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Rank #37 in Investing category

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Investing

Money For the Rest of Us

Updated about 1 month ago

Rank #37 in Investing category

Business
Investing
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

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

iTunes Ratings

792 Ratings
Average Ratings
627
66
39
24
36

Great podcast

By KyleP1 - May 06 2019
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Great delivery, great content, and a great education. Thanks!

Great podcast

By djp57byu - Apr 05 2019
Read more
I just discovered this podcast... catching up! Great descriptions of financial matters.

iTunes Ratings

792 Ratings
Average Ratings
627
66
39
24
36

Great podcast

By KyleP1 - May 06 2019
Read more
Great delivery, great content, and a great education. Thanks!

Great podcast

By djp57byu - Apr 05 2019
Read more
I just discovered this podcast... catching up! Great descriptions of financial matters.
Cover image of Money For the Rest of Us

Money For the Rest of Us

Updated about 1 month ago

Rank #37 in Investing category

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: 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
28 mins
Play

Rank #2: 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
25 mins
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Rank #3: 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
30 mins
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Rank #4: 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
26 mins
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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
27 mins
Play

Rank #6: Interest Rates Are Rising. Four Things You Can Do.

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#133 Here are four investment strategies investors can use to avoid losses due to rising interest rates.

Nov 16 2016
29 mins
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Rank #7: 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
33 mins
Play

Rank #8: 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
29 mins
Play

Rank #9: 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
26 mins
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Rank #10: How To Decide What To Buy

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#146 How to optimize your purchase decisions and why eliminating negatives can increase happiness more than buying more stuff.

Feb 22 2017
26 mins
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Rank #11: What You Need To Know About Retirement Calculators

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#161 How retirement planning and retirement spending calculators work and what are some of their flaws. Why figuring out how much money you will have when you retire and how long it will last is a lot like the work hydrologists do to figure out whether Phoenix or Los Angeles will run out of water.

Jun 14 2017
30 mins
Play

Rank #12: Impact Investing and Intentionality

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How individuals can have a positive impact while earning a good return investing. What are some examples of socially responsible and impact investments and platforms.

In this episode you’ll learn:

  • What is the difference between impact investing, ESG and SRI?
  • What are examples of socially responsible exchange traded funds.
  • What are green bonds.
  • What are some examples of impact investments and platforms.
  • What are three ways we can have a positive impact as individuals.


Thanks to Blinkist and LinkedIn for sponsoring the episode.

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

  • [0:18] What is impact investing?
  • [5:25] How impact investing is different from socially responsible investing.
  • [8:50] Different opportunities to invest in a socially responsible way.
  • [10:49] The impact that just one individual can have.
  • [16:08] Keeping from negatively affecting the social and environmental fabric.
  • [18:53] Generating positive impact with our investments.
  • [20:01] Analyzing opportunities for truly impactful investments.
  • [21:06] Impact Investing in the secondary market.
  • [24:55] We each have to decide in what ways we will intentionally invest.
May 08 2019
26 mins
Play

Rank #13: Clues To The Next Financial Crisis

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#155 How panic caused the great financial crisis and what to look for to see if it is happening again.

Apr 26 2017
29 mins
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Rank #14: All Countries Are Insolvent and That's A Good Thing

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#42 Why all federal governments are insolvent but investors still line up to buy government debt at low interest rates. Show notes at http://moneyfortherestofus.net/mny042-insolvency/ To sign up for the Money For the Rest of Us Insider's Guide text the word INSIDER to 44222.

Feb 04 2015
28 mins
Play

Rank #15: Do You Have Too Little Invested In Stocks?

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#48 How fear of another market crash may be causing you to keep your stock market allocation overly conservative despite evidence global stock markets are in a secular bull market. More info at http://moneyfortherestofus.net/mny048-secular-bull/ To sign up for the Money For the Rest of Us Insider's Guide text the word INSIDER to 44222.

Mar 18 2015
28 mins
Play

Rank #16: How Worried Should You Be About the National Debt?

