Talking Real Money - Investing Talk

One hundred years ago, very few Americans owned stocks. It was only in the past decade that a majority of us were invested in equities. Yet, the vast majority of stock investors fail even to match the performance of the S&P 500. Find out how you can be a better stock investor. Listeners ask:What do we think of a few of Fidelity's factor funds?Does it make sense to consolidate a portfolio in Vanguard Wellington?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

This is the last episode of 2023 and it's only fitting that it be Don's favorite type: questions and answers. We have some great ones this week:Is adding a DFA value fund worth the added cost?Should 529 money be used to eventually fund a Roth IRA?Can we make a better case against Bitcoin?What should be done with an old annuity?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Retirement can mean gaining the freedom to live anywhere you want. Tom and Don consider the best and worst states for retirees, based on multiple criteria, from two different sources. One of the worst may surprise you. Plus, we answer your questions:How will some short-term, extra income effect Medicare costs?If a major recession occurs, would it make sense to use emergency money to "buy the dip?"Is it better to have multiple brokerage accounts?Is there any way to speed up the distribution of assets from an estate?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

This episode was recorded on December 23, 2023. Just before going on the air, Don's wife told him about a lost dog found 3,000 miles from his Washington state home. The outpouring of offers to help was soul-stirring. Later, we talked about the foolishness of following the hottest parts of the markets and why annuities are one of the best selling "investments." Plus, we took listeners questions:What are the best funds for a simple portfolio?Is Morningstar a good source of investing information?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

We return from our holiday hiatus with quiz: Which is an investing fact and which is a money myth? Plus, a listener want to know:What can be done with a brokerage firm that refuses to let go of funds?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

We revisit the "active vs. passive" debate. We thought this debate had been settled, yet many still invest with active money managers. Then, we hear from listeners:Objectively, why do we hate Bitcoin?How should an elderly mother invest for heirs?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Where in the country has home equity risen most and least? What can you do to tap that hidden wealth? Does a HELOC or reverse mortgage make sense? Does owning a house even make sense in this economy?Then, we hear from listeners:Should a fiduciary advisor also act as a financial "psychologist?"Does it make sense to borrow home equity and lend it to a friend in construction?Should he stick with his aggressive "advisor?"How can renting be less expensive than buying a home?What's the difference between points and percents?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Don finally peeked at his brokerage statement and was pleasantly surprised. His portfolio finally made money. Did yours? We talk about the investment markets' ups (and downs) and finding the right balance between safety and potential return. We also share the states with the best and worst home equity appreciation. How can you tap that hidden wealth? Then, we hear from callers asking:What should be done with an old variable annuity in a 403b?How should an end-of-year backdoor Roth be done?Can someone from out-of-state attend Retiremeet?What do we think of some advice from a Voya rep?Is renting really better than buying a home?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

In this episode, we talk about some of the steps you should take well before retirement to get your financial house in order. We discuss money-saving tips and investing ideas to help those in their younger years improve their odds of retiring comfortably. Plus, we answer your questions:How can I force myself to rebalance my portfolio when my emotions get in the way?Which is better: a bond fund or a CD ladder?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

The questions may not be festive, but they're important, and Don answers them:How should assets be allocated across different types of accounts?What happens to the money in a 529 plan if the custodian needs to withdraw some?How should a young adult invest money from an inherited IRA?Can brokers' cash management accounts replace traditional bank accounts?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Another problem with actively managed mutual funds is the mortality of managers. What happens if you rely on the incredibly rare, super-smart, practically prescient money manager, and they go away? Plus, we hear from listeners:What do we think of Vanguard's variable insurance funds?Does a 100% equity portfolio make sense for someone comfortable with risk?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

A new academic study concludes that you might be better off avoiding bonds. Tom and Don discuss whether a strategy that potentially risky makes sense for you. We discuss the sorry state of most investing advice, including that from financial psychics. Then, we hear from listeners:Is gold a good investment?What do we think of the "investment" advice provided at a free Italian dinner?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

We keep making damaging financial mistakes. Are you ready to manage your money better and actually invest? We hear from listeners:Can iBonds be transferred to others?What's the best way to set up a 529 ABLE planIs tax loss selling a bit like market timing?What's the best way to sell appreciated stocks to reduce taxes?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

The price of both Bitcoin and gold have soared recently. Has anything changed that might make them attractive investments? Plus, there is more evidence that those who chase returns using mutual funds fail to beat those who buy and hold. We also help listeners:Better understand a Nuveen muni bond fund they own.Create a tax minimization plan for retirement.Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

