In this episode, we welcome back James Choi, Professor of Finance at the Yale School of Management, to unpack one of the most important—and misunderstood—questions in personal finance: How much of your portfolio should be in stocks? Drawing on his new paper, Practical Finance: An Approximate Solution to Lifecycle Portfolio Choice, James walks us through the classic portfolio choice problem first solved by Robert C. Merton, later extended by Francisco Gomes and co-authors, and now made dramatically more usable through a spreadsheet-based approximation. We explore how risk aversion, wealth, labor income risk, and expected returns shape optimal asset allocation, why simple rules like "100 minus your age" aren't terrible but still costly, and how James and his co-authors managed to approximate a complex dynamic optimization model with an error of less than 0.1% in lifetime welfare.   Key Points From This Episode: (0:04) Introduction and why this episode delivers on "mathy roots." (1:10) James Choi's new paper: Making lifecycle portfolio choice solvable in a spreadsheet. (5:15) The portfolio choice problem: How much should you allocate to stocks versus risk-free assets? (6:09) The classic Merton (1969, 1971) solution and the "Merton share." (8:00) The equity premium formula: Expected excess return ÷ (risk aversion × variance). (11:20) Extending the model to risky labor income (Cocco, Gomes, and Maenhout). (14:27) Why labor income behaves bond-like—even when it's risky. (16:33) How wealth, risk aversion, and labor income characteristics affect optimal equity allocation. (20:52) Transitory vs. permanent labor income risk—and why permanent risk matters more. (23:04) Solving thousands of parameter sets to approximate optimal lifecycle allocations. (27:09) How close is the approximation? ~3–4 percentage points on average, with (29:56) Comparing to rules of thumb: 100 minus age and 60/40. (32:08) Why 0% equities is often far worse than 100% equities. (33:33) What the optimal allocation typically looks like over the life cycle. (38:55) Walking through the publicly available Google Sheet to calculate your allocation. (44:39) Estimating your risk aversion using a coin-flip thought experiment. (46:08) Forecasting future labor income and using wage imputation. (48:05) Why housing is excluded—and why it's so hard to model. (50:35) How often you should update your assumptions (hint: not often). (53:06) Leverage, constant leverage ETFs, and why young investors might rationally use them. (58:55) Discussing lifecycle advice from Scott Cederburg and co-authors. (1:07:40) What practical finance problem James wants to tackle next (hint: the 4% rule and retirement spending). 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 on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this episode, we sit down with Tom Hardin, also known as "Tipper X," the former hedge fund analyst who became one of the most prolific informants in the largest insider trading crackdown in U.S. history. Tom walks us through his journey from rule-following soccer referee in Georgia to Ivy League graduate and rising Wall Street analyst—before crossing the line into insider trading at age 29. What makes this conversation so compelling is not just the crime, but how ordinary it felt at the time. Tom explains how small rationalizations, cultural pressures, ambition, and the normalization of questionable behavior gradually eroded his ethical boundaries. After being arrested and recruited by the FBI, he wore a wire 48 times and helped build over 20 cases in Operation Perfect Hedge, exposing widespread misconduct across the hedge fund industry. We explore the psychology of ethical failure, the "fraud triangle," moral licensing, and the difference between ethics in the classroom and ethics in the real world. Tom also reflects on redemption, forgiveness, mentorship, and how he now defines success after losing his finance career.   Key Points From This Episode: (0:04) Introduction to Tom Hardin, former hedge fund analyst turned FBI informant. (5:15) Tom's conviction: One count of securities fraud and one count of conspiracy after four illegal trades netting $46,000. (6:11) Early life as a rule-following soccer referee and how ambition shaped his identity. (8:07) The hedge fund world as a meritocracy—high pressure, high stakes, and performance-driven culture. (9:13) How insider trading networks operated openly in certain hedge fund circles. (12:21) The legal definition of insider trading: material non-public information and breach of fiduciary duty. (15:25) How difficult it is to consistently generate returns without some form of edge. (16:26) The first insider tip—and the rationalizations that followed. (19:03) The "fraud triangle": pressure, opportunity, and rationalization. (22:16) Placing the first illegal trade—and feeling almost nothing. (24:39) Peer validation and the normalization of wrongdoing. (28:38) The 6:30 a.m. arrest and being approached by the FBI. (31:43) Deciding to cooperate—and becoming "Tipper X." (36:24) Learning to wear a wire and extract incriminating statements over multiple meetings. (38:26) Inside Operation Perfect Hedge: 81 individuals charged, 32 cooperators. (39:28) The chilling effect on hedge funds and the possible decline of illicit "edge." (42:12) Being publicly unmasked as Tipper X and the personal cost to his family. (44:02) Why ethical failures are incremental—not sudden transformations. (45:11) The gap between academic ethics and real-world psychological pressure. (46:57) The role mentorship could have played—and how culture shapes behavior. (50:29) Tom's view on hedge funds for retail investors: high fees, limited liquidity, and questionable value. (52:04) Ethical drift, rationalization, and warning signs to watch for. (52:35) Redemption: Owning mistakes fully and learning to forgive yourself. (55:02) Redefining success—relationships, honesty, and meaningful contribution.   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 on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Dan Bortolotti — https://pwlcapital.com/our-team/ Dan Bortolotti on LinkedIn — dan-bortolotti-8a482310  Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this episode, we welcome back return guest Hank Bessembinder for a deeply analytical conversation spanning leveraged ETFs, volatility, and the future of performance measurement. Hank walks us through his latest research on leveraged single-stock ETFs, clarifying the misunderstood concept of "volatility decay" and decomposing returns into rebalancing effects and frictions. The results are striking: meaningful underperformance relative to simple levered benchmarks, driven by both embedded costs and the mechanics of daily resets. In the second half, we shift gears to a more foundational question: What is a return, really? Hank challenges the dominance of arithmetic averages and even geometric means, arguing that neither truly captures the long-term investor experience. He introduces the concept of the sustainable return—a measure based on the cash flows an investment can support without depleting capital—and outlines how it could reshape academic finance and real-world financial planning. Key Points From This Episode:   (0:01:03) Welcome back to Hank Bessembinder and overview of his recent research. (0:06:16) What "volatility decay" really means—and why the term may be misleading. (0:09:16) Why volatility does not necessarily reduce mean returns in constant leverage ETFs. (0:10:11) Ex-ante decision-making and the wedge between mean and median outcomes. (0:11:26) Single-stock vs. index leveraged ETFs: Similar mechanics, different magnitudes. (0:12:52) Why past research has been so cautionary about long-term use of leveraged ETFs. (0:15:53) How rebalancing costs differ for long and short leveraged products. (0:16:57) The benchmark: Levered buy-and-hold versus constant daily rebalancing. (0:19:46) Empirical results: Long funds underperform by ~0.8% per month; short funds by ~1% per month. (0:21:10) Decomposing underperformance into rebalancing effects and frictions. (0:24:15) The real (though rare) possibility of returns below –100% in leveraged products. (0:27:04) Simulation results over 50 years: Skewness, negative medians, and rebalancing drag. (0:28:38) Why volatility tends to coincide with reversals—and why reversals drive rebalancing costs. (0:31:15) Practical guidance: Who, if anyone, should use leveraged single-stock ETFs. (0:34:58) The limitations of arithmetic means and single-period models. (0:36:55) Why aggregate investors are not buy-and-hold investors. (0:39:17) The shortcomings of arithmetic averages, alphas, and Sharpe ratios for long-horizon measurement. (0:42:38) Why log returns don't solve the core measurement problems. (0:44:56) The case for dollar-weighted returns and the limitations of IRRs. (0:48:18) Modified IRRs and their role in capturing aggregate investor outcomes. (0:50:14) Introducing the sustainable return: Measuring what can be withdrawn without depleting capital. (0:53:22) Expected sustainable return and its close relationship to the geometric mean. (0:56:09) Proportional sustainable return and withdrawal-based performance measurement. (1:00:00) Individual stock returns through the lens of sustainable returns. (1:00:53) Nudging academic finance beyond the "econometric streetlight." 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 on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this episode of the Rational Reminder Podcast, we are joined by Theresa Ebden, Vice President of the Investor Office at the Ontario Securities Commission, for a deep dive into how regulators are thinking about modern investor risks—from AI-powered scams to finfluencers and the gamification of investing apps. Theresa explains how the OSC works to protect investors through policy, education, behavioral research, and direct engagement with the public, and why investor education is one of the most powerful tools regulators have. Key Points From This Episode: (0:01:55) Overview of the OSC and why its investor research and education work matters. (5:42) What the Ontario Securities Commission does and its mandate to protect investors and capital markets. (6:25) Inside the OSC Investor Office: policy, education and outreach, and the investor contact centre. (9:28) How the Investor Office identifies priority issues using inquiry data, behavioral insights, and global collaboration. (12:11) The nature of investor inquiries: fraud, crypto confusion, complaints, and recovery room scams. (14:01) How contact-centre data feeds into education, outreach, and policy responses. (16:07) Overview of GetSmarterAboutMoney.ca and its role in investor education. (20:43) Major retail investor risks today: AI-enhanced scams, finfluencers, dark patterns, and gamification. (24:43) What to do if you're impersonated by AI in scam advertisements. (29:28) What a "finfluencer" is and the different categories they fall into. (31:01) Research findings on how strongly finfluencers influence investor decisions. (32:55) Why non-investors are especially vulnerable to finfluencer advice and social-media scams. (36:11) How investors can evaluate online financial advice and check credentials. (38:02) Regulatory challenges in overseeing finfluencers and online financial content. (41:04) How AI magnifies traditional scams and why AI-enhanced fraud is more effective. (43:42) Mitigation strategies: education, just-in-time warnings, and system-level tools. (47:25) Relationship investment scams and why they are especially damaging. (52:53) Research on gamification in investing apps and its effects on investor behavior. (55:25) The Get Smarter About Trading simulator and how it demonstrates gamification effects. (57:19) How gamification can be used positively to improve diversification and outcomes. (58:16) Theresa's perspective on success and her focus on improving the individual investor experience. 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 on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Dan Bortolotti — https://pwlcapital.com/our-team/ Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310 Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

Ben Felix and Braden Warwick are joined by Dr. Charles Chaffin, a leading voice in financial psychology, to explore why investors so often act against their own best interests—and how better tools and frameworks can help bridge the gap between rational plans and real human behavior. The conversation blends behavioral finance, goal setting, and risk profiling, while also introducing a new evidence-based risk tolerance questionnaire now being made publicly available to listeners. The episode digs into why humans are wired for short-term survival rather than long-term optimization, how biases and environment shape financial decisions, and why coaching—not transactions—is becoming the advisor's most important role. Charles explains concepts like money scripts, financial flashpoints, identity-based goals, and financial self-efficacy, tying them directly to investing behavior and client outcomes. The discussion also goes deep on financial risk tolerance: what it really is, why people consistently misjudge it, and why psychometric tools outperform traditional questionnaires. Key Points From This Episode:   (0:00:00) Introduction to Episode 395 and guest Dr. Charles Chaffin (0:01:15) Charles' background in financial planning psychology and authorship (0:02:30) Why PWL wanted to move beyond the Grable–Lytton Risk Tolerance Scale (0:03:40) Introduction to the Money and Risk Inventory (MRI) and full disclosure (0:04:55) Announcement: Public access to a psychometric risk tolerance questionnaire (0:05:10) Risk tolerance vs. risk capacity—and how PWL combines both (0:06:43) Why firms must map risk scores to asset allocations themselves (0:08:35) The role of psychology in financial planning beyond technical advice (0:10:17) The Klontz–Chaffin model of financial psychology (0:12:05) Why humans are "bad with money": survival brains and emotions (0:13:30) How heuristics and biases derail long-term planning (0:15:42) Tools for overcoming bias: automation, pre-commitment, and friction (0:21:29) How environment and social context shape financial behavior (0:26:38) Financial flashpoints and their lasting impact on risk tolerance (0:29:35) Financial self-efficacy and why low confidence leads to avoidance (0:36:01) Money scripts: avoidant, worship, status, and vigilant (0:40:07) Why understanding your own money scripts matters (0:41:19) Common behaviors that lead to poor financial outcomes (0:42:59) Practical strategies for recognizing and mitigating bad behaviors (0:48:22) The role of identity in goal setting (0:50:07) Why goals matter for motivation and behavior alignment (0:52:56) Intrinsic vs. extrinsic goals and self-determination theory (0:58:26) When quitting a goal is the right decision (1:00:26) What financial risk tolerance really is (1:02:16) Why people consistently misjudge their own risk tolerance (1:03:31) How stable risk tolerance is over time—and what changes it (1:05:12) Why reassessing risk tolerance regularly improves outcomes (1:06:05) Handling couples with mismatched risk profiles (1:07:37) Psychometric vs. revealed-preference risk questionnaires (1:09:30) Evidence showing psychometric tools better explain real risk-taking (1:10:39) Where traditional risk tolerance questionnaires fall short Links From Today's Episode: PWL Risk Profile Tool — https://research-tools.pwlcapital.com/research/risk-profile 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 on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

Equal-weighted index funds sound like an elegant solution to some of today's biggest investor anxieties: high market concentration, elevated valuations, and outsized influence from a handful of mega-cap stocks. In this episode of the Rational Reminder Podcast, Ben Felix, Dan Bortolotti, and Ben Wilson take a deep, evidence-based look at whether equal weighting actually improves portfolios—or simply introduces new risks under a different name. The discussion breaks down how equal-weighted indices differ fundamentally from traditional market-cap-weighted indexes, why equal weighting has historically outperformed in certain periods, and what's really driving those results beneath the surface. The team explains how equal weighting tilts portfolios toward smaller, cheaper, and more volatile stocks, while also systematically trading against momentum due to frequent rebalancing. Key Points From This Episode:   (0:01:10) Introduction to Episode 394 and discussion about declining enthusiasm over long podcast runs. (0:02:00) PWL Capital's growing work with institutional clients and why index-based approaches are rare in that space. (0:05:12) Episode topic introduced: equal-weighted index funds and why listeners keep asking about them. (0:06:00) Definition of market-cap-weighted vs. equal-weighted indexes using the S&P 500 as the main example. (0:07:14) Historical outperformance of equal-weighted S&P 500 indexes and why start dates matter. (0:09:00) Equal weight vs. cap weight performance over the last decade: meaningful recent underperformance. (0:10:21) Market concentration concerns and why equal weighting appears attractive during periods of high valuations. (0:12:00) Why market-cap-weighted indexes do not mechanically buy more overvalued stocks as prices rise. (0:16:14) Trading costs explained: explicit vs. implicit costs and why turnover matters more than TER. (0:19:16) Capital gains, tax efficiency, and reporting differences between Canadian and U.S. funds. (0:21:07) Market concentration historically shows little relationship with future returns. (0:24:58) Volatility comparison: equal-weighted indexes are meaningfully more volatile due to small-cap exposure. (0:25:12) Equal weighting increases exposure to small-cap, value, and high-volatility stocks. (0:28:58) Sector distortions created by equal weighting and why this represents uncompensated risk. (0:31:21) Unintended consequences: sector bets, security-level overweights, and forced rebalancing. (0:32:30) Turnover is roughly 10× higher in equal-weighted funds than cap-weighted equivalents. (0:33:15) Equal weighting behaves as a systematic anti-momentum strategy. (0:34:02) Multi-factor regression results: positive size and value exposure, negative momentum loading. (0:36:33) Rebalancing frequency trade-offs and how quarterly rebalancing amplifies momentum drag. (0:42:21) Comparison with alternative approaches that target similar factor exposures more efficiently. (0:44:47) Why backtests are seductive—and why live fund results matter more. (0:47:40) Investor behavior, uncertainty, and the constant search for strategies that "fix" the market. (0:48:41) Factor investing in disguise: most deviations from cap-weighting are just factor tilts. (0:53:06) Equal weighting as an acceptable strategy—if investors understand and accept the trade-offs. (0:57:18) Listener feedback, enthusiasm jokes, and discussion about Spotify video uploads and audio speed. 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 on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Dan Bortolotti — https://pwlcapital.com/our-team/ Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310 Ben Wilson on LinkedIn — https://www.linkedin.com/in/ben-wilson/ Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

What if financial planning were approached the same way engineers design aircraft, medical treatments, or complex systems—with clearly defined objectives, constraints, and rigorous trade-off analysis? In this episode, Benjamin Felix is joined by Braden Warwick for a deep dive into what it means to engineer financial outcomes. Drawing on Braden's background as a PhD-trained mechanical engineer and his work building financial planning software at PWL Capital, the conversation reframes financial planning as a design problem rather than a speculative exercise. They explore the critical distinction between a financial plan and a financial projection, why uncertainty does not invalidate good planning, and how professional communication under uncertainty can build trust with clients—especially those from technical backgrounds. The discussion highlights the importance of goals-based planning, sensitivity analysis, and explicitly quantifying trade-offs when clients have multiple competing objectives. Key Points From This Episode: (0:00:04) Introduction to Episode 393 and the return of Braden Warwick (0:02:50) Braden's role at PWL and his experience deploying Conquest Planning software (0:05:46) The tension between low industry entry barriers and professional standards in financial planning (0:07:54) Braden's background in mechanical engineering and academia 0:09:33) Financial plans vs. financial projections: why uncertainty doesn't make a plan "wrong" (0:12:59) Lessons from medicine and engineering on communicating decisions under uncertainty (0:15:15) An engineering framework for financial planning: objectives first, then solutions (0:18:42) Why surface-level goals like "minimize tax" or "maximize returns" often miss what really matters (0:21:19) Evaluating plans against goals using projections, scenario analysis, and sensitivity analysis (0:24:28) Why sensitivity analysis helps planners focus on what actually drives outcomes (0:29:27) Handling multiple competing goals using trade-off analysis and Pareto frontiers (0:36:46) Practical ways planners can present trade-offs without complex math (0:39:25) Case study setup: professional financial planning with corporate clients (0:40:20) Salary vs. dividends for business owners when optimizing for legacy goals (0:44:26) Why financial planning software outputs can be misleading without context (0:48:23) The importance of understanding how planning software calculates key metrics (0:50:22) Using PWL's free retirement tool to analyze CPP and OAS timing decisions (0:53:44) Approximating Monte Carlo outcomes using standard error of the mean (0:56:16) Linking "bad" and "terrible" outcomes to plan success probabilities (0:58:44) How CPP and OAS deferral affects sustainable spending and downside protection (1:02:46) What makes PWL's CPP calculator different from typical break-even tools (1:05:15) Why wage inflation assumptions materially affect CPP deferral decisions (1:07:46) Closing framework: goals, constraints, sensitivity analysis, and quantified trade-offs (1:09:36) Financial planning as an emerging discipline rooted in engineering-style thinking Links From Today's Episode: Live Webinar: How Much Do You Need to Retire in Canada? | Feb 12 @ 12NN EST | Register here — https://pages.pwlcapital.com/webinar-how-much-do-you-need-to-retire-in-canada?utm_source=rational%20reminder&utm_medium=rr_ep393&utm_campaign=webinar_retirement 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 on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

ETFs were once almost synonymous with low-cost, sensible investing. But that era is changing fast. In this episode, Ben Felix, Dan Bortolotti, and Ben Wilson introduce and unpack the concept of "ETF slop"—the explosion of complex, high-fee, behaviorally engineered ETFs that are designed to attract assets rather than improve investor outcomes. The trio traces how ETFs evolved from simple index-building tools into wrappers for increasingly speculative strategies. They discuss how the ETF "halo effect" can mislead investors into equating structure with quality, and why innovation in financial products often benefits manufacturers more than end investors. From thematic hype to downside "protection" that isn't what it seems, the episode offers a clear framework for thinking critically about modern ETF offerings. Key Points From This Episode: (0:00:04) Introduction to the Rational Reminder Podcast and the hosts. (0:00:39) Ben introduces the idea of "ETF slop" and why ETFs are no longer synonymous with sensible investing. (2:20) More actively managed ETFs now exist than index-tracking ETFs in the U.S. (3:30) ETFs increasingly engineered to attract assets rather than improve investor outcomes. (4:04) Record ETF launches in 2025: over 1,000 in the U.S. and 300+ in Canada. (6:43) Average management fees on newly launched ETFs rival traditional active mutual funds. (7:47) The ETF "halo effect" and why structure is mistaken for quality. (10:31) What an ETF actually is—and why it's just a wrapper for a strategy. (11:13) The first ETF was launched in Canada and still exists today. (14:40) ETFs as tools for speculation versus long-term investing. (17:08) Evidence that simpler allocation funds reduce harmful investor behavior. (20:35) Why too much product choice can make good investing harder. (21:40) Four categories of ETF slop introduced: thematic, buffer, covered call, and single-stock ETFs. (22:16) Why thematic ETFs appeal to optimism and extrapolation bias. (24:04) Evidence that most thematic ETFs underperform after launch. (26:25) Morningstar data: almost no thematic ETFs outperform over long horizons. (28:55) Why exciting narratives don't translate into superior returns. (31:25) Buffer ETFs explained: capped upside with partial downside protection. (34:31) Research showing high fees, high costs, and inconsistent protection. (38:16) Why simple stock/bond mixes dominate buffer ETFs even in drawdowns. (42:53) Covered calls: high income today, lower total returns tomorrow. (45:48) Why covered call ETFs systematically underperform their underlying assets. (47:38) Income needs can be met more efficiently without covered calls. (48:19) The cult-like following driven by double-digit yield marketing. (49:57) Single-stock ETFs as the "sloppiest" form of ETF slop. (53:44) Leveraged and inverse ETFs magnify volatility and complexity. (56:20) Research showing massive underperformance versus simple benchmarks. (58:56) Why these products resemble speculation more than investing. (1:03:35) Complexity in investment products is strongly linked to poor outcomes. (1:05:48) John Bogle's warning: beware of new and "hot" investment products. (1:06:48) Why ETFs are powerful tools—but only when used correctly. 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 on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Ben Wilson on LinkedIn — https://www.linkedin.com/in/ben-wilson/ Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

Financial planning is built on assumptions — about markets, inflation, longevity, human behaviour, and even the questions clients bring into the room. In this episode, Ben and Braden welcome a diverse panel that originally came together at the FP Canada Conference to explore how those assumptions influence planning outcomes in practice. Joining them are Adam Chapman, a retirement-focused planner who helps clients turn their money into memories; Joe Nunes, an actuary with decades of pension and longevity experience; and Aaron Theilade, Director of Continuing Education at FP Canada. Together, the panel unpacks how to make assumptions credible, how to stress-test them, how to navigate client bias, and how planners can blend math with humanity to create better client outcomes. Key Points From This Episode: (0:00:04) Why this episode: recreating a conference panel on planning assumptions. (0:01:03) Braden on the panel's value for planners and DIY investors. (0:02:32) Meet the guests: Adam, Joe, Aaron, and Braden. (0:06:04) Assumptions matter: directional accuracy > prediction. (0:07:47) Actuarial view: start with inflation, bond yields, and risk capacity. (0:09:38) Engineering mindset: plan for expected and unexpected outcomes. (0:13:21) Client pushback: longevity surprises and hidden assumptions. (0:16:59) Asset allocation: strategic, goal-based, informed by behaviour. (0:20:57) Software limits: life is too variable for perfect modeling. (0:22:01) Behaviour gap: retirees spend less over time despite inflation. (0:25:18) Software guides; planners interpret and humanize outputs. (0:28:48) Use assumptions based on the specific question (e.g., withdrawals). (0:30:31) Always ask: "Why are we modeling this?" (0:34:15) Handling bias: reframe assumptions to reveal inconsistencies. (0:38:19) Assumptions evolve: returns, spending, and research all change. (0:42:38) Longevity beliefs: explore "why," not just the data. (0:50:38) Core truth: every plan is wrong — planning is iterative. (0:52:20) When to update: depends on age, goals, and material changes. (0:57:23) PWL approach: twice-yearly updates + adjustments during extremes. (1:00:03) Tips: focus on behaviour, communication, goals, and integration. (1:10:02) Success: relationships, impact, freedom, and sharing knowledge. 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 on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this first episode of 2026, we sit down for a deep dive into one of the hottest concerns coming from clients and listeners lately: Is the U.S. stock market dangerously concentrated—and are we in an AI bubble? Ben, Dan, and Ben unpack the data, the history, and the psychology behind today's valuations, drawing lessons from past episodes of market euphoria such as Nortel in Canada, the dot-com boom, and Japan's 1989 peak. They explain why high market valuations—not concentration—pose the bigger challenge, how bubbles historically fuel real economic innovation while hurting investors, and why diversification continues to offer the only reliable protection against unknowable futures. Along the way, they revisit examples of how value stocks, small-cap value, and global diversification have fared across different market regimes.   Key Points From This Episode: (0:00:40) What RR is about: evidence-based insights, synthesis episodes, expert interviews, and long-form inquiry — not debates. (0:04:20) Why listeners value RR: transparency, friendly inquiry, returning to topics over time, and the hosts' dynamic. (0:09:25) Rising concern: clients asking whether U.S. market concentration and an AI bubble mean it's time to exit stocks. (0:11:10) Advisors echo similar worries: U.S. politics, all-time highs, and emotional decision-making. (0:14:20) Today's data point: Top seven U.S. stocks = 36% of S&P 500; 32% of the total U.S. market — highest on record. (0:16:10) Why people fear concentration: a decline in the Magnificent Seven could meaningfully drag down the index. (0:17:30) Canada's cautionary tale: Nortel once hit 36% of the TSX — collapsed to zero — but the market recovered by 2005. (0:21:20) Bubbles through history: canals, railways, fiber optics, dot-coms — innovation funded by speculation. (0:25:30) Dot-com parallels: huge ideas, low cost of capital, lots of failures — but lasting infrastructure remained. (0:28:40) AI dominance: Since ChatGPT, AI-linked companies drove 75% of S&P returns, 80% of earnings growth, 90% of capex. (0:31:15) Reminder: No bubble calls — just context. High prices don't equal an inevitable crash. (0:33:10) Concentration vs. valuation: concentration shows weak links to future returns; valuations matter far more. (0:35:05) Market timing trap: U.S. valuations were high in 2021 — selling then would have been disastrous. (0:36:40) The U.S. lost decade: 2000–2010 returns were flat; in CAD, recovery didn't happen until 2013. (0:38:55) Value stocks held up: U.S. value and small-cap value delivered positive returns while broad indexes stagnated. (0:41:00) Recency bias reminder: Canadians once avoided U.S. stocks entirely after a decade of underperformance. (0:44:05) Japan 1989: World's largest market crashes — still not recovered in real terms 36 years later. (0:47:10) Global diversification wins: A 40% Japan-weighted global portfolio still performed fine thanks to U.S. growth. (0:49:00) Cross-country data: Many markets are far more concentrated than the U.S. — still delivered solid returns. (0:52:30) Valuation evidence: Higher CAPE = lower future returns — economically strong pattern across countries. (0:55:40) Core lesson: Diversification + discipline. You will always hold winners and losers — that's the point. (0:57:55) Practical ways to lower concentration risk: global equity funds, small caps, and Canada's 10% cap rule. (1:00:30) Why active managers don't help: only ~30–47% outperform depending on concentration trend. (1:03:25) Final takeaway: high valuations may imply lower returns, but prediction is impossible — stay diversified. (1:05:15) After-show review: Addressing a one-star critique ("Fartcoin Designer") with humour and community context. 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 on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this special year-end episode, Ben and Cameron turn the spotlight inward for a behind-the-scenes look at the Rational Reminder podcast. They're joined by the extended team that keeps the show running—from compliance to editing to marketing—to reflect on a landmark year in the podcast's evolution. We hear from Multimedia Specialist Matt Gambino, Compliance Reviewer Ross Brayton, long-time Marketing Lead Angelica Montagano, and others who share their roles, personal stories, and what the show means to them. Ben and Cameron also discuss the podcast's growth trajectory, the impact of joining OneDigital, standout market events from 2025, and what's ahead for 2026. It's a thoughtful, personal, and often funny conversation that celebrates community, nerdiness, and meaningful work.   Key Points From This Episode: (0:01:00) Behind the scenes: Why the entire Rational Reminder team joined the mic for this special episode. (0:01:40) Meet the production crew: From video editing to compliance and marketing. (0:02:54) From 767 to 334,000: How the podcast grew since August 2018. (0:04:40) YouTube's rising role: Now 33% of all podcast consumption. (0:07:24) AMA evolution: How listener Q&As became a regular series in 2025. (0:08:45) Bringing in PWL advisors: Sharing real-world financial planning experience on the pod. (0:10:05) 12,500 members: Rational Reminder Community continues to thrive. (0:11:30) OneDigital acquisition reflections—one year later, no pressure to cut costs or change values. (0:14:23) Compliance-free growth: Maintaining service levels while scaling the firm. (0:15:06) Market surprise of 2025: Canadian small caps up 35%+ year-to-date. (0:16:55) Real estate rewind: National average home prices down 20% since 2022 peak. (0:19:24) Rent declines too: Down 7% YoY in Toronto, 4.4% in Vancouver. (0:20:39) Looking back: A wild year of unexpected returns and market resilience. (0:21:00) A different kind of year-end episode: No highlight reel—just team storytelling. (0:23:53) [Matt Gambino] The editor speaks: Role evolution, creative direction, and 200+ episodes later. (0:28:42) YouTube growth: From 11,000 to 46,000 subs under Matt's watch. (0:32:55) Matt on money: What 4 years editing the pod taught him about finance and happiness. (0:36:54) Defining success: Matt's answer after years of listening to the show. (38:40) [Ross Brayton] Compliance from the inside: What Ross listens for, and why disclaimers got longer. (0:43:05) Ross on investing: From Warren Buffett books to podcast fact-checker. (0:46:11) Planning life after financial independence: Ross poses a thoughtful challenge. (0:47:41) [Angelica Montagano] The original marketer: How the podcast started in a hallway. (0:50:14) Early tech struggles: Mono recordings, brick recorders, and lots of duct tape. (0:51:53) COVID's silver lining: Why lockdowns accelerated the pod's evolution. (0:54:20) Launching the RR Community: From 100-member goal to 12,500+ and counting. (0:55:49) Podcast = Brand: How RR became central to PWL's identity and communication. (0:57:26) What's next: Angelica's dreams for live events and even a coffee table book. (0:59:10) Angelica on investing: From ex-banker cynicism to believer in behavior and psychology. (1:00:38) Favorite moment: Hearing real stories of how listeners' lives have been changed. (1:01:36) Defining success: Impact, confidence, and financial empowerment.   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 on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

In this special year-end AMA, the full PWL crew — Ben Felix, Cameron Passmore, Ben Wilson, and Dan Bortolotti — sit down together for the first time on the podcast to reflect on the roller-coaster that was 2025 and to tackle a wide range of thoughtful listener questions. The episode begins with reflections on a year that included wild market swings, an extraordinary rally few predicted, major changes within PWL, and personal milestones. From there, the team dives deep into the psychology of staying invested, the real risks of inexperienced investors going 100% equities, the complexity of asset location and pre-tax vs. after-tax allocation, and how to talk to family members who are paying too much in investment fees.   Key Points From This Episode: (0:04) Introduction — first-ever full-team recording and setup for the year-end AMA. (1:12) Why not all AMA questions could be answered — over 400 submissions and many not suited to the format. (1:48) 2024 market recap — from early-year panic to strong double-digit global equity returns. (3:59) The speed of recoveries — why missing a quick rebound can permanently derail returns. (5:34) Cameron's lessons from 2024 — unpredictability, growing adoption of evidence-based investing, joining a bigger organization, and driverless-car optimism. (7:41) Ben Wilson becomes a co-host — an unplanned evolution shaped by listener feedback. (9:51) Dan on humility in forecasting and reconnecting with theoretical research. (11:18) Ben's personal year — firm acquisition, equity value jump, and navigating his cancer diagnosis. (12:32) Talking to parents about high fees — emotional dynamics, non-confrontational questions, and the danger of implied judgment. (23:01) Should beginners hold 100% equities? Behavioral risk, volatility blindness, and why it shouldn't be the default allocation. (30:35) Pre-tax vs. after-tax asset allocation — why RRSP dollars aren't equal to TFSA dollars and how that changes true risk exposure. (36:09) Why PWL rarely optimizes asset location — complexity, low payoff, and behavioral clarity. (44:42) What PWL does (and doesn't) offer — discretionary management, integrated planning, outside specialists, and tax deductibility rules. (49:04) "I know I need index funds — but how do I actually buy them?" Robo-advisors vs. one-ticket ETFs and why placing a trade is the real barrier. (57:47) Ben's lessons as a new homeowner — maintenance costs far above expectations and the hidden burden of being your own contractor. (1:01:54) The strangest portfolios — single-stock windfalls, leverage without client awareness, bullion-only strategies, and the infamous "meatloaf portfolio." 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 on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Ben Wilson on LinkedIn — https://www.linkedin.com/in/ben-wilson/   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this episode, the team digs into the newly updated 2025 edition of The Wealthy Barber — Dave Chilton's iconic Canadian personal finance book that helped shape millions of financial journeys. Ben, Dan, and Ben walk through the biggest lessons Dave has reworked for a world of high housing costs, social-media-fueled spending pressure, new tax-sheltered accounts, and the ever-present noise of investing advice. This discussion explores why the book remains so effective: it blends timeless principles with approachable storytelling, humor, and deeply practical guidance. The conversation also highlights Dave's real-world insights from reviewing thousands of personal financial situations across Canada. You'll hear how the book explains foundational habits like paying yourself first, why simple investing beats stock picking, how renters can build wealth, and why understanding your own spending is the key to unlocking both financial progress and happiness. Whether you're brand new to money or a seasoned investor, the updated lessons hit harder in 2025 than ever before.   Key Points From This Episode: (0:04) Introduction — recording early and setting up a deep dive into the updated Wealthy Barber. (0:53) Why the new 2025 edition lands so well: humor, modern references, and timeless lessons. (1:30) Dave Chilton's real-world insight from reviewing thousands of Canadians' financial situations. (2:23) Why the storytelling works — characters, humor, and accessible teaching. (3:45) Inside the narrative: Roy the barber, Matt, Maddie, Jess, Kyle, and the barbershop regulars. (7:53) Lesson 1: "You can do this" — personal finance isn't about math, it's about simple principles. (12:08) Lesson 2: Save 10% and pay yourself first — habit beats theory, compounding does the rest. (14:29) Why saving is hard today: algorithms, FOMO, lifestyle creep, and rising costs. (16:57) The behavioral case for saving early, even if economists say otherwise. (18:52) Lesson 3: Be an owner, not a loaner — stocks vs. bonds and the engine of human ingenuity. (22:49) The investor's paradox — the less you think you know, the better you invest. (24:05) Why indexing wins: skewed stock returns and the impossibility of picking winners. (27:49) How investing has changed since 1989 — indexing is now widely accessible. (28:18) "The world feels scary today…" — the 1847 quote showing it always feels that way. (34:03) RRSP vs. TFSA — identical outcomes at equal tax rates, and why RRSPs shine when taxed lower later. (39:12) Debunking the RRSP "tax bomb" — why high earners still benefit most. (42:06) Lesson 4: Housing — the four levers to buy today (cheaper homes, (46:34) Why today's young buyers need new strategies, not 1980s nostalgia. (48:02) Longer amortizations: counterintuitive but often financially sound. (49:05) Leverage vs. psychology — why borrowing to invest feels scary even when the math matches. (52:36) Renting isn't throwing money away — disciplined renters can match homeowner wealth. (53:51) The hidden costs of owning — repairs, trees, chimneys, and constant surprises. (55:44) The Canadian stigma around renting — and why it's undeserved. (56:42) Lesson 5: Spending — "faulty brain wiring," social pressure, and unconscious habits. (1:00:46) The multi-month spending summary — tedious but life-changing for both finances and happiness. (1:02:43) Joy units per dollar — reallocating spending to maximize happiness. (1:03:47) Practical rules: delay big purchases, beware car costs, indulge selectively, and remember "$1 saved = $2 earned."   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 on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Ben Wilson on LinkedIn — https://www.linkedin.com/in/ben-wilson/ Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

What happens when alternative investments shift from niche products to the industry's go-to value proposition? In this episode, we're joined by financial planner and self-described "pathological nerd" Aravind Sithamparapillai for a rigorous exploration of private markets, product due diligence, advisor incentives, and the narratives driving the surging popularity of alts. Aravind has become known in advisor circles for asking the uncomfortable questions at conferences—the ones that expose gaps in explanations, shaky assumptions, and in some cases, outright contradictions. In this conversation, he shares the stories and analytical frameworks behind his deep dives into mortgage funds, private credit, private real estate, IRR-based marketing, vintage stacking, stale pricing, operational risk, and why even large professional allocators get burned. We explore how advisors are selling alts, how funds are pitching them, what due diligence actually requires, how expected returns can be decomposed, and why illiquidity and "low correlation" benefits rarely play out in practice. Aravind also explains how some funds maintain stable NAVs through "extend and pretend," how gating works, why audited financials aren't a safety blanket, and why even top-tier firms miss red flags. Key Points From This Episode: (0:00:38) Aravind's introduction and reputation for deep, "pathological" research (0:02:23) Why alts have become embedded in Toronto's planning culture (0:03:38) Client pressure, advisor FOMO, and the belief that 60/40 is "broken" (0:05:31) Aravind's personal path into indexing, factors, and Dimensional (0:10:46) Why he started digging into alts: curiosity, client conversations, and advisor narratives (0:13:47) The "conference meme": why he asks questions others avoid (16:58) The role of intellectual honesty vs. industry narratives (20:19) The pivotal 2023 mortgage fund story: duration, turnover, and a major contradiction (22:51) "Extend and pretend": how stable NAVs can be manufactured (28:59) What "gating" actually means and why it matters (31:48) Marketing tactics: cherry-picked start dates and chart crimes (32:47) IRR manipulation, vintage stacking, and anchoring bias (36:35) Why comparing gross private credit returns to net equity returns is misleading (39:18) The problem with "low correlation" as a selling point (41:00) Why rebalancing with illiquid assets often fails in practice (44:58) How Aravind builds expected return estimates for alts (47:07) Private real estate: why expected returns often land near public market levels (48:48) A case study: apparent outperformance disappears once you match the right benchmark (51:43) The idiosyncratic risk of overweighting single-sector, single-region REITs (55:12) Why most advisors don't truly understand the all-in fees (58:00) What real due diligence should include (and why it's so hard) (1:00:35) Should advisors trust third-party due diligence providers? (1:02:58) How much comfort should investors take from audited financials? (1:05:02) Why valuation levels (1–3) matter and why most private funds use Level 3 inputs (1:06:00) The overall conclusion: markets work, but alts require extraordinary scrutiny 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 on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Ben Wilson on LinkedIn — https://www.linkedin.com/in/ben-wilson/ Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this episode, we feature two conversations that highlight PWL's culture, values, and intentional approach to advice. We first sit down with Trevor Daigle and Brett Watt, founders of EB Wealth in Halifax, to talk about why they chose to merge their thriving independent practice with PWL — PWL's first acquisition in Atlantic Canada. Trevor and Brett open up about what they saw in PWL's infrastructure, culture, and client-first philosophy, the internal hurdles they had to clear (including their own egos), and the moment they realized they "couldn't unsee" what PWL had built. Then, in the second half of the episode, PWL Portfolio Manager and Financial Planner Phil Briggs walks us through a remarkable real-world case. A podcast listener's father decided to take the commuted value of his defined benefit pension… and the family approached PWL to invest it. Rather than simply execute the plan, Phil stepped back to rigorously analyze whether that decision made sense at all. The result is one of the most compelling demonstrations of evidence-based financial planning we've featured on the show — covering risk pooling, tax implications, Monte Carlo results, survivor benefits, and the emotional side of decision-making. Key Points From This Episode: (0:00:51) Welcoming Trevor and Brett — and why their practice, EB Wealth, aligned so closely with PWL's holistic philosophy. (0:02:30) How long-term cultural fit, infrastructure, and research depth drove their decision to join PWL. (0:04:57) "We can't unsee that": The moment a visit to Ottawa convinced them PWL's values were real at every level. (0:07:45) Their biggest concern: giving up control after years of running an independent practice — and how that shifted. (0:09:43) Setting aside ego: How thinking long-term and client-first changed their perspective on joining PWL. (0:11:35) What excites them most about the future: growth, learning, and being surrounded by experts who prioritize client outcomes. (0:13:17) Seeing PWL's collaborative culture in action — and why industry-typical "sales meetings" were nowhere to be found. (0:14:43) Transitioning clients and feeling the immediate impact on conversations and relationships. (15:05) The setup: A podcast listener reaches out after his father already decided to take the commuted value of a DB pension. (17:25) Why Phil was surprised — and the questions he wanted answered before talking about investing. (17:25–18:49) The benefits of staying in a DB pension: risk transfer, inflation protection, and mortality pooling. (19:07) The risks: employer insolvency, underfunding, and historical examples like Sears Canada and Nortel. (20:10–22:04) Evaluating pension solvency: sponsors, surplus status, funding ratios, diversification, and regulatory filings. (23:49) Reasons someone might take the commuted value: investment preferences, life expectancy concerns, and survivor benefits — the central issue in this case. (25:15–30:52) The tax trap: how the "excess amount" of a commuted value can trigger immediate taxation — in this case at the 53.53% marginal rate — and how RRSP room and PARs interact. (31:26–33:53) Modeling the decision: building retirement scenarios in financial planning software, including spending, inflation, CPP/OAS, rental income, and Monte Carlo analysis. (34:00–37:54) Results: 60/40 investment after commuting: overfunded plan but with significant volatility. 100% equity: higher legacy, similar failure rate. Leaving the pension with the employer: similar retirement score but dramatically higher Monte Carlo success (96%) due to guaranteed income, inflation hedging, and tax smoothing. (38:32–40:55) Why the pension's stable income floor and deferred taxation made such a big difference — even in a shortened-life-expectancy scenario. (41:05–41:37) Other firms simply accepted the commuted-value plan; PWL was the only firm to fully analyze the decision. (43:50–44:53) How personal values, risks, and emotional comfort interact with data in real financial planning decisions. (45:00–47:28) The next decision: choosing between a higher pension with a 2/3 survivor benefit or a lower pension with a 100% survivor benefit — and how break-even analysis (age 81) informed the client's choice. (47:44–48:31) Why planning software provides clarity people can't get through gut feel alone. (48:31–49:59) Trust and incentives: why turning down a large investable sum was the right decision — and why PWL celebrates that. (50:08–51:01) Culture + incentives: how PWL's structure allows advisors to prioritize clients without sales pressure. 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 on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Ben Wilson on LinkedIn — https://www.linkedin.com/in/ben-wilson/ Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this episode, we're joined by Mamdouh Medhat, VP and Senior Researcher at Dimensional Fund Advisors, for an exceptionally deep, exceptionally nerdy exploration of factor investing—focusing on profitability, value, defensive equity, and the persistent misunderstandings that surround them. Mamdouh walks us through his retrospective paper (co-authored with Robert Novy-Marx) on the profitability premium, why profitability subsumes a wide range of quality metrics, and why it dramatically clarifies how we should think about defensive/low-volatility strategies. He also explains the role of profitability in value's US underperformance since 2007, why price-to-book remains a remarkably effective valuation metric, and how Dimensional incorporates these insights into portfolio construction. In the second half of the conversation, we shift to private markets. Mamdouh unpacks Dimensional's research on buyouts, venture capital, private credit, and private real estate—revealing what percentage of the global investable universe these funds actually represent, how to benchmark them properly, how much dispersion exists across managers, how fair-value accounting changed the game post-2007, and why many perceived diversification benefits are actually just return smoothing. Key Points From This Episode: (0:04) Intro to Mamdouh Medhat and why his research fits the Rational Reminder "nerdy happy place." (1:32) The story behind Mamdouh's retrospective paper with Robert Novy-Marx and the impact of the original profitability research on academia and practice. (5:36) Three things the paper examines: quality investing, defensive/low-risk strategies, and value—unified through profitability. (6:55) Why none of the 15 major academic and practitioner quality metrics add explanatory power beyond profitability. (8:18) How spanning tests show profitability explains quality, but quality does not explain profitability. (12:24) Quality measures largely load on profitability—they're noisier versions of the same thing. (13:14) The link between quality metrics and fundamental momentum, especially for QMJ and quarterly ROE. (15:18) Practical implications: profitability is a parsimonious, more efficient way to capture the "quality" dimension. (16:30) Defensive equity through the profitability lens—why high profitability predicts low volatility. (18:58) Why long-only low-volatility strategies produce zero five-factor alpha—and why a simple high-profitability/low-investment portfolio plus T-bills beats them. (22:14) Alternative value metrics (EBITDA/EV, intangible-adjusted book-to-market, etc.) don't outperform price-to-book when profitability is accounted for. (24:57) Many "improved" value metrics simply rotate in profitability exposure, not better value information. (26:17) Roughly half of US value's post-2007 underperformance is explained by its negative correlation with profitability. (28:42) Industry tilts (e.g., energy/financials vs. tech/healthcare) drive much of value's volatility—not its long-term return. (30:33) The theoretical case for combining clean valuation (price-to-book) with clean expected cash flow (profitability). (33:36) Academic implications: models must jointly explain value and profitability—and their negative correlation. (35:09) Practitioner implications: parsimony—use clear valuation and cash-flow measures, limit excessive complexity. (36:53) How Dimensional measures profitability: operating profitability (revenue – COGS – SG&A – interest) scaled by book equity. (41:09) Why tilting toward or away from countries based on aggregate characteristics rarely adds value—premiums come from stocks, not countries. (42:57) Industry-level tilts show similar patterns—industry momentum exists but is impractical due to massive turnover. (46:15) How Dimensional handles country and industry weights: sort within countries, then apply sector caps. (48:27) Private markets: private funds make up roughly 10% of the global investable universe—not 25–100% as sometimes claimed. (50:53) Benchmark choice for private funds is crucial—S&P 500 is not appropriate for buyouts or VCs. (52:00) Using KSPME (public-market equivalent), buyouts and VCs match small-cap value/growth benchmarks; private credit matches high yield; private real estate underperforms listed real estate. (55:50) Factor exposures post-2007 explain 70–80% of private-fund return variation due to fair-value accounting. (1:00:48) Wide dispersion in private-fund performance—top 5% double or triple capital; bottom 5% lose half. (1:03:49) Little evidence of manager persistence—manager selection must rely on due diligence, not past vintages. (1:08:24) No strong time trend in private-fund outperformance, but correlations with public markets have increased. (1:09:13) Many diversification benefits historically attributed to private assets were actually illiquidity-driven smoothing. (1:12:25) Rising demand and democratization likely reduce expected returns in private markets—exclusivity is fading.   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 on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this episode of Rational Reminder, Ben Felix, Cameron Passmore, and Ben Wilson return with a classic AMA format—answering listener questions that dig deep into the behavioral and evidence-based foundations of sensible investing. From lump-sum investing to the psychology of advice, the trio blend data, humor, and clear thinking to demystify complex financial ideas. They discuss the behavioral logic behind dollar-cost averaging, why mutual funds might actually be more tax-efficient than ETFs in Canada, and whether technology could ever truly replace human financial advisors. Plus, they share their biggest investing mistakes (yes, Bitcoin makes an appearance), dissect the rise of "buffered" ETFs, and explain why chasing complexity usually costs investors more than it helps. Key Points From This Episode: (0:00:05) Introduction – The first episode featuring all three hosts together: Ben Felix, Cameron Passmore, and Ben Wilson. (0:44) OneDigital update: expanding evidence-based advice across Canada with new PWL partners in Halifax. (2:36) The mission in motion – bringing the "markets work and planning matters" philosophy to more Canadians. (5:29) "Finding and funding a good life" – how PWL integrates wellness and happiness into financial planning. (6:16) AMA Question 1: Lump-sum vs. dollar-cost averaging — why lump-sum wins 65% of the time. (10:05) Base rates, behavioral regret, and the real role of an advisor. (12:22) The 2020 PWL paper results and how behavioral hedging fits in. (16:10) If dollar-cost averaging feels safer, maybe your portfolio is too aggressive. (18:08) AMA Question 2: Advice for smaller portfolios — how technology, AI, and fee-only planners can fill the gap. (21:01) Can AI really replace advisors? Cameron's Waymo analogy sparks debate. (23:33) AMA Question 3: Mutual funds vs. ETFs — why in Canada, mutual funds may actually be more tax-efficient. (30:00) The Capital Gains Refund Mechanism (CGRM) explained — and why it matters. (34:31) Dimensional's Canadian funds vs. Vanguard ETFs — tax distribution data that surprises most investors. (37:40) AMA Question 4: Are discount bonds priced for tax efficiency? The evidence says no—discount bonds still win. (42:23) AMA Question 5: Biggest investment mistakes — from Bitcoin regrets to house-buying reflections. (48:15) AMA Question 6: Buffered ETFs — comfort, complexity, and why simple portfolios outperform. (53:45) Simplicity as a superpower — why "markets work" is still the most radical idea in finance. (55:27) AMA Question 7: Updating the RR model portfolio — why there's no "optimal" portfolio and simplicity wins again. (58:31) After show: Reviews, humor, and a reminder about "No Net Worth November." (1:04:15) Life offline — Cameron's reflections on quitting social media and finding clarity. 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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this episode, Ben, Cameron, and Dan are joined by Ted Cadsby, former executive at CIBC, author of The Power of Index Funds, Closing the Mind Gap, and Hard to Be Human. Ted brings a rare combination of experience in both finance and cognitive psychology, having helped introduce index investing to Canada before turning his attention to how human thinking itself often misleads us. Ted shares inside stories from his time at CIBC—how he tried to make the bank an indexing leader in the late 1990s, the pushback he faced, and why he still believes so deeply in indexing today. Then, the conversation turns to human cognition: why our brains evolved for simplicity, certainty, and emotion, and how those traits can sabotage both our portfolios and our peace of mind. From "greedy reductionism" and "certainty addiction" to emotional overreaction and competing selves, Ted unpacks the five cognitive design flaws that make it hard to be human—and how metacognition and mindfulness can help us overcome them. Key Points From This Episode:   (0:04) Introduction to the Rational Reminder Podcast and hosts. (0:18) Cameron's story about rediscovering The Power of Index Funds and reconnecting with Ted Cadsby. (2:21) How Ted brought index investing to CIBC and tried to make the bank a leader in indexing. (5:58) Why assessing active managers taught Ted about randomness, noise, and the illusion of skill. (8:42) The moment Ted "saw the light" on indexing—and why randomness, not market efficiency, is the real obstacle for active managers. (12:54) How Ted tried to implement index investing at CIBC and the cultural resistance he faced. (15:05) The goals of The Power of Index Funds (1999) and how he tied indexing to human behavior. (18:49) How his indexing push created internal conflict at CIBC and ultimately led to his departure. (23:23) The influence of John Bogle and Vanguard on Ted's mission to bring indexing to Canada. (26:59) Why he's still passionate about indexing, and what worries him about private equity. (31:44) How human cognition and philosophy led him from finance to exploring how we think. (34:46) The "Big Five" cognitive design flaws that shape human decision-making:  1. Greedy reductionism – our urge to oversimplify complex systems.  2. Certainty addiction – craving the feeling of knowing, even when we're wrong.  3. Emotional hostage-taking – overreacting and ruminating.  4. Competing selves – inner conflicts between present and future selves.  5. Misguided search for meaning – overextending our need for purpose. (44:11) Why modern life amplifies these flaws and how System 1 (automatic) and System 2 (deliberate) thinking play into it. (48:00) The human superpower: metacognition—our ability to think about thinking. (49:57) How mindfulness and a "meditative stance" help us use metacognition daily. (53:57) Why knowing your biases isn't enough—emotional regulation is the real challenge. (56:27) How to recognize triggers for deeper reflection and System 2 thinking. (1:00:34) How systems thinking and better questions can combat our reductionist tendencies. (1:05:57) Why our addiction to certainty fuels overconfidence and poor decisions. (1:08:43) How humility, probabilistic thinking, and skepticism can make us wiser investors and humans. (1:11:39) When to listen to emotions—and when to treat them as cognitive red flags. 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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Dan Bortolotti — https://pwlcapital.com/our-team/ Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310 Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this special Investing 101 episode, the Rational Reminder hosts—Ben Felix, Dan Bortolotti, and Ben Wilson—team up to revisit the fundamental concepts that every investor should understand before diving deep into portfolio construction or market theory. Drawing from Ben's original "Investing 101" presentation and years of client experience, the trio lay out why investing matters, how inflation shapes your future, what stocks and bonds really represent, and why a disciplined, evidence-based approach beats prediction and luck every time. They unpack core ideas like financial independence, risk versus volatility, global diversification, and market efficiency, then connect them to practical tools like ETFs and Vanguard's asset allocation funds. Key Points From This Episode:   (0:00:24) Why this episode revisits "Investing 101"—inspired by a listener still unsure how to begin. (0:05:03) Why investing matters: inflation erodes purchasing power, investing fights back. (0:06:33) The math of compounding: how a 7% return versus 2% changes your retirement entirely. (0:10:57) Saving early and often: habit formation beats late-life catch-up. (0:11:53) The trade-off between saving more and taking more investment risk. (0:14:04) Utility theory and the psychology of saving when young. (0:16:39) Marginal utility: when more money no longer adds happiness or purpose. (0:20:47) Stocks and bonds explained: ownership versus lending and the role of each. (0:23:11) The Japan story: a cautionary tale about chasing past winners. (0:26:49) Narrative investing: why investors love stories and get burned by them. (0:30:19) Market capitalization weighting—how global prices tell you what to own. (0:33:42) The stock market is not the economy: why news headlines mislead investors. (0:37:14) The power of diversification: why most individual stocks fail—and a few drive all returns. (0:41:56) Bonds, volatility, and inflation risk—why "safe" assets aren't risk-free. (0:44:41) Building your mix: matching volatility tolerance with long-term goals. (0:45:10) The behavioral challenge: risk is only useful if you can stay invested. (0:48:08) Active management as gambling: adding unrewarded noise to your portfolio. (0:51:43) The paradox of skill: why markets punish even brilliant active managers. (0:55:51) Efficient markets and Eugene Fama: the evidence that prices already reflect all information. (1:00:20) How small fees compound into big losses over decades. (1:03:07) The behavioral hurdle of indexing: trusting a system with "no one at the wheel." (1:04:54) The real value of financial advice: behavior, discipline, and holistic planning. (1:07:24) Implementing the plan: how asset allocation ETFs simplify everything. (1:11:41) Rebalancing and emotion: why automation protects investors from themselves. (1:14:24) Paying a bit more for simplicity: why 0.10% in fees can be worth it. 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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Dan Bortolotti — https://pwlcapital.com/our-team/ Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310 Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

What if capitalism itself is confusing your personal finance decisions? In this week's episode, Harvard economist John Y. Campbell joins us to unpack his new book, Fixed: Why Personal Finance Is Broken and How to Make It Work for Everyone, co-authored with Tarun Ramadorai. John argues that the financial system—while essential—is failing ordinary people through complexity, hidden costs, and misplaced incentives. Drawing on decades of research in household finance, he explains why products are too expensive, advice too conflicted, and decisions too difficult, and how policy and design can fix it. Key Points From This Episode:   (0:04) Introduction – Rational Reminder's focus on sensible investing and decision-making. (1:46) Why Canadian finance feels broken: complexity, branding, and lack of competition. (4:53) Introducing John Y. Campbell and his new book Fixed. (5:43) The role of the financial system in everyday life: smoothing income, enabling investment, and managing risk. (7:14) The two main problems in modern finance—products are too complicated and too expensive. (9:17) Why financial decisions are so hard: our brains didn't evolve for math, and temptation bias wins. (11:36) How far financial literacy education really helps—and its limits for inequality. (14:26) The "corruption of capitalism": how capitalists exploit consumer confusion and misperceived value. (18:15) Cross-subsidies: how the mistakes of the poor often subsidize the wealthy. (21:05) Competition only works when consumers can compare price and quality. (22:15) Financial innovation—when technology helps vs. when it deceives. (24:24) Conflicts of interest in advice: why "trusted" advisors often don't act in clients' best interests. (26:26) Why loyal, long-term bank customers often get worse deals. (27:20) The illusion of opting out: why avoiding finance (or choosing crypto) is "jumping out of the frying pan into the fire." (30:24) The global emergency-savings problem—why volatility hits the poor hardest. (32:26) Is college worth it? Returns, costs, and who actually benefits. (35:47) How to think rationally about buying versus renting a home. (38:16) Housing in retirement—why reverse mortgages make sense but are misunderstood. (40:25) Mortgage mistakes: not shopping, not refinancing, and the racial gap that results. (44:41) Using utility theory to make better insurance and investment choices. (46:55) Principles for investing in stocks: participate, diversify, minimize fees, and ignore short-term noise. (48:24) How real investor behavior deviates from these principles—chasing returns and confusing investing with gambling. (51:17) Insurance mistakes: overinsuring small risks, underinsuring big ones. (54:11) How much to save for retirement—and how most people fall short. (55:40) Lifecycle investing: why target-date funds are good but could be better. (57:56) Why annuities make sense, and how better framing could make them more popular. (59:30) Technology's double edge: lower costs but higher temptation and discrimination. (1:02:17) Lessons from crypto: why stablecoins matter and what regulators should learn. (1:05:26) From nudge to shove: how governments should actively design simpler, safer products. (1:10:02) Where regulation goes too far—and why governments shouldn't run finance directly. (1:13:10) Priority areas for reform: retirement accounts, transaction accounts, and insurance. (1:14:49) The four design principles for a better system: simple, cheap, safe, easy. 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 — info@rationalreminder.ca Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this AMA episode of the Rational Reminder Podcast, Ben Felix and Dan Bortolotti return to answer listener questions across a wide range of topics—from covered call ETFs and dividend tax credits to currency hedging, bond mechanics, leverage, and career reflections. They open with a striking quote from Harvard economist John Campbell on how markets cater to perceived benefits rather than real ones—a perfect setup for their recent discussions on the rise of covered call ETFs.   Key Points From This Episode: (0:59) John Campbell's quote on capitalism's tendency to meet perceived rather than rational needs—and how that perfectly describes the financial industry. (3:44) Covered calls as the perfect example: products that respond to investor demand for yield, not what's actually in their best interest. (4:49) Dan compares income-chasing in covered call ETFs to Apple's marketing genius—except in finance, the benefits flow mostly to issuers, not investors. (5:48) Why dividend bias was relatively harmless, but the covered call craze is not—and how new ETFs "multiply like rabbits." (7:46) Ben's analysis: in every example studied, covered call investors ended up with less wealth than those holding the underlying equities. (8:13) The hidden trade-off: holding covered call ETFs is like keeping 25–30% of your portfolio in cash for a decade. (9:33) Lighter interlude: Dan teases Ben about his lentil (and later cabbage) lunches. (9:59) First AMA question: Are domestic dividend tax credits already priced into stock valuations? (Short answer: partially, depending on investor composition.) (12:13) Why even if tax benefits are "priced in," Canadians with favorable tax rates still come out ahead. (15:58) Hedging currencies in commodity economies like Canada and Australia—when it helps, when it hurts, and why there's no perfect answer. (18:48) Dan explains why unhedged portfolios can actually be less volatile for Canadians and why most hedging is imprecise and costly in practice. (20:03) Behavioral perspective: splitting the difference between hedged and unhedged can be the "strategy of least regret." (21:06) Bonds demystified—why falling prices during rising rates affect funds and individual bonds equally. (22:22) Understanding duration: bond ETFs are designed to stay at a target maturity, while individual bonds age toward zero duration. (26:03) How rising yields actually improve financial plans by boosting future expected returns. (29:08) Choosing the right bond fund duration based on your time horizon and liabilities. (33:39) Are recent bond losses an anomaly? Ben and Dan explain how decades of falling rates created unrealistic expectations. (36:21) The role of unexpected rate changes in bond volatility—and why central banks don't control long-term yields. (38:01) Market-cap weighting: why it remains the most defensible way to allocate across countries and sectors. (41:48) What's changed their thinking after six years of Rational Reminder—from Scott Cederberg's asset allocation data to the behavioral power of homeownership. (45:13) The Horizons/Global X ETF debate: how swap-based, corporate-class structures create tax efficiency—and why that efficiency could vanish. (50:42) Why PWL avoids these products: potential hidden tax liabilities and lack of transparency for clients. (54:31) Borrowing to invest: Ben outlines why leverage works in theory—but Dan explains why most investors shouldn't touch it. (57:25) New "modest leverage" ETFs (125% exposure) as a more behavioral-friendly version of borrowing to invest. (1:00:36) Fulfillment and frustration in finance: helping people achieve peace of mind vs. seeing deception still rampant in the industry. (1:03:09) Five years of Vanguard's all-in-one ETFs (like VEQT): how they've delivered exactly what they promised and reshaped DIY investing in Canada. (1:07:47) Why these "one-ticket" portfolios remain the biggest innovation in Canadian investing—and why global diversification matters more than ever. (1:08:50) Revisiting bonds in retirement: what to expect when they don't offset stock volatility, and how to rethink risk management beyond yield-chasing.   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 — info@rationalreminder.ca Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Dan Bortolotti — https://pwlcapital.com/our-team/ Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this episode, we are joined by Mark Higgins, an award-winning author and institutional investment advisor, to discuss the power and importance of studying US financial history. Mark brings his wealth of knowledge as a financial historian to the show as he shares the value of studying financial history, the role the financial system plays in the overall success of the US, and the impact Alexander Hamilton made on the country. We unpack government debt, the concerning levels of it in America, and the impact of having a central bank before discussing what happens, historically, when a bank is unregulated. Mark describes some early warning signs of a bubble, touches on the historical origins of flawed financial practices, and shares some important lessons we can learn from the history of the US financial system. Hear all about alternative asset classes, evergreen funds, and red flags in the private market. Finally, our guest tells us how he defines his own personal and professional success. This conversation sheds light on the history of finance in the USA and how we can learn from it, so be sure to tune in now!   Key Points From This Episode: (0:00:00) An introduction to Mark Higgins and an overview of today's topics of discussion.  (0:04:16) The value of studying financial history and the role the financial system plays in the USA as a whole.  (0:06:33) Why Alexander Hamilton stands out in US financial history and the importance of government debt.  (0:09:29) Mark discusses the concerning debt levels in America and the impact of having a central bank. (0:12:29) What happens when banking is unregulated, and key themes across major US financial depressions. (0:16:48) Some early warning signs of a bubble and the problematic nature of speculation and comparison.  (0:19:42) Historical parallels for crypto and meme stocks and the historical origin of flawed practices in the investment industry.  (0:24:27) Mark shares some of the most important lessons we can learn from US financial history and what we may have to relearn in the future.  (0:27:41) Alternative asset classes, why so much has been allocated to them in recent history, and how modern portfolio theory is abused in the promotion of alternative investments.  (0:33:56) Mark shares his thoughts on 'evergreen funds', why they are so flawed, and their effects.  (0:39:51) The biggest red flags in private markets today and what he thinks will happen if retail starts taking up private assets.  (0:43:03) How often Mark sees institutions being sold alternatives, and why trustees of these institutions have to be different.  (0:49:23) Mark tells us how he defines success in his life on a personal and professional level.     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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark Higgins on LinkedIn — https://www.linkedin.com/in/markhiggins/    Books From Today's Episode: Investing in US Financial History: Understanding the Past to Forecast the Future — https://enlightenedinvestor.com/  Security Analysis — https://www.amazon.com/Security-Analysis-Principles-Benjamin-Graham/dp/007141228X  Pioneering Portfolio Management — https://www.amazon.com/Pioneering-Portfolio-Management-Unconventional-Institutional/dp/1416544690    Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

