The Rational Reminder Podcast Episode 11 - Simple vs. complex with Robb Engen

In Episode 11 of the Rational Reminder podcast we discussed the following:

  • Are DIY investors responsible for their actions?

  • Starting a blog

  • Switching from stock picking to index funds

  • Managing behaviour

  • The 4-minute portfolio

  • When does it make sense to optimize?

  • Index fund rebuttals

  • Fee-only vs. fee-based advice

  • Choosing a conflict of interest

  • Robb’s biggest beef with Canadian financial services

  • Trusting the bank

  • VGRO vs. robo advisors

  • One-fund retirement portfolios

We were joined by Robb Engen, author of the Boomer and Echo blog.

The Rational Reminder Podcast Episode 10 - Keep the deferred sales charge, more for us

In Episode 10 of the Rational Reminder podcast we discussed the following:

  • Grass fed beef

  • The benefits of independence

  • The Ontario government wants to keep the deferred sales charge (DSC)

  • DSC back in the day

  • The old financial advice model

  • DIY investors are responsible for their decisions

  • 1/3 of people say money is their biggest stressor

  • Locus of control

  • A better way to invest responsibly

The stories that we talked about:

The Rational Reminder Podcast Episode 9 - Dimensional’s Big Flaw

In Episode 9 of the Rational Reminder podcast we discussed the following:

  • Being a poor grad student

  • Budgeting

  • Stuff does not make you happy

  • Mental overhead is a real cost

  • The Globe’s Financial Facelift disaster

  • Rob Arnott’s slam of Dimensional

  • Are people afraid of stocks?

  • The 10-year anniversary of Lehman’s fall

  • Stories from the financial crisis

  • Volatility in dollars vs. percentage points

  • Automated rebalancing

  • My uncle told me to buy weed stocks

  • What does a rational investor worry about?

 

The stories we talked about:

 

The chart we talked about:

Chart1_9.jpg

The Rational Reminder Podcast Episode 8 - Sell Everything!

In Episode 8 of the Rational Reminder podcast we discussed the following:

  • Fidelity’s 0% MER index funds are already at $1 billion
  • When costs are 0%, how do you pick a fund?
  • Indexing is not a passive investment strategy
  • Index construction and product implementation > low fees
  • A three factor regression on the Manulife Multifactor ETFs
  • Indexing is still a tiny part of the market
  • Not all factors belong in a portfolio
  • Dividend investing shouldn’t be so controversial
  • Dividends are not a spending rule
  • Financial experts don’t sound like experts to non-experts
  • Sell everything!

The stories we talked about:

The charts we talked about:

 Image Source: Vanguard

Image Source: Vanguard

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The Rational Reminder Podcast Episode 7 - Buying WEED

In Episode 7 of the Rational Reminder podcast we discussed the following:

  • Ottawa home prices
  • The longest bull market in history
  • What goes up does not have to come down
  • All time highs are normal and should be expected
  • Is the market overvalued?
  • Even the CAPE only explains 40% of future return differences
  • Should you dollar cost average or invest in a lump sum?
  • Your better off in the market than trying to time the market
  • Was WEED an obvious buy at $2.00?
  • There are still plenty of public companies to invest in
  • Small cap returns need to be taken in context
  • Bad behaviour is not always easy to spot

The stories we talked about:

The charts we talked about:

 Image source: Dimensional Fund Advisors

Image source: Dimensional Fund Advisors

 Image source: Ben Felix, PWL Capital

Image source: Ben Felix, PWL Capital

The Rational Reminder Podcast Episode 6 - Asset Location

In Episode 6 of the Rational Reminder podcast we discussed the following:

  • Subscribe to the podcast on iTunes!
  • Wealthsimple’s new no-commission trading platform
  • Do individual stocks ever play a role in a financial plan?
  • Can behavioural coaching be scaled?
  • Being aware of conflicts of interest
  • Wealth and happiness are not always connected
  • If you buy an R8, you’ll want a McLaren next
  • Retiring does not mean doing nothing
  • How do you retire without a financial plan?
  • The 4% rule is false! If you want to retire early
  • Asset location is hard to do, and might not add value

 The stories we talked about:

The Rational Reminder Episode 5 - Rethinking Mortgage Debt

In Episode 5 of the Rational Reminder podcast we discussed the following:

  • Checking your credit
  • Optimizing your credit score
  • Investing vs. paying off your mortgage
  • Asset allocation
  • Reframing mortgage debt
  • Are we in a tech bubble?
  • The rise in the US market is backed by fundamentals
  • How the largest Canadian pension funds invest
  • Skewness in VC returns
  • It’s still really hard to beat index funds

 The stories we talked about:

The charts we talked about:

 Source: Raymond Kerzhéro, PWL Capital

Source: Raymond Kerzhéro, PWL Capital

 Source: Raymond Kerzhéro, PWL Capital

Source: Raymond Kerzhéro, PWL Capital

 Source: Raymond Kerzhéro, PWL Capital

Source: Raymond Kerzhéro, PWL Capital

 Source: Correlation Ventures

Source: Correlation Ventures

The Rational Reminder Episode 4 - The Race to 0%

In Episode 4 of the Rational Reminder podcast we discussed the following:

  • After a successful launch, the podcast will live on! Thanks for the support and feedback
  • The longest bull market in history?
  • Are we repeating the tech bubble?
  • Why it still makes sense to hold bonds
  • Rebalancing isn’t always easy
  • The Lost Decade, sort of
  • Is tax-loss selling worth it?
  • Horizons’ marketing mistake
  • One decision funds
  • Index fund fees are finally at 0%
  • Sec lending is the future of index fund revenue
  • Charley Ellis on the history of active management
  • There are less willing losers today than there were in the past
  • The paradox of skill
  • Active managers underperform consistently
  • Daniel Kahneman does not believe active management works
  • If you think you have intuition about stocks, you’re wrong
  • Corporate DB pension plans are not risk-free

The stories we talked about:

The charts we talked about:

 Source: PWL Capital

Source: PWL Capital

The Rational Reminder Episode 3 - Amazon Eating the Stock Market

In Episode 3 of the Rational Reminder podcast we discussed the following:

  • Should you lease or buy your vehicle?
  • How are the new mortgage stress tests affecting Canadian real estate?
  • Home ownership is not required to build wealth, with a little discipline
  • Amazon’s size is not unprecedented
  • Successfully investing in growth stocks is really hard
  • Consolidation in the Canadian asset management industry
  • Independence benefits wealth management clients
  • Are backend loads on mutual funds still a thing?
  • Fund companies pushing anti-evidence
  • Financial advice is about more than just the portfolio
  • We are still waiting for lower stock valuations, high inflation, and high interest rates
  • If you’re not worried, you don’t have a high expected return
  • Are we living in exceptionally uncertain times?
  • Small cap and value returns comes from rebalancing

The stories we talked about:

The charts we talked about:

The Rational Reminder Episode 2 - Indexing is Here to Stay

In Episode 2 of the Rational Reminder podcast we discussed the following:

  • The underperformance of value stocks
  • Are we in a Winner Take All market?
  • Facebook’s crash
  • Global value performance
  • Canadian value premium at ~+5.5%
  • Rebalancing into the pain
  • Factor diversification
  • Having a philosophy and sticking with it
  • Index fund flows are slowing down in the US
  • Canadian active funds are still dominating passive ETFs
  • Markets are still efficient
  • Deciding to be an index investor takes work
  • Fewer highly skilled active managers make markets more efficient
  • Canadians might need to buy real estate to retire
  • Doctors were sold out by MD Management
  • Should you listen to the yield curve?
  • Michael Batnick’s chart crimes
  • DFA’s weights vs. the S&P 500 weights

The stories we talked about:

The charts we talked about:

Rational_Reminder_EP2.jpg

The Rational Reminder Episode 1 - The Cheapest Advice Probably isn't the Best

In our first ever episode of the Rational Reminder podcast we discussed the following:

  • The purpose of the podcast
  • How we invest
  • DFA
  • Factor investing
  • Our worst investment ever
  • Tripling our money in JDS
  • Hedge funds still can’t beat the market
  • CSA won’t deploy a statutory best interest standard
  • The cheapest financial advice may not be the best
  • Is a financial advisor worth it?
  • Cost vs. complexity

The stories we talked about: