The Rational Reminder Podcast

There are many different considerations behind housing when you are in the position to choose between renting or buying. During this episode, hosted by Ben Felix and Dan Bortolotti, we address user questions and comments on homeownership, rentals, and the factors that may lead to choosing one over the other. We discuss what makes homeownership more attractive as your financial situation evolves, consider whether or not landlords are making money on their properties in 2024, and explore the explanations behind whether or not renters are less wealthy than owners. This conversation also touches on one of the most common misconceptions about housing, why it is untrue, and how to make this key decision of renting or buying based on both lifestyle and financial considerations and the difference in mindset between renters and buyers. Join us today to hear all this and more. Key Points From This Episode: (0:02:06) Homeownership versus renting with renovations and rental evictions in mind. (0:08:40) Understanding the risks and rewards associated with securitive tenure. (0:10:09) Factors that may influence changing needs that may influence whether you rent or buy. (0:15:58) Three factors that one user would include in an argument of renting versus buying. (0:18:25) Addressing the idea that it is equally expensive for a family or landlord to own a home. (0:21:00) How the cost of homeownership evolves with time and other factors. (0:24:50) Why owning a home is not above and beyond better than renting or owning with a mortgage. (0:27:50) Understanding factors beyond financial considerations when it comes to renting versus owning. (0:34:10) The difference in mindset between homeowners and renters and the benefits of both. (0:38:10) Why it is so beneficial to be open-minded and add to conversations rather than rejecting other people's ideas. (0:40:25) Ben tells the story from the start of his career and Dan shares his experience of feedback on the Canadian Couch Potato blog. Links From Today's Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://pwlcapital.com/our-team/?team-search=benjamin+felix Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/ Canadian Couch Potato — https://canadiancouchpotato.com/blog/

Have you ever wondered how financial markets performed centuries ago or how world events impacted stock prices? Today, we sit down with Dr. Bryan Taylor, President and Chief Economist at Global Financial Data, to unpack the world's fascinating financial history. Dr. Taylor is known for his extensive work in collecting and analyzing historical financial data that spans several centuries and his valuable knowledge of stock, bond, and commodity market trends, which led to the creation of Global Financial Data. In our conversation, Dr. Taylor shares insights from his extensive research, covering stock and bond returns from as far back as the 1600s. From the impact of the French Revolution on financial markets to the performance of commodities, Dr. Taylor provides a rare view of the long-term trends shaping today's financial decisions. Learn about the value of historical financial data, its importance for investment decision-making, and how long-term trends can provide insights into future market behaviour. We discuss the creation of Global Financial Data's extensive historical financial database, the challenges of gathering centuries-old data, and the long-term performance of stocks versus bonds. Explore the impact of major geopolitical events on financial markets, the importance of studying historical market trends for modern investment decisions, and how his data-driven research has been utilized. Join us as we delve into the world's financial history and its relevance to today's investment landscape with Dr. Bryan Taylor. Tune in now! Key Points From This Episode: (0:03:41) Background about Global Financial Data, their data sources, and the challenges of collecting historical data. (0:09:27) What he finds fascinating about historical data, who uses the database, and the role of historical data in financial decision-making. (0:14:49) How stocks have performed relative to bonds throughout the financial records. (0:17:34) Uncover the main historical factors that limit returns and increase risk for investors and the five financial eras. (0:23:18) Explore the trends in stocks and bonds during the five financial eras and the impact of government debt and inflation on returns. (0:29:04) Common characteristics of countries that have had bad long-term market outcomes and the effect of world events on markets. (0:35:11) Learn about the best and worst-performing markets and what makes the US market so resilient. (0:38:36) His outlook for stocks and bonds and how the recent bear market compared to past market upheavals. (0:41:36) Compare past and current interest rates and the return on commodities versus stocks and bonds. (0:46:20) Overcoming the lack of historical data for emerging market returns and what defines an emerging market. (0:52:29) Find out how emerging markets have performed throughout history and how often they make the transition to developed. (0:59:04) Unpack the historical market concentration in the US and his thoughts on the expected returns of the US stock market. (1:03:42) Final takeaways and Dr. Bryan Taylor shares his definition of success. Links From Today's Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP Dr. Bryan Taylor — https://www.linkedin.com/in/bryan-taylor-46a92032/ Global Financial Data — https://globalfinancialdata.com/ Dr. Bryan Taylor on SSRN — https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=4320002 Papers From Today's Episode: 'France and the Four Horsemen of the Market' — https://globalfinancialdata.com/france-and-the-four-horsemen-of-the-market 'The Financial History of Emerging Markets: New Indices' — https://dx.doi.org/10.2139/ssrn.4193062

Is renting just "throwing money away," or could it be the smarter financial choice? In this episode, we dive deep into one of the most debated topics in personal finance: renting versus owning a home. In our conversation, we discuss the nuances of renting versus owning, the hidden costs of buying a home, and the importance of saving discipline. Tuning in, you'll discover how emotional biases may inflate real estate prices and how societal pressures influence housing decisions. Then, we shift our focus to a listener's question about interest rates and bonds. Dan explains how bond prices and yields work inversely and delves into the concept of bond duration. He also breaks down how long and short-term bonds react to interest rate changes and why the Bank of Canada's influence on bond markets may not always be straightforward. Join us as we investigate the pros and cons of renting versus buying and how to leverage bonds effectively in a dynamic interest rate environment! Key Points From This Episode: (0:03:54) Exploring the common belief that owning a home is universally better. (0:09:13) How buying and renting in Canada compares to other countries. (0:10:58) Some of the inherent risks of renting versus buying in Canada. (0:17:01) Methods to test how housing performed as an asset with examples. (0:21:04) The importance of analyzing real data, and Ben presents his findings. (0:31:03) How housing costs influence the financial outcome of renting versus owning. (0:35:51) Ways that mortgages, housing costs, and forced savings affect wealth accumulation. (0:47:34) Unpacking how maintenance costs serve as a proportion of the building value. (0:52:45) Renting versus buying takeaways and the associated psychological factors. (1:00:37) Dan's take on whether long-term bonds can take advantage of falling interest rates. (1:10:55) Insight into how various market-driven factors influence the long-term return on bonds. (1:13:30) Aftershow: final takeaways, catch-up, news, and more. Links From Today's Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310 Canadian Couch Potato — https://canadiancouchpotato.com/ Future Proof Conference — https://futureproofhq.com/ CMHC (Canada Mortgage and Housing Corporation) Rental Market Survey Data — https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-data/data-tables/rental-market/rental-market-report-data-tables Episode 196: Sebastien Betermier — https://rationalreminder.ca/podcast/196 Episode 308: Dan Bortolotti — https://rationalreminder.ca/podcast/308 Statistics Canada — https://www.statcan.gc.ca/ Bank of Canada — https://www.bankofcanada.ca/ National Council of Real Estate Investment Fiduciaries (NCREIF) — https://www.ncreif.org/ REALTOR.ca — https://www.realtor.ca/ Kevin Prins — https://www.bmoetfs.ca/specialists/kevin-prins BMO Canadian ETF — https://www.bmoetfs.ca/ Financial Planning Association of Canada — https://www.fpassociation.ca/ Papers From Today's Episode: 'Assessing High House Prices: Bubbles, Fundamentals and Misperceptions' — https://www.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?' — https://doi.org/10.1111/j.1540-6229.2011.00321.x 'Perception of House Price Risk and Homeownership' — https://www.nber.org/papers/w25090 'Owner-Occupied Housing as a Hedge Against Rent Risk' — https://doi.org/10.1093/qje/120.2.763 'To Rent or Buy? A 30-Year Perspective' — https://www.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' — https://www.philadelphiafed.org/-/media/frbp/assets/working-papers/2005/wp05-7.pdf 'Depreciation of Housing Capital, Maintenance, and House Price Inflation: Estimates F

Can we really understand the impact of passive ownership on the US market? Marco Sammon is an Assistant Professor in the Finance Unit at Harvard Business School. During this episode, he joins us to share deep insights into the complex and counter-intuitive nature of the index fund revolution. To kick off our conversation, we discuss some of the challenges associated with getting a true understanding of the scope of passive ownership across the US. Distinguishing between different approaches to investment, we begin to unpack Marco's paper with Alex Chinco, titled 'The Passive-Ownership Share Is Double What You Think It Is'. We touch on the relevance of Grossman Stiglitz in 2024, pricing and reconstitution, and the ins and outs of employee stock and compensation. Using the case studies of huge global firms, we consider how to best accommodate passive demand. Lastly, as an index investor who does not own index funds, Marco shares his opinion on whether index funds have had a net positive or negative impact on financial markets. Tune in today to get a more dynamic view of the complex world of index funding and investment. Key Points From This Episode: (0:00:45) Index funds, index and passive investments, and why Professor Marco Sammon is perfectly positioned to unpack these concepts. (0:03:36) The challenges of understanding just how big passive ownership is in the US market. (0:08:16) Distinguishing between partial investment, direct investment and passive funds. (0:10:14) Important concepts on the closing auction and which indexes Marco focuses on. (0:15:50) Defining the Grossman-Stiglitz framework and its validity in 2024. (0:20:36) Evolving ideas around pricing and reconstitution over time. (0:23:05) Why indexing is a fixed-point problem and how to measure market efficiency. (0:32:19) Nuances of security demands around indexing and how it differs from other investors. (0:38:02) Employee compensation and reverse causality as illustrated by Marco's friend. (0:42:10) Why it is important to distinguish between equal-weighted and value-weighted. (0:44:13) How huge firms like Facebook and Tesla accommodate passive demand. (0:48:19) Conditions that affect the responsiveness of firms in accommodating passive demand. (0:51:13) The 'Dead Reckoning' metaphor to describe how we can know who is clearing the market. (01:02:22) Marco's thoughts on whether index funds have had a net positive or negative impact. Links From Today's Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Marco Sammon — https://marcosammon.com/ Marco Sammon on X — https://x.com/mcsammon19 Episode 302: Michael Green — https://rationalreminder.ca/podcast/302 Papers From Today's Episode: 'The Passive-Ownership Share Is Double What You Think It Is' — https://www.hbs.edu/ris/Publication%20Files/double-what-you-think-it-is%20may%2023_3c1ae213-5aec-407d-b656-13e3822f0b8b.pdf 'On the Impossibility of Informationally Efficient Markets' — http://www.dklevine.com/archive/refs41908.pdf 'Capital Asset Prices With and Without Negative Holding' — https://ideas.repec.org/p/ris/nobelp/1990_003.html Do Demand Curves for Stock Slope Down? — https://www.jstor.org/stable/2328486/

How can the Rational Reminder Podcast get even better? By bringing back one of its most beloved voices, Dan Bortolotti, also known as "The Spud." In this exciting episode, hosts Ben Felix, Cameron Passmore, and Mark McGrath announce that Dan, the mind behind the Canadian Couch Potato Podcast, will now be a regular guest, contributing segments like "Bad Investment Advice" or "Ask the Spud." Before Dan joins the conversation, we have an insightful discussion with Håkon Kavli, CIO of Reitan Kapital. Håkon shares how his team manages the wealth of one of Norway's most prominent families, comparable to Canada's Weston family. We discuss Reitan Kapital's evidence-based investing approach, their robust methods for overcoming portfolio optimization challenges, and much more. Håkon also sheds light on their upcoming investing conference in Norway, featuring speakers like our very own, Cameron Passmore, and Marcos López de Prado. Following this, Dan kicks off his return by dissecting an article that advocates going all-in on the QQQ ETF in an RRSP, exposing the dangers of such a concentrated and risky strategy. He contrasts this approach with the wisdom of diversifying across global markets, using examples like Vanguard's VEQT ETF, which offers exposure to over 13,000 stocks worldwide. Additionally, if you're a financial advisor interested in joining a planning-focused, fiduciary firm like PWL Capital, we encourage you to reach out. Our team is growing, and we're looking for like-minded individuals to join our mission. Tune in for a rich mix of expert advice, thoughtful discussions, and exciting announcements! Key Points From This Episode: (0:00:28) Announcements: a new regular guest, PWL's call for like-minded advisors, and more. (0:04:15) Introducing Håkon Kavli, the Reitan family, and the origins of Reitan Kapital. (0:08:06) Reitan Kapital's investment philosophy and asset allocation strategy. (0:10:29) The biggest differences between a Reitan Kapital portfolio and a market portfolio. (0:13:19) Capital market assumptions; how they influence Reitan Kapital's investment process. (0:20:38) Portfolio optimization challenges and Reitan's robust methods for addressing these. (0:35:06) The role of private equity in a diversified portfolio and how it differs from public equity. (0:38:40) Fee structure significance in private equity investments and their impact on returns. (0:40:38) Risks associated with private equity and how they compare to public markets. (0:43:36) Reitan Kapital's view on how private equity fits into a diversified portfolio. (0:49:08) Challenges of investing in private equity for retail investors. (0:50:26) Why so many institutions and firms have substantial allocations to private markets. (0:53:58) An overview of the research Håkon is most excited about. (0:56:20) Details for the upcoming conference in Norway, featuring Cameron Passmore. (0:59:16) Dan's Bad Investment Advice segment; going all-in on the QQQ ETF in an RRSP. (01:13:12) Our aftershow segment: listener feedback, our next meetup in Ottawa, a shoutout to Jason Pereira, and more. Links From Today's Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP Dan Bortolotti — https://www.canadianmoneysaver.ca/authors/dan-bortolotti Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/ Canadian Couch Potato Blog — https://canadiancouchpotato.com/ Canadian Couch Potato Podcast — https://canadiancouchpotato.com/podcast/ Episode 308: Dan Bortolotti — https://rationalreminder.ca/podcast/308 Håkon Kavli on LinkedIn — https://www.linkedin.com/in/haakonkavli/ Reitan — https://reitan.no/no Reitan Kapital — http://www.reitankapital.no/ Weston — https://www.weston.ca/en/Home.aspx Marcos Lopez de Prado — https://www.orie.cornell.edu/faculty-directory/marcos-lopez-de-prado Antti Ilmanen — https://www.aqr.com/About-Us/OurFirm/Antti-Ilmanen Episode 224: Prof. Scott Cederburg — https://rationalreminder.ca/podcast/224 Sharpe ratio — https://www.investopedia.com/terms/s/sharperatio.asp Ep

Have you ever wondered how vibes can shape the economy? Or how the economy differs from financial markets? Or even how meme stocks operate? In this episode, we dive into the intersection of economic theory, social media, and public sentiment with Kyla Scanlon, an insightful economic commentator known for her relatable approach to explaining complex economic concepts. Kyla is a prolific content creator and founder of the financial education company, Bread. She produces a weekly newsletter, informative YouTube videos, the Let's Appreciate Podcast, and (almost) daily short-form videos that break down complex economic concepts into engaging, bite-sized content. She's also the author of In This Economy?: How Money & Markets Really Work, an indispensable guide to the "mad math and terrible terminology" of economics. Join us as we explore her unique vibecession concept, discuss the impact of social media-driven market movements, examine the housing crisis through the lens of generational wealth transfer and zoning laws, and much more. As Kyla explains it, economics isn't just about numbers. It's about the stories we tell and how they influence the world around us. For a fun, fascinating, and highly accessible look at the state of the economy today, don't miss this conversation with one of the internet's favorite financial educators! Key Points From This Episode: (0:03:19) Kyla's definition of economics, who the main players are, and how it's understood. (0:05:04) How "vibes" influence the economy and intersect with economic theory and reality. (0:07:07) Money, its impact on the economy, and whether GDP reflects economic health. (0:09:45) Ways that expectations about inflation affect vibes in the economy. (0:10:50) Kyla's take on housing, what people get wrong about it, and renting versus owning. (0:15:16) Surprisingly simple reasons for the housing crisis in the US and beyond. (0:17:48) Key distinctions between financial markets, the economy, and the stock market. (0:20:53) The difference between investing, speculating, and gambling. (0:22:08) GameStop, meme stocks, and the power of social media. (0:24:43) Reasons that "new era" thinking is dangerous and where crypto went wrong. (0:29:49) How to know when we're in a recession and what a "vibecession" is. (0:33:52) Why US national debt isn't always bad and why the Federal Reserve exists. (0:39:43) Problems that can arise from strictly adhering to economic beliefs. (0:42:53) Ways that the economy is connected to the mental health of individuals. (0:45:10) The impact of social media and media business models on vibes. (0:48:45) Kyla's biggest learnings from her work and how she defines success. Links From Today's Episode: Meet with PWL Capital — https://calendly.com/d/3vm-t2j-h3p Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582 Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP Kyla Scanlon — https://kylascanlon.com/ In This Economy?: How Money & Markets Really Work — https://www.penguinrandomhouse.com/books/737854/in-this-economy-by-kyla-scanlon/ Let's Appreciate Podcast — https://open.spotify.com/show/6ziXCBAojpLDKtexx8bxds TLDR Podcast — https://wealthsimple-tldr-podcast.simplecast.com/ Kyla Scanlon Newsletter — https://kyla.substack.com/ Kyla Scanlon on LinkedIn — https://www.linkedin.com/in/kylascanlon/ Kyla Scanlon on YouTube — https://www.youtube.com/@KylaScanlon/ Kyla Scanlon on Instagram — https://www.instagram.com/kylascan/ Kyla Scanlon on TikTok — https://www.tiktok.com/@kylascan Kyla Scanlon on X — https://x.com/kylascan 'The Vibecession: The Self-Fulfilling Prophecy' — https://kyla.substack.com/p/the-vibecession-the-self-fulfilling Federal Reserve DFA (Distributional Financial Accounts) Chart — https://www.federalreserve.gov/releases/z1/dataviz/dfa/distribute/chart/ Federal Reserve SLOOS Report — https://www.federalreserve.gov/data/sloos.htm Michael Mauboussin — https://www.michaelmauboussin.com/ FedNow — https://www.frbservices.org/financial-services/fednow National Bureau of Economic Research — https://www.nber.org/ Justin Wolfers on X — https://x.com/JustinWolfers 'Why Gen Z is Rewriting the Rules of Work' — htt

Which account should you choose, a registered retirement savings plan (RRSP) or a Tax-free savings account (TFSA)? This is one of the most common decisions that Canadians must make when it comes to investing, but it will also elicit some of the most passionate responses. RRSPs especially get a lot of undue skepticism, with some even labelling it as a scam. Today we take a deep dive into both of these savings accounts, exploring the downsides and benefits of each, and how to decide which account is right for you based on your savings goals. With the help of Conquest Planning, a specialized, in-depth modelling tool, we look at a range of scenarios incorporating different variables, like income and family size, and break down our analysis regarding the RRSP vs. TFSA decision for each scenario. We discuss key factors to consider, including the basic personal amount tax credit, which allows RRSPs to act as a tax flow-through, and the guaranteed income supplement (GIS), which can impact retirement planning. Our conversation also examines how to approach family size and longevity, as RRSPs become more advantageous with longer lifespans. Join us today to learn about the benefits and flexibility of each of these accounts, the surprising ways RRSPs often outperform TFSAs, and find out which one is right for you! Key Points From This Episode: (0:00:20) An introduction to the RRSP vs. TFSA debate. (0:08:11) How we used the Conquest Planning tool and the scenarios we analyzed. (0:10:34) Taxation and contribution considerations and strategies for RRSPs and TFSAs. (0:20:11) An analysis of scenario one; $60,000 income and no children. (0:22:38) Basic personal amount tax credit; how it allows RRSPs to act as a tax flow-through. (0:27:20) The Guaranteed Income Supplement (GIS) and its impact on RRSP vs. TFSA analysis in different scenarios. (0:36:16) How GIS is tied to Old Age Security (OAS) payments. (0:41:12) An analysis of scenario two; a couple with two children, and the impact of the Canada Child Benefit on RRSP vs. TFSA contributions. (0:45:21) The impact of mortality and longevity on RRSP and TFSA in various scenarios. (0:47:01) Main takeaways from today's scenarios and the advice our hosts would give to different clients regarding TFSAs and RRSPs. (0:50:50) Why RRSPs are of greater benefit if you live longer compared to TFSAs. (0:52:13) Our aftershow section: listener feedback, what Ben is working on regarding renting versus buying, the zombie apocalypse, and more. Links From Today's Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP Brady Plunkett on LinkedIn — https://www.linkedin.com/in/brady-plunkett-712489105/ Lukas Fleck on LinkedIn — https://www.linkedin.com/in/lukasfleck/ Flossing for your Finances, Personal Financial Strategies for Dentists — https://us06web.zoom.us/webinar/register/9017236574029/WN_7O_JdvejRhmh-_LleBNRmQ#/registration Episode 317: Kevin Milligan — https://rationalreminder.ca/podcast/317 Papers From Today's Episode: 'Tax Uncertainty and Retirement Savings Diversification' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2799288

If you're in the Canada Pension Plan (CPP), then you won't want to miss today's conversation with Canada's Chief Actuary, Assia Billig. Assia's knowledge of the CPP is extensive, having joined the Office of the Chief Actuary (OCA) in 2008, where she was involved in the preparation of statutory actuarial reports on the Canada Pension Plan and Old Age Security Program. She has served as Chief Actuary of the Government of Canada since 2019, and, before joining the OCA, she worked in private pension consulting. She is also a Fellow of the Society of Actuaries and the Canadian Institute of Actuaries. Assia joins us today for a deep dive into the most common questions about the Canada Pension Plan, from the inner workings of its financial components to the quality of governance that drives it. Discover the world-leading topics she and her team investigate, the immense power and research behind their analysis, and why the CPP is set to be sustainable for the next 75 years. We also discuss the concerns some people have about the CPP's longevity, before examining how the actuarial report on the sustainability of the CPP, conducted every three years, reliably addresses this. If today's conversation with Canada's chief actuary does not instill confidence and pride in Canada's investment in our collective retirement, then we don't know what will! Tune in, to hear all of Assia's keen insights and discover why she is unequivocally the best person to talk about the sustainability of the CPP. Key Points From This Episode: (0:00:18) Introducing today's guest, Assia Billig and the Canada Pension Plan (CPP). (0:04:53) What the main function of the Office of the Chief Actuary is. (0:06:28) The independence of Assia's office and the work that they do. (0:07:09) Unpacking the main purpose of the actuarial report on the Canada Pension Plan. (0:09:22) Changes that the report triggers to contribution or benefit rates. (0:13:04) Main revenue sources for the CPP and how base CPP benefit payments are funded. (0:14:56) Base CPP's funded status and how funding differs for additional CPP. (0:20:32) The sustainability of base and additional CPP and how sustainability is measured. (0:23:22) Primary assumptions that go into sustainability analysis at the high level. (0:27:31) Estimating expected returns for assets managed by CPP investments. (0:30:37) The plan's level of sensitivity to lower realized returns and other variables. (0:35:22) How lower overall economic growth and inequality affect the plan's sustainability. (0:37:15) Measuring the impact of variables like climate change and other catastrophic events. (0:43:01) When the minimum contribution rate exceeds the current legislated contribution rate. (0:44:12) Assia's response to people who are skeptical of the CPP's future sustainability. Links From Today's Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP Assia Billig — https://www.osfi-bsif.gc.ca/en/oca Assia Billig on LinkedIn — https://www.linkedin.com/in/assia-billig-9b861587/?originalSubdomain=ca

Today, we sit down with Professor Kevin Milligan to unpack the recent capital gain changes and the complexities of the Canadian tax system. Kevin Milligan is a Professor of Economics at the Vancouver School of Economics, University of British Columbia. He holds positions as a Scholar-in-Residence at the C.D. Howe Institute and a Research Associate at the National Bureau of Economic Research. A two-time recipient of the Purvis Prize, Professor Milligan's work is recognized for its significant contributions to Canadian economic policy. His research focuses on public and labour economics, particularly concerning the economics of children and the elderly, along with tax and labour market policy issues. In our conversation, we dive deep into capital gains tax, the progressivity of the tax system, and the distribution of tax burdens among different income groups. We explore the intricate details of who bears the burden of corporate taxes, the impact of recent capital gains changes, and the intriguing relationship between income and longevity in Canada. Professor Milligan also shares insights from his research on longevity and the implications of tax policies on economic behaviour. Join us and uncover the truths about Canada's tax system, capital gains changes, and their profound impacts on Canadians. Tune in now! Key Points From This Episode: (0:07:20) Background about Professor Milligan and an outline of today's topic. (0:10:10) Complexities behind tax policy and recent capital gains changes in Canada. (0:14:22) Distribution of tax rates in Canada and how progressive the tax system is. (0:20:12) Analysis of how the Canadian tax system is applied to the top 1% of earners. (0:22:28) The theory behind capital income and how it relates to personal income tax. (0:26:40) Explanation of tax integration and how income tax accounts for corporate taxes. (0:29:53) Impact of the capital gains tax changes and Canada's overall tax progressivity. (0:40:55) How the new capital gains inclusion rate affects integration for incorporated business. (0:46:32) The interplay between corporate investment, capital taxation, and productivity. (0:54:11) Historical changes in tax rates and the shift of average tax rates over time. (0:57:14) His perspective on the increase of the capital gains inclusion rate in Canada. (0:58:35) Explore the correlation between income levels and longevity in Canada. (1:03:30) Geographic longevity differences and policy implications for longevity. (1:07:55) Implications of longevity trends on personal financial planning. (1:13:24) Takeaways from a past episode, an update on Mark's book, and more. Links From Today's Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemind Rational Reminder on TikTok — www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP Professor Kevin Milligan — https://sites.google.com/view/kevin-milligan/home Professor Kevin Milligan on X — https://x.com/kevinmilligan The Vancouver School of Economics — https://economics.ubc.ca/ C.D. Howe Institute — https://www.cdhowe.org/ National Bureau of Economic Research — https://www.nber.org/ Canadian Tax Journal — https://www.ctf.ca/EN/EN/Publications/CTJ.aspx Episode 316: Andrew Chen — https://rationalreminder.ca/podcast/316 Papers From Today's Episode: 'How Progressive is the Canadian Personal Income Tax? A Buffett Curve Analysis' — https://utpjournals.press/doi/10.3138/cpp.2021-087 'The Evolution of Longevity: Evidence from Canada' — https://onlinelibrary.wiley.com/doi/10.1111/caje.12497

Are you curious about the hidden factors driving your investment decisions? Today's guest is Andrew Chen, a Principal Economist at the Federal Reserve Board who focuses on monetary policy and financial stability. Published in leading journals, his research informs key policy decisions and helps shape the Federal Reserve's strategy for managing economic challenges effectively. In this episode, Andrew delves into the intricacies of meta-research and asset pricing, focusing on cross-sectional asset pricing predictors, replication, and out-of-sample performance in factor investing. We discuss the significance of open-source data and transparency, highlighting Andrew's creation of the Open Source Asset Pricing project, an indispensable and comprehensive dataset for asset pricing predictors. We also address the challenges of replicating financial studies, publication bias, data mining, and false discovery rates, with Andrew offering practical insights on how these factors impact financial research and investment decisions. For actionable insights that could refine your investment strategies and enhance your understanding of financial research, don't miss this fascinating conversation! Key Points From This Episode: (0:03:43) What an asset pricing factor is and how it differs from a predictor. (0:04:25) Three plausible explanations for why cross-sectional predictors exist. (0:05:45) Insight into Andrew's Open Source Asset Pricing project and why it's so important. (0:09:49) Where the results of his research diverge from other papers on the subject. (0:11:42) How the returns on anomalies in his data sample change post-publication. (0:12:33) Implications of this research for the "replication crisis" in cross-sectional asset pricing. (0:14:14) Challenges of false discovery rates, publication bias, and out-of-sample returns. (0:18:37) The effect of transaction costs on expected returns from factor investing. (0:22:02) Problems with estimating factor expected returns using historical data. (0:26:08) A big-picture view of the factors with the strongest investable expected returns. (0:29:12) The relative value of peer-reviewed factors with strong theoretical underpinnings. (0:35:13) Whether or not machine learning can be useful for asset pricing research. (0:37:39) Practical advice for using financial research to inform your investment decisions. (0:40:08) Andrew's take on the current state of cross-sectional asset pricing. (0:42:58) The simple way that Andrew defines success for himself. Links From Today's Episode: Rational Reminder on Apple Podcasts — https://podcasts.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582 Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/@rationalreminder/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP Andrew Chen — https://sites.google.com/site/chenandrewy/ Federal Reserve Board — https://www.federalreserve.gov/ Andrew Chen on LinkedIn — https://www.linkedin.com/in/andrew-chen-63394169/ Andrew Chen on X — https://x.com/achenfinance Open Source Asset Pricing Project — https://www.openassetpricing.com/ Center for Research in Security Prices — https://www.crsp.org/ Books From Today's Episode: The Adaptive Markets Hypothesis: An Evolutionary Approach to Understanding Financial System Dynamics — https://www.amazon.com/dp/0199681147 Papers From Today's Episode: Andrew Chen, Tom Zimmermann, 'Open Source Cross-Sectional Asset Pricing'— https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3604626 Kewei Hou, Chen Xue, Lu Zhang, 'Replicating Anomalies' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3275496 R. David McLean, Jeffrey Pontiff, 'Does Academic Research Destroy Stock Return Predictability?' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2156623 Ilia D. Dichev, 'Is the Risk of Bankruptcy a Systematic Risk?' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=99868 Campbell R. Harvey, Yan Liu, Caroline Zhu, '…and the Cross-Section of Expected Returns' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2249314 Andrew Chen, Mihail Velikov, 'Zeroing in on the Expected Returns of Anomalies' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3073681 Andrew Chen, Alejandro Lopez-Lira, Tom Zimmermann, 'Does Peer-Reviewed Research Help Predict Stock Returns?' — https://papers.ssrn.com/sol3/papers.cfm?

During this episode, we welcome back Eduardo Repetto, Chief Investment Officer of Avantis Investors. In his leadership capacity, he directs research design and the implementation of strategies and oversees the investment team and marketing initiatives. Our conversation kicks off with Edoardo's explanation of how Avantis systemizes active management before we dive into strategies for launching in Europe and beyond. He weighs in on the most significant capacity issues that people face today, offering solutions to tweak your approach. We touch on what makes Avantis strategies preferable for advisors and Eduardo shares his insights on the future of small-cap value strategies for emerging markets. We discuss short-term reversals, towing the line between growth and value and factors that should inform asset allocation before diving deeper into small-cap value in the US and Canada. Tune in today to hear more. Key Points From This Episode: (0:05:51) What sets Avantis Investors apart from other investment firms. (0:09:26) Five strategies for launching in Europe starting with free and equity UCITS. (0:14:00) Accessing UCITS and adapting strategies in accordance with currencies, geographical regulations and restrictions. (0:22:49) The most significant capacity issue: an inability to invest cashflows. (0:27:59) Feedback from the advisor community on why they are choosing Avantis strategies. (0:32:43) Eduardo's view on the future potential for the emerging markets small cap value strategy. (0:35:58) Improvements and adaptations to portfolio implementation at Avantis since 2019. (0:39:01) The controversial nature of short-term reversals and advice for investors thinking about growth and value. (0:44:40) What should inform asset-allocation decision-making. (0:45:46) The potential of expanding into a Canadian base. (0:50:16) Mark's thoughts on small-cap value in the US and Canada. Quotes: "We have to adapt to the regulatory framework. But the strategies are the same. We manage the strategies in the same way, with the same people, with the same philosophy." — Eduardo Repetto (0:17:44) "Just expand the offering. Anywhere we go, we do the same because that's the right thing to do. That's the right thing to help people that trust you on day one." — Eduardo Repetto (0:21:52) "So, if you think about our valuation, we are using today's profits as a proxy for future profits. Can you improve that proxy? Can you have something better to say, about not level, but changes in level?" — Eduardo Repetto (0:41:16) Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Eduardo Repetto on Linkedin — https://www.linkedin.com/in/eduardo-repetto-653231155/ Avantis Investors — https://www.avantisinvestors.com/ Episode 313 — https://rationalreminder.ca/podcast/313 Econompic — https://econompicdata.blogspot.com/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP

In this episode, we sit down with Professor Valentin Haddad to unpack the intricacies of market elasticity, passive investing, and the dynamic nature of financial markets. Valentin is an Associate Professor of Finance at UCLA Anderson School of Management and a research fellow for the National Bureau of Economic Research's Asset Pricing Program. His research focuses on how financial institutions trade, and manage risk, and their impact on market prices and the broader economy. Notably, his work challenges traditional assumptions, such as the perceived safety of life insurance companies' investments in Treasuries. In our conversation, we delve into the impact of index funds on the market, stock market bubbles around the development of new technology, and the response of investment-grade corporate bonds to the COVID-19 crisis. Discover the definition of demand elasticity, strategic interaction, and how market elasticity has changed over time. Explore how he defines a market bubble, ways stock market bubbles are related to new technology, and how to measure the value of innovation. We also discuss the impact of COVID-19 on investment-grade corporate bonds, the Federal Reserve's response, the implications for bond safety, and much more. Tune in and join us as we uncover the mess of the market with Professor Valentin Haddad! Key Points From This Episode: (0:03:10) The impact of passive investing on financial markets, what investors' demand elasticity is, and the role of index funds. (0:06:07) Learn about strategic interactions, their influence on financial markets, and how they react to rising passive investing. (0:10:10) Why active investors' options are limited in a passive investment landscape and how demand elasticities influence asset prices. (0:13:05) How individual investor elasticities are related to aggregate market elasticity and the ways investor elasticity has changed. (0:20:54) Large and small stock elasticity trends, the implications of his research for asset prices, and the relationship between elasticity and information. (0:25:32) His opinion on a bubble in large stocks forming due to flows into index funds and how market bubbles drive innovation. (0:29:31) Potential measures to address the issues with index funds and how individual investors should be reacting to the situation. (0:34:46) Unpack how he defines a market bubble, measuring the value of innovation, and their effect on the value of technology. (0:42:29) What his research findings mean for innovation policy and what to consider before investing in innovative companies. (0:46:33) Insights from his paper examing the impact of COVID-19 on fixed-income and the different market reactions. (0:53:40) Explore the Fed's intervention during the pandemic, what effect it had, and the safety that bonds offer during a crisis. Quotes: "You choose how you trade based on how other people are trading. So, it's not really just what you like to do, but how you react to others in the market." — Professor Valentin Haddad (0:06:40) "If nobody's acquiring information, then markets are very inefficient. Then, you should step in, in a way. So, if everybody is becoming passive, there are more gains for being not passive." — Professor Valentin Haddad (0:22:59) "Speculation often comes with innovation." — Professor Valentin Haddad (0:28:30) "I think these concerns with passive investing are meaningful. I don't think it's quite yet the time for a very strong regulatory call. Regulators should keep track of this evolution." — Professor Valentin Haddad (0:31:42) "You can gain from bubbles, but at the end, the end of the bubble comes. The long-term gains of innovation are still there, but many people who partake in the bubble are going to suffer a lot." — Professor Valentin Haddad (0:43:57) Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Professor Valentin Haddad — https://sites.google.com/site/valentinhaddadresearch/ Professor Valentin Haddad on LinkedIn — https://www.linkedin.com/in/valentin-haddad-0056843/ Professor Valentin Haddad Email — [email protected] UCLA Anderson School of Management — https://www.anderson.ucla.edu/ National Bureau of Economic Research (NBER) — https://www.nber.org/ Episode 212: Prof.