Your health may well be the most important investment you ever make, and the earlier you start, the better your outcomes are likely to be. In this episode, Ben Felix is joined by Ben Wilson, Portfolio Manager and Head of M&A at PWL Capital, who steps in as today's co-host to unpack why decisions about exercise, nutrition, sleep, and mental well-being matter just as much as financial ones. They draw clear parallels between compounding wealth and compounding health, showing how small, consistent habits can add up to lasting benefits.  Choosing an exercise routine, healthy diet, or financial plan is less about quick fixes and more about finding an evidence-based approach you can stick with over time. Along the way, Ben Felix shares his personal health story with cancer, and the two Bens break down the four pillars of health before reflecting on how relationships and resilience play into long-term happiness. The episode also tackles an essential financial planning topic: the questions every client should ask about their advisor's succession plan. Listen in for a thoughtful conversation that connects the dots between living well and planning wisely! Key Points From This Episode: (0:00:00) An introduction to Ben Wilson and an overview of today's topics. (0:02:01) Breaking down OneDigital's $7 billion recapitalization (and why it's a good thing). (0:08:26) Recapitalizations explained: liquidity, valuations, and continuity. (0:15:08) Introducing the main theme: investing in health like investing in wealth. (0:19:30) An update on Ben Felix's cancer story and the importance of early health checks. (0:21:13) Investing in your lifespan and your healthspan by building healthy habits. (0:29:35) Four pillars of health: exercise, nutrition, sleep, and mental well-being. (0:33:39) Similarities between strength training and saving for retirement: both build reserves. (0:39:34) Debates surrounding nutrition and enduring principles that are broadly agreed on. (0:44:44) The importance of good sleep and how to build good sleep habits. (0:47:46) Why investing in mental health and relationships is so valuable. (0:52:06) The ripple effect: how sleep, nutrition, exercise, and relationships reinforce each other. (0:54:04) Key questions to ask about your financial advisor's succession plan. (01:08:44) After show segment: listener review, west coast meetups, and 2026 meetup plans. 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 —info@rationalreminder.ca Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Ben Wilson on LinkedIn — https://www.linkedin.com/in/ben-wilson/ Books From Today's Episode: Outlive: The Science and Art of Longevity — https://peterattiamd.com/outlive/ The Power of Regret: How Looking Backward Moves Us Forward — https://www.amazon.com/Power-Regret-Looking-Backward-Forward/dp/B098VRLZ2H The Ripple Effect — https://www.amazon.com/Ripple-Effect-Sleep-Better-Think/dp/1443436933 Papers From Today's Episode: 'Trends in Health Equity in the United States by Race/Ethnicity, Sex, and Income, 1993-2017' — https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2736934 'Association of Cardiorespiratory Fitness With Long-term Mortality Among Adults Undergoing Exercise Treadmill Testing' — https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2707428 Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

Are your financial decisions evolving as your wealth grows? In this episode of the Rational Reminder Podcast, we welcome back Nick Maggiulli to unpack his approach to climbing the wealth ladder and creating the life you want. Nick is the Chief Operating Officer at Ritholtz Wealth Management, the author of The Wealth Ladder and Just Keep Buying, and creator of the blog Of Dollars and Data. He is renowned for his ability to take the complexity out of finance and for his deep knowledge of investing. In our conversation, Nick explains his new framework for building wealth in his new book, The Wealth Ladder, and he unpacks how spending, income, and investing should change from one level to the next. He breaks down his .01% and 1% rules for spending and income, how the opportunity cost of time changes with wealth, and what the data reveals about income, wealth, and asset composition between different levels. Nick also shares strategies to progress between levels, insights on the challenges of extreme wealth, and why focusing on non-financial forms of wealth is important. Join us for a practical, data-driven framework for thinking about financial decisions and what truly constitutes 'enough' with Nick Maggiulli! Key Points From This Episode: (0:00:00) Nick Maggiull, his new book, and his background at Ritholtz Wealth Management. (0:03:48) The Wealth Ladder, its different levels, and why he thinks the concept is important. (0:06:59) Hear about the 0.01% rule for spending, and examples of The Wealth Ladder levels. (0:12:09) Unpack the 1% rule and how the opportunity cost of time changes up the ladder. (0:15:00) Explore how income determines wealth and how to move up and down the ladder. (0:19:47) Which level is the most common to fall, and how wealth changes up the ladder. (0:22:34) What shifting wealth composition indicates and how to move from level one to two. (0:25:48) When education should be the focus, and what it takes to move out of level three. (0:29:41) Discover the pros and cons of a side hustle and why controlled spending is crucial. (0:33:32) Learn the key to reaching level five and why people fall out of levels four and five.  (0:39:20) Insights on the downsides of extreme wealth and how it impacts lifestyle.  (0:42:54) How long it takes to climb the ladder and the correlation between age and wealth. (0:46:10) Why financial persistence is vital and what a typical millionaire household looks like. (0:49:00) Find out what constitutes 'enough' financially and examples of other forms of wealth. (0:51:56) Nick shares what he hopes readers will take away from the book and how it impacted his view 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 — info@rationalreminder.ca Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Nick Maggiulli — http://ofdollarsanddata.com/ Nick Maggiulli on LinkedIn — https://linkedin.com/in/nickmaggiulli/ Nick Maggiulli on Twitter — https://twitter.com/dollarsanddata  Nick Maggiulli on Instagram — https://instagram.com/nickmaggiulli Ritholtz Wealth Management — https://www.ritholtzwealth.com/ Episode 145: Jennifer Risher: Talking About Money — https://rationalreminder.ca/podcast/145 Episode 255: Structured Products — https://rationalreminder.ca/podcast/255 The Panel Survey of Income Dynamics (PSID) — https://www.bls.gov/cex/cecomparison/psid_profile.htm Preston Holland on X — https://x.com/prestonholland6   Books From Today's Episode: Just Keep Buying — https://www.amazon.com/Just-Keep-Buying-Proven-wealth-ebook/dp/B09FYHZXBN The Wealth Ladder — https://www.amazon.com/dp/0593854039 Portfolios of the Poor — http://www.portfoliosofthepoor.com/ The 5 Types of Wealth — https://www.the5typesofwealth.com/   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this episode, Ben and Dan take a deep dive into covered call strategies—popular ETFs often marketed on their eye-catching distribution yields. While these products promise steady "income," the reality is more complicated. Drawing on recent research from the Journal of Alternative Investments ("A Devil's Bargain: When Generating Income Undermines Investment Returns"), Ben and Dan unpack why covered calls often reduce expected returns, cap the upside of equities, and leave investors fully exposed to the downside. They explain how covered calls work, why yields are misleadingly presented as "income," and why long-term investors may find themselves worse off over time compared to simply holding equities or combining equities with cash. The conversation covers live fund performance, behavioral biases that drive demand for yield, and the rise of extreme products like single-stock covered call ETFs with 40%+ "yields." While covered calls may offer psychological appeal for investors who crave distributions, the evidence shows they often deliver lower total returns, higher costs, and asymmetric risk. If it sounds too good to be true, it probably is—and nowhere is that clearer than in the world of covered call ETFs. Key Points From This Episode: (0:01:09) Why "14% yield" claims on covered call funds are misleading. (0:02:35) Revisiting covered calls: "A Devil's Bargain" and new research insights. (0:05:24) The deep-seated investor preference for income—and how fund companies exploit it. (0:10:10) What a call option is and how it caps upside while leaving downside intact. (0:14:53) Why selling calls lowers expected returns and distorts stock return patterns. (0:20:25) The volatility risk premium: theory versus retail investor reality. (0:22:17) How crowded trades since 2011 erased much of the benefit of covered calls. (0:24:56) Why stocks' mean reversion makes covered calls especially damaging for long-term investors. (0:28:11) The illusion of "income": distributions versus true total returns. (0:34:41) Evidence from live funds: BMO utilities and banks covered call ETFs. (0:40:53) Underperformance across rolling periods—covered calls vs. their underlying. (0:46:17) JEPI and cult-like covered call products: big marketing, poor long-term results. (0:47:36) The rise of single-stock covered call ETFs—and why they're worse. (0:53:45) Higher costs: MERs and trading expenses add to the drag. (0:57:25) Why marketing yields as "income" is financial BS. (0:58:47) Final verdict: covered calls are more likely to harm than help investors' outcomes. 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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Dan Bortolotti — https://pwlcapital.com/our-team/ Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310 Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this episode, we're joined by David C. Brown, Associate Professor of Finance at the University of Arizona, for a deep dive into the mechanics, performance, and pitfalls of target date funds (TDFs)—the most common investment vehicle in U.S. retirement accounts. David has spent years researching glide paths, benchmarking methods, and industry practices to uncover whether these "set it and forget it" funds actually serve investors well. We unpack why benchmarking TDFs is so difficult, what really drives their underperformance, and how tactical deviations from strategic glide paths often harm investors. David explains how fees, active management, and fund structure combine to create persistent drag—and why dispersion across TDF providers is shockingly wide. We also discuss behavioral challenges, the influence of glide path design, and whether innovations like "indexing the indexers" could improve outcomes. David also shares insights on his side project, the Microsoft Excel Collegiate Challenge, where students compete in gamified problem-solving competitions (yes, Excel on ESPN!), and reflects on his own definition of success. This conversation sheds light on a massively important—but often misunderstood—corner of the retirement landscape, giving investors and plan sponsors practical tools to demand better.   Key Points From This Episode: (0:05:20) What a Qualified Default Investment Alternative (QDIA) is and why TDFs became the default in 2006. (0:05:50) How target date funds work as "one-stop shops" for retirement savings. (0:07:12) The glide path concept: why equity allocations decrease with age. (0:08:04) Why comparing TDFs is hard—fund families design glide paths differently. (0:10:37) David's benchmarking approach: replicating TDFs with index funds. (0:15:13) The performance gap: ~1% annual underperformance versus replicating benchmarks. (0:15:50) Main culprits: higher fees (~55 bps) and poor active management (~45 bps). (0:18:20) Good news: costs have declined—but dispersion across providers remains massive. (0:20:09) Evidence of wild return differences: up to 23% in a single month across vintages. (0:21:32) Why plan sponsors and investors aren't reacting to poor performance. (0:25:33) The debate over optimal glide paths—and why the jury is still out. (0:29:15) Tactical deviations: managers shifting allocations beyond the strategic design. (0:33:06) These tactical moves hurt performance (~10 bps on average). (0:35:49) Evidence of return chasing in TDF management. (0:39:07) Big picture: TDFs are a huge improvement over money market defaults, but dispersion and inefficiency remain. (0:42:48) David's views on Scott Cederberg's 100% equity lifecycle portfolio research. (0:45:22) Behavioral challenges: why defaults and illiquidity may help investors stay the course. (0:50:57) The Microsoft Excel Collegiate Challenge—Excel as an esport. (0:52:50) How David defines success: balance, impact, and growth. 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 — info@rationalreminder.ca Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

What if choosing your asset allocation was as personal as your life story—and as consequential as your retirement? In this episode, we are joined by PWL Capital's Louai Bibi and Ben Wilson for a deep dive into how advisors guide clients through the most important portfolio decision they'll ever make. Louai walks us through the research, psychology, and planning frameworks behind determining the right stock/bond mix, while Ben shares real-world insights from client cases where risk tolerance, pensions, and life events shifted the balance. We explore how Monte Carlo simulations stress-test financial plans, why spouses often disagree on risk, and how pensions act as "bond-like assets" in the bigger picture. Ben Wilson also takes us behind the scenes of PWL's post-OneDigital acquisition journey, revealing why advisors are drawn to join the firm, how succession planning shapes their choices, and why a unified evidence-based philosophy matters in Canada's wealth management landscape. The episode wraps with a fascinating look at surprising stock return outliers—like Build-A-Bear outperforming Nvidia—and what that teaches us about the futility of stock-picking versus the power of diversification. Key Points From This Episode:   (0:01:00) Introducing PWL's Louai Bibi and Ben Wilson—today's topics: asset allocation, advisor succession, and surprising stock return data. (0:03:35) Louai explains the asset allocation decision: balancing stocks vs. bonds and why it's the biggest choice investors make. (0:05:12) Why asset allocation matters: inflation erodes purchasing power, and stocks/bonds help investors keep up or outpace it. (0:06:50) Historical lessons: $1 invested since 1970—outcomes for bonds, balanced portfolios, and 100% equities. (0:08:35) The risks of downturns: 2008 as a case study in how stocks vs. bonds shape losses and recovery times. (0:11:39) Risk tolerance questionnaires: how PWL uses surveys to gauge willingness vs. capacity to take risk. (0:13:45) When spouses disagree on risk tolerance—balancing perspectives and sometimes splitting portfolios. (0:16:42) Risk capacity: pensions, insurance, income stability, and emergency funds all shape asset allocation. (0:20:08) Real client cases: retirees discovering they don't need as much stock exposure, or elderly clients increasing equity later in life. (0:22:47) How often do clients change asset allocations? Rarely—except for life events like retirement. (0:27:10) Why Monte Carlo simulations are essential for stress-testing financial plans beyond straight-line projections. (0:30:20) PWL's "asset allocation email": summarizing risks, pensions, debt, emergency funds, and personalized tradeoffs. (0:34:02) Pensions as "bond-like assets"—how they increase ability but decrease need to take risk. (0:37:11) Closing thoughts from Louai: think in dollar terms, investing is a marathon, and build confidence gradually. (0:39:32) Education shifts clients' choices: some reduce risk after learning the realities of volatility, others increase equity exposure with context. (0:43:10) Advisor "fixed effects": research shows the advisor's own perspective strongly shapes client allocations. (0:45:39) Transition to Ben Wilson: what motivates advisors to join PWL post-OneDigital acquisition. (0:47:52) Reputation and content: how Rational Reminder, YouTube, blogs, and Canadian Couch Potato attract advisors. (0:50:34) PWL's unified philosophy: evidence-based, passive investing with a planning-first approach. (0:56:30) Key motivators for advisors: reducing admin burdens, escaping "aggregator" models, and building integrated team structures. (1:00:15) Succession planning: why advisors seek peace of mind for their clients and teams by partnering with PWL. (1:03:04) Ben Felix on why these conversations are exciting and why advisors should reach out early. (1:04:54) After show: Nvidia's insane 70% annualized 5-year return—and why lesser-known names like Build-A-Bear, Celestica, and Dillard's did even better. (1:06:33) Celestica's role in DFA funds and how it helped them keep pace with Shopify-driven indexes. (1:09:25) Why broad diversification captures unexpected winners (Build-A-Bear included) without speculation. (1:10:45) Active advisors pitch "winner-picking"—but history shows how impossible that really is. (1:12:16) Reviews and wrap-up. 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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Dan Bortolotti — https://pwlcapital.com/our-team/ Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310 Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this episode, we are joined by Elie Hassenfeld, Co-Founder and CEO of GiveWell to discuss how data, transparency, and moral trade-offs can guide charitable giving with maximum impact. Elie brings his background in finance and philosophy to the world of global philanthropy—explaining how GiveWell rigorously evaluates programs to determine which ones save or improve lives most effectively. We explore how GiveWell assesses cost-effectiveness, why transparency is a core organizational value, and how moral weights shape grantmaking priorities. Elie also opens up about the challenges of running a high-stakes nonprofit that directs nearly $400 million annually, why global health interventions are often overlooked by traditional donors, and how they navigate philosophical dilemmas like saving a life versus doubling someone's income. This conversation blends finance, ethics, and effective altruism into a compelling framework for anyone who wants to do the most good with their giving.   Key Points From This Episode:   (0:01:00) Why charitable giving is a financial decision—and why it deserves evidence-based thinking. (0:02:20) GiveWell's mission: Using rigorous research to direct donor funds where they'll do the most good. (0:03:44) How Elie's frustration with vague charity claims led him to co-found GiveWell in 2007. (0:08:35) The scope of impact: GiveWell's 80-person team now directs ~$395M annually. (0:10:43) The weight of responsibility: Why directing hundreds of millions of dollars is both gratifying and stressful. (0:12:22) Radical transparency: Publishing internal debates and mistakes as a matter of principle. (0:13:06) GiveWell's core values: Maximize impact, transparency, truth-seeking, and deep consideration. (0:16:25) How GiveWell differs from traditional charity evaluators (like those focused on overhead ratios). (0:18:15) The business model: GiveWell is a nonprofit funded by donors—no cut taken from giving funds. (0:21:20) Who gives: A mix of finance and tech professionals across the U.S., Canada, and the UK. (0:22:16) EA and SBF: How distancing from the effective altruism label insulated GiveWell from the fallout. (0:24:04) GiveWell's four criteria for evaluating programs: Evidence, cost-effectiveness, room for more funding, and transparency. (0:29:45) How GiveWell identifies top charities—through academic research, NGO outreach, and sector immersion. (0:31:07) Current top charities: Against Malaria Foundation, Malaria Consortium, Helen Keller Intl, and New Incentives. (0:34:31) Why GiveWell shifted to global poverty after early comparisons showed massive cost-effectiveness differences. (0:39:24) Why the cost to save a life is higher than people think—nets don't reach everyone, and malaria risk is probabilistic. (0:43:27) How GiveWell measures "good": lives saved, health improved, income increased—standardized into one metric. (0:46:47) Moral weights matter: Why GiveWell equates saving a life with doubling 100 families' income. (0:50:37) Where moral weights come from: surveys, literature, and direct community input from Kenya and Ghana. (0:53:44) Letting donors tweak the model: Tools exist to adjust for your personal moral priorities. (0:54:57) Do top charities cannibalize each other's impact? (Spoiler: Not really.) (0:56:20) Capacity assessment: How GiveWell determines how much money an organization can productively absorb. (1:00:15) Why even on-the-ground observations (like chlorine testing methods) shape their assessments. (1:01:27) Why evidence matters—especially when trying to help people you'll never meet. (1:03:55) Elie's personal definition of success: Deep relationships, personal growth, and demonstrable 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/RationalRemind Rational Reminder on TikTok — www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.ca Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this episode, Ben Felix and Cameron Passmore take a critical look at the Canadian banking system's mutual fund advice model. A newly released study by the Ontario Securities Commission (OSC) and the Canadian Investment Regulatory Organization (CIRO) confirms what many already suspected: Canadian bank branches aren't in the business of giving impartial advice—they're selling financial products. Ben breaks down the implications of this study, which surveyed nearly 3,000 bank-affiliated mutual fund representatives, uncovering troubling statistics about sales pressure, lack of credentials, misaligned incentives, and poor client outcomes. From limited product shelves and high-fee mutual funds to representatives with minimal financial education, the findings expose systemic flaws in the bank advice model. The second half of the episode is a conversation with Connor and Taylor Hewson, who recently joined PWL Capital after operating their own multigenerational advisory firm. They reflect on the decision-making process, their practice's evolution, and how joining PWL aligned with their mission to deliver better, evidence-based advice to clients. Their story illustrates the professionalization of financial advice in Canada and what's possible when advisors choose client outcomes over product sales.   Key Points From This Episode:   (0:02:33) Introducing Connor and Taylor Hewson and their firm's integration with PWL Capital. (0:03:55) Why Canadians' loyalty to banks puts them at risk of poor financial advice. (0:06:22) Bank branch "advisors" often lack credentials and act as commissioned salespeople. (0:08:08) Overview of CBC's 2024 investigation into bank sales practices. (0:10:11) The OSC and CIRO's comprehensive 2024 survey of bank mutual fund reps. (0:11:47) One-third of bank reps agree their pay structure prioritizes sales over advice. (0:13:17) 35% of reps experience sales pressure "often" or "always." (0:16:32) Almost half of bank reps believe clients would benefit from non-bank products. (0:18:52) A shocking 23% of reps couldn't define "MER"—a key mutual fund concept. (0:21:03) Advisors often make the same poor investing choices as their clients. (0:23:55) Why credentials like CFP and CFA—and firms that support them—matter. (0:26:18) How PWL Capital's structure addresses the problems with bank advice. (0:27:43) Taylor and Connor's journey from family firm to joining PWL. (0:31:18) Why they shifted from resistance to excitement about the acquisition. (0:35:46) Letting go of the need to "do everything" and focusing on client relationships. (0:40:06) How clients reacted to the transition—and the surprising questions they asked. (0:42:40) What they'd tell other advisors considering a move to PWL. (0:44:41) Building the future of advice by creating a true apprenticeship model. (0:52:12) Why advice—not just products—should be the center of financial services. 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 — info@rationalreminder.ca Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

What if the most impactful financial advice isn't about picking the right investment—but about understanding human behaviour, simplifying your life, and laughing along the way? In this episode of the Rational Reminder podcast, we're joined by none other than David Chilton, author of the legendary personal finance book The Wealthy Barber. David shares insights from decades of experience helping Canadians improve their financial well-being through simplicity, frugality, and clarity. We dig into the enduring lessons of his 1989 classic, why the new edition took even longer to write, and what's changed (and what hasn't) in the personal finance landscape. From his views on insurance and home ownership to the psychology of spending, his entertaining yet practical approach makes complex ideas feel surprisingly accessible. We also explore the challenges of dollar-cost averaging, the role of financial advisors, and what it really costs to own a home. And yes, you'll also hear how his mom helped launch Canada's most successful cookbook series.   Key Points From This Episode:   (0:20) Introducing David Chilton and his impact on the PWL team (3:22) Why Dave believes the original Wealthy Barber still holds up (6:44) His enduring belief in term life insurance and investing the difference (8:08) What he got wrong: mutual funds, high fees, and underestimating behavioural traps (11:16) How the book's success changed his life—and what stayed the same (13:32) The unexpected tipping point that drove its breakout popularity (15:13) Why he wrote The Wealthy Barber Returns after a long break (16:41) What excites him most about the new revision and who it's for (18:29) His kids, Rob Carrick, and the housing crisis: why now was the time (20:13) Transitioning to videos and podcasts to reach modern audiences (22:41) The best part of being "The Wealthy Barber"—and what he's learned from readers (25:34) The surprising volume of portfolios people send him—and why he still reviews them (27:12) What decades of portfolio analysis taught him about investor underperformance (32:50) On lump sum vs. dollar-cost averaging—and the role of psychology (37:52) Should you pay down debt or invest? Dave's practical framework (39:49) What a good financial advisor should (and shouldn't) do (43:08) The hidden costs of homeownership—and why people underestimate them (48:29) Misleading conclusions about wealth, university, and home ownership (50:40) The biggest home ownership mistakes people make (52:24) Writing the new Wealthy Barber at the same card table (53:25) Should you pay back the Home Buyer's Plan early? Dave says no—and here's why (55:52) Why small optimizations—like minimizing RRSP fees—can really add up (56:55) Spending rises with home size—and the real trap of lifestyle creep (57:05) The most important financial variable of all: saving (and not borrowing too much)     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 — info@rationalreminder.ca Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Dan Bortolotti — https://pwlcapital.com/our-team/ Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310 Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this episode of the Rational Reminder Podcast, Ben Felix and Dan Bortolotti celebrate the show's 7th anniversary with a conversation centered around timeless investing wisdom. Drawing from a vibrant thread in the Rational Reminder community, they unpack dozens of quotes that distill decades of financial insight into actionable mantras. What begins as a curated list of one-liners quickly evolves into a masterclass on the behavioral and practical realities of long-term investing. From "pay yourself first" to "diversification is the only free lunch," Ben and Dan explore how psychological resilience, humility, and clear planning matter more than predictive genius. The quotes spark deep discussions on topics ranging from portfolio construction and risk perception to fees, fear, and investor behavior—each one contextualized with real-world examples.   Key Points From This Episode: (0:04) Celebrating 7 years of the podcast and its growing impact across video and audio platforms. (1:33) Reflecting on PWL's evolution and the value-aligned advisors looking to join. (8:00) Introducing the main topic: timeless investing quotes from the Rational Reminder community. (10:24) "Pay yourself first": Why savings matter more than returns early on. (14:06) The flaws in one-size-fits-all savings rules like "save 10% of your income." (15:07) "The investor's worst enemy is himself": Behavioral finance and investor psychology. (17:17) "This time is different": Templeton's warning against market narratives and FOMO. (20:31) "Have a philosophy you can stick with": Why strategy persistence matters more than perfection. (23:59) ARK as a case study: Conviction versus performance-chasing. (26:38) Buffett on risk: Be ready for 50% drawdowns—even in diversified portfolios. (28:58) The global market portfolio: Sharpe and Fama's starting point for asset allocation. (31:50) "Far more money is lost preparing for corrections": Lynch on market timing mistakes. (35:18) Volatility is emotional, not just mathematical—especially in crises like COVID or 2008. (40:29) Charles Ellis: "Risk is not having the money when you need it." (42:08) "Volatility is the price of admission": Embracing risk to pursue long-term returns. (44:30) Ken Fisher: "Normal returns are extreme." Why market behavior is rarely average. (47:16) "Risk is what's left when you think you've thought of everything." Planning for the unknown. (49:07) Life has a fat tail: LTCM and the perils of underestimating extreme events. (50:25) "Make sure you're at the table, not on the menu": Cochrane on avoiding bad financial products. (52:31) Bogle: "We get precisely what we don't pay for." Why low-cost beats high-fee. (55:13) Trading and over-monitoring: Why "doing less" often means better returns. (57:02) "It ain't what you don't know…": Humility in the face of market uncertainty. (59:26) "Diversification is the only free lunch": Reducing risk without reducing expected return. (1:00:35) Bogle: "Don't look for the needle. Just buy the haystack." (1:02:38) Focus on what you can control: Savings, costs, asset allocation—not market returns. 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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Dan Bortolotti — https://pwlcapital.com/our-team/ Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310 Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

What if index funds weren't as "passive" as you think? In this episode of the Rational Reminder, we are joined by Jim Rowley, Global Head of Investment Implementation Research, and Andy Mack, Head of US Equity Portfolio Management at Vanguard. These two experts offer a rare, behind-the-scenes look into what it really takes to run some of the world's largest index funds—and it's far from "set it and forget it." From real-time trading decisions to managing $7 trillion globally, Jim and Andy walk us through how Vanguard implements index strategies with a precision that rivals any active manager. They challenge the traditional labels of passive versus active and show how thoughtful implementation, securities lending, FX execution, and IPO participation can add real value for investors—even in low-cost index products. Key Points From This Episode: (0:04) Why Vanguard's team was the ideal follow-up to Marco Sammon's index research (1:55) Why index funds aren't as simple as they seem: rebalancing, risk, and strategy (2:50) "Passive" is a misnomer: why index fund management involves active decisions (4:42) What excites Jim and Andy about index fund implementation (7:16) Risk-managed opportunities: how Vanguard adds value during secondary offerings (8:02) Debunking the active vs. passive label—think in terms of strategy characteristics (9:41) The subjective calls behind index construction and market definitions (12:00) The goal of a market-cap weighted index fund and how Vanguard tracks it (13:28) Why tracking error matters—and when it becomes a business risk (15:48) Indexing's advantage: predictable relative performance for portfolio construction (16:15) The real complexity of daily index fund trading and execution strategy (17:16) Vanguard's unique approach: PMs and traders are the same person in equities (18:52) The scale of VTI: how 24 global PMs manage trillions across time zones (20:48) Why Vanguard's culture treats every trade like it's client money (22:24) Andy's story of building Vanguard's FX desk and the hundreds of millions saved (24:04) Quant vs. human judgment in index implementation—why both matter (26:50) How fixed income index funds balance risk, liquidity, and security selection (27:46) Tools traders use to minimize price impact: algos, limits, and timing strategies (29:09) How index rebalancing impact has decreased thanks to market evolution (31:36) The hidden mechanics behind index inclusion/exclusion and price effects (33:40) Do index funds distort prices? Vanguard's view on elasticity and ownership (35:55) Stock dispersion and the case for continued price discovery (38:09) Why using passive funds doesn't mean being a passive investor (43:15) Jim's research: how "passive" funds are actively deployed by advisors (50:43) How Vanguard handles IPOs, buybacks, and market composition shifts (54:45) Active corporate action management: cash mergers, elections, and strategy (55:27) Responding to Marco Sammon's critiques on market timing and turnover (58:55) What would change if rebalancing were less frequent? (1:00:34) How securities lending and market advocacy add ongoing value (1:04:42) Should Vanguard launch a flexible, non-indexed total market fund? (1:06:26) Andy's biggest concern: system risks and rebalance day challenges (1:07:08) Jim's biggest concern: index funds aren't a free pass—investors still need discipline (1:08:03) Defining success: alignment with investors and living a balanced life 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 — info@rationalreminder.ca Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Dan Bortolotti — https://pwlcapital.com/our-team/ Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

What if early RRSP withdrawals aren't always the tax-smart move they're made out to be? In this special AMA edition of the Rational Reminder podcast, Ben and Cameron are joined by PWL Financial Planner Louai Bibi for a wide-ranging discussion on RRSP decumulation strategies, insurance planning, and the practical complexities that real clients face when theory meets reality. Ben walks through a listener's case study and shares insights from colleague Melissa on why early RRSP withdrawals (a.k.a. "meltdown" strategies) are not always beneficial—especially when viewed through a present-value lens. Louai contributes in-the-trenches experience, highlighting how client goals (estate vs. living net worth) and asset allocation can significantly influence what makes sense. In the second half, Louai delivers a comprehensive walkthrough of how PWL approaches life, disability, and critical illness insurance planning—not as salespeople, but as fiduciaries. You'll hear why the right coverage isn't one-size-fits-all, how survivor models are used to project financial impacts, and why the smallest, cheapest policy can still make a life-changing difference.   Key Points From This Episode: (0:00:04) Introduction and full-circle moment: Louai Bibi joins the show. (0:01:48) Reflections on the first PWL employee summit and One Digital integration. (0:06:30) Upcoming Rational Reminder meetups in Victoria and Vancouver. (0:07:40) Steve's question: Should he be melting down his growing RRSP? (0:09:15) Ben outlines a detailed client case where early withdrawals had minimal benefit. (0:12:10) Key takeaway: Present value of taxes matters more than total lifetime taxes. (0:13:50) Melissa's advice: Model your specific situation, not just follow YouTube tips. (0:15:56) Louai adds: The impact on future investment growth and taxable account drag. (0:17:28) Systematically reviewing RRSP strategies annually in November. (0:21:12) Taxes and portfolio construction: Home country bias, withholding tax, and more. (0:22:11) The importance of tax diversification—lessons from the capital gains inclusion saga. (0:23:11) RESP withdrawals and CRA's definition of "reasonable" expenses. (0:25:41) Fiduciary standards in Canada: Why sweeping change is unlikely. (0:26:29) Most influential ideas from 300+ episodes: Market beliefs, information overload, and Die With Zero. (0:34:36) Time, meaning, and memories: A shift in life perspective through the podcast. (0:38:47) Louai's top 3 lessons: Unified philosophy, consumption smoothing, and homeownership myths. (0:42:21) Deep dive: How PWL approaches life, disability, and critical illness insurance. (0:45:00) Life insurance: Survivor modeling, planning trade-offs, and permanent vs. term. (0:51:32) Disability insurance: Hidden risks in group coverage and income replacement importance. (0:56:36) Critical illness insurance: A real story about an inexpensive policy that changed a life. (1:00:07) Ben's experience with testicular cancer and hindsight on CI coverage. (1:01:45) Teaser: A new disclaimer for reading podcast reviews. (1:02:08) After-show: MobLand, The Sopranos, and the nostalgia of Animal Kingdom.   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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Louai Bibi — https://pwlcapital.com/our-team/ Louai Bibi on LinkedIn - https://ca.linkedin.com/in/louaibibi Louai Bibi on X -  https://x.com/louaibibi   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

What happens when your favourite financial educator's identity is hijacked by scammers? In this episode, Ben and Cameron pull back the curtain on a disturbing but increasingly common reality: sophisticated scammers using Ben's name, voice, and online content to steal from unsuspecting investors. Ben breaks down exactly how these scams work—everything from fake WhatsApp investment groups and cloned emails to AI-generated voice notes and "pig butchering" scams that promise guaranteed returns. You'll hear about pump-and-dump operations, shady PDFs full of financial nonsense, and how scammers prey on optimism, credibility, and fear of missing out.   Key Points From This Episode:   (0:04) Why the Rational Reminder podcast builds connections—and unintended consequences of trust (1:58) The hidden value of the podcast's reach: referrals and relationships that can't be measured (4:03) How a last-minute topic pivot turned into an urgent discussion on scams (5:24) Why investment scams are more sophisticated—and dangerous—than ever (6:16) AI voice clones and impersonation: How deepfakes make scams harder to spot (9:26) Why specific scam education works better than general warnings (12:29) Source credibility: Why scammers use trusted names to win trust fast (15:23) Ben's firsthand story of infiltrating a fake "Ben Felix" WhatsApp trading group (19:57) Pump-and-dump in real time: How Ben tracked a fraudulent stock scam (23:39) The email scam that used Ben's name to pitch "secret" investments (25:08) YouTube comment scams: the "fake advisor" trap and pig butchering explained (31:15) How scammers use financial jargon that sounds smart—but means nothing (34:52) The classic red flag: promises of guaranteed, high returns with zero risk (41:23) Financial planning hot takes: unconventional views from the Rational Reminder Community (49:44) Upcoming road trips and community meetups for Rational Reminder listeners   Papers From Today's Episode: https://zbib.org/e42750e4157e468d83fc633b40ddb0d1   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 — info@rationalreminder.ca Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this episode, we welcome back Rob Carrick—one of Canada's most trusted personal finance journalists—for his third appearance on the Rational Reminder podcast. Rob recently retired after an incredible 27-year career at The Globe and Mail, where he shaped how millions of Canadians think about investing, advice, and their money habits. Rob joins Ben, Cameron, and Dan to reflect on the biggest lessons from his decades-long career, the state of Canadian financial advice today, and why young Canadians face headwinds unlike any previous generation. From the shift from mutual funds to ETFs and the rise of DIY investing to the dangers of overestimating stock returns and underestimating inflation's bite—Rob shares practical, timeless wisdom for every generation of investor. We also hear Rob's frank thoughts on how the financial industry fails seniors, why Canadians stick with the big banks despite better options, and what stay the course really means when markets inevitably crash again.    Key Points From This Episode: (0:00:04) Rob Carrick returns for his third appearance, marking his retirement from The Globe and Mail (0:06:39) Why it's harder than ever to be good with money in the social media age (0:08:19) How longer lifespans are reshaping traditional retirement timelines (0:09:51) The evolution of financial advice: from mutual fund sales to real planning (0:11:45) How regulation, ETFs, and self-interest changed the advisory industry (0:12:45) The rise of DIY investing in Canada: from brokers to discount online platforms (0:14:51) Why some investors still struggle to embrace ETFs (0:17:11) The flip side of frictionless DIY investing—when simplicity fuels speculation (0:18:19) How realistic are today's stock return expectations? (0:20:03) The true challenge isn't average returns—it's enduring the volatility (0:24:01) Why staying the course should really mean buying the dip (0:26:04) The generational reality check: how boomers bought homes and why today's young people can't (0:29:03) How advisors can adjust advice for younger clients facing new headwinds (0:31:39) Should 25-year-olds give up or go all in? Rob's advice for young investors (0:35:29) The myth of home-run investing and why steady, boring investing works (0:37:04) Why inflation has done more damage than any stock market crash (0:39:50) How the financial industry ignores seniors—and what needs to change (0:43:32) Canadians' blind loyalty to big banks and why you should try an alternative (0:46:29) How Rob will define success in retirement—and his parting advice for listeners 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 — info@rationalreminder.ca Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Dan Bortolotti — https://pwlcapital.com/our-team/ Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310 Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Episode 108: William Bernstein - https://rationalreminder.ca/podcast/108   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this episode, we're joined by Martijn Cremers, Dean of the Mendoza College of Business at the University of Notre Dame and co-author of the groundbreaking 2009 paper that introduced the concept of Active Share. Martijn brings fresh nuance to the long-standing debate over active versus passive management, challenging decades of conventional wisdom built on the foundational 1997 Carhart paper. With his comprehensive research, Martijn argues that dismissing active management may be overly simplistic—especially in less efficient markets like bonds, small-cap equities, or emerging markets. Together, we explore how empirical support for passive superiority has softened in recent decades, the overlooked structural flaws in performance benchmarks, and how closet indexing quietly undermines the active management space. Martijn outlines the three pillars of active success—skill, conviction, and opportunity—and makes a compelling case for patient, high active share strategies that persist over time.  Key Points From This Episode:   (0:01:24) Introduction to Martijn Cremers and his influential work on Active Share (0:04:15) Breaking down the "conventional wisdom" on active management post-Carhart (0:07:19) Why passive benchmarks like Fama-French factors may create misleading comparisons (0:09:38) Reviewing persistence of outperformance in high active share funds (0:12:40) Evaluating Sharpe's arithmetic and how market evolution challenges zero-sum assumptions (0:15:58) The long-term decline of active funds and the influence of concentrated indexes (0:18:30) The paradox of skill, ETFs with high active share, and the survival of active managers (0:21:18) Revisiting active management in underexplored asset classes: bonds, small caps, emerging markets (0:23:20) The definition and calculation of Active Share (0:25:01) Active Share vs. Tracking Error: complementary tools, not substitutes (0:27:22) What level of active share signals closet indexing? Why 60–70% is the key threshold (0:30:49) Performance persistence and why combining high Active Share with patience matters (0:34:05) The concept of the "active fee" and how much you're really paying for stock selection (0:36:51) Why fund size and team changes can erode active share (0:38:17) Three pillars of successful active management: skill, conviction, and opportunity (0:40:13) The challenge of being a patient manager in an impatient world (0:42:25) How Active Share was received by academics and practitioners (0:44:18) Responding to critics: the 2016 FAJ paper "Deactivating Active Share" (0:46:56) Why dispersion in high active share funds can enhance portfolio diversification (0:49:21) Who should pursue high active share strategies—and who shouldn't (0:51:40) Active share in fixed income: Why passive bond funds are often far from passive (0:53:51) Key structural differences between equity and bond indexing (0:55:25) Why bond index funds have high active share and hidden tracking error (0:57:36) Why positive skewness (a key argument for equity indexing) doesn't apply to bonds (0:59:22) Performance of active bond funds: modest but consistent outperformance (1:00:02) Why active bond funds remain popular: liquidity, trading frictions, and benchmark limitations   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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Dan Bortolotti — https://pwlcapital.com/our-team/ Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310 Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Episode 316: Andrew Chen - https://rationalreminder.ca/podcast/316 Episode 212: Ralph S.J. Koijen - https://rationalreminder.ca/podcast/212 Episode 220: Jonathan Berk & Jules Van Binsbergen - https://rationalreminder.ca/podcast/220 Episode 346: Hendrick Bessembinder - https://rationalreminder.ca/podcast/346   Papers From Today's Episode: https://zbib.org/2224f8de634743fb8f33a68009b8fcff   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

What if holding just a few "winning" stocks is riskier than it seems? In this episode, Ben and Cameron explore the hidden dangers of concentrated portfolios and unpack the data that makes a strong case for diversification. Drawing from research by Hendrik Bessembinder, J.P. Morgan, and others, Ben lays out the harsh reality behind individual stock returns: the odds are stacked against long-term success. From skewed return distributions and catastrophic losses to behavioral traps like the endowment effect and familiarity bias, this conversation breaks down why most stock pickers lose—and why diversification remains the only "free lunch" in investing. Whether you're holding onto a single stock for tax reasons, overconfidence, or just inertia, this episode is a must-listen reality check on portfolio risk. They also share thoughts on advisor adoption of indexing, the slow shift in Canada, and how a Rational Reminder YouTube video sparked debate between stock pickers and indexers in the comments section. For anyone navigating concentrated positions—voluntarily or otherwise—this episode is packed with data-driven insight and real-world takeaways. Key Points From This Episode:   (0:00) Welcome to Episode 363: catching up in person and the value of working together in-office. (1:07) Why advisors are slow to adopt indexing—and how culture, compensation, and inertia play a role. (2:58) Demand is rising: indexing awareness among young advisors and investors continues to grow. (4:08) Main topic: The hidden risks of individual stock concentration. (5:40) The Nortel example: taxes, timing, and the illusion of "free" stock. (6:51) Individual stocks are far riskier than most people realize—especially recent winners. (9:09) Most investors hold between 3–7 stocks. Why that's a problem. (11:29) Portfolio concentration = fugu prepared by an amateur chef. (12:45) Diversification reduces risk without reducing expected return. (14:04) JP Morgan's "Agony & Ecstasy" report: 44% of stocks suffer catastrophic losses. (16:26) Why investors overweight the chance of a big win and underweight the risk of losses. (17:07) The reality of skewed returns: a few big winners, many losers. (24:35) The 2023 study on concentrated stock positions: recent top performers underperform the most. (28:40) How many stocks do you need for real diversification? Way more than 20–30. (32:00) Wealth dispersion and the long-term consequences of concentration. (35:24) Why even 100-stock portfolios only beat the market 47.5% of the time. (36:55) Taxes, control, and psychological hurdles make diversifying even harder. (38:14) Diversification depends on your preference for risk and skewness—but beware the odds. (39:08) Behind the scenes: Ben's research process and content development workflow. (43:14) Ben's guest appearance on Morningstar's The Long View. (44:00) Meetups, t-shirt scarcity, and what's next for PWL outreach.   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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/` Episode 346: Hendrik Bessembinder - https://rationalreminder.ca/podcast/346 Papers From Today's Episode:    'The Agony & The Ecstasy' - https://privatebank.jpmorgan.com/nam/en/insights/latest-and-featured/eotm/the-agony-the-ecstasy 'Why Index Works' - https://www.top1000funds.com/wp-content/uploads/2017/07/Why-indexing-works.pdf 'Underperformance of Concentrated Stock Positions' - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4541122 'How Many Stocks Should You Own?' - https://ndvr.com/journal/how-many-stocks-should-you-own 'Fund Concentration: A Magnifier of Manager Skill' - https://discovery.researcher.life/article/fund-concentration-a-magnifier-of-manager-skill/67964b7ccc9d3cae87761f6ef19241a0   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

What if the hardest part of investing isn't building a portfolio—but sticking to it? In this AMA edition of the Rational Reminder podcast, Ben Felix and Dan Bortolotti tackle listener questions ranging from sustainable retirement withdrawals to the dangers of structured products, with plenty of philosophical insights on risk, behavior, and financial planning. The episode opens with a deep dive into the 4% rule, exploring how time horizon, asset allocation, and global data can shift the definition of "safe." They also explore the behavioral challenges of the "boring middle" of investing and why consistency may be the greatest alpha. Other standout segments include a sharp critique of bank-sold structured notes, an evidence-based takedown of trend following, and a fascinating discussion on the long-term impact of demographic shifts and index investing. Throughout, Ben and Dan blend technical insight with practical wisdom and academic research, delivering a thoughtful and entertaining conversation for both DIY investors and those working with advisors.   Key Points From This Episode: (0:01:07) What the latest data says about safe withdrawal rates, especially for early retirees with 100% equity exposure. (0:08:45) How variable vs. fixed withdrawals affect outcomes—and the trade-offs retirees must consider. (0:17:01) The behavioral risks of the "boring middle" and how automation or advice helps investors stay disciplined. (0:26:13) Reflections on market crashes—why hindsight downplays the emotional reality of volatility. (0:33:27) Commission conflicts: Why bank advisors push structured notes and the incentives behind them. (0:44:22) Education vs. malice: Are bad financial advisors untrained, conflicted, or both? (0:49:08) Are structured notes ever justified? (Spoiler: very rarely.) (0:56:44) Trend following: Legitimate strategy or fancy market timing? Examining the live track records. (1:02:52) Diversifying your life like a portfolio: Applying the PERMA model to personal growth. (1:10:18) The one use of leverage that actually makes sense—and why most others don't. (1:14:20) Will aging demographics crash ETF markets? What the data and theory suggest. (1:19:02) Why even complex macro trends don't justify deviating from a simple, low-cost investment plan.   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 — info@rationalreminder.ca Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Dan Bortolotti — https://pwlcapital.com/our-team/ Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310 Episode 261: Felix Fattinger - https://rationalreminder.ca/podcast/261 Episode 314: Valentin Haddad - https://rationalreminder.ca/podcast/314 Episode 302: Michael Green - https://rationalreminder.ca/podcast/302 Episode 222: Cassie Holmes - https://rationalreminder.ca/podcast/222 Episode 278: Juhani Linnainmaa - https://rationalreminder.ca/podcast/278 Episode 212: Ralph S.J. Koijen - https://rationalreminder.ca/podcast/212 Episode 322: Marco Sammon — https://rationalreminder.ca/podcast/322Marco Sammon   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

Today, Ben plays lone host for the first time as we welcome Alex Edmans to the show. Alex is a Professor of Finance at London Business School as well as an accomplished speaker, author, investment banker, and financial advisor. To start, Alex describes his involvement in the formation of a new law in the UK before defining 'misinformation' and where confirmation bias fits in. Then, we assess the impact severity of confirmation bias, biased search versus biased interpretation, the role of generative AI in confirmation bias, and the levels of susceptibility within confirmation bias. We also explore the role of black-and-white thinking in concealing the truth, Alex's Ladder of Misinference as seen in May Contain Lies, the 10,000-hour rule and other famous statements of misinformation, and how the idea of a narrative may influence how people interpret and misinterpret facts. We end with how to guard against the plague of data mining in research, data as evidence and what this implies for evidence in financial economics, and Alex shares helpful advice for determining truth in any circumstance.   Key Points From This Episode:   (0:03:27) Alex Edmans walks us through the erroneous evidence that influenced a new UK law. (0:07:13) Misinformation; living in a post-truth world; and where confirmation bias fits in. (0:12:06) The severity of confirmation bias, and biased search versus biased interpretation. (0:18:19) Unpacking generative AI and the susceptibility thresholds of confirmation bias.   (0:21:25) How black-and-white thinking makes the truth more elusive. (0:25:40) Understanding Alex's Ladder of Misinference as seen in May Contain Lies. (0:28:17) Debunking the 10,000-hour rule and other enduring statements of misinformation. (0:38:10) The second step on the Ladder of Misinference: Why facts are not data. (0:42:42) How the idea of a narrative influences how people interpret or misinterpret facts. (0:44:25) Why data is not evidence, and examining the plague of data mining in research. (0:48:36) Guarding against data mining and the consequences of investing with misinformation.   (0:53:01) When data is evidence, and what this says about evidence in financial economics. (0:55:49) Why evidence may not be proof. (0:59:14) Practical advice for seeking the truth for important decisions and in everyday life.   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 — info@rationalreminder.ca Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Alex Edmans — https://alexedmans.com/  Alex Edmans on LinkedIn — https://www.linkedin.com/in/aedmans  Alex Edmans on X — https://x.com/aedmans  London Business School — https://www.london.edu/  Fulbright Fellows | MIT — https://ir.mit.edu/projects/fulbright-fellows/  Atkins — https://www.atkins.com/  'Matthew Walker's "Why We Sleep" Is Riddled with Scientific and Factual Errors' — https://guzey.com/books/why-we-sleep/  'Grit: The Power of Passion and Perseverance | Angela Lee Duckworth | TED' — https://www.youtube.com/watch?v=H14bBuluwB8    Books From Today's Episode:   May Contain Lies — https://maycontainlies.com/  Grow the Pie — https://mybook.to/Grow-the-Pie Outliers — https://www.amazon.com/Outliers-Story-Success-Malcolm-Gladwell/dp/0316017930  Why We Sleep — https://www.goodreads.com/book/show/34466963-why-we-sleep  Start with Why — https://www.amazon.com/Start-Why-Leaders-Inspire-Everyone/dp/1591846447  Grit — https://www.amazon.com/Grit-Passion-Perseverance-Angela-Duckworth/dp/1501111108    Papers From Today's Episode:   'CEO-Employees Pay Ratio, Employees' Productivity and Firm Performance: Evidence from UK' — https://www.researchgate.net/publication/391787593_CEO-Employees_pay_ratio_employees'_productivity_and_firm_performance_evidence_from_UK  'A Theory of Fair CEO Pay' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4294589    Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

What if "just buying the market" isn't the end of the story? In this episode, we are joined by Gerard O'Reilly, Co-CEO and Co-CIO of Dimensional Fund Advisors, for a deep dive into what really drives net investment returns. Gerard returns to the Rational Reminder podcast to explain the key principles that differentiate Dimensional's approach from traditional indexing—and why implementation, flexibility, and detail matter so much more than investors might think. We explore the concept of hidden costs in index investing, how index reconstitution and trading frictions erode returns, and the nuanced decisions that shape a market portfolio: defining the market, excluding low-returning stocks, optimizing tax efficiency, and more. Gerard breaks down how Dimensional's rules-based, evidence-backed process improves outcomes through smart exclusions (like IPOs and high asset-growth firms), precise trading, securities lending, and better handling of corporate actions. From the dangers of chasing low fees to the surprising benefits of thoughtful execution, this conversation is a masterclass in next-level investing.   Key Points From This Episode:   (0:01:07) Why Gerard was invited back: Dimensional's approach to hidden costs and net returns. (0:02:38) Looking beyond "index good, fees bad"—why investors should dig deeper. (0:04:21) Gerard's background: From Caltech rocket scientist to Dimensional co-CEO. (0:06:22) How Dimensional differs from market-cap weighted index funds. (0:08:42) Four components of net returns: Two increase returns, two decrease them. (0:12:45) Defining the market: Free float, liquidity thresholds, and dynamic inclusion. (0:17:52) How small-cap index definitions can create return differentials as high as 10%. (0:22:03) What securities Dimensional excludes—and why: low-profitability growth, high asset growth, IPOs, and REITs. (0:29:26) Why IPOs are excluded for 6–12 months and the mechanics behind inclusion. (0:33:16) Why Dimensional's exclusions aren't like traditional active management. (0:35:09) The "Great British Bake-Off" analogy: baking better portfolios with the same ingredients. (0:38:13) How securities lending boosts returns—and how Dimensional does it better. (0:42:09) Managing corporate actions (like M&A) to reduce cash drag. (0:45:18) How Dimensional deals with buybacks and new share issuance.  (0:47:29) Momentum, short-term reversals, and securities lending fees as trading signals. (0:50:36) Why Dimensional may lend out stocks that have negative momentum. (0:52:42) How trading costs affect net returns and Dimensional's execution edge. (0:56:06) Hidden costs of indexing: Index fund rebalancing and price impact. (1:03:19) Why focusing solely on fees is misleading—and what "value for service" really means. (1:06:18) DFUS: A case study of Dimensional's market series outperforming index funds. (1:08:44) How Dimensional builds portfolios with intentional tilts toward higher expected returns. (1:12:35) What excites Gerard: Expanding access, ETF innovations, and global growth.   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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Gerard O'Reilly — https://www.dimensional.com/us-en/bios/gerard-k-oreilly Dimensional Fund Advisors: https://www.dimensional.com/ Episode 322: Marco Sammon — https://rationalreminder.ca/podcast/322Marco Sammon  Episode 198: Gerard O'Reilly — https://rationalreminder.ca/podcast/198   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

For the first time as a host combination, Ben, Dan, and Cameron sit down to discuss the most controversial topics in personal finance. We begin with identity and how it informs decision-making. Then, we revisit the renting versus buying debate, why this remains a highly controversial topic, the ins and outs of income investing, and understating the fervor of dividend investing. We also unpack FIRE as a branch of self-help; how it informs happiness; and how personality influences one's approach to the FIRE principle. To end, we closely examine Bill Bengen's 4% rule, and the Aftershow encourages us to maintain high podcasting standards while revealing what you can look forward to in our latest Rational Reminder t-shirt release.    Key Points From This Episode:   (0:01:25) Cameron's positive LinkedIn experience regarding insurance.  (0:08:10) How identity informs decision-making.  (0:15:24) Why renting versus buying a home remains a controversial topic.  (0:27:50) Income investing, covered calls, and the fervor of dividend investing. (0:46:34) FIRE: Financial independence, retire early. (0:54:36) Unpacking FIRE as a branch of self-help, and the role of FIRE in happiness.  (1:07:07) How personality and identity inform one's approach to FIRE. (1:10:34) Addressing the 4% rule.  (1:14:16) The Aftershow: Setting and keeping high standards, and Rational Reminder t-shirts.    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 — https://www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.ca  Rational Reminder Merchandise — https://shop.rationalreminder.ca/ Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/  Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/  Episode 358: Eli Beracha: An Academic Perspective on Renting vs. Owning a Home — https://rationalreminder.ca/podcast/358  Episode 214: Jay Van Bavel: Shared Identities and Decision Making — https://rationalreminder.ca/podcast/214   Episode 260: Prof. James Choi: Practical Finance — https://rationalreminder.ca/podcast/260  Episode 273: Professor Samuel Hartzmark: Asset Pricing, Behavioural Finance, and Sustainability Rankings — https://rationalreminder.ca/podcast/273   Episode 95: Scott Rieckens (Playing with FIRE): Finding Financial Education, Perspective, and Freedom — https://rationalreminder.ca/podcast/95  Episode 258: Prof. Meir Statman: Financial Decisions for Normal People — https://rationalreminder.ca/podcast/258   Bonus Episode - Prof. Meir Statman: A Wealth of Well-Being — https://rationalreminder.ca/podcast/2024/4/18/bonus-episode-prof-meir-statman-a-wealth-of-well-being   Episode 230: Prof. Robert Frank: Success, Luck, and Luxury — https://rationalreminder.ca/podcast/230   Episode 135: William Bengen: The 5% Rule for Retirement Spending — https://rationalreminder.ca/podcast/135  Episode 164: Comprehensive Overview: The 4% Rule — https://rationalreminder.ca/podcast/164   Episode 357: AMA #6 — https://rationalreminder.ca/podcast/357  Morgan Housel — https://www.morganhousel.com/   'Renting vs. Buying a Home: What People Get Wrong' — https://www.youtube.com/watch?v=j4H9LL7A-nQ   MobLand — https://www.imdb.com/title/tt31510819/  Ray Donovan — https://www.imdb.com/title/tt2249007/  Animal Kingdom — https://www.imdb.com/title/tt5574490/    Books From Today's Episode:    Rich Dad Poor Dad — https://www.amazon.com/Rich-Dad-Poor-Teach-Middle/dp/1612680194    Self Help, Inc.: Makeover Culture in American Life — https://www.amazon.com/Self-Help-Inc-Makeover-American/dp/0195337263    Papers From Today's Episode:    'Motivated Numeracy and Enlightened Self-Government' - https://www.cambridge.org/core/journals/behavioural-public-policy/article/abs/motivated-numeracy-and-enlightened-selfgovernment/EC9F2410D5562EF10B7A5E2539063806    'Nevertheless, They Persist: Cross-country differences in homeownership behavior' — https://www.sciencedirect.com/science/article/abs/pii/S1051137721000590    'Rent or Buy? Inflation Experiences and Homeownership within and across Countries' — https://www.researchgate.net/publication/379974645_Rent_or_Buy_Inflation_Experiences_and_Homeownership_within_and_across_Countries     'Dividend Policy, Growth, and the Valuation of Shares' — https://www.researchgate.net/publication/24102112_Dividend_Policy_Growth_and_the_Valuation_Of_Shares    'Chapter 3 - Behavioral Household Finance*' — https://www.sciencedirect.com/science/article/abs/pii/S2352239918300046    'Common Risk Factors in the Returns on Stocks and Bonds' — https://www.sciencedirect.com/science/article/abs/pii/0304405X93900235     'The Dividend Disconnect' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2876373    'A Devil's Bargain: When Generating Income Undermines Investment Returns' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4580048    'The Financialization of Anti-Capitalism? The Case of the "Financial Independence Retire Early" Community' — https://www.tandfonline.com/doi/full/10.1080/17530350.2021.1891951    'High Income Improves Evaluation of Life But Not Emotional Well-Being' — https://www.pnas.org/doi/10.1073/pnas.1011492107     'Income And Emotional Well-Being: A Conflict Resolved' — https://www.pnas.org/doi/10.1073/pnas.2208661120    Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

Dr. Eli Beracha has recently been recognized by The Journal of Real Estate Literature as the world's third best in research productivity, and today, we are honoured to be joined by this top industry expert to bring more clarity to the renting versus buying debate. We use Dr. Beracha's 'Lessons from Over 30 Years of Buy Versus Rent Decisions: Is the American Dream Always Wise?' and 'Housing Ownership Decision-Making in the Framework of Household Portfolio Choice' papers as the basis for most of today's conversation, beginning with why owning a home is deeply rooted in the perception of the American dream. Then, we discover how to measure the true price of home ownership, how the American dream and other psychological factors influence one's decision-making, how hard assets perform compared to stocks and bonds, and why renting comes out ahead of buying nine times out of ten. We also learn why owning is for the inherently wealthy, the ins and outs of Dr. Beracha's rent versus buy index, the rate of property appreciation versus stock appreciation, and how renting influences saving habits compared to owning a home. To end, we dive deeper into the risk-adjusted wealth accumulation of home ownership versus renting, and Dr. Beracha compares the efficiency of the real estate market to the stock market while detailing everything to take into account to be fully-equipped to make your decision to rent or buy.   Key Points From This Episode:   (0:00:00) Why Dr. Eli Beracha is one of the world's best to discuss renting vs buying a home.  (0:05:32) Understanding why owning a home is deeply entrenched in the American dream. (0:06:10) The various aspects to consider when measuring the price of home ownership.  (0:07:57) Weather Dr. Beracha agrees with the adage "renting is throwing money away." (0:09:36) What the price of a home should represent, and how psychology influences decisions.  (0:16:48) Unpacking Dr. Beracha's 2012 paper subtitled, 'Is the American Dream Always Wise?'  (0:19:51) Hard assets versus stocks and bonds, and why renting pips buying most of the time.  (0:26:00) Why many still choose to own a home despite long-term financial discrepancies.   (0:30:53) The ins and outs of Dr. Beracha's rent versus buy index.  (0:39:46) Why homeowners are usually wealthier than renters even though renting is "cheaper." (0:42:03) Property appreciation, stock appreciation, and the renter's savings rate. (0:47:41) How home ownership influences saving habits compared to renting.  (0:49:46) The risk-adjusted wealth accumulation of home ownership versus renting. (0:58:40) Dr. Beracha compares the efficiency of the real estate market to the stock market.  (1:03:22) Everything you need to take into account to make your decision to rent or buy.   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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ 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/  Episode 325: Addressing 200+ Comments on Renting vs. Owning a Home — https://rationalreminder.ca/podcast/325   Episode 196: Sebastien Betermier: Hedging, Sentiment, and the Cross-Section of Equity Premia — https://rationalreminder.ca/podcast/196  Dr. Eli Beracha — https://www.theberachateam.com/  Dr. Eli Beracha on LinkedIn — https://www.linkedin.com/in/eli-beracha-b8082250/  Dr. Eli Beracha on Instagram — https://www.instagram.com/dreliberacha/  Tibor and Sheila Hollo School of Real Estate | FIU — https://business.fiu.edu/academics/departments/real-estate/   KBIS Capital — https://kbiscapital.com/  Journal of Real Estate Literature — https://www.tandfonline.com/journals/rjel20    Papers From Today's Episode:    'Lessons from Over 30 Years of Buy Versus Rent Decisions: Is the American Dream Always Wise?' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1814227    'Housing Ownership Decision-Making in the Framework of Household Portfolio Choice' — https://www.tandfonline.com/doi/abs/10.1080/10835547.2017.12091472  'Findings from a Cross-Sectional Housing Risk-Factor Model' — https://www.researchgate.net/publication/236023682_Findings_from_a_Cross-Sectional_Housing_Risk-Factor_Model   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

