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Rank #43 in Investing category

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Money For the Rest of Us

Updated 3 days ago

Rank #43 in Investing category

Business
Investing
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A personal finance and investing podcast on money, how it works, how to invest it and how to live without worrying about it. J. David Stein is a former Chief Investment Strategist and money manager. For close to two decades, he has been teaching individuals and institutions how to invest and handle their finances in ways that are simple to understand. More info at moneyfortherestofus.com

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A personal finance and investing podcast on money, how it works, how to invest it and how to live without worrying about it. J. David Stein is a former Chief Investment Strategist and money manager. For close to two decades, he has been teaching individuals and institutions how to invest and handle their finances in ways that are simple to understand. More info at moneyfortherestofus.com

iTunes Ratings

945 Ratings
Average Ratings
740
76
47
36
46

Great information, great delivery

By Dreasttum - Nov 16 2019
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Ps to ranger7810; the correct spelling is “waste”, as in your review.

Great!

By Limma voom - Sep 08 2019
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Really appreciate the in depth treatment of some really diverse topics. Interesting every time!

iTunes Ratings

945 Ratings
Average Ratings
740
76
47
36
46

Great information, great delivery

By Dreasttum - Nov 16 2019
Read more
Ps to ranger7810; the correct spelling is “waste”, as in your review.

Great!

By Limma voom - Sep 08 2019
Read more
Really appreciate the in depth treatment of some really diverse topics. Interesting every time!
Cover image of Money For the Rest of Us

Money For the Rest of Us

Latest release on Feb 19, 2020

Read more

A personal finance and investing podcast on money, how it works, how to invest it and how to live without worrying about it. J. David Stein is a former Chief Investment Strategist and money manager. For close to two decades, he has been teaching individuals and institutions how to invest and handle their finances in ways that are simple to understand. More info at moneyfortherestofus.com

Rank #1: How To Become Wealthy

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The three-step plan for becoming financially wealthy and how to be wealthy without the money.

In this episode you’ll learn:

  • The results of two recent surveys on wealth, investing and retirement planning.
  • How much money do people believe they need to consider themselves wealthy.
  • How is wealth distributed across the U.S. population and how wealthy are Americans?
  • Why you need a simple financial plan.
  • What are the three steps to becoming financially wealthy.
  • How to live like you are already wealthy.


Thanks to WIX and Sleep Number for sponsoring the episode.

For show notes and more information on this episode click here.

  • [0:16] Schwab and Stash survey results.
  • [2:49] Saving vs. living paycheck to paycheck.
  • [4:29] How much does one need to be considered wealthy?
  • [7:44] The value of social security.
  • [9:23] The historical distribution of the country’s overall wealth.
  • [11:33] The importance of having a plan.
  • [13:38] Step One: increase your income.
  • [15:10] Step Two: increase your savings percentage.
  • [16:44] Step Three: increase your investment returns.
  • [23:57] It’s not about optimization. It’s about diversifying and learning.
  • [25:20] How to live like you are wealthy today.

May 15 2019

27mins

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Rank #2: Investing Won't Make You Rich

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#119 The primary role of investing is to preserve your wealth not grow it. How then do we grow our wealth?

Aug 10 2016

26mins

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Rank #3: Should You Invest In Individual Stocks?

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#3 Why investing in individual stocks can be so intoxicating and dangerous. What you should know before you try. Show notes at https://moneyfortherestofus.com/should-you-invest-in-individual-stocks-003/

May 18 2014

25mins

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Rank #4: Should You Pay Off Debt Or Invest?

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#188 How our net worth is more than our financial capital but includes our lifetime earning capacity or human capital. What role does debt play in investing in human capital and how our human capital impacts how we allocate our financial investments. Why stocks aren't less risky in the long-term. How to invest a lump sum payment and how I recently did so in today's market environment. More information, including show notes, can be found here.

Episode Summary

At some point in our lives, we all have to deal with the issue of debt. It’s a specter that hangs over our heads and gives us an uneasy feeling until it is gone. Debt has a cost, naturally so because it demands interest all the time. A question that comes up often is whether or not it is better to pay off debt immediately, primarily because it IS debt, or if a better return can be achieved, should available money be placed into investments instead? You could run the numbers and figure out what looks best on paper and go with that. But the answer is honestly not that simple. This episode is designed to walk you through many of the issues that should be considered when answering the question.

If it costs you less numerically to pay interest on loans than you could make on investments, you should invest instead of paying off debt, right? Maybe it’s not that simple

Let’s do the math. If you are paying 5% for your home mortgage and have a lump sum of cash available to pay it off, but you also have the opportunity to lend the money to a real estate crowdfunding platform with a guaranteed return of 9%, isn’t it true that you would make 4% more by investing in the crowdfunding platform than you would if you paid off the mortgage? Yes, that’s what the numbers say, but there’s more to be considered. You want to think about things like human capital, the nature of the debt, and the mental cost you bear for having the debt hanging over you.