Low-cost index funds and digital tools have revolutionized wealth-building, making it easier than ever before to manage your own investment portfolio. However, additional support and expert advice can be critical to help you reach your financial goals, especially when facing complex financial decisions, feeling overwhelmed, or deciding to change your investment strategy. Today on the Rational Reminder Podcast, we discuss when it makes sense to hire a full-service financial advisor, whether or not every investor needs one, and how professional guidance can enhance your financial outcomes. You'll find out how delegating your financial decision-making can not only boost your wealth but also improve your wellbeing, increase your peace of mind, and mitigate the impact of cognitive decline on your financial decisions as you age, plus so much more. For valuable insights that could transform your financial future, tune in today! Key Points From This Episode: (0:02:15) Why you would hire a financial advisor when DIY investing is so easy. (0:06:35) The services that financial advisors offer and how you can benefit from them. (0:10:09) What investor inertia is, how to overcome it, and what the trade-offs are. (0:16:31) How delegating financial decision-making can improve wealth and wellbeing. (0:18:16) Insight into the value of financial advice for retirement planning. (0:22:17) Your Trusted Contact Person (TCP) and why they matter. (0:23:05) Ways that financial literacy shapes demand and expectations for financial advice. (0:24:21) Common reasons that people seek professional financial advice. (0:26:22) How financial advisors act as a commitment device for good financial behaviours. (0:27:47) Important considerations and questions to ask when hiring a financial advisor. (0:32:43) Our after-show observations, feedback, banter, updates, and more! Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP 'Why Do Investors Hire Their Financial Advisor?' — https://www.morningstar.com/financial-advisors/why-do-investors-hire-their-financial-advisor 'Why Do Investors Keep Their Financial Advisors Around?' — https://www.morningstar.com/financial-advisors/why-do-investors-keep-their-financial-advisors-around Center for Fiduciary Excellence (CEFEX) — https://www.cefex.org/ Papers From Today's Episode: 'Time Is Money: Rational Life Cycle Inertia and the Delegation of Investment Management' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2350785 'The Use and Value of Financial Advice for Retirement Planning' — https://www.pm-research.com/content/iijretire/7/3/46 'Professional Financial Advice and Subjective Well-Being' — https://www.researchgate.net/publication/359635224 'Smoking Hot Portfolios? Overtrading from Self-Control Failure' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3347625

Discover the hidden underbelly of financial markets in today's episode featuring Professor John M. Griffin, a leading forensic finance expert and the James A. Elkins Centennial Chair in Finance at McCombs School of Business at the University of Texas at Austin. Tuning in, you'll learn how forensic finance exposes illicit activities in crypto markets, revealing how entities like Tether (a cryptocurrency pegged to the US dollar) facilitate scams and money laundering. We also delve into the disturbing world of pig butchering scams, which have stolen more than $75 billion from victims globally, and how the victims of these scams have helped John study the flow of illicit funds in crypto markets. Find out how John uncovered massive fraud in the Paycheck Protection Program during the COVID-19 pandemic, and how this exposed the central role of fintech lenders and social networks in spreading fraud. We also discuss the importance of rigorous academic research and its practical implications in uncovering financial fraud, emphasizing the need for robust oversight and transparency in both emerging and traditional financial systems. Tune in for a thought-provoking discussion that challenges established practices and calls for greater scrutiny in financial systems! Key Points From This Episode: (0:05:23) An overview of John's research, the definition of forensic finance, and what sets forensic finance research apart from more traditional finance papers. (0:09:55) The economics of pig butchering scams and how the victims of these scams help John study the flow of illicit funds in crypto markets. (0:14:42) How crypto exchanges fail to monitor for potential scammer activity. (0:18:44) The role of so-called legitimate crypto exchanges in criminal activity; why Tether (a cryptocurrency pegged to the US dollar) is the most important cryptocurrency in scam activity. (0:21:43) Unpacking the $75 billion figure in John and Kevin Mei's paper on Pig Butchering and how it finances slavery; how this compares to fraud estimates from firms like Chainalysis. (0:26:25) How the methods in John and Kevin's paper can be used to improve the monitoring of crypto exchanges, and how the crypto community has responded to their paper. (0:29:14) An overview of John's paper on Tether with Amin Shams and how often fraud and misinformation are associated with asset price bubbles. (0:30:52) What Tether is, the difference between it being demand-driven or pulled, and supply-driven or pushed, and why Tether creators want to inflate the price of Bitcoin. (0:34:46) Decentralization in the crypto space and why decentralized finance is a misnomer, how to test whether Tether is pushed or pulled, and investigating Tether's relationship to Bitcoin. (0:35:56) How to test whether Tether is pushed or pulled; investigating Tether's relationship to Bitcoin and how it can be exploited by bad actors. (0:42:05) Tether's response to John's paper and why he tries not to listen to nay-sayers with vested interests. (0:46:10) John and his co-writers' findings on the prevalence of fraud in the Paycheck Protection Program (PPP) during the COVID-19 pandemic. (0:48:05) The role of fintech lenders and social networks in the propagation of PPP fraud and the impact PPP fraud had on real estate prices. (0:56:07) Policy implications and recommendations for future financial relief efforts. (0:59:47) John's personal journey and his profound definition of success. Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Prof. John M. Griffin — https://www.mccombs.utexas.edu/faculty-and-research/faculty-directory/john-griffin/ Episode 260: Prof. James Choi: Practical Finance — https://rationalreminder.ca/podcast/260 Papers From Today's Episode: 'Is Bitcoin Really Un-Tethered?' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3195066 'How Do Crypto Flows Finance Slavery? The Economics of Pig Butchering' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4742235

When witnessing the dramatic payouts of miracle trades, it's easy to be lured into thinking that your big score is just a few trades away. But as is evident in trading options for retail investors, it is neither quick, simple, nor easy to make guaranteed returns on your investments. In today's episode, Ben and Cam walk us through the many reasons why trading options is a losers' game; especially for retail investors. Trading options is definitely today's hot topic and we unpack how the recent resurfacing of Roaring Kitty affirms how life-changing payouts are the exception rather than the rule. We dive deeper into trading options and their uses, the trading demographics of the current market, why trading options are an expensive choice for retail investors, and why people still choose to trade even when doing so at a loss. To end, Ben and Cam highlight the dangers of being a copycat and how social media adds fuel to the fire and we hear some heartwarming Rational Reminder Podcast reviews from a few of our dedicated listeners. Key Points From This Episode: (0:00:48) Why today's topic is widely discussed in the current financial climate. (0:03:34) What we can learn from the resurfacing of Roaring Kitty. (0:05:35) A brief background on stock options and their various uses and the current state of retail trading. (0:08:13) Understanding the trading demographics at play in today's markets. (0:10:24) Discussing why trading options are expensive for retail investors. (0:12:35) Why people keep trading despite losing on average. (0:16:16) Exploring the dangers of copying successful traders and the role of social media. (0:17:17) The after show, headlined by inspirational Rational Reminder Podcast reviews from you, our dear listeners. Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder Email — [email protected] Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Books From Today's Episode: Wealthier: The Investing Field Guide for Millennials — https://wealthierbook.com/ Papers From Today's Episode: 'Retail Trading in Options and the Rise of the Big Three Wholesalers' — https://onlinelibrary.wiley.com/doi/full/10.1111/jofi.13285

There is a huge range of factors that can impact our investment decisions, whether we realize it or not, from our level of financial literacy to our political affiliations. This is borne out in research conducted by today's guest Professor Antoinette Schoar, the Stewart C. Myers-Horn Family Professor of Finance at MIT Sloan. Today, Antoinette joins us to share her insights and challenge conventional wisdom on various topics from target date funds to cryptocurrencies. Tuning in, you'll learn about the transformative impact of target date funds on investment behaviours and asset allocation, before delving into the subject of financial literacy and financial advisors. Antoinette also sheds light on the unique dynamics of crypto trading and breaks down why retail investors' strategies in crypto differ significantly from those in traditional markets. We also discuss the complexities of private equity and venture capital, focusing on why these asset classes might not be suitable for retail investors due to high barriers and risks. Our conversation also covers the critical role of regulation in maintaining market stability and protecting investors. Join us for a thought-provoking discussion that promises to deepen your understanding of financial markets and enhance your investment decisions! Key Points From This Episode: (0:00:18) An introduction to today's guest, Antoinette Schoar, and her extensive research. (0:03:44) The rise of target date funds in the American retirement system: how it's affected asset allocation and trading behaviour of retail investors. (0:09:39) The impact of target date funds: how they have affected mutual fund flows, arbitrage opportunities, market efficiency, the elasticity of aggregate demand, and trend-chasing anomalies. (0:16:48) The influence of individual beliefs, like political affiliation, on financial decision-making and portfolio adjustments, and how to counteract it. (0:21:54) Perceptions of risk in housing investments: how this affects the rent versus buy decision, what changes people's housing risk perceptions, and how to make better housing decisions. (0:29:29) Findings from Antoinette's study on financial advisors and their effectiveness at undoing bias in their prospective clients. (0:33:51) How investors' prior beliefs affect their receptiveness to receiving financial advice and why better financial literacy is essential. (0:41:38) What consumers need to know about advisor compensation structures and what they should look for when seeking out financial advice. (0:47:05) How Antoinette's students motivated her to research cryptocurrency and teach it. (0:49:40) Antoinette's insights on the applications of cryptocurrency and blockchain, and some of the surprising positive outcomes from the rise in cryptocurrency. (0:52:13) The trading behaviours of retail investors in cryptocurrencies compared to traditional asset classes. (0:57:30) An analysis of the Terra Luna collapse explaining the systemic issues and resulting financial impact on smaller investors. (01:02:14) The broader implications of cryptocurrency trading and the need for regulatory oversight to protect investors. (01:06:05) An overview of the challenges and risks of investing in private equity and venture capital for retail investors. (01:11:56) Antoinette's reflections on success, professional goals, and the broader impact of research on financial markets and investor behaviour. Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Antoinette Schoar — https://mitsloan.mit.edu/faculty/directory/antoinette-schoar Monika Piazzesi — https://economics.stanford.edu/people/monika-piazzesi Papers From Today's Episode: 'Belief Disagreement and Portfolio Choice' — https://www.nber.org/papers/w25108 'Credit Supply and House Prices: Evidence from Mortgage Market Segmentation' — https://www.nber.org/papers/w17832 'Retail Investors' Contrarian Behavior Around News, Attention, and the Momentum Effect' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3544949 'Anatomy of a Run: The Terra Luna Crash' — https://www.nber.org/papers/w31160

When robo-advisors first came onto the scene, they were pitched as an easy way to access index funds. These digital platforms provide algorithm-driven financial planning and investment services, with little to no human supervision, and typically use passive investment strategies. But while this technology has revolutionized access, not all robo-advisors are created equal. In today's episode, Mark, Ben, and Cameron sit down to discuss the role of robo-advisors as passive investors, and the performance disparity in robo-advisor returns, as they investigate different robo-advisors, from Wealthsimple to Wealthfront. Next, in this week's version of 'Would you rather?', we have robo-advisors pairing off against active bank mutual funds, with each of our hosts debating the pros and cons of these two approaches. For our aftershow section, we discuss listener feedback, interesting community discussions, Ben's addiction to Excel, and much more. Tune in for a deep dive into robo-advisors and how to navigate this technology! Key Points From This Episode: (0:04:20) The history of robo-advisors and how they are used today. (0:08:30) Why there is such a marked dispersion among robo-advisor portfolios; an overview of Wealthsimple's portfolios and the changes they've made over time. (0:16:00) Wealthsimple's investment returns, fees, and an attribution analysis. (0:24:19) Why Wealthfront pulled value out of their factor-tilted portfolios in 2022. (0:26:13) PWL's investment approach and why no strategy is truly passive. (0:30:43) What the average investor needs to understand when using a robo-advisor. (0:32:02) Wealthsimple's value proposition and why people are drawn to it. (0:33:33) Our 'Would You Rather?' Question: Would you rather put all your money with a robo-advisor or in a big bank actively managed mutual fund? (0:40:30) The growth of passive investing vs active management in the financial industry. (0:44:12) AI's impact on financial planning and an update on new calculators we've released. (0:52:38) Aftershow section: listener feedback, community discussions, leasing versus buying vehicles, Ben's addiction to modelling, and more. Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFPWealthsimple — https://www.wealthsimple.com/en-ca Wealthfront — https://invest.wealthfront.com/ Rational Reminder Episode 308: Dan Bortolotti — Episode 299: The Most Important Lessons in Investing — https://rationalreminder.ca/podcast/299 The Money Scope Podcast — https://moneyscope.ca/Episode 251: Covered Calls — https://rationalreminder.ca/podcast/251 Ashleigh Madison: Sex, Lies & Scandal — https://www.netflix.com/za/title/81602884 — Papers From Today's Episode: 'Are Banks Better Money Doctors?' — https://www.researchgate.net/publication/377037694_Are_banks_better_money_doctors_An_analysis_of_mutual_fund_flows_of_bank_and_non-bank_funds_using_Canadian_data

When it comes to DIY investing, there's always a temptation to make things more complicated than they need to be. But, in reality, embracing simplicity is one of the best ways to ensure good investment outcomes. Today's episode features an exceptional conversation with our long-time friend and colleague, Dan Bortolotti, who has worked alongside us as an Portfolio Manager at PWL Capital for over ten years. Some of our Canadian listeners might recognize Dan as the man behind the Canadian Couch Potato blog (one of the most popular resources for Canadian investors) and the voice behind the Canadian Couch Potato podcast. Dan is a consummate communicator, both on paper and in person; beyond his extensive blogging, he has also written a number of books, both fiction and non-fiction, the most recent of which includes Reboot Your Portfolio: 9 Steps to Successful Investing with ETFs. Dan has played a pivotal role in making PWL Capital what it is today, and in this episode, we learn about his surprising journey to becoming an advisor, before hearing his wide-ranging insights on DIY investing. Dan breaks down key components for investors, from how to approach your asset allocation and picking index funds to navigating fees, taxes, and performance. We also discuss how the investing landscape has changed since Dan started writing and essential lessons he has learned over the years. To hear all about investing from the Canadian Couch Potato himself, be sure to tune in for this expansive conversation! Key Points From This Episode: (0:03:52) The origin story of the Canadian Couch Potato blog, by Dan Bortolotti. (0:08:17) How the availability of index funds in Canada has changed since Dan started writing about them in 2010, and his role in the index fund revolution. (0:10:01) Why Canadians have been slower to adopt index funds than Americans. (0:12:09) How the model portfolios on his site have changed over time. (0:14:20) Why simplicity is so important to a good investment outcome. (0:16:38) The biggest obstacle Dan has observed when it comes to successful investing. (0:19:40) Advice on how to approach decisions around stocks, bonds, and asset allocation. (0:24:34) How to select the ideal ETF or index fund to express your asset allocation. (0:27:22) Some of the ways that Dan's views have changed since starting the Couch Potato portfolio, and the evolution of his blog. (0:31:46) Why you should be clear on your financial goals before investing and the importance of saving rate relative to fees and performance. (0:37:32) Understanding the value of financial advice if we consider investing to be effectively solved by low-cost ETF mutual funds. (0:40:23) Why it's so important to close the gap between providing a financial plan and implementing it. (0:43:25) What surprised Dan about his clients during his transition from blogger to advisor, and what he has learned about earning his clients's trust. (0:48:22) Dan's thoughts on how people should make the decision between DIY investing or hiring an advisor, and what people should look for in a financial advisor. (0:55:46) The story of how Dan connected with PWL Capital and the key ways he has helped shape the company. Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Dan Bortolotti — https://www.pwlcapital.com/profile/dan-bortolotti/ Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/ Canadian Couch Potato Blog — https://canadiancouchpotato.com/ Canadian Couch Potato Podcast — https://canadiancouchpotato.com/podcast/ Larry Swedroe on LinkedIn — https://www.linkedin.com/in/larry-swedroe-18778267/ Larry Swedroe books on Amazon — https://www.amazon.com/Larry-E-Swedroe-Books/s?k=Larry+E.+Swedroe&rh=n%3A283155 Books From Today's Episode: Reboot Your Portfolio: 9 Steps to Successful Investing with ETFs — https://www.amazon.ca/Reboot-Your-Portfolio-Successful-Investing/dp/1988344328 Wild Blue — https://www.amazon.com/Wild-Blue-Natural-History-Largest-ebook/dp/B005BP0E3W

Are you confident about the amount of life insurance coverage you have? Are you maximizing your tax savings with the principal residence exemption? In this episode, we delve into life insurance and optimizing capital gains to answer these essential questions. In our conversation, we unpack the nuanced topic of life insurance, what people get wrong about it, and how to effectively calculate your life insurance policy needs. Using his own experience as the lens for the conversation, Mark shares how he calculated his life insurance and incorporated costs such as funeral cover, emergency funds, short-term expenses, and income replacement. Learn about using the safe withdrawal rate shortcut, free resources for calculating life insurance costs, and the best financial tools for getting the most out of your policy. He also delves into capital gains and how to use a lesser-known exemption to reduce the amount owed significantly. Mark walks listeners through how the principal residence exemption works and how it impacted the sale of his rental properties. Then, jumping to a brand new segment on the Rational Reminder Podcast, Ben introduces his financial decision-making iteration of the game of 'Would you rather'. Finally, we share listener reviews and feedback on previous episodes and debate whether to lease or buy a car in our after-show segment. Tune in now! Key Points From This Episode: (0:03:13) Mark explains how he and his wife calculated their life insurance needs. (0:06:55) Learn how to plan for income replacement and why it is so complicated. (0:12:10) Ben's perspective on Mark's approach to calculating his life insurance coverage. (0:13:54) Find out why there are differences between Ben and Mark's calculations. (0:18:17) How Mark factored in retirement costs into his life insurance calculations. (0:22:30) Free resources and tips to accurately calculate your life insurance needs. (0:27:04) Why Mark considers whole life insurance as a separate asset class. (0:31:25) The principal residence exemption and how Mark applied it to his situation. (0:39:19) How we would choose to invest $1 billion in today's market. (0:42:26) Would You Rather segment: only life insurance versus only disability insurance. (0:45:02) The exciting development of a tool for realizing capital gains in a corporation. (0:51:06) Trends in the awareness of corporate notional accounts and tax planning intricacies. (0:54:12) Listener reviews, episode feedback, and leasing a car instead of buying. Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP 'How Much Life Insurance Do You Need?' — https://www.linkedin.com/pulse/how-much-life-insurance-do-you-need-mark-mcgrath-cfp-cim-clu--tjwwe/ InsureRight — https://www.insureright.ca/ Episode 65: Dr. Wendall Mascarenhas — https://rationalreminder.ca/podcast/65 Dimensional Fund Advisors — https://www.dimensional.com/ Money Scope Podcast — https://moneyscope.ca/ Braden Financial Services — https://www.bradenfinancialservices.com/ Hendry Warren on LinkedIn — https://www.linkedin.com/company/hendry-warren-llp/ Brady Plunkett on LinkedIn — https://www.linkedin.com/in/brady-plunkett-712489105/ Capital Gains Calculator for Non-Corporations — https://research-tools.pwlcapital.com/research/realize-gain Episode 305 - Is Private Credit Special? — https://rationalreminder.libsyn.com/episode-305-is-private-credit-special

