael Green, Chief Strategist and Portfolio Manager for Simplify Asset Management. Tuning in, you’ll learn about the ramifications of the surging popularity of indexing and the sobering reality of mounting market inelasticity, backed by compelling evidence that underscores the challenges facing today's financial landscape. The insights in this episode extend beyond mere observation, with Mike offering policy recommendations and strategies to address the structural issues affecting our markets. While this conversation is certainly challenging, philosophical, and even alarming, it isn't purely theoretical. It’s a call to action to safeguard the integrity of our financial systems. So, be sure to join us as we navigate the nuances of indexing and passive investing at large, guided by the expertise and foresight of one of finance's most respected voices!
Timestamps:
0:00:00 Intro
0:06:49 The effect the growth of indexing has on markets
0:08:46 The XIV trade that strengthened your belief in this view
0:15:29 Beyond the XIV trade, the evidence we have that indicates this is a problem
0:19:07 How we know that index funds have less elastic demand than the counterfactual security holders in the absence of index funds
0:21:37 Why flows into a cap weighted index fund are different from flows into the aggregate of active, which holds the market
0:31:54 How much of an issue this is in markets outside of the US
0:33:46 How systematic firms like Dimensional and Avantis, that tilt away from cap weights, fit into these dynamics
0:40:55 How the issue created by index fund ownership is distinct from market efficiency
0:46:55 How investors should change their strategy in response to the current market structure
0:53:54 As a portfolio manager, how Mike incorporates his views on passive into investment strategies
0:59:20 Whose responsibility it is to fix these market structure problems
1:05:39 Separate from the index fund effects, what Mike's outlook on US equity expected returns is
1:09:04 Why Bitcoin isn’t the solution to all monetary and fiscal policy problems
1:12:50 Mike Defines Success in His Life
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
‘Yes, I give a fig… Thoughts on markets from Michael Green’ — yesigiveafig.com
Michael Green on Substack — substack.com/@michaelwgreen
Michael Green on LinkedIn — linkedin.com/in/michael-green-9a15142
Michael Green on X — twitter.com/profplum99
Books From Today’s Episode:
The Black Swan — amazon.com/dp/081297381X
Adaptive Markets — amazon.com/dp/0691135142
Papers From Today’s Episode:
‘How Competitive is the Stock Market? Theory, Evidence from Portfolios, and Implications for the Rise of Passive Investing’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=3821263
‘How Competitive is the Stock Market?’ Slides — drive.google.com/file/d/1QTxuFI7eK_RJwaV3ncAjX41pEb1anLeM/view
‘Do Active Funds Do Better in What They Trade?’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=4624934
‘The Passive-Ownership Share Is Double What You Think It Is’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=4188052
‘The Arithmetic of Active Management’ — jstor.org/stable/4479386
‘Sharpening the Arithmetic of Active Management’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=2849071
‘Long Volatility, Asymmetric Alpha, Negatively Correlated Alpha, Convex Crisis Alpha’ Slides — macrovoices.com/guest-content/list-guest-publications/3860-logica-capital-active-to-passive-for-macrovoices/file
‘The Greatest Story Ever Sold: The Impact of Passive Investment on Markets’ Slides — utahfpa.org/images/downloads/Library_Documents/market_policy_presentation.pdf
‘The Inelastic Markets Hypothesis’ — nber.org/papers/w28967
Today, we welcome back Prof. Meir Statman to talk about the role of finances in well-being. We investigate the role of finances in well-being with Prof. Meir Statman through the lens of his new book, A Wealth of Well-Being. Discover why wealth advisors must evolve into well-being advisors and uncover the impact of finances on various life domains. From dating to education, we discuss the profound financial correlations shaping happiness and well-being. Tune in now!
Timestamps:
0:00:00 Intro
0:00:30 How life well-being fits into the study of behavioral finance
0:06:10 The role do finances play in life well-being
0:11:02 The role do Meir sees for financial advisors in improving their clients’ life well-being
0:16:28 The importance to life well-being that someone’s financial capital is relative to the people around them
0:19:53 How the gap between what we have and what we aspire to have affects life well-being
0:22:32 Whether too much self-control can impact life well-being
0:26:17 How finances affect dating and marriage
0:29:11 The role work plays in well-being
0:31:40 The effect education has on life well-being
0:39:22 How religion affects life well-being
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Prof. Meir Statman — https://www.scu.edu/business/finance/faculty/statman/
Prof. Meir Statman on X — twitter.com/meirstatman
Episode 258: Prof. Meir Statman — rationalreminder.ca/podcast/258
Books From Today’s Episode:
A Wealth of Well-Being — amazon.com/Wealth-Well-Being-Holistic-Approach-
Behavioral/dp/1394249675
In this episode, we delve into the best time to claim your Canada Pension Plan (CPP) benefits. Although the focus of this episode is on Canada, there will be many relevant and valuable insights for our non-Canadian listeners. In our conversation, we discuss the importance of understanding the intricacies of CPP benefits, the fundamentals, and how individuals can optimize their retirement income by making informed decisions. Explore the importance of understanding when to claim CPP benefits, how much future financial security a CPP offers, and why the CPP is one of the most valuable retirement assets for most Canadians. Gain insights into how wage growth ties into CPP benefits, the exceptions to deferring a CPP claim, and what made 2022 different regarding CPP claims. Join us as we uncover the nuances of CPP benefits!
Timestamps:
0:00:00 Intro
0:04:23 Main Topic: When should you claim CPP benefits?
0:55:49 Aftershow
Links From Today’s Episode
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — twitter.com/MarkMcGrathCFP
When Should You Start CPP? — youtube.com/watch?v=r9vYji99fhk
The Canadian Institute of Actuaries (CIA) — cia-ica.ca
Society of Actuaries (SOA) — soa.org
FP Canada — fpcanada.ca
When Should You Start CPP? — youtube.com/watch?v=r9vYji99fhk
CE Drive with Jason Watt — cedrive.podbean.com
Episode 137: David Blanchett: Researching Retirement — rationalreminder.ca/podcast
137
Episode 254: David Blanchett: Regret Optimized Portfolios and Optimal Retirement Income —
rationalreminder.ca/podcast/254
Episode 289 - Retiring Retirement Income Myths with the Retirement Income Dream Team —
rationalreminder.ca/podcast/289
Jason Yi on LinkedIn — linkedin.com/in/jason-yi-cpa-ca-56544446
Episode 225: The Index Fund "Tipping Point” — rationalreminder.ca/podcast/225
Books From Today’s Episode:
Wealthier — wealthierbook.com
The Algebra of Wealth — amazon.com/Algebra-Wealth-Formula-Financial-Security
dp/0593714024
Sleep Well, Take Risks, Squish the Peas — amazon.com/Sleep-Well-Take-Risks-
Squish/dp/0757324711/
Papers From Today’s Episode:
‘The CPP Take-Up Decision: Risks and Opportunities’ — soa.org/4a223f
globalassets/assets/files/resources/research-report/2020/2020-cpp-take-up-decision.pdf
‘Get the Most from the Canada & Quebec Pension Plans by Delaying Benefits’ — https://
www.fpcanadaresearchfoundation.ca/media/5fpda5zw/cpp_qpp-reseach-paper.pdf
‘Financial Advisor Compensation Structure and Client Equity Allocations’ — https://
www.tandfonline.com/doi/full/10.1080/15427560.2023.2294812
In this episode, we are joined by renowned expert Abby Sussman to unpack how individuals form judgments and make decisions about their finances. Abby is a distinguished professor of marketing at the University of Chicago Booth School of Business whose expertise lies at the intersection of psychology, economics, and finance. In our conversation, we discuss the nuances of financial decision-making and how personal beliefs influence our financial choices. Discover the source of reference points for financial well-being and how expense prediction biases play a role in making poor financial decisions. We explore the effectiveness of budgeting, the nuances of product sensitivity, and the drivers of excessive consumer consumption. Gain insights into navigating the complexities of financial decision-making, the psychology behind it, how AI can help you make better financial decisions, and much more. Tune in to gain a deeper understanding of the psychology behind financial decisions and uncover strategies to optimize your financial future with Abby Sussman!
Timestamps:
0:00:00 Intro
0:05:13 How the way people evaluate their own wealth differs from how they evaluate the wealth of others
0:07:24 Whether having complete information about the other person’s balance sheet resolves the differences in perception
0:10:57 The effect this difference has on how people plan for the future
0:15:09 How someone’s beliefs about their future wealth affect their financial decisions
0:21:47 How people can use this information to make better financial decisions
0:24:09 The problems that stem from inaccurate expense prediction
0:33:45 The interventions that can be used to reduce expense prediction bias
0:38:50 How common budgeting is in general
0:44:24 How frequently people reconcile their actual spending with their budgets
0:48:42 How people respond to having too much or too little slack in their budgets
0:52:48 How attitudes toward debt and investment products vary across consumers
0:59:39 The areas of consumer financial decision making research Abigail thinks will be most impactful in the future
1:07:38 Abigail Defines Success in Her Life
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-
podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Abby Sussman on LinkedIn — linkedin.com/in/abigail-sussman-ab4427
Abby Sussman on X — twitter.com/abbysussman
The University of Chicago Booth School of Business — https://www.chicagobooth.edu/
Society for Judgment and Decision Making — sjdm.org
Episode 153: Prof. Johanna Peetz — rationalreminder.ca/podcast/153
Epidose 296: Adam Alter — rationalreminder.ca/podcast/296
Panel Study of Income Dynamics — https://psidonline.isr.umich.edu/
Consumer Financial Protection Bureau — consumerfinance.gov
Papers From Today’s Episode:
‘Understanding and Neutralizing the Expense Prediction Bias: The Role of Accessibility,
Typicality, and Skewness’ — doi.org/10.1177/00222437211068025
‘The Exception Is the Rule: Underestimating and Overspending on Exceptional
Expenses’ — doi.org/10.1086/665833
‘The Role of Risk Preferences in Responses to Messaging About COVID-19 Vaccine Take-Up’
— doi.org/10.1177/1948550621999622
‘The Role of Mental Accounting in Household Spending and Investing Decisions’ — https://
papers.ssrn.com/sol3/papers.cfm?abstract_id=3051415
‘How Consumers Budget” — doi.org/10.1016/j.jebo.2022.09.025
‘Financial Product Sensitivity Predicts Financial Health’ — doi.org/10.1002/bdm.2142
Join us as we celebrate a monumental milestone - Episode 300! 🎉 What an incredible journey it has been. With nearly six years under our belt, each episode has been a testament to our amazing listeners' unwavering support. From our humble beginnings to this remarkable milestone, we extend our deepest gratitude to all who have tuned in, shared their feedback, and made this journey unforgettable. Here's to the next chapter and countless more memorable moments ahead. Thank you for being a part of our story!
In this episode, we unpack key tenants of investing and the quality of financial advice in Canada's banking industry. In our conversation, we present a list of lessons we have learned about investing, which has been consolidated from contributions by the Twitter community and the Rational Reminder Community. In our conversation, we discuss ways to beat the market, how narratives can impact the economy, and why timing the market is a bad investment approach. Discover why performance chasing is not a successful strategy, why incentives matter, and why economic growth is a poor predictor of investment success. Learn about the nuanced relationship between expected economic growth and stock returns, why wealth does not give you access to market-beating investments, and the effectiveness of investing in low-cost total market index funds. Finally, in our after-show segment, we delve into the quality of fifinancial advice provided by Canada's six big banks, investment strategies, listener reviews, and much more. Gain valuable insights into navigating the complexities of investing and learn why simplicity, discipline, and skepticism towards overly complex or costly strategies are vital for financial success. Tune in now!
Book a meeting with a PWL Financial Planner — calendly.com/d/3vm-t2j-h3p
Timestamps:
0:00:00 Intro
0:04:26 Main Topic: The Most Important Lessons in Investing
0:05:33 #1: You're not That Smart Relative to the Market
0:08:45 #2: This Time is Always Different
0:12:09 #3: The Market is Forward-Looking
0:13:55 #4: Market Forecasts are not Useful
0:15:34 #5: Time in the Market Beats Timing the Market
0:18:06 #6: Most Funds do not Beat the Market
0:21:39 #7: Incentives Matter
0:28:06 #8: Expected Economic Growth and Stock Returns are not Related
0:30:41 #9: Good Portfolio Management does not Make up for Bad Financial Planning
0:34:24 #10: Risk and Expected Returns are Positively Related
0:36:17 #11: The Risk-Expected Return Trade-Off has a Term Structure
0:39:07 #12: Fees and Taxes Matter
0:45:21 #13: Complexity and Costs are Positively Related
0:47:19 #14: There is no Single Optimal Investment Strategy
0:50:44 #15: The Best Investment Strategy for You is the One that You can Stick With
0:52:56 #16: There is no Such Thing as a "Passive" Investment
0:57:49 #17: Wealth does not Give You Access to Market-Beating Investments
1:00:29 #18: Diversification is the Only Free Lunch in Investing
1:07:11 #19: Investments Should Be Evaluated on Process, not Outcome
1:09:27 #20: Investing has been Solved
1:11:21 Aftershow
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — twitter.com/MarkMcGrathCFP
The Economist — economist.com
ARK Invest — ark-funds.com
The Canadian Investor Podcast — thecanadianinvestorpodcast.com
Episode 257: Giorgio Ugazio (Mr. RIP) — rationalreminder.ca/podcast/257
Mr. RIP on YouTube — youtube.com/@mr_rip
The Money Scope Podcast: Episode 9 — moneyscope.ca/2024/03/15/episode-9-taxable- investing-in-canada/
Books From Today’s Episode:
A Wealth of Well-Being — amazon.com/Wealth-Well-Being-Holistic-Approach-
Behavioral/dp/1394249675
Wealthier — wealthierbook.com
Papers From Today’s Episode:
‘Where’s the Beef?’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=4035890
‘SPIVA® Canada Scorecard’ — spglobal.com/spdji/en/documents/spiva/spiva-
canada-year-end-2023.pdf
Dr. Randall Stutman is an author, highly sought-after speaker, and executive leadership coach to some of the world’s most exceptional CEOs, billionaires, and hedge fund managers. As the founder of the Admired Leadership Institute, he is widely recognized as a world-class authority on leadership strategy and style. Today, Dr. Stutman joins us to discuss the behaviours and skills that make admired leaders and how you can translate those characteristics and strategies into your financial decision-making process. Tuning in, you’ll learn about the importance of followership, find out why admired leadership is so rare, and hear some practical advice to help you make better decisions. We also discuss why you should actually disagree with your clients more often, why relationships are the cornerstone of any business, questions to ask yourself to find the right client or financial advisor, and much more. Don’t miss this fascinating and broad- reaching conversation on leadership and decision-making with specific applications for financial advice relationships!