Most people should try to do both: invest and pay off debt. Here’s why-

When it comes to the choice between paying off debt with available funds or investing those funds elsewhere, there is no cut-and-dried answer that fits everyone. But after doing his research in thinking through the issue, David feels that most people should try to do both. While there is a psychological benefit to paying off debt, there is also the knowledge and discipline that comes from investing.

In This Episode You’ll Learn

[0:46] Welcome to the show – and could you help spread the word?

[1:55] Should you pay off student loans first or put your cash into investments?

[4:20] We’ve got to consider the cost of developing “human capital”

[9:40] What is debt and how does short-term VS long-term debt apply

[12:45] How do human capital issues impact how we invest?

[16:13] Why most people should try to do both: invest AND pay off debt

[22:50] Should a lump sum be invested all at once or dollar cost average it?

Jan 17 2018

28mins

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Rank #5: Where Should You Invest Your Cash Savings?

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#220 How to evaluate cash savings options at banks, credit unions and brokerage firms. Why are yields on cash savings so much higher than a few years ago. How to tell if your bank or credit union is in experiencing financial difficulties. Thank you to Blinkist for sponsoring this week's episode.

For show notes and more information on this episode click here.

  • [0:10] All about banks, credit unions, and the pros and cons of cash savings
  • [4:47] How can banks and credit unions become financially unstable?
  • [14:25] The Federal Reserve is setting a new short term interest rate target
  • [15:55] What tools does the Federal Reserve have to keep short-term interest rates in line with its target?
  • [19:20] There are other options for investing your cash savings
  • [25:49] Is it really worth pursuing multiple investing options for your cash savings?

Sep 05 2018

27mins

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Rank #6: Do You Have Enough To Retire?

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#149 How to estimate how long your assets will last in retirement and the steps you can take to take make them last longer.

Mar 15 2017

30mins

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Rank #7: Trump Wins. Now What?

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#132 What should you do about Trump presidency? And how the truth was the real loser in this presidential election.

Nov 09 2016

30mins

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Rank #8: Keep Investing Simple

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#95 Steps to take to keep investing simple. Plus how changes in China are having spillover effects for global economic growth and asset class returns.

Feb 17 2016

31mins

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Rank #9: Four Investment Lessons From Warren Buffett

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#194 Four investment lessons from Berkshire Hathaway's fiscal year 2017 Shareholder Letter with additional insights from Howard Marks and Seth Klarman. More information, including show notes, can be found here.

Episode Summary

Every year, Berkshire Hathaway releases a letter written for their shareholders filled with information on their performance, portfolios, and investments. On this episode of Money For the Rest of Us, David digs into the 2017 letter and discusses four investment lessons Warren Buffet shares. It’s filled with great insights that any independent investor shouldn’t miss, so be sure to check out this informative episode.

Investment Lesson #1 – Use debt prudently

Buffett writes in this letter, “Investing is an activity in which consumption today is foregone in an attempt to allow greater consumption at a later date. ‘Risk’ is the possibility that this objective won’t be attained.” On this episode of Money For the Rest of Us, David encourages his listeners to utilize debt in such a way that maximizes future opportunities while also managing the risk that comes with taking on debt. He discusses the idea of “float” money, how one investor could have avoided losing half of his portfolio, how to manage margin calls, and why you have to be confident in your decisions as an independent investor.

Investment Lesson #2 – Keep your eyes open and focus on a few fundamentals

It takes patience, but independent investors can focus on the leading edge of the present and invest in ways that major corporations may not be able to do. One must simply be aware of the opportunities that are occurring right now as well as focus on a few fundamentals: valuations, economic trends, portfolio drivers, asset classes, etc. David quotes Buffet on this episode and explains that “Though markets are generally rational, they occasionally do crazy things. Seizing the opportunities then offered does not require great intelligence, a degree in economics or a familiarity with Wall Street jargon such as alpha and beta. What investors then need instead is an ability to both disregard mob fears or enthusiasms and to focus on a few simple fundamentals. A willingness to look unimaginative for a sustained period – or even to look foolish – is also essential.”

Investment Lesson #3 – Stick with easy decisions and avoid excessive trading

Unfortunately, trying to outsmart the market can lead to short-term gains but longer-term mediocrity in investing. David outlines a bet that Warren Buffett made with Protégé Partners and how Buffett learned that sticking with the big, easy decisions often pays off more than getting caught up in the minutia of constantly buying and selling. By making infrequent, larger decisions an independent investor can make better progress in their portfolio.

Investment Lesson #4 – Be willing to be early and look foolish

Investing is never a guaranteed game. All investors have a fear of looking foolish after making a decision, but Buffett explains that “A willingness to look unimaginative for a sustained period – or even to look foolish – is essential.” David talks about the importance of gaining experience, not becoming caught up in the crowd mentality, and understanding that the “dust never settles” when it comes to finances. There will always be risks to take, and timing can be unpredictable. But with considerable risk comes comfortable reward. For more great information on the 2017 Berkshire Hathaway Shareholder Letter, be sure to listen to this episode of Money For the Rest of Us.