Designing a robust portfolio requires considerable expertise, data, and experience. And while there are plenty of published articles that can guide how you build your portfolio, they are not investment solutions by themselves. Wei Dai is the Head of Investment Research and Vice President at Dimensional Fund Advisors, and she joins us today for a comprehensive and informative conversation on portfolio design for higher returns. Her background includes a Doctor of Philosophy degree in Statistics, Operations research, and Financial Engineering from Princeton. She has also earned a bachelor's degree in mathematics and applied mathematics from Zhejiang University. Her work has been published in multiple journals, including The Financial Analysts Journal. She has also collaborated on articles with esteemed figures such as Professor Robert C. Merton and Robert Novy-Marx. In our conversation with Wei, we explore the contents of these articles, key findings from research conducted by Dimensional Fund Advisors, and how they are implementing this knowledge in their portfolios. We discuss the fundamental aspects of portfolio design, like expected return, risk, and costs, with Wei providing a detailed breakdown of each subject. There's a lot to be learned from today's conversation, and while things get pretty technical, you are in very capable hands! Tune in for a fascinating dive into the latest research on portfolio design and much more. Key Points From This Episode: (0:03:37) The main risk premiums that Dimensional Fund Advisors target in their portfolios. (0:05:42) How long-term drivers of returns vary across different regions: an overview of the tests and outcomes they've seen at Dimensional Fund Advisors. (0:07:15) Unpacking whether the value premium differs from the profitability premium across regions; why it makes sense to be globally diversified. (0:08:57) Typical approaches to a multi-premium strategy in a portfolio: a rundown of the three approaches they take at Dimensional and the trade-offs between each. (0:13:44) How they evaluate portfolios at Dimenstional: the benefits of taking a holistic, integrated approach, and instances where that doesn't make sense. (0:17:24) Weighting schemes: Dimensional's approach to assigning individual security weights to achieve the desired level of exposure and how investments factor into weights. (0:26:46) Advice on how investors should decide whether to currency hedge their foreign asset exposures, and insights on how to approach currency hedging. (0:30:42) Premium timing: Why timing exposure to premiums is so tempting; parameters that must be defined to implement timing strategies; and which strategies worked in their research. (0:39:21) Valuation ratios: why it theoretically makes sense that they would be related to differences in expected returns and why they aren't useful in timing premiums. (0:42:11) An overview of the main implications for pursuing premiums that arise from Dimensional's research. (0:44:10) Diversification and how to improve your odds of capturing return premiums. (0:46:38) The tradeoff between concentration and expected returns, and defining the optimal balance. (0:49:06) What investors should look for when choosing a systematic investment manager, why not all systematic strategies are created equal, and Dimemsional's approach. (0:52:52) The downsides of performance fees, specifically for systematic managers and what it was like writing a paper with Robert Merton. (0:57:41) How short-term reversals differ from momentum, ways that reversals are related to liquidity, and how reversals vary across different stocks. (01:03:12) The ways that Dimensional is implementing this knowledge in their portfolios; how their ideas go from research to publication to implementation. (01:08:18) What sets Dimensional apart, and the value that they add, despite their research being available online. Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Wei Dai on Linkedin — https://www.linkedin.com/in/wei-dai-64a3071a/ Wei Dai's Academic Papers — https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=2888456 Dimensional Fund Advisors — https://www.dimensional.com/ Episode 234: Prof. Robert C. Merton — https://ration

Private credit is one of the fastest-growing asset classes, and today we take a closer look at why that is, and if it's really worth the hype. When you invest in private credit, you are essentially lending money to borrowers who might have difficulty accessing loans elsewhere. While these assets may be profitable, they can also incur a lot of risk and typically come with illiquidity. It is traditionally traded among institutional and accredited investors, rather than retail investors, namely, non-professional investors. Since private credit has gained so much popularity in recent years, we use today's conversation to unpack how private credit works, the role of private credit funds, the associated performance fees and risks, and what retail investors should know about this asset class before deciding to invest. Our conversation investigates one of the top reasons for private credit's rise in popularity, namely risk-adjusted returns, before evaluating whether this is a worthwhile reason to invest, depending on who you are. Stay tuned for our after-show section where we discuss the proposed changes to the capital gains tax, why the death of value could be exaggerated, and more! Key Points From This Episode: (0:00:18) Today's main topic, private credit, and our upcoming webinar on May 22nd. (0:02:18) An introduction to private credit as an asset class. (0:05:33) Private credit funds: how they work, interest rates, performance fees, and valuations. (0:08:14) Who does valuations on private credit funds and related risks. (0:10:01) Unpacking the underlying risks of private credit and how investors are compensated. (0:11:02) Insights from the paper 'Direct Lending Returns' related to publicly listed business development companies (BDCs). (0:16:15) Takeaways from the paper 'Risk Adjusting the Returns of Private Debt Funds'. (0:18:16) Private credit funds, equity exposure, how private credit gets misrepresented, and what investors need to know about high-fee investment products. (0:25:09) Illiquidity and what retail investors can expect from private credit. (0:30:15) Our aftershow segment, starting with the proposed changes to capital gains tax. (0:33:55) Ben's conversation with David Chilton. (0:36:55) The value premium and why the death of value could be exaggerated. (0:40:45) Unpacking the heated response to our conversation with Scott Galloway. Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://twitter.com/MarkMcGrathCFP Webinar May 22nd: Optimal Compensation Strategies for Business Owners — https://us06web.zoom.us/webinar/register/3317145039436/WN_GYudVJCYSnyF8HfUx9UbJQ Money Scope Episode 12 — https://moneyscope.ca/2024/04/19/episode-12-paying-yourself-as-a-canadian-business-owner/ Money Scope Episode 13 — https://moneyscope.ca/2024/04/26/episode-13-optimal-compensation-from-a-ccpc/ Rational Reminder Episode 220: Jonathan Berk and Jules van Binsbergen — https://rationalreminder.ca/podcast/220 Rational Reminder Episode 210: Ludovic Phalippou — https://rationalreminder.ca/podcast/210 David Chilton — https://thewealthybarber.com/ David Chilton on X — https://twitter.com/wealthy_barber?lang=en Rational Reminder Episode 303: Scott Galloway — https://rationalreminder.ca/podcast/303 Books From Today's Episode: The Wealthy Barber: Everyone's Commonsense Guide to Becoming Financially Independent — https://www.amazon.com/Wealthy-Barber-Updated-3rd-Commonsense/dp/0761513116 — Papers From Today's Episode: 'Direct Lending Returns' — https://rpc.cfainstitute.org/en/research/financial-analysts-journal/2023/direct-lending-returns 'Risk Adjusting the Returns of Private Debt Funds' — https://www.nber.org/papers/w32278 'An Inconvenient Fact: Private Equity Returns & The Billionaire Factory' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3623820 'Reports of Value's Death May Be Greatly Exaggerated' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3488748

The Canadian government has recently proposed significant changes to how capital gains are taxed, but how will this impact Canadians? In this episode, we delve into the proposed capital gains tax changes and their impact on financial planning. We unpack the definition of capital gains tax and the complexity of the proposed changes. Explore the historical trends of capital gains tax rates in Canada, how capital gains tax works, and who will be impacted by the proposed changes. We discuss the intricacies of the alternative minimum tax (AMT), its relevance to capital gains tax, and whether the old or new AMT rules apply to the upcoming changes. Gain insights into tax considerations for long-term investment strategies, the importance of tax diversification in mitigating risk, lifetime capital gains exemption, tax planning ramifications, and more! Although this episode is Canadian-focused, it offers many useful takeaways for non-Candaians 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! Key Points From This Episode: (0:00:00) Introduction and outline of today's topic: proposed capital gains tax changes. (0:03:07) Overview of the topic, what capital gains tax is, and the proposed changes. (0:08:10) Historical trends in capital gains tax rates in Canada. (0:10:59) Find out who will be impacted by the proposed changes. (0:14:45) Advice on how to plan for the proposed changes with an example. (0:17:13) Model results and we unpack the nuance of AMT (alternative minimum tax). (0:25:35) How the changes to AMT impact the proposed capital gains tax changes. (0:32:05) Whether the new or old AMT rules apply to the proposed capital gains changes. (0:34:27) Important tax considerations for long-term investment strategies. (0:36:30) Insights into why tax diversification is essential to reduce the tax rate risk. (0:39:25) Interesting budget proposals and their tax planning implications. (0:41:17) Our perspectives on the media response to the proposed tax changes. (0:45:40) After-show: listeners' reviews, upcoming guests, an update on Mark's book, and more. Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://twitter.com/MarkMcGrathCFP Capital Gains Calculator — https://research-tools.pwlcapital.com/research/realize-gain Episode 224 — https://rationalreminder.ca/podcast/224 Episode 284 — https://rationalreminder.ca/podcast/284 Episode 299 — https://rationalreminder.ca/podcast/299 Episode 302 — https://rationalreminder.ca/podcast/302 Canadian Medical Association — https://www.cma.ca/ The Money Scope Podcast — https://moneyscope.ca/ The Most Important Lessons in Investing — https://www.youtube.com/watch?v=MOjS2zuQMdo Dan Solin — https://danielsolin.com/ Compensation Strategies for Canadian Business Owners — https://www.pwlcapital.com/compensation-strategies-for-canadian-business-owners2/ Books From Today's Episode: The Wealthy Barber — https://www.amazon.com/Wealthy-Barber-Updated-3rd-Commonsense/dp/0761513116

What is the role of luck in financial success? And how can we make decisions that will put us in the best possible position to experience long-term prosperity? Joining us today to unpack these questions is Scott Galloway, a talented public speaker, author, entrepreneur, and professor of marketing at NYU Stern School of Business. His latest book, The Algebra of Wealth: A Simple Formula for Financial Security, explores key lessons to help you optimize your life for wealth and success. He is the host of a thrice-weekly podcast, The Prof G Pod, and co-hosts a podcast called Pivot with esteemed tech journalist, Kara Swisher. Scott also has a very popular blog called No Mercy / No Malice, where he shares his thoughts on wealth, business, psychology, and more. In today's conversation with Scott, we delve into the lessons he's learned about economic success and the contents of his new book, The Algebra of Wealth. Tuning in you'll learn how the economic stress he experienced as a child shaped his life, the important role that luck plays in financial success, and why he believes people should follow their talents rather than their passions. Scott goes on to expand on why diversification is essential for financial success before sharing key lessons from the various businesses he has started, built, and sold. We also discuss how he manages his financial worries, his hopes for his children, and how he defines success. Tune in to hear all of Scott's valuable insights as we take a deep dive into the forces that shape our economic outcomes, and the algebra of wealth! Key Points From This Episode: (0:00:18) Introducing today's guest, Professor Scott Galloway. (0:05:43) Unpacking the title of his book The Algebra of Wealth, and what it refers to. (0:10:39) The pursuit of wealth as a whole-person project and why balance is rarely possible. (0:13:38) How stoicism can help you spend wisely and resist temptations. (0:19:23) The difference between working hard and having character when it comes to wealth. (0:22:20) Why it's so important to acknowledge the role of luck in economic success; how Scott's awareness of luck impacted his financial decisions and made him diversify. (0:30:41) The concept of having enough, why people always want more, the benefits of giving back, and the role that luck has played in Scott's wealth. (0:35:31) Why Scott believes people should follow their talents, rather than their passion. (0:39:31) Scott's thoughts on the work-from-home trend and why he is a big proponent of an office environment and in-person work for young people. (0:41:23) The key ways that physical exercise contributes to financial success. (0:44:37) Scott's thoughts on financial planners, how to take advantage of technology and low-cost EFTs to diversify on your own, and qualities you should look out for in a financial planner. (0:50:08) Scott's approach to investing in private businesses, his history of starting and selling companies, and why diversification is key. (0:52:26) What the average person should do when there is excitement about a particular stock. (0:56:06) Scott's insights on the most beneficial way to trade money for time, how he manages his financial worries, and his biggest financial concerns when it comes to his children. (01:03:32) How Scott defines success in his life, and what he has learned so far from starting ketamine therapy. Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Scott Galloway — https://profgmedia.com/ Scott Galloway Books — https://profgmedia.com/books/ Scott Galloway on LinkedIn — https://www.linkedin.com/in/profgalloway/ Scott Galloway on Twitter — https://twitter.com/profgalloway No Mercy No Malice — https://www.profgalloway.com/ Pivot with Scott Galloway and Kara Swisher — https://profgmedia.com/pivot/ The Prof G Pod with Scott Galloway — https://profgmedia.com/the-pod/ Books From Today's Episode: The Algebra of Wealth: A Simple Formula for Financial Security — https://www.amazon.com/Algebra-Wealth-Formula-Financial-Security/dp/0593714024

With a wealth of experience as a market theoretician and a prolific contributor to financial discourse, today's guest is uniquely positioned to guide us through the complexities of index fund dynamics. Joining us to discuss the problems that passive investing may be causing in financial markets (and what people should do about it) is Michael Green, Chief Strategist and Portfolio Manager for Simplify Asset Management. Tuning in, you'll learn about the ramifications of the surging popularity of indexing and the sobering reality of mounting market inelasticity, backed by compelling evidence that underscores the challenges facing today's financial landscape. The insights in this episode extend beyond mere observation, with Mike offering policy recommendations and strategies to address the structural issues affecting our markets. While this conversation is certainly challenging, philosophical, and even alarming, it isn't purely theoretical. It's a call to action to safeguard the integrity of our financial systems. So, be sure to join us as we navigate the nuances of indexing and passive investing at large, guided by the expertise and foresight of one of finance's most respected voices! Key Points From This Episode: (0:05:48) The negative effect that the growth of indexing is having on financial markets. (0:07:37) Insight into the XIV trade that strengthened Mike's belief in this view. (0:13:49) Defining the problem that indexing is causing (which might seem like a good thing). (0:15:57) How market cap-weighted index funds differ from closet index funds. (0:16:57) Indications that markets are becoming increasingly inelastic over time. (0:19:21) Why flows into cap-weighted index funds differ from the overall aggregate of active. (0:24:21) Active versus passive investing in public versus non-public markets. (0:25:57) The catastrophic event that could be caused by index funds (and how to avoid it). (0:30:51) Why we need to rethink the definition of passive investing and the value of diversity. (0:36:10) Market inelasticity versus inefficiency and the impact of active manager performance. (0:41:38) How investors should shift their strategy to respond to the current market structure. (0:53:01) Regulatory recommendations: who actually needs to step up and do something. (0:54:30) Mike's outlook on US expected returns, market volatility, and 401(k)s. (1:01:50) Why Bitcoin isn't the solution to all of our monetary and fiscal policy problems. (1:05:22) The definition of success in Mike's life (and why it's completely non-financial). Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ 'Yes, I give a fig… Thoughts on markets from Michael Green' — https://www.yesigiveafig.com/ Michael Green on Substack — https://substack.com/@michaelwgreen Michael Green on LinkedIn — https://www.linkedin.com/in/michael-green-9a15142/ Michael Green on X — https://twitter.com/profplum99 Nassim Nicholas Taleb — https://www.fooledbyrandomness.com/ Valentin Haddad — https://sites.google.com/site/valentinhaddadresearch/ Jean-Philippe Bouchaud — https://bouchaud.substack.com/ Marco Sammon — https://marcosammon.com/research/ Ralph Koijen — https://www.koijen.net/index.html David Einhorn — https://twitter.com/davidein Books From Today's Episode: The Black Swan — https://www.amazon.com/dp/081297381X Adaptive Markets — https://www.amazon.com/dp/0691135142 Papers From Today's Episode: 'How Competitive is the Stock Market? Theory, Evidence from Portfolios, and Implications for the Rise of Passive Investing' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3821263 'How Competitive is the Stock Market?' Slides — https://drive.google.com/file/d/1QTxuFI7eK_RJwaV3ncAjX41pEb1anLeM/view 'Do Active Funds Do Better in What They Trade?' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4624934 'The Passive-Ownership Share Is Double What You Think It Is' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4188052 'The Arithmetic of Active Management' — https://www.jstor.org/stable/4479386 'Sharpening the Arithmetic of Active Management' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2849071 'Long Volatility, Asymmetric Alpha, Negatively Correlated Alpha, Convex Crisis Alpha' Slides — https://ww

In this episode, we delve into the best time to claim your Canada Pension Plan (CPP) benefits. Although the focus of this episode is on Canada, there will be many relevant and valuable insights for our non-Canadian listeners. In our conversation, we discuss the importance of understanding the intricacies of CPP benefits, the fundamentals, and how individuals can optimize their retirement income by making informed decisions. Explore the importance of understanding when to claim CPP benefits, how much future financial security a CPP offers, and why the CPP is one of the most valuable retirement assets for most Canadians. Gain insights into how wage growth ties into CPP benefits, the exceptions to deferring a CPP claim, and what made 2022 different regarding CPP claims. Join us as we uncover the nuances of CPP benefits! Key Points From This Episode: (0:03:25) Unpack the fundamentals of the Canada Pension Plan (CPP) benefits. (0:10:04) How the timing of making a CPP claim is linked to the benefits. (0:14:15) Ben explains the financial implications of deferring a CPP claim. (0:21:34) Uncover common approaches to identify the best time to claim a CPP. (0:26:06) Learn about the situations when it is best not to defer a CPP claim. (0:31:12) Why the CPP is one of the most valuable retirement assets for most Canadians. (0:39:11) The after-show: ideas for the podcast, feedback, segregated funds, and more! Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://twitter.com/MarkMcGrathCFP Prof. Meir Statman — https://www.scu.edu/business/finance/faculty/statman/ Prof. Meir Statman on Twitter — https://twitter.com/meirstatman Episode 258: Prof. Meir Statman — https://rationalreminder.ca/podcast/258 The Canadian Institute of Actuaries (CIA) — https://www.cia-ica.ca/ Society of Actuaries (SOA) — https://www.soa.org/ FP Canada — https://www.fpcanada.ca/ When Should You Start CPP? — https://www.youtube.com/watch?v=r9vYji99fhk CE Drive with Jason Watt — https://cedrive.podbean.com/ Episode 137: David Blanchett: Researching Retirement — https://rationalreminder.ca/podcast/137 Episode 254: David Blanchett: Regret Optimized Portfolios and Optimal Retirement Income — https://rationalreminder.ca/podcast/254 Episode 289 - Retiring Retirement Income Myths with the Retirement Income Dream Team — https://rationalreminder.ca/podcast/289 Jason Yi on LinkedIn — https://www.linkedin.com/in/jason-yi-cpa-ca-56544446/ Episode 225: The Index Fund "Tipping Point" — https://rationalreminder.ca/podcast/225 Books From Today's Episode: Wealthier — https://wealthierbook.com/ The Algebra of Wealth — https://www.amazon.com/Algebra-Wealth-Formula-Financial-Security/dp/0593714024 Sleep Well, Take Risks, Squish the Peas — https://www.amazon.com/Sleep-Well-Take-Risks-Squish/dp/0757324711/ Papers From Today's Episode: 'The CPP Take-Up Decision: Risks and Opportunities' — https://www.soa.org/4a223f/globalassets/assets/files/resources/research-report/2020/2020-cpp-take-up-decision.pdf 'Get the Most from the Canada & Quebec Pension Plans by Delaying Benefits' — https://www.fpcanadaresearchfoundation.ca/media/5fpda5zw/cpp_qpp-reseach-paper.pdf 'Financial Advisor Compensation Structure and Client Equity Allocations' — https://www.tandfonline.com/doi/full/10.1080/15427560.2023.2294812

