RR #185 - Lighting your Money on Fire with Thematic ETFs The Rational Reminder Podcast 2022-01-27 | As we all know, not all investments are equally exciting, but on today’s show, we make the case that you should not put your money into an ETF just because it is trending. A thematic ETF is a fund that offers the opportunity to invest based on a particular theme, such as climate change or artificial intelligence. The concept behind investment themes is that they ostensibly offer investors the opportunity to participate in potentially disruptive trends with the idea of earning excess returns. The problem we find with these ETFs is that as the markets they are based on attract more attention and an influx of entrants, everybody’s per-share earnings get reduced. By the time a themed ETF becomes investable, it experiences a mean reversion of prices and media sentiment, in contrast to the attractive returns shown in its backtested index. This means that while thematic ETFs are good business for the ETF providers, they do not create value for investors on average. Toward the end of our show, we invite Wes Gray from Alpha Architect to talk about their change from index to active ETFs and more. Wrapping up, Wes along with Robin Taub join us for a lively round of Talking Cents. Tune in today!Timestamps: 0:00 Intro6:30 Cameron's recommendations13:58 Thematic ETFs42:48 Discussion with Wes Gray from Alpha Architect1:03:40 Talking Cents with Robin Taub and Wes GrayBooks From Today’s Episode:The Wisest Investment — amzn.to/3BWQfZwQuantitative Momentum: A Practitioner’s Guide to Building a Momentum-Based Stock Selection System — amzn.to/2XZWFoH Quantitative Value, + Web Site: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors — amzn.to/2U6GuVh Chatter — amzn.to/3IAtOwS Links From Today’s Episode:Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — rationalreminder.ca Shop Merch — shop.rationalreminder.caJoin the Community — community.rationalreminder.caFollow us on Twitter — twitter.com/RationalRemindFollow us on Instagram — @rationalreminderBenjamin on Twitter — twitter.com/benjaminwfelixCameron on Twitter — twitter.com/CameronPassmoreWes Gray on LinkedIn — linkedin.com/in/alphaarchitectRobin Taub — robintaub.com'Earnings Growth: The Two Percent Dilution' — researchaffiliates.com/documents/FAJ-2003-Two-Percent-Dilution.pdf'The Big Market Delusion: Valuation and Investment Implications' — tandfonline.com/doi/full/10.1080/0015198X.2020.1730655'Overconfidence and Speculative Bubbles' — https://www.journals.uchicago.edu/doi/abs/10.1086/378531'Competition for Attention in the ETF Space' — papers.ssrn.com/sol3/papers.cfm?abstract_id=3765063'Betting Against Quant: Examining the Factor Exposures of Thematic Indices' — papers.ssrn.com/sol3/papers.cfm?abstract_id=3899750
Building Better Portfolios With Don Calcagni | Rational Reminder 327 The Rational Reminder Podcast 2024-10-17 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpWhat 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 Intro0:05:52 Main Topic: Optimal Retirement Withdrawal Sequence w/ Don Calcagni0:47:56 AftershowLinks 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/rationalreminderRational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminderRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/our-teamBenjamin on X — https://x.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/our-teamCameron on X — https://x.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreMark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark McGrath on X — https://x.com/MarkMcGrathCFPDan Bortolotti on LinkedIn — linkedin.com/in/dan-bortolotti-8a482310 Canadian Couch Potato — canadiancouchpotato.com/blog Don Calcagni on LinkedIn — linkedin.com/in/donald-calcagni-8104b546Mercer Advisors — merceradvisors.com‘Building Better Portfolios | 2023 Summit’ — youtu.be/TWYukQogQPAFuture Proof Festival — futureproofhq.com/festivalEpisode 316: Andrew Chen — rationalreminder.ca/podcast/316Episode 323: Renting Versus Buying a Home in Canada 2005-2024 — rationalreminder.ca/podcast/323Episode 325: Addressing 200+ Comments on Renting vs. Owning a Home — rationalreminder.ca/podcast/325Papers From Today’s Episode: ‘Portfolio Selection’ — doi.org/10.1111/j.1540-6261.1952.tb01525.x
Dr. Sunil Wahal: Applying Financial Science | Rational Reminder 326 The Rational Reminder Podcast 2024-10-10 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpWhat 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 Intro0:04:59 How robust the profitability premium is in the pre-1963 data0:09:22 How impactful controlling for value to the profitability premium is0:12:57 How large the premiums have been for portfolios formed on value and profitability relative to a cap weighted portfolio0:17:24 The best way for unlevered long-only investors to use this information in constructing a portfolio0:22:50 Sunil describes the differences in Dimensional's and Avantis's approaches to implementing value and profitability in portfolios0:28:43 How important an investor’s time horizon to their ability to capture the benefits of a tilted portfolio is0:35:53 How institutions decide which investment managers to hire0:39:56 How institutions decide when to fire managers0:44:21 How manager hiring and firing decisions affects institutional performance on average0:49:18 How relationship-based hires affects performance0:52:03 How institutions choose which private market firms to invest in0:57:11 The main lessons that institutional investors should take from Sunil's research1:01:17 The lessons from this research that applies to retail investors1:11:10 How competitive the market is for mutual funds1:19:25 How investors can look for funds with a more diversified investor base1:23:05 What this suggests about the efficiency of markets outside of the US1:27:51 Sunil defines success in his lifeLinks From Today’s Episode:Meet with PWL Capital: calendly.com/d/3vm-t2j-h3pRational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — rationalreminder.ca Rational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminderRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/our-team Benjamin on X — https://x.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/our-teamCameron on X — https://x.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreSunil Wahal on LinkedIn — linkedin.com/in/sunil-wahalW. P. Carey School of Business — https://wpcarey.asu.edu/Avantis Investors — avantisinvestors.comDimensional Fund Advisors — dimensional.comUpWork — upwork.comNVIDIA — nvidia.comEpisode 316: Andrew Chen — rationalreminder.ca/podcast/316Books From Today’s Episode:The Interpretation of Financial Statements — amazon.com/dp/0887309135Papers 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
Addressing 200+ Comments on Renting vs. Owning a Home | RR Episode 325 The Rational Reminder Podcast 2024-10-03 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpThere 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 Intro0:02:22 Main Topic: 250 Questions About Renting vs. Owning a HomeLinks From Today’s Episode:Meet with PWL Capital: calendly.com/d/3vm-t2j-h3pGlobe 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-howRational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — rationalreminder.ca Rational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminderRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/our-team/?team-search=benjamin+felix Benjamin on X — https://x.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixDan Bortolotti on LinkedIn — linkedin.com/in/dan-bortolotti-8a482310Canadian Couch Potato — canadiancouchpotato.com/blog
Dr. Bryan Taylor: Lessons from Market History (1600-2024) | Rational Reminder 324 The Rational Reminder Podcast 2024-09-26 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpHave 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 Intro0:04:39 Bryan defines Global Financial Data0:09:01 The challenges with collecting data on the distant past0:13:29 How useful data from the distant past are for making investment decisions today0:14:36 How stocks have performed relative to bonds throughout the full history that you have data for0:22:50 Bryan describes the five financial eras that we have seen over the last 400 years0:28:27 How to know what type of era we are in now0:31:36 What effect government debt has on country stock returns0:39:57 Which countries have the best and worst performing stock market throughout history0:44:11 What the lessons from studying history suggest about expected stock and bond returns today0:47:42 How low interest rates were in recent history relative to the long-term history of interest rates0:53:20 How Bryan addressed the lack of historical data for emerging markets returns0:57:14 How Bryan classifies an emerging market in his data1:03:04 How often emerging markets transition to being developed markets1:08:25 How the current level of concentration in the U.S. stock market look relative to history1:13:43 Bryan defines success in his lifeLinks From Today’s Episode:Meet with PWL Capital: calendly.com/d/3vm-t2j-h3pRational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — rationalreminder.ca Rational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminderRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — https://x.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixMark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark McGrath on X — https://x.com/MarkMcGrathCFPDr. Bryan Taylor — linkedin.com/in/bryan-taylor-46a92032Global Financial Data — globalfinancialdata.comDr. Bryan Taylor on SSRN — papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=4320002Papers 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
Renting Versus Buying A Home In Canada (2005-2024) | Rational Reminder 323 The Rational Reminder Podcast 2024-09-19 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpIs 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 Intro0:04:23 Main Topic: Buying vs Renting a Home in Canada1:09:33 Ask the Spud1:23:10 AftershowLinks From Today’s Episode:Meet with PWL Capital: calendly.com/d/3vm-t2j-h3pRational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — rationalreminder.ca Rational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminderRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — https://x.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — https://x.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreMark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark McGrath on X — https://x.com/MarkMcGrathCFPDan Bortolotti on LinkedIn — linkedin.com/in/dan-bortolotti-8a482310Canadian Couch Potato — canadiancouchpotato.comFuture Proof Conference — futureproofhq.comCMHC (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-tablesEpisode 196: Sebastien Betermier — rationalreminder.ca/podcast/196Episode 308: Dan Bortolotti — rationalreminder.ca/podcast/308Statistics Canada — statcan.gc.caBank of Canada — bankofcanada.caNational Council of Real Estate Investment Fiduciaries (NCREIF) — ncreif.orgREALTOR.ca — realtor.caKevin Prins — bmoetfs.ca/specialists/kevin-prinsBMO Canadian ETF — bmoetfs.caFinancial Planning Association of Canada — fpassociation.caPapers 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
Prof. Marco Sammon: How are Passive Investors Affecting the Stock Market? | Rational Reminder 322 The Rational Reminder Podcast 2024-09-12 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpCan 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 Intro0:04:15 How much of the US stock market owned by index funds0:09:02 Marco defines what a passive investor is0:11:33 Marco identifies which indexes he looks at for his estimates of total passive share0:14:36 What Marco's findings suggest about the validity of the Grossman-Stiglitz framework for how investors choose between active and passive investing0:22:29 How the price effects of index inclusions and deletions have changed over time0:27:38 The implications of Marco's findings for market efficiency0:30:38 How index fund ownership has affected price informativeness0:35:29 How index funds’ demand for securities differs from that of other investors0:46:11 How important firm issuance has been to the growth in assets managed by index funds0:48:00 Where the shares provided by Firms to meet passive demand come from0:52:54 The conditions affect the responsiveness of Firms in accommodating passive demand0:57:00 How Marco thinks the market would respond to significant net selling by index funds1:01:27 How firms with fast track index inclusion perform relative to their non-fast-track peers1:05:41 How fast track IPOs would affect investors in index funds1:11:46 Marco defines success in his lifeLinks From Today’s Episode:Meet with PWL Capital: calendly.com/d/3vm-t2j-h3pRational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — rationalreminder.ca Rational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminderRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — https://x.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — https://x.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreMarco Sammon — marcosammon.comMarco Sammon on X — https://x.com/mcsammon19Episode 302: Michael Green — rationalreminder.ca/podcast/302Papers 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.htmlDo Demand Curves for Stock Slope Down? — jstor.org/stable/2328486