Episode Chronology

[0:46] David introduces the topic for this episode, Four Investment Lessons from Warren Buffett

[2:15] Lesson #1 – Use debt prudently

[12:46] Lesson #2 – Keep your eyes open and focus on a few fundamentals

[17:17] Lesson #3 – Stick with easy decisions and avoid excessive trading

[24:00] Lesson #4 – Be willing to be early and look foolish

Feb 28 2018

33mins

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Rank #10: Please Save More

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#83 Why individuals need to save more for retirement and how to figure out how much more you should save. Show notes at: http://moneyfortherestofus.net/mny083-please-save/ To sign up for the Money For the Rest of Us Insider's Guide text the word INSIDER to 44222.

Nov 18 2015

29mins

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Rank #11: 10 Questions To Master Successful Investing

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What are the timeless principles we can follow in order to become better investors. 

Topics covered in this episode include:

  • How a book's permanence makes it different from a podcast.
  • How David's book got written and published and why his publisher just recalled the hardcover version of the book.
  • What are the 10 questions we should answer before we invest in anything.


Thanks to NetSuite and The Great Courses Plus for sponsoring the episode.

For show notes and more information on this episode click here.

  • [0:20] How David decided to write a book.
  • [3:00?] The right book can change your life.
  • [4:20] The art of writing a book.
  • [7:00] The extensive process of writing a book.
  • [9:57] Recording the audiobook.
  • [11:32] Question 1: What is it?
  • [13:36] Question 2: Is it investing, speculating, or gambling?
  • [14:32] Question 3: What is the upside?
  • [15:54] Question 4: What is the downside?
  • [16:42] Question 5: Who is on the other side of the trade?
  • [18:06] Question 6: What is the investment vehicle?
  • [18:58] Question 7: What does it take to be successful?
  • [20:20] Question 8: Who is getting a cut?
  • [21:03] Question 9: How does it impact your portfolio?
  • [22:05] Question 10: Should you invest?
  • [23:06] What happened to the book launch

Oct 23 2019

26mins

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Rank #12: How Money Is Created and Destroyed

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#94 How federal governments allow banks to create the vast majority of the world's money supply, and why that erodes the value of money over time. Show notes at http://moneyfortherestofus.net/mny094-money-created-destroyed/ To sign up for the Money For the Rest of Us Insider's Guide text the word INSIDER to 44222.

Feb 10 2016

28mins

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Rank #13: Is There Too Much Savings?

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#128 How holding onto goods longer before replacing them and a global savings glut impact the economy, interest rates and stock returns.

Oct 12 2016

27mins

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Rank #14: Five Wealth Lessons From A Stoic

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#96 Rumors are always circulating about economic collapse. How the stoic philosopher Seneca would handle these predictions of calamity. To get the Seneca's 5 Wealth rules and supporting quotes, text the word "SENECA" to 44222. Show notes at http://moneyfortherestofus.net/mny096-five-wealth-lessons-stoic/

Feb 24 2016

29mins

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Rank #15: How To Navigate A Housing Bubble

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#211 Why housing bubbles can last such a long time and what to do if you really want or need to buy a house in a frothy market. More information, including show notes, can be found here.

Episode Summary

Navigating a housing bubble is often on everyone’s minds. With changing family needs, balancing multiple incomes, and varying environmental factors, finding a great house is a struggle most families face. On this episode of Money For the Rest of Us, David responds to a listener’s question of how to navigate a housing bubble. He explains the idea of “economic gravity,” outlines factors that are influencing the global housing market, and offers solutions to the housing bubble crisis.

A housing bubble cannot break free from economic gravity

David discusses the idea of “economic gravity” on this episode. Simply, over the long-term housing prices can't be disconnected from the ability of households to service a level of mortgage debt - to successfully make those payments every month. Nobel prize-winning economist Milton Friedman explains, “When (corporate) earnings are exceptionally high, they don’t just keep booming - they can’t break loose from economic gravity.” The same concept applies to home prices. When prices are high, they can boom for an exceptionally long time. But they cannot break free from this underlying economic concept.

Factors that are driving up the global housing market

Housing bubbles are being created across the globe because of a few major factors. Low interest rates, offshore demand for domestic property, influxes in immigration, and interest only loans are all contributing factors to the housing bubble discussed in this episode of Money for the Rest of Us. David draws many parallels between the US housing market and those in Australia and Canada.

Housing markets don’t always align with growing family needs

Joe, the Money For the Rest of Us listener that submitted the question for this episode, is seeking different housing for his family as it grows and shifts. But he’s finding that unfortunately, housing markets don’t always align with growing family needs. Better school districts, larger homes, easier commutes, etc. are all factors that millions of Americans are seeking for their prospective homes. David encourages listeners to consider what type of housing their family can reasonably afford and still maintain the type of lifestyle they desire. You never want to purchase a house that you cannot comfortably afford. To hear more about the housing market in the US today, data on current housing prices across the country, and even more great information, don’t miss this episode.