Today, we welcome back Prof. Meir Statman to talk about the role of finances in well-being. We investigate the role of finances in well-being with Prof. Meir Statman through the lens of his new book, A Wealth of Well-Being. Discover why wealth advisors must evolve into well-being advisors and uncover the impact of finances on various life domains. From dating to education, we discuss the profound financial correlations shaping happiness and well-being. Tune in now! Key Points From This Episode: (0:00:15) Introduction to returning guest, Prof. Meir Statman. (0:02:15) How well-being fits into the study of behavioural finance. (0:06:52) Discover the role of finances in different domains of life well-being. (0:10:42) Hear why wealth advisors need to change to being well-being advisors. (0:14:59) Explore the relationship between finances, social status, and overall well-being. (0:19:46) Whether too much self-control in spending can be a problem. (0:22:46) The effect of finances on dating and marriage and how work plays into well-being. (0:26:42) Find out how education fits into well-being and why it is a major regret for people. (0:32:36) Gain insights into how religion and faith can enhance well-being. Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://twitter.com/MarkMcGrathCFP Prof. Meir Statman — https://www.scu.edu/business/finance/faculty/statman/ Prof. Meir Statman on X — https://twitter.com/meirstatman Episode 258: Prof. Meir Statman — https://rationalreminder.ca/podcast/258 Meir's Book: A Wealth of Well-Being — https://www.amazon.com/Wealth-Well-Being-Holistic-Approach-Behavioral/dp/1394249675

In this episode, we are joined by renowned expert Abby Sussman to unpack how individuals form judgments and make decisions about their finances. Abby is a distinguished professor of marketing at the University of Chicago Booth School of Business whose expertise lies at the intersection of psychology, economics, and finance. In our conversation, we discuss the nuances of financial decision-making and how personal beliefs influence our financial choices. Discover the source of reference points for financial well-being and how expense prediction biases play a role in making poor financial decisions. We explore the effectiveness of budgeting, the nuances of product sensitivity, and the drivers of excessive consumer consumption. Gain insights into navigating the complexities of financial decision-making, the psychology behind it, how AI can help you make better financial decisions, and much more. Tune in to gain a deeper understanding of the psychology behind financial decisions and uncover strategies to optimize your financial future with Abby Sussman! Key Points From This Episode: (0:04:45) Explore the difference in how we perceive others' wealth versus our own. (0:08:25) Drivers of the differences in perception and their impact on financial decision-making. (0:11:43) Steps to reduce excessive consumption and how personal future wealth perceptions influence financial decision-making. (0:16:58) Discover the source of the reference point people use when considering their wealth. (0:18:53) How to make better financial decisions and the role of peoples' expectations. (0:20:20) Unpack expense prediction bias and the problems it creates. (0:22:55) Methods used to predict expenses and what people typically budget for. (0:29:00) Pragmatic advice for reducing the influence of expense prediction bias. (0:31:53) Whether prediction bias manifests in long-term planning, such as retirement. (0:33:14) Find out if setting a budget is common practice and how it impacts financial health. (0:37:36) Trends in actual spending in relation to expenses budgeted for. (0:39:31) She explains how people categorize expenses and react to insufficient funds. (0:42:40) Product sensitivity and how attitudes toward investment products vary. (0:48:21) Interventions to help people choose better financial products. (0:49:40) Areas of research she is most interested in and her opinion on the role of AI. (0:55:54) Abby shares her definition of success. Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Abby Sussman on LinkedIn — https://www.linkedin.com/in/abigail-sussman-ab4427/ Abby Sussman on X — https://twitter.com/abbysussman The University of Chicago Booth School of Business — https://www.chicagobooth.edu/ Society for Judgment and Decision Making — https://sjdm.org/ Episode 153: Prof. Johanna Peetz — https://rationalreminder.ca/podcast/153 Epidose 296: Adam Alter — https://rationalreminder.ca/podcast/296 Panel Study of Income Dynamics — https://psidonline.isr.umich.edu/ Consumer Financial Protection Bureau — https://www.consumerfinance.gov/ Papers From Today's Episode: 'Understanding and Neutralizing the Expense Prediction Bias: The Role of Accessibility, Typicality, and Skewness' — https://doi.org/10.1177/00222437211068025 'The Exception Is the Rule: Underestimating and Overspending on Exceptional Expenses' — https://doi.org/10.1086/665833 'The Role of Risk Preferences in Responses to Messaging About COVID-19 Vaccine Take-Up' — https://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" — https://doi.org/10.1016/j.jebo.2022.09.025 'Financial Product Sensitivity Predicts Financial Health' — https://doi.org/10.1002/bdm.2142

In this episode, we unpack key tenants of investing and the quality of financial advice in Canada's banking industry. In our conversation, we present a list of lessons we have learned about investing, which has been consolidated from contributions by the Twitter community and the Rational Reminder Community. In our conversation, we discuss ways to beat the market, how narratives can impact the economy, and why timing the market is a bad investment approach. Discover why performance chasing is not a successful strategy, why incentives matter, and why economic growth is a poor predictor of investment success. Learn about the nuanced relationship between expected economic growth and stock returns, why wealth does not give you access to market-beating investments, and the effectiveness of investing in low-cost total market index funds. Finally, in our after-show segment, we delve into the quality of financial 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! Key Points From This Episode: (0:00:00) Introduction and outline of today's topic: The Most Important Lessons in Investing. (0:04:55) Why you cannot outsmart the markets and what it takes to beat the market. (0:07:47) The notion that "this time is always different" during times of financial upheaval. (0:10:45) Explore the forward-looking nature of markets and their impact on decision-making. (0:12:08) Unpack the unreliability of market forecasts for making investment decisions. (0:14:48) Hear why time in the market beats timing the market. (0:16:11) Important aspects of funds and why investors should not chase portfolio performance. (0:19:20) Learn about the role of incentives in the distribution of financial information. (0:25:09) Common misconceptions about the link between economic growth and stock returns. (0:27:28) We discuss the importance of good financial planning over portfolio management. (0:30:51) Uncover the relationship between risk and expected returns in financial markets. (0:32:33) How the risk-return relationship changes over different time horizons. (0:34:59) Why fees and taxes matter and the nuances of permanent insurance. (0:41:55) Find out why there is no such thing as a perfect investment strategy. (0:44:51) Tailoring your investment portfolio to meet your goals and sticking to it. (0:46:48) Investigate why there is no such thing as a passive investment. (0:50:59) Understanding why wealth does not provide access to market-beating strategies. (0:53:22) Why diversification is the only free lunch in investing. (0:58:58) Recommendations and pitfalls to avoid when assessing investments. (1:01:02) What the structure of a financial portfolio looks like for most people. (1:03:11) The aftershow: the state of Canadian banks, investment advice, and more. Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://twitter.com/MarkMcGrathCFP The Economist — https://www.economist.com/ ARK Invest — https://ark-funds.com/ The Canadian Investor Podcast — https://thecanadianinvestorpodcast.com/ Episode 257: Giorgio Ugazio (Mr. RIP) — https://rationalreminder.ca/podcast/257 Mr. RIP on YouTube — https://www.youtube.com/@mr_rip The Money Scope Podcast: Episode 9 — https://moneyscope.ca/2024/03/15/episode-9-taxable-investing-in-canada/ Book a meeting with a PWL Financial Planner — Books From Today's Episode: A Wealth of Well-Being — https://www.amazon.com/Wealth-Well-Being-Holistic-Approach-Behavioral/dp/1394249675 Wealthier — https://wealthierbook.com/ Papers From Today's Episode: 'Where's the Beef?' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4035890 'SPIVA® Canada Scorecard' — https://www.spglobal.com/spdji/en/documents/spiva/spiva-canada-year-end-2023.pdf '2018 Paper' — https://doi.org/10.1093/rfs/hhy046 'CBC Article' — https://www.cbc.ca/news/business/marketplace-hidden-camera-banks-1.7142427

Dr. Randall Stutman is an author, highly sought-after speaker, and executive leadership coach to some of the world's most exceptional CEOs, billionaires, and hedge fund managers. As the founder of the Admired Leadership Institute, he is widely recognized as a world-class authority on leadership strategy and style. Today, Dr. Stutman joins us to discuss the behaviours and skills that make admired leaders and how you can translate those characteristics and strategies into your financial decision-making process. Tuning in, you'll learn about the importance of followership, find out why admired leadership is so rare, and hear some practical advice to help you make better decisions. We also discuss why you should actually disagree with your clients more often, why relationships are the cornerstone of any business, questions to ask yourself to find the right client or financial advisor, and much more. Don't miss this fascinating and broad-reaching conversation on leadership and decision-making with specific applications for financial advice relationships! Key Points From This Episode: (0:03:36) A typical approach to leadership development (and why it doesn't work). (0:07:21) The two key qualities or characteristics of an admired leader. (0:09:23) Benefits of followership to create change and implement decisions. (0:10:28) A simple definition of leadership and why not everyone can be an admired leader. (0:13:08) Why great leaders and great organizations are values-driven. (0:16:15) Ways that consensus decision-making can hurt or strengthen an organization. (0:23:02) Other shortcomings in the decision-making process and how to avoid them. (0:27:29) Practical advice for financial advisors to become admired leaders. (0:32:33) Why checklists should never be the focus of a conversation or relationship. (0:33:52) Traits of admired leaders that financial consumers can emulate. (0:35:55) The best way for a couple to reach agreed-upon financial goals. (0:37:29) Tips for financial advisors to give better feedback and maintain relationships. (0:44:30) What a successful relationship with a financial advisor looks like. (0:46:07) How to avoid outcome bias for people who have been successful in the past. (0:48:00) Rapid-fire time management strategies, hallmarks of effective meetings, what's missing in virtual communication, what motivates people, and more. (0:55:46) A very important metric by which Dr. Stutman defines success. Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Admired Leadership Institute — https://admiredleadership.com/ Episode 238: Prof. Ralph Keeney — https://rationalreminder.ca/podcast/238 Books From Today's Episode: Working Through Conflict: Strategies for Relationships, Groups, and Organizations — https://www.amazon.com/dp/0367461471/ Communication in Legal Advocacy (Studies in Communication Process) — https://www.amazon.com/dp/B09T21F8KX/

As human beings, our brains are wired to solve problems. This can make long-term investment strategies, like passive investing, surprisingly challenging, especially if you're not accustomed to the ups and downs of the market – it can feel pretty unintuitive to stay the course when your instinct is to take more active steps to solve the problem! So, how can investors remain firm in their strategy and not get spooked by market changes? Joining us today to unpack this question is financial journalist, Nicolas Bérubé, whose new book From Zero to Millionaire: A Simple and Stress-Free Way to Invest in the Stock Market serves as a guide to investors on how to grow their wealth and achieve good portfolio diversification at a low cost. We talk with him about the contents of his book, his observations on financial media and its effect on investors, how to stay committed when making long-term investments, and more. We also spend the top half of the show discussing a popular idea we've seen posted by influencers online, namely that investing in stocks will give you a return of 10% or more per year on average, and the flaws in their arguments. Tune in for a deep dive into investor psychology, financial media, and much more! Key Points From This Episode: (0:01:42) A breakdown of the flaws in the trending online theory being posted by influencers claiming that investing in stocks will give you a return of 10% or more per year on average. (0:09:17) Taking a longer-term view of the US stock market (and other global markets), how it's changed in the past 100 years, and what this means for investors today. (0:16:12) Relevant findings from various papers on US and global stock market returns, US stock market valuations, performance, the impact of survivorship bias, and more. (0:27:01) Why it can be so difficult to capture market return as an investor, and a breakdown of how best to approach historical data. (0:33:33) Talking with Nicolas Bérubé about what he learned from his failed options trade before he started studying markets and the research that helped him become a market optimist. (0:38:24) An overview of Indo-American investor, Mohnish Pabrai, and what Nicolas learned from meeting him. (0:41:05) Unpacking the difference between investing in the stock market and playing in the stock market and the importance of having an infinite vision when investing. (0:44:52) How Nicolas would explain the benefits of index funds and index investing to a novice and why behaviour is the number one obstacle to investor outcomes. (0:48:29) The effect of financial media on investors from Nicolas's perspective as a journalist. (0:51:52) Advice on whether to delegate your investment actions to a financial professional or do it yourself ie. automatic transfers using a robo advisor. (0:56:14) What people should be looking for if they do seek out financial advice and Nicolas's opinion on what investors struggle with most. (0:59:58) Aftershow section: future topics for the show, why we're excited to see more of Mark McGrath, updates on our 24 in 24 reading challenge, upcoming meetups, and more. Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://twitter.com/MarkMcGrathCFP 24 in 24 Reading Challenge — https://rationalreminder.ca/24in24 Nicolas Bérubé on LinkedIn — https://www.linkedin.com/in/nicolas-b%C3%A9rub%C3%A9-27b9b111b/ From Zero to Millionaire — https://fromzerotomillionaire.com/ The Motley Fool — https://www.fool.com/ Rob Carrick — https://www.theglobeandmail.com/authors/rob-carrick/ Andrew Hallam — https://andrewhallam.com/ Somebody Feed Phil — https://www.imdb.com/title/tt7752034/ Everybody Loves Raymond — https://www.imdb.com/title/tt0115167/ Shake Shack — https://shakeshack.com/#/ Figure 01 AI Robot Video on LinkedIn — https://www.linkedin.com/feed/update/urn:li:activity:7173681028664901634/ Books From Today's Episode: From Zero to Millionaire: A Simple and Stress-Free Way to Invest in the Stock Market — https://fromzerotomillionaire.com/ The Algebra of Wealth: A Simple Formula for Financial Security — https://www.amazon.com/Algebra-Wealth-Formula-Financial-Security/dp/0593714024

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! Key Points From This Episode: (0:00:18) Introducing today's guest, Adam Alter, and the concept behind his new book Anatomy of a Breakthrough. (0:05:41) An overview of the many ways that you can be financially stuck, the role of financial advisors, and when you should seek out help and guidance. (0:09:04) Insight into the different types of stuckness and how to recognize when you're stuck. (0:12:42) Why people tend to question their lives with the arrival of a new decade. (0:17:10) Unpacking the risks and benefits of major life decisions and the concept of lifequakes. (0:20:25) The boundless nature of goal-setting and how it impacts the search for contentment. (0:23:27) How lifequakes influence the search for contentment and how to prepare for them. (0:26:00) What a breakthrough looks like, how it interacts with creativity, and the role of luck. (0:35:17) A breakdown of the random impact rule; particularly in the context of careers. (0:38:01) One key practical difference between striving for excellence versus perfection. (0:40:05) The originality trap: why trying to do something completely new can cause paralysis. (0:43:13) Understanding the plateau effect: why being stuck can actually be a sign of progress. (0:44:23) The fundamentals of goal setting: the dangers of setting unachievable goals and the benefits of making it about the journey rather than the destination. (0:49:03) Advice for processing the success of other; especially in the age of social media, and how Adam defines success. Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Adam Alter — https://adamalterauthor.com/ Adam Alter on LinkedIn — https://www.linkedin.com/in/adamleealter Adam Alter on Twitter — https://twitter.com/adamleealter Hal Hershfield — https://www.halhershfield.com/ Bruce Feiler — https://www.brucefeiler.com/ Books From Today's Episode: Anatomy of a Breakthrough — https://adamalterauthor.com/anatomy Irresistible — https://adamalterauthor.com/irresistible Drunk Tank Pink — https://adamalterauthor.com/drunk-tank-pink

In this episode, we explore the intricate world of home-country bias in investment decision-making and learn the secret sauce to effective communication and writing. We start by discussing the definition and influence of home-country bias and explore why investors tend to overweight their portfolios with domestic equities despite global opportunities. We dissect the home bias puzzle, the rationality behind bias, and the conditions under which home-country bias makes sense. Then, Mark McGrath joins us to unpack the complexities of segregated funds and why it might not be the investment product you were hoping for. Following that, we sit down with Todd Rogers, a prominent behavioural scientist and professor, to discover the science behind effective communication. He explains how we adapt to different communication styles and techniques over time, the foundations of effective communication, and much more. Be sure to tune in as we unravel the complexities of investing, navigate the world of behavioural science, and bring you the tools you need for financial success! Key Points From This Episode: (0:00:00) Episode introduction and what listeners can expect. (0:01:30) Definition of home-country bias and its influence on investors. (0:04:25) Unpack the home bias puzzle and Canadian home bias trends. (0:08:27) Discover the conditions when home bias may make sense. (0:13:10) Relative economic standing: an important aspect of home-country bias. (0:15:00) Explore home-country bias through a quantitative lens. (0:20:28) Common concerns of overweighting a small market cap. (0:27:21) Mark to Market: the good, bad, and complicated side of segregated funds. (0:31:24) Dissect the proposed benefits of segregated funds. (0:39:07) Discover the drawbacks and pitfalls of segregated funds. (0:44:05) Alternatives to segregated funds and Mark's main takeaways. (0:46:50) Highlights from our conversation with Professor Vanessa Bohns. (0:49:38) Introducing today'sguest Todd Rogers, behavioural scientist and professor. (0:51:37) Learn about the science behind effective writing and communication. (0:53:48) Thedecision-making process when receiving new information. (0:56:18) Todd shares thesix principles of effective writing. (0:58:28) When to send a message, why less is more, and tips for effectively communicating. (1:06:32) Advice for using emojis and hyperlinks and the impact of bolding and highlighting. (1:12:35) The impact of AI on effective writing and the importance of good writing. (1:19:45) Final takeaways, book recommendations, listener reviews, and more! Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://twitter.com/MarkMcGrathCFP Home-country Bias YouTube Video — https://www.youtube.com/watch?v=qYedjI03Q0g Assuris — https://assuris.ca Canadian Investor Protection Fund — https://www.cipf.ca/ The Money Scope Podcast — https://moneyscope.ca/ Professor Vanessa Bohns — https://www.vanessabohns.com/ Professor Vanessa Bohns on X — https://twitter.com/profbohns Professor Vanessa Bohns on Instagram — https://www.instagram.com/profbohns/ Professor Vanessa Bohns on LinkedIn — https://www.linkedin.com/in/vanessa-bohns-33219710/ Professor Vanessa Bohns on Goodreads — https://www.goodreads.com/author/show/21035835.Vanessa_Bohns Todd Rogers on LinkedIn — https://www.linkedin.com/in/todd-rogers-6ba447/ Todd Rogers on X — https://twitter.com/Todd_Rogers_ Harvard University — https://www.harvard.edu/ Analyst Institute — https://analystinstitute.org/ EveryDay Labs — https://www.everydaylabs.com/ The Behavioural Insights Team — https://www.bi.team/ Behavioral Science & Policy Association (BSPA) — https://behavioralpolicy.org/ Six Principles Checklist — GPT-4 — https://openai.com/research/gpt-4 Women's Wealth: Investing Basics for Women Webinar — Books From Today's Episode: You Have More Influence Than You Think — https://www.amazon.com/dp/1324005718/ Writing for Busy Readers — https://www.amazon.com/Writing-Busy-Readers-Communicate-Effectively/dp/0593187482 Index Funds: The 12-Step Recovery Program for Active Investors — https://www.amazon.com/Index-Funds-12-Step-Recovery-Investors-ebook/dp/B