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#106 Why some nations are at risk of default on their national debt and others are not. Plus why the U.S. national debt will never be repaid. Show notes at http://moneyfortherestofus.net/mny106-national-debt/

May 04 2016
33 mins
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Rank #17: Investment Rule One—Avoid Ruin

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How reducing exposure to a catastrophic event, such as running out of money during retirement, is a better strategy than trying to accurately predict a catastrophic event.

In this episode you’ll learn:

  • How repeated exposures to low probability events can lead to ruin.
  • How bonds have outperformed stocks over long stretches of time .
  • How the success of retirement spending rules depend on the market environment and why a flexible approach to retirement spending makes the most sense given the wide variety of risk factors.


Thanks to WIX and Policy Genius for sponsoring the episode.

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

  • [0:20] Celebrating 250 episodes - thank you for listening!
  • [1:51] 3 individuals who have greatly influenced David’s passion for good investing.
  • [2:37] The sequence of life - and how you are affected by it - matters.
  • [9:21] Defining risk and modifying exposure.
  • [9:53] Case study: bonds vs. stocks.
  • [15:34] The conditions for premium dividend yield.
  • [18:00] Spending rules for retirement.
  • [23:04] Considering worst-case scenarios.
  • [26:10] Best strategies for retirement planning.
Apr 24 2019
29 mins
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Rank #18: Are You Spending Too Much? (FIRE Edition)

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#244 How we can use filters to better manage how much we spend and make sure our spending has a meaningful impact on ourselves and the world. Thanks to EveryPlate and LinkedIn for sponsoring the episode.

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

  • [0:16] The FIRE movement and how much you need to retire early.
  • [1:23] What are we supposed to be seeking?
  • [3:23] How do we define the “bare necessities?”
  • [8:58] The superfluous things in life are what we spend our money on.
  • [11:12] Finding joy vs. chasing pleasure.
  • [13:51] Skills to reduce spending in order to retire early.
  • [15:41] Establishing filters to lessen our spending.
  • [18:51] Rethinking materialism.
  • [21:01] There will always be more.
Mar 13 2019
26 mins
Play

Rank #19: How Do The Mega Rich Invest?

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#207 Why the mega rich don't have magical investing powers, but there are some investing attributes they possess that we can emulate. More information, including show notes, can be found here.

Episode Summary

A new listener of Money For the Rest of Us inspired the question for this episode: how do the mega rich invest? Forbes reports that there are 585 billionaires in the US and most of them utilize a family office/professional management structure. But do they have some magical, secret way of making more money than the general population? Do they become exponentially richer by allocating their money in certain ways? These questions and more are explored on this episode, and it’s one not to be missed.

What are the major differences in how the mega-rich invest?

While the mega-rich, also known as ultra-high net worth individuals, don’t have any secret ways of making exponentially more money than the rest of us, they do invest in different ways. The biggest difference in investment strategies falls within the area of alternative investments such as venture capital, private real estate, energy investments, hedge funds, etc. Ultra-high net worth individuals invest as much as 46% of their portfolios in these areas, which is significantly more than many other investors. The mega-rich also hold more cash, combatting the illiquidity of their alternative investment strategies. These strategies are available to all investors but are more easily accessible to people with more funds at their disposal.

Don’t be fooled, mega-rich investors DO make mistakes

Even though the mega-rich invest in slightly different ways than typical investors, they are liable to make the same mistakes as everyone else. Many ultra high net worth individuals have fallen under the allure of hedge funds, but have generally been disappointed with performance. For example, a study CEM Benchmarking found hedge funds overall have been underperforming customized benchmarks with similar volatility at a rate of 1.3% annually, and they have been since 2000. Returns have also been especially disappointing in the long-short equity space.

Do mega rich investors achieve the same rate of return as typical investors?

Ultra-high net worth investors DO receive the same rate of return as other investors, however, they benefit from compounding. It’s simple math. If you’re able to put more money into a certain type of account that compounds in a beneficial way, you’ll come out on top faster than those who cannot invest as much.

May 30 2018
29 mins
Play

Rank #20: 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
30 mins
Play

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