Cameron joins Ben for his first AMA as we bring you the sixth edition of our Listener Questions and Investing Lessons mini-series. Diving right in, Ben and Cameron share their stance on the multi-host format of the Rational Reminder podcast before walking us through the new PWL Retirement Planning Tool. Then, we unpack our venture with OneDigital, recent changes at PWL Capital, how we make each episode of this show, and how we allocate our time across podcast and business responsibilities. We also examine our protocol regarding guests, why Cameron and Ben would never gamble with their own money, how the human condition prevents the full comprehension of investing as a principle, and smart money moves to make under current market conditions. To end, we discuss the effects of a capital gains tax increase, common mistakes to avoid in managing personal finances, programs and technologies for financial advisors, and the After Show, which ends with an important discussion on testicular cancer.          Key Points From This Episode:   (0:00:00) How Ben and Cameron feel about the multi-host format of this podcast. (0:01:12) The new PWL Retirement Planning Tool, developed by Braden Warwick.  (0:03:13) Joining OneDigital and other PWL changes from the past four months.  (0:09:05) Behind the scenes: Making a Rational Reminder podcast episode. (0:12:38) Allocating time for research, preparation, creating content, and business. (0:17:27) How guests inform our approach to research and preparation.  (0:19:29) The reasons why we're not risk-averse but have no appetite for gambling. (0:24:26) Why investing has been largely solved, except for the human aspect.  (0:30:13) The most "rational" investing practices under current market conditions.  (0:34:25) How to approach a capital gains tax increase, and why banks do what they do. (0:38:03) The most costly mistakes when it comes to managing personal finances. (0:40:12) Why we don't offer advice-only planning for DIY investors. (0:44:07) Financial app tips and tricks and programs and technologies to be aware of.  (0:48:23) The After Show: Alternate personalities, noise filtering, and testicular cancer.     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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Braden Warwick on LinkedIn — https://www.linkedin.com/in/braden-warwick-a40b48a3  PWL Capital Retirement Planning Tool — https://research-tools.pwlcapital.com/research/retirement  OneDigital — https://www.onedigital.com/   Episode 341: PWL's Next Chapter — https://rationalreminder.ca/podcast/341  Episode 355: Do Index Funds Incur Adverse Selection Costs? — https://rationalreminder.ca/podcast/355   Episode 200: Prof. Eugene Fama — https://rationalreminder.ca/podcast/200  Episode 100: Prof. Kenneth French: Expect the Unexpected — https://rationalreminder.ca/podcast/100  Episode 93: Cliff Asness from AQR: The Impact of Stories, Behaviour and Risk — https://rationalreminder.ca/podcast/93  Episode 270: What Happened to All the Billionaires? with Victor Haghani and James White — https://rationalreminder.ca/podcast/270   Episode 11: Robb Engen: Simple vs. Complex — https://rationalreminder.ca/podcast/11  Episode 203: S*** (Misguided) Financial Advisors Say — https://rationalreminder.ca/podcast/203  The Money Scope Podcast — https://moneyscope.ca/   Financial Advisor Success Ep 433: When You 10X Your Advisory Firm to over $20M of Revenue…And Want to 10X Again, with Cameron Passmore — https://www.kitces.com/blog/cameron-passmore-pwl-capital-10x-revenue-growth-advisory-firm/  The Podcast Consultant — https://thepodcastconsultant.com/    The Long View — https://www.morningstar.com/podcasts/the-long-view   Eli Beracha on LinkedIn — https://www.linkedin.com/in/eli-beracha-b8082250/   CIBC Mutual Funds — https://www.cibc.com/en/personal-banking/investments/mutual-funds.html  Microsoft Excel — https://www.microsoft.com/microsoft-365/excel  Python — https://www.python.org/  Monte Carlo — https://www.montecarlodata.com/  ChatGPT — https://chatgpt.com/    Papers From Today's Episode:    'The Arithmetic of Active Management' — https://www.jstor.org/stable/4479386  'Lifetime Portfolio Selection under Uncertainty: The Continuous-Time Case' — https://www.jstor.org/stable/1926560   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

How do we make the most important decisions in life with intention rather than impulse? In this episode, we are joined by Abby Davisson to unpack her practical framework for better decision-making. Abby is a Yale and Stanford alumnus, a former executive at Gap Inc., and the co-author of Money and Love. She is also the founder of the Money and Love Institute, which is dedicated to helping individuals and professionals navigate life's most significant decisions. In today's conversation, Abby unpacks her practical, research-backed "5Cs Framework" for decision-making and demonstrates how it can guide all the decisions couples need to make through life. We explore the idea of financial transparency, progressive pooling of finances, equitable division of housework, deciding when to outsource help, and navigating career pauses or transitions. Abby also shares how she applied the framework in her own life and offers an honest perspective for individuals navigating change. Join us to learn how to approach choices and the "life stuff" that doesn't always show up in spreadsheets with Abby Davisson. Tune in now! Key Points From This Episode:   (0:04:16) Myra Strober's Work and Family course and how it led to writing Money and Love. (0:07:21) The drivers of poor decisions and the five Cs in Abby's decision-making framework. (0:11:15) Discover the four big topics every couple should discuss and how to approach them. (0:15:09) Learn the fundamentals of how couples should handle and combine money. (0:17:49) Why division of housework is vital, how to approach it, and the role of gender norms.  (0:21:49) Outsourcing tasks and the impacts of not taking the division of housework seriously. (0:24:27) How to decide where to live as a couple, and whether to rent or buy a house. (0:29:08) A real-life example of how to apply to 5C Framework for decision-making.  (0:33:34) Navigating career ambitions, division of childcare, and stay-at-home parenting. (0:37:16) Hear how the 5C Framework helps deal with separation and family dynamics. (0:40:31) Ways the concept of retirement has changed and why families should discuss it. (0:44:12) Find out how involved adult children should be in their parents' retirement planning. (0:47:02) Advice for finding the right life partner and how to stress-test a relationship. (0:52:05) What to consider before getting married and having children, and why. (0:55:37) Abby's biggest lessons from writing the book and her 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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Abby Davisson — https://www.abbydavisson.com/ Abby Davisson — https://linkedin.com/in/abbydavisson/ Money and Love Institute — https://moneyloveinstitute.com/ Practically Deliberate Newsletter — https://abbydavisson.substack.com/ Gap Inc. — https://www.gapinc.com Myra Strober on LinkedIn — https://linkedin.com/in/myra-strober-a8b2846a/ Eve Rodsky — https://www.everodsky.com/ Carefull — https://getcarefull.com/ Baba Shiv — https://linkedin.com/in/baba-shiv-a859882/   Books From Today's Episode: Money and Love — https://www.moneylovebook.com/   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

Marco Sammon joins Ben and Dan to unpack his latest paper, 'Index Rebalancing and Stock Market Composition', beginning with how Marco's work (co-written by John Shim) compares to the Nobel Prize-winner Bill Sharpe's paper, 'Arithmetic of Active Management.' We investigate the missing links in Sharpe's logic before defining "the market" and ascertaining the main objectives of index funds. Then, we dive deeper into the mechanics of Marco's paper, index and market tracking errors, why delayed rebalancing is more beneficial than instant rebalancing, and the role of technology in the modern tracking error obsession. We also assess the passive-active spectrum of index funds in portfolio management and learn how investors should choose their optimal excess return. To end, Marco shares practical applications for improving performance benchmarked against traditional indexes, and The Aftershow is all about bridging the gap between PWL Capital and you, our listeners. Key Points From This Episode:   (0:00:00) Key takeaways from Marco Sammon's latest paper and how it compares to Bill Sharpe's 'Arithmetic of Active Management.' (0:08:10) Marco describes what's missing from the 'Arithmetic of Active Management' logic. (0:09:11) Defining 'the market', the main objective of an index fund, and how index funds track the market. (0:15:57) The mechanics of Marco's paper, 'Index Rebalancing and Stock Market Composition.' (0:18:38) Factor exposure, index and market tracking errors, and how often index funds trade. (0:26:28) Rebalancing less frequently; why delayed does better than instant rebalancing. (0:31:59) The tech run-up and lazy rebalancing, and the modern tracking error obsession.  (0:36:51) Assessing the passive-active spectrum of index funds in portfolio management. (0:41:02) Exploring how investors should decide on their optimal excess return.  (0:45:14) How the rising index fund ownership of stocks impacts the implicit cost of indexing (0:46:58) Practical ways to improve performance benchmarked against traditional indexes. (0:52:30) The Aftershow: Canadian finances, more airtime for Cameron, and PWL – OneDigital.    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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ 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/ Episode 322: Prof. Marco Sammon: How are Passive Investors Affecting the Stock Market? — https://rationalreminder.ca/podcast/322 Episode 200: Prof. Eugene Fama — https://rationalreminder.ca/podcast/200  Episode 268: Itzhak Ben-David: ETFs, Investor Behavior, and Hedge Fund Fees — https://rationalreminder.ca/podcast/268  Episode 112: Michael Kitces: Retirement Research and the Business of Financial Advice — https://rationalreminder.ca/podcast/112  Marco Sammon — https://marcosammon.com/  Marco Sammon on LinkedIn — https://www.linkedin.com/in/marco-sammon-b3b81456/  Marco Sammon on X — https://x.com/mcsammon19  Marco Sammon | Harvard Business School — https://www.hbs.edu/faculty/Pages/profile.aspx?facId=1326895  Marco Sammon Email — mcsammon@gmail.com  John Shim on LinkedIn — https://www.linkedin.com/in/john-shim-2931271b/  Vanguard — https://global.vanguard.com/  Sheridan Titman on LinkedIn — https://www.linkedin.com/in/sheridan-titman-226b0811/  Alex Chinko — https://alexchinco.com/  Erik Stafford | Harvard Business School — https://www.hbs.edu/faculty/Pages/profile.aspx?facId=6625  Itzhak (Zahi) Ben-David on LinkedIn — https://www.linkedin.com/in/ibendavi/  Bill Ackman on X — https://x.com/billackman   'Millennium Loses $900 Million on Strategy Roiled by Market Chaos' — https://www.bloomberg.com/news/articles/2025-03-08/millennium-loses-900-million-on-strategy-roiled-by-market-chaos   Bogleheads — https://www.bogleheads.org/   The Money Scope Podcast Episode 8: Canadian Investment Accounts — https://moneyscope.ca/2024/03/01/episode-8-canadian-investment-accounts/  The Wealthy Barber Podcast — https://thewealthybarber.com/podcast/   Financial Advisor Success Podcast — https://www.kitces.com/blog/category/21-financial-advisor-success-podcast/  Financial Advisor Success Podcast Episode 433: When You 10X Your Advisory Firm To Over $20M Of Revenue…And Want To 10X Again, With Cameron Passmore — https://www.kitces.com/blog/cameron-passmore-pwl-capital-10x-revenue-growth-advisory-firm/   OneDigital — https://www.onedigital.com/  The Longview Podcast: Ben Felix   Papers From Today's Episode:    'The Arithmetic of Active Management' — https://www.jstor.org/stable/4479386    'Index Rebalancing and Stock Market Composition: Do Index Funds Incur Adverse Selection Costs?' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5080459     'Luck versus Skill in the Cross-Section of Mutual Fund Returns' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1356021    'The Passive-Ownership Share Is Double What You Think It Is' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4188052    'Long-Term Returns on the Original S&P 500 Companies' — https://www.researchgate.net/publication/247884354_Long-Term_Returns_on_the_Original_SP_500_Companies     'The Price of Immediacy' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1001762   'Competition for Attention in the ETF Space' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3765063    'Passive in Name Only: Delegated Management and "Index" Investing' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3244991      Jeremy Stein — "Unanchored" Strategy   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

Beyond the sales pitches, acronyms, and product talk, what does it mean to be a financial planner? In this episode of the Rational Reminder Podcast, we sit down with long-time industry leader and advocate Jason Pereira. Jason is a Canadian financial planner with over 20 years of experience, dual CFP certification (Canada and US), and a passion for professionalizing the field. In our conversation, Jason shares details about his client-centred investment philosophy, explains why fiduciary duty is foundational, and unpacks the complexities of index fund adoption in Canada. We also delve into the barriers to transparent, evidence-based advice, the true role of a financial planner, the impact of the Fintech revolution, and the pros and cons of mortality pooling. He also challenges common myths surrounding financial planning, shares best practices for vetting financial advisors, and explains why the industry is long overdue for a transformation. Join us for career insights, cautionary tales, and forward-looking ideas that challenge the conventional thinking of what financial planning is, with Jason Pereira! Key Points From This Episode:   (0:05:13) Jason's core investment philosophy and perspective on factor-based indexing. (0:07:15) Environmental, Social, and Governance (ESG) trends and client conversations. (0:12:36) What fiduciary duty means, why it matters, and why some institutions fight against it.  (0:18:09) Unpack the complexities of why Canada is behind the US in index fund adoption. (0:20:52) Learn about the true role and common misconceptions of a financial planner. (0:24:30) Explore how technology and the rise of generative AI are changing financial planning. (0:31:55) How advisors can maintain strong personal relationships with clients in a digital world. (0:37:00) Find out what a high-quality financial plan looks like and what it covers. (0:39:44) His favourite financial planning-related argument to get into on the internet. (0:41:20) Uncover how mortality and annuities should influence financial planning. (0:48:06) Permanent life insurance explained: best use cases and when to avoid. (0:50:48) Jason shares his nerdiest and most broadly applicable financial planning advice. (0:53:29) He explains the best practices for estimating a client's life expectancy.  (0:56:48) A breakdown of financial planner designations and how to vet a financial planner. (1:03:59) Hear about his expert witness work and the costs of bad advice. (1:08:55) Discover why Jason chooses to fight against financial misinformation online. (1:11:18) The origins and vision of FPAC and Jason's 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/RationalRemind Rational Reminder on TikTok — www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.ca Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/` Jason Pereira — https://jasonpereira.ca/ Jason Pereira on Facebook — https://facebook.com/jasonpereirafinancialplanner/ Jason Pereira on X — https://x.com/jasonpereira Jason Pereira on LinkedIn — https://linkedin.com/in/pereirajm Jason Pereira on YouTube — https://youtube.com/@jasonperieraFP The Fintech Impact Podcast — https://jasonpereira.ca/the-fintech-impact-podcast-jason-pereira Conquest Planning — https://conquestplanning.com/en-ca/home Replit — https://replit.com/ FP Canada — https://fpcanada.ca/ Financial Planning Association of Canada (FPAC) — https://fpassociation.ca/ Episode 188: Prof. Ayelet Fishbach — https://rationalreminder.ca/podcast/188 Episode 236: Harold Geller — https://rationalreminder.ca/podcast/236   Papers From Today's Episode:    'Current Practices for Risk Profiling in Canada and Review of Global Best Practices' — https://osc.ca/sites/default/files/2021-02/iap_20151112_risk-profiling-report.pdf 'Financial Risk Tolerance: A Psychometric Review' — https://dx.doi.org/10.2139/ssrn.3088292   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

The fifth installment of our Ask Me Anything sessions begins with the inevitable volatility of the stock market as we urge investors to remain calm amidst recent US stock declines. Similarly, we unpack the historical resilience of stock markets and offer advice for dealing with market crashes before discussing why bonds are not the best strategy for boosting returns. We examine the proposed Alberta Pension Plan, the Rational Reminder Podcast guests whose impact still ripples across PWL, how to be a PWL-style advisor, and we revisit the DFA versus Vanguard debate. We also explain why spending rules aren't for us at PWL, the relationship between the amount to withdraw and the stock/bond allocation, and alternatives for short-term horizon investing, saving, and equities. To end, we hear feedback from Atti Ilmanen as well as reviews from listeners, but before all that, Mark McGrath shares bittersweet news! Stay tuned for an episode full of reflection, strategy, and insight.   Key Points From This Episode:   (0:01:13) The inevitability of market volatility and the historical resilience of stock markets. (0:13:04) How to approach a volatile market and advice for dealing with a market crash.  (0:18:06) Why bonds are not a return-enhancing strategy. (0:21:04) A brief examination of the proposed Alberta Pension Plan. (0:25:02) Impactful guests who have influenced how we work at PWL Capital. (0:33:25) How to be a PWL-style advisor. (0:35:37) Weighing Dimensional funds (DFA) against Vanguard and others.  (0:41:57) Why spending rules aren't really our thing.  (0:44:56) The relationship between the amount to withdraw and the stock/bond allocation. (0:49:50) Exploring alternatives for short-term horizon investing, saving, and equities. (0:57:00) An important announcement from Mark! (1:02:51) The Aftershow: feedback from Antti Ilmanen, listener reviews, and final thoughts.    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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ 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/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP Episode 248: Prof. William Goetzmann: Learning from Financial Market History — https://rationalreminder.ca/podcast/248   Episode 100: Prof. Kenneth French: Expect the Unexpected — https://rationalreminder.ca/podcast/100  Episode 352: Jessica Moorhouse: Everything But Money — https://rationalreminder.ca/podcast/352   Episode 316: Andrew Chen: "Is everything I was taught about cross-sectional asset pricing wrong?!" — https://rationalreminder.ca/podcast/316  Episode 224: Prof. Scott Cederburg: Long-Horizon Losses in Stocks, Bonds, and Bills — https://rationalreminder.ca/podcast/224  Episode 284: Prof. Scott Cederburg: Challenging the Status Quo on Lifecycle Asset Allocation — https://rationalreminder.ca/podcast/284  Episode 350: Scott Cederburg: A Critical Assessment of Lifecycle Investment Advice — https://rationalreminder.ca/podcast/350  Episode 89: Wade Pfau: Safety-First: A Sensible Approach to Retirement Income Planning — https://rationalreminder.ca/podcast/89  Episode 289: Retiring Retirement Income Myths with the Retirement Income Dream Team — https://rationalreminder.ca/podcast/289  Episode 122: Prof. Moshe Milevsky: Solving the Retirement Equation — https://rationalreminder.ca/podcast/122  Episode 59: Alexandra Macqueen: Financial Economics and Annuities: Rational Planning for Retirement — https://rationalreminder.ca/podcast/59  Episode 283: When Volatility is Risk, and Introducing The Money Scope Podcast — https://rationalreminder.ca/podcast/283  Episode 351: DFA vs. Vanguard — https://rationalreminder.ca/podcast/351  Episode 254: David Blanchett: Regret Optimized Portfolios, and Optimal Retirement Income — https://rationalreminder.ca/podcast/254  Episode 152: Evaluating Systematic Equity Strategies — https://rationalreminder.ca/podcast/152  Episode 347: The Case for Index Funds — https://rationalreminder.ca/podcast/347  Episode 281: Lifecycle Asset Allocation, and Retiring Successfully with Justin King — https://rationalreminder.ca/podcast/281  Episode 315: An Update from Avantis with Eduardo Repetto — https://rationalreminder.ca/podcast/315  Alberta Pension Plan — https://www.albertapensionplan.ca/  Financial Planning Association of Canada — https://www.fpassociation.ca/  Hook — https://www.imdb.com/title/tt0102057/  Antti Ilmanen | AQR — https://www.aqr.com/About-Us/OurFirm/Antti-Ilmanen    Books From Today's Episode:    The Great Depression: A Diary — https://www.amazon.com/dp/1586489011  Narrative Economics: How Stories Go Viral and Drive — https://www.amazon.com/dp/0691182299    Papers From Today's Episode:    'Negative Bubbles: What Happens after a Crash' — https://ssrn.com/abstract=3038658  'Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice' — https://ssrn.com/abstract=4590406   'Financially Sound Households Use Financial Planners, Not Transactional Advisers' — https://www.financialplanningassociation.org/sites/default/files/2023-01/APR19%20Blanchett.pdf  'Finding and Funding a Good Life' — https://pwlcapital.com/finding-and-funding-a-good-life/    Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

What if the key to financial success isn't just a better budget, but a better understanding of your relationship with money? In this episode of the Rational Reminder Podcast, Ben and Dan sit down with Jessica Moorhouse to delve into the ins and outs of personal finance. Jessica is a money expert, Accredited Financial Counsellor Canada®, speaker, and bestselling author of Everything but Money. She is also the host of the More Money Podcast, one of Canada's leading personal finance shows. During today's conversation, Jessica unpacks the difference between a financial planner and a counsellor and why empathy is the missing piece in personal finance. Find out how different emotions and early memories of money can influence our perspective on personal finance, hear why understanding your relationship with money is so important, and learn about common financial behaviours to avoid. Jessica also delves into the value of understanding past traumas, the power of intergenerational money experiences, and whether mental health or a financial foundation is more important. Tune in now!   Key Points From This Episode:   (0:02:50) Uncover the difference between a financial counsellor and a financial planner. (0:05:55) Her approach to working with clients and meeting their non-financial needs. (0:09:15) Find out what is missing in personal finance and why it is essential. (0:11:39) How shame impacts financial decision-making and common sources of shame. (0:14:50) Ways relative financial well-being and privilege shape our perspective of money. (0:19:46) Hear how to overcome financial shame and how it differs from feelings of guilt. (0:22:35) Rational versus irrational guilt and how fear affects financial decisions. (0:25:46) Learn about jealousy and envy as well as their impact on personal finance. (0:27:31) Early money memories and pragmatic money exercises to help frame your mindset. (0:36:54) Explore the power of understanding your money story for better financial decisions. (0:39:04) Unpack the common money habits to break and examples of toxic behaviours. (0:43:34) The interconnection between trauma and money and why it is important. (0:48:01) Jessica shares how learning about trauma informed her counselling approach. (0:53:05) Navigating mental health challenges and intergenerational money experiences. (0:58:11) Discover why spending money will not lead to long-term happiness. (1:02:33) Tips to begin rewriting your money story and Jessica's 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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ 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/ Jessica Moorhouse — https://jessicamoorhouse.com/ Jessica Moorhouse on LinkedIn — https://www.linkedin.com/in/jessicaimoorhouse/ Jessica Moorhouse on YouTube — https://www.youtube.com/c/jessicamoorhouse1 Jessica Moorhouse on TikTok — https://www.tiktok.com/@jessicaimoorhouse Jessica Moorhouse on Facebook — https://www.facebook.com/jessicaimoorhouse Jessica Moorhouse on Instagram — https://www.instagram.com/jessicaimoorhouse/ More Money Podcast — https://podcasts.apple.com/za/podcast/more-money-podcast/id996219697 Everything but Money — https://www.amazon.com/Everything-but-Money-Barriers-Financial/dp/1443472174   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

Dimensional Fund Advisors (DFA) and Vanguard have intersecting histories rooted in the development of the first-ever index fund. Vanguard's market-cap weighted index funds have been nothing short of revolutionary and they became synonymous with sensible investing for many good reasons, but Dimensional took implementing the ideas from academic finance a few steps further, leading to their own deserved acclaim. In today's episode, Ben and Dan analyze over 30 years of history between DFA and Vanguard, from their founding and relationship to their rise as global leaders in asset management. We discover how their approaches to foundational finance theory differ, whether diversification is mostly semantics, and how DFA and Vanguard compare to one another over 25 years of matched US-domiciled mutual funds. We also discuss which approach is easier to implement, essential insights for fund advisors, DFA's downsides despite its long-term outperformance of the Vanguard 500, and an uplifting cancer update from Ben in today's After Show. For practical investment takeaways, tune in today!   Key Points From This Episode:   (0:01:14) Unpacking DFA and Vanguard's history and relationship. (0:03:10) Mac McQuown and the birth of index funds at Wells Fargo in 1964.  (0:07:48) How DFA and Vanguard became global leaders in asset management. (0:10:43) Understanding DFA and Vanguard's approach to foundational finance theory. (0:19:34) The semantics of diversification.  (0:22:22) Comparing 25 years of matched Dimensional and Vanguard US mutual funds. (0:33:36) Which fund advisor's approach is easier for others to implement and why.   (0:39:30) How DFA has outperformed Vanguard in the long run (with downsides to consider).  (0:43:09) Recapping today's conversation: what every fund advisor needs to know. (0:46:41) The After Show: Ben's cancer update, Dan as co-host, and listener reviews.   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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ 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/  Dimensional — https://www.dimensional.com/  Vanguard — https://investor.vanguard.com/   'Remembering John "Mac" McQuown, Whose Curiosity Drove a Life of Innovation' — https://www.dimensional.com/dk-en/insights/remembering-john-mac-mcquown-whose-curiosity-drove-a-life-of-innovation   'Episode 182: John "Mac" McQuown: The Data Will Sort That Out' — https://rationalreminder.ca/podcast/182  Wells Fargo — https://www.wellsfargo.com/  'Episode 131: David Booth: The First Index Fund, Competing Fiercely, and Keeping it Simple' — https://rationalreminder.ca/podcast/131  William F. Sharpe | Stanford University — http://web.stanford.edu/~wfsharpe/bio/bio.htm  'Episode 316 - Andrew Chen: "Is everything I was taught about cross-sectional asset pricing wrong?!"' — https://rationalreminder.ca/podcast/316   Marco Salmon on LinkedIn — https://www.linkedin.com/in/marco-a-salmon-a63512284     Books From Today's Episode:  The Incredible Shrinking Alpha — https://www.amazon.com/dp/0857198246    Papers From Today's Episode:  'The relationship between return and market value of common stocks' — https://doi.org/10.1016/0304-405X(81)90018-0   'Market Efficiency' — https://www.jstor.org/stable/246460  'The Cross-Section of Expected Stock Returns' — https://doi.org/10.2307/2329112  'A Five-Factor Asset Pricing Model' — https://dx.doi.org/10.2139/ssrn.2287202  'The Performance of Mutual Funds in the Period 1945-1964' — https://dx.doi.org/10.2139/ssrn.244153   'The Death of Diversification Has Been Greatly Exaggerated' — https://ssrn.com/abstract=2998754    Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

Our conversations with Professor Scott Cederburg from Eller College of Management have led to the most heated debates among our listeners! Today, Prof. Cederburg returns to discuss the changes he's made to his paper that was the foundation of previous conversations - 'Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice'. We begin with the data setup and headline findings of the paper before Prof. Cederburg defines "domestic" and "international" as they appear in his paper, why the block bootstrap approach is vital to his work, how and why the results of his paper differ from the status quo, and the evaluation metrics he uses to compare different investment strategies. Then, we explore his optimal base portfolio, the strategy he uses to derive it, how it performs in simulated worst-case scenarios, and how it changes when ditching the bootstrap approach or changing strategies from constant spending to proportional spending. To end, we learn of the importance of including the US in international stock portfolios, how it changes when the US is viewed as special above others, the correlation between labor income and domestic stock returns, and how the reviews of academics and practitioners have changed since the first iteration of the paper until this latest edition.     Key Points From This Episode:   (0:00:00) What to look forward to in today's conversation with Prof. Scott Cederburg (0:04:49) The data setup and headline findings from his paper, 'Beyond the Status Quo.' (0:07:01) Defining "domestic" and "international" as they appear in Prof. Cederburg's paper. (0:08:34) Why the bootstrap approach is necessary for his work.  (0:12:17) How and why the results of his paper differ from the status quo.  (0:15:11) Unpacking the evaluation metrics he uses to compare different investment strategies. (0:16:05) Exploring his optimal base case portfolio and strategy, and how it performs in worst-case simulations. (0:23:05) How the optimal allocation changes when households vary their portfolio weights. (0:27:13) What to consider when ditching the block bootstrap in time-varying optimal portfolios.  (0:29:46) Constant spending versus proportional spending: How the optimal portfolio changes. (0:30:49) Examining the sequence of returns risk.  (0:42:14) The importance of including the US market in international stock portfolios.  (0:43:40) Why the US is treated the same as any other domestic country in the paper, and how the data changes if it's viewed as special.  (0:51:40) The extent of the relationship between labor income and domestic stock returns.  (0:53:01) How leverage affects optimal portfolio results.  (1:05:20) Assessing how sensitive the paper's results are to risk aversion.  (1:06:35) How academics and practitioners have responded to this paper across all iterations.   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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ 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 Scott Cederburg — https://eller.arizona.edu/people/scott-cederburg  Professor Scott Cederburg on LinkedIn — https://www.linkedin.com/in/scott-cederburg-0917b0121/  Professor Scott Cederburg on Google Scholar — https://scholar.google.com/citations?user=CZKf3WEAAAAJ  Eller College of Management — https://eller.arizona.edu/   Episode 224: Prof. Scott Cederburg: Long-Horizon Losses in Stocks, Bonds, and Bills — https://rationalreminder.ca/podcast/224  Episode 284: Prof. Scott Cederburg: Challenging the Status Quo on Lifecycle Asset Allocation — https://rationalreminder.ca/podcast/284   Vanguard — https://investor.vanguard.com/   'The Portfolio Size Effect and Using a Bond Tent to Navigate the Retirement Danger Zone' — https://www.kitces.com/blog/managing-portfolio-size-effect-with-bond-tent-in-retirement-red-zone/    Papers 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     'Is The United States a Lucky Survivor: A Hierarchical Bayesian Approach' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3689958    'Risk-Free Interest Rates' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3242836   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this episode, Ben, Dan, and Mark tackle another Ask Me Anything (AMA) session, covering a wide range of investing and financial planning topics. They begin with a highly requested debate on factor investing versus market cap-weighted portfolios and unpack the theory, research, and practical considerations behind both strategies. Ben explains why he prefers factor tilts when managing client portfolios, while Dan shares his perspective on why a simple market cap-weighted approach is more practical and sustainable. Then, they delve into the drivers of investor behaviour, common mistakes investors make, and powerful strategies to help investors overcome biases and improve their decision-making abilities. They also discuss the role of bonds in a portfolio, whether international bonds offer additional benefits, key retirement planning strategies, and the impact of sequence-of-returns risk. Join the conversation to discover how large corporations manage cash reserves, unpack the SPIVA Canada 2024 report findings, and explore the continued struggles of active management. Tune in now!   Key Points From This Episode:   (0:01:06) Ben explains why market cap weighting is a valid strategy but prefers factor tilting. (0:06:58) Dan shares why he prefers market cap weighting approaches over factor tilting. (0:13:45) Hear how client expectations shape their investment approaches. (0:18:12) How to overcome the psychological challenges of investing and reframe your mindset. (0:22:02) The role of bonds and fixed income in a portfolio and sequence of withdrawal risk. (0:36:19) Recommendations for factor ETFs and the home biases associated with them. (0:39:48) Unpack the 4% rule for retirement planning and amortization-based withdrawals. (0:47:47) Expected returns for a "millennial" portfolio and why 10% annualized is unrealistic. (0:52:38) Find out if PWL would ever open a branch in the US and about their US partnerships. (0:53:20) Explore how corporate cash management differs from typical household investing. (0:55:59) Uncover the value of bonds and the common misconceptions surrounding them. (1:00:40) Learn about the pros and cons of investing in stocks and ETFs. (1:09:13) Aftershow: the SPIVA Canada 2024 report, activate management struggles, updates, 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 — info@rationalreminder.ca Benjamin Felix — https://pwlcapital.com/our-team/ 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 Dan Bortolotti — https://pwlcapital.com/our-team/ 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/ Dimensional (DFA) vs. Vanguard — https://www.youtube.com/watch?v=JfknibBat2A Episode 93: Cliff Asness from AQR — https://rationalreminder.ca/podcast/93 Episode 135: William Bengen — https://rationalreminder.ca/podcast/135 Episode 297: Do Stocks Return 10-12% On Average? — https://rationalreminder.ca/podcast/297 Episode 340: Ben Mathew — https://rationalreminder.ca/podcast/340 Episode 343: How to Choose an Asset Allocation — https://rationalreminder.ca/podcast/343 Credit Suisse Data — https://marketdata.credit-suisse.com/pmdr/en/index.html#/ SPIVA® Canada Year-End 2024 — https://www.spglobal.com/spdji/en/spiva/article/spiva-canada/ The Wealthy Barber Podcast — https://thewealthybarber.com/podcast/   Books From Today's Episode:   Wealthier — https://www.amazon.com/Wealthier-Investing-Field-Guide-Millennials-ebook/dp/B0CX2VD1CW   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

Is the government manipulating inflation data? Why do so many people feel like their personal costs are rising faster than official inflation numbers suggest? In this episode of the Rational Reminder Podcast, we dive deep into one of the most debated and misunderstood economic topics: inflation. Today, we are joined by Andrew Barclay, an economist and senior analyst in the Consumer Price Division at Statistics Canada, to discuss everything you need to know about inflation and the Consumer Price Index (CPI). Statistics Canada is Canada's national statistical agency dedicated to producing accurate, relevant, and timely data to help Canadians better understand their country. In our conversation, we unpack how inflation and the CPI are calculated and why it is so important. We explore the controversy around CPI calculations and the influence of inflation on government benefits, tax brackets, and the overall economy. Andrew also addresses scepticism and conspiracy theories about government inflation reporting, uncovers drivers of the perception gap, and explains how Statistics Canada ensures the accuracy and integrity of its data. Join us to hear the real story behind CPI and inflation with Andrew Barclay!   Key Points From This Episode:   (0:00:00) Background about Andrew and what inspired today's topic.  (0:05:33) Find out why measuring inflation is important and how the CPI is calculated.  (0:10:08) What goes into the CPI basket and how frequently the contents are updated. (0:12:42) How consumer choices impact inflation and how 'shrinkflation' is accounted for. (0:15:43) Learn how quality adjustments are accounted for in the CPI and why they matter.  (0:19:01) Scepticism surrounding quality adjustments and how the CPI adapts to crises. (0:25:21) The role of grocery price tracking and why Canada uses a single CPI measure. (0:28:08) Explore the idea of personal inflation and why it is usually different to the CPI. (0:31:10) The difference between home prices and housing costs and how they are calculated. (0:35:41) Hear how Statistics Canada's approach for housing compares to other methodologies. (0:41:15) Perceived inflation versus actual inflation and drivers of the inflation perception gap. (0:51:58) Statistics Canada's method of dealing with the perception gap and ensuring quality.  (0:55:51) Uncover the most criticized indexes and how Statistics Canada includes feedback. (1:01:52) Andrew's message for those who do not trust the CPI and 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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ 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 Andrew Barclay on LinkedIn — https://www.linkedin.com/in/andrew-barclay-a38b6035/ Statistics Canada — https://www.statcan.gc.ca/ Canadian System of National Accounts | 'Catalogue of products' — https://publications.gc.ca/Collection/Statcan/13F0029X/13F0029XIE2000001.pdf Bank of Canada — https://www.bankofcanada.ca/ Canadian Real Estate Association (CREA) — https://www.crea.ca/ Episode 323: Renting Versus Buying a Home in Canada 2005-2024 — https://rationalreminder.ca/podcast/323 Surveys of Consumers | University of Michigan — https://data.sca.isr.umich.edu/ Statistics Canada | The Daily — https://www150.statcan.gc.ca/n1/dai-quo/index-eng.htm   Books From Today's Episode:   The Courage to Be Disliked — https://www.amazon.com/Courage-Be-Disliked-Phenomenon-Happiness/dp/1501197274   Papers From Today's Episode:  'The naked eye versus the CPI: How does our perception of inflation stack up against the data?' — https://www.statcan.gc.ca/o1/en/plus/256-naked-eye-versus-cpi-how-does-our-perception-inflation-stack-against-data   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

Are index funds the best investment strategy for most investors? In this episode of Rational Reminder, Benjamin Felix, Dan Bortolotti, and Mark McGrath explore why low-cost index funds should be the primary investment strategy for most people. They explain how index funds evolved from a niche concept to a widely accepted strategy and outline their six key benefits. Learn about the fees associated with index funds, why index funds outperform most actively managed funds, and how to avoid the risks of picking individual stocks. They also explore academic research on long-term mutual fund performance, the persistence (or lack thereof) in active management, and the dangers of alternative indexing schemes. Discover how behaviour impacts investment decisions and why a globally diversified portfolio is crucial. Finally, in the aftershow, Ben shares an update regarding his health and listener feedback from the Rational Reminder community. Join the conversation and uncover why index funds are the best investment strategy and how to leverage them effectively to maximize your portfolio for long-term gains. Tune in now!   Key Points From This Episode:   (0:01:58) Outline of today's topic and why index funds should be everyone's main investment strategy. (0:05:10) Index fund fundamentals, market cap weighting, and why not all ETFs are index funds.  (0:10:03) Learn about the transition of index funds into mainstream finance and their low-fee advantages. (0:13:30) Linking fees to index performance and why lower fees gives them an advantage over managed funds. (0:19:50) The general awareness about index funds and what impact the lack of diversification has on actively managed funds. (0:26:35) Explore critical research comparing the returns on investment between index funds and actively managed funds. (0:33:32) Unpack why the size of the active management industry matters and common misconceptions surrounding the long-term returns of mutual funds. (0:42:26) Discover why some fund managers do well and how sector-specific performance influences stock returns. (0:48:28) Unpack why average returns are better than beating the market and what makes index funds tax efficient.  (0:51:08) Find out what makes index funds easy to use and how this results in higher returns in the long term.  (0:55:25) How index funds are consistent with foundational finance theory and why thematic ETFs and sector-specific index funds should be avoided. (1:05:40) The aftershow: Ben shares a personal health update, Rational Reminder news, and a request for listener AMA questions.   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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ 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 Dan Bortolotti — https://pwlcapital.com/our-team/ 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 54: Dr. David Blitzer — https://rationalreminder.ca/podcast/54 Episode 124: Prof. Lubos Pastor — https://rationalreminder.ca/podcast/124 Episode 133: Adriana Robertson — https://rationalreminder.ca/podcast/133 Episode 220: Jonathan Berk and Jules van Binsbergen — https://rationalreminder.ca/podcast/220 Episode 244: Charles D. Ellis — https://rationalreminder.ca/podcast/244 Episode 268: Itzhak Ben-David — https://rationalreminder.ca/podcast/268 Episode 302: Michael Green — https://rationalreminder.ca/podcast/302 Episode 346: Hendrik Bessembinder — https://rationalreminder.ca/podcast/346 Coffeezilla — https://www.youtube.com/@Coffeezilla Coffeezilla: Investing for Idiots — https://www.youtube.com/watch?v=hoGm61I52YQ YCharts — https://ycharts.com/   Papers From Today's Episode:    'The Arithmetic of Active Management' — https://www.tandfonline.com/doi/pdf/10.2469/faj.v47.n1.7 'Sharpening Sharpe's Arithmetic' — https://www.tandfonline.com/doi/full/10.2469/faj.v74.n1.4 'Mutual Fund Flows and Performance in Rational Markets' — https://www.journals.uchicago.edu/doi/abs/10.1086/424739 'Why Indexing Works' — https://onlinelibrary.wiley.com/doi/abs/10.1002/asmb.2271 'Long-Term Shareholder Returns: Evidence from 64,000 Global Stocks' — https://www.tandfonline.com/doi/abs/10.1080/0015198X.2023.2188870 'The Performance of Mutual Funds in the Period 1945-1964' — https://www.jstor.org/stable/2325404 'On Persistence in Mutual Fund Performance' — https://doi.org/10.1111/j.1540-6261.1997.tb03808.x 'Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk' — https://onlinelibrary.wiley.com/doi/full/10.1111/j.1540-6261.1964.tb02865.x 'Passive in name only: Delegated management and index investing' — https://heinonline.org/HOL/LandingPage?handle=hein.journals/yjor36&div=20&id=&page=   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

Did you know that just a handful of stocks drive nearly all of the stock market's long-term gains? In this episode, we sit down with Hendrik Bessembinder to discuss his groundbreaking research on why most stocks fail to outperform Treasury bills and how a small fraction of stocks generate the most long-term market returns. Hendrik is a Professor in the Department of Finance at Arizona State University whose research focuses on market design, trading, and long-term investment performance across stock, foreign exchange, fixed income, futures, and energy markets. In addition to his academic contributions, Professor Bessembinder has over 25 years of consulting experience, advising major firms, financial markets, and government agencies. In our conversation, we delve into the findings of his research and find out how a small fraction of stocks generate the majority of long-term returns. We explore why traditional investment strategies often overlook the impact of skewness, the impacts of broad diversification and passive investing, and why active fund managers struggle to beat the market. Discover why chasing past returns can lead to costly mistakes, his latest research on 'sustainable returns', what type of industries have the highest stock returns, common investing mistakes, and more. Join us to uncover the surprising realities of stock market returns and how you can build a portfolio that stands the test of time with Professor Hendrik Bessembinder. Key Points From This Episode:   (0:03:54) Explore Hendrik's research on long-term stock returns and how most returns come from a small group of stocks. (0:08:30) Learn how company size interacts with the skewness in stock returns and what it means for individual investors. (0:11:39) Considering fundamentals in stock returns and the implications of skewness for measuring portfolio performance. (0:15:42) Unpack how he used bootstrap simulations in his paper and the performance of stock returns versus Treasury bills. (0:19:01) Find out the proportion of US firms responsible for dollar wealth creation and why diversification is essential for long-term stock returns. (0:25:23) Navigating volatility in the market and why it is difficult to identify skilled managers in time to leverage the market. (0:28:00) Compare the performance of US stocks versus global stocks and what is driving their performance. (0:32:04) What the findings of his research means for financial planners and individual investors.  (0:35:35) Uncover which US firms generated the highest returns and what type of industries these companies are in. (0:42:07) Hear about the long-term performance of US mutual funds and how investor behaviour contributes to it. (0:49:54) How passive investing and index funds have reduced the contributions of actively managed mutual funds and the lessons for investors. (0:55:48) Discover Professor Bessembinder's broader research interests and 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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ 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 Professor Hendrik Bessembinder — https://search.asu.edu/profile/2717225 Arizona State University — https://www.asu.edu/ KRIS — https://www.kris-online.com/ Professor Hendrik Bessembinder papers on SSRN — https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=667 SPIVA — https://www.spglobal.com/spdji/en/research-insights/spiva/ Episode 322: Professor Marco Sammon — https://rationalreminder.ca/podcast/322 Episode 124: Professor Lubos Pastor — https://rationalreminder.ca/podcast/124   Papers From Today's Episode:    'Do Stocks Outperform Treasury Bills?' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X18301521 'Extending Portfolio Theory to Compound Returns' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3875870 'Luck versus Skill in the Cross-Section of Mutual Fund Returns' — https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1540-6261.2010.01598.x 'Measuring Skill in the Mutual Fund Industry' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X15000628 'Long-Term Shareholder Returns: Evidence from 64,000 Global Stocks' — https://www.tandfonline.com/doi/abs/10.1080/0015198X.2023.2188870 'Which U.S. Stocks Generated the Highest Long-Term Returns?' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4897069 'How Should Investors' Long-Term Returns Be Measured?' — https://www.tandfonline.com/doi/abs/10.1080/0015198X.2024.2401765   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

As we continue to answer your questions from our most recent AMA, Ben, Mark, and Dan begin today's episode with Bitcoin and how its value as an investment has changed over the years. Then, after briefly explaining how to find short clips of this podcast online, we discuss why many companies choose not to list directly on the TXS, how to implement factor investing without factor EFTS, the best way to invest if you could only make one EFT investment in your lifetime, and, and understanding buffered EFTs and market-linked GICs. We also cover expected returns in a corrupt market, return stacking for individuals, academia versus real-world applications, and why stock valuations will never be the same as they were in the past. To end, we look at lump sum investing versus dollar-cost averaging, what to remember regarding asset allocation, how we rebalance portfolios here at PWL Capital, and we wish Ben well as he awaits his diagnosis. Key Points From This Episode: (0:03:30) Unpacking the value of Bitcoin as an investment; past, present, and future.  (0:09:58) Why we don't use YouTube Shorts anymore and how to find our bite-sized clips.  (0:10:29) Understanding why many companies refrain from directly listing on the TXS.  (0:11:29) An interlude on how we take care of our bodies.  (0:14:22) Implementing factor investing without factor ETFs, and Manulife's multifactor ETFs. (0:19:21) What we would do if we could only invest in one ETF until retirement. (0:22:23) Buffered EFTs and market-linked GICs.   (0:26:15) Market efficiency and expected returns in a low transparency/high corruption market.   (0:29:50) Whether return stacking is a good idea for individuals, and unpacking leverage.  (0:40:44) Balancing proven business philosophies with academic thinking.  (0:47:39) The Shiller PE Ratio; why stock valuations are permanently higher than in the past.   (0:54:58) Lump sum investing versus dollar-cost averaging.  (1:00:09) Asset allocation and how to know which assets to sell first.  (1:04:57) How PWL Capital rebalances client portfolios – an operational perspective.  (1:10:42) The after show: Testicular cancer and heartwarming reviews.    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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ 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/   'Episode 80: A Planning Checklist, Portfolio Concentration, and Leverage' — https://rationalreminder.ca/podcast/80  'Episode 343: How to Choose an Asset Allocation' — https://rationalreminder.ca/podcast/343 'Episode 234: Prof. Robert C. Merton: ICAPM, Retirement, and Models in Finance' — https://rationalreminder.ca/podcast/234   'Episode 335: What About Warren Buffett?' — https://rationalreminder.ca/podcast/335  'Episode 202: Antti Ilmanen: The Building Blocks of Long-Run Returns' — https://rationalreminder.ca/podcast/202   'Episode 262: Prof. Francisco Gomes: Consumption and Portfolio Choice over the Life Cycle' — https://rationalreminder.ca/podcast/262   'Dan Bortolotti: Index Investing, ETFs and Financial Planning' — https://thewealthybarber.com/podcast/dan-bortolotti-index-investing-etfs-and-financial-planning-twb-podcast-9/   Manulife Investment Management — https://www.manulifeim.com/retail/ca/en  Dimensional Fund Advisors — https://www.dimensional.com/hk-en/financial-professionals  Scott Cederburg on LinkedIn — https://www.linkedin.com/in/scott-cederburg-0917b0121/  Corey Hoffstein on LinkedIn — https://www.linkedin.com/in/coreyhoffstein/   We Study Billionaires — https://www.theinvestorspodcast.com/we-study-billionaires/   Hendrik Bessembinder | ASU Search — https://search.asu.edu/profile/2717225  Shiller PE Ratio — https://www.multpl.com/shiller-pe  'What if You Only Invested at Market Peaks?' — https://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/   Books From Today's Episode:  The Only Guide You'll Ever Need for the Right Financial Plan — https://www.amazon.com/Only-Guide-Youll-Right-Financial/dp/1576603660    Papers 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  'Why Not 100% Equities' — https://ibs-masters.narod.ru/olderfiles/1/asness_100equities.pdf   'A Conversation with Benjamin Graham' — https://www.jstor.org/stable/4477960  'Forecasting Stock Returns: What signals matter, and what do they say now?' — https://fairwaywealth.com/wp-content/uploads/Vanguard-Research-11-30-2014.pdf  'Dollar Cost Averaging vs. Lump Sum Investing' — https://pwlcapital.com/wp-content/uploads/2024/08/Dollar-Cost-Averaging-vs-Lump-Sum-Investing.pdf   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

What if the key to successful investing is about understanding how market expectations, intangible assets, and even your own biases shape the outcome? In this episode, Cameron sits down with Michael Mauboussin, a renowned expert in investment strategies and behavioural finance, to explore how the evolving dynamics of investing influence valuation, investor decision-making, and market efficiency. Michael is the head of Consilient Research at Counterpoint Global, part of Morgan Stanley Investment Management, and an adjunct professor at Columbia Business School, where he teaches courses on investing and decision-making. His work focuses on behavioural biases, skill versus luck, complex adaptive systems, and valuation. In our conversation, we discuss the core principles of equity investing, unpack the evolution of intangible assets, and explore how market dynamics are influenced by index funds. You'll learn about capital allocation strategies, the shifting landscape of private equity, accounting challenges with intangibles, and how traditional investment frameworks are being redefined. Michael also provides insight into the "free dividend" fallacy, the importance of understanding the basic unit of analysis, the paradox of skill in active management, and more. Join us to learn about market and investing fundamentals to improve your strategy with Michael Mauboussin. Tune in now!   Key Points From This Episode:   (0:03:08) What the primary job of an equity investor is and the origin of stock returns. (0:05:37) Why dividends are less critical to total shareholder return unless fully reinvested. (0:08:43) Dissect the behaviour of investors in dividend stocks and the "free dividend fallacy." (0:10:01) Value versus growth classifications and how intangible assets impact valuations. (0:16:39) Learn about the potential advantages for companies investing in intangible assets. (0:20:20) How to determine a company's position in the competitive advantage life cycle. (0:24:42) The phase that offers the highest returns and what to consider about newer industries. (0:26:18) Explore the tradeoffs of intangible-intensive companies and the impact on base rates. (0:29:22) Pitfalls of valuation multiples and the implications for systematic value investors. (0:32:25) Relevance of market metrics and how index funds have affected alpha opportunities. (0:38:14) Effects of rising indexed assets and what to consider about market concentration. (0:45:01) Discover the historical link between market concentration and future returns.  (0:46:31) How active managers benefit markets and misconceptions about skilled managers.  (0:48:46) The value of active managers and advice for structuring investment portfolios. (0:52:44) Unpack the shift from public to private equities and why it happened.  (0:55:40) Insights into the benefits of private over public equities for investors.  (0:58:00) Ways intangible assets influenced the rise of private equity.  (0:59:27) What the market says about future returns and using public equity for diversification.   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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Michael Mauboussin — https://www.michaelmauboussin.com/ Michael Mauboussin on LinkedIn — https://www.linkedin.com/in/michael-mauboussin-12519b2/ Michael Mauboussin on X — https://x.com/mjmauboussin Columbia Business School — https://business.columbia.edu/ Morgan Stanley | Counterpoint Global — https://www.morganstanley.com/im/en-us/individual-investor/about-us/investment-teams/active-fundamental-equity/counterpoint-global-team.html The Heilbrunn Center for Graham and Dodd Investing — https://business.columbia.edu/heilbrunn Episode 332: Randolph Cohen and Michael Green — https://rationalreminder.ca/podcast/332   Books From Today's Episode:   The Success Equation — https://www.amazon.com/Success-Equation-Untangling-Business-Investing/dp/1422184234 More Than You Know — https://www.amazon.com/More-Than-You-Know-Unconventional/dp/0231143729 Expectations Investing — https://www.amazon.com/Expectations-Investing-Reading-Prices-Returns/dp/159139127X Think Twice — https://www.amazon.com/Think-Twice-Harnessing-Power-Counterintuition/dp/1422187381 Creating Shareholder Value — https://www.amazon.com/Creating-Shareholder-Value-Managers-Investors/dp/0684844109 Capitalism Without Capital — https://www.amazon.com/Capitalism-without-Capital-Intangible-Economy/dp/0691175039 The New Goliaths — https://www.amazon.com/New-Goliaths-Corporations-Industries-Innovation/dp/0300255047 Security Analysis — https://www.amazon.com/Security-Analysis-Foreword-Buffett-Editions/dp/0071592539 —    Papers From Today's Episode:    'The Dividend Disconnect' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2876373 'Trading Stages in the Company Life Cycle' — https://www.morganstanley.com/im/en-gb/intermediary-investor/insights/articles/trading-stages-in-the-company-life-cycle.html   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

Choosing an asset allocation is a crucial investment decision, as it determines expected returns and risk exposure. During this episode, we uncover what this means, exploring topics such as why risk may not always be the best assessment method. We unpack the three factors that John Grable's risk profiling framework considers: behavioural loss tolerance, the ability to take risk (which assesses the financial capacity to withstand losses without affecting lifestyle), and the need to take risk. Many investors sabotage their returns by selling after losses and buying after gains, and we discuss the reasons behind this. We also explore why stocks tend to become less risky over long horizons, while bonds can be vulnerable to inflation and interest rate changes, before explaining why investors should focus on compensated risks. In the aftershow, we address listener comments on absolute returns, XEQT, why we have made certain sponsorship decisions, and more. To gain a deeper understanding of risk and avoid common pitfalls that can undermine your returns, tune in today!   Key Points From This Episode:   (0:05:10) The critical importance of choosing an asset allocation and understanding risk.  (0:08:35) How behavioural loss tolerance impacts asset allocation.    (0:18:42) Psychological theory on risk tolerance and willingness to engage in financial behavior.  (0:30:48) Assessing your need to take risks.  (0:39:24) Why market volatility is not where the true risks lie. (0:47:42) Private credit, other portfolio alternatives, and GICs.  (0:53:03) The aftershow: demystifying the AMA controversy. (1:00:20) Absolute returns, XEQT, and sponsorship on the Rational Reminder. (1:12:05) An update on Ben's health and what he has learned from this experience.    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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ 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://pwlcapital.com/our-team/ 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/   Papers From Today's Episode:  'The Grable and Lytton risk-tolerance scale: a 15-year retrospective' — https://static.arnaudsylvain.fr/2017/03/The-Grable-and-Lytton-risk-tolerance-scale-15-year-retrospective.pdf   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

Today we are joined by the Professor of Finance at the University of Utah, Matt Ringgenberg to discuss everything related to anomaly returns. Matt's research – mainly centred on the actions of short sellers – has been published in all the major journals including the Journal of Finance, the Journal of Financial Economics, and the Review of Financial Studies. We begin with the definition of an asset pricing anomaly before learning about the anomalies that Matt's research is primarily focused on. Then, we unpack anomaly returns and how they relate to anomaly signal information, what causes anomalies, the risk versus mispricing debate, and the barriers to accessing financial data that allow anomalies to persist. We also weigh Matt's research against its anomaly-denying counterparts, assess anomaly behaviour before and after publicly available signal information, explore models that help to predict future anomalies, and learn more about the economic mechanism underlying asset pricing anomalies. To end, we dive into Matt's paper, 'The Loan Fee Anomaly' and explore the relationship between cross-sectional predictors and market returns, and Matt explains why long-term happiness is the only true marker of success.    Key Points From This Episode:   (0:05:07) Matt Ringgenberg defines an asset pricing anomaly and describes the anomalies his research is focused on.  (0:06:27) When anomaly returns appear relative to the release of anomaly signal information. (0:07:57) How the annual forming of portfolios in June affects anomaly returns.  (0:08:50) The cause of anomalies, and the risk versus mispricing debate on anomaly returns.   (0:10:35) Unpacking the barriers to accessing financial data that allow anomalies to persist.   (0:13:41) How Matt's rebalancing approach could affect anomaly-denying research. (0:14:37) Applying his work to valuation-based anomalies and to investors capturing anomaly returns in live-traded portfolios.   (0:16:04) How anomalies behave before anomaly signal information is publicly available. (0:17:48) Exploring the models that can be used to predict future anomaly signals.  (0:19:05) How anomaly premiums traded on predicted signals compare to trades on actual information release dates. (0:19:37) Understanding the economic mechanism underlying asset pricing anomalies. (0:24:38) Dissecting one of Matt's short-selling papers, 'The Loan Fee Anomaly'. (0:32:51) The relationship between cross-sectional predictors and market returns. (0:39:11) What Matt hopes to pass on to his students in his Introduction to Investments course. (0:40:48) How Matthew Ringgenberg 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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ 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 Matthew Ringgenberg on Google Scholar — https://scholar.google.com/citations?user=NArgYXUAAAAJ  Matthew Ringgenberg on LinkedIn — https://www.linkedin.com/in/matthewringgenberg/  Matthew Ringgenberg on X — https://x.com/Ringgenberg_M  University of Utah — https://www.utah.edu/  Davidson Heath on LinkedIn — https://www.linkedin.com/in/davidson-heath-5a28999a/   Management Science — https://pubsonline.informs.org/journal/mnsc  Journal of Financial and Quantitative Analysis — https://jfqa.org/  Morningstar Direct — https://www.morningstar.com/business/brands/data-analytics/products/direct  YCharts — https://ycharts.com/  Andre Chen — https://andrewchen.substack.com/  David Booth | Dimensional Fund Advisors — https://www.dimensional.com/hk-en/bios/david-booth    Papers From Today's Episode:    'A Conversation with Benjamin Graham' — https://www.jstor.org/stable/4477960   'The Loan Fee Anomaly: A Short Seller's Best Ideas' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3707166  'Do Cross-Sectional Predictors Contain Systematic Information?' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3459229   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

PWL Capital is undergoing an exciting change that will help the company bring a greater positive impact to the Canadian Wealth Management space and serve more clients effectively. In this episode, Ben Felix and Cameron Passmore welcome Mike Sullivan, co-founder of OneDigital, to share the inside story behind PWL Capital's recent decision to join forces with OneDigital. With nearly 25 years of experience in growth through acquisitions, Mike explains how their unique culture and strategic vision led to this exciting collaboration. We discuss Mike's role in driving OneDigital's expansion and how the company's values align with PWL's mission to offer low-cost, client-centric, systematic investing. He provides insights into why this partnership represents more than just a business transaction by amplifying a shared vision for Canadian investors. Our conversation also delves into the dynamics of mergers and acquisitions and examines the importance of culture and purpose in making these critical decisions. Today's episode offers a rare inside look at an M&A transaction with key players that many listeners will already be well-acquainted with. Tune in now to hear it all!   Key Points From This Episode:   (0:00:16) Details on PWL Capital's decision to partner with OneDigital. (0:14:31) An introduction to co-founder Mike Sullivan and OneDigital. (0:16:38) How Mike knows when an acquisition will be a good fit. (0:19:13) The opportunities for building a different kind of wealth management firm in Canada. (0:21:14) What attracted Mike to PWL as a potential OneDigital partner. (0:34:05) Mike's insights on applying what's worked to the Canadian marketplace. (0:36:14) How being part of OneDigital will make PWL better. (0:37:59) Mike and his co-founder Adam Bruckman's objectives for OneDigital. (0:40:20) Why you shouldn't expect changes to PWL's service offerings or teams. (0:45:02) How being part of OneDigital will help PWL assist other like-minded advisors. (0:46:36) The typical advisor profile that PWL/OneDigital Canada would like to attract. (0:53:15) Reflections on our hopes and goals: what we are looking forward to at PWL. (0:57:45) Mike's definition of success, plus Cam and Ben's answer to the success question!   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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ 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 Mike Sullivan on LinkedIn — https://www.linkedin.com/in/mikesullivanatdigital/ OneDigital — https://www.onedigital.com/   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

What drives the best financial planning decisions? In this episode, Ben Felix and Mark McGrath sit down with Ben Mathew, a PhD in economics from the University of Chicago and author of Economics: The Remarkable Story of How the Economy Works. The discussion explores the lifecycle model of economics, a powerful yet underutilized framework for financial planning, and contrasts it with traditional approaches like safe withdrawal rates (SWR). Ben Mathew shares insights into the lifecycle model, its origins, and its practical applications in aligning financial decisions with personal goals over a lifetime. We also dig into Ben's innovative financial planning tool, TPAW (Total Portfolio Allocation and Withdrawal) Planner, designed to bring the lifecycle model into practice. While the discussion delves into the complexities of financial planning, it's packed with actionable insights for listeners seeking smarter, evidence-based strategies. Join us for a deep dive into the lifecycle model and discover how it compares to traditional safe withdrawal rates.   Key Points From This Episode:   (0:02:31) Identifying the main problem financial planning aims to solve and the biggest challenges in creating a plan for saving and spending across a lifetime. (0:05:49) Exploring the effectiveness of simple rules of thumb, like the 4% rule, and the economic models available to analyze financial planning problems. (0:09:16) Why the lifecycle model isn't more widely adopted. (0:12:06) The basic premise of the lifecycle model. (0:16:45) How withdrawals in the lifecycle model relate to amortization and how risk affects amortization-based withdrawals. (0:21:12) Examining how amortization-based variable spending aligns with consumption smoothing and responds to portfolio drops. (0:25:25) How updating expected return assumptions mitigates behavioural worry during market drops. (0:26:37) The variability in spending seen in historical simulations, how variable spending can be tailored to individual preferences, and the recommended frequency for updating financial calculations. (0:38:30) What the lifecycle model advises about asset allocation. (0:42:00) The importance of expected return assumptions in lifecycle asset allocation advice. (0:45:28) Adjusting lifecycle advice for when you have limited information about expected returns and how retirement glide paths compare to the lifecycle model. (0:50:03) How asset allocation in the model changes based on the time horizon of the goal. (0:54:10) The influence of different wealth levels on asset allocation in the lifecycle model. (0:56:43) How the safe withdrawal rate methodology works and key problems with its approach. (01:08:11) Connecting the probability of success metric to the utility function and differentiating variable safe withdrawal rates (SWR) from amortization-based withdrawals. (01:17:02) An overview of Ben's exciting online tool, TPAW (Total Portfolio Allocation and Withdrawal) Planner, for bringing the lifecycle model into practice.   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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ 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 Ben Mathew — http://www.benmatheweconomics.com/ Ben Mathew on LinkedIn — https://www.linkedin.com/in/bmathecon/  TPAW Planner — tpawplanner.com Bogleheads — https://www.bogleheads.org/wiki/Main_Page   Books From Today's Episode:   Economics: The Remarkable Story of How the Economy Works — https://www.amazon.com/Economics-Remarkable-Story-Economy-Works/dp/0988669102 The Missing Billionaires: A Guide to Better Financial Decisions — https://www.amazon.com/Missing-Billionaires-Better-Financial-Decisions/dp/1119747910   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In our second episode of 2025, Ben, Mark, and Dan continue to work through the listener questions we received in our 2024 AMA. We begin with home country biases and how to continue to grow your money from an already diversified portfolio before comparing the benefits of stock trading strategies and EFT portfolio strategies. Then, we discuss the impact of volatile blockchains on the wider securities market, whether you need to adjust your investment strategy when new tariffs are imposed, the ins and outs of terminal wealth management, the benefits of focusing on a total market index, and the personal finance perspective of renting versus buying in Canada. To end, we explore the best practices for increasing risk exposure, take a closer look at FIRE (financial impendence, retire early), assess investing behavioural biases and misconceptions that still pose a threat to even literate investors, and learn about how the Rational Reminder podcast is changing the lives of our listeners. Key Points From This Episode:   (0:01:59) Whether owning a home affects your home country bias and financial asset portfolio. (0:02:43) The correlation between the economic risks of housing and the local stock market. (0:07:21) How to keep growing your money if you already have a diversified portfolio. (0:14:16) When to split your portfolio, and stock trading strategy versus EFT portfolio strategy. (0:22:20) The impact of Bitcoin and volatile blockchains on the wider securities market. (0:24:46) Adapting your investment strategy after the introduction or increase of trading tariffs.  (0:26:20) Maxing out tax-free savings accounts for non-incorporated high-income professionals. (0:33:22) Switching to a total market index to avoid index funds that overvalue the market. (0:37:48) Renting versus buying in Canada, from a personal finance perspective. (0:42:39) The best practices for increasing risk exposure.  (0:51:19) Unpacking FIRE – financial independence, retire early.  (0:56:05) Balancing allocations between traditional retirement savings vehicles and real estate. (1:00:56) Investing behavioural biases and misconceptions that harm even literate investors.  (1:09:24) Whether bonds actually exist, and everything we've changed our minds about in 2024. (1:19:21) Shaping worldviews, on-demand information, and other highlights from your reviews.    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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ 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/  Peter Mladina on LinkedIn — https://www.linkedin.com/in/peter-mladina-177194125/  Benjamin Felix Quote on X — https://x.com/benjaminwfelix/status/1760356591000301739  Robb Engen — https://boomerandecho.com/robb-engen/  Renaissance Technologies — https://www.rentec.com/Home.action?index=true  Long Blockchain Corp — https://cryptohead.io/acquisitions/long-blockchain/  Nick Maggiulli on X — https://x.com/dollarsanddata  Canadian Couch Potato Podcast — https://canadiancouchpotato.com/podcast/  Bitcoin Uncensored — https://www.podchaser.com/podcasts/bitcoin-uncensored-463350   Episode 335 - What About Warren Buffett — https://rationalreminder.ca/podcast/335  Episode 332: Randolph Cohen & Michael Green — https://rationalreminder.ca/podcast/332   Papers From Today's Episode:    'Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice' — https://dx.doi.org/10.2139/ssrn.4590406 'Action Bias among Elite Soccer Goalkeepers: The Case of Penalty Kicks' — https://www.researchgate.net/publication/222676583_Action_Bias_among_Elite_Soccer_Goalkeepers_The_Case_of_Penalty_Kicks   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In today's episode, we unpack how rigorous research translates into actionable strategies for wealth management. Ben and Mark are joined by Peter Mladina, Executive Director of Portfolio Research at Northern Trust Wealth Management and professor at UCLA. With an impressive body of published work and practical innovations like his goals-based asset allocation software, Peter offers a unique perspective on bridging the gap between theory and practice. The conversation delves into foundational topics like asset allocation and factor models, with a special focus on practical applications of research in wealth management. Peter shares insights from his research, including intriguing findings on factor investing and joint tests of market efficiency. From real estate investment trusts to the nuances of the Intertemporal Capital Asset Pricing Model (ICAPM), the discussion covers how these concepts can directly inform financial planning and portfolio construction. Tune in to explore the intersection of academic insight and everyday financial decision-making! Key Points From This Episode:   (0:00:17) Introducing Peter Mladina and his wealth management research. (0:04:00) Theoretical and practical shortcomings of Markowitz's Modern Portfolio Theory (MPT). (0:05:24) How the Capital Asset Pricing Model (CAPM) resolves MPT's shortcomings, and how the Intertemporal CAPM (ICAPM) resolves the CAPM and MPT's shortcomings. (0:10:16) Key distinctions between an optimal ICAPM portfolio and an optimal CAPM portfolio. (0:15:33) Allocating between liability hedge assets and risky assets, and when it's sensible for individual investors to try to fully hedge consumption liabilities. (0:20:14) The role of Monte Carlo simulation and human capital in building ICAPM portfolios. (0:24:15) Steps for practitioners starting with ICAPM and how to advise their clients. (0:37:18) Insights from Peter's papers on factor models: why common risk factors should explain returns across most asset classes. (0:40:11) The value of looking at asset classes through a factor lens. (0:41:54) Main factors Peter uses in his research and observations on the zoo of factors. (0:46:23) Takeaways from Peter's paper on real estate (and why he doesn't like it that much). (0:56:45) Unpacking hedge fund returns and factor models and Yale's endowment performance. (01:02:44) Peter's research on traded portfolios and jointly testing factor models and manager performance. (01:07:14) How Peter defines success, both professionally and personally.   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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ 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 Peter Mladina on LinkedIn — https://www.linkedin.com/in/peter-mladina-177194125/ Peter Mladina on SSRN — https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=890472 Northern Trust — https://www.northerntrust.com/ Episode 169: John Cochrane — https://rationalreminder.ca/podcast/169   Papers From Today's Episode:  'Real Estate Betas and the Implications for Asset Allocation' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3134732 'An ICAPM Framework for Asset Allocation' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4319731 'An ICAPM for Goals-Based Investing' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4943241 'Portfolios for Long-Term Investors' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3790823 'Yale's Endowment Returns: Manager Skill or Risk Exposure?' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2959074   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