In this episode, we delve into the world of mindfulness and meditation with renowned author and meditation advocate, Dan Harris. In our conversation, Dan shares his personal journey from a high-stress career in the news to discovering the transformative power of mindfulness meditation. We explore Dan's best-selling book, 10% Happier which chronicles his exploration into mindfulness practices after experiencing a panic attack on live television. We discuss how Dan's quest for inner peace led him to explore meditation, the core principles of Dan's 10% Happier philosophy, and how mindfulness can lead to incremental but significant improvements in happiness. Discover why Buddhism is a religion that skeptics can line up behind, the intersection of mindfulness and financial decision-making, and the importance of empathy and self-awareness for financial advisors. Gain insights into applying mindfulness principles to everyday life, strategies for building the skill of happiness, the basic steps to start meditating, and much more! Join us on this insightful journey as we explore how mindfulness can truly transform lives and empower individuals to live with greater purpose, happiness, and fulfillment with Dan Harris! Key Points From This Episode: (0:04:49) Dan shares his journey from a high-stress career in news to discovering mindfulness meditation. (0:06:48) What mediation is, why he initially thought it was nonsense, and why he changed his mind. (0:09:11) Unpack the idea of mindfulness and the science that backs up the claims. (0:11:22) The main thesis of Buddhism and its link to meditation. (0:14:02) How mindfulness can help manage emotions, improve focus, and enhance relationships in everyday life. (0:15:48) He shares how difficult it was for him to embrace the concept of meditation. (0:21:12) Discover what motivated him to explore meditation and mindfulness practices. (0:21:12) Recommendations to start meditating and how long it takes to form a habit of it. (0:26:56) Insights on applying mindfulness principles to financial decision-making. (0:28:29) Explore the benefits of meditation for the comparing mind and the wanting mind. (0:30:59) How mindfulness meditation has influenced his financial decision-making. (0:33:20) The principles of 10% Happier from the perspectives of a client and advisor. (0:35:45) Strategies for making your own happiness and cultivating contentment. (0:41:03) Transitioning from a career in news to focusing on mindfulness advocacy and podcasting. (0:42:32) His biggest lessons since writing the book and his most influential podcast guest. (0:48:26) Hear about Dan's version of success and happiness. Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Dan Harris — https://danbharris.komi.io/ Dan Harris on X — https://twitter.com/danbharris Dan Harris on Instagram — https://www.instagram.com/danharris/ Dan Harris on Facebook — https://www.facebook.com/DanHarrisABC Dan Harris on YouTube — https://www.youtube.com/c/TenPercentHappier Dan Harris on TikTok — https://www.tiktok.com/@danbharris 10% Happier — https://www.tenpercent.com/ Ten Percent Happier Podcast — https://www.tenpercent.com/podcast 'Finding and Funding a Good Life' — https://www.pwlcapital.com/finding-and-funding-a-good-life/ Dan Harris: Celebrating 10 Years of 10% Happier — https://www.symphonyspace.org/events/vp-dan-harris-10-happier-10-year-anniversary Emma Seppälä — https://www.emmaseppala.com/ Dalai Lama — https://www.dalailama.com/ Joseph Goldstein — https://www.dharma.org/teacher/joseph-goldstein/ Books From Today's Episode: 10% Happier — https://www.goodreads.com/en/book/show/18505796

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. Key Points From This Episode: (0:04:29) Reasons that Canada officially embraced Bitcoin sooner than the USA. (0:05:55) Why spot Bitcoin ETFs took longer to be approved by the SEC than futures ETFs. (0:07:54) Which ETF regulations have changed to allow a spot Bitcoin ETF. (0:09:42) Approved cash creation and redemption limitations. (0:12:46) What spot Bitcoin EFTs are backed by. (0:17:15) Bitwise: how it demonstrates transparency and the potential for sabotage. (0:19:38) How authorized participants will deal with anti-money laundering aspects of Bitcoin transactions. (0:21:31) How spot Bitcoin ETFs have been trading relative to their net asset value. (0:22:42) The amount of value flowing into Bitcoin ETFs. (0:27:23) Differentiating Newborn Nine ETFs from one another. (0:31:57) Benefits of Bitcoin being made available through an ETF. (0:34:21) The impact spot Bitcoin ETFs have had on Bitcoin's identity. (0:38:04) Who has benefited the most from the adoption of spot Bitcoin ETFs. (0:40:36) Comparing spot ETFs starting trade to what was predicted by crypto enthusiasts. (0:44:36) Vanguard's decision to not allow the spot Bitcoin ETFs on their platform. (0:48:19)How financial advisors will leverage spot Bitcoin ETFs. Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Eric Balchunas on LinkedIn — https://www.linkedin.com/in/ericbalchunas/ Eric Balchunas on X — https://twitter.com/EricBalchunas Bloomberg — https://www.bloomberg.com/ Trillions — https://www.bloomberg.com/podcasts/series/trillions U.S. Securities and Exchange Commission — https://www.sec.gov/ Bitwise — https://bitwiseinvestments.com/ Bitwise Bitcoin ETF — https://www.sec.gov/Archives/edgar/data/1763415/000199937124000346/bitcoin-424b3_011024.htm Coinbase — https://www.coinbase.com BlackRock — https://www.blackrock.com Grayscale Bitcoin Trust ETF (GBTC) — https://etfs.grayscale.com/gbtc Vanguard — https://investor.vanguard.com/ Bitcoin — https://bitcoin.org Books From Today's Episode: The Bogle Effect — https://www.amazon.com/Bogle-Effect-Vanguard-Investors-Trillions/dp/1637740719

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! Key Points From This Episode: Details about the company's investment management portfolio. (0:06:38) Dalio's model of economic cycles' influence on the company's investment approach. (0:09:13) Exploring the criticism toward Dalio's model of economic cycles. (0:10:13) How successful Dalio has been at predicting market crashes. (0:12:21) Bridgewater's investment success track record. (0:14:40) Unpacking Dalio's principles and how he developed them. (0:16:16) Uncovering how Dalio's principles are perceived within Bridgewater and how they made the company successful. (0:18:56) Learn how believability and radical transparency work within Bridgewater. (0:20:58) The bizarre Dot Collector app and how the company leverages it. (0:24:57) Employees' experiences of working at Bridgewater. (0:28:02) Rob's opinion about Ray and how he compares to other hedge fund managers. (0:29:38) Hear about undisclosed aspects of Ray's success story. (0:34:52) Dalio and readers' reactions since publishing the book. (0:37:17) Delving into the nuance factors explaining Bridgewater's success as a business. (0:40:18) How the company will continue to function post-Ray Dalio. (0:43:06) What Rob hopes readers will take away after reading the book. (0:44:55) Links From Today's Episode: Rob Copeland on LinkedIn — https://www.linkedin.com/in/real-rob-copeland/ Rob Copeland on X — https://twitter.com/realrobcopeland The New York Times — https://www.nytimes.com/ The Fund — https://static.macmillan.com/static/smp/the-fund/ Bridgewater Associates — https://www.bridgewater.com/ Principles — https://www.amazon.com/Principles-Life-Work-Ray-Dalio/dp/1501124021 Doom: The Politics of Catastrophe — https://www.amazon.com/Doom-Politics-Catastrophe-Niall-Ferguson/dp/0593297377 The Dot Collector — https://www.principles.com/principles/3290232e-6bca-4585-a4f6-66874aefce30/ Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

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! Key Points From This Episode: An introduction to today's guest, Robin Wigglesworth, followed by his breakdown of quantitative investing. (0:04:05) Theories on what happened to factor investing between 2018 and 2020; what is meant by the quant winter and why we are now in a quant summer. (0:09:59) How investor sentiment regarding factor investing changed after the quant winter and how the algorithm aversion phenomenon impacted it. (0:15:13) The collapse of value; the impact of the COVID-19 pandemic (plus its role in the quant winter), and where we are right now. (0:20:14) An overview of quant investing products, and why many of them are too expensive. (0:23:24) Breaking down the noisy-ness in factor data and Robin's predictions for where factor investing will go from here. (0:25:51) Unpacking the hype around private credit: indications that it's in a bubble, how it could impact broader trends, and who stands to benefit most. (0:36:36) We hear about the fascinating book that Robin is currently working on about the history of the bond market. (0:40:22) Our Mark to Market segment on the complicated (and divisive) Canada Pension Plan (CPP); how it works, its profound benefits, and responding to the criticism it has received. (0:41:50) A look back at our conversation with Alexandra Macqueen on annuities and how it links in with today's discussion. (01:01:31) Our after-show section: an update on the Money Scope Podcast, reading recommendations, reviews from our listeners, and some of the incredible guests we have coming up! (01:04:33) Links From Today's Episode: Robin Wigglesworth — https://robinwigglesworth.com/ Robin Wigglesworth on LinkedIn — https://www.linkedin.com/in/robin-wigglesworth-17101722 Financial Times — https://www.ft.com/ Trillions: How a Band of Wall Street Renegades Invented the Index Fund and Changed Finance Forever — https://www.amazon.com/Trillions-Renegades-Invented-Changed-Finance/dp/0593087682 'Quant Winter's Tale' — https://www.ft.com/content/e0f98278-432e-4ece-b170-2c40e40d2835 Episode 184: Robin Wigglesworth — https://rationalreminder.ca/podcast/184 Episode 93: Cliff Asness from AQR — https://rationalreminder.ca/podcast/93 Cliff Asness — https://www.aqr.com/About-Us/OurFirm/Cliff-Asness-Bio AQR — https://www.aqr.com/ Two Sigma — https://www.twosigma.com/ D.E Shaw — https://www.deshaw.com/ CPP Investments — https://www.cppinvestments.com/ StatsCan — https://www.statcan.gc.ca/en/start Financial Planning for Canadian Business Owners Episode 116: True Cost of CPP with Aravind Sithamparapillai — https://jasonpereira.ca/all-content-jason-pereira-toronto/true-cost-of-cpp-with-aravind-sithamparapillai-e116 Episode 59: Alexandra Macqueen — https://rationalreminder.ca/podcast/59 Pensionize Your Nest Egg — https://www.amazon.com/Pensionize-Your-Nest-Egg-Allocation/dp/1119025257 Griselda Blanco — https://www.imdb.com/title/tt15837600/ Cocaine Cowboys — https://www.imdb.com/title/tt0380268/ Queen of the South — https://www.imdb.com/title/tt1064899/ Fortune's Children: The Fall of the House of Vanderbilt — https://www.amazon.com/Fortunes-Children-Fall-House-Vanderbilt/dp/0062224069 Farnam Street — https://fs.blog/ 24 in 24 Reading Challenge — https://rationalreminder.ca/24in24 The Money Scope Podcast — https://moneyscope.ca/ The Money Scope Podcast on YouTube — https://www.youtube.com/@moneyscopepod Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Ra

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! Key Points From This Episode: (0:03:28) Why it is important to understand the aspects that never change, with examples. (0:05:58) Morgan explains the value of random and seemingly inconsequential events. (0:07:43) Discover the most persistent characteristic of risk and the ways expectations impact behaviour and decision-making. (0:13:04) How he has been dealing with the success of his book, Psychology of Money. (0:15:11) What makes once-in-a-lifetime events more common than expected and the problems that a desire for certainty brings with it. (0:19:16) Leveraging storytelling to understand the world and how to filter out the good information from the bad information. (0:25:41) Explore the role of incentives in influencing expectations and how calm can turn into crazy. (0:31:06) Learn how success can develop into failure and the problems that stem from investors trying to squeeze too much too soon from their investments. (0:37:13) Advice for understanding the normal 'growth rate' and what motivates innovation. (0:42:29) Balancing stress and adversity and why being slightly inefficient is a good thing. (0:46:46) Navigating hassle and nonsense on the path to success. (0:48:30) The time scale differences in materializing good news and bad news. (0:50:31) Strategies for combining optimism and pessimism to make informed and effective long-term decisions. (0:53:03) Examine the challenges of predicting the impact of future innovations. (0:55:43) The tendency for people to perceive others or businesses as better. (0:58:38) Hear about the difference between permanent and expiring information. (1:00:36) Reasons why complexity and length are appealing and how personal experiences shape perspectives. (1:05:00) Morgan shares the biggest takeaways from his books. Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582 Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Morgan Housel — https://www.morganhousel.com/ Morgan Housel on LinkedIn— https://www.linkedin.com/in/morgan-housel-5b473821/ Morgan Housel on X — https://twitter.com/morganhousel Morgan Housel on Instagram — https://www.instagram.com/morganhousel/ The Morgan Housel Podcast — https://podcasts.apple.com/us/podcast/the-morgan-housel-podcast/id1675310669 Collaborative Fund — https://collabfund.com/ Collab Blog — https://collabfund.com/blog/ Episode 128: Morgan Housel — https://rationalreminder.ca/podcast/128 Episode 191: Emerging Markets — https://rationalreminder.ca/podcast/191 Episode 224: Scott Cederburg — https://rationalreminder.ca/podcast/224 Books From Today's Episode: Sapiens — https://www.amazon.com/Sapiens-Humankind-Yuval-Noah-Harari/dp/0062316095 Seinfeldia — https://www.amazon.com/Seinfeldia-About-Nothing-Changed-Everything/dp/1476756112 The Snowball — https://www.amazon.com/Snowball-Warren-Buffett-Business-Life/dp/0553384619 Same as Ever — https://www.amazon.com/Same-Ever-Guide-Nev

Does the 4% rule still work? In this episode, we welcome three esteemed experts to counter a recent controversial claim made on the Dave Ramsey Show regarding the validity of the 4% rule in retirement planning. Joining us is David Blanchett; the Managing Director and Head of Retirement Research for PGIM DC Solutions, Michael Finke; a distinguished professor of wealth management at the American College of Financial Services, and Wade Pfau; Director of Retirement Research at McLean Asset Management. In our conversation, these experts shed light on the intricate world of retirement income planning, dispelling misconceptions and advocating for a more nuanced approach. Discover the flaws in Ramsey's assertion and explore the dynamics of sequence of return risk in retirement planning. Unpack the complexities of investing in bonds for retirees and the evolving risk profiles of stocks over varying investment horizons. We also uncover the significance of variable spending rates, debunk the fallacies behind aggressive withdrawal suggestions, a safety-first approach in retirement finance, and much more. Tune in for an enlightening journey through retirement planning and equip yourself with expert insights to pave a secure path for your financial future! Key Points From This Episode: The motivation for addressing Dave Ramsey's 8% retirement spending rate claim. (0:07:26) Unpack the holes in Dave Ramsey's 8% claim. (0:09:48) How important sequence of return risk is for retirement planning. (0:15:08) Discover if investing in bonds is risky for a retiree. (0:17:57) Learn how the risk of holding stocks changes for longer versus shorter investment horizons. (0:21:55) Subjective risk tolerance and how it is influenced by market fluctuations. (0:24:04) Going all-in on stocks compared to strategies that involve both bonds and stocks in your investment portfolio. (0:30:10) They share their thoughts on Dave Ramsey's notion that the 4% rule is depressing. (0:35:23) Overview of the issues and misconceptions surrounding the 4% rule. (0:37:28) Alternative approaches to spending money from a riskier investment portfolio. (0:40:06) Dynamic spending strategies to improve the initial withdrawal rate from investments. (0:43:01) Explore other financial products, like annuities, for retirement planning. (0:50:05) Mindset hurdles and adjusting expectations for financial planning. (0:58:46) Dissect the concept of delaying government pensions and its impact on investors. (1:02:24) Insights into the pros and cons of delaying social security for higher-earning women. (1:07:52) Final words of wisdom the guests have for listeners. (1:09:30) Links From Today's Episode: Michael Finke — http://www.michaelfinke.com/home.html Michael Finke on X — https://twitter.com/finkeonfinance Michael Finke on Facebook — https://www.facebook.com/mfinke The American College of Financial Services — https://www.theamericancollege.edu/ David Blanchett — https://www.davidmblanchett.com/ David Blanchett on X — https://twitter.com/davidmblanchett David Blanchett on LinkedIn — https://www.linkedin.com/in/david-blanchett-b0b0aa2/ PGIM DC Solutions — https://www.pgim.com/dc-solutions/ Wealth, Managed Podcast — https://www.theamericancollege.edu/knowledge-hub/wealth-managed-podcast Wade Pfau — https://retirementresearcher.com/wade-pfau/ Wade Pfau on LinkedIn — https://www.linkedin.com/in/wpfau/ Wade Pfau on X — https://twitter.com/WadePfau McLean Asset Management — https://www.mcleanam.com/ Retire With Style Podcast — https://risaprofile.com/retire-with-style/ Alliance for Lifetime Income — https://www.protectedincome.org/ Episode 89: Wade Pfau: Safety-First: A Sensible Approach to Retirement Income Planning — https://rationalreminder.ca/podcast/89 Episode 137: David Blanchett: Researching Retirement — https://rationalreminder.ca/podcast/137 Episode 254: David Blanchett: Regret Optimized Portfolios and Optimal Retirement Income — https://rationalreminder.ca/podcast/254 The Ramsey Show — https://www.youtube.com/@TheRamseyShowEpisodes The Ramsey Show: You Can't Win With Money if You Don't Know Where Your Money Is — https://www.youtube.com/watch?v=Xg4Z8EQY3Ao 'Supernerds Unite Against Dave Ramsey's 8% Safe Withdrawal Rate Guidance' — https://www.thinkadvisor.com/2023/11/13/supernerds-unite-against-dave-ramseys-8-safe-withdrawal-rate-guidance/ RISA profiler — risaprofile.com/rationalreminder 'Quasi-empirical bootstrap sampling paper' — Jason Fichtner — https://bipartisanpolicy.org/person/jason-j-fichtner/ 'The Value of Delayed Social Security Claiming for Higher-Earning Women' — https://dx.doi.org/10.2139/ssrn.3849653 Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/

