Talking Real Money - Investing Talk

As AI grows exponetially more knowledgable, are investors ready to move from human to many investing advice? Are there skills that people have that artificial intelligence can't mimic? Plus, listeners ask:What is the best order to draw from various types of retirement accounts?Which is the better Avantis total market ETF: AVGE or AVGV?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

When Tom finally sits down with the finance guy to buy his car, he is pitched a bunch of extra warranties and given some terrible investing advice. So, today, we discuss all of the mistaken beliefs people have about investing.Then, we hear from listeners asking:Is it better to buy houses or invest in stocks and bonds?What is the required minimum distribution formula for retirement accounts?Finally, we get a call from someone who has done well in real estate.Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

With U.S. stock prices running hot versus the rest of the world, could your portfolio benefit from more international stocks? Tom and Don share some numbers and historical data. We ask, is Robin Hood's 1% IRA contribution worth it? Don reads a bad review. Then, because of technical difficulties, we hear from just one listener:How should a young person's retirement be invested in Vanguard funds?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

We share yet another example of the premise that luck is behind the success of most professional money managers. A new book portrays Ray Dalio, the founder of the giant hedge fund Bridgewater Associates, as just another average investment guesser who may have gotten lucky in the past. Then, listeners ask:Should I sell old I-Bonds and pay the penalty to invest in newer bonds with a fixed rate plus inflation adjustments?How should I allocate my employer retirement investments between various Vanguard funds?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

This Friday, Don answers questions about:How many beneficiaries of a 529 plan can transfer $35,000 into a Roth IRA?Does a micro-cap fund have a place in a portfolio?Should a retirement lump sum be investing in rolling maturity fixed annuities?Is there any reason to NOT fund a 457 plan?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

The average American family’s net worth has risen to 1 million dollars, yet few of us have the money for a $500 million yacht. However, there are 16 million mini-millionaires in the United States. How do you join the millionaire (or upper-middle) class? LIsteners ask:Does it make sense to tax-loss sell a total bond ETF to a tax-free bond ETF?Should you sell funds when they have gone up 20%?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Retiring later seems like a viable option for those who failed to save enough to afford retirement. What is the reality of working past 65? What are the new 2024 retirement plan contribution limits?We take listeners' questions:Should liquid money be invested in a 13-month CD?Can a portion of a parent's HSA be used for an adult child?Can a storage unit buyer transfer old savings bonds to his name?Should a small pension be withdrawn as a $30,000 lump sum?What should a 62-year-old do to catch up on retirement?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

After failing several times, the Department of Labor will try again to make all retirement plan advisors act as true fiduciaries. The insurance industry will be suing to keep you paying them high fees and commissions. If you want excitement, find it anywhere but in investing. What are the lessons of the convicted fraud perpetrated by Sam Bankman-Freid and FTX?Our listeners want to know:Should an investor move from one small-cap value fund to another?What's the best way to invest money for grandkids' long-term future?What should be done with a capital gain from real estate to avoid taxes?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Buying a home may not be as smart as renting. Rising interest rates have pushed the cost of home ownership far above the price of renting a similar home. Yet, home prices have not fallen enough to offset the differences. Plus, what does "kit and caboodle" mean?Listeners ask:In order to create a simpler portfolio, does it make sense to wait until prices of existing securities recovers?In a somewhat hodgepodge portfolio, should an ETF be sold to buy CDs?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

It's Friday, and Don takes your questions:What's with the weird ticker symbols for retirement plan funds?Does it make sense only to fund a mega-backdoor Roth IRA?Is it smart to loan a child money for a home?Should money from a 401k be used to pay off a mortgage?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Have small investors finally gotten smarter than the market? Using misleading data from Robin Hood, The Wall Street Journal tries to make traders appear prescient. Then, we answer these questions:Which Vanguard bond fund do we prefer for an IRA?What is a Social Security benefit reduction, and why should you wait to collect?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Every year we are inundated with ads for Medicare Advantage plans. So, are there any real advantages and what are the downsides? One caller criticizes Medicare Advantage programsOthers ask:About contributing to a company 401k plan at age 60 with few retirement assets?What can be done with a bad company retirement plan consultants?Does it make sense to invest in target date ETFs in retirement?What some good investments for grandchildren?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Don goes it alone for a couple of episodes.It appear that mist of the financial setbacks over the past fifty years have followed periods of rapidly rising rates. What can you do to protect against risng (and falling) interest rates? What is the historical norm for rates? Plus, Don talks about the first-of-its-kind target date ETF.Callers ask:What should be done with his stock portfolio in the current market?Why is my retirement plan at work showing a large loss?Should a portfolio of active funds be moved to index funds?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

In this episode, we open Don's "good" book, Financial Fysics to the section on the power of a well-diversified investment portfolio. We take some questions, too:What should be done with two maturing annuities?How should a $5 million portfolio be invested to reduce taxes?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

On today's Q&A show:Why is an attractive-sounding annuity a bad idea?Are there times when a 403b shouldn't be rolled into an IRA?How can someone complain about insurance products in a 403b?When can a contribution be made to a mid-year HSA?What's the best way to invest in various types of accounts?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Far too many Americans fall through the cracks in the U.S. retirement system. In an age of few pensions, many don't invest for retirement and can't survive on just Social Security. How do we get more workers to save more and invest better?Listeners ask:For a primer on brokered CDs. Are callable CDs worth considering?Which is better: a money market or certificate of deposit?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

We discuss the current state of the bond market and the possibilities for the future. Is there any way investors can outguess the bond market (or any other securities market)? Plus, we talk about Tom's new iPhone 15.Listeners would like to know:What is the difference between a money market account and a money market mutual fund?Was it wise to purchase 20-year bonds for long-term income?Where should money be placed to make money without risk?Do we think Fundrise is a good place to invest?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Six month's later, the Wall Street Journal contradicts itself in the debate about the efficacy of a 60% stock/40% bond portfolio. Understand how a short period can influence our long-term perception. Plus, what are your alternatives to traditional stock/bond investing?Our listeners ask:Why would you use a regular IRA when you expect to be in a lower future tax bracket?What do we think of the TSP "G" Fund vs BND?How should a late retirement saver invest?Should a retirement account with an insurance company be moved elsewhere?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Could betting markets predict the future? The evidence shows that the "wisdom of crowds" has been pretty accurate. In finance, they call it "the efficient market." Essentially, this means that, in aggregate, a large crowd (like the global stock market) is likely to be a more accurate future prognosticator than you or even professional managers. Then listeners ask:What are the best investments for young grandchildren?Should dividends be reinvested or paid out?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

This week:Why do we like the Utah 529 Plan?Should BND be sold to create a ladder even if it's down?Why don't we mention M1 Finance?What do we think of the Fidelity Zero funds?Can a corporate bond ETF replace a money market fund?Is 1% per year a fair fee for an investment advisor?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Because they are so popular with financial salespeople, we need to talk about the confusing world of annuities. What are they and what are those who sell them failing to disclose? Discover the realities of these very complex (and lightly regulated) insurance investment products. Plus, we get annoyed with some if Suze Orman's simplistic and hyperbolic advice.Listeners ask:Which investments should be in taxable versus tax-advantaged accounts?Why do we like AVGE when it's an "active" fund?Why doesn't Tom buy his new car through Costco?How should one go about saving extra money for an early retirement?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Young investors have a lot of money in cash because they fear the stocks market. Yet, the best time to invest is when you are young because you have time to ride the ups and down of the market. Then it's question time:What can be done after an adviser puts money into an annuity with the client's permission?Why does a CD ladder makes sense?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

How much might Bitcoin appreciate per year? Someone claims to know. Then, a Bitcoin farm can consume the energy of a small city and while the Chinese won't allow them in China, they have no problem consuming our power and maybe even our national security secrets. Is Bitcoin worth the costs? Don shares some actual numbers. Listeners ask:Do we know of a great 529A Able Plan?What do we think of a simple portfolio and when should it be rebalanced?Are more bonds needed in a portfolio?Is there a case to be made for a traditional, tax-deductible 401k?What do we think of an ESG portfolio?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

A special episode devoted to paying for your children's higher education. Appella Wealth college-funding specialist, Jim Femia joins Tpm and Don to share his expertise on the various ways you can afford to help your kid's get through college.Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Friday is when Don takes the questions you record at Talking Real Money:Why do Treasury security yields change throughout each day?How do you check out a fee-based advisor?What do we think of a company's new fund options?Does his advice for a friend's retirement portfolios make sense?Is the ETF "HIGH" a decent investment?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

A Washington Post advice columnist suggested firing a financial advisor friend. How can you find the right person to manage your money? Then we hear from lots of listeners:Is it better to invest fixed income dollars in bonds or laddered CDs?Will moving from one brokerage firm to another cause a taxable event?When is the best time to make a QCD?Why doesn't the Fed raise rates in one big move?How can an employee get out of an Edward Jones 401a?Which of many bad choices should a school district employee use in 403b?How does Merrill Lunch differ from Schwab?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

There's a lot money tied up in our homes, so should you pay off your cheap mortgage? What are the costs to access all of that money should you need it? At Bank of America, it could cost up to 10% for a home equity line of credit. We talk about the potential future of bond prices. The we here from a bunch of Kens, a Barb (and others):What happens to the homeowner's capital gain exemption if you rent you house for a few years?Does direct indexing make investing sense?To invest in other funds should I wait until the old securities price goes up?How much risk should someone with a high risk capacity, but no need for risk, own bonds?Should I-Bonds be sold and reivested in CDs?Do QCDs (qualified charitable distributions) makes sense?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

The movie "Dumb Money" depicts a small slice of the pandemic meme stock trading stupidity. Today, we discuss trying to time the market and it's similarity to other ways we lose money. Then, listeners ask:How much should be kept in the short-term liquid accounts?Should we take money from different types of account in different markets?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

A recent study found that the vast majority of Americans don't believe they will be in good enough financial shape to retire at age 65. What are some of our biggest concerns and how can we deal with our unpreparedness? Plus, we share the tale of a money talk show host who went wild with listeners money. Then, we here from listeners:One takes us to task for sharing mutual fund portfolios instead of just ETF portfolios.Another asks where Health Savings Account (HSA) should be invested.Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

In this Friday's Question and Answer episode:While stocks plunged for most of the Great Depression, how did bonds perform?Does it make sense to convert to a Roth if the taxes are paid from the IRA?Does taking early Social Security payments and investing them better than waiting until age 70?How is a lump sum pension distribution taxed and should it be used to pay off a house?In which kinds of accounts should different types of investments be kept?Why do we state that homes haven't been a great investment over time?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Trillions of dollars are wasting away in low-yielding bank accounts. Why do investors keep making the same investing mistakes, over and over again, despite evidence that investing is incredibly simple if done right? How can you avoid making bad investing decisions? We also discuss the huge spread between savings account and credit card interest. A listener asks:Is her brother's dividend portfolio a smart way to invest?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

The 401k and 403b investment offerings are a mess and the US Labor Department would like to make it better, but the financial product industry opposes mandating truly honest investing advice. Salespeople aggressively push expensive or unsuitable products, while the low cost products are hidden from participants view. What can you do to avoid the bad products and fiind the best retirement investments for you? Plus, listeners wasnt to know:What is our problem with target-date funds?Can an inherited IRA be gifted away?What should be done with investments when someone enters long-term care?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

We came prepared to talk about the impact of a government shutdown on your investments. Just as we came on the air, Congress voted to defer the issue for another 45 days. Yet, what would be the financial impact of another shutdown? We look back at the recent performance of the markets. Don shares some great streaming TV shows with Tom. Fund fees keep falling. Then, listeners ask:What should be done with some extra cash in retirement?Should marketable limit orders be used when trading ETFs?What is a reasonable expected return for a portfolio?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

The evidence continues to show why most "expert" money managers fail to beat their benchmarks. Don and Tom share some powerful academic reasons why money managers (and you) are unlikely to beat the market over time. Plus, those once-hot NFTs have turned icy cold, losing billions of dollars.Then, we take some questions:Is the I-Bond early-withdrawal interest penalty from early interest or the latest amount?With Social Security in trouble, what is the best age to take withdrawals?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

In today's question and comment episode:Don is appalled by another great example of a slick salesperson selling a horribly complex and misleading insurance investment for retirement.Should a Roth be funded for someone on the cusp of making too much money.A listener shares positive comments about a recent show.Does overfunding a 529 to allow a future Roth IRA transfer to a child make sense?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

A recent study shows that most people trust the right people for investing advice. What is your trusted source of money information? Then, we hear from listeners:What do we think of this retirement portfolio, heavily invested in real estate trusts?Does the Schwab CD ladddering tool look good?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Morningstar recently reported a ongoing gap between investor returns and the returns of the stock market. You and your behavior make less than underlying indexes. We discuss Tom's attempt to buy a new Toyota and the lack of resonse to his queries.A caller shares his long history as a trader.Another looks for our opinion on real estate investment trusts (REITs).Is there any way to avoid the capital gain on the sale of property?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Finding good financial advice is really tough. You might believe that those providing money information in the media are required to tell the truth. They're not. You need to carefully vet anyone providing investing information. We take a close look at the truth behind one the money radio shows in the Seattle radio who calls himself "The Money Professor." We find out there is less there than meets the ear. WE also look at some of the best CD rates and discuss laddering.Our loyal listeners ask:Are Dimensional funds passive or active?What the the first steps to getting started investing?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Instead of lining up at the track or using a bookie, today's compulsive gamblers have a respectable way to feed their dangerous habit: short-duration option trading. The amount of money gambled away in securities markets is staggering, and it is no better than playing slots at a casino. It may be worse. We also discuss the egomaniacal comments of Bill Gross.Listeners ask:Which is better: Regular or Roth retirement accounts?What do we think about Titan Capital?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

In this week's Friday Q&A session:A caller shares information about the downside of non-qualified deferred compensation plans at work.Should some olf 401k plans be moved to a current 401k?In a TSP, what should the fixed-income allocation be?Do investors need to be diversified globally in large-cap stocksIs his international diversification appropriate?Does longevity insurance make sense?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Most "experts" say you'll need $1 million or more to retire comfortably. How will you get by if you've saved less than that, and how can you catch up if you're short on retirement savings? Plus, we hear from listeners:What do we think of an expensive 403b investment?Can funds from a Coverdell ESA be transferred to a Roth IRA?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

With the release of the meme-stock movie "Dumb Money," it seems like a good time to discuss the reality of chasing after the latest hot "investment." Then, with Don tending to his ailing mom, Tom is joined by Paul Merriman to look back at an old, hot investing craze, the "Nifty-Fifty" and to answer listener questions:What's the best way to educate grown children about money and investing?With the UAW on strike, are we likely to see defined-benefit pensions return?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Choosing the right time to take Social Security can add hundreds of dollars every month. With Don away on family matters, Tom is joined by Paul Merriman to discuss money and investing. Listeners ask:Does his decision to take Social Security at FRA make sense?What do we think of Ken Fisher's investing philosophy?What will provide a high return without much risk?How should a 16 year-old invest accumulated savings?What's our opinion of a new Avantis balanced ETF?Does it make sense to convert an IRA to a Roth?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Investors are trying to avoid paying taxes to the detriment of overall returns. Tom and Don discuss tax strategies that might make sense. Plus, it turns out those GICs or guaranteed income accounts aren't actually "guaranteed."A listener asks:Is there any reason to be concerned about Vanguard funds reorganization plans?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

It's everyone's favorite day: Q&A Friday with Don. This week listeners ask:Why don't more online brokers adopt automatic rebalancing?Why should we invest overseas when international stocks have done poorly recently?Does it make sense to take a loss on longer term bonds and move to one-year CDs?What do we think of VIOV vs AVUV?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Who wouldn't love double or triple returns on their investments? What is the downside to leverage?Listeners ask:What do we think of Mercer Advisors and their sub-advisors?Should money be moved from a less aggressive small cap value fund to a more aggressive one?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Over centuries, gold has proven to be a lousy investment. Its big selling point has been "safety." But, is gold really safe? What good is gold? Then, listeners want to know:Should a home equity line of credit be used to buy a new home?What's the best way to make a lot, quickly, with both safety and liquidity?What should be dome with retirement investment money after maxing out retirement plans?Should I-Bonds be sold now that they're earning less?After big losses from a brokerage portfolio, what should be done?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Because people have been known to rip off customers, the financial industry is heavily regulated, with a few exceptions. We explore how indexed annuity salespeople get away with misleading customers and how hard it is to stop them. Don explains how indexed annuities work and why they are so lightly regulated.Listeners want to know:Why is BND going down in value?How should unneeded money in IRA be invested?What do we think about the four-year Bitcoin cycle?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Advisor Diana Bacon joins Tom and Don to discuss those future purposes for which you need to invest. Should you invest for a house, education, retirement, or beer, and how much for each? Listeners ask:Is a Fidelity investor limited to their funds, or can a couple of ETFs work?Is buying individual bonds better than a bond fund?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

In this Q&A (and C) episode:What's the best way to sell gold for an estate and what are the tax ramifications?What type of 401k is better for charitable contributions?Those Vanguard transaction fees get paid back into the funds.Can an index fund be traded, tax-free for an ETF from another firm?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!