Evidence in Practice with Håkon Kavli | Rational Reminder 321 The Rational Reminder Podcast 2024-09-05 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpHow 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 "BadInvestment 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 Intro0:07:29 Main Topic: Håkon Kavli, CIO Reitan Kapital1:13:10 New Segment with Dan Bortolotti1:28:36 AftershowLinks From Today’s Episode:Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminderRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — https://x.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — https://x.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreMark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark McGrath on X — https://x.com/MarkMcGrathCFPDan Bortolotti — canadianmoneysaver.ca/authors/dan-bortolottiDan Bortolotti on LinkedIn — linkedin.com/in/dan-bortolotti-8a482310Canadian Couch Potato Blog — canadiancouchpotato.comCanadian Couch Potato Podcast — canadiancouchpotato.com/podcastEpisode 308: Dan Bortolotti — rationalreminder.ca/podcast/308Håkon Kavli on LinkedIn — linkedin.com/in/haakonkavliMarcos Lopez de Prado — https://www.orie.cornell.edu/faculty-directory/marcos-lopez-de-pradoAntti Ilmanen — aqr.com/About-Us/OurFirm/Antti-IlmanenEpisode 224: Prof. Scott Cederburg — rationalreminder.ca/podcast/224Sharpe ratio — investopedia.com/terms/s/sharperatio.aspEpisode 210: Prof. Ludovic Phalippou — rationalreminder.ca/podcast/210‘An interesting RRSP idea – all in on QQQ?’ — tawcan.com/all-in-on-qqqPapers 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
Kyla Scanlon: In This Economy? | Rational Reminder 320 The Rational Reminder Podcast 2024-08-29 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpHave 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 Intro0:04:03 Kyla defines economics0:06:02 How vibes affect the economy0:11:33 How inflation expectations affect vibes and the economy0:14:36 What people get wrong about housing0:22:42 Kyla identifies the distinction between the stock market and the economy0:25:50 Kyla explains why, or how, markets became a meme0:29:49 Where Kyla thinks crypto went wrong0:36:56 Kyla defines a "Vibecession"0:42:16 Why the Fed exists0:52:45 How social media affects people's vibes0:53:46 Kyla's biggest learnings from talking to people about economics0:58:15 Kyla defines success in her lifeLinks From Today’s Episode:Rational Reminder on Apple Podcasts — podcasts.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582Rational Reminder Website — rationalreminder.ca Rational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — https://x.com/RationalRemindRational Reminder on YouTube — youtube.com/@rationalreminderRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — https://x.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — https://x.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreMark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark McGrath on X — https://x.com/MarkMcGrathCFP
The Ultimate RRSP vs. TFSA Showdown | Rational Reminder 319 The Rational Reminder Podcast 2024-08-22 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpMeet with PWL Capital: calendly.com/d/cpws-jyp-znpWhich 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 Intro0:07:25 Main Topic: Ultimate RRSP vs. TFSA Showdown1:04:09 AftershowLinks From Today’s Episode:Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminderRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — https://x.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — https://x.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreMark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark McGrath on X — https://x.com/MarkMcGrathCFPBrady Plunkett on LinkedIn — linkedin.com/in/brady-plunkett-712489105Lukas Fleck on LinkedIn — linkedin.com/in/lukasfleckFlossing for your Finances, Personal Financial Strategies for Dentists — https://us06web.zoom.us/webinar/register/9017236574029/WN_7O_JdvejRhmh-_LleBNRmQ#registrationEpisode 317: Kevin Milligan — rationalreminder.ca/podcast/317Papers From Today’s Episode:‘Tax Uncertainty and Retirement Savings Diversification’ — papers.ssrn.com/sol3papers.cfm?abstract_id=2799288
Assia Billig: Is Canada Pension Plan (CPP) Sustainable? | Rational Reminder 318 The Rational Reminder Podcast 2024-08-15 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpIf 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 Intro0:06:06 Assia defines the main function of the Office of the Chief Actuary0:08:31 Assia defines the main purpose of the Actuarial Report on the Canada Pension Plan0:13:33 How common it is for the report to result in changes to benefits or contribution rates0:16:54 How much of the base CPP benefit payments are funded by contributions vs. investment income0:23:32 How funding for additional CPP differs from base CPP0:26:29 How plan sustainability is measured0:33:05 How Assia estimates expected returns for the assets managed by CPP Investments0:36:42 How sensitive the sustainability of the plan is to realised returns being lower than the expected returns0:44:02 How a change in the income distribution affects the sustainability of the plan0:49:56 How major world events like the pandemic affect the way that you approach the projections0:53:46 What Assia would say to people who are sceptical of CPP’s future sustainability0:54:51 Assia defines success in her lifeLinks From Today’s Episode:Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminderRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — https://x.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — https://x.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreMark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark McGrath on X — https://x.com/MarkMcGrathCFPAssia Billig — osfi-bsif.gc.ca/en/ocaAssia Billig on LinkedIn — linkedin.com/in/assia-billig-9b861587/?originalSubdomain=ca
An Economists Perspective on Capital Gains Taxes with Kevin Milligan | Rational Reminder 317 The Rational Reminder Podcast 2024-08-08 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpToday, 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 Intro0:08:31 Main Topic: An Economist's Perspective on Capital Gains Taxes0:11:39 Main Topic: Special Guest Kevin Milligan1:24:52 AftershowLinks From Today’s Episode:Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — https://x.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — https://x.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — https://x.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreMark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark McGrath on X — https://x.com/MarkMcGrathCFPProfessor Kevin Milligan — sites.google.com/view/kevin-milligan/homeProfessor Kevin Milligan on X — https://x.com/kevinmilliganThe Vancouver School of Economics — economics.ubc.caC.D. Howe Institute — cdhowe.orgNational Bureau of Economic Research — nber.orgCanadian Tax Journal — ctf.ca/EN/EN/Publications/CTJ.aspxEpisode 316: Andrew Chen — rationalreminder.ca/podcast/316Papers 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
Andrew Chen: Is Everything I was Taught About Cross-Sectional Asset Pricing Wrong?! | RR 316 The Rational Reminder Podcast 2024-08-01 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpAre 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 policydecisions 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 andtransparency, 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 Intro0:04:44 Andrew defines asset pricing factors and how it is different from a predictor0:06:22 Andrew explains how many predictors there are0:10:55 How many asset pricing factors Andrew was successfully able to reproduce0:15:58 The implications of this research for the supposed “replication crisis” in cross sectional asset pricing0:22:01 How the false discovery rate relates to publication bias and out of sample returns0:27:10 Whether these are the worst-case transaction costs, or if Andrew uses cost mitigation techniques0:34:09 Which factors, or factor combinations, had the strongest investable expected returns in Andrew's data0:38:33 How peer-reviewed factors with strong theoretical underpinnings perform relative to naively data mined factors0:43:54 What this tells us about the academic peer review process0:47:10 What this tells us about the usefulness of machine learning for asset pricing research0:51:06 The implications for people using peer-reviewed research for asset allocation decisions0:54:37 Andrew describes the current state of cross sectional asset pricing0:58:54 Andrew defines success in his lifeLinks From Today’s Episode:Rational Reminder on Apple Podcasts — podcasts.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — https://x.com/RationalRemindRational Reminder on YouTube — youtube.com/@rationalreminderRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — https://x.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — https://x.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreMark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark McGrath on X — https://x.com/MarkMcGrathCFPAndrew Chen — sites.google.com/site/chenandrewyFederal Reserve Board — federalreserve.govAndrew Chen on LinkedIn — linkedin.com/in/andrew-chen-63394169Andrew Chen on X — https://x.com/achenfinanceBooks From Today’s Episode:The Adaptive Markets Hypothesis: An Evolutionary Approach to Understanding Financial System Dynamics — amazon.com/dp/0199681147Papers From Today’s Episode:Andrew Chen, Tom Zimmermann, ’Open Source Cross-Sectional Asset Pricing’— papers.ssrn.com/sol3/papers.cfm?abstract_id=3604626Kewei Hou, Chen Xue, Lu Zhang, ’Replicating Anomalies’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=3275496R. David McLean, Jeffrey Pontiff, ’Does Academic Research Destroy Stock Return Predictability?’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=2156623Ilia D. Dichev, ’Is the Risk of Bankruptcy a Systematic Risk?’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=99868Campbell R. Harvey, Yan Liu, Caroline Zhu, ‘...and the Cross-Section of Expected Returns’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=2249314Andrew Chen, Mihail Velikov, ‘Zeroing in on the Expected Returns of Anomalies’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=3073681Victor 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
An Update from Avantis with Eduardo Repetto | Rational Reminder 315 The Rational Reminder Podcast 2024-07-25 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpDuring this episode, we welcome back Eduardo Repetto, Chief Investment Officer of AvantisInvestors. In his leadership capacity, he directs research design and the implementation ofstrategies and oversees the investment team and marketing initiatives. Our conversation kicksoff with Edoardo’s explanation of how Avantis systemizes active management before we diveinto strategies for launching in Europe and beyond. He weighs in on the most significantcapacity issues that people face today, offering solutions to tweak your approach. We touch onwhat makes Avantis strategies preferable for advisors and Eduardo shares his insights on thefuture 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 beforediving deeper into small-cap value in the US and Canada. Tune in today to hear more.Timestamps:0:00:00 Intro0:04:15 Main Topic0:06:51 Main Topic: Eduardo Repetto - Avantis UCITS Launch0:57:05 Aftershow0:59:28 Aftershow: Small-Cap ValueLinks From Today’s Episode:Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — https://x.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — https://x.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — https://x.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreEduardo Repetto on Linkedin — linkedin.com/in/eduardo-repetto-653231155Episode 313 — rationalreminder.ca/podcast/313Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark McGrath on X — https://x.com/MarkMcGrathCFP
Professor Valentin Haddad: How Competitive is the Stock Market? | Rational Reminder 314 The Rational Reminder Podcast 2024-07-18 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpIn 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 researchfocuses 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, wedelve 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 stockmarket 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 Intro0:03:45 How substantial the shift toward passive investing has been over the last 20 years0:07:30 Strategic interactions between investors0:12:43 Why active investors would be limited in their strategic response0:17:25 Defining the aggregate elasticity of an individual stock0:23:56 How aggregate elasticities have changed over time in Valentin's sample0:27:10 The implications of Valentin's findings for how passive investing is affecting asset prices0:32:44 Whether Valentin's findings support the concept of a bubble in large stocks due to flows into index funds0:38:26 The regulatory interventions that make sense to address the impact that passive investors may be having on demand elasticity0:42:41 What investors should do with this information0:46:14 How Valentin defines bubbles in his research0:50:20 How the market value of innovation changes during bubbles0:56:55 The implications of this research for innovation policy1:02:42 What happened in the US investment grade corporate bond market in March of 20201:09:20 Why market participants weren’t stepping in to buy bonds as their prices crashed 1:12:10 The effect did the Fed’s intervention had1:20:48 Valentin defines success in his lifeLinks From Today’s Episode:Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — https://x.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — https://x.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — https://x.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreProfessor Valentin Haddad — sites.google.com/site/valentinhaddadresearchProfessor Valentin Haddad on LinkedIn — linkedin.com/in/valentin-haddad-0056843Professor Valentin Haddad Email — valentin.haddad@anderson.ucla.eduUCLA Anderson School of Management — https://www.anderson.ucla.edu/National Bureau of Economic Research (NBER) — nber.orgEpisode 212: Prof. Ralph Koijen — rationalreminder.ca/podcast/212Papers 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/d1tnvZ5L_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
When Should You Hire a Financial Advisor? | Rational Reminder 313 The Rational Reminder Podcast 2024-07-11 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpLow-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 Intro0:02:38 Main Topic: When Should You Hire A Financial Advisor?0:38:23 AftershowLinks From Today’s Episode:Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — https://x.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — https://x.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — https://x.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreMark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark 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-aroundCenter for Fiduciary Excellence (CEFEX) — cefex.orgPapers 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
Prof. John M. Griffin: Forensic Finance and the Power of Research | Rational Reminder 312 The Rational Reminder Podcast 2024-07-04 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpDiscover 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 Intro0:06:37 John defines Forensic Finance0:09:27 How forensic finance helps balance out hype in areas like crypto0:11:21 John defines a pig butchering scam0:15:47 How scam proceeds typically enter and exit the cryptocurrency network0:21:49 The role “legitimate” crypto exchanges play in criminal activity0:25:27 The magnitude of the criminal activity John is measuring ($75 Billion)0:33:21 How the crypto community responded to John's paper0:36:53 John defines Tether0:41:44 How decentralized the crypto space is (or isn't)0:48:04 If John tested whether tether is backed by other financial assets0:56:33 How prevalent fraud was in the COVID-19 Paycheck Protection Program in the US0:58:55 The role FinTech lenders played in the propagation of PPP fraud1:03:39 The effect PPP fraud had on real estate prices1:08:46 The implications of John's findings with regards to how financial relief efforts should be executed1:13:14 John defines success in his lifeLinks From Today’s Episode:Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — https://x.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — https://x.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — https://x.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreProf. 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/260Papers 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
Is Roaring Kitty a Good Role Model? | Rational Reminder 311 The Rational Reminder Podcast 2024-06-27 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpWhen witnessing the dramatic payouts of miracle trades, it's easy to be lured into thinking thatyour 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'sepisode, 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 weunpack how the recent resurfacing of Roaring Kitty affirms how life-changing payouts are theexception rather than the rule. We dive deeper into trading options and their uses, the tradingdemographics of the current market, why trading options are an expensive choice for retailinvestors, and why people still choose to trade even when doing so at a loss. To end, Ben andCam highlight the dangers of being a copycat and how social media adds fuel to the fire andwe hear some heartwarming Rational Reminder Podcast reviews from a few of our dedicatedlisteners.Timestamps:0:00:00 Intro0:04:00 Main Topic: Trading Options is a Loser’s Game0:21:17 AftershowLinks From Today’s Episode:Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder Email — info@rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — https://x.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — https://x.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — https://x.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreBooks From Today’s Episode:Wealthier: The Investing Field Guide for Millennials — wealthierbook.comPapers 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
Professor Antoinette Schoar: Consumer Finance, Crypto and Private Equity | Rational Reminder 310 The Rational Reminder Podcast 2024-06-20 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpThere 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 Intro0:04:49 How important target date funds have become to the American retirement system0:08:38 How target date funds affected the trading behavior of retail investors0:14:07 How target date funds affected individual stock prices0:17:50 The effect target date funds have on market efficiency0:21:38 How individual beliefs affect how one changes their portfolio in response to new information0:28:24 How much variation there is across households in the risk perception of housing as an investment0:31:09 How individual perceptions of house price risk affects the rent vs. buy decision for housing0:35:36 How people can use this information to make better housing decisions0:38:38 How well financial advisors de-biased their prospective clients in Antoinette's study0:49:03 How reveicing advice affects investors' beliefs0:53:49 How advisor compensation affects how their advice is perceived by the consumer1:00:44 What got Antoinette interested in cryptocurrencies1:07:13 How the trading behavior of retail investors in crypto differs from their trading in other asset classes1:13:57 What caused the Terra Luna collapse1:19:53 What the outcome suggests about the role of regulation in financial system stability1:32:24 Antoinette defines success in her lifeLinks 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/rationalreminderRational Reminder on X — https://x.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — https://x.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — https://x.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreAntoinette Schoar — https://mitsloan.mit.edu/faculty/directory/antoinette-schoarMonika Piazzesi — https://economics.stanford.edu/people/monika-piazzesiPapers 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
Are Robo-Advisors Passive Investors? | Rational Reminder 309 The Rational Reminder Podcast 2024-06-13 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpWhen 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 Intro0:05:38 Main Topic: Are Robo Advisors Passive Investors?0:39:08 Would You Rather?0:45:39 AftershowLinks From Today’s Episode:Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — https://x.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — https://x.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — https://x.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreMark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark McGrath on X — https://x.com/MarkMcGrathCFPWealthsimple — wealthsimple.com/en-caWealthfront — invest.wealthfront.comRational Reminder Episode 308: Dan Bortolotti —Episode 299: The Most Important Lessons in Investing — rationalreminder.ca/podcast/299The Money Scope Podcast — moneyscope.caEpisode 251: Covered Calls — rationalreminder.ca/podcast/251Papers From Today’s Episode:‘Are Banks Better Money Doctors?’ — researchgate.net/publication377037694_Are_banks_better_money_doctors_An_analysis_of_mutual_fund_flows_of_bank_and_non-bank_funds_using_Canadian_data
Dan Bortolotti: The Canadian Couch Potato | Rational Reminder 308 The Rational Reminder Podcast 2024-06-06 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpWhen 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 Intro0:04:48 Dan tells the origin story of the Canadian Couch Potato blog0:09:19 How the availability of index funds in Canada has changed since Dan started his blog0:13:36 How the Couch Potato model portfolios have changed over time0:18:32 The biggest obstacle to successful investing for most people0:21:52 How Dan suggests people approach the stock/bond asset allocation decision0:27:15 What goes into selecting an index fund once someone has decided on an asset allocation0:35:12 How important it is to be clear on financial goals before investing0:37:23 The importance of saving relative to things like fees and performance0:44:49 Whether the importance of financial planning, as opposed to just investing, is appreciated by the DIY investing community0:53:51 How people should make the DIY vs. advisor decision0:58:48 What people should look for in a financial advisor1:02:15 How Dan got connected with PWL1:11:31 Dan defines success in his lifeLinks 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/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreDan Bortolotti — pwlcapital.com/profile/dan-bortolottiDan Bortolotti on LinkedIn — linkedin.com/in/dan-bortolotti-8a482310Canadian Couch Potato Blog — canadiancouchpotato.comCanadian Couch Potato Podcast — canadiancouchpotato.com/podcastLarry Swedroe on LinkedIn — linkedin.com/in/larry-swedroe-18778267Larry Swedroe books on Amazon — amazon.com/Larry-E-Swedroe-Books/s?k=Larry+E.+Swedroe&rh=n%3A283155Books From Today’s Episode:Reboot Your Portfolio: 9 Steps to Successful Investing with ETFs — amazon.ca/Reboot-Your-Portfolio-Successful-Investing/dp/1988344328Wild Blue — amazon.com/Wild-Blue-Natural-History-Largest-ebook/dp/B005BP0E3W
How Much Life Insurance Do You Need? | Rational Reminder 307 The Rational Reminder Podcast 2024-05-30 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpAre 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 Intro0:04:26 Main Topic 1: How Much Life Insurance?0:38:29 Main Topic 2: Principal Residence Exemption0:51:54 "Would You Rather"0:55:17 AftershowLinks From Today’s Episode:Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — https://x.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — https://x.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — https://x.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreMark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark 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.caEpisode 65: Dr. Wendall Mascarenhas — rationalreminder.ca/podcast/65Dimensional Fund Advisors — dimensional.comMoney Scope Podcast — moneyscope.caBraden Financial Services — bradenfinancialservices.comHendry Warren on LinkedIn — linkedin.com/company/hendry-warren-llpBrady Plunkett on LinkedIn — linkedin.com/in/brady-plunkett-712489105Capital Gains Calculator for Non-Corporations — https://research-tools.pwlcapital.com/research/realize-gainEpisode 305 - Is Private Credit Special? — rationalreminder.libsyn.com/episode-305-is-private-credit-special
Wei Dai: Fighting for Every Basis Point | Rational Reminder 306 The Rational Reminder Podcast 2024-05-23 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpDesigning 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 Intro0:04:46 The main risk premiums that Dimensional targets in portfolios0:06:51 How the magnitudes of the expected size, value, and profitability premiums vary across regions0:10:27 Some typical approaches to pursuing multiple premiums in a portfolio0:12:41 The main trade-offs with these different approaches0:19:54 Some of the ways to approach assigning individual security weights, given a desired level of factor exposure0:22:43 How Dimensional approaches assigning individual security weights0:30:42 How investors should decide whether to currency hedge their foreign asset exposures0:35:13 Why timing exposure to the premiums is so tempting0:40:31 The timing strategies that worked in Wei's research0:48:27 The implications of this research when pursuing premiums0:50:50 The importance of diversification to capturing the premiums0:56:20 What investors should look for when choosing a systematic manager1:07:09 How reversals are related to liquidity1:12:20 How Dimensional uses all of this information in portfolios1:21:22 Wei defines success in her lifeLinks 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/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreWei Dai on Linkedin — linkedin.com/in/wei-dai-64a3071aWei Dai’s Academic Papers — papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=2888456Dimensional Fund Advisors — dimensional.comPapers From Today’s Episode:Assessing the Relative Magnitude of Premiums — papers.ssrn.com/sol3/papers.cfm?abstract_id=3981766Pursuing Multiple Premiums: Combination vs. Integration — papers.ssrn.com/sol3/papers.cfm?abstract_id=3793594Weighting for the Right One: Weighting Scheme Design for Systematic Equity Portfolios — papers.ssrn.com/sol3/papers.cfm?abstract_id=4016481To 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=3703333Another Look at Timing the Equity Premiums — papers.ssrn.com/sol3/papers.cfm?abstract_id=4586684Premium Timing with Valuation RatiosHow Diversification Impacts Investment Outcomes: A Case Study on Global Large CapsHow 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=3686987Reversals and the returns to liquidity provision — papers.ssrn.com/sol3/papers.cfm?abstract_id=4339591