Tightwads are more likely to hold onto their money even when there is more than enough to spend, whilst spendthrifts will drain their bank account of its very last cent. So, which one are you, and how does that impact your relationships? Joining us today is the remarkable Marketing Professor and Author, Scott Rick. Scott has just penned a new book, Tightwads and Spendthrifts: Navigating the Money Minefield in Real Relationships, which serves as a guide for finding happiness while steering through money and love. To kick-start our conversation, Scott summarizes the relationship that people generally have with money, followed by a deeper exploration of the terms "tightwad" and "spendthrift". We break down the psychology of tightwad and spendthrift behaviours, how these two personality types interact with one another in relationships, the myths of financial infidelity and transparency, and how bank account structures (joint and individual accounts) dictate how money flows in a relationship. We also assess the roles of financial advisors and gift-giving within relationships before Scott shares his thoughts on marrying for money versus marrying for love, how to give your kids the best financial education, and what he hopes every reader will gain from the truly fascinating and informative, Tightwads and Spendthrifts! Key Points From This Episode: (0:00:33) Introducing the incredible Marketing Professor and Author, Scott Rick. (0:03:08) Scott's summation of the relationship that people have with money. (0:04:47)Diving into his latest book: Tightwads and Spendthrifts, and exploring each term. (0:13:16) Assessing the psychology behind tightwad and spendthrift behaviours. (0:18:58) The role of financial advisors. (0:21:15) What spendthrifts and tightwads can do to balance their money scales. (0:23:34) How tightwads and spendthrifts interact in romantic relationships. (0:32:10) The way bank account structures affect how money flows in a relationship. (0:35:39) Debunking financial infidelity and the downsides of total financial transparency. (0:41:04) The ins and outs of joint bank accounts versus individual accounts in relationships. (0:42:20) Gift-giving and relationships. (0:47:08) How kids can learn about money from their parents. (0:52:15) Scott shares his thoughts on marrying for love versus marrying for money. (0:55:09) What he hopes people will learn from reading Tightwads and Spendthrifts. Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Scott Rick — https://scottrick.com/ Scott Rick on LinkedIn — https://www.linkedin.com/in/scottianrick/ Scott Rick on X — https://twitter.com/scottianrick Michigan Ross — https://michiganross.umich.edu/ Hal Hershfield — https://www.halhershfield.com/ 'Episode 282: Dr. Jim Grubman: The Psychology of Wealth' — https://rationalreminder.ca/podcast/282 Books From Today's Episode: Tightwads and Spendthrifts — https://www.amazon.com/Tightwads-Spendthrifts-Navigating-Minefield-Relationships/dp/1250280079 Retail Therapy Blog — https://www.psychologytoday.com/intl/blog/retail-therapy Damon Young — https://www.nytimes.com/column/damon-young The Great Gatsby — https://www.amazon.com/Great-Gatsby-Original-Fitzgerald-Classic/dp/B0BF3P5XZS 'The 36 Questions That lead To Love' — https://www.nytimes.com/2015/01/09/style/no-37-big-wedding-or-small.html

It's the start of a new year and with it comes an opportunity to re-evaluate your trajectory and set your goals for the months to come, whether they be financial, personal, or all of the above. Kicking things off for today's episode is our conversation with Steve Balaban, a private equity insider with a refreshingly realistic and practical perspective on private equity. We talk with Steve about investing in private equity, the benefits and drawbacks every investor should know about, why due diligence is essential, how private equity interacts with investor psychology, and much more. Tuning in you'll also learn about the Private Equity Certificate offered by CFA Society Toronto in collaboration with Mink Learning and how listeners can gain special access to these training tools. Next, we take a look back at our conversation with Ayelet Fishbach from the Booth School of Business on the science of motivation and goal setting and the contents of her new TEDxChicago Talk The Science of Getting Motivated. We wrap things up with a review of Justin Breen's book titled, Epic Life: How to Build Collaborative Global Companies While Putting Your Loved Ones First, followed by our conversation with the author on the transformational power of naming your year, the power of networking, and other key lessons from his book. For all this and much more, be sure to tune in and start 2024 armed with insights from some of the best thinkers around! Key Points From This Episode: (0:01:26) Use discount code RATIONAL to watch the award-winning documentary Tune Out The Noise, free of charge (valid until the end of January 2024, so make sure you don't miss out!) (0:03:44) An introduction to Steve Balaban and Mink Learning, a private equity education company he founded in 2019. (0:07:29) Steve's insights on aggregate public market equivalent (PME) benchmarking and key issues that arise when using Internal Rate of Return (IRR) to benchmark private equity. (0:17:58) The best arguments in favour of private equity, the downsides you need to know about, and a rundown of the fees involved. (0:23:38) Top reasons Steve has come across for why people want to invest in private equity, and what he considers to be the right reasons. (0:29:38) How private equity interacts with investor psychology and the importance of having different vintages in your portfolio. (0:35:15) Why private equity is typically illiquid, how liquid private equity works, and the tradeoffs for investors with liquid private equity as opposed to more direct illiquid approaches. (0:42:59) The differences between private and public equity; advice on how investors should interpret private equity marketing materials and the importance of doing due diligence. (0:51:59) Trends in the industry towards permanent equity, rather than rolling over every few years. (0:59:55) Details on the Private Equity Certificate offered by CFA Society Toronto in collaboration with Mink Learning and how to use the discount code RationalReminderPEC. (01:02:21) A look back at our conversation with Professor Ayelet Fishbach and her newly released TEDxChicago Talk The Science of Getting Motivated. (01:03:58) Our book review of Epic Life: How to Build Collaborative Global Companies While Putting Your Loved Ones First, and our conversation with the author, Justin Breen. (01:07:12) The transformational impact of naming your year, finding your purpose, and the power of networking. (01:25:47) An update on our new podcast Money Scope, the content you can expect from it, and its success on the Canadian Apple Podcast charts. (01:28:43) What we've been experiencing on LinkedIn, book recommendations for the start of 2024, and exciting upcoming guests! Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Tune Out The Noise — https://film.dimensional.com/podcast/login?redirect=%2Fpodcast Discount Code for Tune Out The Noise — RATIONAL Steve Balaban — https://www.stevebalaban.com/ Steve Balaban on LinkedIn — https://training.minklearning.com/ Mink Learning — https://training.minklearning.com/ Private Equity Certificate offered by CFA Society Toronto in collaboration with Mink Learning — https://web.cvent.com/event/10af7f03-e05c-465a-803e-3e8ac3864120/summary Discoun

Rational Reminder listeners get exclusive first access to Tune Out the Noise, a documentary directed by Academy Award-winner Errol Morris until January 31. Tune Out The Noise Access URL: film.dimensional.com/podcast Access Code (available until Jan 31): RATIONAL In today's episode, Errol Morris, Academy Award-winning film director and author, joins us to talk about his recently released documentary called Tune Out the Noise. The documentary focuses on the revolution that's happened in the financial system, how the markets work, and why the advancements made are so vital. Errol is an acclaimed figure in film and literature, boasting an impressive array of accolades, notably securing an Oscar for his renowned documentary The Fog of War. His work spans various arenas, encompassing short films for prestigious events and many charitable and political organizations. In our conversation, we delve into the significance of storytelling in communicating complex subjects, the power of serendipity, the evolution of finance, and the enigmatic nature of truth. We discuss the necessity of storytelling, the unexpected occurrences that influenced finance, the importance of empirical data in understanding truth, the central story of Tune Out the Noise, and much more. He also provides insights into the amazing economists, many of whom are past guests, who helped shape the financial landscape. Discover how chance, humility, and the pursuit of truth intertwine in this captivating episode, where the intriguing art of storytelling converges with the complexities of the financial world. Tune in now! Rational Reminder listeners get exclusive first access to Tune Out the Noise, a documentary directed by Academy Award-winner Errol Morris until January 31. Tune Out The Noise Access URL: film.dimensional.com/podcast Access Code (available until Jan 31): RATIONAL Key Points From This Episode: Introduction and background about our special guest, Errol Morris. (0:00:18) The central story of his new documentary, Tune Out the Noise, and why it is important for the average person to see. (0:07:33) Hear his personal thoughts on investing before the documentary and how his investment philosophy has evolved. (0:12:38) A brief history of the documentary and initial concerns surrounding the project. (0:16:10) Motivation for making it an "Errol Morris film" as opposed to a typical commercial project. (0:18:21) The moment he had an epiphany about making the documentary and telling the story of the financial revolution. (0:20:27) He shares his personal investment experience in the early days of Apple. (0:23:19) Errol's skepticism about beating the market and the interviewees that had the biggest impact on him. (0:24:23) Iconic influencers of the overall financial revolution story that were not in the film. (0:27:50) The importance of storytelling for conveying complex financial concepts. (0:31:31) Unexpected revelations about the financial system and investing after making the documentary. (0:34:52) Explore the role of chance and serendipity in the financial revolution. (0:36:56) Aspects of the financial revolution story that are underappreciated by investors. (0:40:40) How the approach to making Tune Out the Noise differed from his previous projects. (0:44:30) Ben and Cameron share their opinions about the documentary. (0:50:09) Discover his "shut-up school" approach to interviewing and the fundamentals of a good interview. (0:52:13) Essential advice to become a better storyteller and Errol's definition of success. (0:58:07) Links From Today's Episode: Errol Morris — https://errolmorris.com Errol Morris Email — [email protected] Tune Out the Noise — https://www.austinfilm.org/films/test-screening-tune-out-the-noise/ The Fog of War — https://www.imdb.com/title/tt0317910/ The Thin Blue Line — https://www.imdb.com/title/tt0096257/ Believing Is Seeing — https://www.amazon.com/Believing-Seeing-Observations-Mysteries-Photography/dp/1594203016/ A Wilderness of Error — https://www.amazon.com/Wilderness-Error-Trials-Jeffrey-MacDonald/dp/B009GKGSEC/ Gates of Heaven — https://www.imdb.com/title/tt0077598 Dimensional Fund Advisors — https://www.dimensional.com/ The Art of Controversy — https://www.amazon.com/Art-Controversy-Arthur-Schopenhauer/dp/160459571X The Pigeon Tunnel — https://www.imdb.com/title/tt28486633/ Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profi

It's hard to believe, but today's episode marks our fifth annual year-in-review episode — where we look back at some of our favourite conversations and takeaways from the past year! If there's one overarching theme that stood out amongst our guests in 2023 it would be the power of purposeful decision-making to impact our future selves. Tuning in, you'll hear our guests' remarkable views on the topic, from the power of regret when it comes to long-term decisions to the 'hidden partner' that accompanies us in all our decision-making. Another key theme that emerged is how the role of financial advisors is evolving. Key insights include why your financial advisor should collaborate with other advisors, why trust is essential, and how to prepare your children for wealth. We wrap things up with reflective tips on how to identify what your true goals are with a profound lesson on why setting your own scoreboard is essential. Tune in as we share some of our favourite moments from the past year and look back at the incredible guests we've had on the show in 2023! Key Points From This Episode: Our year with the Rational Reminder community: 23 in 23 reading challenge, memorable meetups, live recordings, a shoutout to our community moderators, and more. (0:00:19) Looking back at our conversation with Charles Ellis and Burton Malkiel on why money management is a loser's game and navigating market efficiency. (0:08:42) Pim Van Vliet's insights on the evidence supporting higher expected returns related to certain stock characteristics. (0:16:19) Discussing the relevance (and irrelevance) of dividends and why people tend to view dividends as particularly special, with Professor Samuel Hartzmark. (0:19:42) Our conversation with Will Goetzmann on the value of very long-term data and why historical data is still relevant today. (0:24:58) Nobel laureate, Robert Merton's insights on putting together a long-term asset mix and taking into account your time horizon. (0:32:35) Highlights from our conversation with Professor Francisco Gomes on how asset allocation should (and should not) change over the lifecycle. (0:39:14) Our second interview with David Blanchett on how regret informs our long-term decisions and Daniel Pink's insights on optimizing for future regret. (0:43:58) Hear from Charles Ellis on the most under-appreciated action that every investor should take to be more successful. (0:50:50) Making decisions on personal finance and John Cambell's insights on how household beliefs tend to differ. (0:51:53) Professor Ralph Keeney on why decision-making is the only purposeful way you can influence anything in your life. (0:54:54) Input from Cass Sunstein on the extensive research he's done on decision-making and how acquiring more information can help your decisions. (0:59:25) We hear from Professor Eric Johnson about the 'hidden partner' that accompanies us when we make decisions and Cass Sunstein explains when we should update our beliefs. (01:03:09) Professor James Choi shares his profound insights on why financial decisions are not always explained by economic theory. (01:10:26) Unpacking the effect of overconfidence on our decision-making with Itzhak Ben-David, along with his key ideas on miscalibration. (01:12:53) Answering the question "How good are we at understanding our future selves?" with Hal Hershfield. (01:17:20) Our conversation with Meir Statman on the third generation of behavioural finance and what that means for decision-making and advice. (01:21:13) Dr. Preet Banerjee's research and insight on the value of having a financial plan. (01:23:48) Talking with YouTuber, Darin Soat, about the struggle to find high-quality financial information online and understanding YouTube as an entertainment-first platform. (01:25:02) Harold Geller on how to determine whether your advisor is properly understanding you and Robert Merton's thoughts on how he views the role of financial advisors. (01:28:27) We hear from Dr. Preet Banerjee on the business of financial advice and how it has changed over time. (01:35:02) Victor Haghani and James White on the topic of intergenerational billionaires and why there are fewer than you might expect. (01:39:21) An update from Rob Carrick on the state of financial planning for the average Canadian in 2023. (01:44:09) Juhani Linnainmaa unpacks the impact of financial advisors on decision-making and the challenges of choosing a financial advisor. (01:48:48) Dr. James Grubman on identifying a financial advisor who understands the importance of Wealth 3.0, why collaboration is key, and how to prepare children for wealth. (01:51:21) A final takeaway from Shane Parrish on taking stock of your year and how to determine what your true goals are. (02:02:28) Links From Today's Episode: Episode 234: Prof. Robert C. Merton — https://rationalreminder.ca/podcast/234 Episode 236: Harold Geller — https://rationalreminder.ca/podcast/236 Episode 238: Prof. Ralph Keeney — https://rationalreminder.ca/podcast

In this episode, we welcome back the esteemed Professor Scott Cederburg, Associate Professor of Finance at the University of Arizona. In this highly anticipated episode, Professor Cederburg revisits the show to delve into his groundbreaking paper on life cycle asset allocation. Professor Cederburg's latest research presents findings that disrupt traditional thinking in the field, prompting a deep dive into the implications of these new insights. In our conversation, we unpack the findings from the paper and how they challenge established norms in retirement planning and asset allocation. We discuss what the new paper adds to the discourse, his approach and methodology, the different assessment criteria used, and the main findings from the paper. We also delve into the different asset allocation strategies assessed, which strategy performed best, aspects that would influence the various strategies, and how to invest for the long term safely. We explore the nuances of stock versus bond returns and the hidden benefits of international diversification. Gain profound insights into the significance of social security, inflation-protected bonds, target date funds, and the repercussions of an all-equity strategy. Comparing his latest paper with prior research on withdrawal rates, Professor Cederburg highlights surprising aspects of the results and provides invaluable takeaways for financial advisors from these cutting-edge findings. Discover how this pioneering work challenges conventional wisdom, reshaping the landscape of retirement planning and investment strategies in this illuminating conversation with Professor Scott Cederburg. Key Points From This Episode: Background about Professor Cederburg and episode overview. (0:00:00) How his new paper challenges the central tenets in life cycle investing. (0:03:38) What sets his method apart regarding its ability to challenge the status quo. (0:06:56) How he characterizes the life cycle of the household modelled in his study. (0:09:40) The data set used and his approach for sampling and analyzing the data. (0:12:09) Retirement outcomes used to evaluate life cycle asset allocation strategies. (0:13:56) Asset allocation strategies investigated in the paper and which one performs best. (0:15:49) Left tail outcomes of all-stocks strategy, stock returns vs bond returns, and the benefits of international diversification. (0:22:52) Learn about the importance of social security in the model and the nuances of inflation-protected bonds. (0:28:29) Investing in target date funds and the downsides of an all-equity strategy. (0:32:05) Hear about the impact of large intermediate losses on retirement savings. (0:35:33) Unpacking the lag time on returns between stocks and bonds. (0:40:01) Exploring investing behaviour and reasons for underperformance. (0:42:15) The importance of return dependencies and what happens to the results if monthly returns are used. (0:45:03) Navigating and modelling flaws and common aspects overlooked in financial analyses. (0:49:29) Dissecting retiree adherence to traditional approaches to long-term investing. (0:50:36) Home country bias and its influence on portfolio allocation. (0:52:12) Currency effect and domestic stock hedging as a strategy. (0:55:32) Comparing the findings from his latest paper with those from his paper on withdrawal rates. (1:00:24) Aspects of the results that surprised him and takeaways for financial advisors from the latest research findings. (1:02:07) Links From Today's Episode: Professor Scott Cederburg — https://eller.arizona.edu/people/scott-cederburg Professor Scott Cederburg on LinkedIn — https://www.linkedin.com/in/scott-cederburg/ Professor Scott Cederburg on Google Scholar — https://scholar.google.com/citations/ Eller College of Management — https://eller.arizona.edu/ Episode 224 — https://rationalreminder.ca/podcast/224 Episode 250 — https://rationalreminder.ca/podcast/250 'Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice' — https://dx.doi.org/10.2139/ssrn.4590406 'The Safe Withdrawal Rate: Evidence from a Broad Sample of Developed Markets' — https://dx.doi.org/10.2139/ssrn.4227132 International Diversification Works (Eventually) — https://doi.org/10.2469/faj.v67.n3.1 'Stocks for the long run? Evidence from a broad sample of developed markets' — https://www.sciencedirect.com/science/article/ Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Pas