3 ways you can respond to rising house prices

After considering all the data related to the housing bubble and overall market in your area, you essentially have 3 options:

  • You can stay put
  • You can move to a cheaper locale
  • You can buy, while being patient and prudent


In order to make the most of the housing opportunities for your family, David encourages every listener to consider their personal affordability and examine their ability to handle unforeseen financial stress (loss of a job, medical emergencies, etc.) Navigating a housing bubble is challenging, but this episode of Money For the Rest of Us can help you make sense of all the angles. Be sure to listen.

Episode Chronology

  • [1:05] A listener poses a question about how to handle a housing bubble in his area
  • [6:47] Current data on the American and international housing bubbles
  • [10:02] Is the current housing bubble starting to break?
  • [10:57] What factors are driving the home prices in Australia, for example?
  • [12:41] Comparing the Canadian housing bubble to Australia’s
  • [15:45] So what should you do during a housing bubble?
  • [18:09] Housing markets don’t always align with growing family needs
  • [21:36] How to combat the factors driving up housing prices

Jun 27 2018

30mins

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Rank #16: Should You Buy A Vacation Home?

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#130 How changes in financial circumstances, property markets, zoning rules and personal taste can make owning an illiquid vacation property a risky proposition, but why we bought our dream place anyway (and then sold it).

Oct 26 2016

22mins

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Rank #17: How To Outperform The Market Without Predicting The Future

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#89 How using smart beta and timing economic regime changes can lead to market outperformance. Show notes at http://moneyfortherestofus.net/mny089-outperform-market/ To sign up for the Money For the Rest of Us Insider's Guide text the word INSIDER to 44222.

Dec 30 2015

30mins

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Rank #18: Is Life More Difficult For Millennials?

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#168 How being a millennial is both different and the same from young adults of earlier generations.

Aug 09 2017

26mins

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Rank #19: Investing Rules of Thumb

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#34 Why simple investment rules are more accurate than complex formulas. Show notes at http://moneyfortherestofus.net/mny034-rules-of-thumb/ To sign up for the Money For the Rest of Us Insider's Guide text the word INSIDER to 44222.

Dec 10 2014

29mins

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Rank #20: Is Your Portfolio Unbalanced?

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#201 Why most conventional portfolios make huge and often unintended bets on the stock market. How role based investing can lead to a more balanced portfolio. More information, including show notes, can be found here.

Episode Summary

Having a balanced portfolio is a key to financial success. It offers a secure future and provides a level of security to your day-to-day lifestyle. On this episode of Money For the Rest of Us, David considers the question, “Is your portfolio unbalanced?” A new member of Money For the Rest of Us Plus introduced him to the book “Balanced Asset Allocation” by Alex Shahidi and it was the inspiration behind this podcast episode.

4 main reasons behind market volatility

Shahidi writes, “The ultimate goal is to capture excess returns over time, with as little risk as possible. The more volatile the return, the greater the risk of capital loss.” David explains that there are often unintended consequences of single-track investment strategies and that having too much of your portfolio invested in one asset class is not a good strategy.

Here are three main reasons as to why the market is volatile:

A shift in the economic environment

Shifting risk appetites

A shift in expectations of future cash rates (future path of short-term interet rates)

Every market segment has inherent biases in various economic environments

The key to avoiding market volatility is to hold multiple asset classes. These various types of assets will allow you to benefit in any type of market. For example, slowing economic growth is better for traditional bonds, while accelerating growth is better for stocks. TIPS and commodities do better when inflation is increasing. Even though most investors have a heavy bet on economic growth because of their stock-heavy portfolio, the arguments outlined in Shahidi’s book encourage otherwise.

Don’t be in the unenviable position of not receiving returns on your portfolio

The single most important takeaway from this episode of Money For the Rest of Us is this: Don’t rely on any single asset class to provide financial returns. Shahidi writes, “Own asset classes that are as volatile as stocks, but that perform better in different economic regimes.” Shahidi recommends 30% in long-term Treasury inflation-protected securities (TIPS), 20% in commodities, 30% in long-term bonds, and 20% in stocks. Collectively, this type of portfolio could generate excess returns above cash, although many investors might find the volatility of the underlying segments unsettling.

Why David DOES believe you can identify shifts in the market

Investing will never be 100% predictable, it’s the nature of the game. But David does believe, contrary to what Shahidi writes in his book, that you CAN identify shifts in the market. Before a shift occurs there are often red flags that can be identified and researched, even if it takes a dedication to objectively watching market conditions.

Apr 18 2018

35mins

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What Causes Hyperinflation and What To Do To Prepare For It

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What factors lead to hyperinflation, why it is so devastating, how hyperinflation can be overcome and what can individuals do to be prepared for hyperinflation.

Topics covered include:

  • What causes inflation and how do central banks manage it.
  • How the causes of hyperinflation differ from more normal levels of inflation.
  • What is the biggest challenge of living in a country with hyperinflation.
  • How Zimbabwe and other countries were able to overcome hyperinflation and how Venezuela is slowly taking steps to combat hyperinflation.
  • Why Zimbabwe is again experiencing high inflation.
  • How individuals can protect against inflation.
  • What individuals can do to prepare for hyperinflation in case it comes.


Thanks to Netsuite and Policygenius for sponsoring the episode.

For show notes and more information on this episode click here.

Feb 19 2020

24mins

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Coronavirus and the Financial Impact of Pandemics

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How pandemics have impacted the economy and financial markets. Where does the coronavirus rank in severity compared to other pandemics. What portfolio changes, if any, should investors make in response to the coronavirus pandemic.

Topics covered include:

  • Definition of a pandemic
  • The worst pandemics in the 20th and 21st centuries
  • What are the factors in determining the severity of the coronavirus' impact
  • What are the economic ramifications of the coronavirus.
  • How did financial markets perform during previous pandemic episodes.
  • Are there portfolio changes investors should make in response to the coronavirus


Thanks to Policygenius and LinkedIn Jobs for sponsoring the episode.

For show notes and more information on this episode click here.

Feb 05 2020

21mins

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Money Is Debt

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How most money, such as currency, bank deposits, money market mutual funds, and repurchase agreements, is really short-term debt, often backed by other debt. As a result, money is subject to runs when investors lose confidence and don't want to own it. That can lead to financial crises.

Topics covered in this episode include:

  • How counterfeiting currency works.
  • Why most money is debt backed by debt.
  • How a loss of confidence in money leads to bank runs and other financial crises.
  • How demand for U.S. Treasuries as collateral is keeping interest rates low even though the U.S. federal budget deficit is growing.
  • Why the Federal Reserve is considering capping interest rate yields on U.S. Treasuries and what are the risks of doing so.
  • What can individuals do to protect themselves against financial crisis caused by runs on banks and financial securities.


Thanks to Vistaprint for sponsoring the episode. Use promo code: "david" to get free shipping. Also thank you to The Bouqs Company for sponsoring the show. Use promo code: "david" to get 25% off.

For show notes and more information on this episode click here.

Jan 29 2020

25mins

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We Are All Financially Vulnerable

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How to protect against financial hardship and assist others who are struggling financially.

Topics covered include:

  • Why are so many families leaving Central America and seeking to enter the United States.
  • How have U.S. immigration patterns changed.
  • Why immigration leads to higher economic growth.
  • Why unsheltered homelessness is increasing around the world and what strategies have been effective in reducing homelessness.
  • What can individuals do to assist the homeless and others who are in financial distress.


Note: The original audio file stated that "oftentimes they [the ayslum seekers] wouldn't ever show up for their court case." That is an inaccurate statement. Most asylum seekers attend their court hearing. The audio has been modified to remove the inaccuracy.

Thanks to The Bouqs Co. for sponsoring the episode. Use code: david. Also thanks to Policygenius for being a long-time sponsor of the show.

For show notes and more information on this episode click here.

Jan 22 2020

27mins

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Why You Should Care About Carry Trades

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How investors make money with carry trades, how central banks encourage such trades, and what are the dangers to financial markets and the economy when carry trades get too big.

Topics covered include:

  • What are the attributes and examples of carry trades.
  • Why do carry trades exist even though investors can suffer massive losses.
  • What was Volmageddeon and Francogeddan.
  • How central banks are the largest carry traders and their actions encourage even more carry trades.
  • Why carry trades are deflationary and lead to systemic risk.
  • What should individual investors do about carry trades and how to take advantage of carry crashes.

Thanks to Robinhood and NetSuite for sponsoring the episode

For show notes and more information on this episode click here.

Jan 15 2020

30mins

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Is GDP the Best Measure of Happiness and Well-being?

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What factors determine the well-being of an individual or nation and why gross domestic product is an inadequate measure of prosperity.

Topics covered include:

  • Evidence many Americans are poorer than before the Great Recession.
  • Why life expectancy in the U.S. is falling.
  • How satisifiedare U.S. citizens.
  • What is GDP and why is the U.S. Bureau of Economics developing a new methodology
  • What are the flaws with GDP and why does it fall short in measuring well-being.
  • Which countries around the world are the most and least happy and what are the factors that contribute to that happiness.
  • Why were U.S. founding fathers worried about too many luxuries.
  • How the U.S. in the 19th century followed the same manufacturing model that China does today.

Thanks to Policygenius and LinkedIn for sponsoring the episode.

For show notes and more information on this episode click here.

Jan 08 2020

31mins

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Four Forces That Will Shape the Next Decade

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How climate change, money, trust and technology will interact to impact financial markets and the economy in the coming decade.

Topics covered include:

  • Why we change much more over a decade's time than we predict.
  • What is the best approach for transitioning to a new career.
  • What have stocks and bonds returned over the past decade and what are reasonable return expectations for the decade ahead.
  • Examples of how the impact of climate change is being priced into financial transactions.
  • Why Ray Dalio thinks the world has gone mad and the system is broken.
  • Why uncertainties regarding the creation, use and borrowing of money will be reflected in interest rates.
  • How trust and technology will impact global trade and productivity growth.


Thanks to Cove and Sleep Number for sponsoring the episode.

For show notes and more information on this episode click here.

Dec 18 2019

22mins

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Travel and the Trust Economy

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How is it the global economy still functions even though most individuals do not trust brands, public institutions or each other.

Topics covered in this episode include:

  • The low level of interpersonal trust around the world
  • What is social capital and how it facilitates a trust economy.
  • What are the incentives that encourage individuals and businesses to produce goods and services rather than steal from each other.
  • How does trust impact economic growth.
  • Does traveling harm or help local residents.


Thanks to Masterworks and LinkedIn for sponsoring the episode.

For show notes and more information on this episode click here.

Dec 11 2019

26mins

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Why All Retirees Should Consider an Income Annuity

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How a safety-first retirement approach using income annuities is more predictable and takes less money than depending entirely on your investment portfolio to fund your retirement.

Topics covered include:

  • The difference between a safety-first and probability-based approached to retirement.
  • How income annuities work.
  • Why setting a sustainable retirement withdrawal rates requires planning for below average market returns and above average life expectancy.
  • How using an income annuity and other guaranteed income to fund basic living expenses means not having to set a sustainable withdrawal rate.
  • How long can retirees expect to live.
  • Why most retirement portfolios are not as liquid as retirees think.
  • Why are retirees hesitant to use income annuities and how to overcome the fear of doing so.


Thanks to Policygenius and Vistaprint for sponsoring the episode. Use code David50 for Vistaprint.

For show notes and more information on this episode click here.

Dec 04 2019

26mins

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You Have Permission to Spend

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Two Money For the Rest of Us podcast listeners are struggling with spending money. The first listener is 22 and lives in Canada. He feels as if his money is going everywhere such as saving for a house, car, and retirement, but very little goes to things he enjoys.

The second listener is 46 with a $2 million net worth, but in his case, he finds he doesn’t enjoy spending money on himself. He is willing to spend money on his wife and two children, but he still finds himself feeling tight, fearful and worried about money and his business, even though he has plenty of wealth and is close to his goal of financial freedom.

In this podcast episode, we consider the standard to use to determine how much to spend on ourselves.

Topics covered include:

  • The most difficult part of figuring out how much is enough.
  • What is the Voluntary Simplicity movement and how it can help us decide where to spend our money.
  • What is the difference between comforts and luxuries.
  • What is the difference between joy and pleasure.
  • What is a simple filter we can use to determine where to spend money.


Thanks to Masterwork and NetSuite for sponsoring the episode.

For show notes and more information on this episode click here.

Nov 20 2019

26mins

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How ETFs Are Changing

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How regulatory changes could lead to a boom in new ETFs, including actively managed ETFs. Why ETFs continue to be one of the most innovative, cost effective and tax efficient investment vehicles.

Topic covered include:

  • How big is the ETF market relative to mutual funds.
  • What are the benefits of ETFs that have allowed them to gain market share from mutal funds.
  • What are some of the negatives with ETFs.
  • What has changed to make it easier for sponsors to launch new ETFs.
  • How do non-transparent actively managed ETFs work.
  • What are some examples of more complicated, outcome-based ETFs.


Thanks to LinkedIn and SleepNumber for sponsoring the episode.

For show notes and more information on this episode click here.

  • [2:45] The benefits of ETFs
  • [8:40] Challenges with ETFs
  • [12:50] The rules that have changed
  • [15:25] What is an AP Representative?
  • [18:40] Should you invest in actively managed ETFs?
  • [21:30] All about outcome Based ETFs
  • [26:20] Understand what drives performance

Nov 13 2019

28mins

Play

Don't Retire, Settle Instead

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How to find your unique work that can bring satisfaction and income before and during the traditional retirement years.

Topics discussed in this episode include:

  • What is settled work.
  • Why you need time and space to find and do your best work.
  • What is a commonplace book and why it can be helpful.
  • How filters and saying no can help us control our time.
  • The important role of serendipity in finding our path.


Thanks to The Great Courses Plus and Vistaprint (use code David50) for sponsoring the episode.

For show notes and more information on this episode click here.

  • [0:20] An antique lamp store in Phoenix
  • [3:10] The concept of “Settled Work”
  • [5:30] How do we find our settled work?
  • [7:40] David’s commonplace book
  • [12:15] Why we need settled work
  • [15:00] Take time to reflect
  • [16:05] Take back control of your time
  • [18:00] The art of saying “no”
  • [21:00] Capturing Serendipity

Nov 06 2019

25mins

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Are You Over Diversified?

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Is it possible to be too diversified and how can you tell? Why Warren Buffet thinks diversification is protection against ignorance.

Topics covered include:

  • The skills you need to be able to select individual stocks.
  • How have active managers outperformed relative to passive indexing products.
  • How much diversification is too much and a test to determine if one is over diversified.
  • What is factor investing and which factors have worked over the past 200 years.