Is Private Credit Special? | Rational Reminder 305 The Rational Reminder Podcast 2024-05-16 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpWebinar May 22nd: Optimal Compensation Strategies for Business Owners — us06web.zoom.us/webinar/register/3317145039436/WN_GYudVJCYSnyF8HfUx9UbJQPrivate credit is one of the fastest-growing asset classes, and today we take a closer look atwhy that is, and if it’s really worth the hype. When you invest in private credit, you areessentially 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 withilliquidity. It is traditionally traded among institutional and accredited investors, rather than retailinvestors, namely, non-professional investors. Since private credit has gained so muchpopularity in recent years, we use today’s conversation to unpack how private credit works, therole of private credit funds, the associated performance fees and risks, and what retail investorsshould know about this asset class before deciding to invest. Our conversation investigates oneof the top reasons for private credit’s rise in popularity, namely risk-adjusted returns, beforeevaluating whether this is a worthwhile reason to invest, depending on who you are. Stay tunedfor our after-show section where we discuss the proposed changes to the capital gains tax, whythe death of value could be exaggerated, and more!0:00:00 Intro0:02:49 Main Topic: Private Credit0:38:29 Main Topic 2: Capital Gains Budget Changes Revisited0:42:46 AftershowLinks 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/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreMark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark McGrath on X — twitter.com/MarkMcGrathCFPMoney Scope Episode 12 — moneyscope.ca/2024/04/19/episode-12-paying-yourself-as-a-canadian-business-ownerMoney Scope Episode 13 — moneyscope.ca/2024/04/26/episode-13-optimal-compensation-from-a-ccpcDavid Chilton — thewealthybarber.comDavid Chilton on X — twitter.com/wealthy_barber?lang=enBooks From Today’s Episode:The Wealthy Barber: Everyone's Commonsense Guide to Becoming Financially Independent —amazon.com/Wealthy-Barber-Updated-3rd-Commonsense/dp/0761513116Papers 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
Budget 2024: The Capital Gains Inclusion Rate | Rational Reminder 304 The Rational Reminder Podcast 2024-05-09 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpThe 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 Intro0:03:48 Main Topic: Planning for an Increasing Capital Gains Tax0:51:26 AftershowLinks From Today’s Episode:Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreMark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark McGrath on X — twitter.com/MarkMcGrathCFPCapital Gains Calculator — research-tools.pwlcapital.com/research/realize-gainEpisode 224 — rationalreminder.ca/podcast/224Episode 284 — rationalreminder.ca/podcast/284Episode 299 — rationalreminder.ca/podcast/299Episode 302 — rationalreminder.ca/podcast/302Canadian Medical Association — cma.caThe Money Scope Podcast — moneyscope.caThe Most Important Lessons in Investing — youtube.com/watch?v=MOjS2zuQMdoDan Solin — danielsolin.comCompensation Strategies for Canadian Business Owners — pwlcapital.comcompensation-strategies-for-canadian-business-owners2/Books From Today’s Episode:The Wealthy Barber — amazon.com/Wealthy-Barber-Updated-3rd-Commonsensedp/0761513116
Scott Galloway: The Algebra of Wealth | Rational Reminder 303 The Rational Reminder Podcast 2024-05-02 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpWhat 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 Intro0:04:07 How economic stress when Scott was growing up shaped his life0:06:14 Scott defiines the algebra of wealth0:11:40 Why the pursuit of wealth is a whole person project0:14:55 What people can do to defend against modern temptations0:21:06 How working hard is different from having character0:27:13 How Scott's awareness of his own luck impacted his financial decision-making0:33:32 How Scott thinks about “enough”, when we are programmed for more0:39:14 Why people should follow their talent, rather than their passion0:45:39 How important physical exercise is to financial success0:49:08 The role Scott sees for professional financial planners0:55:28 How people should think about opportunities to invest in private businesses0:57:57 How people should respond when everyone else is excited about an investment1:02:00 The most beneficial ways to trade money for time1:08:27 Scott's greatest worries, financially speaking, about his kids1:10:31 Scott Defines Success in His LifeLinks 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/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreScott Galloway — profgmedia.comScott Galloway Books — profgmedia.com/booksScott Galloway on LinkedIn — linkedin.com/in/profgallowayScott Galloway on Twitter — twitter.com/profgallowayNo Mercy No Malice — profgalloway.comPivot with Scott Galloway and Kara Swisher — profgmedia.com/pivotThe Prof G Pod with Scott Galloway — profgmedia.com/the-podBooks From Today’s Episode:The Algebra of Wealth: A Simple Formula for Financial Security — amazon.com/Algebra-Wealth-Formula-Financial-Security/dp/0593714024
Michael Green: Market Efficiency Is Not The Question | Rational Reminder 302 The Rational Reminder Podcast 2024-04-25 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpWith 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 Intro0:06:49 The effect the growth of indexing has on markets0:08:46 The XIV trade that strengthened your belief in this view0:15:29 Beyond the XIV trade, the evidence we have that indicates this is a problem0:19:07 How we know that index funds have less elastic demand than the counterfactual security holders in the absence of index funds0:21:37 Why flows into a cap weighted index fund are different from flows into the aggregate of active, which holds the market0:31:54 How much of an issue this is in markets outside of the US0:33:46 How systematic firms like Dimensional and Avantis, that tilt away from cap weights, fit into these dynamics0:40:55 How the issue created by index fund ownership is distinct from market efficiency0:46:55 How investors should change their strategy in response to the current market structure0:53:54 As a portfolio manager, how Mike incorporates his views on passive into investment strategies0:59:20 Whose responsibility it is to fix these market structure problems1:05:39 Separate from the index fund effects, what Mike's outlook on US equity expected returns is1:09:04 Why Bitcoin isn’t the solution to all monetary and fiscal policy problems1:12:50 Mike Defines Success in His LifeLinks From Today’s Episode:Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmore‘Yes, I give a fig… Thoughts on markets from Michael Green’ — yesigiveafig.comMichael Green on Substack — substack.com/@michaelwgreenMichael Green on LinkedIn — linkedin.com/in/michael-green-9a15142Michael Green on X — twitter.com/profplum99Books From Today’s Episode:The Black Swan — amazon.com/dp/081297381XAdaptive Markets — amazon.com/dp/0691135142Papers 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
Prof. Meir Statman: A Wealth of Well-Being | Bonus Episode The Rational Reminder Podcast 2024-04-19 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpToday, 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 Intro0:00:30 How life well-being fits into the study of behavioral finance0:06:10 The role do finances play in life well-being0:11:02 The role do Meir sees for financial advisors in improving their clients’ life well-being0:16:28 The importance to life well-being that someone’s financial capital is relative to the people around them0:19:53 How the gap between what we have and what we aspire to have affects life well-being0:22:32 Whether too much self-control can impact life well-being0:26:17 How finances affect dating and marriage0:29:11 The role work plays in well-being0:31:40 The effect education has on life well-being0:39:22 How religion affects life well-beingLinks 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/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreProf. 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/258Books From Today’s Episode:A Wealth of Well-Being — amazon.com/Wealth-Well-Being-Holistic-Approach-Behavioral/dp/1394249675
Optimal Government Pension Claiming | Rational Reminder 301 The Rational Reminder Podcast 2024-04-18 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpIn 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 Intro0:04:23 Main Topic: When should you claim CPP benefits?0:55:49 AftershowLinks From Today’s EpisodeRational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.ca Rational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreMark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark McGrath on X — twitter.com/MarkMcGrathCFPWhen Should You Start CPP? — youtube.com/watch?v=r9vYji99fhkThe Canadian Institute of Actuaries (CIA) — cia-ica.caSociety of Actuaries (SOA) — soa.orgFP Canada — fpcanada.caWhen Should You Start CPP? — youtube.com/watch?v=r9vYji99fhkCE Drive with Jason Watt — cedrive.podbean.comEpisode 137: David Blanchett: Researching Retirement — rationalreminder.ca/podcast137Episode 254: David Blanchett: Regret Optimized Portfolios and Optimal Retirement Income —rationalreminder.ca/podcast/254Episode 289 - Retiring Retirement Income Myths with the Retirement Income Dream Team —rationalreminder.ca/podcast/289Jason Yi on LinkedIn — linkedin.com/in/jason-yi-cpa-ca-56544446Episode 225: The Index Fund "Tipping Point” — rationalreminder.ca/podcast/225Books From Today’s Episode:Wealthier — wealthierbook.comThe Algebra of Wealth — amazon.com/Algebra-Wealth-Formula-Financial-Securitydp/0593714024Sleep 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/4a223fglobalassets/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
Abby Sussman: Financial Judgment and Decision Making | Rational Reminder 300 The Rational Reminder Podcast 2024-04-11 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpIn 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 Intro0:05:13 How the way people evaluate their own wealth differs from how they evaluate the wealth of others0:07:24 Whether having complete information about the other person’s balance sheet resolves the differences in perception0:10:57 The effect this difference has on how people plan for the future0:15:09 How someone’s beliefs about their future wealth affect their financial decisions0:21:47 How people can use this information to make better financial decisions0:24:09 The problems that stem from inaccurate expense prediction0:33:45 The interventions that can be used to reduce expense prediction bias0:38:50 How common budgeting is in general0:44:24 How frequently people reconcile their actual spending with their budgets0:48:42 How people respond to having too much or too little slack in their budgets0:52:48 How attitudes toward debt and investment products vary across consumers0:59:39 The areas of consumer financial decision making research Abigail thinks will be most impactful in the future1:07:38 Abigail Defines Success in Her LifeLinks From Today’s Episode:Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreAbby Sussman on LinkedIn — linkedin.com/in/abigail-sussman-ab4427Abby Sussman on X — twitter.com/abbysussmanThe University of Chicago Booth School of Business — https://www.chicagobooth.edu/Society for Judgment and Decision Making — sjdm.orgEpisode 153: Prof. Johanna Peetz — rationalreminder.ca/podcast/153Epidose 296: Adam Alter — rationalreminder.ca/podcast/296Panel Study of Income Dynamics — https://psidonline.isr.umich.edu/Consumer Financial Protection Bureau — consumerfinance.govPapers 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 ExceptionalExpenses’ — 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
300th Episode | Rational Reminder The Rational Reminder Podcast 2024-04-11 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpJoin 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!
The Most Important Lessons in Investing | Rational Reminder 299 The Rational Reminder Podcast 2024-04-04 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpIn 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-h3pTimestamps:0:00:00 Intro0:04:26 Main Topic: The Most Important Lessons in Investing0:05:33 #1: You're not That Smart Relative to the Market0:08:45 #2: This Time is Always Different0:12:09 #3: The Market is Forward-Looking0:13:55 #4: Market Forecasts are not Useful0:15:34 #5: Time in the Market Beats Timing the Market0:18:06 #6: Most Funds do not Beat the Market0:21:39 #7: Incentives Matter0:28:06 #8: Expected Economic Growth and Stock Returns are not Related0:30:41 #9: Good Portfolio Management does not Make up for Bad Financial Planning0:34:24 #10: Risk and Expected Returns are Positively Related0:36:17 #11: The Risk-Expected Return Trade-Off has a Term Structure0:39:07 #12: Fees and Taxes Matter0:45:21 #13: Complexity and Costs are Positively Related0:47:19 #14: There is no Single Optimal Investment Strategy0:50:44 #15: The Best Investment Strategy for You is the One that You can Stick With0:52:56 #16: There is no Such Thing as a "Passive" Investment0:57:49 #17: Wealth does not Give You Access to Market-Beating Investments1:00:29 #18: Diversification is the Only Free Lunch in Investing1:07:11 #19: Investments Should Be Evaluated on Process, not Outcome1:09:27 #20: Investing has been Solved1:11:21 AftershowLinks From Today’s Episode:Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreMark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark McGrath on X — twitter.com/MarkMcGrathCFPThe Economist — economist.comARK Invest — ark-funds.comThe Canadian Investor Podcast — thecanadianinvestorpodcast.comEpisode 257: Giorgio Ugazio (Mr. RIP) — rationalreminder.ca/podcast/257Mr. RIP on YouTube — youtube.com/@mr_ripThe 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/1394249675Wealthier — wealthierbook.comPapers 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