Timestamps:
0:00:00 Intro
0:04:05 The Typical Approach to Leadership Development
0:06:27 Why the Typical Approach does Real Damage
0:11:47 How Everyone in an Organization can be an Admired Leader
0:18:18 How Consensus Decision Making can Hurt an Organization
0:26:07 Other Shortcomings in the Decision Process
0:31:13 How a Financial Advisor Should Act like an Admired Leader
0:38:54 The Traits of an Admired Leader Should a Financial Consumer Bring to the Relationship with their Advisor
0:43:17 The Best Way to Deliver Feedback in an Advisory Relationship
0:46:42 How Often an Advisor Should Connect With a Client to Effectively Build a Relationship
0:52:17 How Randall Would Motivate Kids to get Involved in the Financial Decision Making Process
0:59:37 Whether or not Most People are Self-Motivated
1:05:14 Randall Defines Success in His Life
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Admired Leadership Institute — admiredleadership.com
Episode 238: Prof. Ralph Keeney — rationalreminder.ca/podcast/238
Books From Today’s Episode:
Working Through Conflict: Strategies for Relationships, Groups, and Organizations — https://
www.amazon.com/dp/0367461471
Communication in Legal Advocacy (Studies in Communication Process) — https://
www.amazon.com/dp/B09T21F8KX
As human beings, our brains are wired to solve problems. This can make long-term investment
strategies, like passive investing, surprisingly challenging, especially if you’re not accustomed to
the ups and downs of the market – it can feel pretty unintuitive to stay the course when your
instinct is to take more active steps to solve the problem! So, how can investors remain firm in
their strategy and not get spooked by market changes? Joining us today to unpack this question
is financial journalist, Nicolas Bérubé, whose new book From Zero to Millionaire: A Simple and
Stress-Free Way to Invest in the Stock Market serves as a guide to investors on how to grow
their wealth and achieve good portfolio diversification at a low cost. We talk with him about the
contents of his book, his observations on financial media and its effect on investors, how to stay
committed when making long-term investments, and more. We also spend the top half of the
show discussing a popular idea we’ve seen posted by influencers online, namely that investing
in stocks will give you a return of 10% or more per year on average, and the flaws in their
arguments. Tune in for a deep dive into investor psychology, financial media, and much more!
Timestamps:
0:00:00 Intro
0:01:48 Main Planning Topic: Do Stocks Return 10% on Average?
0:38:23 Special Guest: Nicholas Berube
1:09:55 Aftershow
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-
podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — twitter.com/MarkMcGrathCFP
24 in 24 Reading Challenge — rationalreminder.ca/24in24
Nicolas Bérubé on LinkedIn — linkedin.com/in/nicolas-
b%C3%A9rub%C3%A9-27b9b111b/
From Zero to Millionaire — fromzerotomillionaire.com
The Motley Fool — fool.com
Rob Carrick — theglobeandmail.com/authors/rob-carrick
Andrew Hallam — andrewhallam.com
Somebody Feed Phil — imdb.com/title/tt7752034
Everybody Loves Raymond — imdb.com/title/tt0115167
Shake Shack — shakeshack.com/#
Figure 01 AI Robot Video on LinkedIn — linkedin.com/feed/update
urn:li:activity:7173681028664901634/
Books From Today’s Episode:
From Zero to Millionaire: A Simple and Stress-Free Way to Invest in the Stock Market — https://
fromzerotomillionaire.com
The Algebra of Wealth: A Simple Formula for Financial Security — amazon.com
Algebra-Wealth-Formula-Financial-Security/dp/0593714024
A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing — https://
www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393358380
Everyone Believes It; Most Will Be Wrong: Motley Thoughts on Investing and the Economy —
amazon.com/Everyone-Believes-Most-Will-Wrong-ebook/dp/B00655BGBG
The One-Page Financial Plan: A Simple Way to Be Smart About Your Money — https://
www.amazon.com/One-Page-Financial-Plan-Simple-Smart/dp/1591847559
Setting the Table: The Transforming Power of Hospitality in Business — https://
www.amazon.com/Setting-Table-Transforming-Hospitality-Business/dp/0060742763
Papers From Today’s Episode:
‘The Equity Premium’ — onlinelibrary.wiley.com/doi/full/10.1111/1540-6261.00437
Scott Cederburg research: ‘Long-Horizon Losses in Stocks, Bonds, and Bills: Evidence
from a Broad Sample of Developed Markets’ — https://www.paris-december.eu/sites/
default/files//papers/2023/4393_scederburg_2023_complete.pdf
Jules H. Van Binsbergen Paper: Is The United States A Lucky Survivor: A Hierarchical
Bayesian Approach — https://rodneywhitecenter.wharton.upenn.edu/wp-content/uploads/
2020/12/30-20.Wachter.VanBinsbergen.pdf
Timestamps:
0:00:00 Intro
0:03:47 What it means to be stuck
0:06:27 What being financially stuck looks like
0:12:12 Whether or not people can be stuck in their general well-being
0:14:12 Why people tend to question their lives on the arrival of a new decade
0:21:02 Adam explains what "Lifequakes" are
0:27:18 How one can prepare for the inevitable lifequakes we will have in our lives
0:31:56 How creativity affects a breakthrough
0:37:35 The role that luck plays in breakthroughs
0:43:05 The practical difference between striving for excellence and perfection
0:50:18 The risks of being incapable of reaching the pinnacle of your own definition of success
0:55:44 How individuals should process the successes of other people
0:58:25 Dan defines success in his life
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Adam Alter — adamalterauthor.com
Adam Alter on LinkedIn — linkedin.com/in/adamleealter
Adam Alter on Twitter — twitter.com/adamleealter
Hal Hershfield — halhershfield.com
Bruce Feiler — brucefeiler.com
Books From Today’s Episode:
Anatomy of a Breakthrough — adamalterauthor.com/anatomy
Irresistible — adamalterauthor.com/irresistible
Drunk Tank Pink — adamalterauthor.com/drunk-tank-pink
In this episode, we explore the intricate world of home-country bias in investment decision-making and learn the secret sauce to effective communication and writing. We start by discussing the definition and influence of home-country bias and explore why investors tend to overweight their portfolios with domestic equities despite global opportunities. We dissect the home bias puzzle, the rationality behind bias, and the conditions under which home-country bias makes sense. Then, Mark McGrath joins us to unpack the complexities of segregated funds and why it might not be the investment product you were hoping for. Following that, we sit down with Todd Rogers, a prominent behavioural scientist and professor, to discover the science behind effective communication. He explains how we adapt to different communication styles and techniques over time, the foundations of effective communication, and much more. Be sure to tune in as we unravel the complexities of investing, navigate the world of behavioural science, and bring you the tools you need for financial success!