Thanks to LinkedIn and Policygenius for sponsoring the episode.

For show notes and more information on this episode click here.

  • [2:22] Exploring the concept of over-diversification
  • [5:25] Should you pay for an investment advisor to select individual stocks?
  • [8:05] An individual investor should choose index funds
  • [11:10] Determining how much diversification is enough?
  • [13:37] Weighing the cost against the benefits
  • [16:10] When being over diversified is possible
  • [17:05] Analyzing the listener question regarding over-diversification
  • [20:20] A Fascinating study analyzing 200 years of factors
  • [25:08] Layer on additional value factor

Oct 30 2019

27mins

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BONUS - Audiobook Excerpt from Money for the Rest of Us: 10 Questions to Master Successful Investing

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David's book Money for the Rest of Us: 10 Questions to Master Successful Investing is now available (at least the e-book version). To celebrate, here is a bonus episode with excerpts from the forthcoming audiobook.

Please enjoy the Introduction and Chapter One.

Also, as part of the book launch, David will be hosting an Ask Me Anything (AMA) on Reddit on Wednesday, October 30, 2019 at 1PM Eastern time. Please join us.

Oct 25 2019

33mins

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10 Questions To Master Successful Investing

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What are the timeless principles we can follow in order to become better investors. 

Topics covered in this episode include:

  • How a book's permanence makes it different from a podcast.
  • How David's book got written and published and why his publisher just recalled the hardcover version of the book.
  • What are the 10 questions we should answer before we invest in anything.


Thanks to NetSuite and The Great Courses Plus for sponsoring the episode.

For show notes and more information on this episode click here.

  • [0:20] How David decided to write a book.
  • [3:00?] The right book can change your life.
  • [4:20] The art of writing a book.
  • [7:00] The extensive process of writing a book.
  • [9:57] Recording the audiobook.
  • [11:32] Question 1: What is it?
  • [13:36] Question 2: Is it investing, speculating, or gambling?
  • [14:32] Question 3: What is the upside?
  • [15:54] Question 4: What is the downside?
  • [16:42] Question 5: Who is on the other side of the trade?
  • [18:06] Question 6: What is the investment vehicle?
  • [18:58] Question 7: What does it take to be successful?
  • [20:20] Question 8: Who is getting a cut?
  • [21:03] Question 9: How does it impact your portfolio?
  • [22:05] Question 10: Should you invest?
  • [23:06] What happened to the book launch

Oct 23 2019

26mins

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What is an ETN? - Understanding Exchange Traded Notes

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What are the benefits and risks of investing in exchange-traded notes (ETNs) compared with ETFs.

Topics covered include:

  • How big is the market for ETNs compared with ETFs.
  • How ETNs can do a better job tracking their target index than ETFs.
  • Why ETNs can be more tax-efficient than ETFs..
  • How ETNs have counterparty risk, pricing risk, and liquidity risk.
  • Under what circumstances would an ETN be preferred over an ETF.


Thanks to WIX and Policygenius for sponsoring the episode.

For show notes and more information on this episode click here.

  • [0:21] ETPs, ETFs, and ETNs—which is the most popular?
  • [3:10] Exchange-Traded Notes exhibit low tracking error.
  • [5:28] ETNs are vastly more tax-efficient than ETFs.
  • [6:14] Examples of Exchange Traded Notes.
  • [10:16] Should there be a default-risk discount on ETNs?
  • [13:34] Why there is issuance and closure risk with ETNs.
  • [17:21] Clarification on the term “Net Asset Value” when referring to ETNs.
  • [17:58] The issues of illiquidity risks and high fees.
  • [20:46] Exchange Traded Notes are a niche product.

Oct 16 2019

25mins

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Is Inflation Measured Wrong?

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Why some analysts believe the Consumer Price Index formula understates inflation while others believe the CPI formula overstates inflation. What really matters to us individually when it comes to inflation.

Topics covered in this episode include:

  • What is inflation and what causes it.
  • How is the Consumer Price Index calculated and how has the CPI formula changed over time.
  • What are examples of different CPI measures.
  • Why do some analysts believe U.S. inflation is higher than what CPI states while others believe inflation is lower than what the Consumer Price Index shows.
  • How inflation calculations impact the measurement of other economic data such as the rate of poverty and the growth in real wages.
  • What are consumer attitudes toward inflation and why do central banks worry about changes in household and business inflation expectations.
  • How individuals can monitor and improve their cost of living.


Thanks to Sleep Number and Money For the Rest of Us Plus for sponsoring the episode.

For show notes and more information on this episode click here.

  • [0:18] Traditional methods of measuring inflation.
  • [4:00] The CPI has changed from a fixed-basket approach to a consumer-representative approach.
  • [6:39] The controversy concerning the accuracy of CPI measurement.
  • [9:11] Is inflation overstated because of how the CPI-U is calculated?
  • [11:23] Rwanda case study: the connection between inflation and poverty.
  • [15:17] Why governments care so greatly about the public’s view of inflation.
  • [17:31] How inflation expectations are measured.
  • [18:52] How do we calculate the desired standard of living?
  • [20:41] The CPI isn’t an accurate depiction of the standard of living.
  • [24:20] Are you satisfied with how you spend your money?