As the year draws to a close, the Rational Reminder Podcast team delivers an engaging year-end special with a unique twist. Rather than curating clips from previous episodes, Ben Felix, Dan Bortolotti, and Mark McGrath dive into an AMA-style episode, answering listener-submitted questions. They share reflections on lessons learned, highlight impactful community discussions, and provide thoughtful takes on investing strategies, personal growth, and financial planning. They discuss their evolving views on human capital integration, portfolio diversification, and the importance of behavioural finance in long-term planning. They also revisit key themes from earlier episodes and offer heartfelt thank-yous to their team and audience for a remarkable year. Join us for a mix of practical insights, entertaining banter, and a glimpse into what's ahead for the Rational Reminder Podcast. Don't miss this memorable year-end wrap-up! Key Points From This Episode:   (0:00:00) Episode format and a thank you to the PWL Capital team, producers, and audience. (0:05:14) Influential community discussions and their insights on efficient ETF design. (0:10:14) Hear the reason behind Ben's decision to shave his head for so long. (0:13:51) How to integrate human capital into useful financial planning and strategy. (0:19:33) They share their thoughts on the evolving definition of success in life and work. (0:23:33) Their top finance and investment book recommendations for retail investors. (0:28:50) Uncover the nuances of assessing a value premium within an ETF. (0:30:46) How real-life events shaped their approach to providing guidance and financial advice. (0:37:18) Return stacking and a comparison of Dimensional's and Avantis' vector portfolios. (0:41:05) Risks of bonds, bills, and credit and why past returns do not guarantee future results. (0:48:27) Explore the complexities of tax-efficient ETFs and Thrift Savings Plan (TSP) options. (0:56:50) Balancing long-term investment assumptions with short-term market dynamics. (1:03:23) We debate the U.S. market's valuation and the implications for asset allocation. (1:10:15) Hard financial lessons from Ben, Mark, and Dan's investment journeys.  (1:16:29) Unpack the pros and cons of life insurance, infinite banking, and whole life insurance. (1:28:35) Aftershow: reviews, Marks's beard, a final thank you, 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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ 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 Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/ Canadian Couch Potato — https://canadiancouchpotato.com/ The Podcast Consultant — https://thepodcastconsultant.com/ Morgan Housel — https://www.morganhousel.com Dimensional Fund Advisors — https://dimensional.com/ Avantis — https://avantisfi.com/ Dan Solin — https://danielsolin.com/ Global X — https://globalxetfs.com/ Episode 138: Factor Investing in Fixed Income — https://rationalreminder.ca/podcast/138 Episode 163: Dave Plecha — https://rationalreminder.ca/podcast/163 Episode 198: Gerard O'Reilly — https://rationalreminder.ca/podcast/198 Episode 316: Andrew Chen — https://rationalreminder.ca/podcast/316 Episode 332: Randolph Cohen & Michael Green — https://rationalreminder.ca/podcast/332   Books From Today's Episode:   Are You a Stock or a Bond? — https://amazon.com/Are-You-Stock-Bond-Financial/dp/0133115291 Reboot Your Portfolio — https://amazon.com/Reboot-Your-Portfolio-Successful-Investing-ebook/dp/B09P4G9LR7 Wealthier — https://amazon.com/Wealthier-Investing-Field-Guide-Millennials-ebook/dp/B0CX2VD1CW The Psychology of Money — https://amazon.com/Psychology-Money-Timeless-lessons-happiness/dp/0857197681 Thinking, Fast and Slow — https://amazon.com/Thinking-Fast-Slow-Daniel-Kahneman/dp/0374533555 A Random Walk Down Wall Street — https://amazon.com/Random-Walk-Down-Wall-Street/dp/0393330338/ Winning the Loser's Game — https://amazon.com/Winning-Losers-Game-Strategies-Successful/dp/1264258461/ Wealth Planning Strategies for Canadians 2024 — https://amazon.ca/Wealth-Planning-Strategies-Canadians-2024/dp/166871504X Becoming Your Own Banker — https://amazon.com/Becoming-Your-Own-Banker-Infinite/dp/B001NZO1DS   —    Papers From Today's Episode:    'Who Are the Value and Growth Investors?' — https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.12473 'Portfolios for Long-Term Investors' — https://academic.oup.com/rof/article/26/1/1/6484661 'Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice' — https://dx.doi.org/10.2139/ssrn.4590406

What shapes investor beliefs and behaviours? Steve Utkus, a leading expert in investor behaviour and former Global Head of Investor and Retirement Research at Vanguard, brings decades of groundbreaking insights to this episode. Drawing on exclusive access to Vanguard's anonymized client data and investor surveys, Steve uncovers the intricate links between what people believe and how they invest. In the first half, he reveals surprising findings from his research into investor beliefs and portfolio decisions. The second half dives into the impact of financial advisors, both human and robotic, on improving investor outcomes. Steve's reflections, enriched by years of collaboration with academic leaders and personal conversations with Vanguard founder Jack Bogle, offer a rare window into the world of data-driven financial research. Join us today for this fascinating conversation as we unpack fresh perspectives on investor behaviour and the evolving role of financial advice! Key Points From This Episode:   (0:00:20) The importance of understanding investor belief, Steve's unique approach to studying it, and the benefits of using survey data. (0:08:37) Understanding the effects of individual beliefs on portfolio equity shares. (0:13:40) How equity sensitivity varies with things like trading frequency and how observed sensitivity compares with predictions of an asset pricing model. (0:17:27) The variation of beliefs across different groups and the strong effect of being a pessimist, optimist, or having a middle-of-the-road perspective. (0:21:29) Investor cash flow expectations, how it affects stock return expectations, and how it aligns with models of equilibrium. (0:24:35) The impact of stock market disaster expectations on future stock returns and the effect of COVID-19 on investor expectations. (0:33:37) ESG investing motives, portfolio impact, and the role of financial returns. (0:38:35) Unpacking the impact of robo-advisors on previously DIY investors and who benefits. (0:45:21) Pros and cons of human financial advisors: the needs they satisfy over robo-advisors. (0:53:12) How unadvised investors' needs differ from those who get financial advice. (0:54:04) What determines how much value investors place on financial advice and how they think about the trade-offs between fees and the value of advice. (01:00:00) Reasons traditionally-advised people give for not switching to robo-advising. (01:03:15) Having a relationship with a good advisor: how it impacts investor behaviour through poor market performance periods, and the importance of frequent quality communication. (01:13:07) The key attributes of a high-retention advisor and what they should be focusing on. (01:19:02) Success, retirement, timing, and knowing when to leave, according to Steve.   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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ 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 Steve Utkus on LinkedIn — https://www.linkedin.com/in/steveutkus/ Episode 278: Juhani Linnainmaa — https://rationalreminder.ca/podcast/278   Books From Today's Episode: Bogle on Mutual Funds — https://www.amazon.com/Bogle-Mutual-Funds-Perspectives-Intelligent/dp/111908833X   Papers From Today's Episode:  'Political Cycles and Stock Returns' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2920401 Scott Cederburg Paper — 'The Diversification and Welfare Effects of Robo-advising' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X24000928 'Who Benefits from Robo-advising? Evidence from Machine Learning' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3552671 'Human Financial Advice in the Age of Automation' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4301514 'The Misguided Beliefs of Financial Advisors' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3101426

What makes Warren Buffett's investment legacy so iconic, and how has his advice shaped the world of investing? In this episode, we delve into Warren Buffet's investment philosophy and the lessons he offers everyday investors. In our conversation, we unpack the impact of his investment strategies on the financial world, debunk common misconceptions, and discuss how his strategies have changed over time. We also examine the structural barriers to replicating his success, the complexities of scale and changing market dynamics, and the parallels between his approach and modern asset pricing models. Discover Warren Buffett's astonishing historical returns, his perspectives on diminishing returns for active managers, and the misunderstood nuances of his advice regarding index funds. Gain insight into academic research on Warren Buffett's success, his pragmatic view on cash holdings, and his opinion on the value of dividends for investors. Tune in to learn about the world's greatest investor and how you can apply his wisdom to your own portfolio!   Key Points From This Episode:   (0:04:55) Warren Buffett's legacy and Berkshire Hathaway's performance history. (0:13:04) The problem of diminishing returns to scale and finding skilled active managers. (0:18:37) Reasons Buffett repeatedly advises most investors to choose low-cost index funds.  (0:23:14) Why identifying skilled managers before they outperform the market is impossible. (0:30:15) Research explaining Buffett's success using multi-factor asset pricing models. (0:35:30) Insight into why Berkshire Hathaway holds large cash reserves as part of its strategy. (0:44:02) Buffett's views on dividends and why his focus remains on reinvestment. (0:48:16) Why diversification concentration is a bad strategy and Buffett's investing superpower. (0:57:07) Aftershow: Ben's experience of being on The Wealthy Barber podcast. (0:58:07) Reviews and feedback from the episode with Randolph Cohen and Michael Green. (1:04:58) Changes to our year-end episode format and what listeners can expect.   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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ 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 Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/ CPP by the Fire — https://pages.pwlcapital.com/webinar_cpp_by_the_fire Braden Warwick on LinkedIn — https://linkedin.com/in/braden-warwick-a40b48a3/ PWL Capital CPP Tool — https://research-tools.pwlcapital.com/research/cpp Berkshire Hathaway — https://berkshirehathaway.com/ Berkshire Hathaway Shareholder Letters — https://berkshirehathaway.com/letters/letters.html Richard Ennis — https://richardmennis.com/author/richard-m-ennis Home Trust — https://hometrust.ca/ Ben on The Wealthy Barber Podcast — https://thewealthybarber.com/podcast/ben-felix-a-deep-dive-into-the-world-of-investing-twb-podcast-5/ Episode 61: Ted Seides — https://rationalreminder.ca/podcast/61 Episode 220: Jonathan Berk and Jules van Binsbergen — https://rationalreminder.ca/podcast/220 Episode 332 - Randolph Cohen & Michael Green — https://rationalreminder.ca/podcast/332   Books From Today's Episode:   The Intelligent Investor — https://amazon.com/dp/B0CBQ18KDB/   Papers From Today's Episode:    'Buffett's Alpha' — https://doi.org/10.2469/faj.v74.n4.3 'Mutual Fund Flows and Performance in Rational Markets'— https://journals.uchicago.edu/doi/abs/10.1086/424739

How do you balance family values, evidence-based investing, and building long-term wealth? In this episode, we are joined by Magnus Reitan, CEO of Reitan Kapital, to discuss his evidence-based approach to wealth management. Reitan Kapital is a leading investment firm specializing in index fund strategies and innovative portfolio optimization techniques. Under his leadership, the firm has become a key player in the investment industry, known for its analytical approach and commitment to sustainable and effective financial solutions. In our conversation, we delve into the disciplined, evidence-based philosophy driving Reitan Kapital's investment strategy, the importance of simplicity in managing wealth, and the lessons he's learned as an investor and a leader. We also explore the nuances around managing family wealth, unpack the importance of aligning investment strategies with family and business goals, and uncover the influence of Norway's Sovereign Wealth Fund on Reitan Kapital's approach. Join us as we explore the intersection of finance, legacy, and innovation and learn why a low-cost, evidence-based investment strategy works with Magnus Reitan. Tune in now!   Key Points From This Episode:   (0:03:27) The Reitan family's journey from a single grocery store to a multinational group. (0:04:20) How Reitan Kapital fits into the broader Reitan Group and how it started. (0:06:35) Discover how Reitan Kapital defines risk and the role of access liquidity.  (0:08:06) Magnus shares how he developed his personal investment philosophy. (0:09:33) Hear how his personal interest in finance led to founding Reitan Kapital. (0:11:24) Explore the differences between managing a business and a family portfolio. (0:12:26) Why the company chose to hire a CIO who was not part of the Reitan family. (0:13:59) Reitan Kapital's values: long-term perspective, diversification, liquidity, and low costs. (0:17:37) Hear how the family decided on and agreed to the company's investment approach. (0:18:58) Asset allocation at Reitan Kapital and the reasons behind its approach. (0:21:50) Avoiding portfolio complexity and the benefits of evidence-based investing. (0:24:30) The influence of Norway's Sovereign Wealth Fund on Reitan Kapital's philosophy. (0:26:07) Sources of information for learning about portfolio management and financial markets. (0:27:00) Lessons and key takeaways from the recent Reitan Kapital investor conference. (0:29:38) He shares his definition of success and why passion is important.   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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Magnus Reitan on LinkedIn — https://linkedin.com/in/magnus-reitan-3a6b90225/ Reitan Kapital — https://reitan.no/no/selskap/170/reitan-kapital Reitan Retail — https://reitanretail.no/en Reitan Eiendom — https://reitan.no/no/selskap/171/reitan-eiendom Episode 321: Evidence in Practice with Håkon Kavli — https://rationalreminder.ca/podcast/321 Håkon Kavli on LinkedIn — https://linkedin.com/in/haakonkavli/ Sindre Drevland on LinkedIn — https://linkedin.com/in/sindredrevland/

What does Trump's re-election mean for the markets? In this episode, Ben and Mark explore The Presidential Puzzle, a phenomenon revealing that equity risk premiums have historically been higher under Democratic presidencies than Republican ones. With Trump returning to office as the 47th U.S. president, they examine how voter risk aversion shapes political outcomes and market expectations, offering surprising insights into this intriguing connection between politics and investing. They also delve into market timing pitfalls, the importance of diversification, and how financial advisors can help investors navigate emotionally charged decisions. To wrap up, Ben and Mark reflect on listener perspectives and explore the intriguing future of Bitcoin in finance. Tune in to learn what Trump's win means for expected stock returns and more! Key Points From This Episode: (0:00:18) Mark and Ben's experiences at the Physician Financial Independence Conference. (0:06:53) Republicans vs. Democrats: What the election results mean for the stock market. (0:09:09) The Presidential Puzzle and how belief informs asset choices among voters. (0:15:12) How risk aversion and the economy impact election outcomes and expected returns. (0:20:08) What investors should and should not do with this information. (0:24:38) The dangers of making financial decisions based on emotional predictions. (0:30:02) Unpacking the relationship between global risk aversion and U.S. presidencies. (0:31:20) Our aftershow segment: digging into recent reviews, the podcast topic puzzle, Ben's recent trip to Boston, and Bitcoin.   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 — info@rationalreminder.ca Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ 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 Episode 217: The Expected Returns of Financial Literacy — https://rationalreminder.ca/podcast/217 Episode 313: When Should You Hire a Financial Advisor? — https://rationalreminder.ca/podcast/313 Episode 124: Ľuboš Pástor — https://rationalreminder.ca/podcast/124 Papers From Today's Episode:  'Belief Disagreement and Portfolio Choice' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3934061 'Political Cycles and Stock Returns' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2920401 'The Presidential Puzzle: Political Cycles and the Stock Market' — https://www.jstor.org/stable/3648176

Are index funds a silent disruptor? Or are the concerns overblown? In this grab-your-popcorn episode, Michael Green returns to the show after his previous appearance elicited a wave of compelling feedback from listeners. These included very smart individuals in academia and practice who were interested in hearing a counter perspective. Joining Michael today for a lively debate is Randolph Cohen, Senior Lecturer of Entrepreneurial Management in the Finance Unit at Harvard Business School. In our conversation, Michael shares his deep concerns about how index funds and target-date funds might be distorting financial markets, honing in on the tension between market efficiency and price elasticity. Randolph counters with an academically grounded perspective, drawing on his PhD and years of research and teaching at one of the world's leading business schools. With Ben and Cameron moderating, the discussion explores both sides without reaching a definitive conclusion. Tune in to witness this spirited, nuanced exchange and decide where you stand! Key Points From This Episode:   (0:00:14) Introducing Michael Green, Randolph Cohen, and today's topics of debate. (0:06:00) Defining passive investing, distinguishing between the two different meanings of "the rise of passive investing", and how much of the market is currently held by passive investors. (0:12:53) Michael's concerns with the high levels of passive investing and Randy's response. (0:20:55) Addressing the proliferation of target-date funds and their use in different scenarios. (0:28:48) Debating risk in the market, raised valuations, and retirement savings diversification. (0:42:22) A breakdown of the biggest thing Michael and Randy disagree on: how passive investing is impacting stock market valuations. (0:57:06) Answering the question: does inelasticity rise with passive, and how does it shape the impact of active managers? (01:06:14) Unpacking whether the rise of passive has made the markets more efficient; an accompanying refresher on the two types of passive. (01:09:27) Reasons to doubt whether there really is a rise in both types of passive and the effect of the rise in mega firms. (01:19:16) The state of fundamental analysis in the current market and Michael's response to a recent paper by Goldman Sachs attempting to isolate the component of passive. (01:23:30) Unpacking the cross-sectional impact on stock valuations from index investing and insights on the work of Valentine Haddad. (01:31:28) The implications of today's subject matter for investors and what they should be doing with this information. (01:44:22) Reflection on why more experts don't share Michael's level of concern. (01:47:42) Randy's takeaways from today's conversation, why he still does not share Michael's level of concern, and what he might be worried about.   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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ 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 'Yes, I give a fig… Thoughts on markets from Michael Green' — https://www.yesigiveafig.com/ Randolph Cohen — https://www.hbs.edu/faculty/Pages/profile.aspx?facId=6597 Randolph Cohen on LinkedIn — https://www.linkedin.com/in/randy-cohen/ Dangerous Visions Podcast — https://podcasts.apple.com/us/podcast/dangerous-vision-with-randy-cohen/id1477519445 Episode 302: Michael Green — https://rationalreminder.ca/podcast/302 Episode 322: Marco Sammon — https://rationalreminder.ca/podcast/322 Episode 310: Antoinette Schoar — https://rationalreminder.ca/podcast/310 Episode 212: Ralph Koijen — https://rationalreminder.ca/podcast/212 Episode 314: Valentine Haddad — https://rationalreminder.ca/podcast/314 Episode 224: Scott Cederburg — https://rationalreminder.ca/podcast/224 Episode 284: Scott Cederburg — https://rationalreminder.ca/podcast/284 The Grossman - Stiglitz Paradox (feat. The Plain Bagel) — https://www.youtube.com/watch?v=zoXMZxe8crI   Books From Today's Episode:   Irrational Exuberance — https://www.amazon.com/Irrational-Exuberance-3rd-Robert-Shiller/dp/0691166269    Papers From Today's Episode:    'The Disappearing Index Effect' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4294297 'Passive Investing and the Rise of Mega-Firms' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4851266 'Retail Financial Innovation and Stock Market Dynamics: The Case of Target Date Funds' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3723265 Valentine Haddad on Google Scholar — https://scholar.google.com/citations?user=PlPjP48AAAAJ '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 'Household Portfolios and Retirement Saving Over the Life Cycle' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4068063 'The equity premium: A puzzle' — https://www.sciencedirect.com/science/article/abs/pii/0304393285900613 'In Search of the Origins of Financial Fluctuations: The Inelastic Markets Hypothesis' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3686935

In today's episode, Cameron sits down with Mark McGrath to talk about his trip to Trondheim, Norway, the event he attended there, and his presentation in which he shared top lessons from prestigious Rational Reminder Podcast guests. Tuning in, you'll hear Cameron's top takeaways from conversations with Nobel laureate Eugene Fama and his collaborator Kenneth French, as well as Robert Merton, Antti Ilmanen, Professor Ludovic Phalippou, and more. We also delve into the changing industry trends regarding index investing and the many benefits that come with embracing it, including how it helps financial advisors better serve their clients. Stay tuned for our after-show section, where we discuss advice for new advisors, from developing a robust investment philosophy to building a network, along with insights to help consumers navigate the industry and much more. To learn all about Cameron's trip to Norway, top guest takeaways, and industry trends around index investing, be sure to tune in!   Key Points From This Episode:   (0:01:13) An overview of today's episode and a discussion on industry trends. (0:03:56) Our conversation with Håkon Kavli on managing Reitan Kapital. (0:04:38) What it was like for Cameron to meet Håkon Kavli and Magnus Reitan in Norway. (0:05:42) The excellent event in Trondheim, Norway, and their impressive lineup of speakers. (0:08:56) Unpacking industry trends in index investing and why more people are embracing it. (0:09:42) The light bulb moment for Mark and Cameron regarding index investing. (0:19:07) Highlights from our interviews with Eugene Fama, Ken French, and Robert Merton. (0:25:28) Dr. Annamaria Lusardi's insights and takeaways from our John Cochrane interview. (0:29:05) Top lessons from our conversation with Antti Ilmanen on low-expected returns. (0:30:58) Insights from talking with Professor Ludovic Phalippou about private equity. (0:32:22) Closing thoughts on Cameron's presentation in Norway and index investing trends. (0:39:44) Our aftershow segment: advice for new advisors, ways the industry has changed, tips for consumers, technology insights, personal updates, 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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ 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 Episode 321: Evidence in Practice with Håkon Kavli – https://rationalreminder.ca/podcast/321 Professor Marcos López de Prado — https://www.orie.cornell.edu/faculty-directory/marcos-lopez-de-prado Erik Hilde — https://www.linkedin.com/in/erik-hilde-9570a785/?originalSubdomain=no Dan Bortolotti — https://www.canadianmoneysaver.ca/authors/dan-bortolotti Canadian Couch Potato Blog — https://canadiancouchpotato.com/ Canadian Couch Potato Podcast — https://canadiancouchpotato.com/podcast/ Justin Bender — https://www.linkedin.com/in/justin-bender-cfa-cfp%C2%AE-tep-195b8b27/?originalSubdomain=ca Episode 200: Prof. Eugene Fama — https://rationalreminder.ca/podcast/200 Tune Out the Noise — https://www.dimensional.com/film Episode 100: Prof. Kenneth French — https://rationalreminder.ca/podcast/100 Episode 234: Prof. Robert C. Merton — https://rationalreminder.ca/podcast/234 Episode 232: Dr. Annamaria Lusardi — https://rationalreminder.ca/podcast/232 Episode 169: Prof. John Cochrane — https://rationalreminder.ca/podcast/169 Episode 202: Antti Ilmanen – https://rationalreminder.ca/podcast/202 Episode 210: Prof. Ludovic Phalippou — https://rationalreminder.ca/podcast/210 Fama and French Three Factor Model — https://www.investopedia.com/terms/f/famaandfrenchthreefactormodel.asp Books From Today's Episode: Investing Amid Low Expected Returns — http://www.aqr.com/serenity The Empowered Investor — https://www.amazon.ca/Empowered-Investor-Canadian-Investment-Experience/dp/0991978307

What happens when index investing dominates the market? In this episode, we're joined by Davidson Heath, Assistant Professor of Finance at the University of Utah David Eccles School of Business, to explore this question and its surprising answers. Davidson's research dives into the unintended impacts of passive investing, examining how it influences price stability, corporate governance, and even the way we define shareholder responsibility. He unpacks how index funds, while supporting price efficiency, may be weakening governance structures by reducing shareholder oversight, a shift that could have lasting effects on corporate accountability. We also discuss the promise and limitations of socially responsible investing (SRI), as Davidson introduces the term "impact washing" to describe how some SRI funds fail to achieve real change despite their green branding. In a forward-looking segment, Davidson shares insights on the collaboration between AI and human intelligence in finance, giving a reassuring perspective on the future of machine and human co-existence in complex decision-making. This episode is a must-listen for anyone curious about the hidden dynamics of passive investing and the evolving role of technology in finance!   Key Points From This Episode: (0:02:22) Davidson's paper On Index Investing; Why active managers are important to indexing. (0:08:42) Conclusions on how index investing is affecting price efficiency. (0:11:10) The role of shareholders in corporate governance. (0:13:06) How the incentives of index funds to monitor portfolio firms differ from active funds. (0:15:10) Measuring how well index or active funds are monitoring the companies they own. (0:16:54) How the expense ratios of index funds affect their quality of monitoring. (0:18:08) What shareholders can do to monitor and make themselves heard. (0:20:31) How index fund ownership affects other firm-level governance issues. (0:21:30) Recap and takeaways on index funds and the market. (0:25:39) The impact of socially responsible investing (SRI) and how successful they are at selecting firms with better environmental, social, and governance (ESG) characteristics. (0:28:08) Unpacking "impact washing" in SRI funds and its consequences. (0:33:04) Insights on how ETFs are replicating index funds. (0:37:03) The implications of Davidson's findings for index ETF investors and the markets. (0:38:57) Details on Davidson's Cyborg Trading project and how it's using AI to complement human intelligence. (0:42:42) How Davidson defines success: being a part of a worthwhile endeavour.   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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ 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 Davidson Heath — https://davidsontheath.github.io/ Davidson Heath on LinkedIn — https://www.linkedin.com/in/davidson-heath-5a28999a/ Davidson Heath on Google Scholar — https://scholar.google.com/citations?user=Fr-HyLEAAAAJ&hl=en Cyborg — https://www.imdb.com/title/tt0097138/   Papers From Today's Episode:  'On Index Investing' — https://dx.doi.org/10.2139/ssrn.3055324 'Do Index Funds Monitor?' — https://doi.org/10.1093/rfs/hhab023 'Does Socially Responsible Investing Change Firm Behavior?' — https://doi.org/10.1093/rof/rfad002 'The Rise of Passive Investing and Active Mutual Fund Skill' — https://dx.doi.org/10.2139/ssrn.4190266 'Counterproductive Sustainable Investing: The Impact Elasticity of Brown and Green Firms' — https://dx.doi.org/10.2139/ssrn.4359282

Unlocking the power of education savings is often a complex task, but with the right strategies, a Registered Education Savings Plan (RESP) can be a game-changer for Canadian families planning their children's future. In this episode, Ben Felix, Dan Bortolotti, and Mark McGrath take a deep dive into the mechanics of the RESP, covering everything from optimal contributions and grant maximization to tax-efficient withdrawals and asset allocation. They discuss critical factors like the Canada Learning Bond (CLB) for low-income families and the intricacies of group RESPs, noting how pooled plans, though easy to join, can financially penalize those who don't stay the course. With the RESP's unique 35-year lifespan and its flexible range of education options, this in-depth conversation brings clarity to a valuable tool often overshadowed by its complexity. Tune in to discover practical strategies that could transform how you fund education, optimize your investments, and make the most of Canada's RESP benefits.   Key Points From This Episode:   (0:02:43) Purpose and structure of the RESP as a tool to fund post-secondary education. (0:06:25) Insight and tips for how contribution limits and government matching grants work. (0:07:13) How the CLB supports low-income families with up to $2,000 without contributions. (0:10:13) Family RESPs, which allow multiple beneficiaries to share contributions and earnings. (0:11:54) Distinguishing between Education Assistance Payments (EAP), Post-Secondary Education Payments (PSE), and their tax implications for beneficiaries. (0:14:27) Front-loading versus annual contributions: optimal contribution strategies to maximize grants and investment growth. (0:23:22) Tips for tax-efficient RESP withdrawals, especially if beneficiaries have other income. (0:35:28) Education outside of Canada, over-contribution penalties, and other considerations. (0:37:28) RESPs and estate planning, including naming a successor subscriber in your will. (0:42:54) Asset allocation advice: prioritize growth early and stabilize as educational costs near. (0:48:00) Constructive criticism of RESP policies to increase access for low-income families. (1:02:02) Summing up the benefits and challenges of RESPs and encouraging families to use them wisely as part of their education savings plan. (1:07:39) The aftershow: reviews, praise for Dan, and a community debate on expected returns.   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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ 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 Dan Bortolotti — https://benderbenderbortolotti.com/about/our-team/ Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/ Registered Education Savings Plan (RESP) — https://www.canada.ca/en/services/benefits/education/education-savings/plan.html Canada Learning Bond — https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-education-savings-plans-resps/canada-education-savings-programs-cesp/canada-learning-bond.html Aaron Hector: 'Optimal RESP funding strategies if you have $50,000 to invest' — https://x.com/AaronHectorCFP/status/1787188396248731967  Aaron Hector: 'How to draw down a $200k RESP over a 4 year university program' — https://x.com/AaronHectorCFP/status/1788196751821738360 Employment and Social Development Canada (ESDC) — https://www.canada.ca/en/employment-social-development.html 'How to Invest Your RESP' — https://benderbenderbortolotti.com/how-to-invest-your-resp/ 'The Regulation of Group Plan RESPs and the Experiences of Low-Income Subscribers' — https://seedwinnipeg.ca/wp-content/uploads/2024/09/The_Regulation_of_Group_Plan_RESPs_and_the_Experiences_of_Low-income_Subscribers.pdf Episode 326: Dr. Sunil Wahal: Exploring the Nuances of Financial Science — https://rationalreminder.ca/podcast/326   Papers From Today's Episode:    'The Anatomy of Value and Growth Stock Returns' — https://dx.doi.org/10.2139/ssrn.806664 'Migration' — https://dx.doi.org/10.2139/ssrn.926556

Have you ever wondered how the world's top financial thinkers shaped the way we invest today? In this episode, Ben and Cameron sit down with Professor Stephen Foerster from the Ivey Business School to explore the evolution of modern investing. As a distinguished financial expert and co-author of In Pursuit of the Perfect Portfolio, Professor Foerster dives into the groundbreaking work of financial pioneers like Harry Markowitz, Bill Sharpe, Gene Fama, and others, unpacking their remarkable contributions to portfolio management, risk assessment, and market efficiency as we know it today. Tuning in, you'll gain a deeper understanding of Markowitz's revolutionary diversification theory, Sharpe's introduction of beta as a risk measure, and Fama's Efficient Market Hypothesis, as well as each of their perspectives on the "perfect portfolio," tying together the history, theory, and practical application of modern investment strategies. Whether you're looking to sharpen your strategy or build your investment knowledge from the ground up, this conversation with Professor Foerster is packed with actionable takeaways and fascinating stories that could change the way you approach your financial future. Don't miss this opportunity to learn from the thought leaders who shaped the market!   Key Points From This Episode:   (0:03:29) Contrasting the historical art of investing with the modern science of investing. (0:04:44) Markowitz's diversification theory and the importance of balancing risk and return. (0:09:39) Sharpe's capital asset pricing model (CAPM) and his contribution to measuring risk. (0:16:13) Insight into Fama's Efficient Markets Hypothesis and the joint hypothesis problem. (0:19:13) The rise of factor investing and the significance of Fama-French's three-factor model. (0:23:26) Unpacking Shiller and Fama's main point of disagreement on bubbles. (0:26:50) Bogle's perfect portfolio and persistence about the index fund, despite resistance. (0:29:37) How the Black-Scholes-Merton (BSM) option pricing formula changed the world. (0:34:37) Ways that Merton contributed to portfolio theory and his take on TIPS. (0:36:20) Key takeaways from talks with Martin Leibowitz, Charlie Ellis, and Jeremy Siegel. (0:37:35) An interesting analogy for Professor Foerster's take on the "perfect portfolio." (0:40:53) Correlation vs. causation in stock pricing and how it applies to factor investing. (0:46:38) Examples of masterly inactivity and investor lessons from Madoff's Ponzi scheme. (0:52:07) The dangers of FOMO, a SPACs cautionary tale, and lessons from value investors. (1:00:43) Winning at tennis vs. investing and risks of over-reliance on automated decisions. (1:06:02) Long-term lessons from pioneers in finance to improve investment strategies today.   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 — https://www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Professor Stephen Foerster — https://stephenrfoerster.com/ Ivey Business School — https://www.ivey.uwo.ca/ Stephen Foerster on LinkedIn – https://www.linkedin.com/in/stephen-foerster-26b85319/ Stephen Foerster on X – https://x.com/profsfoerster Stephen Foerster Books — https://www.amazon.com/stores/author/B001KDO1L0 'Cristiano Ronaldo snubbed Coca-Cola. The company's market value fell $4 billion.' — https://www.washingtonpost.com/sports/2021/06/16/cristiano-ronaldo-coca-cola/   Books From Today's Episode:   In Pursuit of the Perfect Portfolio: The Stories, Voices, and Key Insights of the Pioneers Who Shaped the Way We Invest — https://www.amazon.com/dp/0691229880 Trailblazers, Heroes, and Crooks: Stories to Make You a Smarter Investor — https://www.amazon.com/dp/B0DHLVYK1Q In Pursuit of the Unknown: 17 Equations That Changed the World — https://www.amazon.com/dp/0465085989 A History of Interest Rates — https://www.amazon.com/dp/0471732834 Winning the Loser's Game: Timeless Strategies for Successful Investing — https://www.amazon.com/dp/0071813659 Stocks for the Long Run — https://www.amazon.com/dp/1264269803/ Extraordinary Tennis For The Ordinary Player — https://www.amazon.com/dp/0517511991   Papers From Today's Episode:    'Efficient Capital Markets: A Review of Theory and Empirical Work' — https://doi.org/10.2307/2325486 'The Loser's Game' — https://doi.org/10.2469/faj.v31.n4.19 'The Pricing of Options and Corporate Liabilities' — https://doi.org/10.1142/9789814759588_0001

What does it take to manage a $60 billion wealth management firm while keeping investment strategies grounded in scientific thinking? In this episode, we're joined by Don Calcagni, Chief Investment Officer at Mercer Advisors. Don chairs the firm's investment committee and provides guidance on mergers and acquisitions, investment integration, and long-term strategic planning. His expertise spans fiduciary oversight, portfolio management, private equity, and financial mathematics. In our conversation, we discuss how his firm constructs client portfolios, engages with academic and industry experts, and leverages a factor-based investment approach. He also explains the importance of having an investment philosophy rooted in fiduciary principles and delves into how Mercer Advisors manages fiduciary oversight for billions of dollars in assets across thousands of families. Explore the details of portfolio governance and the role of the firms's alternative investment platform space. Gain insights on value metrics, factor investing, and how Mercer works to provide a family-office experience for everyday clients. Tune in for a deep dive into portfolio construction and the evolving landscape of wealth management with Don Calcagni! Key Points From This Episode:   (0:05:22) Learn about Mercer Advisors and the range of services it has on offer. (0:07:10) Unpack Mercer Advisors' approach and philosophy to portfolio construction. (0:11:55) The Building Better Portfolio Summit and the purpose of the event. (0:17:08) How the meetings are structured and the main takeaways from the last event. (0:24:45) What topics cause extreme points of agreement and disagreement at the meetings. (0:29:21) Find out how takeaways from the events are implemented into client portfolios. (0:31:19) Mercer Advisors' recently launched alternative investment platform space. (0:40:23) Don shares valuable recommendations and advice for the average investor. (0:42:23) Aftershow: the controversy surrounding the RBC options trading incident. (0:49:57) Listener feedback, reviews, updates, and upcoming events.   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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ 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://linkedin.com/in/dan-bortolotti-8a482310/  Canadian Couch Potato — https://canadiancouchpotato.com/blog/  Don Calcagni on LinkedIn — https://linkedin.com/in/donald-calcagni-8104b546/ Mercer Advisors — https://merceradvisors.com/ 'Building Better Portfolios | 2023 Summit' — https://youtu.be/TWYukQogQPA Dimensional Fund Advisors — https://dimensional.com/ BlackRock — https://blackrock.com/ Avantis — https://www.avantisinvestors.com/ AQR — https://aqr.com Carlyle — https://carlyle.com/ Royal Bank of Canada (RBC) — https://www.rbcroyalbank.com Future Proof Festival — https://futureproofhq.com/festival/ Episode 316: Andrew Chen — https://rationalreminder.ca/podcast/316 Episode 323: Renting Versus Buying a Home in Canada 2005-2024 — https://rationalreminder.ca/podcast/323 Episode 325: Addressing 200+ Comments on Renting vs. Owning a Home — https://rationalreminder.ca/podcast/325   Papers From Today's Episode:    'Portfolio Selection' — https://doi.org/10.1111/j.1540-6261.1952.tb01525.x

What are the critical factors driving investment success? How can investors balance profitability and risk? In this episode, we sit down with Dr. Sunil Wahal, the Jack D. Furst Professor of Finance and Director of the Center for Responsible Investing at the W.P Carey School of Business at Arizona State University, to delve into the intricacies of financial science. With over 25 years of academic and practical experience, Dr. Wahal shares his unique perspective on factor investing, profitability premiums, and how to approach value investing in today's complex financial environment. He talks about the joint distribution of value and profitability, explains how profitability premiums work, and discusses the challenges faced when integrating academic research into practical investing strategies. Dr. Wahal also touches on common misconceptions in financial theory, the long-term benefits of maintaining a diversified investor base, and why understanding the nuances of financial risk is key to avoiding costly mistakes. Gain insights into building a successful investment portfolio grounded in the principles of financial science and how to avoid common pitfalls in factor investing. Join us to hear actionable strategies for balancing risk, understanding factors, and applying academic research to real-world scenarios with Dr. Sunil Wahal! Key Points From This Episode:   (0:04:15) Dr. Wahal's work on profitability, data sourcing challenges, and its significance. (0:08:01) The impact of controlling the value of the profitability premium. (0:10:08) Correlations between value and profitability and the benefits of "tilted" portfolios. (0:14:48) Steps for unleveraged long-term investors to build profitable portfolios. (0:17:27) How the joint distribution of value and profitability differs from a profitability screen. (0:20:43) Approaches of large financial firms to implementing value and profitability in portfolios. (0:24:41) Time horizons for tiled portfolios and their expected returns after cost.  (0:30:53) Insight into how institutions decide on which investment managers to hire and fire. (0:38:00) Exploring how the hiring and firing of managers affects institutional performance.  (0:40:16) Ways the relationships with institutions influence hiring decisions and performance. (0:44:35) Uncover how institutions select which private market firms to invest in. (0:48:58) Key takeaway lessons from Dr. Wahal's research for institutional investors. (0:50:52) Why frequently hiring and terminating managers may not be the best approach. (0:52:32) Advice for retail investors and the importance of cost in managing portfolios. (0:59:22) Reasons that institutions avoid indexing and the competitiveness of mutual funds. (1:02:29) How diversification among mutual fund investors affects performance. (1:09:19) Performance overview of actively managed global equity mutual funds. (1:12:35) The role of practitioner interaction and his concept 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 — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/  Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Sunil Wahal on LinkedIn — https://www.linkedin.com/in/sunil-wahal/ W. P. Carey School of Business — https://wpcarey.asu.edu/ Avantis Investors — https://www.avantisinvestors.com/ Dimensional Fund Advisors — https://www.dimensional.com/ UpWork — https://www.upwork.com NVIDIA — https://www.nvidia.com Episode 316: Andrew Chen — https://rationalreminder.ca/podcast/316   Books From Today's Episode:   The Interpretation of Financial Statements — https://www.amazon.com/dp/0887309135   Papers From Today's Episode:    'Long-Term Shareholder Returns: Evidence from 64,000 Global Stocks' — https://doi.org/10.1080/0015198X.2023.2188870 'Long-Run Stock Market Returns: Probabilities of Big Gains and Post-Event Returns' — https://dx.doi.org/10.2139/ssrn.3873010 'Prudential Uncertainty Causes Time-Varying Risk Premiums' — https://dx.doi.org/10.2139/ssrn.2176896 'A Five-Factor Asset Pricing Model' — https://dx.doi.org/10.2139/ssrn.2287202 'Do Institutional Investors Exacerbate Managerial Myopia?' — https://doi.org/10.1016/S0929-1199(00)00005-5

There are many different considerations behind housing when you are in the position to choose between renting or buying. During this episode, hosted by Ben Felix and Dan Bortolotti, we address user questions and comments on homeownership, rentals, and the factors that may lead to choosing one over the other. We discuss what makes homeownership more attractive as your financial situation evolves, consider whether or not landlords are making money on their properties in 2024, and explore the explanations behind whether or not renters are less wealthy than owners. This conversation also touches on one of the most common misconceptions about housing, why it is untrue, and how to make this key decision of renting or buying based on both lifestyle and financial considerations and the difference in mindset between renters and buyers. Join us today to hear all this and more. 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 — info@rationalreminder.caBenjamin 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 — info@rationalreminder.caBenjamin 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 — info@rationalreminder.caBenjamin 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 From a Repeat Sales Model' — https://doi.org/10.1016/j.jue.2006.07.007 'Characteristics of Depreciation in Commercial and Multifamily Property: An Investment Perspective' — https://doi.org/10.1111/1540-6229.12156 'Homeownership and Psychological Resources Among Older Adults: Do Gender and Mortgage Status Moderate Homeownership Effects?' — https://doi.org/10.1177/08982643211029174

Can we really understand the impact of passive ownership on the US market? Marco Sammon is an Assistant Professor in the Finance Unit at Harvard Business School. During this episode, he joins us to share deep insights into the complex and counter-intuitive nature of the index fund revolution. To kick off our conversation, we discuss some of the challenges associated with getting a true understanding of the scope of passive ownership across the US. Distinguishing between different approaches to investment, we begin to unpack Marco's paper with Alex Chinco, titled 'The Passive-Ownership Share Is Double What You Think It Is'. We touch on the relevance of Grossman Stiglitz in 2024, pricing and reconstitution, and the ins and outs of employee stock and compensation. Using the case studies of huge global firms, we consider how to best accommodate passive demand. Lastly, as an index investor who does not own index funds, Marco shares his opinion on whether index funds have had a net positive or negative impact on financial markets. Tune in today to get a more dynamic view of the complex world of index funding and investment. 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 — info@rationalreminder.caBenjamin 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 — info@rationalreminder.caBenjamin 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 Episode 210: Prof. Ludovic Phalippou — https://rationalreminder.ca/podcast/210 Reitan Kapital Conference — 'An interesting RRSP idea – all in on QQQ?' — https://www.tawcan.com/all-in-on-qqq/ VEQT Vanguard All-Equity ETF Portfolio — https://www.vanguard.ca/en/investor/products/products-group/etfs/VEQT Mark Mid Graph on X — Jason Pereira — https://jasonpereira.ca/ Papers From Today's Episode:  'Estimating Private Equity Returns from Limited Partner Cash Flows' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2356553 'Mutual Fund Flows and Performance in Rational Markets' — https://www.nber.org/papers/w9275 'What are Stock Investors' Actual Historical Returns? Evidence from Dollar-Weighted Returns' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=544142

Have you ever wondered how vibes can shape the economy? Or how the economy differs from financial markets? Or even how meme stocks operate? In this episode, we dive into the intersection of economic theory, social media, and public sentiment with Kyla Scanlon, an insightful economic commentator known for her relatable approach to explaining complex economic concepts. Kyla is a prolific content creator and founder of the financial education company, Bread. She produces a weekly newsletter, informative YouTube videos, the Let's Appreciate Podcast, and (almost) daily short-form videos that break down complex economic concepts into engaging, bite-sized content. She's also the author of In This Economy?: How Money & Markets Really Work, an indispensable guide to the "mad math and terrible terminology" of economics. Join us as we explore her unique vibecession concept, discuss the impact of social media-driven market movements, examine the housing crisis through the lens of generational wealth transfer and zoning laws, and much more. As Kyla explains it, economics isn't just about numbers. It's about the stories we tell and how they influence the world around us. For a fun, fascinating, and highly accessible look at the state of the economy today, don't miss this conversation with one of the internet's favorite financial educators!   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 — info@rationalreminder.caBenjamin 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' — https://www.fastcompany.com/90911399/kyla-scanlon-on-why-gen-z-is-redefining-the-concept-of-job-satisfaction 'Loneliness as a "market opportunity"' — https://youtu.be/UL9QiHYtajw Journal of Economic Teaching Symposium on Economics Teaching (JETSET) — https://journalofeconomicsteaching.org/symposium/ Kyla's Tweet about #JETSET24 — https://x.com/kylascan/status/1820242645672738938   Books From Today's Episode:   The Success Equation: Untangling Skill and Luck in Business, Sports, and Investing — https://www.amazon.com/dp/1422184234    Papers From Today's Episode:    'Why Do We Think That Inflation Expectations Matter for Inflation? (And Should We?)' — https://www.federalreserve.gov/econres/feds/why-do-we-think-that-inflation-expectations-matter-for-Inflation-and-should-we.htm 'Negativity drives online news consumption' — https://www.researchgate.net/publication/369301406_Negativity_drives_online_news_consumption

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 — info@rationalreminder.caBenjamin 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 — info@rationalreminder.caBenjamin 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 — info@rationalreminder.caBenjamin 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 — info@rationalreminder.caBenjamin 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?abstract_id=4308069

During this episode, we welcome back Eduardo Repetto, Chief Investment Officer of Avantis Investors. In his leadership capacity, he directs research design and the implementation of strategies and oversees the investment team and marketing initiatives. Our conversation kicks off with Edoardo's explanation of how Avantis systemizes active management before we dive into strategies for launching in Europe and beyond. He weighs in on the most significant capacity issues that people face today, offering solutions to tweak your approach. We touch on what makes Avantis strategies preferable for advisors and Eduardo shares his insights on the future of small-cap value strategies for emerging markets. We discuss short-term reversals, towing the line between growth and value and factors that should inform asset allocation before diving deeper into small-cap value in the US and Canada. Tune in today to hear more.    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 — info@rationalreminder.caBenjamin 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 — info@rationalreminder.caBenjamin 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 — valentin.haddad@anderson.ucla.edu UCLA Anderson School of Management — https://www.anderson.ucla.edu/ National Bureau of Economic Research (NBER) — https://www.nber.org/ Episode 212: Prof. Ralph Koijen — https://rationalreminder.ca/podcast/212   Papers From Today's Episode:    'How Competitive is the Stock Market? Theory, Evidence from Portfolios, and Implications for the Rise of Passive Investing' — https://dx.doi.org/10.2139/ssrn.3821263 'Concentrated Ownership and Equilibrium Asset Prices' — https://www.stern.nyu.edu/sites/default/files/assets/documents/Princeton- Haddad - Concentrated ownership.pdf 'Bubbles and the Value of Innovation' — https://drive.google.com/file/d/1tnvZ5L_zUcehn5hR720Nl1vtsTv4VgK0/view 'When selling becomes viral: Disruptions in debt markets in the COVID-19 crisis and the Fed's response' — https://doi.org/10.1093/rfs/hhaa145 'How Speculation Affects the Market and Outcome-Based Values of Innovation' — https://ideas.repec.org/a/fip/fedreb/94686.html

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 — info@rationalreminder.caBenjamin 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 — info@rationalreminder.caBenjamin 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 — info@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 — info@rationalreminder.caBenjamin 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 — info@rationalreminder.caBenjamin 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 — info@rationalreminder.caBenjamin 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 — info@rationalreminder.caBenjamin 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 — info@rationalreminder.caBenjamin 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 — info@rationalreminder.caBenjamin 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://rationalreminder.ca/podcast/234   Papers From Today's Episode:  Assessing the Relative Magnitude of Premiums — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3981766 Pursuing Multiple Premiums: Combination vs. Integration — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3793594 Weighting for the Right One: Weighting Scheme Design for Systematic Equity Portfolios — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4016481 To Hedge or Not to Hedge: A Framework for Currency Hedging Decisions in Global Equity & Fixed Income Portfolios — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3703333 Another Look at Timing the Equity Premiums — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4586684 Premium Timing with Valuation Ratios How Diversification Impacts Investment Outcomes: A Case Study on Global Large Caps How Diversification Impacts the Reliability of Outcomes — https://carlsoncap.com/wp-content/uploads/DFA_-How-Diversification-Impacts-the-Reliability-of-Outcomes.pdf  On the Valuation of Performance Fees and Their Impact on Asset Managers' Incentives — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3686987 Reversals and the returns to liquidity provision — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4339591

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 — info@rationalreminder.ca 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 — info@rationalreminder.caBenjamin 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 — info@rationalreminder.caBenjamin 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 — info@rationalreminder.caBenjamin 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://www.macrovoices.com/guest-content/list-guest-publications/3860-logica-capital-active-to-passive-for-macrovoices/file 'The Greatest Story Ever Sold: The Impact of Passive Investment on Markets' Slides — https://utahfpa.org/images/downloads/Library_Documents/market_policy_presentation.pdf 'The Inelastic Markets Hypothesis' — https://www.nber.org/papers/w28967

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 — info@rationalreminder.ca 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 — info@rationalreminder.ca 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 — info@rationalreminder.ca 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 — info@rationalreminder.caBenjamin 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 — info@rationalreminder.caBenjamin 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 — info@rationalreminder.ca 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 A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing — https://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393358380 Everyone Believes It; Most Will Be Wrong: Motley Thoughts on Investing and the Economy — https://www.amazon.com/Everyone-Believes-Most-Will-Wrong-ebook/dp/B00655BGBG The One-Page Financial Plan: A Simple Way to Be Smart About Your Money — https://www.amazon.com/One-Page-Financial-Plan-Simple-Smart/dp/1591847559 Setting the Table: The Transforming Power of Hospitality in Business — https://www.amazon.com/Setting-Table-Transforming-Hospitality-Business/dp/0060742763   Papers From Today's Episode:    'The Equity Premium' — https://onlinelibrary.wiley.com/doi/full/10.1111/1540-6261.00437 Scott Cederburg research: 'Long-Horizon Losses in Stocks, Bonds, and Bills: Evidence from a Broad Sample of Developed Markets' — https://www.paris-december.eu/sites/default/files//papers/2023/4393_scederburg_2023_complete.pdf Jules H. Van Binsbergen Paper: Is The United States A Lucky Survivor: A Hierarchical Bayesian Approach — https://rodneywhitecenter.wharton.upenn.edu/wp-content/uploads/2020/12/30-20.Wachter.VanBinsbergen.pdf

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 — info@rationalreminder.caBenjamin 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 — info@rationalreminder.ca 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/B0CL2Z23CT/ The Elements of Style — https://www.amazon.com/Elements-Style-Fourth-William-Strunk/dp/020530902X The Psychology of Money — https://www.amazon.com/Psychology-Money-Timeless-lessons-happiness/dp/0857197681 The Fund — https://www.amazon.com/Fund-Bridgewater-Associates-Unraveling-Street/dp/1250276934 Anatomy of a Breakthrough — https://www.amazon.com/Anatomy-Breakthrough-Unstuck-When-Matters/dp/1982182962 The Score That Matters — https://www.amazon.com/Score-That-Matters-Excellence-Yourself-ebook/dp/B0CGZ8HRXD The Algebra of Wealth — https://www.amazon.com/Algebra-Wealth-Formula-Financial-Security/dp/0593714024   Papers From Today's Episode: 'Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice' — https://dx.doi.org/10.2139/ssrn.4590406 'Global equity investing: The benefits of diversification and sizing your allocation' — https://corporate.vanguard.com/content/dam/corp/research/pdf/Global-equity-investing-The-benefits-of-diversification-and-sizing-your-allocation-US-ISGGEB_042021_Online.pdf

In this episode, we delve into the world of mindfulness and meditation with renowned author and meditation advocate, Dan Harris. In our conversation, Dan shares his personal journey from a high-stress career in the news to discovering the transformative power of mindfulness meditation. We explore Dan's best-selling book, 10% Happier which chronicles his exploration into mindfulness practices after experiencing a panic attack on live television. We discuss how Dan's quest for inner peace led him to explore meditation, the core principles of Dan's 10% Happier philosophy, and how mindfulness can lead to incremental but significant improvements in happiness. Discover why Buddhism is a religion that skeptics can line up behind, the intersection of mindfulness and financial decision-making, and the importance of empathy and self-awareness for financial advisors. Gain insights into applying mindfulness principles to everyday life, strategies for building the skill of happiness, the basic steps to start meditating, and much more! Join us on this insightful journey as we explore how mindfulness can truly transform lives and empower individuals to live with greater purpose, happiness, and fulfillment with Dan Harris! 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 — info@rationalreminder.ca 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 — info@rationalreminder.ca 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 — info@rationalreminder.caBenjamin 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. 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 — info@rationalreminder.ca 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

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 — info@rationalreminder.ca 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-Never-Changes/dp/0593332709 The Psychology of Money — https://www.amazon.com/Psychology-Money-Timeless-lessons-happiness/dp/0857197681

Does the 4% rule still work? In this episode, we welcome three esteemed experts to counter a recent controversial claim made on the Dave Ramsey Show regarding the validity of the 4% rule in retirement planning. Joining us is David Blanchett; the Managing Director and Head of Retirement Research for PGIM DC Solutions, Michael Finke; a distinguished professor of wealth management at the American College of Financial Services, and Wade Pfau; Director of Retirement Research at McLean Asset Management. In our conversation, these experts shed light on the intricate world of retirement income planning, dispelling misconceptions and advocating for a more nuanced approach. Discover the flaws in Ramsey's assertion and explore the dynamics of sequence of return risk in retirement planning. Unpack the complexities of investing in bonds for retirees and the evolving risk profiles of stocks over varying investment horizons. We also uncover the significance of variable spending rates, debunk the fallacies behind aggressive withdrawal suggestions, a safety-first approach in retirement finance, and much more. Tune in for an enlightening journey through retirement planning and equip yourself with expert insights to pave a secure path for your financial future!   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/ Rational Reminder Email — info@rationalreminder.ca 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/

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 — info@rationalreminder.ca 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 — info@rationalreminder.ca 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 Discount Code for Private Equity Certificate — RationalReminderPEC Justin Breen on LinkedIn — https://www.linkedin.com/in/justinbreen1/ BrEpic Communications LLC — https://www.brepicllc.com/ BrEpic Network — https://brepicnetwork.org/ Episode 188: Prof. Ayelet Fishbach — https://rationalreminder.ca/podcast/188 Professor Ayelet Fishbach's TEDxChicago Talk, The Science of Getting Motivated — https://www.youtube.com/watch?v=T8CegN1xssY Episode 286: Errol Morris — https://rationalreminder.ca/podcast/286 Episode 210: Prof. Ludovic Phalippou — https://rationalreminder.ca/podcast/210 Episode 237: Who are you, and who do you want to be? — https://rationalreminder.ca/podcast/237 Episode 224: Prof. Scott Cederburg — https://rationalreminder.ca/podcast/224 Episode 284: Prof. Scott Cederburg — https://rationalreminder.ca/podcast/284 Money Scope Podcast — https://moneyscope.ca/   Books From Today's Episode: Epic Life: How to Build Collaborative Global Companies While Putting Your Loved Ones First — https://www.amazon.com/Epic-Life-Collaborative-Companies-Putting/dp/1544532555 Same as Ever: A Guide to What Never Changes — https://www.amazon.com/Same-Ever-Guide-Never-Changes/dp/0593332709 The Geek Way — https://www.amazon.com/Geek-Way-Radical-Transforming-Business/dp/0316436704 Tightwads and Spendthrifts: Navigating the Money Minefield in Real Relationships — https://www.amazon.com/Tightwads-Spendthrifts-Navigating-Minefield-Relationships/dp/1250280079 Flow: The Psychology of Optimal Experience — https://www.amazon.com/Flow-Psychology-Experience-Perennial-Classics/dp/0061339202 Get It Done: Surprising Lessons from the Science of Motivation — https://www.amazon.com/Get-Done-Surprising-Lessons-Motivation/dp/0316538345

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 — info@errolmorris.com 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 — info@rationalreminder.caBenjamin 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/

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/238 Episode 240: Prof. Eric J. Johnson — https://rationalreminder.ca/podcast/240 Episode 244: Charles D. Ellis — https://rationalreminder.ca/podcast/244 Episode 246: Daniel H. Pink — https://rationalreminder.ca/podcast/246 Episode 248: Prof. William Goetzmann — https://rationalreminder.ca/podcast/248 Episode 250: Prof. John Y. Campbell — https://rationalreminder.ca/podcast/250 Episode 252: Prof. Burton Malkiel — https://rationalreminder.ca/podcast/252 Episode 254: David Blanchett — https://rationalreminder.ca/podcast/254 Episode 256: Prof. Hal Hershfield — https://rationalreminder.ca/podcast/256 Episode 258: Prof. Meir Statman — https://rationalreminder.ca/podcast/258 Episode 260: Prof. James Choi — https://rationalreminder.ca/podcast/260 Episode 262: Prof. Francisco Gomes — https://rationalreminder.ca/podcast/262 Episode 264: Pim van Vliet — https://rationalreminder.ca/podcast/264 Episode 266: Prof. Cass Sunstein — https://rationalreminder.ca/podcast/266 Episode 268: Itzhak Ben-David — https://rationalreminder.ca/podcast/268 Episode 269: Preet Banerjee — https://rationalreminder.ca/podcast/269 Episode 270: Victor Haghani and James White — https://rationalreminder.ca/podcast/270 Episode 272: Rob Carrick — https://rationalreminder.ca/podcast/272 Episode 273: Professor Samuel Hartzmark — https://rationalreminder.ca/podcast/273 Episode 275: Live from Future Proof 2023 with Hal Hershfield — https://rationalreminder.ca/podcast/275 Episode 276: Darin Soat — https://rationalreminder.ca/podcast/276 Episode 278: Juhani Linnainmaa — https://rationalreminder.ca/podcast/278 Episode 280: Shane Parrish — https://rationalreminder.ca/podcast/280 Episode 282: James Grubman —  Episode 224: Scott Cederberg — https://rationalreminder.ca/podcast/224 Winning the Loser's Game: Timeless Strategies for Successful Investing — https://www.amazon.com/Winning-Losers-Game-Strategies-Successful/dp/1264258461 A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing — https://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393358380 Your Future Self: How to Make Tomorrow Better Today — https://www.halhershfield.com/yourfutureself A Wealth of Well-Being: A Holistic Approach to Behavioral Finance — https://www.amazon.com/Wealth-Well-Being-Holistic-Approach-Behavioral/dp/1394249675 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 Clear Thinking: Turning Ordinary Moments into Extraordinary Results — https://www.amazon.com/Clear-Thinking-Turning-Ordinary-Extraordinary/dp/0593086112 30 Lessons for Living — https://www.karlpillemer.com/books/30-lessons-for-living/ 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 — info@rationalreminder.caBenjamin 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

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 — info@rationalreminder.caBenjamin 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'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 — info@rationalreminder.caBenjamin 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 — info@rationalreminder.ca 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 — info@rationalreminder.ca 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 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 — info@rationalreminder.ca 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 — info@rationalreminder.caBenjamin 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 during a recession?' — https://www.theglobeandmail.com/investing/personal-finance/household-finances/article-investing-strategy-during-a-recession/ C.D. Howe Institute Business Cycle Council — https://www.cdhowe.org/council/business-cycle-council Episode 171: Prof. Campbell R. Harvey — https://rationalreminder.ca/podcast/171 'Conditional Skewness in Asset Pricing Tests' — https://www.jstor.org/stable/222452 '… and the Cross-Section of Expected Returns' — https://faculty.fuqua.duke.edu/~charvey/Research/Published_Papers/P118_and_the_cross.PDF  Huston Loke — https://www.fsrao.ca/about-fsra/leadership/huston-loke Huston Loke on LinkedIn — https://www.linkedin.com/in/hloke/ Jordan Solway — https://www.fsrao.ca/about-fsra/leadership/jordan-solway Jordan Solway on LinkedIn — https://www.linkedin.com/in/jordan-solway-4a261314/ Financial Services Regulatory Authority of Ontario (FSRA) — https://www.fsrao.ca/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://twitter.com/MarkMcGrathCFP   Mark McGrath on Calendly — https://calendly.com/mark_mcgrath/ Episode 61: Ted Seides — https://rationalreminder.ca/podcast/61 Ted Seides on LinkedIn — https://www.linkedin.com/in/tedseides Ted Seides on Twitter — https://twitter.com/tseides Capital Allocators — https://www.capitalallocators.com/ Tim Hale on LinkedIn — https://www.linkedin.com/in/tim-hale-4b67ba24/ Life on Our Planet — https://www.imdb.com/title/tt23181388/ The Behavioral Divide Podcast — https://podcasts.apple.com/us/podcast/the-behavioral-divide-with-hal-hershfield/id1713168854 Episode 278: Juhani Linnainmaa — https://rationalreminder.ca/podcast/278   Books From Today's Episode:  Smarter Investing — https://www.amazon.com/Smarter-Investing-Simpler-Decisions-Results/dp/0273722077 Albion Strategic Consulting — https://albionstrategic.com/ Winning the Loser's Game – https://www.amazon.com/Winning-Losers-Game-Seventh-Strategies/dp/1259838048 Tightwads and Spendthrifts — https://www.amazon.com/Tightwads-Spendthrifts-Navigating-Minefield-Relationships/dp/1250280079 Clear Thinking — https://www.amazon.com/Clear-Thinking-Turning-Ordinary-Extraordinary/dp/0593086112 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 Same as Ever — https://www.amazon.com/Same-Ever-Guide-Never-Changes/dp/0593332709/