Timestamps:
0:00:00 Intro
0:01:38 Main Topic: Home Country Bias
0:14:48 Eugene Fama Clip
0:15:14 Main Topic Continued
0:31:25 Mark to Market
0:53:37 Episode 206: 60 Seconds
0:54:24 Special Guest: Todd Rogers
1:32:18 Aftershow
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — twitter.com/MarkMcGrathCFP
Home-country Bias YouTube Video — youtube.com/watch?v=qYedjI03Q0g
Assuris — assuris.ca
Canadian Investor Protection Fund — cipf.ca
The Money Scope Podcast — moneyscope.ca
Professor Vanessa Bohns — vanessabohns.com
Professor Vanessa Bohns on X — twitter.com/profbohns
Professor Vanessa Bohns on Instagram — instagram.com/profbohns
Professor Vanessa Bohns on LinkedIn — linkedin.com/in/vanessa-bohns-33219710
Professor Vanessa Bohns on Goodreads — goodreads.com/author/show/21035835.Vanessa_Bohns
Todd Rogers on LinkedIn — linkedin.com/in/todd-rogers-6ba447
Todd Rogers on X — twitter.com/Todd_Rogers_
Harvard University — https://www.harvard.edu/
Analyst Institute — analystinstitute.org
EveryDay Labs — everydaylabs.com
The Behavioural Insights Team — https://www.bi.team/
Behavioral Science & Policy Association (BSPA) — behavioralpolicy.org
Six Principles Checklist —
GPT-4 — openai.com/research/gpt-4
Women's Wealth: Investing Basics for Women Webinar — us06web.zoom.us/webinar/register/8217079363034/WN_aVV7ElsLS6aVGd-cpBHw3A
Books From Today’s Episode:
You Have More Influence Than You Think — amazon.com/dp/1324005718
Writing for Busy Readers — amazon.com/Writing-Busy-Readers-Communicate-Effectively/dp/0593187482
Index Funds: The 12-Step Recovery Program for Active Investors — amazon.com/Index-Funds-12-Step-Recovery-Investors-ebook/dp/B0CL2Z23CT
The Elements of Style — amazon.com/Elements-Style-Fourth-William-Strunk/dp/020530902X
The Psychology of Money — amazon.com/Psychology-Money-Timeless-lessons-happiness/dp/0857197681
The Fund — amazon.com/Fund-Bridgewater-Associates-Unraveling-Street/dp/1250276934
Anatomy of a Breakthrough — amazon.com/Anatomy-Breakthrough-Unstuck-When-Matters/dp/1982182962
The Score That Matters — amazon.com/Score-That-Matters-Excellence-Yourself-ebook/dp/B0CGZ8HRXD
The Algebra of Wealth — amazon.com/Algebra-Wealth-Formula-Financial-Security/dp/0593714024
Papers From Today’s Episode:
‘Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice’ — dx.doi.org/10.2139/ssrn.4590406
‘Global equity investing: The benefits of diversification and sizing your allocation’ — corporate.vanguard.com/content/dam/corp/research/pdf/Global-equity-investing-The-benefits-of-diversification-and-sizing-your-allocation-US-ISGGEB_042021_Online.pdf
In this episode, we delve into the world of mindfulness and meditation with renowned author and meditation advocate, Dan Harris. In our conversation, Dan shares his personal journey from a high-stress career in the news to discovering the transformative power of mindfulness meditation. We explore Dan's best-selling book, 10% Happier which chronicles his exploration into mindfulness practices after experiencing a panic attack on live television. We discuss how Dan's quest for inner peace led him to explore meditation, the core principles of Dan's 10% Happier philosophy, and how mindfulness can lead to incremental but significant improvements in happiness. Discover why Buddhism is a religion that skeptics can line up behind, the intersection of mindfulness and financial decision-making, and the importance of empathy and self-awareness for financial advisors. Gain insights into applying mindfulness principles to everyday life, strategies for building the skill of happiness, the basic steps to start meditating, and much more! Join us on this insightful journey as we explore how mindfulness can truly transform lives and empower individuals to live with greater purpose, happiness, and fulfillment with Dan Harris!
Timestamps:
0:00:00 Intro
0:05:55 Dan talks about his journey as a journalist, through self-help then to meditation
0:08:05 Dan describes the practice of meditation
0:12:08 The science to back up claims of meditation
0:18:51 Dan describes his difficulty in gaining an appreciation of meditation
0:28:00 How one could start the practice of meditation
0:32:20 How meditation can help people avoid spending their time and money today, at the expense of their future
0:32:18 Based on discussions with current and former employees, Rob describes the experience of working at Bridgewater
0:37:19 How meditational has influenced Dan's financial decision-making
0:43:59 How much agency people have to affect their own personal happiness
0:50:46 What led Dan to leave ABC news and dedicate himself to 10% Happier
0:54:34 The podcast guests that had the biggest impact on Dan
1:00:15 Dan defines success in his life
Links From Today’s Episode:
Dan Harris — danbharris.komi.io
Dan Harris on X — twitter.com/danbharris
Dan Harris on Instagram — instagram.com/danharris
Dan Harris on Facebook — facebook.com/DanHarrisABC
Dan Harris on YouTube — youtube.com/c/TenPercentHappier
Dan Harris on TikTok — tiktok.com/@danbharris
10% Happier — tenpercent.com
10% Happier — goodreads.com/en/book/show/18505796
‘Finding and Funding a Good Life’ — pwlcapital.com/finding-and-funding-a-good-life
Ten Percent Happier Podcast — tenpercent.com/podcast
Dan Harris: Celebrating 10 Years of 10% Happier — symphonyspace.org/events/vp-dan-harris-10-happier-10-year-anniversary
Emma Seppälä — emmaseppala.com
Dalai Lama — dalailama.com
Joseph Goldstein — dharma.org/teacher/joseph-goldstein
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Timestamps:
0:00:00 Intro
0:04:58 Special Guest: Eric Balchunas
0:05:15 Why Canada was so far ahead of the US on launching a spot Bitcoin ETF
0:09:18 Whether anything actually changed in ETF regulations to allow a spot Bitcoin ETF
0:14:46 Whether spot Bitcoin ETF units are actually backed by Bitcoin
0:22:57 How authorized participants deal with AML considerations when they transact in Bitcoin
0:26:39 What the magnitude of net flows into Bitcoin ETFs has looked like
0:37:07 What being allowed in an ETF wrapper does for Bitcoin
0:44:11 Who will benefit the most from spot Bitcoin ETFs
0:51:30 What Eric thinks about Vanguard’s decision not to allow spot Bitcoin ETFs on the platform
0:55:42 How we will see financial advisors use spot Bitcoin ETFs in clients’ portfolios
Links From Today’s Episode:
The Bogle Effect — amazon.com/Bogle-Effect-Vanguard-Investors-Trillions/dp/1637740719
Eric Balchunas on LinkedIn — linkedin.com/in/ericbalchunas
Eric Balchunas on X — twitter.com/EricBalchunas
Bloomberg — bloomberg.com
Trillions Podcast — bloomberg.com/podcasts/series/trillions
U.S. Securities and Exchange Commission — sec.gov
Bitwise — bitwiseinvestments.com
Bitwise Bitcoin ETF — sec.gov/Archives/edgar/data/1763415/000199937124000346/bitcoin-424b3_011024.htm
Coinbase — coinbase.com
BlackRock — blackrock.com
Grayscale Bitcoin Trust ETF (GBTC) — etfs.grayscale.com/gbtc
Vanguard — investor.vanguard.com
Bitcoin — bitcoin.org
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Timestamps:
0:00:00 Intro
0:07:47 How much of the Bridgewater organization is dedicated to investment management
0:10:36 How Dalio’s model of economic cycles affects Bridgewater’s investment approach
0:14:17 How successful Dalio has been at predicting market crashes
0:16:54 The role have actual investment results played in Bridgewater’s success
0:18:45 Dalio’s Principles
0:23:05 How important the Principles are to Bridgewater’s success
0:38:43 What the dot collector app at Bridgewater does
0:32:18 Based on discussions with current and former employees, Rob describes the experience of working at Bridgewater
0:35:56 The actions Dalio has taken to create his public-facing image
0:42:35 How Dalio explains his own success
0:44:28 What the response to the book from readers has been
0:46:32 What explains Bridgewater's success
0:52:06 What main message Rob hopes people take away from reading his book
Links From Today’s Episode:
Rob Copeland on LinkedIn — linkedin.com/in/real-rob-copeland
Rob Copeland on X — twitter.com/realrobcopeland
The New York Times — nytimes.com
The Fund — static.macmillan.com/static/smp/the-fund
Bridgewater Associates — bridgewater.com
Principles — amazon.com/Principles-Life-Work-Ray-Dalio/dp/1501124021
Doom: The Politics of Catastrophe — amazon.com/Doom-Politics-Catastrophe-Niall-Ferguson/dp/0593297377
The Dot Collector — principles.com/principles/3290232e-6bca-4585-a4f6-66874aefce30
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Timestamps:
0:00:00 Intro
0:04:52 Main Topic: Quant Winter
0:06:19 Special Guest: Robin Wigglesworth
0:48:23 Mark to Market
1:13:10 Episode 59: 60 Seconds
1:15:05 Aftershow
Links From Today’s Episode:
Robin Wigglesworth — robinwigglesworth.com
Robin Wigglesworth on LinkedIn — linkedin.com/in/robin-wigglesworth-17101722
Financial Times — ft.com