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! Key Points From This Episode: The biggest takeaways on volatility and investor behaviour from Scott Cederburg's research; unpacking performance chasing, return gaps, fund expense ratios, and more. (0:02:06) An overview of the project that Mark Soth and Ben have been working on, the Money Scope podcast; why they started it, what it covers, and who it's for. (0:14:13) Details on Money Scope's format and the supplementary case study episodes. (0:19:12) Our Mark to Market segment on physicians incorporating; a rundown of the complexities, common misconceptions, and benefits to be aware of. (0:26:32) How much you should be retaining in a corporation to make it worthwhile. (0:33:30) A look back at our conversation with Gerard O'Reilly and why this episode is a must-listen. (0:37:58) Cameron's review of Brave New Work: Are You Ready to Reinvent Your Organization? by Aaron Dignan, along with his top takeaways. (0:40:10) Our after-show section; guests to look forward to, recommended reading, community highlights, and more. (0:46:23) Links From Today's Episode: Episode 198: Gerard O'Reilly — https://rationalreminder.ca/podcast/198 Episode 224: Scott Cederburg — https://rationalreminder.ca/podcast/224 Episode 268: Itzhak Ben-David — https://rationalreminder.ca/podcast/268 'The Folly of Hiring Winners and Firing Losers' — https://www.cannonfinancial.com/uploads/main/The_Folly_of_Hiring_Winners_and_Firing_Losers1725.pdf The Money Scope Podcast — https://moneyscope.ca/ The Money Scope Podcast on YouTube — https://www.youtube.com/@moneyscopepod Brave New Work: Are You Ready to Reinvent Your Organization? — https://www.amazon.com/Brave-New-Work-Reinvent-Organization/dp/0525536205 Aaron Dignan — http://www.aarondignan.com/ The Ready — https://www.theready.com/ The Fund: Ray Dalio, Bridgewater Associates, and the Unraveling of a Wall Street Legend — https://www.amazon.com/Fund-Bridgewater-Associates-Unraveling-Street/dp/1250276934 Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Dr. Mark Soth (The Loonie Doctor) — https://www.looniedoctor.ca/ Dr. Mark on X — https://twitter.com/LoonieDoctor Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://twitter.com/MarkMcGrathCFP

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! Key Points From This Episode: Dr. Grubman's definition of wealth and why wealth is relative. (0:04:06) How common is becoming wealthy compared to being born wealthy. (0:07:12) Family dynamics and challenges when adapting to higher levels of wealth. (0:11:01) Why modelling healthy personal financial management is vital for children. (0:16:00) Discover how the origins of wealth influence the ability to psychologically adapt. (0:20:34) Essential considerations when adopting the culture of wealth. (0:23:00) Possible reasons why someone may avoid adopting the culture of Wealth 3.0. (0:27:48) The implications of avoiding and overcompensating for the culture of wealth. (0:30:03) Explore what contributes to the successful integration into the culture of wealth. (0:35:23) Common barriers that prevent learning and adapting to higher levels of wealth. (0:37:10) Aspects parents should consider when preparing their children for wealth. (0:40:30) His perspective on professional advisors in managing family wealth. (0:46:36) Unpacking the evolution of the wealth management landscape. (0:48:37) He explains why the negative psychological implications of wealth have persisted. (0:53:48) Insights into the definition and concept of Wealth 3.0. (0:55:47) New skills advisors need to develop to be successful in the Wealth 3.0 generation. (1:00:20) Advice for finding financial advisors that are Wealth 3.0 savvy. (1:02:22) What Dr. Grubman is excited about in the emerging Wealth 3.0 era. (1:09:16) Dr Grubman shares his definition of success. (1:12:10) Links From Today's Episode: Dr. James Grubman — https://jamesgrubman.com/ Strangers in Paradise — https://www.amazon.com/Strangers-Paradise-Families-Wealth-Generations/dp/0615894356 Wealth 3.0 — https://www.amazon.com/Wealth-3-0-Future-Family-Advising/dp/B0C9SHFSGM/ Cross Cultures — https://www.amazon.com/Cross-Cultures-Families-Negotiate-Generations/dp/1517626609/ Family Firm Institute (FFI) — https://www.ffi.org/ Purposeful Planning Institute — https://purposefulplanninginstitute.com/ STEP — https://www.step.org/ Ultra-High Net Worth Institute (UHNW) — https://www.uhnwinstitute.org/ Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

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! Key Points From This Episode: Breaking down asset allocation through an empirical lens; finding the right mix of assets in a portfolio, common challenges, and measuring risk. (0:02:12) The role of government pensions when considering asset allocation over one's life. (0:09:10) Investigating whether volatility is risk; modeling the lifecycle of an investor and determining if (and when) it makes sense to shift into bonds over time. (0:11:27) Analyzing the data, modelling, and findings from the paper, 'Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice'. (0:14:02) The challenges of behaving well with volatile assets; advice on how to assess your risk tolerance, your ability to endure short-term declines, and more. (0:23:10) Our Mark to Market segment: unpacking different types of insurance and when you should own them personally or inside your corporation. (0:29:50) A quick look back at our conversation with Dr. Anna Lembke on the subject of dopamine. (0:37:58) This week's book review: Justin King's The Retirement Café Handbook: Nine Accelerators for a Successful Retirement. (0:39:33) Our conversation with Justin King on how to retire successfully. (0:41:19) Unpacking the nine accelerators in Justin's book and where they come from. (0:45:44) How to get the most out of The Retirement Café Handbook. (0:55:47) Sharing some of the wonderful reviews we've gotten recently, plus our book recommendations. (0:59:28) Links From Today's Episode: 'Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4590406 Episode 224: Prof. Scott Cederburg — https://rationalreminder.ca/podcast/224 Episode 169: Prof. John Cochrane — https://rationalreminder.ca/podcast/169 Episode 250: Prof. John Y. Campbell — https://rationalreminder.ca/podcast/250 Episode 278: Juhani Linnainmaa: Financial Advisors, and the Cross Section of Returns — https://rationalreminder.ca/podcast/278 Episode 177: Dr. Anna Lembke — https://rationalreminder.ca/podcast/177 Anna Lembke — https://www.annalembke.com/ Dopamine Nation: Finding Balance in the Age of Indulgence — https://www.annalembke.com/dopamine-nation Justin King on LinkedIn — https://www.linkedin.com/in/justinking-retirement-planner-ifa/ Justin King on X — https://twitter.com/JustinKingCFP The Retirement Café — https://www.theretirementcafe.co.uk/ The Retirement Café Podcast — https://www.theretirementcafe.co.uk/podcast The Retirement Café Handbook: Nine Accelerators for a Successful Retirement — https://www.amazon.co.uk/Retirement-Cafe-Handbook-Accelerators-Successful/dp/1739410300 Notes from Listener PDF — Episode 30: Larry Swedroe — https://rationalreminder.ca/podcast/tag/Larry+Swedroe Strangers in Paradise: How Families Adapt to Wealth Across Generations — https://www.amazon.com/Strangers-Paradise-Families-Wealth-Generations/dp/0615894356 Wealth 3.0: The Future of Family Wealth Advising — https://www.amazon.com/Wealth-3-0-Future-Family-Advising/dp/B0C9SHFSGM Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.

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! Key Points From This Episode: Background about Shane Parrish and his new best-selling book, Clear Thinking. (0:00:19) The significance of ordinary moments and the benefits of becoming a clear thinker. (0:03:19) Examples of how ordinary moments can multiply bigger decisions to zero. (0:06:32) Defining true goals, and why regularly reassessing them ensures personal growth. (0:08:20) Clear thinking's role in reaching goals and how it helps evaluate your objectives. (0:11:07) Discover the defaults that hinder clear thinking and strategies to overcome them. (0:12:19) Best practices as a decision-making tool and the value of unconventional paths. (0:25:22) Explore the role of self-confidence in clear thinking and taking the first step. (0:26:51) Learn about the importance of good habits in developing clear thinking. (0:33:03) Making your own rules, sticking to them, and how they can help in social situations. (0:36:23) Characterizing the problem before starting the problem-solving process. (0:44:17) Shane shares why he values time over money. (0:48:52) Steps for curating your mental environment and Shane's definition of success. (0:53:24) Links From Today's Episode: Farnam Street — https://fs.blog/ Shane Parrish on LinkedIn — https://www.linkedin.com/in/shane-parrish-050a2183/ Shane Parrish on X — https://twitter.com/ShaneAParrish Syrus Partners — https://www.syruspartners.com/ Clear Thinking — https://www.amazon.com/Clear-Thinking-Turning-Ordinary-Extraordinary/dp/0593086112 The Knowledge Project Podcast — https://fs.blog/knowledge-project-podcast/ Episode 19: Shane Parrish — https://rationalreminder.ca/podcast/19 Episode 143: Ashley Whillans — https://rationalreminder.ca/podcast/143 The Great Mental Models — https://www.amazon.com/dp/B086DQQ278 30 Lessons for Living — https://www.amazon.com/30-Lessons-Living-Advice-Americans/dp/0452298482 Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

In this episode, we start by learning about the complex relationship between recessions and stock returns before welcoming Huston Loke and Jordan Solway from the Financial Services Regulatory Authority (FSRA) to discuss protecting consumers in the financial investment space. Huston is the Executive Vice President of Market Conduct, and Jordan is the Executive Vice President of Legal and Enforcement at FSRA. The FSRA supervises insurance companies, mortgage brokers, credit unions, pensions and other non-securities areas of the financial services sector. We discuss the objectives of the FSRA, their approach to protecting consumers, enforcement strategies, upcoming regulations, and more. Then, we welcome back Mark McGrath to learn about the Passive Investment Grind (PIG) concept for this week's Mark to Market segment, and we take a look back at a previous episode with Ted Seides of Capital Allocators. Finally, we are joined by author Tim Hale to discuss the new edition of his book Smarter Investing before closing off with our usual after-show roundup. Tune in now! Key Points From This Episode: (0:03:22) The relationship between recessions and stock returns, the definition of a technical recession, and the role of media in shaping perceptions. (0:09:33) Why bad economic conditions don't necessarily warrant changes to investment strategies and why attempts to time the market based on recession news should be avoided. (0:13:42) Introducing Huston Loke and Jordan Solway and background about the Financial Services Regulatory Authority of Ontario (FSRA). (0:15:34) Objectives of the FSRA and the principle of putting the client's interest first. (0:18:55) What aspects of financial advisory services FSRA regard as the most important. (0:20:30) Unpacking the "Take-All-Comers" rule in Ontario and how it protects consumers. (0:25:32) How successful the title protection rule has been in Ontario and how it differentiates between the title of financial advisor and financial planner. (0:29:21) Concerns about the rollout of the title protection rule and the disparity across various designations. (0:33:26) Advice for identifying a suitable financial advisor or planner and how the FSRA is helping cross-check credentials. (0:37:19) FSRA's findings in a review of tiered recruitment model life insurance MGAs and the enforcement action taken. (0:44:47) Insights into commission-based compensation structures for financial products and upcoming commission disclosure rules. (0:49:09) Additional steps consumers can take to avoid bad financial advice and services. (0:50:49) Recommendations for budding financial planners or advisors to ensure they get the correct training. (0:53:23) Discover the infinite banking concept and what future initiatives Huston and Jordan are most excited about. (0:59:35) Mark explains the passive investment grind concept in our Mark to Market segment. (1:09:21) Recapping essential takeaways from a previous episode with Ted Seides. (1:12:02) Tim Hale discusses his book Smarter Investing, his motivation for writing it, his intended audience, and its main takeaways. (1:20:09) How the financial landscape has changed since the first edition of his book and his shift toward systematic investing. (1:25:25) Tim shares what he thinks are the biggest mistakes investors make and behavioural biases that influence investors' decisions. (1:27:58) Final words of wisdom Tim has for listeners and how his approach applies to markets outside of the UK. (1:29:45) Aftershow roundup, listener reviews, book recommendations, and more! Join Our Live Events: Paying it Forward to Yourself: Compensation strategies for Canadian Business Owners - https://us06web.zoom.us/webinar/register/1517000820593/WN_35_OSP3XT9Gabu6KjIT4Tg Investing 101: Financial Literacy Month Webinar - https://us06web.zoom.us/webinar/register/2417000820935/WN_snfu-ZhzQKeB6CZSw1yHuA Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Paying It Forward to Yourself (Webinar) — https://us06web.zoom.us/webinar/register/4416996396442/WN_35_OSP3XT9Gabu6KjIT4Tg Investing 101 (Webinar) — https://us06web.zoom.us/webinar/register/2317000628845/WN_snfu-ZhzQKeB6CZSw1yHuA#/registration 'Should my investment strategy change durin

If you dive deep into financial advisor fixed effects, you'll begin to understand that an advisor's own portfolio has a bigger impact on the portfolios of their clients than the characteristics of the clients themselves. To help us make sense of this and to further explain financial values and the cross-section of returns, we are joined by the influential and notorious Professor of Finance, Juhani Linnainmaa. Our conversation begins with a comprehensive analysis of financial values, including a comparison between the trading patterns of advisors and those of their clients, a disquisition of misguided beliefs, an examination of client characteristics, and the ins and outs of portfolio variation and customizations. Canada recently adopted regulations from the Mutual Fund Dealers Association (MFDA), and we discuss how this has affected the use of financial advice in the country before comparing the benefit of increased equity share to the cost of advice, what hiring a new advisor before a financial crisis may mean for clients, and the role of regulation in the industry. We end with the cross-section of returns by examining accounting-based anomalies pre-1963, how profitability and investment relate to data mining, why a financial firm would switch between growth and value, and finally, Professor Juhani Linnainmaa's definition of success. Key Points From This Episode: (0:00:42) A very warm welcome to the influential Professor of Finance, Juhani Linnainmaa. (0:03:52) Comparing the trading patterns of advisors to those of their clients. (0:08:45) How regulators can go about addressing misguided beliefs. (0:11:08) Client characteristics that advisors base portfolio customizations on. (0:13:22) Whether the variation in a client's portfolio can be explained by their characteristics. (0:14:49) Explaining the remaining variation in portfolios. (0:19:38) Other reasons for the high cost of advising, aside from portfolio customization. (0:22:03) How the adoption of the MFDA affected the use of financial advice in Canada. (0:26:03) Comparing the benefit of increased equity share to the cost of advice. (0:31:45) How getting a new advisor before the financial crisis affects ongoing investments. (0:35:46) The role of regulation. (0:37:47) Getting into the cross-section of returns with accounting-based anomalies pre-'63. (0:40:51) Weather profitability and investment are data-mined factors. (0:44:05) The optimal X-anti mix of factors in a portfolio. (0:46:56) The mechanisms that cause firms to move between growth and value. (0:56:31) Professor Juhani's definition of success. Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Juhani Linnainmaa — http://jlinnainmaa.com/ Juhani Linnainmaa on LinkedIn — https://www.linkedin.com/in/juhani-linnainmaa-832134194/ Juhani Linnainmaa on Facebook — https://www.facebook.com/juhani.linnainmaa/ Tuck School of Business — https://www.tuck.dartmouth.edu/ Kepos Capital — https://www.keposcapital.com/ Chicago Booth School of Business — https://www.chicagobooth.edu/ National Bureau of Economic Research — https://www.nber.org/ UCLA Anderson School of Management — https://www.anderson.ucla.edu/ Aalto University — https://www.aalto.fi/en Mutual Fund Dealers Association — https://mfda.ca/ Michael Roberts on LinkedIn — https://www.linkedin.com/in/prof-michael-r-roberts/

During this episode, Financial Advisor and Associate Portfolio Manager Phil Briggs joins us to discuss the 'cash wedge' financial strategy. He also shares his motivation for joining PWL Capital after kicking off his career in the banking industry. Next, Mark McGrath unpacks the four D's of tax planning and how to implement them in your future planning. We review a much-loved past episode featuring Dr. William Bernstein and unpack the principles taught in Seth Godin's latest book, The Song of Significance. During the aftershow, you'll hear about our recent explorations in the world of infinite banking, Admired Leadership, and more. In closing, we share some of our favourite reviews from guests all over the world and offer a glimpse of what's to come in upcoming conversations. Thanks for listening! Key Points From This Episode: (0:02:19) Phil's introduction to financial services and his decision to join PWL. (0:07:06)The role of the podcast in helping Philip to take the plunge and leave his role at the bank. (0:09:35) What the 'cash wedge' strategy is and how it supports financial planning for retirement. (0:22:41) Stress-testing financial plans using the Monte Carlo simulation. (0:25:10) Mark McGrath joins the show for this episode's Mark-to-Market segment. (0:29:54) Assessing which category RSPs fit into. (0:32:02) Past episode review: episode 108 with Dr. William Bernstein. (0:34:22) Reviewing Seth Godin's book, The Song of Significance. (0:29:11) Seth's principles on the road to significance. (0:39:53) The aftershow: infinite banking, Admired Leadership, and more. (0:42:43) Reviews from Canada, Australia, San Francisco, and beyond. (0:47:44) A teaser for two upcoming episodes. Books From Today's Episode: The Song of Significance — https://www.amazon.com/Song-Significance-New-Manifesto-Teams/dp/0593715543 The Four Pillars of Investing — https://www.amazon.com/Four-Pillars-Investing-Second-Portfolio/dp/1264715919/ The Wealthy Barber — https://www.amazon.com/Wealthy-Barber-Updated-3rd-Commonsense/dp/0761513116 Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Philip Briggs on LinkedIn — https://www.linkedin.com/in/phillip-briggs-cfp%C2%AE-cim%C2%AE-362436125/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ 'Sustainable Withdrawal Rates from Retirement Portfolios' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1969021 Megan McCoy on LinkedIn — https://www.linkedin.com/in/megan-mccoy-phd/ Episode 108 — https://rationalreminder.ca/podcast/108 Episode 226 — https://rationalreminder.ca/podcast/226 Episode 217 — https://rationalreminder.ca/podcast/217