After Don grumbles about the length of the holiday season, he goes on to answer listeners questions:Does it make sense to use a 529 Plan to make future Roth IRAs for grandkids?Is the 4.7% interest from Vanguard new Cash Plus account better than a high yield savings account?Does an allocation entirely too small cap stocks make sense?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Investing "professionals" run the gamut from highly skilled and honest to truly dangerous. How can you avoid the mediocre to crooked financial advice providers out there? Tom and Don have some simple ways to protect your wealth from the unscrupulous. Plus, listeners ask:What is the name of the bank paying over 4%?How should money be allocated between taxable and tax-advantaged "baskets?"Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

The end of the year often brings mutual fund investors an unpleasant surprise that can raise taxes; the realized capital gains distribution. How can you avoid this tax surprise? Are traditional mutual funds headed for extinction? Dimensional Funds rolls out a total market ETF to compete with Avantis. Then, listeners ask:How can the Washington state estate tax be avoided?Do they have enough to live a confortable and enjoyable retirement?How do you find a financial advisor you can trust?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

What's the best way to create a retirement income stream from your investment portfolio. Today, Tom and Don share four popular income strategies. Then, we hear from you (actually, a few of you):Does it make sense to sell Apple stock to pay off a HELOC (home equity line of credit) early?What is the best way to invest an inheritance?How does money have to be withdrawn from a non-spousal inherited IRA?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Once thought to be nearly extinct (except for government workers), some major employers are bringing back the old fashioned pension plan. Does the apparent certainty of a pension make it a better retirement option than defined contribution plans, like 401k and 403b Plans? Plus, listeners ask:Should the proceeds from the sale of an investment property be moved into a DST (Delaware Statutory Trust)?Should a regular mutual fund be sold and an ETF purchased instead?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

In todays's Q&A session:Which funds should be used in a 403b?Thanks for the podcast.How much of fixed income should be in inflation hedges?How could a mom squeeze a bit more income out of her portfolio?Did it makes sense to sell bond funds and move into T-Bills?Is an umbrella liability insurance policy needed?How should a million dollar portfolio be invested?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

A recent list of "the best mutual funds" is best ignored. The funds prised in this piece are not great funds, just a few that got lucky by being in the right investments at the right time. Plus, most of the funds are eclectic, expensive, and extremely risky. Then, Tom defends his Bob Brinker criticism and a listener asks:Should a multi-fund portfolio be converted to ETFs?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Most know him as the "Wolf of Wall Street." After ripping on investors for millions of dollars, Jordan Belfort claims to have "seen the light" and now believes that low-cost, index-style investing is the path investors should take. Then, listeners look for help......with a Health Savings Account's (HSA) divestment allocation....understanding why the value of a dividend fund has barely moved.Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Forget the 4% rule, Dave Ramsey wants you to believe that you can take an 8% annual income from an American Funds (or other broker-sold) portfolio. We explain why that is incredibly unlikely.Then on to the questions:What's the best allocation among funds in the Thrift savings Plan?Should a REIT in a taxable account be sold and invested in something more tax-efficient?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

A new study of Americans financial knowledge shows that a sizable portion of us are woefully uniformed about financial matters. Tom and Don share the results and ideas for improving our fiscal education.Plus, listeners ask:What do we think of a move from bonds into T-bills?Is a financial advisor needed and why?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

This is the last show of Thanksgiving week, as Tom and Don are taking time off. In the episode, we discuss the many problems with 401k and 403b plans that keep employees from doing as well as they might in other types of accounts.Listeners want to know:Does it make sense to invest almost $500,000 in a jumbo CD?Why don't we make longer episodes and suggest people listen at higher speeds?What do (did) we think of Bob Brinker?In what order should retirement accounts be used for income?How much would a diversified account have made so far in 2023?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

Today, we talk about the biggest reason housing prices have stayed so high in a period of rising rates. We also consider the right time to sell a home and downside and the impact a changing real estate sales market might have on real estate agents careers. We discuss the foolishness of keeping money in low-yield savings accounts. We also hear from listeners:How should a brokerage accoiunt be consolidated?Getting a lot on a savings accounts and hoping rates stay high.Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

If you want to reduce the amount you pay the IRS in 2024, there are several things you can do before the year is up to reduce your tax burden. If you wait until it's time to file next April, your deduction options are severely limited.Listeners ask us:If I convert one IRA to a Roth, must I convert them all?How do you choose between financial advisors with widely divergent strategies?Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

In this episode, Don addresses the following:Why should a portfolio be rebalanced regularly?Is a state teacher's pension pre-tax money or can it be rolled over tax-free?What is the difference between the pre-tax, Roth, and after-tax 403b options?Finally, a listener appreciates the Medicare episode.Learn more about your ad choices. Visit megaphone.fm/adchoicesQuestions? Comments? Click!

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!