Trillions: How a Band of Wall Street Renegades Invented the Index Fund and Changed Finance Forever — amazon.com/Trillions-Renegades-Invented-Changed-Finance/dp/0593087682
‘Quant Winter's Tale’ — ft.com/content/e0f98278-432e-4ece-b170-2c40e40d2835
Episode 184: Robin Wigglesworth — rationalreminder.ca/podcast/184
Episode 93: Cliff Asness from AQR — rationalreminder.ca/podcast/93
Cliff Asness — aqr.com/About-Us/OurFirm/Cliff-Asness-Bio
AQR — aqr.com
Two Sigma — twosigma.com
D.E Shaw — deshaw.com
CPP Investments — cppinvestments.com
StatsCan — statcan.gc.ca/en/start
Financial Planning for Canadian Business Owners Episode 116: True Cost of CPP with Aravind Sithamparapillai — jasonpereira.ca/all-content-jason-pereira-toronto/true-cost-of-cpp-with-aravind-sithamparapillai-e116
Episode 59: Alexandra Macqueen — rationalreminder.ca/podcast/59
Pensionize Your Nest Egg — amazon.com/Pensionize-Your-Nest-Egg-Allocation/dp/1119025257
Griselda Blanco — imdb.com/title/tt15837600
Cocaine Cowboys — imdb.com/title/tt0380268
Queen of the South — imdb.com/title/tt1064899
Fortune's Children: The Fall of the House of Vanderbilt — amazon.com/Fortunes-Children-Fall-House-Vanderbilt/dp/0062224069
Farnam Street — https://fs.blog/
24 in 24 Reading Challenge — rationalreminder.ca/24in24
The Money Scope Podcast — moneyscope.ca
The Money Scope Podcast on YouTube — youtube.com/@moneyscopepod
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — twitter.com/MarkMcGrathCFP
Timestamps:
0:00:00 Intro
0:03:56 Why it is important for people to understand the things that never change
0:06:34 How important random, seemingly inconsequential events are to the way that the future unfolds
0:14:08 How Morgan has thought about the goalposts moving as his financial situation has changed
0:18:21 The problems that stem from the desire that people have for certainty
0:21:03 How important stories are to the way that we understand the world
0:27:50 Why things that can’t be measured are important to how we think about the future
0:33:30 Why success plants the seeds of its own decline
0:37:14 Why investors try to squeeze too much return too soon out of their investments
0:45:52 Whether or not eliminating stress and adversity from life is a good objective
0:50:40 How much hassle and nonsense people should be prepared to deal with on the path to success
0:54:49 How should use optimism and pessimism to inform their long-term decisions
1:00:37 Why people often think that the grass is greener in other peoples’ lives or businesses
1:08:05 How personal experience shapes how people see the world
1:12:45 The most important lesson Morgan learned from writing his book
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Morgan Housel — morganhousel.com
Morgan Housel on LinkedIn— linkedin.com/in/morgan-housel-5b473821
Morgan Housel on X — twitter.com/morganhousel
Morgan Housel on Instagram — instagram.com/morganhousel
The Morgan Housel Podcast — podcasts.apple.com/us/podcast/the-morgan-housel-podcast/id1675310669
Collaborative Fund — collabfund.com
Collab Blog — collabfund.com/blog
Episode 128: Morgan Housel — rationalreminder.ca/podcast/128
Episode 191: Emerging Markets — rationalreminder.ca/podcast/191
Episode 224: Scott Cederburg — rationalreminder.ca/podcast/224
Books From Today’s Episode:
Sapiens — amazon.com/Sapiens-Humankind-Yuval-Noah-Harari/dp/0062316095
Seinfeldia — amazon.com/Seinfeldia-About-Nothing-Changed-Everything/dp/1476756112
The Snowball — amazon.com/Snowball-Warren-Buffett-Business-Life/dp/0553384619
Same as Ever — amazon.com/Same-Ever-Guide-Never-Changes/dp/0593332709
The Psychology of Money — amazon.com/Psychology-Money-Timeless-lessons-happiness/dp/0857197681
Does the 4% rule still work? In this episode, we welcome three esteemed experts to counter a recent controversial claim made on the Dave Ramsey Show regarding the validity of the 4% rule in retirement planning. Joining us is David Blanchett; the Managing Director and Head of Retirement Research for PGIM DC Solutions, Michael Finke; a distinguished professor of wealth management at the American College of Financial Services, and Wade Pfau; Director of Retirement Research at McLean Asset Management. In our conversation, these experts shed light on the intricate world of retirement income planning, dispelling misconceptions and advocating for a more nuanced approach. Discover the flaws in Ramsey's assertion and explore the dynamics of sequence of return risk in retirement planning. Unpack the complexities of investing in bonds for retirees and the evolving risk profiles of stocks over varying investment horizons. We also uncover the significance of variable spending rates, debunk the fallacies behind aggressive withdrawal suggestions, a safety-first approach in retirement finance, and much more. Tune in for an enlightening journey through retirement planning and equip yourself with expert insights to pave a secure path for your financial future!
RISA Profiler: risaprofile.com/rationalreminder
Timestamps:
0:00:00 Intro
0:08:23 Why it was decided to respond to Dave Ramsey’s claim that 8% is a safe retirement spending rate
0:10:57 What Ramsey gets wrong about retirement math to justify his 8% spending claim
0:16:47 How important sequence risk is to how investors fund their retirement consumption
0:24:17 How the risk of being in stocks changes at long horizons vs. short horizons
0:26:46 How subjective risk tolerance changes with short-term market fluctuations
0:39:26 Thoughts about Dave Ramsey’s suggestion that the 4% rule is just too depressing
0:48:03 How much dynamic spending strategies improve the initial withdrawal rate
0:52:19 How much variability in income investors need to be prepared for with dynamic spending strategies
0:55:49 When people should be looking past traditional investments and toward other products, like annuities
1:09:02 How impactful the idea of deferring government pensions is
Links From Today’s Episode:
Michael Finke — http://www.michaelfinke.com/home.html
Michael Finke on X — twitter.com/finkeonfinance
Michael Finke on Facebook — facebook.com/mfinke
The American College of Financial Services — https://www.theamericancollege.edu/
David Blanchett — davidmblanchett.com
David Blanchett on X — twitter.com/davidmblanchett
David Blanchett on LinkedIn — linkedin.com/in/david-blanchett-b0b0aa2
PGIM DC Solutions — pgim.com/dc-solutions
Wealth, Managed Podcast — https://www.theamericancollege.edu/knowledge-hub/wealth-managed-podcast
Wade Pfau — retirementresearcher.com/wade-pfau
Wade Pfau on LinkedIn — linkedin.com/in/wpfau
Wade Pfau on X — twitter.com/WadePfau
McLean Asset Management — mcleanam.com
Retire With Style Podcast — risaprofile.com/retire-with-style
Alliance for Lifetime Income — protectedincome.org
Episode 89: Wade Pfau: Safety-First: A Sensible Approach to Retirement Income Planning — rationalreminder.ca/podcast/89
Episode 137: David Blanchett: Researching Retirement — rationalreminder.ca/podcast/137
Episode 254: David Blanchett: Regret Optimized Portfolios and Optimal Retirement Income — rationalreminder.ca/podcast/254
The Ramsey Show — youtube.com/@TheRamseyShowEpisodes
The Ramsey Show: You Can’t Win With Money if You Don’t Know Where Your Money Is — youtube.com/watch?v=Xg4Z8EQY3Ao
‘Supernerds Unite Against Dave Ramsey’s 8% Safe Withdrawal Rate Guidance’ — thinkadvisor.com/2023/11/13/supernerds-unite-against-dave-ramseys-8-safe-withdrawal-rate-guidance
Jason Fichtner — bipartisanpolicy.org/person/jason-j-fichtner
‘The Value of Delayed Social Security Claiming for Higher-Earning Women’ — dx.doi.org/10.2139/ssrn.3849653
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Tightwads are more likely to hold onto their money even when there is more than enough to spend, whilst spendthrifts will drain their bank account of its very last cent. So, which one are you, and how does that impact your relationships? Joining us today is the remarkable Marketing Professor and Author, Scott Rick. Scott has just penned a new book, Tightwads and Spendthrifts: Navigating the Money Minefield in Real Relationships, which serves as a guide for finding happiness while steering through money and love. To kick-start our conversation, Scott summarizes the relationship that people generally have with money, followed by a deeper exploration of the terms “tightwad” and “spendthrift”. We break down the psychology of tightwad and spendthrift behaviours, how these two personality types interact with one another in relationships, the myths of financial infidelity and transparency, and how bank account structures (joint and individual accounts) dictate how money flows in a relationship. We also assess the roles of financial advisors and gift-giving within relationships before Scott shares his thoughts on marrying for money versus marrying for love, how to give your kids the best financial education, and what he hopes every reader will gain from the truly fascinating and informative, Tightwads and Spendthrifts!