Oct 09 2019

27mins

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Financial Independence Is a Choice

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Why true financial independence means eliminating financial vulnerability including not being overly reliant on stock market appreciation.

Topics covered in this episode include:

  • What does it mean to be financially vulnerable.
  • What are the two paths to financial independence.
  • Why we shouldn’t stake our financial independence and early retirement on the historical performance of stocks and bonds.
  • What are the rules of thumb we can use to develop reasonable assumptions for stocks and bonds and how those assumptions will lead to lower portfolio balances compared to using historical returns.
  • What has historical earnings growth been for U.S. stocks.
  • Why stock buybacks will be less in the future due to high debt balances unless companies grow their revenues and overall earnings.
  • How are actions lead to financial independence even when it is difficult.


Thanks to Vistaprint and WIX for sponsoring the episode.

For show notes and more information on this episode click here.

  • [0:17] Being financially independent begins with a decision. 
  • [2:33] Protecting yourself against financial vulnerability. 
  • [4:14] Should you solely rely on investment returns for financial stability?  
  • [7:52] Estimating the returns of asset classes. 
  • [13:40] Earnings per share drives the returns of the stock market. 
  • [17:31] Build an active and flexible strategy for financial stability. 
  • [22:49] Uncertainty doesn’t negate the positive effect of small actions.

Oct 02 2019

29mins

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Repo Rates Soared—Here's Why It Matters

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How a liquidity crunch in the short-term lending markets sent interest rates soaring. Why this is a huge blunder on the part of the Federal Reserve, and what it means for us as individual investors.

Topics covered in this episode include:

  • What are repurchase agreements and how are they used to finance U.S Treasuries.
  • How outflows from money market funds and hoarding by banks led to a liquidity crunch that caused repo rates to spike to 10%.
  • Why banks are hoarding reserves held at the central bank even though there are over $1.4 trillion of them, up from $20 billion in 2007.
  • How quantitive easing increases reserves and quantitative tightening reduces reserves.
  • How the Federal Reserve was able to stop the disruption in the repo market, even though the central bank was caught off guard and could have prevented it.
  • How individual investors can protect themselves from unintended consequences arising from the unconventional policies and experiments being conducted by the Federal Reserve and other central banks.


Thanks to The Great Courses Plus and LinkedIn for sponsoring the episode.

For show notes and more information on this episode click here.

  • [0:20] The Fed loses control over policy rates, and repo interest rates soar.
  • [2:19] What is a repurchase agreement (repo)?
  • [5:02] Why the big players in repos pulled back on Sept. 16th.
  • [8:38] Banks need more liquidity because of regulations.
  • [12:53] Why reserves have fallen so low.
  • [17:43] How does the reserve balance get reduced?
  • [19:23] The Fed may have shrunk it’s balance too far.
  • [21:36] What can be done about the reserve shortage?
  • [24:17] What can we learn from the repo rate raise?

Sep 25 2019

28mins

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How the Public Sector Pension Crisis Will Impact You

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Why most state and municipal pension plans are underfunded and why that could lead to higher taxes and reduced government services. Why participants in state government retirement systems have greater protection against benefit cuts than participants in municipal retirement systems.

Topics covered include:

  • How defined benefit plans work.
  • Why there is more subjectivity regarding valuing a pension plan's liabilities compared with its assets.
  • What does it mean for a pension plan to be underfunded, and why are so many public sector pension plans in that situation.
  • Under what circumstances can a pension plan cut benefits to beneficiaries.
  • Why underfunded pension plans will most likely lead to higher taxes and reduced government services.


Thanks to WIX and Peloton for sponsoring the episode.

For show notes and more information on this episode click here.

  • [0:18] The crisis of underfunded defined-benefit state and city pension plans.
  • [2:32] Calculating the financial value of a public pension plan.
  • [4:46] What rate of return should public pension plans use?
  • [8:44] Why public pension plans are highly underfunded.
  • [11:34] Kentucky’s 13%-funded pension plan raises red flags.
  • [13:37] Failing to meet the needs upfront causes a funding crisis down the road.
  • [15:33] Why states cannot go bankrupt but cities can.
  • [17:52] How do public sector pension plans affect tax-payers?
  • [20:18] How states and cities are trying to solve the crisis.
  • [21:45] Considering underfunding when deciding what to invest in or where to live.
  • [24:09] How private-sector pension plans could possibly affect tax-payers.

Sep 18 2019

30mins

Play

iTunes Ratings

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Great information, great delivery

By Dreasttum - Nov 16 2019
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Ps to ranger7810; the correct spelling is “waste”, as in your review.

Great!

By Limma voom - Sep 08 2019
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Really appreciate the in depth treatment of some really diverse topics. Interesting every time!