Randall Stutman: Admired Leadership for Financial Decision-Making | Rational Reminder 298 The Rational Reminder Podcast 2024-03-28 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpDr. 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 Intro0:04:05 The Typical Approach to Leadership Development0:06:27 Why the Typical Approach does Real Damage0:11:47 How Everyone in an Organization can be an Admired Leader0:18:18 How Consensus Decision Making can Hurt an Organization0:26:07 Other Shortcomings in the Decision Process0:31:13 How a Financial Advisor Should Act like an Admired Leader0:38:54 The Traits of an Admired Leader Should a Financial Consumer Bring to the Relationship with their Advisor0:43:17 The Best Way to Deliver Feedback in an Advisory Relationship0:46:42 How Often an Advisor Should Connect With a Client to Effectively Build a Relationship0:52:17 How Randall Would Motivate Kids to get Involved in the Financial Decision Making Process0:59:37 Whether or not Most People are Self-Motivated1:05:14 Randall Defines Success in His LifeLinks From Today’s Episode:Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreAdmired Leadership Institute — admiredleadership.comEpisode 238: Prof. Ralph Keeney — rationalreminder.ca/podcast/238Books From Today’s Episode:Working Through Conflict: Strategies for Relationships, Groups, and Organizations — https://www.amazon.com/dp/0367461471Communication in Legal Advocacy (Studies in Communication Process) — https://www.amazon.com/dp/B09T21F8KX
Do Stocks Return 10-12% On Average? & Zero to Millionaire w/ Nicolas Bérubé | Rational Reminder 297 The Rational Reminder Podcast 2024-03-21 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpAs human beings, our brains are wired to solve problems. This can make long-term investmentstrategies, like passive investing, surprisingly challenging, especially if you’re not accustomed tothe ups and downs of the market – it can feel pretty unintuitive to stay the course when yourinstinct is to take more active steps to solve the problem! So, how can investors remain firm intheir strategy and not get spooked by market changes? Joining us today to unpack this questionis financial journalist, Nicolas Bérubé, whose new book From Zero to Millionaire: A Simple andStress-Free Way to Invest in the Stock Market serves as a guide to investors on how to growtheir wealth and achieve good portfolio diversification at a low cost. We talk with him about thecontents of his book, his observations on financial media and its effect on investors, how to staycommitted when making long-term investments, and more. We also spend the top half of theshow discussing a popular idea we’ve seen posted by influencers online, namely that investingin stocks will give you a return of 10% or more per year on average, and the flaws in theirarguments. Tune in for a deep dive into investor psychology, financial media, and much more!Timestamps:0:00:00 Intro0:01:48 Main Planning Topic: Do Stocks Return 10% on Average?0:38:23 Special Guest: Nicholas Berube1:09:55 AftershowLinks From Today’s Episode:Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreMark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark McGrath on X — twitter.com/MarkMcGrathCFP24 in 24 Reading Challenge — rationalreminder.ca/24in24Nicolas Bérubé on LinkedIn — linkedin.com/in/nicolas-b%C3%A9rub%C3%A9-27b9b111b/From Zero to Millionaire — fromzerotomillionaire.comThe Motley Fool — fool.comRob Carrick — theglobeandmail.com/authors/rob-carrickAndrew Hallam — andrewhallam.comSomebody Feed Phil — imdb.com/title/tt7752034Everybody Loves Raymond — imdb.com/title/tt0115167Shake Shack — shakeshack.com/#Figure 01 AI Robot Video on LinkedIn — linkedin.com/feed/updateurn: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.comThe Algebra of Wealth: A Simple Formula for Financial Security — amazon.comAlgebra-Wealth-Formula-Financial-Security/dp/0593714024A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing — https://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393358380Everyone Believes It; Most Will Be Wrong: Motley Thoughts on Investing and the Economy —amazon.com/Everyone-Believes-Most-Will-Wrong-ebook/dp/B00655BGBGThe One-Page Financial Plan: A Simple Way to Be Smart About Your Money — https://www.amazon.com/One-Page-Financial-Plan-Simple-Smart/dp/1591847559Setting the Table: The Transforming Power of Hospitality in Business — https://www.amazon.com/Setting-Table-Transforming-Hospitality-Business/dp/0060742763Papers From Today’s Episode:‘The Equity Premium’ — onlinelibrary.wiley.com/doi/full/10.1111/1540-6261.00437Scott Cederburg research: ‘Long-Horizon Losses in Stocks, Bonds, and Bills: Evidencefrom a Broad Sample of Developed Markets’ — https://www.paris-december.eu/sites/default/files//papers/2023/4393_scederburg_2023_complete.pdfJules H. Van Binsbergen Paper: Is The United States A Lucky Survivor: A HierarchicalBayesian Approach — https://rodneywhitecenter.wharton.upenn.edu/wp-content/uploads/2020/12/30-20.Wachter.VanBinsbergen.pdf
Adam Alter: The Anatomy of a Breakthrough | Rational Reminder 296 The Rational Reminder Podcast 2024-03-14 | Feeling stuck is a common human experience and almost all of us will go through it at some point in our lives. Whether it’s relationship struggles, dissatisfaction with work, an inability to progress financially, or a pending midlife crisis, all of these situations can bring up a range of mixed emotions like anxiety, fear, anger, and even numbness. We are joined today by Adam Alter, whose new book Anatomy of a Breakthrough: How to Get Unstuck When It Matters Most serves as a much-needed guide to help readers escape inertia and flourish in the face of freedom. Adam is a professor of marketing at New York University's Stern School of Business with an affiliated appointment in the New York University Psychology Department. His research is primarily focused on judgment, decision-making, and social psychology, and his two previous books, Irresistible and Drunk Tank Pink, are both highly acclaimed New York Times best-sellers. In today’s episode, we talk with Adam about the concept behind Anatomy of a Breakthrough, the many forms that feeling stuck can take, and what he has learned about getting unstuck. Tuning in you’ll learn about the fundamentals of goal-setting, why striving for excellence is infinitely more sustainable than settling for nothing less than perfection, and how learning to enjoy the journey will help you find meaning and avoid the aimlessness that can come after achieving your goal. We also get into the nature of breakthroughs, the role of luck and creativity, plus a whole lot more. To hear all of Adam’s thought-provoking insights and practical advice on getting unstuck, be sure to tune in!Timestamps:0:00:00 Intro0:03:47 What it means to be stuck0:06:27 What being financially stuck looks like0:12:12 Whether or not people can be stuck in their general well-being0:14:12 Why people tend to question their lives on the arrival of a new decade0:21:02 Adam explains what "Lifequakes" are0:27:18 How one can prepare for the inevitable lifequakes we will have in our lives0:31:56 How creativity affects a breakthrough0:37:35 The role that luck plays in breakthroughs0:43:05 The practical difference between striving for excellence and perfection0:50:18 The risks of being incapable of reaching the pinnacle of your own definition of success0:55:44 How individuals should process the successes of other people0:58:25 Dan defines success in his lifeLinks 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/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreAdam Alter — adamalterauthor.comAdam Alter on LinkedIn — linkedin.com/in/adamleealterAdam Alter on Twitter — twitter.com/adamleealterHal Hershfield — halhershfield.comBruce Feiler — brucefeiler.comBooks From Today’s Episode:Anatomy of a Breakthrough — adamalterauthor.com/anatomyIrresistible — adamalterauthor.com/irresistibleDrunk Tank Pink — adamalterauthor.com/drunk-tank-pink
Home Country Bias, Seg Funds, and Todd Rogers on Writing for Busy Readers | Rational Reminder 295 The Rational Reminder Podcast 2024-03-07 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpIn 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 Intro0:01:38 Main Topic: Home Country Bias0:14:48 Eugene Fama Clip0:15:14 Main Topic Continued0:31:25 Mark to Market0:53:37 Episode 206: 60 Seconds0:54:24 Special Guest: Todd Rogers1:32:18 AftershowLinks 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/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreMark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark McGrath on X — twitter.com/MarkMcGrathCFP Home-country Bias YouTube Video — youtube.com/watch?v=qYedjI03Q0gAssuris — assuris.caCanadian Investor Protection Fund — cipf.caThe Money Scope Podcast — moneyscope.caProfessor Vanessa Bohns — vanessabohns.comProfessor Vanessa Bohns on X — twitter.com/profbohnsProfessor Vanessa Bohns on Instagram — instagram.com/profbohnsProfessor Vanessa Bohns on LinkedIn — linkedin.com/in/vanessa-bohns-33219710Professor Vanessa Bohns on Goodreads — goodreads.com/author/show/21035835.Vanessa_BohnsTodd Rogers on LinkedIn — linkedin.com/in/todd-rogers-6ba447Todd Rogers on X — twitter.com/Todd_Rogers_Harvard University — https://www.harvard.edu/Analyst Institute — analystinstitute.orgEveryDay Labs — everydaylabs.comThe Behavioural Insights Team — https://www.bi.team/Behavioral Science & Policy Association (BSPA) — behavioralpolicy.orgSix Principles Checklist — GPT-4 — openai.com/research/gpt-4Women's Wealth: Investing Basics for Women Webinar — us06web.zoom.us/webinar/register/8217079363034/WN_aVV7ElsLS6aVGd-cpBHw3ABooks From Today’s Episode:You Have More Influence Than You Think — amazon.com/dp/1324005718Writing for Busy Readers — amazon.com/Writing-Busy-Readers-Communicate-Effectively/dp/0593187482Index Funds: The 12-Step Recovery Program for Active Investors — amazon.com/Index-Funds-12-Step-Recovery-Investors-ebook/dp/B0CL2Z23CTThe Elements of Style — amazon.com/Elements-Style-Fourth-William-Strunk/dp/020530902XThe Psychology of Money — amazon.com/Psychology-Money-Timeless-lessons-happiness/dp/0857197681The Fund — amazon.com/Fund-Bridgewater-Associates-Unraveling-Street/dp/1250276934Anatomy of a Breakthrough — amazon.com/Anatomy-Breakthrough-Unstuck-When-Matters/dp/1982182962The Score That Matters — amazon.com/Score-That-Matters-Excellence-Yourself-ebook/dp/B0CGZ8HRXDThe Algebra of Wealth — amazon.com/Algebra-Wealth-Formula-Financial-Security/dp/0593714024Papers 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
Dan Harris: 10% Happier | Rational Reminder 294 The Rational Reminder Podcast 2024-02-29 | Meet with PWL Capital: calendly.com/d/cpws-jyp-znpIn 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 Intro0:05:55 Dan talks about his journey as a journalist, through self-help then to meditation0:08:05 Dan describes the practice of meditation0:12:08 The science to back up claims of meditation0:18:51 Dan describes his difficulty in gaining an appreciation of meditation0:28:00 How one could start the practice of meditation0:32:20 How meditation can help people avoid spending their time and money today, at the expense of their future0:32:18 Based on discussions with current and former employees, Rob describes the experience of working at Bridgewater0:37:19 How meditational has influenced Dan's financial decision-making0:43:59 How much agency people have to affect their own personal happiness0:50:46 What led Dan to leave ABC news and dedicate himself to 10% Happier0:54:34 The podcast guests that had the biggest impact on Dan1:00:15 Dan defines success in his lifeLinks From Today’s Episode:Dan Harris — danbharris.komi.ioDan Harris on X — twitter.com/danbharrisDan Harris on Instagram — instagram.com/danharrisDan Harris on Facebook — facebook.com/DanHarrisABCDan Harris on YouTube — youtube.com/c/TenPercentHappierDan Harris on TikTok — tiktok.com/@danbharris10% Happier — tenpercent.com10% Happier — goodreads.com/en/book/show/18505796‘Finding and Funding a Good Life’ — pwlcapital.com/finding-and-funding-a-good-lifeTen Percent Happier Podcast — tenpercent.com/podcastDan Harris: Celebrating 10 Years of 10% Happier — symphonyspace.org/events/vp-dan-harris-10-happier-10-year-anniversaryEmma Seppälä — emmaseppala.comDalai Lama — dalailama.comJoseph Goldstein — dharma.org/teacher/joseph-goldsteinRational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — rationalreminder.ca Rational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmore
Eric Balchunas: Spot Bitcoin ETFs | Rational Reminder 293 The Rational Reminder Podcast 2024-02-22 | After a year and a half hiatus from discussing Bitcoin, we felt compelled to explore the implications of the US Securities and Exchange Commission's approval of 10 spot Bitcoin ETFs for trading. In this episode, we dive into the recent news surrounding Bitcoin and its entry into the mainstream investment landscape through spot Bitcoin ETFs. To help us unpack this topic is Eric Balchunas, a seasoned ETF analyst at Bloomberg Intelligence and host of the Trillions Podcast. Eric brings a wealth of knowledge on ETFs and offers valuable insights into the intersection between traditional financial markets and the cryptocurrency space. Join us as we discuss the implications of Bitcoin ETFs trading on regulated exchanges and the impact on its overall anti-establishment identity, the intricacies of approved cash creation and redemption limitations, what Bitcoin ETFs are backed by, the transparency and potential vulnerabilities of Bitwise, and the complexities of navigating anti-money laundering aspects within Bitcoin transactions. You’ll learn how financial advisors are likely to leverage spot Bitcoin ETFs, who stands to benefit the most from Bitcoin ETFs, the broader implications for the investment landscape, why Bitcoin is like Tabasco sauce, and more! Tune in for a captivating exploration of Bitcoin's journey into the mainstream investment arena, with Eric Balchunas.Timestamps:0:00:00 Intro0:04:58 Special Guest: Eric Balchunas0:05:15 Why Canada was so far ahead of the US on launching a spot Bitcoin ETF0:09:18 Whether anything actually changed in ETF regulations to allow a spot Bitcoin ETF0:14:46 Whether spot Bitcoin ETF units are actually backed by Bitcoin0:22:57 How authorized participants deal with AML considerations when they transact in Bitcoin0:26:39 What the magnitude of net flows into Bitcoin ETFs has looked like0:37:07 What being allowed in an ETF wrapper does for Bitcoin0:44:11 Who will benefit the most from spot Bitcoin ETFs0:51:30 What Eric thinks about Vanguard’s decision not to allow spot Bitcoin ETFs on the platform0:55:42 How we will see financial advisors use spot Bitcoin ETFs in clients’ portfoliosLinks From Today’s Episode:The Bogle Effect — amazon.com/Bogle-Effect-Vanguard-Investors-Trillions/dp/1637740719Eric Balchunas on LinkedIn — linkedin.com/in/ericbalchunasEric Balchunas on X — twitter.com/EricBalchunasBloomberg — bloomberg.comTrillions Podcast — bloomberg.com/podcasts/series/trillionsU.S. Securities and Exchange Commission — sec.govBitwise — bitwiseinvestments.comBitwise Bitcoin ETF — sec.gov/Archives/edgar/data/1763415/000199937124000346/bitcoin-424b3_011024.htmCoinbase — coinbase.comBlackRock — blackrock.comGrayscale Bitcoin Trust ETF (GBTC) — etfs.grayscale.com/gbtcVanguard — investor.vanguard.comBitcoin — bitcoin.orgRational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — rationalreminder.ca Rational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmore
Rob Copeland: Ray Dalio and Bridgewater | Rational Reminder 292 The Rational Reminder Podcast 2024-02-15 | In this episode, we welcome Rob Copeland, author of the recently released book The Fund: Ray Dalio, Bridgewater Associates, and the Unraveling of a Wall Street Legend. Rob, a finance reporter for The New York Times, provides a gripping account of the rise and unravelling of Ray Dalio and Bridgewater Associates. Bridgewater Associates, one of the prominent hedge funds on the planet, is synonymous with the legendary investor Ray Dalio. In our conversation, we delve into the intricacies of the company's investment portfolio, shedding light on the details that contribute to its success, and dissect Ray's supposedly revolutionary model of economic cycles. Discover the unconventional principles that shape Bridgewater's culture, from believability to radical transparency, and get a sneak peek into the bizarre Dot Collector app that fuels the company's operations. Gain insights into employee experiences at the company, the secret sauce to Ray’s success, the company’s track record in predicting market crashes, undisclosed aspects of Ray’s success story, and much more! Tune in now!Timestamps:0:00:00 Intro0:07:47 How much of the Bridgewater organization is dedicated to investment management0:10:36 How Dalio’s model of economic cycles affects Bridgewater’s investment approach0:14:17 How successful Dalio has been at predicting market crashes0:16:54 The role have actual investment results played in Bridgewater’s success0:18:45 Dalio’s Principles0:23:05 How important the Principles are to Bridgewater’s success0:38:43 What the dot collector app at Bridgewater does0:32:18 Based on discussions with current and former employees, Rob describes the experience of working at Bridgewater0:35:56 The actions Dalio has taken to create his public-facing image0:42:35 How Dalio explains his own success0:44:28 What the response to the book from readers has been0:46:32 What explains Bridgewater's success0:52:06 What main message Rob hopes people take away from reading his bookLinks From Today’s Episode:Rob Copeland on LinkedIn — linkedin.com/in/real-rob-copelandRob Copeland on X — twitter.com/realrobcopelandThe New York Times — nytimes.comThe Fund — static.macmillan.com/static/smp/the-fundBridgewater Associates — bridgewater.comPrinciples — amazon.com/Principles-Life-Work-Ray-Dalio/dp/1501124021Doom: The Politics of Catastrophe — amazon.com/Doom-Politics-Catastrophe-Niall-Ferguson/dp/0593297377The Dot Collector — principles.com/principles/3290232e-6bca-4585-a4f6-66874aefce30Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — rationalreminder.ca Rational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmore
The Quant Winter, and is Canada Pension Plan a Scam? | Rational Reminder 291 The Rational Reminder Podcast 2024-02-08 | Are you ready for a deep dive into quantitative investing, the private credit trend, and the Canada Pension Plan (CPP)? Then this episode is for you! Joining us today is Robin Wigglesworth, The Financial Times’ global finance correspondent, and author of Trillions: How a Band of Wall Street Renegades Invented the Index Fund and Changed Finance Forever, a groundbreaking book about the past, present, and future of passive investing. We talk with Robin about quantitative investing and the ideas he lays out in his article ‘A Quant Winter’s Tale’, before hearing his insights on the private credit trend and his intriguing new book titled Bonds, all about the history of the bond market. Today’s episode also features our Mark to Market segment, where Mark McGrath joins us to talk about the Canada Pension Plan (CPP), providing a comprehensive overview of its inner workings, his response to the criticisms levelled against it, and why he believes it’s of huge benefit to a great many Canadians. Next, we take a look back at our conversation with Alexandra Macqueen on annuities before sharing our thoughts on its relevance to today’s discussion and why it’s worth revisiting. Be sure to stay tuned for our after-show segment where we share our book, blog, and viewing recommendations, plus our favourite reviews, followed by a sneak peek of some of the exciting guests we have coming up. Press play now for a deep dive into quant investing, the hype around private credit, saving for retirement, and a whole lot more!Timestamps:0:00:00 Intro0:04:52 Main Topic: Quant Winter0:06:19 Special Guest: Robin Wigglesworth0:48:23 Mark to Market1:13:10 Episode 59: 60 Seconds1:15:05 AftershowLinks From Today’s Episode:Robin Wigglesworth — robinwigglesworth.comRobin Wigglesworth on LinkedIn — linkedin.com/in/robin-wigglesworth-17101722Financial Times — ft.comTrillions: 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-b170-2c40e40d2835Episode 184: Robin Wigglesworth — rationalreminder.ca/podcast/184Episode 93: Cliff Asness from AQR — rationalreminder.ca/podcast/93Cliff Asness — aqr.com/About-Us/OurFirm/Cliff-Asness-BioAQR — aqr.comTwo Sigma — twosigma.comD.E Shaw — deshaw.comCPP Investments — cppinvestments.comStatsCan — statcan.gc.ca/en/startFinancial 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-e116Episode 59: Alexandra Macqueen — rationalreminder.ca/podcast/59Pensionize Your Nest Egg — amazon.com/Pensionize-Your-Nest-Egg-Allocation/dp/1119025257Griselda Blanco — imdb.com/title/tt15837600Cocaine Cowboys — imdb.com/title/tt0380268Queen of the South — imdb.com/title/tt1064899Fortune's Children: The Fall of the House of Vanderbilt — amazon.com/Fortunes-Children-Fall-House-Vanderbilt/dp/0062224069Farnam Street — https://fs.blog/24 in 24 Reading Challenge — rationalreminder.ca/24in24The Money Scope Podcast — moneyscope.caThe Money Scope Podcast on YouTube — youtube.com/@moneyscopepodRational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — rationalreminder.ca Rational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreMark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark McGrath on X — twitter.com/MarkMcGrathCFP
Morgan Housel: Same as Ever | Rational Reminder 290 The Rational Reminder Podcast 2024-02-01 | In this episode, we are joined, for the third time, by renowned author and commentator Morgan Housel. Many of you are familiar with Morgan's bestseller, The Psychology of Money, and he is back to discuss his latest book, Same as Ever: A Guide to What Never Changes. He is also the partner at The Collaboration Fund, a network of fund managers investing across asset classes while identifying and supporting companies at the intersection of for-profit and for-good. In our conversation, we delve into the timeless principles that shape our perspectives of the world and why things are the Same as Ever. We discuss the importance of holding cash, challenging traditional analytical approaches and encouraging a broader reflection on life beyond numbers. Discover the recurrent nature of once-in-a-lifetime events, the pitfalls associated with the insatiable desire for certainty, the value and power of storytelling, and the complex interplay between incentives and expectations. Gain insights into the value of forecasting behaviours instead of market dynamics, why pessimism is more common and more captivating than optimism, embracing slight inefficiencies on the path to success, and much more! Don't miss this engaging discussion with a master storyteller and gain new perspectives on finance, human behaviour, and the principles that remain the Same as Ever with Morgan Housel. Tune in now!Timestamps:0:00:00 Intro0:03:56 Why it is important for people to understand the things that never change0:06:34 How important random, seemingly inconsequential events are to the way that the future unfolds0:14:08 How Morgan has thought about the goalposts moving as his financial situation has changed0:18:21 The problems that stem from the desire that people have for certainty0:21:03 How important stories are to the way that we understand the world0:27:50 Why things that can’t be measured are important to how we think about the future0:33:30 Why success plants the seeds of its own decline0:37:14 Why investors try to squeeze too much return too soon out of their investments0:45:52 Whether or not eliminating stress and adversity from life is a good objective0:50:40 How much hassle and nonsense people should be prepared to deal with on the path to success0:54:49 How should use optimism and pessimism to inform their long-term decisions1:00:37 Why people often think that the grass is greener in other peoples’ lives or businesses1:08:05 How personal experience shapes how people see the world1:12:45 The most important lesson Morgan learned from writing his bookLinks From Today’s Episode:Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582Rational Reminder Website — rationalreminder.ca Rational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreMorgan Housel — morganhousel.comMorgan Housel on LinkedIn— linkedin.com/in/morgan-housel-5b473821Morgan Housel on X — twitter.com/morganhouselMorgan Housel on Instagram — instagram.com/morganhouselThe Morgan Housel Podcast — podcasts.apple.com/us/podcast/the-morgan-housel-podcast/id1675310669Collaborative Fund — collabfund.comCollab Blog — collabfund.com/blogEpisode 128: Morgan Housel — rationalreminder.ca/podcast/128Episode 191: Emerging Markets — rationalreminder.ca/podcast/191Episode 224: Scott Cederburg — rationalreminder.ca/podcast/224Books From Today’s Episode:Sapiens — amazon.com/Sapiens-Humankind-Yuval-Noah-Harari/dp/0062316095Seinfeldia — amazon.com/Seinfeldia-About-Nothing-Changed-Everything/dp/1476756112The Snowball — amazon.com/Snowball-Warren-Buffett-Business-Life/dp/0553384619Same as Ever — amazon.com/Same-Ever-Guide-Never-Changes/dp/0593332709The Psychology of Money — amazon.com/Psychology-Money-Timeless-lessons-happiness/dp/0857197681
Retiring Retirement Income Myths with the Retirement Income Dream Team | Rational Reminder 289 The Rational Reminder Podcast 2024-01-25 | Meet with PWL Capital: calendly.com/d/3vm-t2j-h3pDoes 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/rationalreminderTimestamps:0:00:00 Intro0:08:23 Why it was decided to respond to Dave Ramsey’s claim that 8% is a safe retirement spending rate0:10:57 What Ramsey gets wrong about retirement math to justify his 8% spending claim0:16:47 How important sequence risk is to how investors fund their retirement consumption0:24:17 How the risk of being in stocks changes at long horizons vs. short horizons0:26:46 How subjective risk tolerance changes with short-term market fluctuations0:39:26 Thoughts about Dave Ramsey’s suggestion that the 4% rule is just too depressing0:48:03 How much dynamic spending strategies improve the initial withdrawal rate0:52:19 How much variability in income investors need to be prepared for with dynamic spending strategies0:55:49 When people should be looking past traditional investments and toward other products, like annuities1:09:02 How impactful the idea of deferring government pensions isLinks From Today’s Episode:Michael Finke — http://www.michaelfinke.com/home.htmlMichael Finke on X — twitter.com/finkeonfinanceMichael Finke on Facebook — facebook.com/mfinkeThe American College of Financial Services — https://www.theamericancollege.edu/David Blanchett — davidmblanchett.comDavid Blanchett on X — twitter.com/davidmblanchettDavid Blanchett on LinkedIn — linkedin.com/in/david-blanchett-b0b0aa2PGIM DC Solutions — pgim.com/dc-solutionsWealth, Managed Podcast — https://www.theamericancollege.edu/knowledge-hub/wealth-managed-podcastWade Pfau — retirementresearcher.com/wade-pfauWade Pfau on LinkedIn — linkedin.com/in/wpfauWade Pfau on X — twitter.com/WadePfauMcLean Asset Management — mcleanam.comRetire With Style Podcast — risaprofile.com/retire-with-styleAlliance for Lifetime Income — protectedincome.orgEpisode 89: Wade Pfau: Safety-First: A Sensible Approach to Retirement Income Planning — rationalreminder.ca/podcast/89Episode 137: David Blanchett: Researching Retirement — rationalreminder.ca/podcast/137Episode 254: David Blanchett: Regret Optimized Portfolios and Optimal Retirement Income — rationalreminder.ca/podcast/254The Ramsey Show — youtube.com/@TheRamseyShowEpisodesThe 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-guidanceJason Fichtner — bipartisanpolicy.org/person/jason-j-fichtner‘The Value of Delayed Social Security Claiming for Higher-Earning Women’ — dx.doi.org/10.2139/ssrn.3849653Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — rationalreminder.ca Rational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmore
Scott Rick: Navigating the Money Minefield in Real Relationships | Rational Reminder 288 The Rational Reminder Podcast 2024-01-18 | Meet with PWL Capital: calendly.com/d/3vm-t2j-h3pTightwads 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_55xxAQrYK0WRlY2Timestamps:0:00:00 Intro0:03:34 Scott describes the relationship that people have with money0:05:32 Scott defines the terms tightwad and spendthrift0:10:09 How being a tightwad differs from being frugal0:15:22 The underlying psychological mechanisms behind spendthrift and tightwad behaviors0:21:59 The role financial advisors should play in telling people they can spend more0:27:22 How common it is for tightwads and spendthrifts to end up in relationships together0:32:08 How the financial situations of matched and mismatched couples tend to compare0:38:21 The effect the structure of bank accounts has on the way that money flows through a relationship0:42:35 Behaviors that get classified as financial infidelity0:45:18 The downsides of total financial transparency in a relationship0:50:37 The role gift giving should play in relationships0:56:42 How kids learn about money from their parents1:03:27 Based on Scott's research, whether people should marry for love, or marry for money1:06:54 What Scott hopes people take away from his book1:11:24 Scott defines success in his lifeLinks 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/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreScott 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/282Books From Today’s Episode:Tightwads and Spendthrifts — amazon.com/Tightwads-Spendthrifts-Navigating-Minefield-Relationships/dp/1250280079Retail 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
A Practical Look at Private Equity w/ Steve Balaban & Epic Life w/ Justin Breen | RR 287 The Rational Reminder Podcast 2024-01-11 | Meet with PWL Capital: calendly.com/d/3vm-t2j-h3pIt’s the start of a new year and with it comes an opportunity to re-evaluate your trajectory andset 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 equityinsider with a refreshingly realistic and practical perspective on private equity. We talk withSteve about investing in private equity, the benefits and drawbacks every investor should knowabout, 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 CFASociety Toronto in collaboration with Mink Learning and how listeners can gain special accessto these training tools. Next, we take a look back at our conversation with Ayelet Fishbach fromthe Booth School of Business on the science of motivation and goal setting and the contents ofher new TEDxChicago Talk The Science of Getting Motivated. We wrap things up with a reviewof Justin Breen’s book titled, Epic Life: How to Build Collaborative Global Companies WhilePutting Your Loved Ones First, followed by our conversation with the author on thetransformational power of naming your year, the power of networking, and other key lessonsfrom his book. For all this and much more, be sure to tune in and start 2024 armed withinsights from some of the best thinkers around!Tune Out The Noise Access URL: film.dimensional.com/podcastAccess Code (available until Jan 31): RATIONALPrivate Equity Certificate: web.cvent.com/event/10af7f03-e05c-465a-803e-3e8ac3864120/summaryCoupon Code: RATIONALREMINDERPECTimestamps:0:00:00 Intro0:04:25 Main Topic: A Practical Look at Private Equity0:08:59 Main Topic: Special Guest Steve Balaban1:11:04 Episode 188: 60 Seconds1:12:49 Book Review: Epic Life: How To Build Collaborative Global Companies While Putting Your Loved Ones First1:14:56 Book Review: Special Guest Justin Breen1:38:09 AftershowLinks From Today’s Episode:Steve Balaban — stevebalaban.comSteve Balaban on LinkedIn — training.minklearning.comMink Learning — training.minklearning.comJustin Breen on LinkedIn — linkedin.com/in/justinbreen1BrEpic Communications LLC — brepicllc.comBrEpic Network — brepicnetwork.orgEpic Life: How to Build Collaborative Global Companies While Putting Your Loved Ones First —amazon.com/Epic-Life-Collaborative-Companies-Putting/dp/1544532555Episode 188: Prof. Ayelet Fishbach — rationalreminder.ca/podcast/188Professor Ayelet Fishbach's TEDxChicago Talk, The Science of Getting Motivated —youtube.com/watch?v=T8CegN1xssYEpisode 286: Errol Morris — rationalreminder.ca/podcast/286Episode 210: Prof. Ludovic Phalippou — rationalreminder.ca/podcast/210Flow: The Psychology of Optimal Experience —amazon.com/Flow-Psychology-Experience-Perennial-Classics/dp/0061339202Get It Done: Surprising Lessons from the Science of Motivation —amazon.com/Get-Done-Surprising-Lessons-Motivation/dp/0316538345Episode 237: Who are you, and who do you want to be? —rationalreminder.ca/podcast/237The Geek Way —amazon.com/Geek-Way-Radical-Transforming-Business/dp/0316436704Tightwads and Spendthrifts: Navigating the Money Minefield in Real Relationships —amazon.com/Tightwads-Spendthrifts-Navigating-Minefield-Relationships/dp/1250280079Same as Ever: A Guide to What Never Changes —amazon.com/Same-Ever-Guide-Never-Changes/dp/0593332709Episode 224: Prof. Scott Cederburg — rationalreminder.ca/podcast/224Episode 284: Prof. Scott Cederburg — rationalreminder.ca/podcast/284Money Scope Podcast — moneyscope.caRational Reminder on iTunes— itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmore
Errol Morris: Tuning Out the Noise | Rational Reminder 286 The Rational Reminder Podcast 2024-01-04 | Meet with PWL Capital: calendly.com/d/3vm-t2j-h3pIn today’s episode, Errol Morris, Academy Award-winning film director and author, joins us totalk about his recently released documentary called Tune Out the Noise. The documentaryfocuses on the revolution that's happened in the financial system, how the markets work, andwhy 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 renowneddocumentary The Fog of War. His work spans various arenas, encompassing short films forprestigious events and many charitable and political organizations. In our conversation, wedelve into the significance of storytelling in communicating complex subjects, the power ofserendipity, the evolution of finance, and the enigmatic nature of truth. We discuss thenecessity of storytelling, the unexpected occurrences that influenced finance, the importanceof empirical data in understanding truth, the central story of Tune Out the Noise, and muchmore. 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 oftruth intertwine in this captivating episode, where the intriguing art of storytelling convergeswith 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/podcastAccess Code (available until Jan 31): RATIONALTimestamps:0:00:00 Intro 0:05:54 Errol is a fan of Rational Reminder0:08:23 Errol describes the story he tells with his film Tune Out the Noise0:12:04 The importance of the story to the average person0:16:32 Key points in Errol's research where his views began to change0:21:52 How Errol decided to make the film an "Errol Morris" film, rather than a commercial one0:29:31 Whether or not Errol has skepticism when he hears that there is data suggesting that people can't beat the market0:33:46 If there are other people not included in the film that are important to the story0:42:31 What surprised Errol about the story once he fully understood it0:49:46 The aspects of the story that are underappreciated by the end investors who benefit from it0:55:20 How telling a story like this differs from stories like The Thin Blue Line or The Fog of War1:04:29 How many interviews Errol has conducted over his career1:08:42 What determines a "good" interview1:11:37 How people can become better storytellers1:12:54 Errol defines success in his lifeLinks From Today’s Episode:Errol Morris — errolmorris.comErrol Morris Email — info@errolmorris.comTune Out the Noise — austinfilm.org/films/test-screening-tune-out-the-noiseThe Fog of War — imdb.com/title/tt0317910The Thin Blue Line — imdb.com/title/tt0096257Believing Is Seeing — amazon.com/Believing-Seeing-Observations-Mysteries-Photography/dp/1594203016/A Wilderness of Error — amazon.com/Wilderness-Error-Trials-Jeffrey-MacDonalddp/B009GKGSEC/Gates of Heaven — imdb.com/title/tt0077598Dimensional Fund Advisors — dimensional.comThe Art of Controversy — amazon.com/Art-Controversy-Arthur-Schopenhauer/dp160459571XThe Pigeon Tunnel — imdb.com/title/tt28486633Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmore
2023: A Year in Review | Rational Reminder 285 The Rational Reminder Podcast 2023-12-28 | Meet with PWL Capital: calendly.com/d/3vm-t2j-h3pIt’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 Intro10:17 Charles D. Ellis: Why money management is a loser's game13:31 Burton Malkiel: What the term "efficient markets" means18:03 Pim van Vliet: The difference between a global factor premium and the cross-sectional premiums22:54 Samuel Hartzmark: How investors treat price returns and dividend returns differently29:01 William Goetzmann: Why it's important to collect and examine long-term historical returns data31:54 William Goetzmann: How to estimate the expected long-term returns of both stocks and bonds37:40 Robert C. Merton: The influence do you think time horizon should have on the mix between stocks and bonds in an investor's portfolio44:80 Francisco Gomes: How optimal asset allocation changes over the life cycle50:09 David Blanchett: What driving that regret in investing is51:45 David Blanchett: The difference between risk aversion and regret aversion53:39 Daniel H. Pink: How to optimize future regret57:58 Charles D. Ellis: The most underappreciated action that individual investors can take to be more successful59:08 John Y. Campbell: How much households differ in their beliefs and preferences1:03:15 Ralph Keeney: Ralph describes the focus of his career’s research and his consulting work1:07:54 Cass Sunstein: How people decide whether or not to obtain information that could help them make better decisions1:11:59 Eric J. Johnson: Describing the hidden partner that accompanies us when we make decisions1:14:50 Cass Sunstein: How people decide what information to believe, and when to update their beliefs1:19:50 James Choi: Why economic theory often fails to describe how real people make personal finance decisions1:22:51 Itzhak Ben-David: Defining miscalibration1:28:33 Hal Hershfield: How connected people feel to their future selves1:29:59 Hal Hershfield: Which emotion drives decisions that favour our current self or our future self1:31:31 Hal Hershfield: What about our future selves makes them feel like a stranger1:33:34 Meir Statman: What the third generation of behavioural finance is1:36:11 Preet Banerjee: The value of having a financial plan1:38:02 Darin Soat: Why it's harder for high-quality personal finance information to be seen on YouTube1:42:08 Harold Geller: How to know whether an advisor is properly performing the KYC process1:45:34 Robert C. Merton: The role of financial advisors1:49:10 Preet Banerjee: The main problems with past research that's attempted to demonstrate the value of financial advice1:54:20 Victor Haghani/James White: Explaining the puzzle of the missing billionaires2:00:16 Rob Carrick: The proportion of Canadians that are getting comprehensive advice from their financial advisor2:05:22 Juhani Linnainmaa: How investors can assess the quality of a potential advisor's beliefs2:08:04 James Grubman: Advice for identifying advisors who get the importance of Wealth 3.02:14:16 James Grubman: What parents should be thinking about to prepare their children to receive wealth2:20:33 Shane Parrish: How people should approach determining what their true goals are2:22:15 EndingLinks From Today’s Episode:Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmore
Professor Scott Cederburg: Challenging the Status Quo on Lifecycle Asset Allocation | RR 284 The Rational Reminder Podcast 2023-12-21 | Meet with PWL Capital: calendly.com/d/3vm-t2j-h3pIn 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 paper0:08:09 What sets Scott's method apart in its ability to challenge the status quo0:11:24 Scott describes the lifecycle of the household that he modeled0:16:25 The retirement outcomes did Scott used to evaluate lifecycle asset allocation strategies0:20:33 Which asset allocation strategies perform best on Scott's evaluation metrics0:27:40 Which asset allocation strategies perform best in the left tail of outcomes0:34:22 How important social security is to an all equity portfolio being optimal0:39:06 How much more a household has to save in a target date fund for retirement consumption to match investing in stocks through the full lifecycle0:43:13 How much of a risk large intermediate losses actually are for people saving for, and living though, their retirements0:54:34 The important of return dependencies, like mean reversion in stocks, to Scott's results1:01:02 Why the observed behavior of retirees, which does more closely follow the traditional lifecycle advice, differs from what is optimal1:06:07 What is driving the large optimal allocation to domestic stocks1:11:45 Whether adding additional costs to owning international stocks pushes the optimal home bias further1:15:28 The aspects of the results that surprised ScottLinks From Today’s Episode:Professor Scott Cederburg — https://eller.arizona.edu/people/scott-cederburgProfessor Scott Cederburg on LinkedIn — linkedin.com/in/scott-cederburgProfessor Scott Cederburg on Google Scholar — scholar.google.com/citationsEller College of Management — https://eller.arizona.edu/Episode 224 — rationalreminder.ca/podcast/224Episode 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.4227132International 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/articleRational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — rationalreminder.ca Rational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmore
When Volatility is Risk, and Introducing The Money Scope Podcast | Rational Reminder 283 The Rational Reminder Podcast 2023-12-14 | Today’s episode features a series of in-depth segments, and includes a visit from our two favourite Marks; Mark Soth (aka The Loonie Doctor) and Mark McGrath! To kick things off we break down volatility and investor behaviour by looking back at our conversation with Scott Cederburg and what his research demonstrates about the topic. We then hear from Mark Soth about the project that he and Ben have been working on; the soon-to-be-released Money Scope podcast. Find out what you can expect from their financial curriculum, like the topics they’ll be covering and how the structure of their episodes is specifically designed to educate. Next up we have our Mark to Market Segment, with Mark McGrath providing a detailed overview of everything you need to know about physicians incorporating. We then cover a recap of our conversation with Gerard O'Reilly, before sharing our thoughts on why this episode is worth multiple listens. Following that you’ll hear Cameron share his review of Brave New Work: Are You Ready to Reinvent Your Organization? by Aaron Dignan, along with his key takeaways from the book. Finally, in our after-show section, we discuss some of the fantastic guests we have coming up, our recommended reading to prepare for those episodes, community updates, plus a few other goodies! Timestamps:0:00:00 Intro 0:02:26 Main Topic: Volatility and Investor Behavior0:04:38 Performance Chasing0:05:42 The Return Gap0:10:04 Return Gaps and Volatility0:13:17 Expected Returns and Return Expectations0:17:55 Special Announcement w/ guest Dr Mark Soth0:32:43 Mark to Market0:46:08 Episode 198: 60 Seconds0:48:45 Book Review: Brave New Work: Are You Ready to Reinvent Your Organization?0:55:28 AftershowLinks From Today’s Episode:Episode 198: Gerard O’Reilly — rationalreminder.ca/podcast/198Episode 224: Scott Cederburg — rationalreminder.ca/podcast/224Episode 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.pdfThe Money Scope Podcast — moneyscope.caThe Money Scope Podcast on YouTube — youtube.com/@moneyscopepodBrave New Work: Are You Ready to Reinvent Your Organization? — amazon.com/Brave-New-Work-Reinvent-Organization/dp/0525536205Aaron Dignan — http://www.aarondignan.comThe Ready — theready.comThe Fund: Ray Dalio, Bridgewater Associates, and the Unraveling of a Wall Street Legend — amazon.com/Fund-Bridgewater-Associates-Unraveling-Street/dp/1250276934Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — rationalreminder.ca Rational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmoreDr. Mark Soth (The Loonie Doctor) — looniedoctor.caDr. Mark on X — twitter.com/LoonieDoctorMark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfpMark McGrath on X — twitter.com/MarkMcGrathCFP
Dr. Jim Grubman: The Psychology of Wealth | Rational Reminder 282 The Rational Reminder Podcast 2023-12-07 | In this episode, we delve deep into the world of wealth management and family advisory services and explore the evolving landscape of financial wealth planning. Dr. James Grubman, a renowned expert in family wealth psychology and author of Strangers in Paradise and Wealth 3.0, shares his profound insights and expertise on this critical subject. Dr. Grubman is a distinguished figure in family wealth and well-being and has made a mark with his profound understanding and enduring contributions to the field. In our conversation, we unpack the wealth management landscape through a psychological lens. We discuss the definition of wealth, the complex family dynamics and hurdles faced when adapting to elevated levels of wealth, and the essential role parents play in imparting financial responsibility to their children. We also explore the fundamentals when embracing the cultural norms associated with affluence, the psychological and practical ramifications of avoiding or overcompensating for wealth, the changing landscape of family wealth management, and much more. Listeners will also gain a comprehensive understanding of the evolution of wealth management, from traditional approaches to the transformative Wealth 3.0, along with insights on nurturing strong family relationships in the context of affluence. Dr. Grubman's wealth of knowledge and engaging storytelling make this episode a must-listen for those interested in the future of wealth management. Tune in now!Timestamps:0:00:00 Intro 0:04:38 James defines what it means to be wealthy0:08:07 How common it is for people to become wealthy as opposed to being born wealthy0:14:16 The added challenges that come with raising children in the context of wealth0:23:32 How the source of wealth affects how people adapt to it0:26:25 What people need to think about when they consider adopting the culture of the land of wealth0:34:41 The implications of avoiding the cultural change altogether0:39:13 What happens when people try too hard to adapt to being wealthy0:43:11 Some of the common challenges to successful integration0:47:02 What parents should be thinking about as they prepare their children to receive wealth0:54:20 The role James sees for professional advisors in managing wealth0:56:53 In the context of managing wealth, James defines Wealth 1.01:02:55 Why the negative aspects of Wealth 2.0 lasted for so long1:05:16 James describes Wealth 3.01:10:28 New skills do advisors need to develop in Wealth 3.01:18:48 How receptive clients are to the ideas of Wealth 3.01:20:40 What James is most excited about in the emerging Wealth 3.01:24:09 James defines success in his lifeLinks From Today’s Episode:Dr. James Grubman — jamesgrubman.comStrangers in Paradise — amazon.com/Strangers-Paradise-Families-Wealth-Generations/dp/0615894356Wealth 3.0 — amazon.com/Wealth-3-0-Future-Family-Advising/dp/B0C9SHFSGMCross Cultures — amazon.com/Cross-Cultures-Families-Negotiate-Generations/dp/1517626609Family Firm Institute (FFI) — ffi.orgPurposeful Planning Institute — purposefulplanninginstitute.comSTEP — step.orgUltra-High Net Worth Institute (UHNW) — uhnwinstitute.orgRational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmore
Lifecycle Asset Allocation, and Retiring Successfully with Justin King | Rational Reminder 281 The Rational Reminder Podcast 2023-11-30 | Today, we take a closer look at asset allocation through an empirical lens, by drawing on the work and data of Scott Cederburg and his new article ‘Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice’. We unpack what the research tells us about how to establish the optimal mix of assets in a portfolio, the challenges of making the right decisions when you have volatile assets, and why it’s critical that you understand your level of risk tolerance. Next, in our Mark to Market segment, we unpack different types of insurance — like life, disability, and critical illness — and when you should own them personally versus making them the property of your corporation. We then review Justin King’s new book The Retirement Café Handbook: Nine Accelerators for a Successful Retirement before sitting down with the author himself to discuss the content of his latest work and his long-held interest in helping others optimize for retirement. Tuning in you’ll hear Justin share his thoughts on the role of choice, vitality, and joy when it comes to having a successful retirement, the nine accelerators he lays out in his book, and how to become the hero of your retirement story. In our final section, we wrap things up with some wonderful reviews from listeners and our book recommendations. To hear all of the captivating takeaways from today’s episode, be sure to tune in!Timestamps:0:00:00 Intro 0:02:32 Main Topic: Asset Allocation0:10:27 Government Pensions0:13:05 Is Volatility a Risk?0:15:35 Empirical Analysis0:26:17 Bonds as a Diversifier0:27:06 Behavior Gap0:32:36 Limitations0:33:18 Main Topic: Conclusion0:34:57 Mark to Market0:43:53 Episode 177: 60 Seconds0:47:19 Book Review w/ Special Guest Justin King1:07:14 AftershowLinks From Today’s Episode:‘Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=4590406Episode 224: Prof. Scott Cederburg — rationalreminder.ca/podcast/224Episode 169: Prof. John Cochrane — rationalreminder.ca/podcast/169Episode 250: Prof. John Y. Campbell — rationalreminder.ca/podcast/250Episode 278: Juhani Linnainmaa: Financial Advisors, and the Cross Section of Returns — rationalreminder.ca/podcast/278Episode 177: Dr. Anna Lembke — rationalreminder.ca/podcast/177Anna Lembke — annalembke.comDopamine Nation: Finding Balance in the Age of Indulgence — annalembke.com/dopamine-nationJustin King on LinkedIn — linkedin.com/in/justinking-retirement-planner-ifaJustin King on X — twitter.com/JustinKingCFPThe Retirement Café — theretirementcafe.co.ukThe Retirement Café Podcast — theretirementcafe.co.uk/podcastThe Retirement Café Handbook: Nine Accelerators for a Successful Retirement — amazon.co.uk/Retirement-Cafe-Handbook-Accelerators-Successful/dp/1739410300Episode 30: Larry Swedroe — rationalreminder.ca/podcast/tag/Larry+SwedroeStrangers in Paradise: How Families Adapt to Wealth Across Generations — amazon.com/Strangers-Paradise-Families-Wealth-Generations/dp/0615894356Wealth 3.0: The Future of Family Wealth Advising — amazon.com/Wealth-3-0-Future-Family-Advising/dp/B0C9SHFSGMRational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582 Rational Reminder Website — rationalreminder.ca Rational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felix Benjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmore
Shane Parrish: Clear Thinking in Everyday Life | Rational Reminder 280 The Rational Reminder Podcast 2023-11-23 | In this episode, we delve into the complexity of navigating life's challenges, taking risks, fostering self-confidence, and honing problem-solving skills. Joining us is Shane Parrish, a best-selling author, to help us unpack this nuanced topic through the lens of his new book, Clear Thinking. His latest publication is a roadmap for recognizing pivotal moments for clear thought and exposing how our defaults often drive us. He aims to empower readers to intervene, harness reasoning, and apply cognitive tools for better decision-making. Shane is also the founder of the website blog Farnam Street and the venture capitalist firm Syrus Partners. In our conversation, we explore the steps to becoming a clear thinker and how the mantra can be applied to our daily lives. We discuss how ordinary moments influence our decisions, the definition of true goals, and how to build self-confidence. We also unpack the barriers that hinder clear thinking, the difference between playing on hard and playing on easy, the value of continual growth, and much more. Tune in and discover how to master risk, confidence, and problem-solving with Shane Parrish!Timestamps:0:00:00 Intro 0:03:44 Shane explains why the title of his book refers to ordinary moments0:09:03 How important it is to define your true goals0:12:00 How clear thinking is connected to achieving goals 0:20:01 How one learns to control the four defaults0:26:55 Shane's opinion regarding following best practices as a decision-making tool0:35:22 How important good habits are to clear thinking0:47:24 The importance of defining the problem before solving the problem0:52:11 How Shane determined that he values time over money0:57:21 How someone can curate the information that is best for them1:02:00 Shane defines success in his lifeLinks From Today’s Episode:Farnam Street — https://fs.blog/Shane Parrish on LinkedIn — linkedin.com/in/shane-parrish-050a2183Shane Parrish on X — twitter.com/ShaneAParrishSyrus Partners — syruspartners.comClear Thinking — amazon.com/Clear-Thinking-Turning-Ordinary-Extraordinary/dp0593086112The Knowledge Project Podcast — https://fs.blog/knowledge-project-podcast/Episode 19: Shane Parrish — rationalreminder.ca/podcast/19Episode 143: Ashley Whillans — rationalreminder.ca/podcast/143The Great Mental Models — amazon.com/dp/B086DQQ27830 Lessons for Living — amazon.com/30-Lessons-Living-Advice-Americans/dp0452298482Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.Rational Reminder Website — rationalreminder.caRational Reminder on Instagram — instagram.com/rationalreminderRational Reminder on X — twitter.com/RationalRemindRational Reminder on YouTube — youtube.com/channelRational Reminder Email — info@rationalreminder.caBenjamin Felix — pwlcapital.com/author/benjamin-felixBenjamin on X — twitter.com/benjaminwfelixBenjamin on LinkedIn — linkedin.com/in/benjaminwfelixCameron Passmore — pwlcapital.com/profile/cameron-passmoreCameron on X — twitter.com/CameronPassmoreCameron on LinkedIn — linkedin.com/in/cameronpassmore