The Tightwad-Spendthrift Scale Form:
umich.qualtrics.com/jfe/form/SV_55xxAQrYK0WRlY2
Timestamps:
0:00:00 Intro
0:03:34 Scott describes the relationship that people have with money
0:05:32 Scott defines the terms tightwad and spendthrift
0:10:09 How being a tightwad differs from being frugal
0:15:22 The underlying psychological mechanisms behind spendthrift and tightwad behaviors
0:21:59 The role financial advisors should play in telling people they can spend more
0:27:22 How common it is for tightwads and spendthrifts to end up in relationships together
0:32:08 How the financial situations of matched and mismatched couples tend to compare
0:38:21 The effect the structure of bank accounts has on the way that money flows through a relationship
0:42:35 Behaviors that get classified as financial infidelity
0:45:18 The downsides of total financial transparency in a relationship
0:50:37 The role gift giving should play in relationships
0:56:42 How kids learn about money from their parents
1:03:27 Based on Scott's research, whether people should marry for love, or marry for money
1:06:54 What Scott hopes people take away from his book
1:11:24 Scott defines success in his life
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Scott Rick — scottrick.com
Scott Rick on LinkedIn — linkedin.com/in/scottianrick
Scott Rick on X — twitter.com/scottianrick
Michigan Ross — https://michiganross.umich.edu/
Hal Hershfield — halhershfield.com
‘Episode 282: Dr. Jim Grubman: The Psychology of Wealth’ — rationalreminder.ca/podcast/282
Books From Today’s Episode:
Tightwads and Spendthrifts — amazon.com/Tightwads-Spendthrifts-Navigating-Minefield-Relationships/dp/1250280079
Retail Therapy Blog — psychologytoday.com/intl/blog/retail-therapy
Damon Young — nytimes.com/column/damon-young
The Great Gatsby — amazon.com/Great-Gatsby-Original-Fitzgerald-Classic/dp/B0BF3P5XZS
‘The 36 Questions That lead To Love’ — nytimes.com/2015/01/09/style/no-37-big-wedding-or-small.html
It’s the start of a new year and with it comes an opportunity to re-evaluate your trajectory and
set your goals for the months to come, whether they be financial, personal, or all of the above.
Kicking things off for today’s episode is our conversation with Steve Balaban, a private equity
insider with a refreshingly realistic and practical perspective on private equity. We talk with
Steve about investing in private equity, the benefits and drawbacks every investor should know
about, why due diligence is essential, how private equity interacts with investor psychology,
and much more. Tuning in you’ll also learn about the Private Equity Certificate offered by CFA
Society Toronto in collaboration with Mink Learning and how listeners can gain special access
to these training tools. Next, we take a look back at our conversation with Ayelet Fishbach from
the Booth School of Business on the science of motivation and goal setting and the contents of
her new TEDxChicago Talk The Science of Getting Motivated. We wrap things up with a review
of Justin Breen’s book titled, Epic Life: How to Build Collaborative Global Companies While
Putting Your Loved Ones First, followed by our conversation with the author on the
transformational power of naming your year, the power of networking, and other key lessons
from his book. For all this and much more, be sure to tune in and start 2024 armed with
insights from some of the best thinkers around!
Tune Out The Noise Access URL: film.dimensional.com/podcast
Access Code (available until Jan 31): RATIONAL
Private Equity Certificate: web.cvent.com/event/10af7f03-e05c-465a-803e-3e8ac3864120/summary
Coupon Code: RATIONALREMINDERPEC
Timestamps:
0:00:00 Intro
0:04:25 Main Topic: A Practical Look at Private Equity
0:08:59 Main Topic: Special Guest Steve Balaban
1:11:04 Episode 188: 60 Seconds
1:12:49 Book Review: Epic Life: How To Build Collaborative Global Companies While Putting Your Loved Ones First
1:14:56 Book Review: Special Guest Justin Breen
1:38:09 Aftershow
Links From Today’s Episode:
Steve Balaban — stevebalaban.com
Steve Balaban on LinkedIn — training.minklearning.com
Mink Learning — training.minklearning.com
Justin Breen on LinkedIn — linkedin.com/in/justinbreen1
BrEpic Communications LLC — brepicllc.com
BrEpic Network — brepicnetwork.org
Epic Life: How to Build Collaborative Global Companies While Putting Your Loved Ones First —
amazon.com/Epic-Life-Collaborative-Companies-Putting/dp/1544532555
Episode 188: Prof. Ayelet Fishbach — rationalreminder.ca/podcast/188
Professor Ayelet Fishbach's TEDxChicago Talk, The Science of Getting Motivated —
youtube.com/watch?v=T8CegN1xssY
Episode 286: Errol Morris — rationalreminder.ca/podcast/286
Episode 210: Prof. Ludovic Phalippou — rationalreminder.ca/podcast/210
Flow: The Psychology of Optimal Experience —
amazon.com/Flow-Psychology-Experience-Perennial-Classics/dp/0061339202
Get It Done: Surprising Lessons from the Science of Motivation —
amazon.com/Get-Done-Surprising-Lessons-Motivation/dp/0316538345
Episode 237: Who are you, and who do you want to be? —
rationalreminder.ca/podcast/237
The Geek Way —
amazon.com/Geek-Way-Radical-Transforming-Business/dp/0316436704
Tightwads and Spendthrifts: Navigating the Money Minefield in Real Relationships —
amazon.com/Tightwads-Spendthrifts-Navigating-Minefield-Relationships/dp/1250
280079
Same as Ever: A Guide to What Never Changes —
amazon.com/Same-Ever-Guide-Never-Changes/dp/0593332709
Episode 224: Prof. Scott Cederburg — rationalreminder.ca/podcast/224
Episode 284: Prof. Scott Cederburg — rationalreminder.ca/podcast/284
Money Scope Podcast — moneyscope.ca
Rational Reminder on iTunes
— itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
In today’s episode, Errol Morris, Academy Award-winning film director and author, joins us to
talk about his recently released documentary called Tune Out the Noise. The documentary
focuses on the revolution that's happened in the financial system, how the markets work, and
why the advancements made are so vital. Errol is an acclaimed figure in film and literature,
boasting an impressive array of accolades, notably securing an Oscar for his renowned
documentary The Fog of War. His work spans various arenas, encompassing short films for
prestigious events and many charitable and political organizations. In our conversation, we
delve into the significance of storytelling in communicating complex subjects, the power of
serendipity, the evolution of finance, and the enigmatic nature of truth. We discuss the
necessity of storytelling, the unexpected occurrences that influenced finance, the importance
of empirical data in understanding truth, the central story of Tune Out the Noise, and much
more. He also provides insights into the amazing economists, many of whom are past guests,
who helped shape the financial landscape. Discover how chance, humility, and the pursuit of
truth intertwine in this captivating episode, where the intriguing art of storytelling converges
with the complexities of the financial world. Tune in now!