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 — info@rationalreminder.caBenjamin 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 — info@rationalreminder.caBenjamin 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

If you're in the world of finance, you'd know today's guest from YouTube — but you've probably never heard his real name. However, today and for the first time, he chooses to associate his actual identity with his YouTube channel! It's an honour to introduce to you, Mr. How Money Works himself, Darin Soat. On his YouTube channel, Darin combines captivating storytelling with high-quality, sensible information that helps you to make better financial decisions.  Today, he joins us to explain How Money Works, why he chose to create his channel anonymously, and how he feels after his grand reveal. He describes how his channel informed his career as an investment banker, and gives us his insider breakdown of how influencer businesses work. Then, we dive deep into YouTube as we explore the problems with today's financial influencers (finfluencers), how these problems are carried through to the crypto market, why it's rare to find high-quality financial information on YouTube, and everything you need to know about the gamification of investing, creating passive income, and the ins and outs of investing from the perspective of one of YouTube's top finfluencers, Darin Soat!    Key Points From This Episode: We're thrilled to reveal the real identity behind How Money Works – Darin Soat! (0:00:42) Darin's professional background. (0:01:41) A thorough description of How Money Works, straight from the source. (0:04:33) Exploring Darin's background in investment banking. (0:07:08) How he chooses content for his YouTube channel. (0:11:05) Why he created his channel anonymously, and how he feels after his reveal. (0:12:54) How his channel impacted his work while he was still in investment banking. (0:14:54) Darin's summation of how influencer businesses work. (0:17:00) The problems with today's financial influencers on YouTube. (0:21:17) How the aforementioned problems relate to the crypto market. (0:27:11) His criteria for selecting sponsors for How Money Works. (0:32:03) Why high-quality personal financial information is rarely seen on YouTube. (0:33:45) Darin's advice on side hustles and creating passive income. (0:36:25) How financial influencers and the gamification of investing affect real-world investors. (0:40:11) What everyone needs to know about investing, according to Darin. (0:50:38)   Links From Today's Episode: Darin Soat on X — https://twitter.com/DarinSoat  How Money Works — https://www.youtube.com/@HowMoneyWorks    How Money Works on X — https://twitter.com/howmoneyworksyt  Compounded Daily — https://www.compoundeddaily.com/   How History Works — https://www.youtube.com/channel/UCb9mpGh9PQjFXOG_irzrFoA   Google AdSense — https://adsense.google.com/start/  The Index Card — https://www.amazon.com/Index-Card-Personal-Finance-Complicated/dp/1591847680   Dumb Money — https://www.imdb.com/title/tt13957560/  MrBeast on YouTube — https://www.youtube.com/@MrBeast   Patrick Boyle on YouTube — https://www.youtube.com/@PBoyle  'Reasons to Avoid Index Funds' — https://www.youtube.com/watch?v=fvGLnthJDsg  Robinhood Crypto — https://robinhood.com/us/en/about/crypto/  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 — info@rationalreminder.ca 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 welcome back Hal Hershfield, Associate Professor of Marketing and Behavioral Decision Making at UCLA Anderson School of Management. Hal is renowned for his pioneering work in understanding how individuals make financial decisions, and he shares invaluable insights that can help us navigate the complexities of financial planning. In our conversation, live from Future Proof, we explore the intersection of behavioural economics, financial decision-making, and the potential for AI to enhance financial advisory services through the lens of Hal's latest research findings. We explore framing insurance decisions, the impact of generative AI on financial choices, and the often-overlooked realm of end-of-life decisions. Discover why the key to success lies in understanding different consumer segments, how advisors can optimize the frequency of client meetings, and how clients and advisors should be working together. We also unpack the importance of personalized decisions, the value of a decision-making journal, the framework for making the right financial choice, and much more. Tune in to gain valuable insights into behavioural economics, consumer preferences, and the evolving financial planning landscape with Hal Hershfield!   Key Points From This Episode:   (0:02:41) Hal shares his motivation for writing the paper and why the topic of financial decision-making is so vital to understand.  (0:04:28) An overview of our current understanding of financial decision-making and interesting findings from the latest work on the subject.  (0:09:00) How to leverage the current knowledge of financial decision-making to your benefit.  (0:10:27) Opportunities for the industry to improve, both in academia and industry.  (0:15:09) Characterizing the framework for conceptualizing financial decisions, from decision-making to the consequences.  (0:18:13) The biggest gaps and opportunities for future research and the value of writing and maintaining a decision journal.  (0:22:33) The potential of AI to influence financial decision-making, and an example of an exciting use-case.  (0:26:31) Exploring the role of human financial advisors in an AI-dominated world.  (0:29:56) Insights into the steps for a client and advisory firm to work together effectively.  (0:34:07) What area of research in behavioural finance excites Hal the most.  (0:36:23) Bridging the gap between industry and academia.      Links From Today's Episode:   Future Proof Festival 2023 — https://futureproof.advisorcircle.com/ Advisor Circle — https://www.advisorcircle.com/ Hal Hershfield — https://www.halhershfield.com/ Hal Hershfield on X — https://twitter.com/HalHershfield Hal Hershfield on LinkedIn — https://www.linkedin.com/in/hal-hershfield-a2b91510/ Episode 141: Hal Hershfield — https://rationalreminder.ca/podcast/141 Episode 256: Hal Hershfield — https://rationalreminder.ca/podcast/256 Your Future Self — https://www.amazon.com/Your-Future-Self-Tomorrow-Better-ebook/dp/B0BH4LL53X 'Consumer Financial Decision Making: Where We've Been and Where We're Going' — https://www.journals.uchicago.edu/doi/full/10.1086/727194 Poruz Khambatta on LinkedIn — https://www.linkedin.com/in/poruz/ Writing for Busy Readers — https://www.amazon.com/Writing-Busy-Readers-Communicate-Effectively/dp/0593187482 'Behavioural science is unlikely to change the world without a heterogeneity revolution' — https://www.nature.com/articles/s41562-021-01143-3 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 — info@rationalreminder.caBenjamin 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 are trying something different. Recorded live at the CFA Society's Toronto Annual Wealth Conference, we take an exclusive look at the origins and evolution of the Rational Reminder Podcast through an interview with Ben and Cameron. From motivations for starting the podcast to favourite episodes and guests, we delve into the behind-the-scenes of the show. Discover how the podcast has grown, the impact it's had on listeners, and the exciting global reach it's achieved. Get an exclusive look at the challenges, regrets, and valuable lessons learned along the way. Then, we are joined by Mark McGrath to explore common pitfalls of ITF accounts, providing listeners with valuable information to help them make the right decisions for their investments. Finally, we welcome special guest Brittany Hodak, author of Creating Superfans, which unpacks the concept of turning customers into passionate fans of your brand. Brittany shares her insights on the power of storytelling in business and how to create Superfans who will champion your brand. We explore the concept of the experience economy, the right approach to investing in marketing for your business, and much more! Join us for this extraordinary episode that blends wealth management insights, podcasting wisdom, and the secrets to cultivating Superfans. Whether you're a long-time Rational Reminder listener or a business owner seeking to supercharge customer loyalty, this episode has something for everyone. Tune in now!   Key Points From This Episode:   (0:04:32) Introduction to Ben and Cameron's interview at the 2023 Annual Wealth Conference.  (0:07:15) Learn about the average listener base for the show, the active Rational Reminder community, and how the podcast has grown over time.  (0:10:08) The global reach of the podcast, how it has benefitted business, and a look back at the first episode of Rational Reminder.  (0:13:19) What Ben and Cameron originally envisioned, how they met, and what motivated them to start a podcast.  (0:15:17) Insights into the cost of the show, the shift from audio only, and the appetite for long-form content.  (0:18:18) Their favourite episodes and guests, keeping content balanced, and how the reading challenge was started.  (0:25:25) Attracting big industry names to the podcast, their dream guests, and the episodes that did not go to plan.  (0:31:28) Advice for aspiring podcasters, the amount of work the show takes, and their biggest lessons so far.  (0:37:02) Ben and Cameron share their reading habits and the books they think everyone should read and why.  (0:40:14) Why they work so well together, plans for the future, and what they wish they knew before starting the podcast.  (0:43:14) Ben and Cameron each share their definition of success, and final words of advice for listeners.  (0:45:46) Mark to Market: exploring the ins and outs of ITF accounts to avoid common mistakes. (0:55:04) Introducing today's guest, Brittany Hodak, and her fascinating book, Superfans.  (0:56:51) Brittany explains some basic definitions and the power of storytelling for your business.  (0:59:50) Why storytelling has become a potent marketing technique, and why Superfans are important to building a successful business.  (1:02:53) Unpacking the Superfan personality, how they can be created, and identifying your customer's story.  (1:08:47) Defining the experience economy and its impact on customer expectations.  (1:12:38) Recommendations for how businesses should approach investing in marketing.  (1:14:11) The after-show: trip highlights, listener reviews, and more!    Books From Today's Episode: The Fiscal Theory of the Price Level — https://www.amazon.com/Fiscal-Theory-Price-Level/dp/0691242240 How to Change — https://www.amazon.com/How-Change-Science-Getting-Where/dp/059308375X Get It Done — https://www.amazon.com/Get-Done-Surprising-Lessons-Motivation/dp/0316538361/ Your Future Self — https://www.amazon.com/Your-Future-Self-Tomorrow-Better/dp/B0BJ554T6M/ Like the Best Podcast — https://open.spotify.com/show/22fi0RqfoBACCuQDv97wFO Deep Work — https://www.amazon.com/Deep-Work-Focused-Success-Distracted/dp/1455586692 Storyworthy — https://www.amazon.com/Storyworthy-Engage-Persuade-through-Storytelling/dp/1608685489 Financial Market History — https://www.amazon.com/Financial-Market-History-Reflections-Investors-ebook/dp/B06WVBHK72/ The Great Depression: A Diary — https://www.amazon.com/The-Great-Depression-audiobook/dp/B0030HF9F6/ Using Behavioral Science in Marketing — https://www.amazon.com/Using-Behavioral-Science-Marketing-Instinctive/dp/1398606685/ Clear Thinking — https://www.amazon.com/Clear-Thinking/dp/0593716213   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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on X — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on X — https://twitter.com/benjaminwfelix Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on X - https://twitter.com/MarkMcGrathCFP Mark McGrath on LinkedIn - https://www.linkedin.com/in/markmcgrathcfp/ Brittany Hodak — https://brittanyhodak.com/ Brittany Hodak on X — https://twitter.com/BrittanyHodak Brittany Hodak on Instagram — https://www.instagram.com/brittanyhodak/ Brittany Hodak on Facebook — https://www.facebook.com/BrittanyHodak Brittany Hodak on LinkedIn — https://www.linkedin.com/in/brittanyhodak/ Creating Superfans — https://www.amazon.com/Creating-Superfans-Five-Step-Multiplying-Reputation/dp/1774580780 Annual Wealth Conference 2023 — https://web.cvent.com/event/874a7379-a0cb-4b91-ad18-c46daf17b685/summary Rational Reminder Episode 1: The Cheapest Advice Probably isn't the Best — https://rationalreminder.ca/podcast/1 Rational Reminder Episode 100: Prof. Kenneth French — https://rationalreminder.ca/podcast/100 Rational Reminder Episode 169: Prof. John Cochrane — https://rationalreminder.ca/podcast/169 Rational Reminder Episode 171: Prof. Campbell R. Harvey — https://rationalreminder.ca/podcast/171 Rational Reminder Episode 200: Prof. Eugene Fama — https://rationalreminder.ca/podcast/200 Rational Reminder Episode 224: Prof. Scott Cederburg — https://rationalreminder.ca/podcast/224 Rational Reminder Episode 226: Colonel Chris Hadfield — https://rationalreminder.ca/podcast/226 Rational Reminder Episode 268: Itzhak Ben-David — https://rationalreminder.ca/podcast/268 Rational Reminder Episode 271: Expected Returns of the AI Revolution (plus People are Lying to You About Money w/ Anthony Walsh) — https://rationalreminder.ca/podcast/271

Today's episode is an exhilarating journey into the captivating realms of finance and human behaviour with Professor Samuel Hartzmark, who takes centre stage to explore the complex intersection of asset pricing and behavioural finance. Professor Hartzmark's career and academic journey are nothing short of inspiring. With a double major in mathematics and economics, a prestigious MBA from the University of Chicago Booth School of Business, and a Ph.D. from the University of Southern California's Marshall School of Business, he has paved a remarkable path through the world of academia. Our conversation takes a deep dive into his groundbreaking research, where he dissects complex financial topics with astonishing clarity. We delve into some of his most-cited papers, including those on dividends and sustainable investing, which consistently reveal counterintuitive conclusions that challenge conventional wisdom. We unpack price-only index returns, dividend juicing, price-only data, the value of sustainability rankings, and the power of capital to make the world a better place. And don't miss our exploration of multi-factor asset pricing, where Samuel's unique perspective sheds new light on these models in the context of human behaviour. This episode promises an enlightening and engaging conversation that investors and finance enthusiasts alike won't want to miss!   Key Points From This Episode:   (0:03:48) Morningstar's sustainability rating system and its impact on the flow of mutual funds.  (0:07:35) Choosing sustainability ratings over other metrics and how they motivate investors.  (0:16:24) What drives the behaviour of mutual fund investors toward green firms.  (0:18:17) Unpacking the concept of sustainable investing and how impact elasticity is relevant.  (0:23:15) Insights into the impact elasticity differences between brown and green firms.  (0:26:40) The divestment of brown firms and ESG integration.  (0:28:58) Unlocking the power of investor capital to shift toward a green economy.  (0:32:57) Price returns versus dividend returns from a behavioural finance perspective. (0:39:05) Whether dividends are a safe hedge in a volatile market.  (0:44:26) Reasons behind the demand  for dividends and how it impacts expected returns.  (0:47:55) Ways mutual funds exploit the preferences of dividend investors.  (0:50:52) Dividend juicing and the overall cost to investors.  (0:53:21) Advice and recommendations for dividend-loving investors.  (0:54:53) Diving into data preferences: unveiling the prevalence of price-only index usage.  (0:58:09) How price-only data reliance affects media coverage of the market and fund flows.  (1:02:17) Investor expectations regarding price-only index funds and how to avoid the pitfalls.  (1:05:23) Varied asset returns and understanding people's asset allocation motivations.  (1:10:54) What survey results tell us about asset pricing.  (1:13:12) Examining implications of portfolio tilting towards priced risk.  (1:18:56) Professor Hartzmark's version of success and happiness.    Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-273-professor-samuel-hartzmark-asset-pricing-behavioural-finance-and-sustainability-rankings-discussion-thread/25457   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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on X — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on X — https://twitter.com/benjaminwfelix Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on X - https://twitter.com/MarkMcGrathCFP Mark McGrath on LinkedIn - https://www.linkedin.com/in/markmcgrathcfp/ Professor Samuel Hartzmark — https://www.samhartzmark.com/ Professor Samuel Hartzmark Email — samuel.hartzmark@bc.edu Professor Samuel Hartzmark on X — https://twitter.com/SamHartzmark Professor Samuel Hartzmark on LinkedIn — https://www.linkedin.com/in/sam-hartzmark-b21bb127/ Professor Samuel Hartzmark on Google Scholar — https://scholar.google.com/citations Boston College — https://www.bc.edu/ Morningstar — https://www.morningstar.com/ Sustainalytics — https://www.sustainalytics.com/ Episode 192: Professor Alex Edmans — https://rationalreminder.ca/podcast/192 'Counterproductive Sustainable Investing: The Impact Elasticity of Brown and Green Firms' — https://dx.doi.org/10.2139/ssrn.4359282 'Do Investors Value Sustainability? A Natural Experiment Examining Ranking and Fund Flows' — https://dx.doi.org/10.2139/ssrn.3016092 Travelers Insurance — https://www.travelers.com/ 'Reconsidering Returns' — https://dx.doi.org/10.2139/ssrn.3039507 'A New Test Of Risk Factor Relevance' — https://dx.doi.org/10.2139/ssrn.3487624

In this episode, we welcome back one of Canada's most trusted and widely read financial experts to discuss the state of Canadian personal finance. Rob Carrick is a columnist for The Globe and Mail, where he has brought his boots-on-the-ground perspective to readers for more than 20 years. He also co-hosts the Stress Test Podcast, where regular Canadians offer real-life perspectives on the biggest stress tests that their personal finances face in the wake of COVID-19. Tuning in, you'll find out which issues are at the forefront of Rob's readers' lives. Next, he shares his perspective on GICs and ETFs and draws a comparison between affordable housing today and the mutual fund market of 20 to 30 years ago. We talk about the lack of comprehensive advice that Canadians are receiving from their planners, the state of affordable housing in the country, and why so many Canadians say they are giving up on home ownership altogether. We also compare housing returns to the stock market and discuss successfully using a reverse mortgage, the non-financial challenges faced by retirees, and more. For a comprehensive overview of the state of personal finance in Canada (and some practical advice for protecting yourself and prospering in a challenging economy), don't miss today's episode!   Key Points From This Episode:   (0:00:19) Introducing today's returning guest, Rob Carrick.  (0:02:38) Issues at the forefront of Rob's readers' lives today.  (0:04:02) His perspective on GICs, ETFs, and simplification.  (0:09:33) Comparing today's EFT Market with the mutual fund market of 20 to 30 years ago.  (0:15:24) The lack of comprehensive advice Canadians are receiving from their planners. (0:20:03) Rob's perspective on affordable housing, as outlined in his Globe and Mail article.  (0:24:52) Why a growing number of adults continue to live with their parents into adulthood.  (0:28:48) Reasons that many Canadians say they are "giving up on home ownership."  (0:31:44) Housing returns in comparison to the stock market.  (0:35:13) Successfully using a reverse mortgage.  (0:37:28) Some of the non-financial challenges faced by retirees.  (0:41:06) The number of parents supporting their adult children today.  (0:45:03) How adult children are pitching in to support their parents.  0:49:06) Rob's advice for educating the next generation on financial planning.   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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on X — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on X — https://twitter.com/benjaminwfelix Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on X - https://twitter.com/MarkMcGrathCFP Mark McGrath on LinkedIn - https://www.linkedin.com/in/markmcgrathcfp/ Rob Carrick — http://robcarrick.ca/ Rob Carrick on X — https://twitter.com/rcarrick  Rob Carrick Email — carrick@globeandmail.com Stress Test Podcast — https://www.theglobeandmail.com/stress-test/ Carrick on Money — https://www.theglobeandmail.com/carrick-on-money/ The Globe and Mail — https://www.theglobeandmail.com/ 'Young adults are giving up on home ownership, and a lot of them are furious about it' — https://www.theglobeandmail.com/investing/personal-finance/article-young-adults-are-giving-up-on-home-ownership-and-a-lot-of-them-are/ How Not to Move Back in With Your Parents – https://www.amazon.com/How-Move-Back-Your-Parents/dp/038567192X Wealthsimple — https://www.wealthsimple.com/ Episode 39 — https://rationalreminder.ca/podcast/39 Episode 172 — https://rationalreminder.ca/podcast/172

AI is not new and financial mis-education is rife. These are two ideas that form the foundation of this episode, which features insights from Ben Felix, Mark McGrath, and guest speaker Anthony Walsh. To start our conversation, we explore the history of artificial intelligence and what it might mean for the future and beyond. During this Mark to Market segment, Mark McGrath shares his experience of owning property and becoming a landlord before we look back on Episode 155 with Don Ezra, where he revealed his thoughts on planning for life after work. Anthony Walsh, author of People Are Lying To You About Money joins us to discuss his efforts to remedy the lack of financial literacy among everyday people, how he approaches financial planning as a risk-averse person, and his move from lean FI to Coast Fi. He also shares his thoughts on the relative value of money, the importance of planning according to financial wellness and health, and more. Join us today to hear all this and so much more!    Key Points From This Episode:   (0:04:07) The cycles of AI development, excitement, and disappointment in technological history. (0:15:01) How technology bubbles impact investors and why investing in revolutionary technology is a questionable strategy.  (0:18:50) The paradox of skill and how it applies to investment strategy.  (0:23:40) Mark to Market Segment with Mark McGrath on real estate and rentals.  (0:34:50) Looking back on Episode 155 with Don Ezra on planning for life after work.  (0:37:03) Introducing today's guest: Anthony Walsh, who wrote People Are Lying To You About Money.  (0:40:17) Four types of lies people tell about money and why most people are financially illiterate.  (0:48:46) How Anthony navigates financial planning as a risk-averse person.  (0:53:25) What motivated his move from Lean FI to Coast FI and the relative value of money.  (0:55:10) The importance of planning according to financial wellness and health.  (0:57:19) The after-show; shows and series your hosts have been watching and a book recommendation.    Books From Today's Episode: Irrational Exuberance — https://www.amazon.com/Irrational-Exuberance-3rd-Robert-Shiller-dp-0691166269/dp/0691166269/ People Are Lying To You About Money — https://www.amazon.com/People-Are-Lying-About-Money-ebook/dp/B0BC9M5QQT Bubbles and Crashes — https://www.amazon.com/Bubbles-Crashes-Boom-Technological-Innovation/dp/0804793832 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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on X — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on X — https://twitter.com/benjaminwfelix Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on X - https://twitter.com/MarkMcGrathCFP Mark McGrath on LinkedIn - https://www.linkedin.com/in/markmcgrathcfp/ Anthony Walsh on LinkedIn — https://www.linkedin.com/in/asw383/ Episode 155 — https://rationalreminder.ca/podcast/155 Episode 268 — https://rationalreminder.ca/podcast/268 Episode 244 — https://rationalreminder.ca/podcast/244 Reasons to Avoid Index Funds — https://www.youtube.com/watch?v=fvGLnthJDsg

If the wealthiest families of the past century spent a reasonable amount of their wealth, invested in the stock market, and paid taxes, there would be thousands of billionaires today. But there aren't. So, what happened? To answer this question, we are joined by authors and finance professionals, Victor Haghani and James White. Their recently released book, The Missing Billionaires: A Guide to Better Financial Decisions, uses the missing billionaires puzzle to explore how and why most investors fail to capture the returns offered by the market. Victor was a founding partner of Long-Term Capital Management (LTCM), the multi-billion-dollar hedge fund that famously collapsed in 1998 and nearly took the global financial markets down with it. His participation in the downfall of LTCM led him to reassess much of the way he thought about investing, and in this episode, he shares some simple but powerful frameworks and personal finance recommendations. We also receive accessible explanations of the Merton model and expected utility theory from James, take a deep dive into dynamic asset allocation, discuss optimal solutions for lifetime spending, and learn more about the certainty equivalent return and Sharpe ratios, plus so much more. Whether you're an entrepreneur invested in your own business or simply focused on building long-term wealth, Victor and James' book (and this conversation about it) will be a valuable resource for better financial decision-making, so be sure to tune in today!   Key Points From This Episode:   (0:05:19) The puzzle of the missing billionaires (and why it matters to Victor and James).  (0:09:45) Some common but critical financial decision-making problems most people face.  (0:12:39) Unpacking the coin-flipping experiment in their 'What's Past is Not Prologue' paper.  (0:19:57) What investors should aim to maximize when sizing positions in risky assets.  (0:24:22) An example that illustrates how the Merton model relates to bullish bets.  (0:29:04) What the Merton share tells us about dynamic asset allocation if it is or isn't possible to estimate expected equity returns.  (0:35:29) How real expected returns affect optimal risky shares for long-term investors.  (0:37:29) Different ways to forecast volatility to determine the optimal risky share.  (0:42:00) Easy-to-understand definitions of the utility curve and expected utility theory.  (0:50:20) Using the certainty equivalent return and Sharpe ratio to evaluate investments.  (0:57:56) Whether or not options belong in the portfolios of typical retail investors.   (0:59:01) If expected utility is a good model for normative personal finance recommendations. (1:05:16) How Victor's experience with LTCM affected him, both professionally and personally.  (1:09:08) What optimal solutions for lifetime investing and spending look like.   (1:22:22) Questions to ask yourself to work out your own utility function and risk aversion. (1:28:19) Victor and James' parting financial advice and respective definitions of success.  Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-270-what-happened-to-all-the-billionaires-with-victor-haghani-and-james-white/25122 Books From Today's Episode: The Missing Billionaires – https://www.amazon.com/Missing-Billionaires/dp/1119747910 Stumbling on Happiness — https://www.amazon.com/Stumbling-Happiness-Daniel-Gilbert/dp/1400077427 The Man Who Solved the Market – https://www.amazon.com/Man-Who-Solved-Market-Revolution/dp/B07P1NNTSD 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/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on X — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on X — https://twitter.com/benjaminwfelix Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Victor Haghani on LinkedIn — https://www.linkedin.com/in/victorhaghani/ James White on LinkedIn — https://www.linkedin.com/in/james-white-b4310a47/ Elm Wealth — https://elmwealth.com/ When Genius Failed — https://www.amazon.com/When-Genius-Failed/dp/0375758259/ Where are all the Billionaires?: Victor Haghani at TEDxSPS – https://youtu.be/1yJWABvUXiU 'What's Past is Not Prologue' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3034686 'Lifetime Portfolio Selection under Uncertainty: The Continuous-Time Case' – https://www.jstor.org/stable/1926560 'Stock Prices, Earnings, and Expected Dividends' – https://www.jstor.org/stable/2328190 'No Place to Hide: Investing in a World With No Risk-Free Asset' – https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3903372 'Sharpening Sharpe Ratios' – https://papers.ssrn.com/sol3/papers.cfm?abstract_id=325942 'A Sharper Lens for Sizing Up Nickels and Steamrollers' – https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2874602 'Do Options Belong in the Portfolios of Individual Investors?' – https://elmwealth.com/do-options-belong-in-portfolios/

This week we welcome back return guest Preet Banerjee, a renowned speaker, personal finance expert, consultant, and author of Stop Overthinking Your Money. Listeners may remember Preet from his previous appearance on the show back in 2019 when he was first embarking on his doctoral journey. Several years and one pandemic later, Preet has finally made it through the monumental task of completing his dissertation! We spend today's conversation with Preet getting into the fascinating details of his research which interrogates the value of financial advice within households and explores the pressing question of whether it's worth getting it. Preet provides a comprehensive overview of the current state of financial planning and shares his most intriguing findings before unpacking the policy and regulatory recommendations that emerge from his research. The latter part of the show includes our Mark to Market segment with Mark McGrath, where this week, he delivers key insights on retirement savings plans (RSPs) and why he believes RSPs are actually tax-free. You'll also hear our reflection on our past conversation with Colonel Chris Hadfield, paired with a book review of Kevin Kelly's Excellent Advice for Living: Wisdom I Wish I'd Known Earlier. Join us for an expansive episode on the value of financial advice along with timely insights on what truly matters in life! Key Points From This Episode:   (0:03:34) Background on today's guest, Preet Banerjee, and the focus of his research: the value of financial advice to households and whether it's worth getting it.  (0:06:29) Key problems with past research attempting to demonstrate the value of financial advice (including the portfolio-centric advice model).  (0:10:47) A review of the existing literature on the value of financial advice; the gap in the literature that his research is addressing.   (0:16:27) How Preet measured holistic wealth scores and comprehensive financial confidence in his research and the dataset he based his research on. (0:21:26) What Preet took into account to determine who were DIY investors within his sample and which advice channels they use.  (0:28:27) The study of financial planning, shortcomings within the field, and some of the positive developments in recent years.  (0:30:00) Informative takeaways regarding advice channels, investable assets, and having a financial plan.  (0:36:30) How Preet approached his data, the progressive regression model he developed, and what it demonstrates about key topics in his research.  (0:47:36) How wealth allows you to access better financial advice versus the options available to you if you're in the mass market.  (0:49:48) Learn about the policy and regulatory recommendations that emerge from Preet's research.  (0:56:04) Preet's advice to listeners and DIY investors and what's next for his research.  (01:05:17) Our Mark to Market segment with Mark McGrath and his insights of everything you need to know about retirement savings plans (RSPs). (01:18:02) A recap and review of Episode 266 where we talk with Colonel Chris Hadfield and why it's worth the listen.  (01:20:39) Hear our review of the book, Excellent Advice for Living: Wisdom I Wish I'd Known Earlier by Kevin Kelly.  (01:25:34) Our after-show section; Find out what we have coming up and how to attend our upcoming meet and greet.    Join our live event "Finding and Funding a Good Life": https://us06web.zoom.us/webinar/register/8516942588679/WN_gv6EVyCCRpaXCrnWAZUrLA   Links From Today's Episode: Preet Banerjee — https://www.preetbanerjee.com/ Preet Banerjee on LinkedIn — https://www.linkedin.com/in/preetbanerjee/ Preet Banerjee on X — https://twitter.com/preetbanerjee Preet Banerjee on YouTube — https://www.youtube.com/c/preetbanerjee Preet Banerjee at The Globe and Mail — https://www.theglobeandmail.com/authors/preet-banerjee/ Episode 53: Preet Banerjee — https://rationalreminder.ca/podcast/53 Episode 226: Colonel Chris Hadfield — https://rationalreminder.ca/podcast/226 Excellent Advice for Living: Wisdom I Wish I'd Known Earlier — https://www.amazon.com/Excellent-Advice-Living-Wisdom-Earlier/dp/0593654528 Episode 232: Dr. Annamaria Lusardi — https://rationalreminder.ca/podcast/232 Episode 188: Prof. Ayelet Fishbach — https://rationalreminder.ca/podcast/188 Episode 224: Prof. Scott Cederburg — https://rationalreminder.ca/podcast/224 Rational Reminder Continuing Education — learn.rationalreminder.ca Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder on Spotify — https://open.spotify.com/show/6RHWTH9iW7hdnA7eAg7ukO 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 — info@rationalreminder.caBenjamin 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/

For nearly 25 years, Exchange Traded Funds (ETFs) have been a popular passive investment vehicle for both household and professional investors due to their low transaction costs and high liquidity. But what are the pros and cons? How can you diversify your portfolio to avoid volatility? Today, we are joined by Professor Itzhak Ben-David, one of the world's foremost academic experts on ETFs, the Neil Klatskin Chair in Finance and Real Estate at The Ohio State University (OSU) Fisher College of Business, and the Academic Director of the OSU Center for Real Estate. In this episode, we look at the current ETF market and the impact that ETFs have on underlying securities and investor outcomes. We discuss Morningstar ratings, the change that happened in 2002, and some mind-blowing data regarding hedge fund fees. We also dive into the correlation between miscalibrated CFOs and overconfidence; the unnecessary mental accounting people do when it comes to tax refunds, and so much more. This conversation makes for an incredibly diversified overview of a variety of topics that are relevant to financial decision-making at the household level. Finance experts will certainly find value here, too! Regardless of your level of experience, tune in today to learn more.   Key Points From This Episode:   (0:03:27) Professor Ben-David's take on the current state of the ETF market.  (0:07:37) Ways that investors are affected by a broader variety of ETF options.  (0:16:46) Advice for investors who have been lured in by a sector or thematic ETF.  (0:17:53) Mutual or hedge funds versus ETFs and their impact on underlying securities.  (0:26:38) Reflections on the behaviour of mutual fund investors (learning versus luck).  (0:33:01) How we can learn what investors care about from mutual fund flows.  (0:37:15) Why investors typically put their money where the Morningstar ratings are.  (0:38:46) Morningstar's rewiring of the "star" system in 2002 and its repercussions.  (0:48:54) The effect of Morningstar ratings on mutual fund flow and momentum.  (0:52:40) Hedge fund investor behaviour versus mutual fund and ETF investors.  (0:54:46) The "two-and-20" hedge fund fee that sets it apart from mutual funds.  (1:00:53) What happens after investors pull their money from a hedge fund after a loss.   (1:02:19) How hedge fund incentive fees correlate with hedge fund performance. (1:04:09) Key lessons for investors who might be considering allocating to hedge funds.  (1:07:15) How people treat tax refunds differently from other income and expenses  (1:13:20) Defining miscalibration and the behavioural bias that overconfidence presents.  (1:19:26) How CFO miscalibration responds to rising market uncertainty (and how to avoid it).  (1:22:58) Professor Ben-David's definition of success in relation to failure.    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/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on X — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on X — https://twitter.com/benjaminwfelix Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Itzhak Ben-David — https://u.osu.edu/ben-david.1/ Itzhak Ben-David on LinkedIn — https://www.linkedin.com/in/ibendavi/  Financial Markets and Human Behavior - https://bpb-us-w2.wpmucdn.com/u.osu.edu/dist/d/7877/files/2023/08/202308_Rational_Reminder_podcast.pdf 'Do ETFs Increase Volatility?' – http://ssrn.com/abstract=1967599 'Mutual Fund Flows and Performance in Rational Markets' – https://ssrn.com/abstract=383061 'The Performance of Hedge Fund Performance Fees' – https://ssrn.com/abstract=3630723 'Paper on how people treat their tax refunds' — https://doi.org/10.1111/j.1540-6261.2007.01232.x 'Managerial Miscalibration' — http://ssrn.com/abstract=1640552 'The Persistence of Miscalibration' — https://ssrn.com/abstract=3462107

Today's show is centred on the expected cost of pessimism and how investor expectations of loss negatively affect financial decisions. After concisely exploring the data and literature on the subject, we get into a few solutions to this dynamic and talk about how to find a way around natural human tendencies and myopic loss aversion. We then get into our first Mark's Minutes segment, with our colleague Mark McGrath briefly explaining some interesting ideas about risk and tax-free savings accounts. For today's episode retrospective, we go over Episode 45 and the conversation we had with Moira Somers about effective communication and advice methods. Matthew Dicks, the author of Storyworthy then joins us to offer some insight into the utility of stories in the different areas of life, including financial advice, and more relaxed social settings. Matthew does a great job of describing and demonstrating how stories connect people, and allow ideas to flow in a natural and impactful way, so make sure to tune in.   Key Points From This Episode:   Introducing the inverse relationship between subjective return expectations and expected returns. (0:02:55).   Potential solutions to this issue; checking investments less frequently, ignoring financial media, healthy advisor relationships, and more.  (0:15:39) Mark's Minutes: Mark McGrath shares some background on the TFSA and its positive and negative sides. (0:22:59) A quick recap of our episode with Moira Somers and its lessons on effective financial advice. (0:30:36) An introduction to Matthew Dicks and some thoughts on storytelling. (0:32:05) Matthew talks about the power of storytelling to shape the world. (0:36:35) Strategies for finding, crafting, and telling great stories. (0:41:45) Matthew weighs in using storytelling in the world of investing and financial advice. (0:48:23) Finding the value in your own personal data and experience. (0:52:04) Today's after-show: upcoming events and news from home. (0:54:40)   Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-237-the-expected-cost-of-pessimism-plus-matthew-dicks-on-the-value-of-storytelling-discussion-thread/24887 Join Our Live Event: What Are my Options with my Options? - https://us06web.zoom.us/webinar/register/3916910040743/WN_PsbTZ8CqR_SvFNdpy5oIKA   Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. 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 — info@rationalreminder.caBenjamin 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/ Matthew Dicks — https://matthewdicks.com/ Storyworthy — https://matthewdicks.com/storyworthy/ Storyworthy: Engage, Teach, Persuade, and Change Your Life Through the Power of Storytelling — https://www.amazon.com/Storyworthy-Engage-Persuade-through-Storytelling/dp/1608685489 Homework for Life TED — https://matthewdicks.com/homework-for-life/  Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp?originalSubdomain=ca

We make countless decisions throughout our lives that range from the mundane to the monumental. But how do you decide how you decide? That is the fundamental question in our esteemed guest, Cass R. Sunstein's new book Decisions about Decisions: Practical Reason in Ordinary Life. Cass currently serves as the Robert Walmsley University Professor at Harvard University and is the founder and director of the Program on Behavioral Economics and Public Policy at Harvard Law School. He is also a prolific author, with one of his most notable works being the hugely popular and impactful book, Nudge: Improving Decisions about Health, Wealth, and Happiness, which he co-wrote with Richard Thaler in 2008. In today's conversation, we sit down with Cass to discuss the difficulties inherent to understanding why people make the decisions they make and what the latest research teaches us about how we should approach decision-making to maximize our well-being. Cass provides insight into second-order thinking strategies, the difference between picking and choosing, and why delegating a particular decision is sometimes the right call. We also unpack what to consider when making major life choices, the strengths and weaknesses of algorithms when it comes to decision-making, and much more. To hear Cass's many insights on the topic of behaviour, knowledge, and decision-making, be sure to tune in! Key Points From This Episode:   The challenges of understanding why people make the decisions that they make. (0:03:38) Second-order decisions and why they are sometimes preferable to on-the-spot decisions. (0:04:50) An overview of various second-order decision strategies.  (0:06:45) Guidelines to help you choose which decisions to delegate and how to determine whether you have a trustworthy delegate. (0:11:28) What to consider when making a transformative and irrevocable life decision. (0:16:07) Why people avoid seeking out information that might make them feel bad, even if it could help them make better decisions. (0:21:29) How people decide what information to believe and when to update their beliefs. (0:28:01) Asymmetries in how we update our beliefs and factors that can deter people from updating their beliefs when faced with new evidence. (0:32:28) How joint evaluation and separate evaluation influences your decision making and which one you should use depending on the context. (0:43:12) Insights on well-being and what to value when you're making everyday decisions. (0:48:14) The strengths and weaknesses of algorithms when it comes to making decisions and what we gain when we make decisions ourselves. (0:52:38) Examples of when using algorithms can be harmful or dangerous. (0:59:25) How our decisions can be manipulated and the importance of doing due diligence. (01:01:30) Cass's well-known work on nudges and how nudges differ from manipulation. (01:02:59) Happiness, meaning, variety, and how Cass defines success in life. (1:05:50)   Links From Today's Episode:   Cass R. Sunstein — https://hls.harvard.edu/faculty/cass-r-sunstein/ Cass R. Sunstein on LinkedIn — https://www.linkedin.com/in/csunstein/ Cass R. Sunstein on on X — https://twitter.com/CassSunstein/ The Behavioural Insights Team — https://www.bi.team/ Decisions About Decisions: Practical Reason in Ordinary Life — https://www.amazon.com/Decisions-about-Practical-Reason-Ordinary/dp/1009400460 Nudge: Improving Decisions about Health, Wealth, and Happiness — https://www.amazon.com/Nudge-Improving-Decisions-Health-Happiness/dp/014311526X 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 — info@rationalreminder.ca 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 tackle the timely topic of higher interest rates and their potential impact on investors' decisions. With rates soaring to unprecedented levels, many are tempted to veer off their investment paths in pursuit of short-term gains. But is this a rational choice? We break it down and offer invaluable insights into why staying the course might be the wiser option. We also welcome new PWL team member Mark McGrath. Mark possesses an innate talent for crafting concise, valuable, and captivating financial planning nuggets on social media. His content has struck a chord with the audience, evident from his rapidly expanding following. Next, we take a nostalgic trip back to one of our favourite past episodes, featuring a remarkable guest, David Booth, co-founder of Dimensional Fund Advisors. With a quick review of the episode, listeners get a refresher on Booth's sage advice and investment philosophies, reminding us all why this episode remains a standout. For the book segment, Michael Tremblay, a passionate listener, and stoicism expert, reached out to suggest an exploration of The Handbook of Epictetus. We welcome Michael to the show for an enlightening discussion on the principles of stoicism and how they can be applied to investing and everyday life.   Key Points From This Episode:   Introducing new PWL team member, Mark McGrath. (0:02:22) Background about Mark and his journey to PWL Capital. (0:03:35) What Mark appreciates most about working at PWL: its core values. (0:08:45) Why cash is an extremely risky long-term investment option. (0:11:47) We explore 'buying the dip' and expected returns versus return expectations. (0:24:31) Highlights and key takeaways from our conversation with David Booth. (0:29:07) The Handbook of Epictetus and devoted listener Michael Tremblay's background. (0:31:22) Stoicism basics, who Epictetus was, and the key idea behind the philosophy. (0:33:30) How stoicism can benefit everyday investors. (0:36:09) A breakdown of the various 'tools'  and practices The Stoics developed. (0:39:26) Similarities Stoicism has with the rational reminder approach to investing. (0:43:07) Making the distinction between what is in your control and what is not. (0:46:16) The role of emotions and death in investing from a Stoicism perspective. (0:47:41) Michael shares his definition of success. (0:53:45) The after-show featuring updates, book recommendations, upcoming guests, and more. (0:55:11)   Quotes:   "PWL as a firm and the podcast specifically have been absolutely formative in how I deliver financial planning and portfolio management advice." — Mark McGrath (0:06:58)   "Now risky assets, like stocks and bonds, sound risky. We call them risky assets for a reason. But the thing is, in investing, risk is not always a bad thing." — Benjamin Felix (0:15:09)   "Expected returns matter a lot for long-term investors because they're relying on their assets to generate returns far into the future." — Benjamin Felix (0:19:39)   "There's this emotional aspect of stoicism, this kind of cool-headedness. And that cool-headedness comes from adopting this growth mindset and adopting this focus on what's in your control." — Michael Tremblay (0:36:38)   "The right approach to investing is one that is borne out by the facts. It's not driven by a bone to pick." — Michael Tremblay (0:43:54)   "For Stoicism, what is up to us is exclusively our minds. Exclusively, the choices and decisions that we make." — Michael Tremblay (0:46:18) Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-265-5-hisa-for-the-long-run-plus-stoicism-with-michael-tremblay-discussion-thread/24716   Book From Today's Episode: The Handbook of Epictetus — https://amzn.to/3s2k7V4   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/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on X — https://twitter.com/benjaminwfelix Cameron on X — https://twitter.com/CameronPassmore Michael Tremblay on X — https://twitter.com/_MikeTremblay Mark McGrath on X — https://twitter.com/MarkMcGrathCFP Michael Tremblay — https://www.tremblaymichael.com/ Stoa Meditation Website — https://stoameditation.com Stoa Letter — https://www.stoaletter.com 'Reaching for yield: Evidence from households' — https://doi.org/10.2139/ssrn.4283008 'Crash beliefs from investor surveys' — https://doi.org/10.3386/w22143 'Who should buy long-term bonds?' — https://doi.org/10.1257/aer.91.1.99 'Portfolios for long-term investors' — https://doi.org/10.1093/rof/rfab038 'Presidential address: Discount rates' — https://doi.org/10.1111/j.1540-6261.2011.01671.x 'Long-horizon losses in stocks, bonds, and bills: Evidence from a broad sample of developed markets' — https://doi.org/10.2139/ssrn.3964908

Pim van Vliet is on a mission to put the low volatility factor on the map. In his role as Head of Conservative Equities and Chief Quantitative Strategist at Robeco, he focuses on leveraging the effect of low-risk investing. Pim has also published a book, High Returns From Low Risk: A Remarkable Stock Market Paradox, where he unpacks some of the key aspects that guide his work and underpin his success. During this conversation, Pim shares his insights on volatility, the changing market, and combining low-risk with other traditional factors. He equips listeners with key considerations for evaluating strategies or products when allocating low-risk and offers his perspective on out-of-sample-testing, distinguishing between global-factor and cross-sectional premiums, and more. Listeners will get Pim's perspective on the pros and cons of the Sharpe ratio, and we examine risk-adjusted returns on long and short legs before hearing his Fama-French Five Factor Model analysis. We touch on inflation and gold, and finally, Pim shares his inspiring perspective on success in his financial and personal life. Tune in today to hear more!    Key Points From This Episode:   Introducing Pim Van Vliet and his mission to put low volatility on the map as a factor. (0:00:41) Defining the low-risk effect with reference to volatility and its impact on other asset classes. (0:04:47) Low-risk portfolio performance in relation to the changing market. (0:12:02) Combining low-risk with other traditional factors. (0:21:43) Considerations for evaluating strategies or products when allocating low-risk. (0:24:35) Out-of-sample testing. (0:31:28) Distinguishing between global factor premiums and cross-sectional premiums. (0:35:18) Weighing the pros and cons of the Sharpe ratio as an evaluation tool. (0:40:19) Examining the risk-adjusted returns of long and short legs. (0:41:20) Issues with the Fama-French Five Factor Model. (0:44:37) Why factor premiums vary through inflation regimes. (0:50:41) How an allocation to gold holds up as a downside hedge. (0:52:53) Pim's definition of success in his life. (0:56:31)   Links:    Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-264-pim-van-vliet-the-volatility-effect-revisited-discussion-thread/24622 Book From Today's Episode: High Returns From Low Risk: A Remarkable Stock Market Paradox — https://amzn.to/3rMkJxQ 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/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Pim van Vliet on Twitter — https://twitter.com/paradoxinvestor Pim van Vliet — http://www.paradoxinvesting.com 'The Volatility Effect' — https://www.robeco.com/files/docm/docu-the-volatility-effect-2007.pdf 'The Volatility Effect Revisited' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3442749 'Ten Things You Should Know About Low-Volatility Investing' — https://www.robeco.com/en-int/insights/2017/07/ten-things-you-should-know-about-minimum-volatility-investing 'The Conservative Formula: Quantitative Investing Made Easy' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3145152 'Media attention and the volatility effect' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3403466 'When Equity Factors Drop Their Shorts' — https://www.robeco.com/en-int/insights/2021/02/when-equity-factors-drop-their-shorts 'The Cross-Section of Stock Returns before CRSP' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3969743 'Global factor premiums' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3325720 'Investing in Deflation, Inflation, and Stagflation Regimes' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4153468 'Five Concerns with the Five-Factor Model' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2862317 'The golden rule of investing' — https://www.robeco.com/en-int/insights/2023/04/the-golden-rule-of-investing

With the recent passing of Harry Markowitz, we wanted to take this opportunity to spend some time honoring this giant of financial economics. Joining us on today's episode is our friend Alex Potts, who shares some of his touching memories of Harry, and talks about the unmistakable impact he had on the field. Harry is commonly viewed as the father of modern portfolio theory but also might be considered the grandfather of behavioural finance and a huge proponent of intelligent diversification. Alex graciously shares the nine lessons he learned from Harry, a few 'Harryisms' and some fond and surprising anecdotes from the time he spent with the man. Following this, we welcome Edward Goodfellow to the show to explore his new book, 7 Steps to A Better Portfolio. Edward is a fellow Canadian financial advisor, and we get to hear from him about the motivations for his book, its intended audience, and his insight into a host of central and familiar themes that we deal with on the show, so join us to hear it all.    Key Points From This Episode: Looking back on the irreplaceable contributions of Harry Markowitz. (0:05:24) Alex talks about reaching out and meeting Harry in 2010. (0:10:00) Harry's amazing work ethic, unusual approach to problem-solving, and the nine lessons that Alex learned from him. (0:14:23) Edward shares his motivations for writing 7 Steps to A Better Portfolio, the questions that gave it structure, and its intended audience. (0:25:53) Understanding math and emotion, the four questions to ask before investing, and dangerous investment personalities and influencers. (0:29:39) Categorizing the different types of risk we encounter as investors, and the role of predictions and expectations. (0:35:41) Charting the evolution of a strategy over time, how to reassess and determine risk tolerance, and evaluating performance. (0:38:06) Edward describes different types of active and passive investing and the seven steps from his book. (0:40:26) Comparing financial science and active management research, and how to manage strategy risk. (0:49:42) How Edward looks at the value of financial advice and his biggest takeaway from writing the book. (0:52:58) The best way to approach figuring out the contradictions in the world of finance. (0:54:24) Today's after-show featuring listener reviews, community updates, and future episode guests. (0:56:20) Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-263-a-tribute-to-harry-markowitz-with-alex-potts-7-steps-to-a-better-portfolio-with-edward-goodfellow-discussion-thread/24528 Book From Today's Episode: 7 Steps to A Better Portfolio — http://www.7stepstoabetterportfolio.com/ 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/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Alex Potts — https://buckinghamstrategicwealth.com/people/alex-potts Edward Goodfellow — https://www.pifinancialcorp.com/advisor/edward-goodfellow

Household finance has grown considerably as a field of study in recent years. And with the decrease in defined benefits pension plans, households are increasingly needing to take more responsibility for their own financial fates (much more so than they needed to in the past). Joining us today to discuss household finance and the growing importance of households in the economy, is Professor Francisco Gomes. Francisco is a Professor of Finance at London Business School and earned his PhD in economics at Harvard with his main areas of expertise being household finance, capital markets, asset allocation, and macroeconomics. In our expansive conversation with Francisco, we discuss the increasingly important role of households in the economy, how this has contributed to household finance becoming a more prominent field of study, and what can be done to make sure that academic findings reach, and positively impact, households. Francisco shares a detailed outline of what he's learned from his research, covering topics like level of education, automation at work, peer effects, and culture, with explanations of how these elements can impact household financial decisions. We also learn about his passion for financial literacy, why he is such a big proponent of ensuring that everyone has access to a quality personal finance education, and the personal finance course he currently teaches at London Business School. To learn more from Francisco about the study of household finance and how to improve outcomes for households, be sure to tune in today!   Key Points From This Episode:   What it means to maximize your wealth over your lifetime and the crucial ratio determining optimal asset allocation. (0:02:53) How optimal asset allocation changes over your life cycle and how our human capital diminishes with age. (0:08:08) Building a buffer stock of wealth and the evidence that people become more comfortable with risk as they get richer. (0:10:03) The importance of simplifying life cycle asset allocation models to help households make decisions and have a tangible impact on people's lives. (0:16:28) The biggest gap between theory and what households do; not investing in stocks. (0:20:32) An overview of the biggest mistakes people make when they invest in stocks and why it ties back to financial literacy. (0:23:49) How the process of optimizing asset allocation changes at retirement, the importance of hedging longevity risk, and why annuities are so useful. (0:25:40) A rundown of some of the reasons behind why annuity uptake is so low and why it is often referred to as the annuity puzzle. (0:29:20) The impact of automation in the workplace on household wealth accumulation and how exposure to automation is measured. (0:35:02) How one's level of education affects the interaction between automation and wealth and how households should respond to automation at work. (0:38:12) Lessons from Francisco's research for households thinking about the future after a change in their financial situation. (0:45:18) Why household finance has become more prominent as a field of study in recent history and what economists need to do to ensure their findings positively impact households. (0:47:30) How culture can influence household financial behaviour and the evidence that people learn from their peers. (0:50:47) Insights into the potential for financial advice to improve the finance of households and why Francisco is such a big proponent of personal finance education and financial literacy. (0:52:35) Learn about Francisco's personal finance course at London Business School and what he's most excited about in his upcoming research. (0:54:01) Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-262-francisco-gomes-consumption-and-portfolio-choice-over-the-life-cycle-discussion-thread/24433   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/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Prof. Francisco Gomes on Twitter — https://twitter.com/Franc_J_Gomes Prof. Francisco Gomes — https://sites.google.com/view/francisco-gomes/home 'Optimal Life-Cycle Investing with Flexible Labor Supply: A Welfare Analysis of Life-Cycle Funds' — https://www.jstor.org/stable/29730037 'Consumption and Portfolio Choice over the Life Cycle' — https://academic.oup.com/rfs/article-abstract/18/2/491/1599892?redirectedFrom=fulltext ' Portfolio Choice Over the Life Cycle: A Survey' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3744669 'Longevity risk, retirement savings, and financial innovation' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X11002339 'Stock Market Participation and Portfolio Shares Over the Life Cycle' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3808350 'Optimal Life-Cycle Asset Allocation: Understanding the Empirical Evidence' — https://www.jstor.org/stable/3694770 'Do Robots Increase Wealth Dispersion?' — https://academic.oup.com/rfs/advance-article-abstract/doi/10.1093/rfs/hhad050/7192998?redirectedFrom=PDF 'Evidence on Expectations of Household Finances' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3229980 'Household Finance' — https://www.aeaweb.org/articles?id=10.1257/jel.20201461

Our focus for today's episode is the topic of structured products and we welcome two expert guests to weigh in with their research and insight on the subject. Felix Fattinger is an Assistant Professor of Finance at the Vienna Graduate School of Finance whose research focuses on complexity from a number of perspectives. Petra Vokata is an Assistant Professor of Finance at Ohio State University, currently working in areas of household finance, financial innovation, and consumer financial protection. Both Felix and Petra offer some amazing takeaways for retail investors, deftly balancing the data with their ability to read it and implement the lessons we should learn about structured products. We then welcome Jill Schlesinger back to the show to talk about her new book, The Great Money Reset. We hear from her about the process of writing the book, her aims for its publications, and the main questions it can help individuals answer.  Felix Fattinger thanks his co-authors Marc Chesney, Jonathan Krakow (both University of Zurich) and Simon Straumann (WHU – Otto Beisheim School of Management).   Key Points From This Episode:   Felix talks about his interest in complexity and how to understand the three different types of structured products. (0:07:23) The definition of headline rates and their relationship to expected returns. (0:18:23) Laying out the biggest lessons from Felix's research; price competition regulation, expected returns, and simulating portfolios. (0:32:21) Petra shares her reasons for researching structured products and what she focuses on. (0:40:36) The doubts Petra has about YEPs, the evolution of their fee structure, and estimating their expected returns. (0:49:02) The YEP index and how it can help investors mitigate certain issues. (1:02:42) Actions by banks that increase headline rates of return and how this relates to expected returns. (1:06:56) Unpacking the biggest lesson from Petra's research about understanding fees and payoff. (1:10:12) A 60-second recap of Jill Schlesinger's previous episode with us. (1:14:53) Explaining the idea of the 'great money reset' and why Jill's latest book was so much easier to write than her first one. (1:17:22) Jill shares the five steps to go through before a reset and expands on the important considerations. (1:21:33) Tips for negotiating with your boss and final thoughts on approaching a financial reset. (1:32:04) Today's after-show; recent time off, listener reviews, community and event updates, and a song from RootHub. (1:41:22)   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/  Felix Fattinger — https://www.wu.ac.at/en/finance/people/faculty/felix-fattinger-1/ Petra Vokata — https://petravokata.com/ Petra Vokata on Twitter — https://twitter.com/vokataa Jill Schlesinger — https://www.jillonmoney.com/ Jill Schlesinger on Twitter — https://twitter.com/jillonmoney The Great Money Reset — https://www.amazon.com/Great-Money-Reset-Change-Wealth-ebook/dp/B09Y44ZJXT Episode 67 with Jill Schlesinger — https://rationalreminder.ca/podcast/67 Jill on Money Podcast — https://www.jillonmoney.com/podcasts The Dumb Things Smart People Do with Their Money — https://www.amazon.com/Things-Smart-People-Their-Money/dp/0525622179 Neil Pearson — https://giesbusiness.illinois.edu/profile/neil-pearson Episode 236 with Harold Geller — https://rationalreminder.ca/podcast/236 Episode 102 with Brian Portnoy — https://rationalreminder.ca/podcast/102 Future Proof — https://futureproof.advisorcircle.com/ The Most Hated F-Word Podcast — https://themosthatedfword.com/ RootHub — https://www.roothub.com/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on Twitter — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.ca Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/  Benjamin on Twitter — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on Twitter — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Today we welcome James Choi, Professor of Finance at the Yale School of Management, to the show to share some of his insight into what he has dubbed practical finance. James has focused his research on behavioural finance, behavioural economics, household finance, capital markets, health economics, and sociology, and is turning this expertise into pragmatic knowledge marketed towards ordinary people. This reframing and reconfiguration of the theory for all people and the decisions they make, could not be more in line with what we are trying to do here at Rational Reminder, and this conversation with James was packed with so many surprising and informative responses to relatable questions. We ask James about index funds, the benefits of advisors, optimal equity, diversification, and much more. We also spend a little bit of time exploring the individual reasons that people have for their decisions, with James expanding on the disconnect between people's philosophy and their actions. Further topics include the role and impact of education, renting versus buying, and the formulation of his concept of practical finance, so make sure to join us and catch it all.   Key Points From This Episode:   The failure of economic theory to explain everyday financial decisions. (0:03:03) A little about James' course on personal finance at Yale. (0:06:29) Economic theory and popular personal finance advice on optimal savings and consumption. (0:12:06) Looking at economic theory and popular personal finance's suggestions about optimal equity allocations for households. (0:19:33) The kinds of personal aversions people have towards their finances. (0:27:07) The impact that James' survey research has had on his perspectives on equity. (0:29:42) Practical application of economic theory to household decisions. (0:32:29) Increased awareness of the benefits of index funds. (0:42:59) James shares a few famous economists' investment strategies. (0:44:11) Some thoughts on approaches to and avoidance of diversification. (0:45:48) Differentiating between mistakes and unique behaviours we cannot justify. (0:52:26) The efficacy of education, financial advice, and personal experience in improving investment decisions. (0:55:44) Liquid and illiquid assets and renting versus buying property. (1:02:26) James talks about his excitement around his current work in practical finance. (1:07:50) How James defines success at this point in his life. (1:09:52) Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-260-prof-james-choi-practical-finance-discussion-thread/24227   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/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore James Choi — https://faculty.som.yale.edu/jameschoi/ 'Behavioral Household Finance' — https://www.hbs.edu/ris/Publication%20Files/behavioral_household_finance_a3b33098-e0c7-40e0-bf2f-fa4ceb6e6d06.pdf 'Finance for the Rest of Us' — https://www.linkedin.com/posts/james-j-choi-finance_finance-for-the-rest-of-us-activity-6997910789097414656-5epq/?originalSubdomain=ba 'Popular Personal Financial Advice versus the Professors' — https://www.aeaweb.org/articles?id=10.1257/jep.36.4.167 'Millionaires Speak: What Drives Their Personal Investment Decisions?' — https://www.nber.org/papers/w27969 'What Matters to Individual Investors? Evidence from the Horse's Mouth' — https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.12895 'Are Empowerment and Education Enough? Underdiversification in 401(k) Plans' — https://www.jstor.org/stable/3805120 'Why Does the Law of One Price Fail? An Experiment on Index Mutual Funds' — https://www.nber.org/papers/w12261 '$100 Bills on the Sidewalk: Suboptimal Investment in 401(k) Plans' — https://www.nber.org/papers/w11554

Join us as we present a compilation of segments on expected returns and the dynamics that shape investment outcomes. We deep dive into the world of financial predictions and gain a comprehensive understanding of how expected returns influence your financial decision-making. We also go back to the episode with Dr. Brian Portnoy where we delved into his book, The Geometry of Wealth. Lastly, joining our conversation is our colleague Matt Gour who discusses The Power of Moments by Chip and Dan Heath. We discuss how extraordinary moments have the power to shape our lives and the pivotal importance of crafting unforgettable experiences. Tune in now!   Key Points From This Episode:   What Pressor Fama had to say about expected returns. (0:03:35) Looking at returns through a historical lens with Professor Goetzmann. (0:08:23) Professor Cederburg explains the usefulness of historical data. (0:11:38) Hear Professor Cochrane's perspective on expected returns. (0:15:19) Professor Cornell shares his contrasting view on historical returns. (0:23:41) We recap our discussion with Professor French about uncertainty. (0:34:23) Breaking down the conventional viewpoint of uncertainty with Professor Pastor. (0:38:34) A brief overview of our approach to estimating expected returns. (0:44:03) Highlights from our conversation with Dr. Brian Portnoy about his book. (0:47:56) Matt Gour joins us for our weekly book review of The Power of Moments. (0:51:15) He shares an impactful moment from his childhood. (0:54:04) We unpack a main takeaway from the book: the peak-end rule. (0:56:23) The four elements needed to create a defining moment. (0:57:51) Learn about the different types of defining moments. (1:01:02) How to be deliberate about creating powerful moments. (1:01:02) Main takeaways from the book. (1:04:55) The aftershow, planned meetups, upcoming projects, and more. (1:07:15)   Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-259-comprehensive-overview-estimating-expected-returns-discussion-thread/24077 Book From Today's Episode: The Geometry of Wealth: How to shape a life of money and meaning — https://amzn.to/46qpjl5 The Power of Moments: Why Certain Experiences Have Extraordinary Impact — https://amzn.to/3pmYJJb 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/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Nick Maggiulli on Instagram — https://instagram.com/nickmaggiulli Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore 'Financial Planning Assumptions for Market-Cap Weighted and Factor Tilted Portfolios – Methodology Guide' — https://www.pwlcapital.com/resources/financial-planning-assumptions-for-market-cap-weighted-and-factor-tilted-portfolios-methodology-guide/  Episode 38: Feelings in the Decision Making Process — https://rationalreminder.ca/podcast/38 Episode 92: Dr. Moira Somers and Dave Goetsch — https://rationalreminder.ca/podcast/92 Episode 100: Professor Kenneth French — https://rationalreminder.ca/podcast/100 Episode 102: Dr. Brian Portnoy — https://rationalreminder.ca/podcast/102 Episode 124: Professor Lubos Pastor — https://rationalreminder.ca/podcast/124 Episode 151: Professor Brad Cornell — https://rationalreminder.ca/podcast/151 Episode 169: Professor John Cochrane — https://rationalreminder.ca/podcast/169 Episode 189: Regret (and How to Read More w/ Neil Pasricha) — https://rationalreminder.ca/podcast/189 Episode 200: Professor Eugene Fama — https://rationalreminder.ca/podcast/200 Episode 224: Professor Scott Cederburg — https://rationalreminder.ca/podcast/224 Episode 248: Professor William Goetzmann — https://rationalreminder.ca/podcast/248

Behavioural finance provides a realistic and comprehensive framework for understanding financial markets and decision-making. Incorporating insights from psychology, it enhances our understanding of investor behaviour, market dynamics, and risk management, leading to more effective investment strategies and improved financial outcomes. In this episode, Professor Meir Statman, a renowned expert in finance and behavioural finance, takes us on a captivating journey through the intriguing world of maximizing well-being through finance. Professor Statman is a distinguished financial expert and a leading authority in the field of behavioural finance. His groundbreaking research has shaped the understanding of investor behaviour and its impact on financial decision-making. Through his academic contributions and practical insights, Professor Statman has become a trusted guide in navigating the complex intersection of finance and human behaviour. In our conversation, he unravels the secrets of maximizing well-being through finance and the intricacies of the field. We explore the captivating world of behavioural finance and its connection to efficient markets, the distinction between normal and rational investors, the allure of lottery-like assets, and the downsides of consuming dividends. We unpack the aversion to realizing losses and the debate between dollar-cost averaging and lump-sum investing. We delve into the rising popularity of alternative investment strategies, the influence of status on rational investor behaviour, the role of financial advisors, and much more. Tune in for this enlightening conversation that will not only reshape your understanding of finance but human behaviour too.   Key Points From This Episode:   Defining what behavioural finance is and how it relates to efficient markets. (0:04:37) How traditional financial economists responded to Professor Statman's early behavioural work and the current state of behavioural finance research. (0:06:12) The various generations of behavioural finance and how they differ. (0:08:51) Differences between a normal investor and a rational one. (0:13:10) What investors really want and why normal investors like lottery-like assets. (0:15:48) Reasons normal investors have a preference for cash dividends. (0:20:17) Downsides of consuming dividends and not capital. (0:22:09) Unpacking why normal investors are averse to realizing losses. (0:25:40) Dollar-cost averaging versus lump sum investing. (0:27:57) The popularity of alternative investment strategies to normal investors. (0:31:13) Insights about the difference between an error and what a person wants. (0:34:49) The influence of status on rational investor behaviour and whether financial advisors should cater for elevating status. (0:36:37) Currency hedging, regret, the value of financial literacy, and the distinction between behavioural portfolio theory and traditional mean-variance portfolio theory. (0:40:50) Applying the market's portfolio theory to behavioural portfolio theory. (0:49:36) Exploring theories through a CAPM lens and behavioural theory's interpretation of return premiums from factors like size and value. (0:50:51) The role of financial advisors in correcting behavioural errors of clients. (1:00:16) Professor Statman's definition of success. (1:09:25)   Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-258-prof-meir-statman-financial-decisions-for-normal-people-discussion-thread/23934   Book From Today's Episode: Behavioral Finance: The Second Generation — https://amzn.to/3qR7AmM   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/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Prof. Meir Statman on Twitter — https://twitter.com/meirstatman Prof. Meir Statman — https://www.scu.edu/business/finance/faculty/statman/ 'Behavioral Efficient Markets' — http://doi.org/10.3905/jpm.2018.44.3.076 'What Is Behavioral Finance?' — https://www.cfainstitute.org/-/media/documents/book/rf-publication/2019/behavioral-finance-the-second-generation.pdf 'Behavioral Finance: The Second Generation' — https://www.cfainstitute.org/-/media/documents/book/rf-publication/2019/behavioral-finance-the-second-generation.pdf What Investors Really Want — http://doi.org/10.2469/faj.v66.n2.5 Explaining investor preference for cash dividends — http://doi.org/10.1016/0304-405x(84)90025-4 The Disposition to Sell Winners Too Early and Ride Losers Too Long: Theory and Evidence — https://doi.org/10.1111/j.1540-6261.1985.tb05002.x A Behavioral Framework for Dollar-Cost Averaging — http://doi.org/10.3905/jpm.1995.409537 Behavioral Aspects of the Design and Marketing of Financial Products — http://doi.org/10.2307/3665864 Options and structured products in behavioral portfolios — http://doi.org/10.1016/j.jedc.2012.07.004 Lottery Players/Stock Traders — http://doi.org/10.2469/faj.v58.n1.2506 Hedging Currencies with Hindsight and Regret — http://doi.org/10.3905/joi.2005.517170 Behavioral Portfolio Theory — http://doi.org/10.2307/2676187 Portfolio Optimization with Mental Accounts — https://www.cambridge.org/core/services/aop-cambridge-core/content/view/4B23CFB326982C52014A1BA447FA9244/S0022109010000141a.pdf/portfolio-optimization-with-mental-accounts.pdf Making Sense of Beta, Size, and Book-to-Market — http://doi.org/10.3905/jpm.1995.409506 Affect in a Behavioral Asset-Pricing Model — http://doi.org/10.2469/faj.v64.n2.8 From Financial Advisers to Well-Being Advisers; Well-Being Advisers — http://doi.org/10.3905/jwm.2023.1.202

What are your guiding philosophies on work and life? And how do they influence your daily decisions and the trajectory of your career? If these questions feel somewhat daunting, and you aren't sure how to answer them, then this episode is a great place to start! Joining us today is Giorgio Ugazio, a self-described content creator, startup founder, and father. Giorgio is a software engineer by training, with a Master's degree in Artificial Intelligence and robotics, and spent over seven years working at Google. He is the founder of Retire In Progress, a blog where he shares his thoughts on life, work, achieving financial independence, and retiring early. The platform has amassed a dedicated following thanks to Giorgio's many unique insights on life, design, and living intentionally. In today's conversation, we talk with Giorgio about the underpinnings of his philosophies, the excellent book Designing Your Life: How to Build a Well-Lived, Joyful Life, and how his interpretation of it clarified his perspectives on life and work. We discuss the key tenets in Designing Your Life along with how you can use its many tools and exercises to determine your current position, assess your value, and define your compass. Giorgio goes on to share the thinking behind his foundational beliefs, like why you shouldn't play the status game, before reflecting on who he believes would benefit most from reading Designing Your Life. To hear all of Giorgio's fascinating insights and how to incrementally build your model of life, be sure to tune in today!   Key Points From This Episode:   A quick recap and review of episode 100 with Professor Ken French. (0:02:57) Introducing Giorgio Ugazio, aka Mr. RIP,  his website, Retire Your Life, and how you can access his extensive notes on the book Designing Your Life online. (0:05:16) An overview of Designing Your Life, guidance on how to classify problems, and a breakdown of what it means to prototype solutions. (0:08:49) Insight into the tools, exercises, and processes that the book offers: how it helps you determine where you are, assess your value, and define your compass. (0:13:05) How to do the Odyssey Planning exercises. (0:16:22) The four key areas covered in the book, why Giorgio added the categories learning, money, and creativity, and how he incorporates lessons from the book into his life. (0:18:18) Determining your views on life and work, and how the two interact. (0:21:54) The Pomodoro technique: what it is, and how to use it. (0:23:12) Giorgio's perspective on work: why we do it, the purpose it serves, and the criteria he uses to assess his position. (0:25:11) What you learn when you take money out of the equation, why you should ignore the status game, and the importance of finding ways to enjoy your life. (0:29:46) Giorgio's view on life, the philosophers that inspire him, and his guidelines for what he thinks a good life should be. (0:36:41) Some of the misalignments between Giorgio's ideal life and his actual life. (0:42:29) How life and work both drive and complement one another. (0:44:16) Giorgio's advice on applying lessons from Designing Life and who he thinks will benefit most from reading it. (0:48:51) Our thoughts on the movie Air, some of the wonderful reviews we've been getting from listeners, and news about upcoming meetups. (0:51:26)   Book From Today's Episode: Designing Your Life: How to Build a Well-Lived, Joyful Life — https://amzn.to/3N5Xp57   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/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Giorgio Ugazio on Twiter — https://twitter.com/retireinprogres Giorgio Ugazio — http://retireinprogress.com Giorgio's Notes on Designing Your Life — mr.rip/dyl Episode 100: Prof. Kenneth French: Expect the Unexpected — https://rationalreminder.ca/podcast/100

How does the connection we have with our future self impact the decisions we make today? And what active steps can we take to improve our connection with our future selves? Today on the show we welcome back Hal Hershfield, whose new book Your Future Self: How to Make Tomorrow Better Today delves into the science of our relationship with our future selves and what we can do to change it for the better. In our conversation with Hal, we discuss the concept of the self, how we change over time, and why so many of us feel disconnected from our future selves. He describes the research surrounding these subjects and their findings, including how the brain scans they performed demonstrate that we mostly see our future selves as strangers, and why this is caused, at least in part, by the fact that our future selves don't technically exist yet. We also discuss the interventions that have been shown to improve our relationship with our future selves, like viewing age-progressed images or exchanging letters with our future selves, and why everyone responds to these interventions differently. Having a strong connection with your future self has many benefits. It means you're more likely to make decisions that will serve you later in life, like saving for retirement, eating healthily, and exercising regularly. But Hal also warns that we risk losing sight of the present and what truly matters when we focus solely on the future. To hear all of Hal's knowledgeable insights on this topic and what he wants to explore next, be sure to tune in today! Key Points From This Episode: Defining the self and how our identity shifts depending on age, context, and the people we surround ourselves with. (0:04:08) An overview of Hal's research and what it reveals about how most people connect (or don't connect) to their future selves. (0:08:29) How empathy can influence our connection to our future selves. (0:11:36) Insights into why we tend to think of our future self the same way we think about strangers or acquaintances. (0:14:19) Our level of connection to our future self and how it affects wealth accumulation and financial well-being. (0:17:53) The definition of 'present bias' and 'hyperbolic discounting' and the role they play in decisions about the future. (0:19:28) The end-of-history illusion and the impact it has on our decisions. (0:23:02) How viewing age-progressed images of yourself can help you build a connection with your future self. (0:26:35) The research Hal is conducting with MIT Media Lab using an AI chatbot called Future You. (0:29:35) © 2023 Rational Reminder Podcast 1 RRP 256 Show Notes Dan Pink's work on the power of regret and how it overlaps with Hal's research and findings. (0:31:59) The findings on being presented with age-progressed images of ourselves and how they impact our decision-making and relationship with our future selves. (0:35:20) How writing to your future self can improve your decisions. (0:40:16) The problems that arise when we become too focused on improving life for our future self and how to find harmony between the present and future. (0:44:03) The COVID-19 pandemic and its impact on our collective relationship with the future. (0:48:10) Learn about the live episode we'll be recording at the upcoming Future Proof conference with Hal as our guest. (0:51:24)   Links From Today's Episode: Hal Hershfield — https://www.halhershfield.com/ Hal Hershfield on Twitter — https://twitter.com/HalHershfield Hal Hershfield on LinkedIn — https://www.linkedin.com/in/hal-hershfield-a2b91510/ Your Future Self: How to Make Tomorrow Better Today — https://www.halhershfield.com/ yourfutureself Episode 141: Hal Hershfield: The Psychology of Long-term Decision Making — https:// rationalreminder.ca/podcast/141 The Power of Regret: How Looking Backward Moves Us Forward — https://www.amazon.com/ Power-Regret-Looking-Backward-Forward/ Episode 246: Daniel H. Pink: How to Use Regret — https://rationalreminder.ca/podcast/246 Future Proof Festival — https://futureproof.advisorcircle.com/ Brian Knutson — https://profiles.stanford.edu/brian-knutson Dan Martell — https://www.danmartell.com/ Derek Parfit — https://www.britannica.com/biography/Derek-Parfit Daniel Gilbert — http://www.danielgilbert.com/ ING — https://www.ing.com/Home.htm Merrill Lynch — https://www.ml.com/ Shlomo Benartzi — http://www.shlomobenartzi.com/ Stephen Shu — https://steveshuconsulting.com/ 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 YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.ca
 Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on Twitter — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on Twitter — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Structured products can offer unique investment opportunities and customization but also come with risks and complexities. It is vital to thoroughly understand the product's structure, risks, and potential returns before investing. In this episode, we delve into the value of structured products and recap a past episode about the philosophy of money before continuing our focus on reading and finance by diving into the book, Just Keep Buying by Nick Maggiulli. Nick is a highly regarded author known for his insightful and engaging works on finance and investing. With a passion for demystifying complex financial concepts, Nick has earned a reputation for his ability to present information in a clear and accessible manner. His ability to blend storytelling with data-driven insights made his articles immensely popular among readers of all backgrounds. We discuss the pros and cons of financial products, why investors prefer them, the dark side of structured products, and what investors need to avoid. We recap a past episode with Barry Ritholtz about the philosophy of money and the main takeaways from our conversation with him. Then, we delve into Just Keep Buying and the invaluable lessons and uncover hidden gems it offers readers before speaking to Nick about savings and investing. We discuss the best strategies for investing, how to spend your money comfortably, why you should never wait for the markets to dip, and much more. To learn everything about structured products and valuable insights about saving and investing, tune in now.    Key Points From This Episode:   •    Learn about structured products and what they offer investors. (0:03:12) •    Why structured products can be a problem for investors. (0:07:00) •    We discuss whether the pricing of structured financial products is fair. (0:12:05) •    How financial institutions use complexity to exploit uninformed investors. (0:14:51) •    Outline of key findings from research conducted on structured financial products. (0:17:47) •    The behavioural aspect of structured products and why investors prefer them. (0:22:20) •    A recap of the main takeaways from our interview with Barry Ritholtz. (0:26:10) •    This week's book review of Just Keep Buying. (0:28:54) •    Nick explains the difference between saving and investing. (0:32:54) •    A comparison of just keep buying and dollar cost averaging strategies. (0:35:21) •    Whether people should wait for a dip in the market before investing. (0:37:23) •    Why you do not need as much savings as you think you need. (0:39:04) •    What the biggest lie is regarding personal finance. (0:42:29) •    Find out how to spend your money guilt-free. (0:44:13) •    He unpacks what comes after the just keep buying strategy, and how to be comfortable spending more in retirement. (0:46:48) •    Financial advice that Nick has for listeners. (0:51:03) •    The aftershow: upcoming guests, feedback about the show, and more. (0:53:59)    Links From Today's Episode: Nick Maggiulli — https://ofdollarsanddata.com/ Nick Maggiulli on LinkedIn — https://www.linkedin.com/in/nicholasmaggiulli/ Nick Maggiulli on Twitter — https://twitter.com/dollarsanddata Just Keep Buying — https://www.amazon.com/Just-Keep-Buying-Proven-wealth/ Episode 57: Barry Ritholtz — https://rationalreminder.ca/podcast/57 Episode 248: Professor William Goetzmann — https://rationalreminder.ca/podcast/248 Episode 253: Professor Paul Calluzzo — https://rationalreminder.ca/podcast/253 Episode 126: Dr. Brian Portnoy and Josh Brown — https://rationalreminder.ca/podcast/126 'The dark side of financial innovation' — https://www.sciencedirect.com/science/article/abs/pii/ 'Catering to Investors Through Security Design' — https://academic.oup.com/qje/article- abstract/132/3/1469/3057435 'Engineering lemons' — https://www.sciencedirect.com/science/article/abs/pii/ S0304405X21001653 'Ex-post Structured Product Returns' — https://www.pm-research.com/content/iijinvest/24/2/45 Ritholtz Wealth Management — https://ritholtzwealth.com/ Animal Spirits Podcast — https://animalspiritspod.libsyn.com/ Masters in Business Podcast — https://www.bloomberg.com/podcasts/series/master-in- business Die With Zero — https://www.amazon.com/Die-Zero-Getting-Your-Money/dp/0358099765 Superfans — https://www.amazon.com/Superfans-Stand-Tribe-Successful-Business/dp/ 1949709469 Storyworthy — https://www.amazon.com/Storyworthy-Engage-Persuade-through-Storytelling/ dp/1608685489 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 YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.ca
 Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on Twitter — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on Twitter — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

There are many different objective functions you can use when building optimal portfolios. The majority of these approaches define risk from the perspective of variability or bad outcomes, but positive returns could be viewed as "risky" for those that don't experience them, which is another way of saying that people experience regret (or FOMO, for our trendier listeners). Today, we are joined by David Blanchett, a return guest and the Managing Director and Head of Retirement Research for PGIM DC Solutions, the global investment management arm of Prudential Financial. He is also an Adjunct Professor of Wealth Management at The American College of Financial Services and a Research Fellow for the Alliance for Lifetime Income. David returns to the podcast for an articulate discussion about regret in portfolio construction, what drives it, and how financial advisors can cater to it. We then delve into how David is redefining optimal retirement income strategies, looking at retirement tools, retirement planning, compensation models in the industry, risk exposures, and portfolios. We also get a high-level overview of some of the fascinating work that David has done on home-country bias, plus so much more. For highly technical content presented in an accessible and practical way by one of the brightest minds in retirement planning, be sure to tune in today! Key Points From This Episode: • Differences between risk aversion and regret aversion. (0:03:57) • The distinctly human element that drives "investment FOMO." (0:06:34) • Insight into how David models regret in his research. (0:09:06) • The asset pricing implications of approaching portfolio optimization this way. (0:12:11) • Tips for deciding on what the regret benchmark should be. (0:13:19) • How a portfolio optimization routine based on regret affects asset allocation. (0:14:08) • Ways that the effect of optimizing over regret changes depending on risk aversion. (0:16:55) • Other asset characteristics that might drive optimal allocation to regret assets. (0:18:04) • Why moving away from self-direction is the best thing to happen to 401(k) plans. (0:20:53) • How financial advisors should cater to investors interested in speculative assets. (0:24:00) • Unpacking some of the social and story-driven sources of regret. (0:29:03) • Downsides to modelling retirement liability as a static inflation-adjusted amount. (0:32:00) • Why it's important to understand the composition of retiree spending and saving. (0:33:57) • David's research into dynamic spending rules for retirement planning. (0:42:06) • Some of the key pitfalls of existing financial planning tools and solutions. (0:44:38) • Ways that safe withdrawal rates change when you incorporate dynamic spending. (0:51:10) • How advisor channel affects passive fund choice and how clients should respond. (0:57:56) • Insight into David's research on foreign revenue and home-country bias. (1:02:27)     Links From Today's Episode: David Blanchett — https://www.davidmblanchett.com/ David Blanchett on Twitter — https://twitter.com/davidmblanchett David Blanchett on LinkedIn — https://www.linkedin.com/in/david-blanchett-b0b0aa2/ © 2023 Rational Reminder Podcast 2 RRP 254 Show Notes PGIM — https://www.pgim.com/ E137: David Blanchett: Researching Retirement — https://rationalreminder.ca/podcast/137 'Regret and Optimal Portfolio Allocations' — https://www.pm-research.com/content/iijpormgmt/ early/2023/02/01/jpm20231464 'Keep Keeping Your Distance: An Updated Look at 401(k) Participant Behaviors During the COVID-19 Crisis' — https://www.morningstar.com/articles/1032011/keep-keeping-your- distance-an-updated-look-at-401k-participant-behaviors-during-the-covid-19-crisis 'Save more with less: The impact of employer defaults and match rates on retirement saving' — https://onlinelibrary.wiley.com/doi/abs/10.1002/cfp2.1152 'Redefining the Optimal Retirement Income Strategy' — https://www.tandfonline.com/doi/full/ 10.1080/0015198X.2022.2129947 'Focusing on Both Sides of the Balance Sheet: The Benefit of Liability Optimization' — https:// web.p.ebscohost.com/abstract 'The Problems with Monte Carlo are in Your Mind' — https://www.advisorperspectives.com/ articles/2023/04/24/the-problems-with-monte-carlo-are-in-your-mind 'Does Advisor Channel Influence Passive Fund Choice?' — https:// www.financialplanningassociation.org/learning/publications/journal/APR22-does-advisor- channel-influence-passive-fund-choice-OPEN 'Foreign Revenue: A New World of Risk Exposures' — https://www.pm-research.com/content/ iijpormgmt/47/6/175 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 YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.ca
 Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on Twitter — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on Twitter — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

We have two guests joining us for this episode of the Rational Reminder podcast. First up, we have Paul Calluzzo, who is the Assistant Professor of Finance and Toller Family Fellow of Finance in the Smith School of Business at Queen's University in Kingston. Paul joins us today to discuss the findings in his paper, 'Complex Instruments Have Increased Risk and Reduced Performance at Mutual Funds'. He explains the motivation for the paper, the research it expands upon, and the types of complex instrument allowances it investigates. We discuss reverse causality and find out how complex instrument allowance is related to fund performance and risk, respectively, before hearing Paul's investment advice. For the second half of the show, we are joined by the author of Losing the Signal: The Spectacular Rise and Fall of BlackBerry, Sean Silcoff to discuss the BlackBerry revolution and its subsequent decline, and the film adaptation of the book. Tune in for our guests' insights into best practices for investors and business leaders alike.   Key Points From This Episode:   •    Housekeeping: check out our CE courses and reach out for financial advice. (0:02:25) •    An introduction to Paul Calluzzo and our conversation with him about the impact of complex financial instruments on mutual funds. (0:05:20) •    The motivation for the paper, 'Complex Instruments Have Increased Risk and Reduced Performance at Mutual Funds', the research it expands upon, and the types of complex instrument allowances it investigates. (0:07:50) •    Reverse causality relating to complex instruments and mutual funds, and the mechanisms that could potentially harm investors in funds using complex instruments. (0:12:37) •    How the performance of funds was evaluated in the paper and how the usage of complex instruments evolved throughout the sample. (0:18:12) •    How complex instrument allowance is related to fund performance and risk. (0:23:06) •    The asymmetry of return patterns in up and down markets. (0:26:11) •    Paul's investment advice, in the context of the paper's findings. (0:33:05) •    Why complex products are growing despite their poor performance and how research can reach the market. (0:37:05) •    A quick recap of episode 39 with Rob Carrick. (0:40:48) •    Our brief review of Losing the Signal: The Spectacular Rise and Fall of BlackBerry by Sean Silcoff and Jacquie McNish. (0:41:49) •    Sean Silcoff breaks down the BlackBerry revolution and its subsequent demise. (0:44:53) •    Insight into the film adaptation of the book and what makes it such a compelling story. (1:04:51) •    What business leaders and investors can take away from the BlackBerry story. (1:08:09) •    Our after-show roundup! (1:15:12)     Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-253-complex-financial-instruments-with-prof-paul-calluzzo-plus-sean-silcoff-on-losing-the-signal-discussion-thread/23482   Book From Today's Episode: Losing The Signal: The Spectacular Rise and Fall of BlackBerry Kindle Edition — https://amzn.to/3OaA5Wa   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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Paul Calluzzo — https://smith.queensu.ca/faculty_and_research/faculty_list/calluzzo-paul.php Sean Silcoff on LinkedIn — https://www.linkedin.com/in/sean-silcoff-777b0912 Sean Silcoff on Twitter — https://twitter.com/SeanSilcoff 'Complex Instruments Have Increased Risk and Reduced Performance at Mutual Funds' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2938146

Understanding market efficiency is an important part of investment decision-making. It can help investors to identify the most appropriate investment strategies and develop realistic expectations for their returns. In this episode of the Rational Reminder Podcast, we sit down with Professor Burton Malkiel, the renowned economist, and author of the classic investing book A Random Walk Down Wall Street. Professor Malkiel is a distinguished figure in the world of economics and academia. He holds the prestigious title of Chemical Bank Chairman's Professor of Economics Emeritus and Senior Economist at Princeton, where he has made significant contributions to the field over the years. In our conversation, we discuss Professor Malkiel's views on the stock market, the efficient market hypothesis, how behavioural finance relates to investing, and why index funds should be at the core of every portfolio. Throughout the episode, Professor Malkiel shares his insights on a wide range of topics related to personal finance and investing, including the benefits of index funds, the dangers of active stock picking, the impact of fees and taxes on investment returns, factor investing, and expensive asset classes. He also discusses research on socially responsible investing and how investors can incorporate ethical considerations into their portfolios without sacrificing performance. In this episode, listeners will gain a better understanding of the vital principles of investing and how to apply them to achieve their financial goals. Whether you're a novice investor or an experienced pro, this episode offers valuable insights and advice from one of the most respected economists in the field, Professor Malkiel. Key Points From This Episode: Professor Malkiel explains the efficient market hypothesis and what the term "efficient market" means. (0:03:42) What the media tends to get wrong about the concept of market efficiency and the mathematical theory behind a random walk market. (0:07:04) We discuss investing in index funds rather than actively managed strategies. (0:09:44) How his book, Random Walk, was received by professionals and academics in the industry (0:13:08) Hear about the inspiration behind the concept covered in his book, and how his investment advice has changed over the last 50 years. (0:19:18) Why index funds have become widely accepted, and the difference between investing and speculating. (0:23:38) He unpacks why past market bubbles are vital for managers to understand and shares some wise words for those who want to participate in market speculation investing. (0:28:21) How the existence and persistence of bubbles throughout history relate to markets being efficient. (0:32:10)     Find out how the multiple, non-diversifiable risks in today's financial markets impact the advice in his book, and learn about factor investing. (0:35:42) He shares advice and insights for people looking to invest in cheaper funds and his perspective on trending investment strategies. (0:37:55) Learn how the general findings from behavioural finance influence his advice on investing in index funds. (0:41:33) We explore the value of risk parity strategies and the problem with backtests, and he shares his view on expensive asset classes. (0:44:09) What impact super-low bond yields had on the return of bonds, and whether you should focus on the value or yield. (0:54:16) The importance of saving as opposed to an optimal investment strategy to investor outcomes. (0:57:56) Insights into investing according to your desired outcomes and whether Professor Malkiel thinks it is better to rent or own a home. (1:03:55) We discuss inflation and possible future trends and the role of financial planners and investment advisors. (1:10:29) Hear his concerns regarding the growth of index fund assets. (1:14:52) Details about his book writing journey and his definition of success. (1:18:46)   Links From Today's Episode: Burt Malkiel — https://jrc.princeton.edu/people/burton-g-malkiel Wealthfront — https://www.wealthfront.com/ Theravance Biopharma — https://www.theravance.com/ Genmab A/S — https://www.genmab.com/ Rebalance IRA — https://www.rebalance360.com/ A Random Walk Down Wall Street: The Best Investment Guide That Money Can Buy — https://amzn.to/3BgepQz Princeton University — https://www.princeton.edu/ The Yale School of Management — https://som.yale.edu/ Vanguard — https://investor.vanguard.com/corporate-portal/ Trillions — https://www.amazon.com/Trillions-Renegades-Invented-Changed-Finance/dp/ 0593087682 S&P Dow Jones Indices — https://www.spglobal.com/spdji/en/ S&P Dow Jones Indices SPIVA — https://www.spglobal.com/spdji/en/research-insights/spiva/ 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 YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.ca
 Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on Twitter — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on Twitter — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

We all have different levels of risk tolerance. But how is that risk measured for complex investment strategies like covered calls? And how can you be sure it's an accurate reflection of reality? For the first portion of today's episode, we provide a detailed breakdown of everything you need to know about covered calls and why there is no perfect model for assessing risk-adjusted returns. We examine how incorrect measures of risk can make covered calls seem more attractive, what investors need to know about covered calls, and the fees, costs, and taxes you should be considering with these types of strategies. Next, we are joined by lifelong friends and colleagues Jonathan Hollow and Robin Powell to discuss their new book How to Fund the Life You Want: What everyone needs to know about savings, pensions and investments. They describe how their shared passion for financial education motivated them to write their book, before explaining how readers can best use the accompanying workbook to identify and reach their financial goals. Robin and Jonathan then go on to share their advice on day-to-day money management, finding a trustworthy advisor, and why it's never too early to teach your child about money. Tune in for a detailed breakdown of covered calls and how to make informed decisions about your investments and finances!   Key Points From This Episode: An introduction to the concept of covered calls. (0:02:41) The definition of covered calls, how risk can be measured incorrectly to make covered call strategies look more attractive, and why risk can never be destroyed. (0:04:22) A breakdown of the assets involved in covered calls and why their yields can be misleading. (0:07:00) Why there is no perfect model for assessing risk-adjusted returns and what can be learned from looking at investors through a behavioural lens. (0:16:19) An overview of why fees, costs, and taxes are major considerations for these types of strategies. (0:20:15) Introducing Robin Powell, Jonathan Hollow and their new book How to Fund the Life You Want. (0:25:08) Jonathan and Robin's long friendship, their shared interest in financial education, why they saw a need for their book, and how readers can get the most out of their workbook. (0:30:45) Insight into the six rules that Robin and Jonathan outline in their book and the eight keywords that they set up for managing money day to day. (0:35:07) Advice on how to keep up with finance news, including what you should pay attention to and what you can ignore. (0:40:37)  The importance of a day-to-day savings habit and suggestions on what kids should be taught about money. (0:43:20) Advice on how to find a first-rate advisor based on your needs and what questions you need to be asking of them. (0:49:54) How your financial advisor should act as your financial bodyguard and complement your weaknesses. (0:56:02) Ben and Cameron share news about their next podcast appearances, Rational Reminder education courses for financial advisors, and upcoming meetups. (0:57:43) Learn about the webinars that Ben and Cameron have been hosting and how you can sign up. (01:03:00)     Links From Today's Episode:   Robin Powell on LinkedIn — https://www.linkedin.com/in/robinpowell/ Jonathan Hollow on LinkedIn — https://www.linkedin.com/in/jonathanhollow/ How to Fund the Life You Want: What everyone needs to know about savings, pensions and investments — https://www.amazon.co.uk/dp/1399404601/ Covered Calls — https://www.investopedia.com/terms/c/coveredcall.asp Episode 27: Robin Powell: Evidence Based Investing: Changing the Minds of Advisors and Investors — https://rationalreminder.ca/podcast/27 Patrick Boyle on YouTube — https://www.youtube.com/c/PatrickBoyleOnFinance Sharpe Ratio — https://www.investopedia.com/terms/s/sharperatio.asp Sortino Ratio — https://www.investopedia.com/terms/s/sortinoratio.asp S&P 500 — https://www.spglobal.com/spdji/en/indices/equity/sp-500/#overview Episode 167: Prof. Hersh Shefrin: Fear, Hope, and the Psychology of Investing — https://rationalreminder.ca/podcast/167 'Behavioral Aspects of the Design and Marketing of Financial Products' — https://www.jstor.org/stable/3665864 Episode 171: Prof. Campbell R. Harvey: The Past and Future of Finance — https://rationalreminder.ca/podcast/171 'Portfolio Performance Manipulation and Manipulation-Proof Performance Measures' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=302815 Adviser 2.0 — https://www.advicereinvented.com/ Sensible Investing — https://sensibleinvesting.tv/ Financial Times — https://www.ft.com/ Rob Carrick — https://www.theglobeandmail.com/authors/rob-carrick/ The Globe and Mail — https://www.theglobeandmail.com/ The Money and Meaning Show — https://podcasts.apple.com/us/podcast/the-money-and-meaning-show/id1449894787 The Most Hated F Word — https://themosthatedfword.com/ New Self-Regulatory Organization of Canada — https://www.newselfregulatoryorganizationofcanada.ca/ FP Canada — https://www.fpcanada.ca/ Rational Reminder Continuing Education — learn.rationalreminder.ca PWL Capital — https://www.pwlcapital.com/ PWL Capital on YouTube — https://www.youtube.com/c/Pwlcapital-Montreal/videos IAFP Symposium — https://iafpsymposium.ca Burt Malkiel — https://jrc.princeton.edu/people/burton-g-malkiel David Blanchett — https://www.davidmblanchett.com/ Meir Statman — https://www.scu.edu/business/finance/faculty/statman/ Nick Maggiulli — https://www.linkedin.com/in/nicholasmaggiulli/ Jill Schlesinger — https://www.jillonmoney.com/ 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 YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.ca Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/  Benjamin on Twitter — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on Twitter — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Navigating the world of finance and investing is undeniably complicated, sometimes unnecessarily so. And all too often the people who end up making the most costly financial mistakes are those who can least afford to do so. But what exactly needs to change in order for more people to make wise and well-informed financial decisions? And how do we go about implementing those changes? Joining us today to help us unpack this topic and the many decisions involved in the world of investing is John Y. Campbell, a British-American economist, professor of economics at Harvard, and founding partner at Arrowstreet Capital, a systematic asset management firm based in Boston. John has published over a hundred of articles on a range of topics including fixed income, equality valuation, portfolio choices, and household finance, all of which we explore in today's expansive conversation. We kick things off by discussing utility theory, why it's so important to the study of finance, and what it can teach us about risk aversion, before delving into portfolio structure, asset allocation, and hedging. John also expands on the study of household finance, the mistakes that households typically make, why household behaviour tends to differ from theoretical predictions, and how to bring theory and behaviour into alignment. We wrap things up by discussing how financial literacy, education, and regulation can improve outcomes for households before hearing John's advice on selecting an optimal mortgage contract along with an overview of the type of risk that mortgage contracts expose you to. Today's episode is jam-packed with information and insights from a profoundly knowledgeable figure in academia.   Key Points From This Episode:   •    An overview of asset pricing theory; unpacking the utility function in finance, what it teaches us about being risk averse, and how it is used to determine the value we place on any amount of money. (0:04:01) •    The implications of using the Capital Asset Pricing Model (CAPM) for portfolio choice. (0:13:58) •    The difference between arbitrage pricing theory and the Intertemporal Capital Asset Pricing Model (ICAPM). (0:18:15) •    How predictability in stock returns affects portfolio advice for long-term investors and why John prefers the cyclically adjusted price-to-earnings (CAPE) ratio. (0:23:40) •    Why a long-term inflation index bond is the ideal risk-free asset for a long-term investor, and how portfolio advice, concerning bonds, changes when inflation index bonds are not available. (0:28:32) •    The impact that labour income should have on optimal portfolio choice and the relationship between human capital and financial assets as you age. (0:35:31) •    Learn about John's 2004 paper entitled 'Bad Beta, Good Beta' and how intertemporal asset pricing explains differences in returns between value and growth stocks. (0:38:33) •    The benefits and drawbacks of value investing: why historically they do well on average, but extremely poorly over certain periods. (0:41:12) •    A breakdown of stochastic volatility and how it affects portfolio choice for long-term investors. (0:47:16) •    How long-term equity investors should approach foreign currency hedging in their portfolios, and how fixed-income investors should deal with foreign currency exposure. (0:50:07) •    The study of household finance, what it aims to answer, and the major challenges in this area of study. (0:53:54) •    An overview of the mistakes that households typically make, how costly they can be, and why household behaviour tends to differ from theoretical predictions. (0:59:57) •    Suggestions on how household behaviour and theoretical predictions can be brought into alignment and the methods that have the most potential to improve outcomes for households. (01:04:47) •    What households should take into account when selecting an optimal mortgage contract and the different types of risk that mortgage contracts expose people to.[01:10:18] •    How John's definition of success has shifted over the years, the joy of academia, and why he is especially grateful for the opportunity to connect with students on their educational journey. (01:16:04)       Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-250-prof-john-y-campbell-financial-decisions-for-long-term-investors-discussion-thread/23202   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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore John Y. Campbell — https://scholar.harvard.edu/campbell/home 'Who Should Buy Long-Term Bonds' — https://www.nber.org/system/files/working_papers/w6801/w6801.pdf 'Inflation Bets or Deflation Hedges? The Changing Risks of Nominal Bonds' — https://scholar.harvard.edu/files/campbell/files/campbellsunderamviceira_20160523.pdf 'Growth or Glamour? Fundamentals and Systematic Risk in Stock Returns' — https://scholar.harvard.edu/sites/scholar.harvard.edu/files/campbell/files/gorg20090319_copyedited.pdf 'Bad Beta, Good Beta' — https://scholar.harvard.edu/sites/scholar.harvard.edu/files/campbell/files/bbgb_2004_nberw9509.pdf 'An Intertemporal CAPM with Stochastic Volatility' — https://scholar.harvard.edu/sites/scholar.harvard.edu/files/campbell/files/cgpt_volatilityrisk20170123final.pdf 'Global Currency Hedging' — https://scholar.harvard.edu/sites/scholar.harvard.edu/files/campbell/files/globalcurrencyhedging_20090128_manuscript.pdf 'Biases in long-horizon predictive regressions' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X21004013 'What Drives Booms and Busts in Value?' — https://scholar.harvard.edu/sites/scholar.harvard.edu/files/campbell/files/cgp_valueboomsbusts_20230311.pdf 'Household Finance' — https://scholar.harvard.edu/sites/scholar.harvard.edu/files/campbell/files/householdfinance_jof_2006.pdf 'The Cross-Section of Household Preferences' — https://scholar.harvard.edu/sites/scholar.harvard.edu/files/campbell/files/calvetcampbellgomessodini_20221027.pdf 'Restoring Rational Choice: The Challenge of Consumer Financial Regulation' — https://scholar.harvard.edu/sites/scholar.harvard.edu/files/campbell/files/elylecture_march2016.pdf 'Down or Out: Assessing the Welfare Costs of Household Investment Mistakes' — https://www.journals.uchicago.edu/doi/abs/10.1086/524204 'A Model of Mortgage Default' — https://scholar.harvard.edu/sites/scholar.harvard.edu/files/campbell/files/mortdefault13022014.pdf 'Household Risk Management and Optimal Mortgage Choice' — https://scholar.harvard.edu/campbell/publications/household-risk-management-and-optimal-mortgage-choice 'Predicting the Equity Premium Out of Sample: Can Anything Beat the Historical Average?' — https://www.nber.org/papers/w11468 'An Asset Allocation Puzzle' — https://www.nber.org/papers/w4857

Our focus for this episode is the real utility of financial advisors, and Ben shares a host of research and findings about the supposed and actual value that advisors can offer investors. This segment continues our exploration of investment basics, a fundamental theme for this show and our work at PWL Capital. One of the biggest and clearest lessons that becomes apparent through this discussion is the need for financial literacy independent of advice and so-called expertise from the outside. With that said, we do find time to share some of the positives investors can accrue from dealing with a trustworthy advisor and the conditions necessary for this. Later in the episode, our colleague Lukas Fleck joins us to share his review of The Obstacle Is the Way by Ryan Holiday and some of his own reading habits and tips. We finish the episode with lighter content about hot sauces, TV shows, and Ben's latest home improvement.   Key Points From This Episode:   •    Introducing today's question about the usefulness of financial advisors. (0:03:35) •    Common financial mistakes made by households. (0:11:13) •    Some of the research and findings grounding today's discussion. (0:18:13) •    Investing and self-control; what we can learn from data about smokers. (0:22:49) •    Looking at some of the potential benefits of hiring an advisor for investors. (0:28:40) •    A quick review of Episode 43 with Dave Butler from 2019. (0:34:07) •    Today's book review of The Obstacle Is the Way, with Lukas Fleck, and some of the biggest takeaways. (0:36:43) •    A look at Lukas' reading habits, favourite recent books, and his increased focus on getting through books. (0:44:59) •    Advice for starting a book club and Lukas' reading hacks. (0:50:49) •    The after-show; Ben tells us about his basketball hoop, last week's episode of Succession, and the hot sauce debate. (0:54:44) •    Upcoming events, audience reviews, and future guests on the podcast. (0:58:31)     Ad mentioned by Ben: Video: https://www.reddit.com/user/AMF_Quebec/comments/11rzoc9/les_risques_de_fraude_avec_les_cryptos_sont_bien/?utm_source=share&utm_medium=ios_app&utm_name=iossmf&utm_content=1&utm_term=15 Text: https://lautorite.qc.ca/en/general-public/investments/crypto?utm_campaign=crypto-phase2-1017340&utm_content=image-amf_crypto2023_1x1_6sec_02_fr-fr&utm_medium=social&utm_source=reddit   Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-249-what-are-financial-advisors-measurably-useful-for-discussion-thread/23120   Books From Today's Episode: The Obstacle Is the Way: The Timeless Art of Turning Trials into Triumph — https://amzn.to/3MXh1dl The Behavior Gap: Simple Ways to Stop Doing Dumb Things with Money — https://amzn.to/3UM8KLb Deep Work: Rules for Focused Success in a Distracted World — https://amzn.to/3AuSXqZ Making Numbers Count: The Art and Science of Communicating Numbers — https://amzn.to/41HXnWK   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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Lukas Fleck — https://www.pwlcapital.com/profile/lukas-fleck/ 'Restoring Rational Choice: The Challenge of Consumer Financial Regulation' — https://www.aeaweb.org/articles?id=10.1257/aer.p20161127 'Financial literacy and financial resilience: Evidence from around the world' — https://onlinelibrary.wiley.com/doi/abs/10.1111/fima.12283 'Strategic price complexity in retail financial markets' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X08002092 'Shrouded Attributes, Consumer Myopia, and Information Suppression in Competitive Markets' — https://academic.oup.com/qje/article-abstract/121/2/505/1884013?redirectedFrom=fulltext 'The Role of Time Preferences and Exponential-Growth Bias in Retirement Savings' — https://www.nber.org/papers/w21482 'Contract Design and Self-Control: Theory and Evidence' — https://www.jstor.org/stable/25098689 'Restoring Rational Choice: The Challenge of Consumer Financial Regulation' — https://www.aeaweb.org/articles?id=10.1257/aer.p20161127 'Why Does the Law of One Price Fail? An Experiment on Index Mutual Funds' — https://dash.harvard.edu/bitstream/handle/1/4686775/Laibson_OnePriceFail.pdf 'Failure to refinance' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X16301507 'Down or Out: Assessing the Welfare Costs of Household Investment Mistakes' — https://www.jstor.org/stable/10.1086/524204 'Financial literacy and stock market participation' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X11000717 'Attention Induced Trading and Returns: Evidence from Robinhood Users' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3715077 'Excessive Extrapolation and the Allocation of 401(k) Accounts to Company Stock' — https://www.jstor.org/stable/2697737 '$100 Bills on the Sidewalk: Suboptimal Investment in 401(k) Plans' — https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3158583/ 'Save More Tomorrow: Using Behavioral Economics to Increase Employee Saving' — https://www.journals.uchicago.edu/doi/10.1086/380085 'Annuitization Puzzles' — https://www.aeaweb.org/articles?id=10.1257/jep.25.4.143 'The Market for Financial Advice: An Audit Study' — https://www.nber.org/papers/w17929 'Understanding the Advice of Commissions-Motivated Agents: Evidence from the Indian Life Insurance Market' — https://www.hbs.edu/ris/Publication%20Files/12-055_13c23c02-e57f-4aea-9630-316aa4b772ce.pdf 'Fiduciary Duty and the Market for Financial Advice' — https://www.nber.org/papers/w25861 'Conflicting Interests and the Effect of Fiduciary Duty: Evidence from Variable Annuities' — https://academic.oup.com/rfs/article-abstract/35/12/5334/6674521 'How (not) to pay for advice: A framework for consumer financial protection' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X12000074 'Financial Advice and Bank Profits' — https://academic.oup.com/rfs/article-abstract/31/11/4447/4985213?redirectedFrom=fulltext 'The Misguided Beliefs of Financial Advisors' — https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.12995 'Retail Financial Advice: Does One Size Fit All?' — https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.12514 'The Ulysses option: Smoking and delegation in individual investor decisions' — https://www.sciencedirect.com/science/article/abs/pii/S1544612321003962 'Smoking hot portfolios? Trading behavior, investment biases, and self-control failure' — https://www.sciencedirect.com/science/article/abs/pii/S0927539821000463 'Exponential Growth Bias and Household Finance' — https://www.jstor.org/stable/27735191 'Money Doctors' — https://scholar.harvard.edu/files/shleifer/files/moneydoctors_journaloffinance.pdf 'The Costs and Benefits of Financial Advice' — https://www.hbs.edu/faculty/Shared%20Documents/conferences/2013-household-behavior-risky-asset-mkts/Costs-and-Benefits-of-Financial-Advice_Foerster-Linnainmaa-Melzer-Previtero.pdf 'Time is money: Rational life cycle inertia and the delegation of investment management' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X16300472 'Passing the buck: Delegating choices to others to avoid responsibility and blame' — https://www.sciencedirect.com/science/article/abs/pii/S0749597815300108#:~:text=One%20simple%20way%20to%20avoid,outcome%20on%20the%20other%20person. 'Expert financial advice neurobiologically "Offloads" financial decision-making under risk' — https://pubmed.ncbi.nlm.nih.gov/19308261/ 'Impact of inflated perceptions of financial literacy on financial decision making' — https://www.sciencedirect.com/science/article/abs/pii/S0167487020300672 'Precautionary savings, retirement planning and misperceptions of financial literacy' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X17301551 'Behavioral and wealth considerations for seeking professional financial planning help' — https://fpcanadaresearchfoundation.ca/media/khyfoso3/financial-services-reveiw-publication.pdf 'Financial literacy and the demand for financial advice' — https://www.sciencedirect.com/science/article/abs/pii/S037842661400096X 'Does financial literacy affect the value of financial advice? A contingent valuation approach' — https://www.researchgate.net/publication/338669648_Does_financial_literacy_affect_the_value_of_financial_advice_A_contingent_valuation_approach 'How financial literacy shapes the demand for financial advice at older ages' — https://www.sciencedirect.com/science/article/pii/S2212828X21000220 'Depression Babies: Do Macroeconomic Experiences Affect Risk Taking?' — https://academic.oup.com/qje/article-abstract/126/1/373/1901343?redirectedFrom=fulltext '(Over)insuring Modest Risks' — https://www.jstor.org/stable/25760237 'The Mismatch Between Life Insurance Holdings and Financial Vulnerabilities: Evidence from the Health and Retirement Study' — https://www.aeaweb.org/articles?id=10.1257/000282803321455340 'Saving and Life Insurance Holdings at Boston University - A Unique Case Study' — https://www.jstor.org/stable/23877728 'Who is internationally diversified? Evidence from the 401(k) plans of 296 firms' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X16302483?via%3Dihub 'Is conflicted investment advice better than no advice?' —  https://www.sciencedirect.com/science/article/abs/pii/S0304405X20301537 'How Does Household Portfolio Diversification Vary with Financial Literacy and Financial Advice?' — https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.12231 'Financial Advice and Individual Investor Portfolio Performance' — https://www.jstor.org/stable/41493871 'Financial advisors: A case of babysitters?' — https://www.sciencedirect.com/science/article/abs/pii/S0378426611002548 'Professional financial advice, self-control and saving behavior' — https://onlinelibrary.wiley.com/doi/10.1111/ijcs.12480 'Do contracts influence comprehensive financial advice?' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1429807 'The Value of Financial Advice' — https://www.forbes.com/sites/wadepfau/2015/07/21/the-value-of-financial-advice/?sh=6b13feda1333

How the financial system works and how we interact with it has grown in complex ways and is a fascinating but nuanced topic. To guide us through the history of the economy is Professor William Goetzmann, who is an expert in finance, economics and art history, and whose research has been featured in top publications. As a highly respected scholar, he's authored numerous books on topics such as real estate and behavioural finance. It is fair to say Professor Goetzmann's work has left a significant impact on both academia and the world. In our conversation, we dive into financial market history and explore more than just broad market returns. We unpack the fascinating phenomenon of economic bubbles and booms, and how they have evolved and shaped the financial system. He also shares crucial insights from the past and advice for investors looking to leverage the market. And to wrap things up, Professor Goetzmann shares his views on money after digging deep into its historical roots. Tune in to unlock the secrets of the past and gain valuable insights for the future as we journey through the fascinating world of economic history. Tune in now!   Key Points From This Episode:   •    Why is it important to collect and examine long-term historical returns data, and how useful the findings can be for today's market. (0:03:21) •    The furthest back in time that Professor William Goetzmann has looked at equity returns and how much of an issue survivorship bias is in long-term historical data. (0:05:44) •    Reasons for the United States market trends concerning equity risk premiums and his approach to forecasting long-term returns of both stocks and bonds. (0:11:02) •    Whether current discount rates are better for estimating future returns than long-term historical returns. (0:17:08) •    How the markets of today compare to the markets of the 1900s, and whether investor behaviour has changed. (0:18:42) •    Learn how global finance changed after the First World War and how likely a global financial meltdown is. (0:23:35) •    What to consider when investing internationally and whether Canadian investors should be biased towards their home country. (0:28:23) •    Hear Professor Goetzmann's definition of an asset price bubble and his approach to studying economic bubbles and booms. (0:32:44) •    Overview of the economic bubble and boom trends and crucial advice he has for investors regarding a market run-up. (0:36:18) •    An explanation for negative bubble behaviour and how well market crashes align with investor expectations. (0:41:46) •    The role of media in influencing investor behaviour, and whether long-term investors should ignore news from the financial media. (0:47:35) •    What Professor Goetzmann has learned from studying bubble dynamics, and his advice for investing in transformative technologies. (0:52:50) •    Professor Goetzmann's book Money Changes Everything, his definition of money, and if money pre-dates trusted authorities. (0:57:47) •    The role of money in finance and a brief outline of how finance played a role in the development of modern civilization. (1:02:13) •    Professor Goetzmann's definition of success. (1:06:08)       Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-248-prof-william-goetzmann-learning-from-financial-market-history-discussion-thread/23010 Book From Today's Episode: Money Changes Everything: How Finance Made Civilization Possible — https://amzn.to/3KqOYzX 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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Prof. William Goetzmann on Twitter — https://twitter.com/wgoetzmann Prof. William Goetzmann — https://som.yale.edu/faculty-research/faculty-directory/william-n-goetzmann 'History and the Equity Risk Premium' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=702341 'The present value relation over six centuries: The case of the Bazacle company' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X18302836?via%3Dihub 'A Century of Global Stock Markets' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=225683 'Will History Rhyme?' — https://jpm.pm-research.com/content/30/5/34 'New evidence on the first financial bubble' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X12002541 'Bubble Investing: Learning from History' — https://www.nber.org/papers/w21693#:~:text=History%20is%20important%20to%20the,sample%20size%20for%20inference%20small. 'Negative bubbles: What happens after a crash' — https://onlinelibrary.wiley.com/doi/abs/10.1111/eufm.12164 'Crash Beliefs From Investor Surveys — https://www.nber.org/papers/w22143 'Crash Narratives' — https://www.nber.org/papers/w30195

There's been a lot of interest in the topic of bank runs lately, and in today's episode, we take a look at the most relevant research to help us better understand why they happen and how they can be avoided. Our conversation unpacks the 2022 Nobel prize-winning work of Douglas Diamond and Philip Dybvig and examines the three primary risks that banks need to navigate to avoid a bank run related crisis. We discuss the immense value that banks provide and how they keep the economy moving, before reflecting on how their most valuable services are inexorably tied to the risk of bank runs. You'll also learn about the role of the media in triggering a bank run, and how the problems that arise with bank runs can be addressed through a combination of deposit insurance, bank regulation, and a diverse customer base — all of which are designed to keep depositors from panicking simultaneously. We also revisit a past conversation with Jonathan Clements, before catching up with him in real time to discuss his new book My Money Journey: How 30 People Found Financial Freedom - and You Can Too. Tune in for an in-depth look at bank runs, the value of writing your money story, and a timely reminder that when you're making a deposit, you're actually lending money to the bank.   Key Points From This Episode:   •    An introduction to the topic of bank runs including an overview of the Nobel prize-winning work done on the subject in 2022. (0:02:12) •    The three primary risks you need to manage as a bank in order to be a successful business. (0:07:28) •    Why liquidity, illiquidity, and duration risk can pose a problem, even for healthy banks. (0:12:47) •    How news stories can create unwarranted panic and cause a bank run, even if a bank isn't experiencing problems. (0:16:02) •    The multiple equilibria of banks as outlined in the Diamond and Dybvig paper. (0:16:31) •    How deposit insurance can function as a solution, at least in part, to bank runs. (0:19:34) •    What the Diamond and Dybvig paper teaches us about the Silicon Valley Bank (SVB) bank run. (0:21:35) •    The difference between households and banks, and the lessons households can learn from the narrative around bank runs. (0:22:59) •    A quick recap of our conversation with Jonathan Clements and a review of his new book My Money Journey: How 30 People Found Financial Freedom - and You Can Too. (0:27:16) •    We welcome Jonathan Clements back onto the show to discuss his new book and why he wrote it. (0:32:00) •    What readers can expect to learn from Jonathan's book, like the impact parents have on your financial beliefs, and what inspires people to reassess their finances. (0:34:31) •    The impact of early habits on our finances. (0:38:36) •    Jonathan's insights into the financial service industry, its complexity, and how our risk tolerance can shift over time. (0:40:19) •    Why regret in financial decision-making is virtually unavoidable and the value of writing your money story. (0:44:22) •    Past and upcoming meetups, feedback from our listeners, and a reminder of our 23 in 23 Reading Challenge. (0:47:42)       Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-247-bank-runs-plus-jonathan-clements-on-my-money-journey-episode-discussion/22878   Book From Today's Episode: My Money Journey: How 30 people found financial freedom - and you can too — https://amzn.to/439D5Hw   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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Jonathan Clements on Twitter — https://twitter.com/clementsmoney Jonathan Clements on LinkedIn —https://www.linkedin.com/in/jonathanclements Jonathan Clements on Facebook — https://www.facebook.com/ClementsMoney Jonathan Clements — http://HumbleDollar.com Episode 55: Jonathan Clements — https://rationalreminder.ca/podcast/55 'Bank Runs, Deposit Insurance, and Liquidity' — https://www.journals.uchicago.edu/doi/10.1086/261155 'Liquidity Risk, Liquidity Creation, and Financial Fragility: A Theory of Banking' — https://www.jstor.org/stable/10.1086/319552 'Why didn't Canada have a banking crisis in 2008 (or in 1930, or 1907, or . . .)' — https://www.jstor.org/stable/43910017 'Long-Horizon Losses in Stocks, Bonds, and Bills: Evidence from a Broad Sample of Developed Markets' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3964908

Human beings are undeniably complex, and what motivates us can often be a mystery, even to ourselves. So, how do we go about gathering and analyzing the data that will help us answer the most fundamental questions about our lives and our purpose? The answers may lie in an unexpectedly rich source of knowledge, our regrets. While regret is likely to have a decidedly negative connotation for most of us, it is also extremely powerful and can teach us a great deal about ourselves and what we value. It is an emotion that is present in all of us, and social scientists (like anthropologists and sociologists) have been fascinated by the subject for decades. Today on the show, we are joined by one such expert, Daniel Pink, author of the book The Power of Regret: How Looking Backward Moves Us Forward. In our conversation, Daniel shares details about the research he conducted for his book, how he determined the four main categories of regret, and what we can learn from our regrets by confronting them head-on. We also discuss Daniel's 2011 New York Times Bestselling title, Drive: The Surprising Truth About What Motivates Us, and what he thinks about working from home in light of the COVID-19 pandemic. Daniel is an exceptional storyteller and is highly knowledgeable on the subjects of regret, motivation, and the important role they play in our lives. To learn more about the many facets of regret and how it can help you thrive, be sure to tune in today!   Key Points From This Episode:   ●      Understanding regret as an emotion, why it differs from disappointment, and how regret can help us make better decisions. (0:03:00) ●      The four main types of regret (foundation, boldness, moral, and connections) and the methodology Daniel used to determine them. (0:07:30) ●      The role that outcomes play when it comes to boldness regrets. (0:13:09) ●      Why Daniel believes connection regret is so common, and what regret reveals about our values. (0:14:13) ●      The World Regret Survey that Daniel conducted as a systematic survey of regret, and his findings that regrets of inaction tend to stay with us much longer. (0:17:14) ●      What people can learn from past financial decisions that they regret and the challenge of addressing foundation regrets. (0:20:42) ●      The surprising benefits of regrets and how to learn from them. (0:21:31) ●      How regret anticipation can be used to help people save for retirement. (0:22:46) ●      Daniel's system for addressing feelings of regret, why it's important to confront them rather than wallow in them, and the importance of being kind to yourself. (0:24:01) ●      The overwhelming amount of decisions we make in our lives, when to choose the best versus something that is good enough, and how to optimize future regret. (0:27:56) ●      An overview of the many complex factors that motivate people, intrinsic and external motivators, and how Daniel's research on regret affected his perspective on motivation. (0:31:16) ●      Daniel's thoughts on working from home when considering autonomy, mastery, purpose, and motivation. (0:37:17) ●      The motivational model that Daniel sets out in his book Drive and some of the common misconceptions he has observed in reporting on his book. (0:39:33) ●      Why people are purpose maximizers, not profit maximizers, and how this should impact the leadership of a company. (0:41:26) ●      Daniel's response to the question "How do you define success in your life?" and why he doesn't think about the word 'success' very much. (0:47:08)       Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-246-daniel-h-pink-how-to-use-regret-episode-discussion/22775   Books From Today's Episode: The Power of Regret — https://amzn.to/42HArID Drive: The Surprising Truth About What Motivates Us — https://amzn.to/40jDpl7 To Sell Is Human — https://amzn.to/3K9M2ci Free Agent Nation — https://amzn.to/40knovb   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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Daniel H. Pink on Twitter — https://twitter.com/danielpink Daniel H. Pink — https://www.danpink.com/

Goal-setting is essential for personal and professional growth, helping individuals clarify their priorities, stay focused, and achieve success. We are pleased to welcome guests Samantha Lamas and Danielle Labotka to help us unpack the topic of goal-setting and how it relates to finance. Samantha Lamas is a Senior Behavioural Researcher at Morningstar and a recipient of the Montgomery-Warschauer Award for her research in financial planning. Her work centres on investor engagement and the factors that influence an individual's decisions when it comes to investing and managing their finances. As a Behavioral Scientist at Morningstar, Danielle Labotka examines the impact of various cognitive and linguistic factors on investors' financial decisions. Her research involves studying investors' behaviours, preferences, and attitudes in both everyday and financial planning situations. In our conversation with Samantha and Danielle, we gain insights into financial behaviour and decision-making, the biggest barriers to goal-setting, what deeper goals are, and how to focus on them. Then, we speak to Mark McGrath, who is licensed in insurance, holds several professional designations, including a Chartered Investment Manager and a Certified Financial Planner (CFP), and has more than a decade of experience in the industry. Mark tells us the emotional story about his dad, what motivated him to share his experience, and why you need to start thinking about retirement now. Finally, we review a past episode with Dennis Moseley Williams, a book from Will Storr, and go through feedback from the Rational Reminder community. Tune in now! Content Warning: Some of the discussion in this episode is about suicide. If you or someone you know is struggling with thoughts about self-harm, help is available. In Canada: 1.833.456.4566 or at https://suicideprevention.ca/resources/   Key Points From This Episode:   •    How we became acquainted with the Morningstar team and background about our guests. (0:02:29) •    An outline of the common obstacles faced in identifying the correct goals, and how it impacts financial advisors. (0:06:08) •    Danielle explains the approach used to analyze qualitative data and how the results compared to the Rational Reminder findings. (0:09:07) •    How the goals identified changed as respondents progressed through the survey, and insights gained from the process. (0:11:23) •    The main takeaway from the analysis of how people should approach goal-setting and how financial advisors can leverage the research findings. (0:17:53) •    Outline of current gaps and what is the next step for behavioural research. (0:20:59) •    Find out what compelled Mark to share the tweet about his dad and he takes us through the story. (0:23:00) •    How the experience regarding his dad has influenced his work as a financial advisor. (0:40:50) •    Mark shares how the experience has impacted his approach to life. (0:42:25) •    A final takeaway message that Mark has for listeners. (0:44:23) •    Highlights and key takeaways from a past episode with Dennis Moseley Williams. (0:45:52) •    This week's book review of The Status Game, and why it is a must-read. (0:48:44) •    Research findings concerning macro socio-economic status and work ethic. (0:54:03) •    We discuss interesting news and events, riskless assets, the advantages of Twitter, and the latest reviews for the show. (0:57:05)     Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-245-deeper-goals-and-retiring-with-purpose-discussion-thread/22660 Book From Today's Episode: The Status Game: On Human Life and How to Play It — https://amzn.to/40vVLix 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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Samantha Lamas on Twitter — https://twitter.com/SamanthaLamas4 Mark McGrath on Twitter — https://twitter.com/MarkMcGrathCFP Samantha Lamas on LinkedIn — https://www.linkedin.com/in/slamas/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ 'Mining for Goals' — http://static.fmgsuite.com/media/documents/8b5abbe8-0bf5-4321-9a4a-e04a82a11597.pdf

When it comes to the world of investing, there are many options available to consumers. The range of financial products available can be overwhelming and confusing. Additionally, investing is not only about the rate of return but also about what you are investing for and why. To help us unpack this complicated subject is Charles Ellis, a highly respected investment consultant and founder of Greenwich Associates, a strategy firm focused on financial institutions. He is also a famous author and has written several books on the topic of finance and investment, such as Winning the Loser's Game which provides readers with insights into making the best financial decisions in an increasingly unpredictable market. In our conversation, we discuss why indexing is the better investment option, how the investment space has changed over time, tailoring your investment decisions to suit your needs and desires, and why looking at the bigger financial picture is essential. We also delve into why investors can be their own worst enemies, what advisors and investors should avoid, the theme of his book Inside Vanguard, various investment strategies, and much more. Tune in and hear insights on indexing, wise investing, and how to win the ultimate game from industry legend Charles Ellis!   Key Points From This Episode:   •    Charles explains what he means by 'a loser's game' and provides examples. (0:03:51) •    How the perception of active management has changed since publishing Winning the Loser's Game. (0:08:00) •    He unpacks how the market and market competition has changed since 1975. (0:10:33) •    Whether the sentiment towards active management has become too negative. (0:17:24) •    Discover why Charles thinks indexing is the best and preferred investment option. (0:19:22) •    His opinion on low-cost systematic strategies that seek higher expected returns in the market by owning riskier stocks. (0:24:55) •    Why investors and advisors should avoid trying to time or beat the market. (0:27:19) •    The value and importance of a well-defined investment policy statement. (0:33:34) •    Find out how investors can protect themselves from themselves. (0:34:58) •    An underappreciated approach that investors can take to be more successful. (0:36:26) •    Hear whether fee differentials between index and active strategies are understood well. (0:37:17) •    Charles shares how his mindset has changed over the course of his career. (0:41:47) •    Find out if institutions and endowments respect low-cost index investing. (0:42:42) •    What he thinks about bringing exotic asset classes to retail investors. (0:44:45) •    Reasons why investment management should be considered a full-time profession. (0:46:50) •    The biggest opportunities he sees in future for investment management. (0:49:20) •    Hear about the difference between price discovery and value discovery. (0:50:09) •    Discover why Vanguard has been so successful as a company. (0:53:27) •    The theme of his book, Inside Vanguard, and if it relates to other businesses. (0:58:17) •    Lessons he has learned regarding personal motivation and productivity. (1:00:28) •    Charles tells us his definition of success. (1:03:35) •    An outtake from the episode: the role of luck. (1:05:21)     Participate in our 23 in 23 Reading Challenge: 23 in 23 Reading Challenge — https://rationalreminder.ca/23in23 23 in 23 Reading Challenge on Beanstalk — https://pwlcapital.beanstack.org/   Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-244-the-losers-game-episode-discussion/22558   Books From Today's Episode: Winning the Loser's Game: Timeless Strategies for Successful Investing — https://amzn.to/3FrNKmt Inside Vanguard — https://amzn.to/3TlwrcG What It Takes: Seven Secrets of Success from the World's Greatest Professional Firms — https://amzn.to/3Thgm7z Capital: The Story of Long-Term Investment Excellence — https://amzn.to/3FpiHb5 Figuring It Out: Sixty Years of Answering Investors' Most Important Questions — https://amzn.to/3LknZZ8   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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore

Debt can play an essential role in financial planning in several ways, such as financing large purchases, building credit, managing cash flow, and leveraging investments. However, it's important to remember that taking on too much debt can also have negative consequences that could impact your financial future. Therefore, it's vital to carefully consider your options and ensure that any debt you take on is manageable and aligns with your overall financial goals. In this episode, we talk about the essential aspects of debt and the role of debt in financial planning, and we unpack the two major forms of debt. Learn about debt in financial planning, consumption smoothing, the mindset and psychology behind debt, the risk that comes with debt, how credit cards impact how people interact with their money, integrated financial planning, and important aspects of mortgages. We also review a past episode with guest Dan Solin and the book, The Five Most Important Questions, which provides readers with a tool for self-assessment and transformation concerning productivity in the workplace.   Key Points From This Episode:   •   The role of debt in financial planning and the distinction between good and bad debt. (0:08:16) •   A brief overview of mortgages, credit cards, and their associated risks. (0:11:31) •   Consequences of borrowing money at a high-interest rate, and how financial literacy impacts effective debt management. (0:13:20) •   The psychological aspects related to debt and consumer spending. (0:16:10) •   Outlining the psychological interactions of established debt on mental well-being. (0:18:15) •   Credit cards, what they offer, and their psychological effect on paying. (0:22:10) •   Costs associated with not using a credit card. (0:28:45) •   Why mortgage debt is considered good debt for the borrower and the different facets of mortgages to consider. (0:32:48) •   The difference between fixed and adjustable mortgage rates and which is better. (0:37:25) •   Highlights and key takeaways from a past episode with Dan Solin. (0:46:06) •   A review of the book, The Five Most Important Questions and why we recommend it. (0:47:47) •   How the questions from the book relate to household decision-making. (0:51:18) •   A testament to Dan Wheeler and his contribution to the field of finance. (0:52:55) •   Recent interviews with Ben, upcoming guests, other interesting financial content, and our book recommendations. (0:56:33) •   A 23 in 23 book challenge update, feedback on the show, and upcoming meetups. (01:01:35)       Participate in our 23 in 23 Reading Challenge: 23 in 23 Reading Challenge — https://rationalreminder.ca/23in23 23 in 23 Reading Challenge on Beanstalk — https://pwlcapital.beanstack.org/   Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-243-the-role-of-debt-in-financial-planning-discussion-thread/22433   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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore   Extra References: The role of debt 'Life Cycle, Individual Thrift, and the Wealth of Nations' — https://www.jstor.org/stable/1813352 'Diversification Across Time' — https://jpm.pm-research.com/content/39/2/73 'Debt literacy, financial experiences, and over indebtedness' — https://www.researchgate.net/publication/282436829_Debt_Literacy_Financial_Experiences_and_Over_Indebtedness 'Restoring Rational Choice: The Challenge of Consumer Financial Regulation' — https://scholar.harvard.edu/files/campbell/files/elylecturejan182016.pdf 'Attitudes towards Debt and Debt Behavior' — https://onlinelibrary.wiley.com/doi/abs/10.1111/sjoe.12419 'Expenditure Cascades' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1690612 'Consumer debt and satisfaction in life' — https://www.researchgate.net/publication/341564180_Consumer_debt_and_satisfaction_in_life 'Good credit, bad credit: The differential role of the sources of debt in life satisfaction' — https://onlinelibrary.wiley.com/doi/full/10.1111/joca.12388 'Debt and Overindebtedness: Psychological Evidence and its Policy Implications' — https://spssi.onlinelibrary.wiley.com/doi/full/10.1111/sipr.12074 'Winning the Battle but Losing the War: The Psychology of Debt Management' — https://www.researchgate.net/publication/249644425_Winning_the_Battle_But_Losing_the_War_The_Psychology_of_Debt_Management 'Reducing debt improves psychological functioning and changes decision-making in the poor' —https://www.researchgate.net/publication/332472709_Reducing_debt_improves_psychological_functioning_and_changes_decision-making_in_the_poor   Credit cards 'The Effect of Payment Transparency on Consumption: Quasi-Experiments from the Field' — https://www.jstor.org/stable/40216497 'Always Leave Home Without It: A Further Investigation of the Credit-Card Effect on Willingness to Pay' — https://www.researchgate.net/publication/233496571_Always_Leave_Home_Without_It_A_Further_Investigation_of_the_Credit-Card_Effect_on_Willingness_to_Pay 'Present-Biased Preferences and Credit Card Borrowing' — https://www0.gsb.columbia.edu/mygsb/faculty/research/pubfiles/3531/AEJ_Meier_Sprenger.pdf 'How Credit Card Payments Increase Unhealthy Food Purchases: Visceral Regulation of Vices' — https://www.jstor.org/stable/10.1086/657331 'Distributional Effects of Payment Card Pricing and Merchant Cost Pass-through in the United States and Canada' — https://www.bankofcanada.ca/2021/02/staff-working-paper-2021-8/ 'Popular Personal Financial Advice versus the Professors' — https://www.nber.org/papers/w30395 'Buy Now, Pay Later Credit: User Characteristics and Effects on Spending Patterns' — https://www.nber.org/papers/w30508   Mortgages 'Report of the Household Finance Committee' — https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/HFCRA28D0415E2144A009112DD314ECF5C07.PDF 'Household Risk Management and Optimal Mortgage Choice' —https://www.jstor.org/stable/25053944 'Failure to refinance' — https://www.nber.org/papers/w20401 'A Model of Mortgage Default' — https://scholar.harvard.edu/files/campbell/files/mortdefault13022014.pdf

The intersection between economics and psychology makes the subject of personal finance complex. To help us elucidate this topic is personal finance reporter at the Globe and Mail and the author of the bestselling book "Money Like You Mean It, Personal Finance Tactics for the Real World.", Erica Alini. Her journey into finance journalism began when she started working for the Wall Street Journal immediately after the financial crisis of 2007/08. Since then, Erica has become an accomplished writer and journalist, having worked for many respected organizations. She is also the author of a best-selling book, Money Like You Mean It, which provides readers with a nuanced understanding of the economic forces that shape financial struggles and how to overcome them. In this conversation, we talk to Erica about the importance of knowing yourself and your debt, the money bucket system, and the definition of financial abuse. We also discuss the various types of debt traps people should avoid, the dangers of micropayments, and what to be aware of when looking for a mortgage, as well as advice for finding a reliable mortgage broker, the avalanche versus the snowball model, and much more. Tune in to discover how to take back control of your finances and avoid the burden of debt with personal finance expert, Erica Alini.   Key Points From This Episode:   •    Why Erica thinks Canadians have so much household debt. (0:02:24) •    Strategies that people can implement to avoid the debt trap. (0:04:58) •    Erica's opinion on budgeting as a tool to manage spending. (0:08:34) •    How the 'bucketing model' changes for a couple as opposed to an individual. (0:12:10) •    How couples with different incomes should share expenses. (0:14:17) •    Signs of an unhealthy financial relationship between partners. (0:17:06) •    The amount of money an emergency fund should have. (0:21:17) •    What consumers should know about the different debt products available. (0:24:08) •    Discover the downside of taking a mortgage with the lowest interest rate. (0:33:55) •    Whether or not an independent mortgage broker is better than a bank. (0:38:05) •    Important insights about credit scores. (0:39:51) •    Whether people should rent or buy property. (0:45:13) •    How the traditional sense of a good job with sufficient income has changed. (0:50:34) •    Erica's approach to explaining the risk of investing in stocks. (0:56:46) •    Insights about the math of a financial decision versus the psychology. (0:58:25) •    How Erica defines success in her life. (1:00:29)     Extra: Questions to ask a mortgage broker: 1.     What kind of penalty will you have to pay for breaking your contract? 2.     Is the cap on your lump-sum payments 10 percent or 20 percent of your mortgage balance? 3.     Will you be able to make lump-sum payments any time or just once a year? 4.     Can you double your payments? Participate in our 23 in 23 Reading Challenge: 23 in 23 Reading Challenge — https://rationalreminder.ca/23in23 23 in 23 Reading Challenge on Beanstalk — https://pwlcapital.beanstack.org/ Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-242-erica-alini-personal-finance-tactics-for-the-real-world-discussion-thread/22326 Book From Today's Episode: Money Like You Mean It — https://www.dundurn.com/books_/t22117/a9781459748675-money-like-you-mean-it 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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Erica Alini on Twitter — https://twitter.com/ealini

Today we are spending most of the episode going further into the basic concepts that ground good financial practices and the personal finance topics that are often taken for granted. The three main areas we unpack in this episode are the cost of living, savings capacity, and emergency funds, and though these can be viewed as basic ideas, there are always areas of the simplest variety that deserve more attention. Listeners can also expect to hear a little more about what our role as financial advisors constitutes on a daily basis, as we respond to an audience member's question about how to conceptualize the profession. We welcome Dr. Wendall Mascarenhas back to the show for a brief cameo in which he shares his reading habits and approach with us, which contrasts with some of the opinions often expressed by other guests, so make sure to stay tuned in for that. We also find time for a quick recap of an old episode we had with Rick Ferri and a book review of Rethink Lead Generation by Tom Shapiro.   Key Points From This Episode:   •    Discussing the cost of living and why an accurate picture of your expenses is so important. (0:04:08) •    Working out your saving capacity and when and how to save. (0:21:32) •    General advice for emergency funds and further considerations for households. (0:32:51) •    Recapping our episode with Rick Ferri on his index investing philosophy and the lasting impact of John Bogle. (0:40:21) •    This week's book review of Rethink Lead Generation by Tom Shapiro. (0:42:26) •    Dr. Wendall Mascarenhas talks about his reading habits and his prioritization of reading for pleasure. (0:49:23) •    A few favourite book recommendations from Dr. Wendall Mascarenhas. (0:58:12) •    Current debates around ChatGPT and the sources of its information. (1:06:18) •    Information about upcoming meetups for the Rational Reminder community. (1:09:38) •    Further explorations on our recent goals survey and the input we received from Morningstar. (1:11:00)     Participate in our 23 in 23 Reading Challenge: 23 in 23 Reading Challenge — https://rationalreminder.ca/23in23 23 in 23 Reading Challenge on Beanstalk — https://pwlcapital.beanstack.org/   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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Dr. Wendall Mascarenhas — https://www.fcos.ca/meet-dr-mascarenhas/ Teeth & Titanium Podcast — https://podcasts.apple.com/us/podcast/teeth-titanium/id1514989809 Extra References:   Savings capacity 'Popular Personal Financial Advice versus the Professors' — https://www.nber.org/papers/w30395 'The Life-Cycle Model Implies That Most Young People Should Not Save for Retirement' — https://www.aei.org/research-products/journal-publication/the-life-cycle-model-implies-that-most-young-people-should-not-save-for-retirement/ 'Exponential-Growth Bias and Lifecycle Consumption' — https://www.jstor.org/stable/43965317 'Save More Tomorrow™: Using Behavioral Economics to Increase Employee Saving' — https://www.jstor.org/stable/10.1086/380085 Emergency fund 'What Matters to Individual Investors? Evidence from the Horse's Mouth' — https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.12895 'Millionaires Speak: What Drives Their Personal Investment Decisions?' — https://www.nber.org/papers/w27969 'Emergency savings for low-income consumers' — https://www.irp.wisc.edu/publications/focus/pdfs/foc301c.pdf 'Emergency Saving and Household Hardship' — https://www.researchgate.net/publication/269468202_Emergency_Saving_and_Household_Hardship 'Savings Policy and Decisionmaking in Low-Income Households' — https://www.researchgate.net/publication/289069441_Savings_Policy_and_Decisionmaking_in_Low-Income_Households 'Insufficient Funds: Savings, Assets, Credit, and Banking Among Low-Income Households' — https://www.jstor.org/stable/10.7758/9781610445887 'Financially Fragile Households: Evidence and Implications' — https://www.nber.org/papers/w17072 'One in four Canadians are unable to cover an unexpected expense of $500' —https://www150.statcan.gc.ca/n1/daily-quotidien/230213/dq230213b-eng.htm 'Who Should Buy Long-Term Bonds?' — https://www.jstor.org/stable/2677900 'Mental accounting matters' — https://people.bath.ac.uk/mnsrf/Teaching%202011/Thaler-99.pdf 'The Bucket Approach for Retirement: A Suboptimal Behavioral Trick?' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3274499 'Should Households Establish Emergency Funds' —https://www.proquest.com/openview/042e8ea8f8e3986ec6c93e5cfca265c0/1?pq-origsite=gscholar&cbl=38873 'Is an All Cash Emergency Fund Strategy Appropriate for All Investors?' — https://www.financialplanningassociation.org/article/all-cash-emergency-fund-strategy-appropriate-all-investors 'Building emergency savings through employer-sponsored rainy-day savings accounts' — https://www.journals.uchicago.edu/doi/full/10.1086/708170 'Double Mental Discounting: When a Single Price Promotion Feels Twice as Nice' — https://journals.sagepub.com/doi/10.1509/jmr.15.0559 'The Role of Mental Accounting in Household Spending and Investing Decisions'  — https://onlinelibrary.wiley.com/doi/10.1002/9781119440895.ch6 'Emergency Savings and Financial Security: Insights from the Making Ends Meet Survey and Consumer Credit Panel' — https://www.consumerfinance.gov/data-research/research-reports/emergency-savings-financial-security-insights-from-making-ends-meet-survey-and-consumer-credit-panel/

The decisions we make may be further out of our control than we'd like to imagine. Today we are joined by Professor Eric J. Johnson to discuss choice architecture and its role in financial decision-making. Eric is a decision science expert and the author of the book, The Elements of Choice: Why the Way We Decide Matters. In this episode, we learn about the various factors that impact not only decision-making but the effort required to make a decision. Eric shares his philosophy on free will and shares advice for making important decisions and guiding clients to find the right choice as a financial advisor. Tune in to discover how to minimize the influence of the choice architect and take charge of your decisions!   Key Points From This Episode:   •    Introducing Professor Eric J. Johnson and this week's topic: financial decision-making. (0:00:26) •    The hidden partner that accompanies us when we make decisions. (0:03:42) •    How design choices impact our decisions. (0:04:54) •    The plausible path: what it is and how we choose it. (0:06:00) •    Advice for making important decisions. (0:08:21) •    The impact of recent events on decision-making. (0:10:33) •    How to be your own choice architect. (0:12:15) •    Factors impacting the effort required to make a decision. (0:13:22) •    The impact of default choices and what influences them. (0:16:09) •    How choice architecture can help people find the right choice. (0:20:17) •    The influence of sorting on what people choose. (0:25:18) •    How the order of options being presented and the way they're described impact decisions. (0:26:54) •    How exponential growth bias influences long-term decisions and how financial advisors can help clients understand the impact. (0:31:45) •    The effectiveness of Netflix as a choice engine, the role choice engines play in educating users, and the value of just-in-time education. (0:35:04) •    The impact of social media on people's attention and intentions. (0:40:08) •    Eric shares his philosophy on free will and the factors impacting our choices. (0:42:55) •    How to minimize the influence of the choice architect. (0:44:16) •     What financial advisors can do to be most useful to their clients. (0:46:00) •    How Eric defines success in his life. (0:50:12)     Participate in our 23 in 23 Reading Challenge: 23 in 23 Reading Challenge — https://rationalreminder.ca/23in23 23 in 23 Reading Challenge on Beanstalk — https://pwlcapital.beanstack.org/   Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-240-prof-eric-j-johnson-choice-architecture-and-financial-decisions-discussion-thread/22037   Book From Today's Episode: The Elements of Choice — https://theelementsofchoice.com/   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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Prof. Eric J. Johnson on Twitter — https://twitter.com/profericjohnson

The concept of financial math is another foundational element of investing and good economic decision-making, and today we are carrying on the recent string of shows dealing with these kinds of fundamental aspects. First, we have a look at the central idea of the time value of money, and how this plays into many areas of our finances, such as retirement planning, spending, investing, and so on. From there, the conversation goes on to cover exponential functions, the tradeoffs between saving and spending, and regrets. Today's 60-second episode recap is of the great conversation we had with David Blitzer back on Episode 54, and we also do a quick book review of the potentially life-changing How to Live on 24 Hours a Day. We finish off this punchy episode with some news from the community and some thoughts on the ways in which competition and repetition can improve a skill.   Key Points From This Episode:   •    Introducing the time value of money, as well as the concepts of compounding and discounting. (0:03:07) •    Applying financial math in different ways to varied questions. (0:11:34) •    Lessons from Cameron's first business selling worms. (0:18:15) •    The challenges and biases associated with exponential functions. (0:20:27) •    Spending and saving; illuminating the reality of the tradeoffs. (0:27:26) •    The biggest problems of foundational regrets. (0:35:40) •    Looking back on the episode with David Blitzer on indexing. (0:42:33) •    Reviewing the 1908 book, How to Live on 24 Hours a Day. (0:44:25) •    TV shows, podcast reviews, updates from the community and more. (0:49:05) •    Incentives and leaderboards; unpacking the impacts of practice and competition. (0:56:43)       Participate in our 23 in 23 Reading Challenge: 23 in 23 Reading Challenge — https://rationalreminder.ca/23in23 23 in 23 Reading Challenge on Beanstalk — https://pwlcapital.beanstack.org/   Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-239-the-math-of-financial-planning-discussion-thread/21899   Book From Today's Episode: How to Live on Twenty-Four Hours a Day — https://amzn.to/3JLyDaz   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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore

A large portion of what we talk about on this show boils down to decision-making, and today we have our focus squarely on the fundamentals of this process. Professor Ralph Keeney joins us to discuss some of the simplest and most profound elements of decisions, and why we so often miss these aspects. Ralph is a true expert on decision analysis, and his systematic process for decision-making, as laid out in his new book, Give Yourself a Nudge, has truly life-altering potential for anyone looking to improve their future. The book and this conversation are jam-packed with insightful and understandable ideas and examples, including clarifying objectives, the vital role of our values, generating alternatives, and a comparison between decision problems and decision opportunities. Ralph lays out a great way to get started on the path to better decisions, so make sure to join us to hear it all.     Key Points From This Episode:   The focus of Ralph's research and how he articulates the importance of our conscious decisions. (0:03:48) The shortcomings of the trial and error approach that many of us naturally employ. (0:10:46) First steps towards being a better decision-maker; using personal decisions for practice. (0:13:08) Ralph explains his conception and use of the idea of 'nudges'. (0:14:30) A better awareness of the often-neglected front end of decision-making. (0:17:38) An explanation of Ralph's value-focused decision-making process. (0:22:25) Mistakes made around retirement decisions. (0:30:30) Why clarifying your personal decision values can be so difficult. (0:32:15) The process of translating values into objectives. (0:36:11) Ralph's important question around the different possible situations in the future. (0:41:49) Simple processes and common pitfalls for generating alternatives. (0:43:19) Exploring decisions that require third-party permission or commitment. (0:47:59) Differentiating between decision problems and decision opportunities. (0:52:27) The most important concepts for embodying value-focussed decision-making. (0:57:44) The role of financial advisors in aiding their clients to make good decisions. (1:03:28) Application of these ideas toward living a good life. (1:07:46) Ralph's simple definition of success in his own life. (1:10:53)     Participate in our 23 in 23 Reading Challenge: 23 in 23 Reading Challenge — https://rationalreminder.ca/23in23 23 in 23 Reading Challenge on Beanstalk — https://pwlcapital.beanstack.org/   Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-238-prof-ralph-keeney-decision-analysis-and-value-focused-thinking-discussion-thread/21795   Books From Today's Episode: Give Yourself a Nudge — https://amzn.to/3WKMwZx Smart Choices — https://amzn.to/3Ho0vP6 Value-Focused Thinking — https://amzn.to/3HgC7yH Decisions with Multiple Objectives — https://amzn.to/3DywYRH   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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Prof. Ralph Keeney — https://ralphkeeney.com/

Identifying your personal values is the foundation for making future decisions. In this episode, we discuss the profound ways in which personal values impact financial decision-making and share concrete steps to identify both your strategic and means objectives. Ben candidly shares his own objectives and expands on the other considerations involved in making major decisions. We then jump to the less abstract topic of 2022 returns, providing a thorough overview of the tilts and their consequences, followed by a brief summary of an early episode with Shane Parrish. In the latter half of this episode, we are joined by Zoobean co-founder and CEO Felix Lloyd to talk about Beanstack, the tech platform for reading, and Readwise co-founder Daniel Doyon. We also tackle the slightly left-field topic of marketing from a behavioural science standpoint through the lens of Nancy Harhut's tellingly-titled book, Using Behavioral Science in Marketing. Tune in for upcoming developments in the Rational Reminder community, and to discover how to make financial decisions that align with who you are and who you want to become!   Key Points From This Episode:   How personal values impact financial decision-making. (0:00:25) How to identify your life's values and objectives. (0:07:21) The significance of means objectives and strategic objectives, and how to identify them. (0:16:25) Ben's strategic life objectives and means objectives. (0:18:27) Other considerations when making major decisions. (0:19:14) An overview of 2022 returns. (0:22:43) A summary of episode 19 with Shane Parrish. (0:28:59) A brief interview with Zoobean co-founder and CEO Felix Lloyd to talk about Beanstack, the tech platform for reading. (0:31:15) Cameron's review of Using Behavioral Science in Marketing by Nancy Harhut. (0:43:09) What sells (from a behavioural science standpoint). (0:47:15) A brief interview with Readwise co-founder Daniel Doyon. (0:52:52) Summaries of recent Freakonomics, 10% Happier, and Capital Allocators (1:04:05) Developments in the Rational Reminder community. (1:05:30) Upcoming podcast guests and recent podcast reviews. (1:10:25)      Participate in our 23 in 23 Reading Challenge: 23 in 23 Reading Challenge — https://rationalreminder.ca/23in23 23 in 23 Reading Challenge on Beanstalk — https://pwlcapital.beanstack.org/   Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-237-who-are-you-and-who-do-you-want-to-be-discussion-thread/21665   Book From Today's Episode: Using Behavioral Science in Marketing — https://amzn.to/3wuDnJO   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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Daniel Doyon on Twitter — https://twitter.com/deadly_onion Felix Lloyd on Twitter — https://twitter.com/fblloyd Felix Lloyd on LinkedIn —  https://www.linkedin.com/in/fblloyd/ Beanstack — https://www.beanstack.com/ Zoobean on Instagram — https://www.instagram.com/zoobean Readwise — https://readwise.io/

Our guest today, Harold Gellar, is a lawyer who helps clients dealing with fraud and negligence perpetrated by financial advisors, and is a passionate advocate for investors and their rights. Tuning in you'll hear details of some of the most common issues Harold has come across in his work, along with his practical advice for financial advisors and investors. We discuss the importance of clear communication between advisors and their clients, the concept of KYC (Know Your Client), and simple steps investors can take to ensure that their advice is properly understood by their clients. Harold goes on to provide an outline of factors that could make individuals vulnerable to negligent financial advice (such as marital problems or a sudden health crisis) and how to gain perspective in extreme situations. We also discuss the key differences between salespeople and financial advisors, the type of credentials investors should be looking for, and how regulation needs to be modernized in Canada for investors to be properly protected. Harold has been in this industry for a long time and is immensely knowledgeable on the subject of fraud and negligent investment advice.   Key Points From This Episode:   An overview of Harold's practice and how he helps clients get their money back. (0:03:22) The difference between salespeople and financial advisors and the vulnerability of investors. (0:05:40) Practical advice for investors to ensure their financial advisor is doing due diligence and the concept of KYP (Know Your Product). (0:10:46) The concept of KYC (Know Your Client) and how to be sure your financial advisor understands you as a client. (0:15:32) The type of individuals who are particularly vulnerable to negligent financial advice, and why we can all be vulnerable in certain situations. (0:18:33) The role of the trusted contact person in Canada specifically, and how to know when to take the advice of your financial advisor. (0:25:13) Harold's thoughts on what is causing Canada's slow adoption of low-cost index funds. (0:32:27) How financial advisors earn money and why we need an updated regulatory system. (0:34:21) Harold's approach to crypto and why he classifies it as a speculative asset. (0:41:50) Examples of negligence when the investment made was too conservative and why clear communication between client and advisor is crucial. (0:44:20) The worst insurance products that Harold has come across. (0:46:10) What financial advisors should be doing to make sure that their advice is properly understood by their clients. (0:49:23) What investors can do to make sure that they understand what the advisor is saying to them. (0:51:16) Ontario's recent implementation of title regulation for financial planners and advisors and some of its key flaws. (0:52:16) The credentials that investors should expect from their financial advisors. (0:55:34) The value of good advice when it comes to financial planning and investment, and what motivates Harold to be such a strong investor advocate. (0:56:56)     Participate in our 23 in 23 Reading Challenge: 23 in 23 Reading Challenge — https://rationalreminder.ca/23in23 23 in 23 Reading Challenge on Beanstalk — https://pwlcapital.beanstack.org/   Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-236-harold-geller-i-sue-financial-advisors-discussion-thread/21500   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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Harold on Linkedin — https://www.linkedin.com/in/harold-geller-25094033/ Geller Law — http://gellerlaw.ca 'The Misguided Beliefs of Financial Advisors' — https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.12995 'Retail Financial Advice: Does One Size Fit All?' — https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.12514

As we kick off the new year, we wanted to look back at our biggest areas of learning from last year. So this episode serves as a great companion piece to our year-end recap from a couple of weeks ago, but the focus here is on the personal impact that specific guests, ideas, and topics had on each of our lives. We cover ICAPM thinking, the nature of money, financial literacy, setting financial goals, the history of index funds, and more. For the second half of the show, we are joined by the amazing Shaun Tomson, former world surfing champion, author, and renowned speaker. Shaun is here to talk a bit about his latest book, co-authored with Noah benShea, entitled The Surfer and the Sage. We get to hear about Shaun's belief in the power of words, the specific conditions that can enforce this power, the lessons he has taken from a life in the ocean, and how the tragedy of losing his son influenced his life's trajectory. Join us to catch it all.   Key Points From This Episode:   Differentiating between the CAPM and ICAPM theories. (0:08:02) Long-run risks in stocks and bonds; demystifying safety claims.  (0:14:46) Further illumination on the concept of money and how to think about it. (0:24:27) Learnings around the empirical side of financial literacy. (0:31:00) Improved setting of financial goals and common mistakes that many of us make. (0:32:24) Filling in the gaps in an understanding of the history of index funds. (0:35:57) A one-minute recap of our episode with Allison Schrager from last year. (0:37:47) A quick review of Shaun Tomson's book, The Surfer and the Sage. (0:39:38) Shaun explains the significance of the wave as a metaphor. (0:43:28) The tragic passing of Shaun's son in 2006 and how this redirected his life's purpose. (0:45:10) Shaun explains his CODE method for transformation. (0:49:35) The significance of the structure of the book and the motivation behind it. (0:56:38) Unpacking the importance of purpose when making financial decisions. (0:59:40) Shaun's tactical recommendations; resilience, hope, optimism, and discipline. (1:05:44) Upcoming book recommendations for our 23 in 23 Reading Challenge. (1:19:22)   Participate in our 23 in 23 Reading Challenge: 23 in 23 Reading Challenge — https://rationalreminder.ca/23in23 23 in 23 Reading Challenge on Beanstalk — https://pwlcapital.beanstack.org/   Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-235-top-learnings-from-2022-plus-23-in-23-special-guest-shaun-tomson-discussion-thread/21332    Books From Today's Episode: The Surfer and the Sage: A Guide to Survive and Ride Life's Waves — https://amzn.to/3GytVJV The Code: The of Power of "I Will" — https://amzn.to/3ZEMUvg Surfer's Code: 12 Simple Lessons for Riding Through Life — https://amzn.to/3VZIcFb   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/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Shaun Tomson on Twitter — https://twitter.com/shauntomson Shaun Tomson on Instagram — https://www.instagram.com/shauntomson/ Shaun Tomson on Linkedin — https://www.linkedin.com/in/shaun-tomson-42a57213/ Shaun Tomson — https://shauntomson.com/ Shaun Tomson's I Will Form — https://buzzy.buzz/kiosk/3676e3c13ae389a80dd5774d 'The Code Method for Families' — https://shauntomson.com/wp-content/uploads/2020/04/CODE-METHOD-FOR-FAMILIES.pdf 'The Surfer and the Sage: Trailer' — https://www.dropbox.com/s/wn0q3r0gf006tl6/TrailerUSETHISONE.mp4?dl=0 'Generating Objectives: Can Decision Makers Articulate What They Want?' — https://pubsonline.informs.org/doi/abs/10.1287/mnsc.1070.0754?journalCode=mnsc 'Eyes on the Prize: The Preference to Invest Resources in Goals Over Means' — https://www.anderson.ucla.edu/documents/areas/fac/marketing/Shaddy/investing_goals.pdf 'Counteracting obstacles with optimistic predictions' — https://pubmed.ncbi.nlm.nih.gov/20121310/ 'Immediate Rewards Predict Adherence to Long-Term Goals' — https://journals.sagepub.com/doi/full/10.1177/0146167216676480 'Stocks for the Long Run? Sometimes Yes. Sometimes No.' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3805927

Few people have impacted the way the world works, and today, we have the privilege of speaking to one of them. Professor Robert C. Merton is the Distinguished Professor of Finance at The Massachusetts Institute of Technology (MIT) Sloan School of Management and Professor Emeritus at Harvard University. He has a Ph.D. in Economics from MIT and is currently the Resident Scientist at Dimensional Fund Advisors. Professor Merton was awarded the Alfred Nobel Memorial Prize in Economic Sciences in 1997 for his work establishing a new method to determine the value of derivatives. He also created the Intertemporal Capital Asset Pricing Model (ICAPM), a popular tool to help advisors make informed financial decisions and understand market trends. In our incredible conversation, we cover portfolio theory, moving from Capital Asset Pricing Model (CAPM) to the Intertemporal Capital Asset Pricing Model (ICAPM), and how financial models work. We also discuss the difference between the value of your capital and the value of the cash flow that can come from that capital, why size can't be a factor, what aspects to consider when calculating the worth of an account, and the definition of market efficiency. We also delve into retirement, how to safely invest for it, what pitfalls to avoid, and how retirement funds may change over time. He also shares his opinion about some popular financial advise and what the roles of financial advisors should be. For all this and more, tune in to hear from the man behind the model and Nobel laureate, Professor Robert C. Merton!   Key Points From This Episode:   We start with Professor Merton describing the concept of market efficiency. (0:04:28) He explains the basics of his ICAPM asset pricing model. (0:09:10) How portfolio theory changes when moving from single-period to multi-period. (0:10:46) Hear a practical example of expected returns changing over time. (0:14:15) Why ICAPM is dependent on the sensitivities to risk of an individual investor. (0:22:52) Find out how to determine if the correct proxy has been identified for a risk. (0:25:34) Learn how home country bias fits into portfolio choice from an ICAPM hedging perspective. (0:31:54) The definition of a risk-free asset and how it changes with time. (0:33:24) What influence the time horizon should have on the mix between stocks and bonds in an investor's portfolio. (0:35:33) His opinion about young investors using leverage to make investments. (0:41:50) What people should be doing to get more accessibility to leverage. (0:47:39) Professor Merton tells us who should focus on value stocks and growth stocks. (0:51:34) Discover what makes retirement income a difficult problem to solve and tips to ensure your retirement. (0:56:47) We discuss using Monte Carlo simulations to estimate how much people can spend in retirement. (1:09:04) He provides insight into how to get more from your retirement investment. (1:13:04) Whether nominal annuities are considered low-risk assets for retirees. (1:16:48) An overview of the impact mathematical models have had on the finance sector. (1:20:12) Areas of finance practice that are lagging behind the financial models. (1:27:35) Hear what popular financial advice Professor Merton thinks is misguided. (1:33:22) Ways his work on option pricing has impacted society. (1:41:26) The role he sees for financial advisors. (1:45:42) Why he decided to join Dimensional Fund Advisors. (1:48:54) Professor Merton unpacks the definition of product design. (1:52:14) Stay listening for the extended discussion. (1:57:24)   Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-234-prof-robert-c-merton-icapm-retirement-and-models-in-finance-discussion-thread/20748     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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Prof. Robert C. Merton — https://robertcmerton.com/

It has been an amazing year for the podcast. We have had some incredible guests during 2022 who have provided us and listeners with insights and thought-provoking ideas about the world of finance. We covered a lot of ground and to wrap up the year we decided to recap some of our favourite moments for listeners. In this episode, we highlight the many themes covered during this year, such as the basics of investing, stocks and bonds, how to make wise investment decisions, gender inequality, asset management, index funds, market trends, and portfolio management. We also highlight some of the indirectly topics indirectly related to finance such as the value of happiness, enjoying the pursuit of happiness, the importance of goal setting, and much more. Join us as we reflect on some of our best moments from the year and provide an overview of the many vital lessons we have learned in this final episode of the year for the Rational Reminder podcast.   Key Points From This Episode:   Mac McQuown explains how the data revolution changed the game of investing. (0:09:05) Robin Wigglesworth and tracking the performance of portfolios in the 60s. (0:12:56) Professor Fama shares what it is like to see the impact of his academic work on the practice of asset management. (0:16:02) Gus Sauter tells us about the role the University of Chicago played in the index fund revolution. (0:18:41) Professor Fama unpacks what it means for a market to be efficient. (0:20:52) Gerard O'Reilly and the differences in the types of market strategies available. (0:24:27) Professor Betermier shares his research from multiple papers concerning tendencies towards growth and value stocks. (0:28:50) Eduardo Repetto tells us whether having a portfolio consisting of 100% small-cap value stocks makes sense. (0:36:06) Professor Koijen explains whether index funds distort market prices and make markets less efficient. (0:40:30) Professors Berk and van Binsbergen discuss if it is possible to find skilled fund managers before they are absorbed by their fund. (0:43:44) Professor Cederburg explains how data sets can be upwardly biased and why you need to be aware of it when looking at data. (0:48:15) Bill Janeway describes the three-player game regarding investments. (0:50:51) Professor Phalippou compares the performance of private equity relative to public equities. (0:53:42) Antti Ilmanen tells us how investors can stick with an investment strategy during times of low performance. (0:59:10) Professor List tells us how often people should check their investment portfolios. (1:01:56) Leonard Mlodinow explains how the rational mind and the emotional mind are intertwined. (1:04:56) Professor Edmans's Grow the Pie and making the world a better place. (1:07:27) Rebecca Walker outlines the effect learning about money has on people. (1:11:15) Colleen Ammerman describes the current state of women in the workplace. (1:13:21) Find out why the pursuit of a goal should be enjoyable with Professor Fishbach. (1:15:40) Andrew Hallam talks about life satisfaction after middle age and how to get there sooner. (1:20:28) Jay van Bavel details the effect of group identity on goal setting. (1:23:08) Professor Frank unpacks the relationship between the consumption of luxury goods and happiness. (1:26:55) Professor Bohns provides insight into why people are under-confident in their social lives. (1:31:01) Professor Fama reveals how many hours a day the brain can handle deep work. (1:34:24) Cassie Holmes and why happiness is a good thing from a scientific perspective. (1:35:30) Colonel Chris Hadfield shares the lesson he learned as an astronaut that he applies to his everyday life. (1:38:52)   Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-233-a-year-in-review-discussion-thread/20856   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/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Episode 182: John 'Mac' McQuown — https://rationalreminder.ca/podcast/182 Episode 184: Robin Wigglesworth — https://rationalreminder.ca/podcast/184 Episode 186: Andrew Hallam — https://rationalreminder.ca/podcast/186 Episode 188: Professor Fishbach — https://rationalreminder.ca/podcast/188 Episode 192: Professor Edmans — https://rationalreminder.ca/podcast/192 Episode 194: Bill Janeway — https://rationalreminder.ca/podcast/194 Episode 196: Professor Betermier — https://rationalreminder.ca/podcast/196 Episode 198: Gerard O'Reilly — https://rationalreminder.ca/podcast/198 Episode 200: Professor Eugene Fama — https://rationalreminder.ca/podcast/200 Episode 202: Antti Ilmanen — https://rationalreminder.ca/podcast/202 Episode 204: Professor List — https://rationalreminder.ca/podcast/204 Episode 206: Professor Bohns — https://rationalreminder.ca/podcast/206 Episode 208: Rebecca Walker — https://rationalreminder.ca/podcast/208 Episode 210: Professor Phalippou — https://rationalreminder.ca/podcast/210 Episode 212: Professor Koijen — https://rationalreminder.ca/podcast/212 Episode 214: Jay Van Bavel — https://rationalreminder.ca/podcast/214 Episode 216: Gus Sauter — https://rationalreminder.ca/podcast/216 Episode 218: Colleen Ammerman — https://rationalreminder.ca/podcast/218 Episode 220: Professors Berk and van Binsbergen — https://rationalreminder.ca/podcast/220 Episode 222: Cassie Holmes — https://rationalreminder.ca/podcast/222 Episode 224: Professor Cederburg — https://rationalreminder.ca/podcast/224 Episode 226: Colonel Chris Hadfield — https://rationalreminder.ca/podcast/226 Episode 228: Eduardo Repetto — https://rationalreminder.ca/podcast/228 Episode 230: Professor Frank — https://rationalreminder.ca/podcast/230

Gaining financial literacy is critical if you want to thrive in today's society. And yet, only about a third of the global population can be described as being financially literate. Joining us today to unpack the concept of financial literacy and its impact is Dr. Annamaria Lusardi, Professor of Economics and Accountancy at George Washington University. Dr. Lusardi has taught Economics for over 20 years, and her passion for financial literacy is reflected in everything she does. Her career has been instrumental in furthering the cause of increased global financial literacy, from being the Founder and Academic Director of the Global Financial Literacy Excellence Center, to serving as the co-chair of the G53 Financial Literacy and Personal Finance Research Network. In our conversation, Dr. Lusardi breaks down the definition of financial literacy, how it's measured by leading experts across the world, along with some of the key differences we see between people in richer and poorer countries. She explains why financial advice isn't a replacement for financial literacy and provides guidance on what we should be doing to educate various population groups. We also discuss how global trends have created an increased need for financial literacy as an essential skill, especially for young people, and why greater global financial literacy is beneficial to everyone, including governments and wealthier individuals. Tune in as we delve into the many facets of financial literacy and the important role it plays in our collective health, happiness, and success!   Key Points From This Episode:   Lusardi defines the concept of financial literacy and the importance of being able to apply it as a skill. (0:04:30) How experts measure financial literacy and some of the key challenges involved. (0:07:55) The global survey that was conducted on financial literacy in 2014 and its dismal findings. (0:11:44) The areas of financial literacy that people struggle with most and why the need for financial literacy has increased over time. (0:15:26) The costs and benefits of gaining financial literacy and the concept of optimal financial knowledge. (0:22:42) An overview of the type of person who should be investing in financial literacy and why. (0:27:46) How the strength of your government's social safety net affects financial literacy rates. (0:30:15) The extent to which financial literacy affects stock market participation and wealth accumulation. (0:31:18) Some of the common mistakes that those with low levels of financial literacy tend to make. (0:35:10) Why financial literacy's end goal should be geared towards happiness and living a good life. (0:39:24) The impact that financial advice and financial advisors have on economic outcomes. (0:43:18) How financial literacy varies across demographic groups and some of the factors that account for disparities in financial literacy. (0:45:42) How financial education programs can yield positive results and where this education should take place for it to be optimal. (0:52:13) What listeners can do to increase financial literacy for those around them and why there is no alternative to good financial knowledge. (0:58:55)     Participate in our Community Discussion about this Episode:   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/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Dr. Annamaria Lusardi — https://www.annamarialusardi.com/ 'Financial literacy and financial resilience: Evidence from around the world' — https://onlinelibrary.wiley.com/doi/abs/10.1111/fima.12283 'The Economic Importance of Financial Literacy: Theory and Evidence' — https://gflec.org/wp-content/uploads/2014/12/economic-importance-financial-literacy-theory-evidence.pdf 'Optimal Financial Knowledge and Wealth Inequality' — https://www.journals.uchicago.edu/doi/10.1086/690950 'Financial literacy and stock market participation' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X11000717 'Employee Financial Literacy and Retirement Plan Behavior: A Case Study' — https://onlinelibrary.wiley.com/doi/abs/10.1111/ecin.12389 'Skating on thin ice: New evidence on financial fragility' — https://www.dnb.nl/media/uxldldkl/working-paper-no-670_tcm47.pdf 'Stereotypes in financial literacy: Evidence from PISA' — https://www.sciencedirect.com/science/article/abs/pii/S0929119920302753?via%3Dihub 'Fearless Woman: Financial Literacy and Stock Market Participation' — https://gflec.org/wp-content/uploads/2021/03/Fearless-Woman-Research-Final.pdf?x53868 'How Financially Literate Are Women? An Overview and New Insights' — https://onlinelibrary.wiley.com/doi/abs/10.1111/joca.12121 'Factors Contributing to Financial Well-Being among Black and Hispanic Women' — https://jor.pm-research.com/content/9/1/71 'Financial Education Affects Financial Knowledge and Downstream Behaviors' — https://gflec.org/wp-content/uploads/2020/04/Working-Paper-Financial-education-affects-financial-knowledge-and-downstream-behaviors-April_2020.pdf

Today is our final episode featuring just the two of us before our annual wrap-up show, and we thought we would use this opportunity to cover some important foundational aspects of rational investing. Ben goes over some of the most fundamental concepts about market prices, risk, and actual returns before answering five common questions that relate to this level of information. From investing in an employer's stock to predicting the future and real estate comparisons, these five touch-points are always worth returning to, and should even interest the more experienced of our listeners. For the second half of the show, we offer a quick book review of The Culture Playbook by Daniel Coyle, and have a brief and illuminating conversation with Professor Amer Kaissi about his book, Humbitious, and some of his thoughts on the part that reading plays in rich and progressive life. Press play to catch all this and more on the Rational Reminder Podcast.   Key Points From This Episode:   Picking up a thread from our discussion on the 2% Rule. (0:06:05) Getting to grips with investing basics. (0:10:45) How market prices work in response to traders' actions and risk. (0:17:59) The main determinants of actual returns and starting points for your portfolio. (0:23:15) Unknowable futures and the eternal doom and gloom predictions. (0:35:43) Assessing the value of owning an employer's stock. (0:38:21) Holding stock picks in Tax-Free Savings Accounts. (0:42:07) How to prepare a portfolio when a recession is predicted. (0:43:49) Comparing investments in real estate with the stock market. (0:45:14) Weighing the value of building and emergency fund. (0:47:11) A thirty-second recap of our episode with Cliff Asness. (0:50:06) Today's book review focussing on the lesson from The Culture Playbook by Daniel Coyle. (0:51:48) Professor Kaissi shares a quick summary of his book, Humbitious. (0:58:40) The potential to develop characteristics and the role that reading plays. (0:59:38) Professor Kaissi talks about his reading habits. (1:02:12) Application of ideas from books and how Professor Kaissi captures and organizes information in his own reading. (1:05:15) A few of Professor Kaissi's favourite book recommendations and how to increase your reading habit. (1:08:52)     Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-231-investing-basics-and-common-questions-plus-reading-habits-w-amer-kaissi-discussion-thread/20716 Books From Today's Episode: Humbitious: The Power of Low-Ego, High-Drive Leadership — https://amzn.to/3WjHjry Mindset — https://amzn.to/3Wzl7Kr Quiet — https://amzn.to/3htlN4X The Five Dysfunctions of a Team — https://amzn.to/3YmKqRv The SPEED of Trust — https://amzn.to/3UWCljq Top Five Regrets of the Dying — https://amzn.to/3uQcUWf The Assertiveness Workbook — https://amzn.to/3VVDVUf How to Raise Your Self Esteem — https://amzn.to/3BDM33p Ego Is the Enemy — https://amzn.to/3BAyCkZ 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/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Amer Kaissi on Twitter — https://twitter.com/amerkaissi10 Amer Kaissi on LinkedIn — https://www.linkedin.com/in/amer-kaissi-ph-d-38258919/ Amer Kaissi — http://www.amerkaissi.com 'The Value of Goals-Based Financial Planning' — https://www.financialplanningassociation.org/article/journal/JUN15-value-goals-based-financial-planning 'Excessive Extrapolation and the Allocation of 401(k) Accounts to Company Stock' — http://independent401kadvisors.com/library_articles/ExcessiveExtrapolation.pdf 'The Agony of Ecstasy: The risks and rewards of a concentrated stock position' — https://assets.jpmprivatebank.com/content/dam/jpm-wm-aem/global/pb/en/insights/eye-on-the-market/agony-ecstasy-2021.pdf 'The financial resilience and financial well-being of Canadians during the COVID-19 pandemic' — https://www150.statcan.gc.ca/n1/pub/75f0002m/75f0002m2021008-eng.htm

The world is a highly competitive place, and becoming successful requires hard work, dedication, and luck. This is the view of today's guest, Professor Robert Frank, who helps us unravel the nuance of conspicuous consumption trends and the role of luck in gaining financial success. Professor Frank is the emeritus Henrietta Johnson Louis Professor of Management at Cornell University and holds an MA in statistics and a Ph.D. in Economics from UC Berkeley. He is also a prolific author, having written 12 books, financial textbooks, and many peer-reviewed articles in journals such as the American Economic Review, Econometrica, and Journal of Political Economy. He is passionate about how policy can help drive positive consumer behaviour, reduce inequality, and increase individual happiness. His work has also focused on the role of luck in achieving financial success which he covers in his book Success and Luck. In this episode, we unpack how individuals can improve societal collective action, the role of policy in driving those changes, and how luck interplays with success. We discuss economic and financial relativism, the dangers of conspicuous consumption, how expenditure cascades occur, and what influences consumption trends in society. We also dive into the topic of luck, whether wealthy people are happier, what behavioural changes are needed to create a better society, and more.   Key Points From This Episode:   Professor Frank describes the difference between departures from rational choice with regret and without regret. (0:04:34) Whether he classifies his work as behavioural economics. (0:07:38) An explanation of economic and financial relativism. (0:10:50) The role of economic and financial relativism in consumption trends. (0:12:44) Find out what constitutes a positional good. (0:16:56) How the consumption of positional goods affects psychological well-being. (0:19:32) Why people choose to engage in consumption arms races. (0:21:52) The relationship between the consumption of luxury goods and happiness. (0:24:45) What people can do to recognize and avoid negative consumption behaviours. (0:26:31) How the spending of the super-rich impacts the spending habits of the typical consumer. (0:27:38) Ways in which social media influencers have affected consumption. (0:30:32) We learn about the link between consumption and inequality. (0:32:40) How well differences in human capital explain differences in income. (0:35:04) Professor Frank explains how likely it is that the most skilled person gets the best outcome in a competitive market. (0:38:13) Professor Frank shares how they measure luck. (0:41:20) The influence luck has on achieving a successful outcome. (0:42:09) Find out if luck influences consumption trends and inequality. (0:44:03) A thought experiment concerning the wealthy and higher taxes. (0:46:56) We discuss whether winner-take-all markets are a good thing for society. (0:50:22) How people should behave differently to help drive positive change. (0:53:06) Advice for people to stay motivated and work hard. (0:57:19) What Professor Frank thinks about working a job you hate for more money. (0:58:59) He provides insight for people who work jobs they hate. (0:59:59) His approach on the subject of luck and meritocracy with young kids. (1:00:47) We discuss the idolization of financially successful people. (1:03:36) How successful individuals should behave differently in an economy where luck plays such an important role. (1:05:38) The response of successful people to Success and Luck. (1:08:15) Steps people can take to positively affect those around them. (1:09:29) Discover what Professor Frank's position is on policy. (1:14:20) We hear how Professor Frank defines success in his life. (1:18:33)     Links From Today's Episode:   Professsor Robert Frank on Twitter — https://twitter.com/econnaturalist Cornell University — https://www.cornell.edu/ Success and Luck — https://www.amazon.com/Success-Luck-Good-Fortune/ Luxury Fever — https://www.amazon.com/Luxury-Fever/ Principles of Economics — https://www.amazon.com/Principles-Economics/ The Winner-Take-All Society — https://www.amazon.com/Winner-Take-All-Society/ American Economic Review — https://www.aeaweb.org/journals/aer Econometrica — https://onlinelibrary.wiley.com/journal/14680262 Journal of Political Economy — https://www.jstor.org/journal/jpoliecon Project Sunroof — https://sunroof.withgoogle.com/ 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/?hl=en Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on Twitter — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on Twitter — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Traditionally, people saving for retirement and financial advisors relied on the 4% rule when calculating how much to save for retirement and the associated income those savings would provide after retirement. What if you found out it does not work? Is there another option? Today, we offer you an alternative approach, which is the 2% rule for retirement spending. Before we delve into today's main topic, we update listeners on the recent London meet-up, what to expect on upcoming shows, and who our special guest is to kick off the first episode of 2023. Then, we discuss today's main topic and learn what the 2% rule is, how it compares to the 4% rule, and whether the safe percentage for retirement is actually higher. We unpack retirement spending through the lens of several empirical papers, historical data, and market comparisons. We also find out why the US market has always been able to bounce back from uncertainty and whether there is empirical data to support the 4% rule. We also talk about the many financial challenges and opportunities that young people face, the biggest mistake people make regarding retirement, the value of financial literacy, book reviews, and more!   Key Points From This Episode:   An update on the 22 in 22 Reading Challenge. (0:05:21) Outline of today's content and the main topic: the 2% rule for retirement spending. (0:06:27) An overview of the "2% rule", the motivation behind it, and how it was formulated. (0:08:17) We discuss if the safe withdrawal rate for retirement savings is higher than 4%. (0:13:31) The inspiration for the higher average realized rate of return on investment theory. (0:19:59) Whether the past returns on US stocks will repeat in the future. (0:21:54) Why the US stock market has been historically exceptional and resilient, and how other markets compare. (0:23:44) The biggest limitation of the seminal work which helped established the 4% rule. (0:28:38) How data gaps were dealt with in the paper by Scott Rieckens and results are discussed. (0:33:16) Other aspects to consider regarding the research on retirement funds. (0:38:35) The challenges and opportunities that young people face today. (0:42:24) How financial literacy impacts investment opportunities, returns, and overall happiness. (0:46:59) What are the potential solutions and reasons to be optimistic regarding the current financial market. (0:47:48) Our usual episode review under a minute: episode 30 with Larry Swedroe. (0:52:31) This week's book review and choice architecture. (0:54:35) We discuss the reviews and feedback received on a previous episode. (1:02:32) Hear an update about our idea regarding CE credits and reviews about the show. (1:06:01)     Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-229-the-2-rule-for-retirement-spending-discussion-thread/20473   Book From Today's Episode: The Elements of Choice: Why the Way We Decide Matters — https://amzn.to/3VvxZR8   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/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore 'Determining Withdrawal Rates Using Historical Data' — https://retailinvestor.org/pdf/Bengen1.pdf 'Retirement Savings: Choosing a Withdrawal Rate That Is Sustainable' — https://www.researchgate.net/profile/Carl-Hubbard/publication/265279441/ 'Global stock markets in the twentieth century' — https://onlinelibrary.wiley.com/doi/abs/10.1111/ 'Is The United States A Lucky Survivor: A Hierarchical Bayesian Approach' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3689958 'The Safe Withdrawal Rate' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4227132 'The equity premium: A puzzle' — https://www.sciencedirect.com/science/article/abs/pii/0304393285900613 'Long-Horizon Losses in Stocks, Bonds, and Bills' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3964908 'Financial System Review 2022' — https://www.bankofcanada.ca/2022/06/financial-system-review-2022/#:~:text=The%20tightening%20of%20monetary%20policy,remain%20two%20key%20interconnected%20vulnerabilities. 'The financial resilience and financial well-being of Canadians during the COVID-19 pandemic' — https://www150.statcan.gc.ca/n1/pub/75f0002m/75f0002m2021008-eng.htm 'Hopefulness is declining across Canada' — https://www150.statcan.gc.ca/n1/daily-quotidien/220517/dq220517d-eng.htm 'Global Investor Experience Study: Fees and Expenses' — https://assets.contentstack.io/v3/assets/blt4eb669caa7dc65b2/blt60e320775385837a/62431900eed9f60f2de8ad55/GIE_2022.pdf 'Financial Literacy Around the World' — https://gflec.org/wp-content/uploads/2015/11/3313-Finlit_Report_FINAL-5.11.16.pdf 'Ontario Securities Commission Investor Knowledge Study' — https://www.osc.ca/sites/default/files/2022-09/inv_research_20220907_investor-knowledge-study_EN.pdf 'Measuring the Financial Sophistication of Household' — https://www.nber.org/system/files/working_papers/w14699/w14699.pdf 'Investment Literacy, Overconfidence and Cryptocurrency Investment' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3953242 'Financial Literacy and Attitudes to Cryptocurrencies' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3482083 'Bitcoin Awareness, Ownership and Use: 2016–20'— https://www.bankofcanada.ca/wp-content/uploads/2022/04/sdp2022-10.pdf 'Optimal Financial Knowledge and Wealth Inequality' — https://repository.upenn.edu/cgi/viewcontent.cgi?article=1093&context=bepp_papers 'Financial Literacy and Retirement Planning in the United States' — https://www.nber.org/system/files/working_papers/w17108/w17108.pdf 'Financial Well-Being of the Millennial Generation' — https://gflec.org/wp-content/uploads/2019/12/Financial-Well-Being-of-the-Millennial-Generation-Paper-20191122.pdf

In this episode, we are joined by the CIO of Avantis Investors, Eduardo Repetto, to have an in-depth conversation about his philosophy and approach to many of the central concepts that are important to our listeners. Eduardo weighs in on asset pricing factor investing, premiums, and also shares some of his perspectives on what makes Avantis different from its competitors. Eduardo's wealth of experience and technical know-how make this very practical exploration, complete with some inventive and demonstrative analogies. Despite the high-level concepts discussed, our guest's ability to communicate these in an accessible manner also helped maintain a level of approachability throughout. Toward the end of the episode, we get to hear a little about Eduardo's Ph.D. in aeronautics and some of the surprising overlaps he sees between his two fields of interest.   Key Points From This Episode: Eduardo's approach to communicating what Avantis can offer their clients. (0:02:57) Advantages of the ETF structure for managing portfolios. (0:05:07) Advice for investors for quantitatively assessing the expected return advantage of a factor-tilted portfolio. (0:10:26) Practical approaches for individual investors when assessing a factor tilt in portfolios. (0:13:54) Eduardo unpacks the idea of trust in relation to the premium. (0:20:45) When does a completely small-cap value portfolio make sense? (0:27:23) Avantis' method for targeting value and profitability. (0:31:03) The weighting of different metrics that Avantis uses when building portfolios. (0:34:43) Eduardo unpacks cash profitability versus operating profitability. (0:36:53) The approach at Avantis to sector weights. (0:39:56) Understanding adjusted book value when pricing a company. (0:43:53) Eduardo describes the premium for the Goodwill adjustment. (0:50:02) How Avantis views pursuing credit premium in fixed income investments. (0:51:32) Determining the size of factors tilts on particular products. (0:57:05) Reasons that there are no emerging market small cap value strategies. (0:59:48) Comparing the research behind inflation-focused equity strategy to a more general value profitability premium. (1:06:03) Avantis' strategy for staying on the cutting edge of the latest research. (1:10:34) Conversations between Avantis and American Century Investments about different investment philosophies. (1:18:22) Eduardo shares his opinion about Avantis' competitive advantage. (1:19:56) Where Avantis and Eduardo are aiming their energy in the near future, and the succession plan for the company. (1:23:11) Some surprising similarities between aeronautics and asset management. (1:27:21) Eduardo talks about his personal definition of success. (1:31:31)   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/ Eduardo Repetto — https://www.avantisinvestors.com/content/avantis/en/about-us/our-team/eduardo-repetto.html Avantis Investors — https://www.avantisinvestors.com/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/?hl=en Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on Twitter — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on Twitter — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

In today's episode, we pull relevant quotes from past guests (namely John Cochrane, Gene Fama, and Jonathan Berk) to extricate who should own market cap funds. We look at the variable risks of value stocks and factor investing and hear counter-views on owning the market. We also delve into the hot topic of tax loss selling, with an overview of a recent Financial Analyst Journal paper on loss harvesting outcomes, sorted by investor profiles. This episode will get you up to date on the biggest finance news of the week, from crypto collapses to Amazon's catapulting gains and losses. Tune in to hear all of this and more, including a recap of our conversation with Dave Goetsch and our Financial Literacy Month book reviews.    Key Points From This Episode:   A neat way to keep track of the value of your purchases over time. (0:00:33) The results of the Rational Reminder financial literacy survey. (0:02:44) An overview of this episode's topics. (0:05:45) Who should invest in market cap-weighted index funds. (0:07:28) How to determine whether you're different from the average investor. (0:16:13) Gene Fama's take on the possibility of identifying state factors. (0:22:13) The variable risks of value stocks. (0:23:25) What drives people to increase their value tilts over time. (0:25:11) The risks of factor investing, and trading in general. (0:28:26) Jonathan Berk's take on owning the market. (0:31:53) A summary of who should invest in total market index funds. (0:33:20) The big crypto news of the week! (0:38:21) Other significant market news. (0:42:17) An overview of a recent Financial Analyst Journal paper on loss harvesting outcomes, sorted by investor profiles. (0:44:59) Our book reviews for Financial Literacy Month. (0:55:15) A recap of our conversation with Dave Goetsch. (1:01:47) A few of our listeners' reviews. (1:02:50)   Participate in our RR CE Credits Survey: https://forms.office.com/Pages/ResponsePage.aspx?id=xVA-B3TS3UeuUte5Yx-hRi0Vpj3fzvhNpOTm6eRMYJ5UN0tOM1A5MFdPQzJFT1hZOTJLN1pHRVFYSS4u Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-227-who-should-invest-in-cap-weighted-index-funds-discussion-thread/20230 Books From Today's Episode: The Geometry of Wealth: How to shape a life of money and meaning — https://amzn.to/3Od9J3N Retirement Income for Life: Getting More without Saving More — https://amzn.to/3GpkHRN We're Talking Millions!: 12 Simple Ways to Supercharge Your Retirement — https://amzn.to/3UI3uaE Common Sense on Mutual Funds — https://amzn.to/3AjUsIM The Investment Answer: Learn to Manage Your Money and Protect Your Financial Future — https://amzn.to/3UWeSPM Money Like You Mean It: Personal Finance Tactics for the Real World — https://amzn.to/3g9bT7Q 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/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore 'An Intertemporal Capital Asset Pricing Model' — https://www.jstor.org/stable/1913811 'Risk and Return of Value Stocks' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=112553 'The Value Premium' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=351060 'A Consumption-Based Explanation of Expected Stock Returns' — https://repository.upenn.edu/cgi/viewcontent.cgi?article=1146&context=fnce_papers 'Who Are the Value and Growth Investors?' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2426823 'Is There a Replication Crisis in Finance?' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3774514 'Amazon Becomes World's First Public Company to Lose $1 Trillion in Market Value' — https://www.bloomberg.com/news/articles/2022-11-09/amazon-hits-unwelcome-milestone-with-1-trillion-in-value-lost?leadSource=uverify%20wall

In this episode, we speak to renowned Canadian figure Colonel Chris Hadfield. For those who don't know, Chris is a heavily decorated astronaut, engineer, and pilot, and has received many awards, such as the Order of Canada, the Meritorious Service Cross and the NASA Exceptional Service Medal. Colonel Hadfield became a worldwide sensation with his video of David Bowie's "Space Oddity" which was viewed by over 75 million people. He aims to make space more accessible and continues to share the wonders of outer space and science with as many people as possible. Besides his phenomenal professional background, he is also known for his music which he writes and plays on earth and in space! He is also the author of several books, namely An Astronaut's Guide to Life on Earth, You Are Here, and a children's book, The Darkest Dark. Although Colonel Hadfield has a very different background from previous guests, his 35-year career has afforded him many lessons that apply to life, which he shares in our conversation with him. We learn the importance of goals and why reaching your goals should not define your happiness. Hear ways to overcome fear when facing uncertainty, the value of competence, and why enjoying the road to success is more important than success itself. Find out why sweating the small is essential to success, whether Colonel Hadfield suffers from imposter syndrome, and where true happiness comes from. Tune in and discover the secret to success and happiness in this one-of-a-kind conversation with special guest, Colonel Chris Hadfield!   Key Points From This Episode:   What motivated Commander Hadfield to take pictures onboard the International Space Station. (0:04:10) He briefly explains the amount of effort that went into taking pictures for his book You Are Here. (0:05:14) What lessons Commander Hadfield learned as an astronaut that he applies to life. (0:06:34) How to keep motivated to achieve your goals with the knowledge that you probably won't achieve them. (0:08:41) Why his goal was becoming an astronaut and not to be an astronaut. (0:11:05) Whether there is a time to reconsider or quit a goal that you have set for yourself. (0:12:46) The best way to prepare for situations with uncertain outcomes. (0:14:51) How to prepare for situations that you cannot prepare or practice for. (0:18:18) Ways to mitigate fear when dealing with risk and uncertainty. (0:20:55) Learn if building competence is different for different people. (0:23:48) Hear the benefits of negative thinking and sweating the small stuff. (0:25:33) Commander Hadfield explains how to prepare for novel situations. (0:29:07) He shares where he thinks life satisfaction comes from. (0:31:49) Find out if Commander Hadfield ever suffers from imposter syndrome. (0:34:14) What life lessons he hopes to impart to his grandchildren. (0:36:09) How Commander Hadfield defines success in his life. (0:38:04) We highlight the main takeaways from our conversation with Commander Hadfield. (0:41:14)     Links From Today's Episode:   Commander Chris Hadfield — https://chrishadfield.ca/ Commander Chris Hadfield on Twitter — https://twitter.com/Cmdr_Hadfield/ Commander Chris Hadfield on Instagram — https://www.instagram.com/colchrishadfield/ Commander Chris Hadfield on Facebook — https://www.facebook.com/AstronautChrisHadfield Commander Chris Hadfield on LinkedIn — https://www.linkedin.com/in/chris-hadfield/ Commander Chris Hadfield on YouTube — https://www.youtube.com/c/ChrisHadfieldAstronaut/featured   A Space Oddity — https://www.youtube.com/watch?v=KaOC9danxNo You Are Here — https://www.amazon.com/You-Are-Here-Photographs-International/dp/0316379646 An Astronaut's Guide to Life on Earth — https://www.amazon.com/Astronauts-Guide-Life-Earth-Determination/ The Darkest Dark — https://www.amazon.com/The-Darkest-Dark/

Are index funds a menace to the market? Are pension funds still a wise way to secure your financial future? In this episode, we discuss index funds, the state-sponsored pension plan in Canada, and much more. First, we unpack the nuances of index funds and take a look at the impact that active and passive investors have on the market. We discuss current index fund trends, when to switch from a passive to an active investor, and the dreaded index fund tipping point. To help us understand pension funds, we also chat with Jordan Tarasoff, a financial planner at PWL Capital, about the recent controversy regarding state pension schemes in Canada, and he provides us with some valuable insights into the government's upcoming plan. We switch up our usual book review to celebrate Financial Literacy Month and share five recommended books that will help you improve your understanding of finance. We also try something new by giving listeners a condensed overview of a previous episode with one of our favourite guests, Scott Rieckens. Finally, we go through some of the feedback and comments we've received from the growing Rational Reminder community about the show and our recent financial goals survey.   Key Points From This Episode:   What to look forward to in next week's episode. (0:05:08) Hear about a special promotion to celebrate Financial Literacy Month. (0:05:43) Introducing today's topic and what to expect in the episode. (0:05:56) Worries and biggest critiques of index funds. (0:08:23) Current trends regarding index funds in relation to the market. (0:09:40) When investors should switch from passive to active. (0:12:45) Some good news about the index fund tipping point. (0:15:46) What investors should be aware of when actively investing. (0:16:32) How informed and misinformed managers contribute to the index fund tipping point. (0:19:38) Who the investors and managers are that change to passive investment. (0:20:52) How switching from active to passive investing affects the value of the market. (0:25:38) Unpacking the concept of markets being 'inelastic' as a result of index funds. (0:28:52) Whether passive investing undermines price efficiency concerning index funds. (0:30:03) What would cause the index tipping point to occur. (0:31:40) A brief background on today's guest, Jordan Tarasoff. (0:35:00) Details about the Canada Pension Plan (CPP) and how it works. (0:35:28) Jordan outlines the benefits of deferring a pension plan claim. (0:36:28) Recent changes that make deferring your pension plan non-beneficial. (0:38:20) What age group the recent pension plan changes impact the most. (0:42:14) Why the Consumer Price Index (CPI) can't be used to predict wage growth. (0:43:53) How Jordan is approaching his clients' pensions regarding the new changes. (0:45:10) Review of our top five books for increasing financial literacy. (0:48:57) Our new segment: summarizing a past episode in sixty seconds. (0:56:57) We 'talk cents' about financial values and spending. (0:58:49) Recent reviews and feedback received about the podcast and goals survey. (1:02:40)     Links From Today's Episode:   Jordan Tarasoff — https://www.pwlcapital.com/profile/jordan-tarasoff/ Scott Rieckens — http://www.scottrieckens.com/ Efficient Frontier — http://efficientfrontier.com/ef/0adhoc/2books.htm Episode 95: Scott Rieckens (Playing with FIRE): Finding Financial Education, Perspective, and Freedom — https://rationalreminder.ca/podcast/95 Episode 99: Andrew Hallam (Millionaire Teacher): How to be Wealthy (and Happy) — https://rationalreminder.ca/podcast/99 Episode 108: Dr. William Bernstein: Praying for a Bear Market — https://rationalreminder.ca/podcast/108 Episode 128: Morgan Housel: The Psychology of Money — https://rationalreminder.ca/podcast/128 Episode 159: Bill Schultheis: Build Wealth and Get on With Your Life — https://rationalreminder.ca/podcast/159 Episode 186: Andrew Hallam: Balancing Money, Relationships, Health, and Purpose — https://rationalreminder.ca/podcast/186 Episode 191: Emerging Markets: Diversifying Asset or a Reverse Lottery? (plus Reading Habits w/ Morgan Housel) — https://rationalreminder.ca/podcast/191 Episode 212: Prof. Ralph Koijen: Demand System Asset Pricing & Inelastic Markets — https://rationalreminder.ca/podcast/212 Episode 124: Prof. Lubos Pastor: Equilibrium Models vs. Intuition — https://rationalreminder.ca/podcast/124 Episode 220: Jonathan Berk and Jules van Binsbergen: The Arithmetic of Active Management, Revisited — https://rationalreminder.ca/podcast/220 'On the Size of the Active Management Industry' — https://www.jstor.org/stable/10.1086/667987 'Disagreement, tastes, and asset prices' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X06001954 'Measuring skill in the mutual fund industry' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X15000628 'Which Investors Matter for Equity Valuations and Expected Returns?' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3378340 Balance: How to Invest and Spend for Happiness, Health, and Wealth — https://www.amazon.com/Balance-Invest-Happiness-Health-Wealth/dp/1774580756 If You Can: How Millennials Can Get Rich Slowly — https://www.amazon.com/If-You-Can-Millennials-Slowly/dp/098878033X The Coffeehouse Investor's Ground Rules — https://www.amazon.com/Coffeehouse-Investors-Ground-Rules-Happiness/dp/1119717086 The Psychology of Money — https://www.amazon.com/Psychology-Money-Timeless-lessons-happiness/dp/0857197681 Think, Act, and Invest Like Warren Buffett — https://www.amazon.com/Think-Invest-Like-Warren-Buffett/ The November Meet-up Email — info@rationalreminder.ca 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/?hl=en Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on Twitter — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on Twitter — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Are stocks and bonds good in the long game? What are the best long-term investment options? In this episode, we speak to Professor Scott Cederburg about the nuance surrounding the stock market, bonds, and other investment types in the long term. He has a Ph.D. in Finance from the University of Iowa and is currently the Associate Professor of Finance at Eller College of Management at the University of Arizona. His research focuses on the long-horizon performance of a range of asset classes and investment types and has published in high-ranking academic journals, making him the perfect person to speak to about the subject. We discuss the topic through the lens of several papers he has written on stocks, bonds, retirement savings, and return predictability. In our conversation, we unravel the nuance of the returns on long-term stocks and bonds, hear details about his research design, and learn how unanticipated events can affect the market. He also provides insight into the different biases surrounding long-term investments, the block bootstrap approach, reasons why the block bootstrap approach is needed, and why bonds and bills may not be the long-term investment you were hoping for. We also discuss the best options for investors regarding pre-tax and post-tax accounts and the differences between high-beta and low-beta portfolios. He also shares some basic steps for investors to help them protect their investments. Join us as we dig into the past to uncover the financial future with Professor Scott Cederburg.   Key Points From This Episode:   We begin with Professor Cederburg describing his research design for his work investigating long-term returns on stocks and bonds. (0:04:20) Hear examples of how unanticipated events lead to impacts on stocks and bonds. (0:08:08) What the overall trend in the data was from his research on stocks and bonds. (0:11:05) Why considering different biases is essential for financial decision-making. (0:11:45) How the historical experience in the US stock and bond markets compare to other developed markets. (0:12:45) Details about the data he collected regarding domestic stocks and investors. (0:13:55) Learn how probable it is that domestic stocks will deliver losses in the long term. (0:16:41) Outline of the factors which tend to cause long-term stock losses. (0:17:36) What potential losses are in the long-term for international stocks. (0:18:58) How likely stocks will deliver catastrophic losses as opposed to traditional forms of loss. (0:22:15) Find out how much the probability of loss decreases with longer horizons. (0:23:59) The contribution of currency and domestic inflation to the trends in the data. (0:24:52) We compare how well international stocks hedge against long-term real losses in domestic stocks. (0:25:25) He shares how he thinks investors should approach the home country bias. (0:26:34) A rundown of the expropriations that exist in Professor Cederburg's data. (0:27:34) We talk about long-term stocks and their implications on asset allocations. (0:28:48) How wide the distribution of long-run stock payoffs are. (0:29:28) Discover how likely bonds and bills are to real losses over a long period. (0:30:16) Breakdown of what the distribution looks like for bond returns. (0:31:52) Whether bonds act as a hedge against poor stock returns. (0:33:24) Common economic conditions that explain the poor long-term returns for stocks and bonds. (0:34:58) Ways in which the results can be used to make predictions for the economic future. (0:38:36) Professor Cederburg tells us if stocks are safe or risky in the long term. (0:40:23) He unpacks mean reversion in the full-time series compared to the block bootstrap approach. (0:41:27) Why emerging markets were not considered in the study. (0:43:55) Advice for investors given the findings of his study. (0:45:00) We discuss the applicability of the findings within a contemporary market setting. (0:47:04) Which variables need to be considered when deciding between a pre-tax or post-tax savings account. (0:49:19) Factors that make a pre-tax and post-tax account valuable. (0:50:41) Hear the investment type most exposed to future tax schedule uncertainty. (0:54:50) Whether using a post-tax account can build resilience to tax uncertainty. (0:56:29) Simple rules for listeners to help them optimize the location of their savings. (0:59:08) How the simple rules compare to the optimization analysis performed for the research paper. (1:01:40) Risk-adjusted performance for high beta and low beta portfolios. (1:03:02) We learn what the implications are for someone investing in low-beta assets. (1:05:58) Professor Cederburg shares his definition of success. (1:09:17)     Links From Today's Episode:   Global Financial Data — https://globalfinancialdata.com/ 'Stocks for the long run? Evidence from a broad sample of developed markets' — https://www.sciencedirect.com/science/article/ 'Tax Uncertainty and Retirement Savings Diversification' — https://www.sciencedirect.com/science/article/ 'Does it pay to bet against beta? On the conditional performance of the beta anomaly' — https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.12383

We recently created and conducted a very interesting survey based on financial goals, and today, we get to share some of the data we collected and the answers that were given to the questions. Although there are some definite limitations to our expertise as surveyors and data collectors, the findings are most definitely illuminating, surprising, and useful. Listeners will get to hear a bit about the process of building the survey as well as some of the raw numbers and data before we get into the list of goals that were submitted, collated, and ranked. We also share some of the ways that these were split across demographics such as age and gender. Apart from this focus on the survey, we share some thoughts on Eat the Rich, Coin, and The Next Millionaire Next Door, and finish off the show with some very impactful letters from listeners that we have received recently.   Key Points From This Episode:   Thoughts on the new Netflix show, Eat the Rich, and the story of GameStop. (0:01:58) What to expect on the podcast in November during Canadian Financial Literacy Month. (0:05:17) Reflections on the new film, Coin, and the founding of Coinbase. (0:08:08) Introducing the results from our recent survey on goals. (0:11:23) The process of building the survey and the questions we included. (0:18:22) A look over the basic data of the survey. (0:22:27) Popular objectives from the survey and how these were split across different demographics. (0:23:17) The answers that were given in relation to each specific question. (0:28:02) Developing best practices for goal setting for an advisor environment. (0:30:17) Limitations to our expertise in designing this survey and analyzing the data. (0:32:43) Running through the complete list of goals in order. (0:34:29) Introducing this week's book discussion on The Next Millionaire Next Door. (0:39:46) Standout findings from the research that was conducted for the book. (0:44:00) Utilization of an 'expected net worth test' in the book. (0:49:50) A look at some of the listener messages we have received lately. (0:52:29)     Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-223-a-financial-goals-master-list-n-310-discussion-thread/19742   Books From Today's Episode: The Next Millionaire Next Door — https://www.amazon.com/Next-Millionaire-Door-Enduring-Strategies/dp/1493035355   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/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Financial Goals Summary - https://www.pwlcapital.com/resources/goals-survey-summary/ 'Generating Objectives' — https://repository.library.georgetown.edu/handle/10822/707941 Tom McHugh YouTube Video — https://www.youtube.com/watch?v=MbaAkJHvCIw 'Generating Objectives' — https://repository.library.georgetown.edu/handle/10822/707941 Tom McHugh YouTube Video —https://www.youtube.com/watch?v=MbaAkJHvCIw

There is more and more research on the determinants and results of happiness in human life, and on the show today we get to do an amazing deep dive on this subject with social psychologist, and author of Happier Hour, Cassie Holmes. Cassie is currently running a course at UCLA Anderson School of Management called 'Applying the Science of Happiness to Life Design', and her book draws directly from the content of this course. In our chat, Cassie shares some definitive data on what actually influences our happiness in significant ways, how to invest and allocate your available time, approaches to offsetting hedonic adaptation, and the vital importance of relationships and exercise. Our guest also talks about popular misconceptions and cultural perceptions about success, and why assessing your values and purpose can make achieving more happiness much more realistic. It is here that we find Cassie's main thesis; that through reflection and tracking we can determine more accurately how to use our time in the different parts of our lives and increase our day-to-day happiness, so make sure to join us for this episode of the Rational Reminder.   Key Points From This Episode:   The science behind the important benefits of happiness. (0:02:17) Current research into the measurement of happiness. (0:04:27) Cassie talks about the roots of the course she teaches on happiness. (0:07:02) Misconceptions about what makes us happy and the lasting power of notions of success. (0:10:25) The cultural roots of our perceptions of happiness. (0:14:58) Determinants of happiness; Cassie shares the biggest factors in our emotional landscape. (0:20:16) Working towards a goal, time tracking, and entering flow states. (0:25:28) Happiness as a decision and as a disposition; how much control do we have? (0:30:26) How comparison undermines and robs us of happiness. (0:37:01) Cassie unpacks how to understand the role of relationships in our lives. (0:38:30) A story from Cassie illustrating the links between discretionary time and happiness. (0:43:35) Amounts of discretionary time to allocate to yourself each day. (0:49:39) The worst ways to use time and the activities that enhance feelings of loneliness. (0:52:02) Cassie's advice on how to avoid time poverty and what to refuse. (0:55:53) The dangers of an over-emphasis on productivity and urgency. (0:58:21) Aligning your values and purpose in the professional sphere of your life. (1:01:38) How the remote landscape and work-from-home model has impacted happiness. (1:03:03) Going over the exercises and assignments that Cassie finds to be most impactful for her students. (1:06:36) Cassie's definition of success and its relation to her clearly defined purpose. (1:11:33)

Of course, you want to protect your family and your savings from unforeseen consequences, but is life insurance the best option? Can life insurance be an investment rather than a cost? In today's episode of the Rational Reminder Podcast, we take a look at everything life insurance and dig into some hard-hitting research on the subject. We break down the various insurance products available and unravel the nuances regarding returns, dividends, and the associated fees. We discuss why there is so much confusion regarding returns and associated risk, how your contribution can affect your returns, and why you may not get the payout you expected. We also delve into what makes each insurance product different from the next, whether predictions on insurance policy returns are possible, and how insurance compares to other asset classes. If you're looking for insight into the potential tax benefits of life insurance and a breakdown of the different scenarios where life insurance is needed, this is the episode for you!   Key Points From This Episode:   The main topic of the episode: permanent life insurance. (0:04:29) Defining insurance and how it is typically structured. (0:04:44) 'Term life insurance' and how it works. (0:05:41) A brief outline of the differences between term insurance and permanent insurance. (0:07:37) Details about term life insurance and the benefits to the policyholder. (0:09:37) Another type of life insurance: universal life insurance. (0:11:05) How investments within a life insurance policy are designed. (0:13:20) An interesting insight Ben came across while researching insurance. (0:14:38) Non-participating whole life insurance and the associated cash value. (0:16:00) A breakdown of participating life insurance and what makes it different. (0:18:42) The basis for performance and premiums on participating insurance. (0:21:43) Whether or not it's possible to predict returns from insurance products. (0:25:25) Reasons for the obscurity surrounding insurance products and expected returns. (0:25:49) The policy illustration software that many insurance companies use. (0:29:35) Insight into post-tax returns of permanent insurance on death. (0:35:23) An overview of when you would need life insurance. (0:40:58) The long-term expected death benefits compared to other assets. (0:43:03) Insight into the commission incentive associated with insurance policies. (0:45:47) Highlights of a recent presentation that Ben gave at an IAFP conference. (0:46:53) Feedback received about the Jonathan Berk and Jules van Binsbergen episode. (0:49:01) A summary of recent news about rate changes and developments at Vanguard. (0:56:23) This week's review of The Art of Gathering, about meeting more effectively. (01:00:55) An honourable mention of another book, Your Investment Philosophy. (1:06:22)

Do you feel like you have a good grasp of financial markets? Think again! In this episode, we take a plunge into the world of financial markets with experts Jules van Binsbergen and Jonathan Berk. Jules is a Professor of Finance at the Wharton School of the University of Pennsylvania and Jonathan is a Professor of Finance at Stanford Graduate School of Business. They also host a popular podcast called Else Equal, which explores the science and strategy of making better financial decisions, and have written several academic papers that challenge the status quo. In our conversation, we discuss their research on the relationship between manager skill and fund performance, the best ways to measure performance, and reasons why benefits are in favour of the managers. We also explore the dogma surrounding mutual funds, the differences between active and passive management, and how to measure efficient capital markets. Listeners will also hear perspectives that challenge their understanding of capital markets and viewpoints that completely disagree with previous guests. Although we have covered this topic before in previous episodes, this conversation will fundamentally change the way you view financial markets and how to think about them.   Key Points From This Episode:   What information fund performance contains about manager skill. (0:04:04) Reasons why manager skill and performance are unrelated. (0:04:59) We learn how manager skills should be measured. (0:06:57) How to choose the appropriate benchmark to measure value added. (0:09:26) Find out if you can use factor-mimicking portfolios to measure risk-adjusted returns. (0:12:05) Whether funds that directly target risk factors can be used as an investable benchmark. (0:16:35) What the skill of active managers are when skill is measured as value-added. (0:20:52) The proportion of value-added between security selection and market timing. (0:23:20) Discussion about how persistence manifests when it is measured by value-added. (0:25:43) Find out if investors should analyze mutual fund companies as opposed to managers. (0:32:36) Discover why research has focused on individual security pricing and not on evaluating manager skill. (0:34:25) We unpack the reasons why it's a zero net alpha as opposed to a negative net alpha in equilibrium. (0:38:19) We delve into why the research took so long to apply rational expectations to fund investors as with the stock market. (0:42:46) An explanation of how equilibrium zero net alpha fits into Bill Sharpe's arithmetic of active management. (0:48:16) Who benefits from the high amount of skill available within the sector. (0:51:11) Whether the increase in millionaires around the world drives inequality. (0:56:12) Hear if it is possible to identify skilled fund managers before the benefits of their skills are absorbed by fund size. (01:01:41) The implications on efficient market hypothesis for the stock market. (01:05:36) Advice for investors, considering that the benefits of skill are in favour of managers. (01:08:37) Details about their research on how multi-factor asset pricing models are not representative of risk. (01:12:45) We end the show by learning how our guests define success in their lives. (01:19:08)    Links From Today's Episode:   Jules van Binsbergen — https://sites.google.com/view/jules-van-binsbergen/ Jules van Binsbergen on LinkedIn — https://www.linkedin.com/in/jules-van-binsbergen-a7b21a2/ Jules van Binsbergen on Google Scholar — https://scholar.google.com/citations/ Wharton School of the University of Pennsylvania — https://www.wharton.upenn.edu/ Jonathan Berk — https://www.gsb.stanford.edu/faculty-research/faculty/jonathan-b-berk Jonathan Berk on LinkedIn — https://www.linkedin.com/in/jonathan-berk-07874a3b/ Jonathan Berk on Google Scholar — https://scholar.google.com/citations/ Stanford Graduate School of Business — https://www.gsb.stanford.edu/ Else Equal: Making Better Decisions — https://www.gsb.stanford.edu/business-podcasts/all-else-equal-making-better-decisions Passive in Name Only — https://heinonline.org/HOL/LandingPage/ The Emperor of All Maladies — https://www.amazon.com/Emperor-All-Maladies-Biography-Cancer/dp/1439170916 Unsettled — https://www.amazon.com/Unsettled-Climate-Science-Doesnt-Matters/dp/1950665798 'Episode 200 with Prof. Eugene Fama' — https://podcasts.google.com/feed/aHR0cHM6Ly9yYXRpb25hbHJlbWluZGVyLmxpYnN5bi5jb20vcnNz/episode/MzA2MjM2OTctOTc5Yy00MDU4LWE3YzMtYTdmMGU4NGQ0Y2Jj?sa=X&ved=0CAIQuIEEahgKEwjI27ng_rH6AhUAAAAAHQAAAAAQsQQ 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/?hl=en Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on Twitter — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on Twitter — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Critics of blockchain often say that it is nothing more than a database, but today's guest, Ari Juels, has a different opinion. His technical expertise (he is a Professor of Computer Science at Cornell Tech), combined with his ability to understand both sides of a divisive topic like this one, make for a very insightful conversation about Bitcoin, NFTs, and smart contracts. We talk about the reasons for the valid skepticism that surrounds blockchain technology, the various reasons that Ari believes that it is a powerful, useful tool, despite its downfalls, pyramid schemes, decentralized exchanges and more!   Key Points From This Episode:   The significance of the Bitcoin innovation to Ari's field of study. (0:03:40) What piqued Ari's initial interest in digital currency. (0:04:46) Ari explains the difference between permission and permissionless blockchains. (0:06:27) Comparing a permission blockchain with a distributed-append-only database with authorized contributors. (0:08:34) A number of reasons why permissionless blockchains have been so widely embraced (despite Ari's initial prediction to the contrary). (0:12:24) Fraud in the cryptocurrency space; Ari shares his thoughts. (0:14:28) The benefits of the cultural phenomenon of NFTs. (0:19:25) Examples of NFT-related issues that still need to be addressed. (0:26:04) How smart contracts can be used by criminals to their advantage. (0:30:09) Why smart contracts are well suited for compliance. (0:32:02) An example of a smart contract pyramid scheme. (0:35:48) Some of the pros and cons of the inflexibility of smart contracts. (0:41:09) What flash loans are and what they can be used for. (0:46:11) Understanding the value of oracle systems. (0:50:04) How the Candid system that Ari's group developed helps to mitigate the problem of lost Bitcoin keys. (0:57:04) Ari explains the advantages and disadvantages of a decentralized exchange. (01:01:19) How the blockchain has improved code writing. (01:07:57) The importance of balancing privacy and accountability in DeFi systems. (01:09:38) Ari's thoughts about the future potential of blockchain technology. (01:14:03) The biggest concerns that Ari has about the blockchain space. (01:15:24) Why skepticism about blockchain technology is valid. (01:17:31) The facet of the blockchain space that Ari is most excited about. (01:19:51)     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/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Ari Juels on Twitter — https://twitter.com/AriJuels Ari Juels — https://www.arijuels.com/ The Ring of Gyges: Using Smart Contracts for Crime — http://www.arijuels.com/wp-content/uploads/2013/09/Gyges.pdf NFTs for Art and Collectables: Primer and Outlook — https://www.arijuels.com/wp-content/uploads/2022/04/NFTs__Primer_and_Outlook.pdf 'Huge mess of theft and fraud:' artists sound alarm as NFT crime proliferates — https://www.theguardian.com/global/2022/jan/29/huge-mess-of-theft-artists-sound-alarm-theft-nfts-proliferates Incomplete Contracts and Control — https://www.nobelprize.org/uploads/2018/06/hart-lecture.pdf Chainlink 2.0: Next Steps in the Evolution of Decentralized Oracle Networks — https://research.chain.link/whitepaper-v2.pdf?_ga=2.99068702.124468793.1661870135-1990502175.1661870135 Flash Boys 2.0: Frontrunning, Transaction Reordering, and Consensus Instability in Decentralized Exchanges — https://arxiv.org/pdf/1904.05234.pdf Themis: Fast, Strong Order-Fairness in Byzantine Consensus — https://eprint.iacr.org/2021/1465.pdf Cleaning Up Cryptocurrency: The Energy Impacts of Blockchains — https://energycommerce.house.gov/sites/democrats.energycommerce.house.gov/files/documents/Witness%20Testimony_Juels_OI_2022.01.20.pdf The Seven Grand Challenges — https://www.initc3.org/projects.html

The type of assets which usually come to mind when considering investments are stocks, bonds, or cash, but what are the alternatives? And what kind of returns do alternative asset classes offer? In today's episode, we delve into the returns which can be expected from alternative asset classes such as private equity, venture capital, angel investing, private credit, hedge funds, direct real estate, and cryptocurrencies. Hear an in-depth analysis based on empirical studies and the expertise of your hosts, Ben and Cameron, to discover whether there is any merit to alternative asset classes as investments. We unpack the extra layer of complexity associated with predicting returns on alternative assets, how to approach calculating returns, and why the associated fees are an essential consideration. We also hear details about an interesting conference Cameron recently attended and briefly recap cryptocurrencies as an investment. You'll also hear our conversation with our 22 in 22 reading challenge guest David Senra about his reading habits, the books that most inspire him, and his advice for people who want to read more.   Key Points From This Episode:   Outline of today's main topic: expected returns for alternative asset classes. (0:01:51) Why predicting returns of alternative asset classes has an extra layer of complexity. (0:03:18) How to approach estimating the returns of private equity, specifically buyouts. (0:05:04) We unpack historical data regarding the returns of private equity. (0:07:35) Calculating the returns on venture capital and reasons to be cautious about it as an asset class. (0:16:35) The distribution of returns from venture capital based on the market numbers. (0:20:09) Learn what angel investing is and its associated returns. (0:20:54) What returns on angel investing are most dependent on and why. (0:22:21) The different types and the associated returns. (0:25:23) Hear about the fees associated with private credit. (0:27:42) We unravel the concept of hedge funds, the associated fees, and expected returns. (0:29:29) A limiting factor on hedge funds: capacity constraints. (0:33:38) The takeaway regarding private real estate investments. (0:36:25) How private real estate is valued as an asset class. (0:37:48) Cryptocurrencies and the returns to be expected. (0:39:34) We discuss some of the key takeaways from today's main topic. (0:43:30) We follow up on a previous topic we covered: financial literacy. (0:45:10) Find out about an interesting conference that Cameron recently attended. (0:48:46) Hear about the recent reviews we have received about the podcast. (0:57:58) We introduce our 22 and 22 reading challenge guest, David Senra. (01:00:15) Where David's passion for reading about founders originates from. (01:02:25) David shares details about his reading habits. (01:05:57) His approach to finding founders that he wants to read about. (01:08:49) David's approach to note taking while reading a book. (01:11:07) We learn about the stories that have impacted David the most. (01:13:53) He explains the benefits of reading a book for a second time. (01:17:11) Books about founders that he thinks everyone should read. (01:19:20) David's observation of the role of luck in a founder's success story. (01:23:19) Advice he has for people who want to read more. (01:29:33)   Links From Today's Episode:   AQR Capital Management — https://www.aqr.com/ BlackRock Asset Management — https://www.blackrock.com Bank of America — https://www.bankofamerica.com/ 'The risk and return of venture capital' — https://www.sciencedirect.com/science/article/pii/S0304405X04001564 'Performance of Private Credit Funds: A First Look' — https://jai.pm-research.com/content/21/2/31.short 'Do Hedge Funds Hedge?' — https://jpm.pm-research.com/content/28/1/6.short 'The Performance of Hedge Fund Performance Fees' — https://www.nber.org/papers/w27454 'Higher risk, lower returns: What hedge fund investors really earn' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X1100016X 'Another Look at Private Real Estate Returns by Strategy' — https://jpm.pm-research.com/content/45/7/95/tab-pdf-trialist 'The Characteristics and Portfolio Behavior of Bitcoin Investors: Evidence from Indirect Cryptocurrency Investments' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3501549 'Beliefs and the Disposition Effect' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3516567 'Once Bitten, Twice Shy: The Power of Personal Experiences in Risk Taking' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2506627 S&P Global FinLit Survey — https://gflec.org/initiatives/sp-global-finlit-survey/ Future Proof Conference — https://futureproof.advisorcircle.com/ Invest Like the Best Podcast — https://investlikethebest.libsyn.com/ David Senra on LinkedIn — https://www.linkedin.com/in/david-senra-278843236/ David Senra on Twitter — https://twitter.com/FoundersPodcast?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor David Senra on Facebook — https://www.facebook.com/david.senra.1 The Founders Podcast — https://founders.simplecast.com/ A Triumph of Genius — https://www.amazon.com/Triumph-Genius-Edwin-Polaroid-Patent/dp/1627227695 Cable Cowboy — https://www.amazon.com/Cable-Cowboy-Malone-Modern-Business/ Titan — https://www.amazon.com/Rare-Chernow-Titan-Life-Rockefeller/ A Man for All Markets — https://www.amazon.com/Man-All-Markets-Street-Dealer/ Against the Odds — https://www.amazon.com/Against-Odds/ Estee: A Success Story — https://www.amazon.com/Estee-Success-Story-Lauder/ 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/?hl=en Rational Reminder on YouTube — https://www.youtube.com/channel/ Ben Felix — https://www.pwlcapital.com/author/benjamin-felix/ Ben on Twitter — https://twitter.com/benjaminwfelix Ben on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on Twitter — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

In this episode, we speak to Chris DeRose, software developer and former co-host of the Bitcoin Uncensored podcast, about both the downsides and upsides of cryptocurrencies and the associated technologies. We took the time to dive deep into the subject with Chris and learned about some of the common misconceptions about blockchain technology, the value of cryptocurrencies to society, ways in which the crypto space has evolved, using economic theories to understand financial systems, the definition of money, what he thinks about the associated technologies, the role blockchain technology can have in society and why cryptocurrencies will not replace the dollar.   Key Points From This Episode:   The motivation behind Chris's decision to get involved with Bitcoin in 2010. (0:00:48) How the Bitcoin community has evolved since Chris got involved in 2010. (0:03:00) Some of the common misconceptions associated with blockchain technology. (0:06:03) Whether new technologies pushing back against regulations is common. (0:08:08) Ways in which Chris's perception of crypto has changed since he discovered it. (0:09:53) Chris explains what his definition of money is. (0:11:19) Find out what Bitcoin actually is, if it is not money. (0:14:39) Aspects of the current financial system that Bitcoin improves on. (0:16:42) A discussion around the recent controversy regarding Canadian trucker convoys. (0:17:54) Some of the problems anonymity associated with cryptocurrencies causes. (0:20:33) Why not being able to verify transactions is a problem for privacy coins. (0:21:18) A discussion about the US monetary system and the US dollar. (0:24:12) Chris discusses the reliance on economic theories to understand the economy. (0:30:59) What he thinks about crypto markets through the lens of market efficiency. (0:32:26) Whether crypto markets can be manipulated or not. (0:33:49) Why Chris thinks Bitcoin will not make traditional regulations around payments obsolete. (0:35:32) Another discussion regarding the economy through a theoretical lens. (0:39:15) Reasons why Chris thinks cryptocurrencies have value. (0:40:32) Chris explains what fungible value is. (0:45:49) Why Bitcoin is regarded as digital gold. (0:49:25) How possible it is for Bitcoin to replace the dollar. (0:50:46) Chris tells us if he thinks Bitcoin and Ethereum are (0:53:39) Why Chris thinks there is a mythical aspect to the economy. (1:00:49) We find out if Chris thinks blockchains are immutable. (1:02:29) Immutability: find out if this is a good aspect of cryptocurrencies. (1:03:37) An explanation of consensus and if proof of work alternatives offer solutions. (1:04:33) Reasons why he thinks Vitalik Buterin is a charlatan. (1:09:22) Chris tells us if Vitalik's claims are living-up to the expectations. (1:12:41) The role that blockchains can play regarding international money transfers. (1:15:22) Outline of how ransomware could be beneficial to society. (1:16:20) How possible is it to see nation-states existing only on the blockchain. (1:17:43) Learn what value private blockchains offer. (1:18:37) What are the most promising crypto products/technologies in Chris's opinion. (1:19:49) The technical aspects of NFTs are explained. (1:21:23) Find out what his opinion on DAOs is. (1:24:20) Examples of the best application of smart contracts that Chris has seen. (1:25:13) Whether cryptocurrencies and public blockchains are revolutionary technology. (1:27:38) What role cryptocurrencies can play in reducing wealth inequality. (1:28:35)   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/  Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Chris DeRose — http://www.chrisderose.com

The gender pay gap is still a persistent problem in today's society, reflecting the overall state of gender inequality. It is full of complexity and comprises different facets, making it hard to understand the overall situation. We have covered the topic before, but in this episode, we go into a whole new level of detail. To help us unpack the nuance of this essential topic is Colleen Ammerman, Director of the Gender Initiative at Harvard Business School. She is also the author of Glass Half-Broken, providing readers with hard evidence and detailed analysis of the different drivers of gender inequality in the workplace. We cover the basics of gender inequality, such as how it currently exists, how it manifests in the workplace, and the subtle and less obvious ways it occurs. We also find out whether men are generally aware of the problem, the obstacles that prevent men from taking action, and the power men have to initiate positive change within organizations. Colleen also untangles the intricacies of the topic, explaining why gender equality is still a pervasive problem, how gender inequality extends to promotions, how management explains away the issue, how gender equality is also beneficial for men, and the influence of perceived gender roles in career decisions. Tune in and learn about the intricacies of gender inequality, as well as the possible solutions, with Colleen Ammerman!   Key Points From This Episode:   We start by finding out what the current situation is for women in the workplace. (0:03:22) How to quantify gender inequality symptoms in the workplace. (0:04:12) Whether there are similar effects of gender inequality for men of colour. (0:05:03) Why people might still deny that there is a problem concerning gender inequality. (0:05:35) An outline of the career obstacles that uniquely affect women. (0:07:18) Find out if men are aware that women have additional barriers to overcome. (0:12:03) Reasons why women may leave the workplace before retaining a leadership role. (0:14:05) Colleen explains how we know from the data that women have less interest in higher-paying technical jobs. (0:16:14) Learn if the adjusted gender pay gap data diminish the findings of using unadjusted gender pay gap data. (0:18:47) Ways in which the gender pay gap extends to promotions and compensation. (0:20:34) Colleen tells us why it is important for society to strive for more women in leadership positions. (0:21:26) The general response from men to workplace diversity initiatives. (0:22:07) What men should be doing in the workplace to help reduce inequalities that exist. (0:26:25) The ways corporate directors explain the underrepresentation of women and people of colour on boards. (0:29:15) Why we don't see more men taking action to combat gender inequality issues. (0:31:05) She explains what homophily is and its role in workplace diversity. (0:33:13) How the language in job descriptions determines who applies for the position. (0:37:04) Whether there is evidence to support the notion that women prefer a growth-mindset environment to a fixed-mindset environment. (0:40:00) What men, who are not in leadership positions, can do to overcome gender inequality problems in the workplace. (0:43:02) What companies need to be aware of regarding hybrid and remote-work models. (0:47:14) The steps men can take to overcome gender inequality outside of the workplace. (0:50:29) We learn what managers can do to attract more diverse candidates. (0:52:52) Whether there is data on the effect that gender has on hiring decisions. (0:54:22) How gender norms or biases affect employee evaluation. (0:56:01) Actions that women can take to advance their careers in an unequal environment. (0:59:53) Colleen explains the issues of negotiations for men and women. (01:04:03) The role parents can play to combat the issues of gender parity. (01:05:13) We end the episode by learning how Colleen defines success in her life. (01:06:03)   Book From Today's Episode: Glass Half-Broken: Shattering the Barriers That Still Hold Women Back at Work — https://amzn.to/3xbp2CG   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/ Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on Twitter — https://twitter.com/CameronPassmore Colleen Ammerman on Twitter — https://twitter.com/colleenammerman Colleen Ammerman on LinkedIn — https://www.linkedin.com/in/colleenammerman/

Today, we speak to Vili Lehdonvirta, Professor of Economics, Sociology, and Digital Social Research at the Oxford Internet Institute at the University of Oxford. Professor Lehdonvirta is a social scientist whose research focuses on ways digital technologies are reshaping the organization of economies, including their associated social effects. He is also the author of two books, Cloud Empires and Virtual Economies, which provide readers with an in-depth look into the power that crypto platforms hold and a well-rounded characterization of digital markets. In this episode, we talk about the ideological underpinnings of crypto and the role of governance in making cryptocurrencies possible. We discuss the role of states in scaling markets, how states and platform companies differ, the impacts of smart contracts on governance issues, and how control and power are centralized within crypto markets, as well as the social implications of blockchain technology. Listeners will also learn about past controversies within the crypto space, why people are still needed within crypto, and the blockchain paradox, plus more!   Key Points From This Episode:   We start by learning about John Perry Barlow's vision for cyberspace. [0:05:06] Find out about the role that states play in markets. [0:07:03] How markets function at scale if the state is not involved. [0:07:55] Professor Lehdonvirta's view on whether governance may precede markets. [0:08:59] The role massive platform companies play in today's economy. [0:09:44] Ways in which states and platform companies differ. [0:10:42] Why he thinks public blockchain technology has garnered so much attention. [0:11:27] An explanation of the influence John Perry Barlow's vision had on cryptocurrencies. [0:13:04] Learn what a Kleroterion is and the role it played in Athenian democracy. [0:14:01] Professor Lehdonvirta shares what it means to 'trust in the code.' [0:17:05] An outline of the new properties smart contracts created. [0:18:59] Social and economic implications of unstoppable censorship-resistant contracts. [0:21:08] A brief rundown of how impactful smart contracts have been. [0:22:27] How the trustless and unstoppable claims of cryptocurrencies and DAOs were affected by the DAO story. [0:24:20] Whether the Bitcoin block-size conflict affected the perception of crypto as a trustless system. [0:28:17] We find out the current size of the Bitcoin development team. [0:31:05] Other examples of human discretion affecting the direction of Bitcoin. [0:31:46] Professor Lehdonvirta explains the strategies used to preserve trustlessness after the human interventions took place. [0:35:16] Details about an important strategy: the appeal to technical expertise. [0:38:53] Find out if the ability to fork blockchain networks restores trustless claims of crypto. [0:39:42] Whether users of a blockchain network, who are not miners, can influence crypto markets. [0:45:02] Professor Lehdonvirta's opinion on who has the most control over cryptocurrency networks. [0:49:35] Hear what aspect of Athenian democracy Nakamoto failed to replicate. [0:54:26] We learn what the blockchain paradox is (also known as the governance paradox). [0:56:50] Find out if Professor Lehdonvirta thinks technology changes the fundamental aspects which shape how societies are organized. [01:00:11] Find out if blockchain has eliminated the need for nation-states. [01:02:11] What cryptocurrencies have accomplished since their inception. [01:03:40]

What impact does financial literacy have on decision-making and financial outcomes? How is financial literacy tested? In this episode, we help listeners understand why financial literacy is vital in terms of financial well-being. Learn the definition of financial literacy, how financial literacy relates to economic outcomes, the differences between people who are financially literate and those that are not, and the contribution of financial knowledge to human capital. We discuss the topic through the perspective of several papers that will challenge how you think about financial literacy and the questions to ask yourself to test your financial understanding. Then, we talk about this week's book review regarding the effects of technology on communication and the various distractions associated with a traditional work environment. We also go through the various reviews received about the show and what we have planned for the Rational Reminder community.   Key Points From This Episode:   Breakdown of changes made to the format of current and future episodes. [0:01:49] Introduction to today's topic: expected returns of financial literacy. [0:07:34] Learn the definition of financial literacy. [0:09:36] The predictive power of financial literacy concerning financial outcomes. [0:10:27] What financially literate people are better at and how it increases human capital. [0:11:34] The cost of financial ignorance to the individual. [0:13:06] Overview of an interesting paper concerning active investing. [0:14:43] A dangerous observation within the financial literacy research [0:16:34] Find out how financial literacy is measured. [0:20:10] Whether it is safer to put your money into one business or to invest. [0:21:23] An important aspect of financial literacy is discussed: inflation. [0:22:34] Why numeracy is also a fundamental aspect of financial literacy. [0:24:25] We go through the topic of compound interest in relation to financial literacy. [0:24:57] Hear what the global distribution of financial literacy is. [0:27:04] How to approach the financial literacy problem from a policy perspective. [0:27:59] We review the book, Reclaiming Conversation, and discuss communication problems technology causes. [0:35:08] Examples of the different distractions associated with office spaces. [0:41:55] Reasons why meetings should be thought out with clear objectives. [0:44:45] Ways in which your phone can distract you from deep work. [0:46:36] Steps that social media companies could take to reduce screen time. [0:51:12] We go through recent reviews and suggestions received about the show. [0:52:22]

Welcome to our limited edition crypto series. In this episode, we welcome back Professor John Cochrane, who was a guest on the Rational Reminder series, to talk everything money. Professor Cochrane has immense experience on the topic and is a Senior Fellow at the Hoover Institution at Stanford, as well as Stanford Institute for Economic Policy Research. He is also a Research Associate of the National Bureau of Economic Research, an adjunct scholar at the Cato Institute, and was a professor of finance at the University of Chicago Booth School of Business. He is also the author of several books and writes a popular blog called The Grumpy Economist. In this episode, we take a deep dive into the concept of money. We learn what numeraire is, how a numeraire is defined, and explore some of the intricacies of money. We also discuss and unpack the differences between fiscal theory and monetary theory, along with other ideas regarding the value of money. We then delve into how all this relates to cryptocurrencies, what future he sees for crypto, and much more. Tuning into this episode, listeners will challenge their thinking about the economy and how economic relations work.   Key Points From This Episode:   Professor John Cochrane explains to us the short version of fiscal theory. [0:04:35] Find out the definition of numeraire and how it is determined within an economy. [0:05:21] Learn whether government backing is required to define a numeraire. [0:07:05] What Professor John Cochrane thinks is the primary function of money. [0:08:55] Whether money needs to be a medium of exchange that stores value. [0:09:45] He explains why money is valuable according to fiscal theory. [0:11:22] The role of taxes in adding to the value of money according to fiscal theory. [0:12:59] How fiscal theory's explanation for why money is valuable differs from the monetarist explanation. [0:13:33] Find out whether the term 'fiat' is still a good adjective to describe money in a fiscal world. [0:17:24] We learn if 'fiat' is an appropriate term to describe money according to the monetarist view. [0:19:10] What the government debt valuation equations suggest about the stability of the price level. [0:20:21] An outline of what happens when discount rates become volatile. [0:23:29] Ways in which sticky prices affect the stability of the price level. [0:27:24] Whether the supply of money is still a useful perspective today. [0:31:01] Why monetarism theory has gained so much traction. [0:33:51] He unpacks the purpose of monetarism theory. [0:35:21] How fiscal and monetary actions set expected and unexpected inflation regarding fiscal theory. [0:37:10] The level of fiscal and monetary coordination required for price stability. [0:39:58] Whether the level of coordination needed is realistic considering the independence of the central bank. [0:42:10] Ways in which monetary policy debt sales and fiscal policy debt sales differ. [0:45:02] What effect the size of the central bank's balance sheet has on the price level. [0:49:52] Repercussions of inside money issued by private banks on the price level. [0:53:06] Statistical tests available that can be used to prove fiscal theory. [0:58:55] Find out why COVID-related effects on the economy lead to inflation. [1:04:17] Breakdown of the fiscal explanation for the US inflation of the 1970s. [1:11:24] Reasons why inflation targets have been successful in some countries and not in others. [1:16:14] A discussion about whether we have always lived in a fiscal-based economy. [1:19:24] Whether citizens should behave differently living in a fiscal world. [1:27:51] How the value of the dollar will be affected if more people buy cryptocurrencies. [1:28:49] Professor John Cochrane shares if he thinks anonymous digital cash is a good thing. [1:30:51] We discuss what the future has in store with regard to fiscal theory. [1:39:31]

The indexing revolution is something that underpins all of our work here at the Rational Reminder and is a subject we reference in different ways in almost all of our episodes. Today we have a special exploration of this history, as we welcome Gus Sauter, the former long-time CIO of Vanguard, to talk about his incredible history at the firm, the role he played in the rise of the company, and its huge role in reforming the investing landscape. We also hear from our guest about his experience of working on numerous investing committees since he retired about a decade ago. One of the most notable things about this conversation is Gus' ability to weigh both sides of the arguments about active management, and he does a great job of balancing what he sees as the potential positives of this way of doing things. This is all strengthen by the way he presents these ideas as a powerful mix of stories, evidence, and the research he himself has conducted. To all our listeners, be sure to listen right to the end of the episode, as after the official conversation ends, Gus shared a few more thoughts on Jack Bogle and ETFs as a bonus.   Key Points From This Episode: (0:03:49) Looking back at the part that indexing played at Vanguard when Gus started at the company. (0:04:20) The rise of indexing in the subsequent years and the pivotal moments in this process. (0:06:28) Initial ways that indexing was denigrated by Vanguard's competition. (0:08:36) How the narrative changed around indexing when its utility became undeniable. (0:09:10) The role of the University of Chicago in the growth of indexing early on. (0:11:11) Changes in the active management space over the last few decades. (0:12:04) Considering the role of an active manager in today's climate. (0:14:43) Gus' opinion on balancing the strengths of indexing and active management. (0:20:48) Differences between traditional active management and factor investing, and Gus' preferences. (0:29:09) A look at Vanguard's recent forays into factor-based funds. (0:31:00) Recounting Jack Bogle's thoughts on active management at different points. (0:32:27) Evaluating active managers; weighing the processes and their maintenance. (0:35:09) Vanguard's relative low fees and how this impacted their success. (0:36:35) How Vanguard went about selecting investment managers. (0:38:44) Gus talks about the structure of Vanguard; what it meant to be a truly mutual company. (0:41:19) Thoughts on home country bias and global diversification in light of countries like Canada. (0:45:07) Approaches to private equity; Gus' recommendations for the average investor. (0:48:30) Access to private markets and the prohibitive effect of high fees. (0:51:25) Accounting for the recent large flows towards private equity and the current institutional philosophy around it. (0:54:10) Gus talks about the important questions he asks when joining a new investment committee. (0:56:30) Comments on hedge funds and liquid assets, and their decreased returns. (0:59:50) The psychological benefits of holding a single fund. (1:02:44) Gus comments on how direct indexing might figure into the future. (1:09:20) The education of investors; Gus talks about where he believes Vanguard's biggest success lies. (1:11:48) Reflection on the impact of introducing the implementation of ETFs at Vanguard. (1:12:56) Areas that still excite Gus about investing; the good and bad sides of increased opportunity. (1:14:48) Gus' definition of success and his gratitude for finding a home at Vanguard. (1:17:07) Bonus content: Gus talks about Jack Bogle's relationships with ETFs.

Welcome to another episode from our limited edition crypto series. The previous guests we have spoken to about crypto generally have experience in economics, finance, or technology. In this episode, we have a look at crypto through a legal lens with Professor William Magnuson, an Associate Professor of Law at Texas A&M University School of Law. He is also the author of Blockchain Democracy, which provides readers with a guide into the world of blockchain and Bitcoin, and highlights the reasons for their growing popularity. In our conversation, we delve into everything law and order within the crypto world as Professor Magnuson explains the causes of crime, the jurisdiction of crypto, the impact of decentralized cryptocurrency on the legal system, and how to overcome the legal challenges surrounding crypto. We also talk about the underlying ideology of crypto, the origins of cypherpunks, the people who are being negatively affected by, mechanisms to enforce regulations, and much more. Tune in to learn more about crypto and blockchain through the lens of the law with Professor Magnuson! Key Points From This Episode: A brief overview of the political philosophies of Thomas Hobbes and John Locke. [0:02:48] Find out which of the two political philosophies is closer to reality. [0:04:55] What it means for political or economic systems to be decentralized. [0:05:26] An overview of the advantages and disadvantages of a decentralized system. [0:07:36] Causes of a decentralized system to become centralized. [0:09:54] Where power in an initially decentralized system tends to centralize. [0:11:38] The systems that democracies use to maintain a desired level of decentralization. [0:12:33] How close the underlying political philosophy of Bitcoin falls to the philosophies of Locke and Hobbes. [0:13:34] We learn about the origins of cypherpunks and the associated ideology. [0:14:55] Whether the current state of our world resembles the dystopian future that the cypherpunks imagined. [0:16:41] Why digital cash was so important to cypherpunks and why early attempts failed. [0:17:36] The relationship between anonymity and crime is explained. [0:20:16] What role crime has played in the development and proliferation of cryptocurrencies. [0:22:48] Why comparing cryptocurrency to cash as a similar mechanism for crime is incorrect. [0:25:53] Professor Magnuson explains how social norms affect criminal behaviour. [0:27:48] He outlines the norms seen empirically within the blockchain communities. [0:30:12] Challenges in applying existing laws and regulations to cryptocurrencies. [0:33:04] Where cryptocurrencies fall under current regulatory and legal interpretations. [0:37:44] Whether cryptocurrencies are a regulation problem or a law problem. [0:39:43] How to enforce regulations and laws for cryptocurrencies. [0:40:44] He tells us if public blockchains jeopardize the existing legal system and democracy. [0:43:17] The costs of lightly regulated or unregulated markets in terms of capital allocation. [0:47:11] Who is bearing the cost of unregulated markets. [0:51:09] Hear what he thinks blockchain's greatest accomplishments are so far. [0:51:36] We end the show by hearing whether professor Magnuson thinks it is a revolutionary technology. [0:53:07]

We start the show with a brief highlight of recent episodes, upcoming guests, and feedback we have received about the show. We then review the book Running Remote, which provides evidence for the benefits of working remotely and asynchronous management. We also outline the three essential principles of an asynchronous mindset. We discuss the positives and benefits of remote work, why hybrid work is a flawed approach, and how to recreate face-to-face meetings in a remote world. We also give listeners a breakdown of an interesting journal article about inferring stock duration and equity trades, including key takeaways from the papers. We then welcome our special guest, Harley Finkelstein, to talk about the role that reading plays in his life. Harley is a lawyer, entrepreneur, and the President of Shopify and uses what he reads to push him further in his professional life. In our conversation, we learn the role reading has played in Shopify's culture, what his favourite books are, and inner details about his reading habit. Tune in for another jam-packed episode!   Key Points From This Episode:   We start the show with a recap of previous episodes and upcoming guests. [0:00:00] A brief highlight of some of the reviews we have received about the show. [0:03:41] An update on the Rational Reminder 22 and 22 reading challenge. [0:06:35] This week's review of the book, Running Remote. [0:09:24] The three fundamental principles of the asynchronous mindset. [0:16:58] Hear what the seven deadly sins are regarding remote team transitions. [0:24:35] Cameron shares a compelling paragraph from the book, Running Remote. [0:28:04] Learn a mind-blowing statistic Cameron read in a Bloomberg article. [0:32:31] Ben breaks down a journal article about inferring stock duration. [0:33:47] Another interesting paper regarding the retail price of equity trades. [0:44:10] Introduction to our guest Harley Finkelstein to talk about our 22 and 22 challenge. [0:47:20] Harley shares details about his reading habit. [0:47:50] How he incorporates what he has learned from reading into his professional life. [0:49:57] Ways in which Harley finds interesting books to read. [0:51:58] The role reading has played in Shopify's culture and work ethic. [0:53:57] What books have had the biggest impact on him. [0:58:12] Find out whether his daughters have embraced his love for books. [1:02:29] Advice that Harley has for people who want to read more. [1:04:32]

What is the real value of cryptocurrencies? Can crypto technology be applied to traditional financial markets? In this episode, we welcome David Gerard, a technologist and author of the books Libra Shrugged and Attack of the 50 Foot Blockchain.  He uses his skills as a journalist to investigate the uses and hype around cryptocurrencies and is an outspoken skeptic of the technology. Although not originally from the technology sector, he has become an authority on the topic and has briefed the UK House of Commons Science and Technology Committee on the technology. He also runs a blog covering important aspects of the cryptocurrency space. In today's conversation, we learn some harsh realities about the benefits of cryptocurrencies and why they will not last in the long term. We learn what the real value of crypto-markets is, why he considers it to be a Ponzi scheme, what needs to change about cryptocurrencies, whether there are any benefits to the technology and the role of financial journalism in the crypto space. Listen as we unravel the political ideology which underpins crypto and whether it can be separated from the technology. We also discuss the outcome of El Salvador's bitcoin experiment and why it did not work. We also learn the reasons behind the recent crash in some crypto markets and find out which book David thinks everyone should read.   Key Points From This Episode:   We start the show by finding out the real dollar value of crypto markets. [0:03:45] The role financial journalism played in getting crypto to where it is today. [0:06:02] Reasons why he does not trust the value of cryptocurrencies. [0:11:04] Why he thinks cryptocurrency journalism is not credible. [0:12:00] He explains Bitcoin's underlying political ideology and the associated problems. [0:13:25] The classic debate of who should have control over financial markets. [0:16:41] Whether it is possible to remove the political ideology from crypto-technology. [0:17:34] What the most important aspect of cryptocurrency technology is. [0:18:24] The reasoning behind the argument, 'You just don't understand the technology.' [0:21:52] How to make cryptocurrency work in traditional financial markets. [0:23:50] Why the recent crash in the cryptocurrency markets occurred. [0:28:03] Find out if cryptocurrencies can be beneficial for the 'bankless'. [0:30:25] We discuss the outcome of El Salvador's bitcoin experiment. [0:32:20] He outlines why Salvadorans did not like the proposed bitcoin market. [0:38:11] Learn what the UK House of Commons Science and Technology Committee wanted to understand about cryptocurrency. [0:41:23] How his views on cryptocurrency were received by the commission. [0:43:46] An example of a crypto-based business that was operating illegally. [0:45:01] Whether NFTs will allow artists and musicians to keep more financial gains from their work. [0:46:13] We discuss whether crypto-based technologies will improve over time. [0:47:57] Examples of good uses for crypto and blockchain technology. [0:49:22] What would need to happen for David to change his opinion on crypto. [0:52:25]

Identity helps shape our perception and thinking about the world around us. What is identity? How does it influence our perspective? These are some of the questions we answer in this episode of the Rational Reminder Podcast. In this episode, we talk with Jay Van Bavel, an Associate Professor of Psychology and Neuroscience at the University of New York, an affiliate at the Stern School of Business in Management and Organizations, and Director of the Social Identity and Morality Lab. He is also co-author of the book The Power of Us, which provides readers with cutting-edge research in psychology and neuroscience to explain how identity really works and how we can harness it for the better. His research focuses on how group identities, moral values, and political beliefs shape the mind, brain, and behaviour. He has published over 100 academic publications on the topic and has won various awards for his research achievements. In our conversation, we unpack the complexity of identity and its influence on our perspective and decision-making abilities. We cover aspects such as the differences between self-identity and group identity, how to be aware of your biases, the role that leaders play in influencing identity, and how identity plays out in social relationships. We also talk about how group identity interacts with democracy and the role of social media in shaping our identity, as well as learn some practical advice to help broaden your perspective.   Key Points From This Episode:   We start the show by learning the basics of group identity. [0:03:29] How group identity differs from self-identity. [0:04:04] He explains how impactful group identity is to individual identity. [0:05:06] Whether there is good data on how many groups people typically identify with. [0:06:08] How aware people are of the groups they identify with. [0:07:27] Ways in which group identity affects decision-making. [0:08:12] The effect group identity has on setting and achieving goals. [0:09:35] General ways group identity affects social relationships. [0:15:21] A deeper explanation about groups, memberships, and physical presence. [0:17:28] Differences between introverts and extroverts. [0:19:18] How group identity affects our thinking and perspective. [0:20:43] Associate Professor Van Bavel explains how to foster social cohesion, using America as an example. [0:25:41] Find out if people have a default identity that determines their perspective. [0:28:41] What people can do to be aware of which identity is affecting their thinking. [0:30:10] Find out if group identity affects how people learn new information. [0:31:58] Whether people can change or broaden their identity to improve decision-making. [0:34:18] Practical advice to help broaden someone's perspective. [0:37:25] The challenges of changing your group identity entirely. [0:39:34] Steps that one can take to view the world more objectively. [0:42:04] A rundown of how leaders influence the thinking and decision-making of individuals. [0:45:47] An outline of what qualities to look out for in groups. [0:48:49] The influence of social media on which groups people identify with. [0:52:21] We learn if following people on social media with opposing views helps break down group barriers. [0:55:57] An explanation of how group identities interact with democracy. [0:58:48] The differences between current political divisions and past political divisions. [1:03:59] How well studies on the topic can be replicated. [1:05:43] We end the show by learning how Associate Professor Van Bavel defines success. [1:09:18]

In this episode, we speak to Quinn DuPont, a self-described technology historian and researcher of everything crypto. He is fascinated by what humans do and how technology affects what humans do. Quinn focuses his research on the history, meaning, use, and socio-technical development of cryptography. He has published many academic papers on the subject, including the book Cryptocurrencies and Blockchains, and is currently an adjunct professor at the UBC School of Information. He approaches investigating the world of crypto as a scientist making him neither a skeptic nor a proponent of the technology, offering listeners an objective perspective. In this episode, we unpack the basics of crypto and take a deep dive into the theoretical and technological concepts. We learn about the ideological foundations of crypto, how crypto technology will impact governance, what the definition of money is, the potential of the technology to society, and the social components associated with cryptocurrencies. We also find out the real value of crypto and learn about the ethical challenges Quinn faces as a researcher in the space.   Key Points From This Episode:   [0:05:16] The ideological worldview that resulted in cryptocurrencies.  [0:10:51] Quinn explains his standard criticism of the critics.  [0:13:43] Why the ideological origins of crypto are irrelevant today.  [0:15:50] The nuance surrounding the immutability of crypto technology is discussed.  [0:17:04] What the benefits of the cryptosystem are for governance.  [0:19:48] How well he thinks crypto fits within a democratic society.  [0:25:41] Reasons why political ideology needs to be taken into account.  [0:28:19] Quinn tells us his definition of money.  [0:31:18] What impact decentralized censorship-resistant monies have on society.  [0:38:52] How valuable a cryptocurrency in the real world is.  [0:40:48] Why paying your taxes gives money value.  [0:44:25] Whether Quinn considers Bitcoin to be money.  [0:46:09] He walks us through the benefits of DeFi to societies.  [0:49:30] We learn what the downsides of DeFi to societies are.  [0:50:22] Learn if blockchain solves any of the problems that exist in traditional finance.  [0:57:57] The advantages of bitcoin-based technology for business logistics.  [01:03:00] Why some blockchain business technology is marketing hype.  [01:04:32] How a DAO is different from a traditional corporation.  [01:10:24] Find out what would happen if we turned our podcast into a DAO.  [01:15:35] Whether smart contracts replicate the role of traditional contractual relations.  [01:19:51] Quinn outlines the ethical challenges to researching cryptocurrencies and blockchain.  [01:27:32] Hear what he thinks the greatest disappointments and successes of crypto are.  [01:31:32] We end the show by finding out if Quinn considers crypto and blockchain to be a technological revolution.

In today's episode, we beg the question: is factor investing worth it? Factor-tilted portfolios tend to perform independently of the market and today, we break down a few of the characteristics associated with higher expected returns, as well as the challenges of factor investing. We give a brief history of pricing models and walk step-by-step through a hypothetical factor investment; taking the Fama and French five-factor model into account. Additionally, we discuss liability duration and bond returns and speculate whether pooling finances results in greater relationship satisfaction. Tune in to hear our take on everything from book clubs and the impact of inflation on consumption liability assumptions to our final verdict on whether factor investing is, in fact, worth your while.   Key Points From This Episode:   The latest phenomenon of people paying to go on popular podcasts. [0:01:58] Interesting feedback we've received for our Crypto series. [0:03:49] Why not to make an investment decision based on one person's opinion. [0:04:53] The evaluation skills our Crypto series equips listeners with. [0:06:05] Upcoming guests on the Rational Reminder Podcast! [0:07:31] Some interesting LinkedIn connections we've made in the past few weeks. [0:16:06] Recommended book for kids: Way of the Warrior Kid 3. [0:18:11] Recommended book for adults: The Psychology of Money. [0:21:08] The model of our firm's book club and our experience of it so far. [0:22:02] Does pooling finances result in greater relationship satisfaction? [0:24:35] Liability duration and bond returns according to the current change in bond yields. [0:26:22] How inflation impacts consumption liability assumptions. [0:29:11] The positive effect the changes in the bond market have had on pension funds, relative to their liabilities. [0:30:20] The main topic of the day: is factor investing worth it? [0:32:30] The long-term volatility for factor-tilted portfolios. [0:33:56] What factor investing is and the added risk it entails. [0:34:51] A brief history of pricing models. [0:35:53] A few characteristics associated with higher expected returns. [0:39:25] The challenges of factor investing. [0:39:47] How to determine the mix of factors that captures all relevant state variable sensitivities. [0:42:56] The significance of size premium. [0:46:07] Speculating whether factors deliver premiums. [0:47:57] The steps involved in a hypothetical factor investment. [0:48:57] A few important facts about factors. [0:53:23] The benefits of having more independent risk premiums in a portfolio. [0:54:56] Our verdict as to whether or not factor investing is worth it. [0:57:02] Why it's important to take tracking error into account. [0:57:38] The tendency of factor-tilted portfolios to perform differently from the market. [0:57:48]