Rational Reminder listeners get exclusive first access to Tune Out the Noise, a documentary directed by Academy Award-winner Errol Morris until January 31.
Tune Out The Noise Access URL: film.dimensional.com/podcast
Access Code (available until Jan 31): RATIONAL
Timestamps:
0:00:00 Intro
0:05:54 Errol is a fan of Rational Reminder
0:08:23 Errol describes the story he tells with his film Tune Out the Noise
0:12:04 The importance of the story to the average person
0:16:32 Key points in Errol's research where his views began to change
0:21:52 How Errol decided to make the film an "Errol Morris" film, rather than a commercial one
0:29:31 Whether or not Errol has skepticism when he hears that there is data suggesting that people can't beat the market
0:33:46 If there are other people not included in the film that are important to the story
0:42:31 What surprised Errol about the story once he fully understood it
0:49:46 The aspects of the story that are underappreciated by the end investors who benefit from it
0:55:20 How telling a story like this differs from stories like The Thin Blue Line or The Fog of War
1:04:29 How many interviews Errol has conducted over his career
1:08:42 What determines a "good" interview
1:11:37 How people can become better storytellers
1:12:54 Errol defines success in his life
Links From Today’s Episode:
Errol Morris — errolmorris.com
Errol Morris Email — info@errolmorris.com
Tune Out the Noise — austinfilm.org/films/test-screening-tune-out-the-noise
The Fog of War — imdb.com/title/tt0317910
The Thin Blue Line — imdb.com/title/tt0096257
Believing Is Seeing — amazon.com/Believing-Seeing-Observations-Mysteries-
Photography/dp/1594203016/
A Wilderness of Error — amazon.com/Wilderness-Error-Trials-Jeffrey-MacDonald
dp/B009GKGSEC/
Gates of Heaven — imdb.com/title/tt0077598
Dimensional Fund Advisors — dimensional.com
The Art of Controversy — amazon.com/Art-Controversy-Arthur-Schopenhauer/dp
160459571X
The Pigeon Tunnel — imdb.com/title/tt28486633
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-
podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
It’s hard to believe, but today’s episode marks our fifth annual year-in-review episode — where we look back at some of our favourite conversations and takeaways from the past year! If there’s one overarching theme that stood out amongst our guests in 2023 it would be the power of purposeful decision-making to impact our future selves. Tuning in, you’ll hear our guests' remarkable views on the topic, from the power of regret when it comes to long-term decisions to the ‘hidden partner’ that accompanies us in all our decision-making. Another key theme that emerged is how the role of financial advisors is evolving. Key insights include why your financial advisor should collaborate with other advisors, why trust is essential, and how to prepare your children for wealth. We wrap things up with reflective tips on how to identify what your true goals are with a profound lesson on why setting your own scoreboard is essential. Tune in as we share some of our favourite moments from the past year.
Timestamps:
0:00 Intro
10:17 Charles D. Ellis: Why money management is a loser's game
13:31 Burton Malkiel: What the term "efficient markets" means
18:03 Pim van Vliet: The difference between a global factor premium and the cross-sectional premiums
22:54 Samuel Hartzmark: How investors treat price returns and dividend returns differently
29:01 William Goetzmann: Why it's important to collect and examine long-term historical returns data
31:54 William Goetzmann: How to estimate the expected long-term returns of both stocks and bonds
37:40 Robert C. Merton: The influence do you think time horizon should have on the mix between stocks and bonds in an investor's portfolio
44:80 Francisco Gomes: How optimal asset allocation changes over the life cycle
50:09 David Blanchett: What driving that regret in investing is
51:45 David Blanchett: The difference between risk aversion and regret aversion
53:39 Daniel H. Pink: How to optimize future regret
57:58 Charles D. Ellis: The most underappreciated action that individual investors can take to be more successful
59:08 John Y. Campbell: How much households differ in their beliefs and preferences
1:03:15 Ralph Keeney: Ralph describes the focus of his career’s research and his consulting work
1:07:54 Cass Sunstein: How people decide whether or not to obtain information that could help them make better decisions
1:11:59 Eric J. Johnson: Describing the hidden partner that accompanies us when we make decisions
1:14:50 Cass Sunstein: How people decide what information to believe, and when to update their beliefs
1:19:50 James Choi: Why economic theory often fails to describe how real people make personal finance decisions
1:22:51 Itzhak Ben-David: Defining miscalibration
1:28:33 Hal Hershfield: How connected people feel to their future selves
1:29:59 Hal Hershfield: Which emotion drives decisions that favour our current self or our future self
1:31:31 Hal Hershfield: What about our future selves makes them feel like a stranger
1:33:34 Meir Statman: What the third generation of behavioural finance is
1:36:11 Preet Banerjee: The value of having a financial plan
1:38:02 Darin Soat: Why it's harder for high-quality personal finance information to be seen on YouTube
1:42:08 Harold Geller: How to know whether an advisor is properly performing the KYC process
1:45:34 Robert C. Merton: The role of financial advisors
1:49:10 Preet Banerjee: The main problems with past research that's attempted to demonstrate the value of financial advice
1:54:20 Victor Haghani/James White: Explaining the puzzle of the missing billionaires
2:00:16 Rob Carrick: The proportion of Canadians that are getting comprehensive advice from their financial advisor
2:05:22 Juhani Linnainmaa: How investors can assess the quality of a potential advisor's beliefs
2:08:04 James Grubman: Advice for identifying advisors who get the importance of Wealth 3.0
2:14:16 James Grubman: What parents should be thinking about to prepare their children to receive wealth
2:20:33 Shane Parrish: How people should approach determining what their true goals are
2:22:15 Ending
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
In this episode, we welcome back the esteemed Professor Scott Cederburg, Associate Professor of Finance at the University of Arizona. In this highly anticipated episode, Professor Cederburg revisits the show to delve into his groundbreaking paper on life cycle asset allocation. Professor Cederburg's latest research presents findings that disrupt traditional thinking in the field, prompting a deep dive into the implications of these new insights. In our conversation, we unpack the findings from the paper and how they challenge established norms in retirement planning and asset allocation. We discuss what the new paper adds to the discourse, his approach and methodology, the different assessment criteria used, and the main findings from the paper. We also delve into the different asset allocation strategies assessed, which strategy performed best, aspects that would influence the various strategies, and how to invest for the long term safely. We explore the nuances of stock versus bond returns and the hidden benefits of international diversification. Gain profound insights into the significance of social security, inflation-protected bonds, target date funds, and the repercussions of an all-equity strategy. Comparing his latest paper with prior research on withdrawal rates, Professor Cederburg highlights surprising aspects of the results and provides invaluable takeaways for financial advisors from these cutting-edge findings. Discover how this pioneering work challenges conventional wisdom, reshaping the landscape of retirement planning and investment strategies in this illuminating conversation with Professor Scott Cederburg.
Timestamps:
0:00:00 Intro
0:04:20 The central tenets of lifecycle investing Scott challenges in his paper
0:08:09 What sets Scott's method apart in its ability to challenge the status quo
0:11:24 Scott describes the lifecycle of the household that he modeled
0:16:25 The retirement outcomes did Scott used to evaluate lifecycle asset allocation strategies
0:20:33 Which asset allocation strategies perform best on Scott's evaluation metrics
0:27:40 Which asset allocation strategies perform best in the left tail of outcomes
0:34:22 How important social security is to an all equity portfolio being optimal
0:39:06 How much more a household has to save in a target date fund for retirement consumption to match investing in stocks through the full lifecycle
0:43:13 How much of a risk large intermediate losses actually are for people saving for, and living though, their retirements
0:54:34 The important of return dependencies, like mean reversion in stocks, to Scott's results
1:01:02 Why the observed behavior of retirees, which does more closely follow the traditional lifecycle advice, differs from what is optimal
1:06:07 What is driving the large optimal allocation to domestic stocks
1:11:45 Whether adding additional costs to owning international stocks pushes the optimal home bias further
1:15:28 The aspects of the results that surprised Scott
Links From Today’s Episode:
Professor Scott Cederburg — https://eller.arizona.edu/people/scott-cederburg
Professor Scott Cederburg on LinkedIn — linkedin.com/in/scott-cederburg
Professor Scott Cederburg on Google Scholar — scholar.google.com/citations
Eller College of Management — https://eller.arizona.edu/
Episode 224 — rationalreminder.ca/podcast/224
Episode 250 — rationalreminder.ca/podcast/250
‘Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice’ — dx.doi.org/10.2139/ssrn.4590406
‘The Safe Withdrawal Rate: Evidence from a Broad Sample of Developed Markets’ — dx.doi.org/10.2139/ssrn.4227132
International Diversification Works (Eventually) — doi.org/10.2469/faj.v67.n3.1
‘Stocks for the long run? Evidence from a broad sample of developed markets’ — sciencedirect.com/science/article
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Timestamps:
0:00:00 Intro
0:02:26 Main Topic: Volatility and Investor Behavior
0:04:38 Performance Chasing
0:05:42 The Return Gap
0:10:04 Return Gaps and Volatility
0:13:17 Expected Returns and Return Expectations
0:17:55 Special Announcement w/ guest Dr Mark Soth
0:32:43 Mark to Market
0:46:08 Episode 198: 60 Seconds
0:48:45 Book Review: Brave New Work: Are You Ready to Reinvent Your Organization?
0:55:28 Aftershow
Links From Today’s Episode:
Episode 198: Gerard O’Reilly — rationalreminder.ca/podcast/198
Episode 224: Scott Cederburg — rationalreminder.ca/podcast/224
Episode 268: Itzhak Ben-David — rationalreminder.ca/podcast/268
‘The Folly of Hiring Winners and Firing Losers’ — cannonfinancial.com/uploads/main/The_Folly_of_Hiring_Winners_and_Firing_Losers1725.pdf
The Money Scope Podcast — moneyscope.ca
The Money Scope Podcast on YouTube — youtube.com/@moneyscopepod
Brave New Work: Are You Ready to Reinvent Your Organization? — amazon.com/Brave-New-Work-Reinvent-Organization/dp/0525536205
Aaron Dignan — http://www.aarondignan.com
The Ready — theready.com
The Fund: Ray Dalio, Bridgewater Associates, and the Unraveling of a Wall Street Legend — amazon.com/Fund-Bridgewater-Associates-Unraveling-Street/dp/1250276934
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Dr. Mark Soth (The Loonie Doctor) — looniedoctor.ca
Dr. Mark on X — twitter.com/LoonieDoctor
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — twitter.com/MarkMcGrathCFP
Timestamps:
0:00:00 Intro
0:04:38 James defines what it means to be wealthy
0:08:07 How common it is for people to become wealthy as opposed to being born wealthy
0:14:16 The added challenges that come with raising children in the context of wealth
0:23:32 How the source of wealth affects how people adapt to it
0:26:25 What people need to think about when they consider adopting the culture of the land of wealth
0:34:41 The implications of avoiding the cultural change altogether
0:39:13 What happens when people try too hard to adapt to being wealthy
0:43:11 Some of the common challenges to successful integration
0:47:02 What parents should be thinking about as they prepare their children to receive wealth
0:54:20 The role James sees for professional advisors in managing wealth
0:56:53 In the context of managing wealth, James defines Wealth 1.0
1:02:55 Why the negative aspects of Wealth 2.0 lasted for so long
1:05:16 James describes Wealth 3.0
1:10:28 New skills do advisors need to develop in Wealth 3.0
1:18:48 How receptive clients are to the ideas of Wealth 3.0
1:20:40 What James is most excited about in the emerging Wealth 3.0
1:24:09 James defines success in his life
Links From Today’s Episode:
Dr. James Grubman — jamesgrubman.com
Strangers in Paradise — amazon.com/Strangers-Paradise-Families-Wealth-Generations/dp/0615894356
Wealth 3.0 — amazon.com/Wealth-3-0-Future-Family-Advising/dp/B0C9SHFSGM
Cross Cultures — amazon.com/Cross-Cultures-Families-Negotiate-Generations/dp/1517626609
Family Firm Institute (FFI) — ffi.org
Purposeful Planning Institute — purposefulplanninginstitute.com
STEP — step.org
Ultra-High Net Worth Institute (UHNW) — uhnwinstitute.org
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Timestamps:
0:00:00 Intro
0:02:32 Main Topic: Asset Allocation
0:10:27 Government Pensions
0:13:05 Is Volatility a Risk?
0:15:35 Empirical Analysis
0:26:17 Bonds as a Diversifier
0:27:06 Behavior Gap
0:32:36 Limitations
0:33:18 Main Topic: Conclusion
0:34:57 Mark to Market
0:43:53 Episode 177: 60 Seconds
0:47:19 Book Review w/ Special Guest Justin King
1:07:14 Aftershow
Links From Today’s Episode:
‘Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=4590406
Episode 224: Prof. Scott Cederburg — rationalreminder.ca/podcast/224
Episode 169: Prof. John Cochrane — rationalreminder.ca/podcast/169
Episode 250: Prof. John Y. Campbell — rationalreminder.ca/podcast/250
Episode 278: Juhani Linnainmaa: Financial Advisors, and the Cross Section of Returns — rationalreminder.ca/podcast/278
Episode 177: Dr. Anna Lembke — rationalreminder.ca/podcast/177
Anna Lembke — annalembke.com
Dopamine Nation: Finding Balance in the Age of Indulgence — annalembke.com/dopamine-nation
Justin King on LinkedIn — linkedin.com/in/justinking-retirement-planner-ifa
Justin King on X — twitter.com/JustinKingCFP
The Retirement Café — theretirementcafe.co.uk
The Retirement Café Podcast — theretirementcafe.co.uk/podcast
The Retirement Café Handbook: Nine Accelerators for a Successful Retirement — amazon.co.uk/Retirement-Cafe-Handbook-Accelerators-Successful/dp/1739410300
Episode 30: Larry Swedroe — rationalreminder.ca/podcast/tag/Larry+Swedroe
Strangers in Paradise: How Families Adapt to Wealth Across Generations — amazon.com/Strangers-Paradise-Families-Wealth-Generations/dp/0615894356
Wealth 3.0: The Future of Family Wealth Advising — amazon.com/Wealth-3-0-Future-Family-Advising/dp/B0C9SHFSGM
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Timestamps:
0:00:00 Intro
0:03:44 Shane explains why the title of his book refers to ordinary moments
0:09:03 How important it is to define your true goals
0:12:00 How clear thinking is connected to achieving goals
0:20:01 How one learns to control the four defaults
0:26:55 Shane's opinion regarding following best practices as a decision-making tool
0:35:22 How important good habits are to clear thinking
0:47:24 The importance of defining the problem before solving the problem
0:52:11 How Shane determined that he values time over money
0:57:21 How someone can curate the information that is best for them
1:02:00 Shane defines success in his life
Links From Today’s Episode:
Farnam Street — https://fs.blog/
Shane Parrish on LinkedIn — linkedin.com/in/shane-parrish-050a2183
Shane Parrish on X — twitter.com/ShaneAParrish
Syrus Partners — syruspartners.com
Clear Thinking — amazon.com/Clear-Thinking-Turning-Ordinary-Extraordinary/dp
0593086112
The Knowledge Project Podcast — https://fs.blog/knowledge-project-podcast/
Episode 19: Shane Parrish — rationalreminder.ca/podcast/19
Episode 143: Ashley Whillans — rationalreminder.ca/podcast/143
The Great Mental Models — amazon.com/dp/B086DQQ278
30 Lessons for Living — amazon.com/30-Lessons-Living-Advice-Americans/dp
0452298482
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore