Talking Real Money - Investing Talk

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Ep. 1706: Bad to Worse Aug 13, 2025

Show notes

Don and Tom rip apart a sponsored “news” piece from the Puget Sound Business Journal pushing a company called FISYN, which promises to buy investors out of their annuities and deliver a “safe” 12% tax-free return via raw Texas land. They expose the misleading fine print, the founder’s disciplinary history, and the high-risk, illiquid nature of such private equity deals. Calls and questions cover long-term care insurance riders on annuities, portfolio allocation in deferred comp plans, Roth vs. tax-deferred placement for bonds, managing taxable brokerage cash vs. emergency funds, and dividend-vs.-total-return withdrawal strategies. They also clarify that QCDs can only come from IRAs (not 401(k)s or TSPs) unless funds are rolled over first. Throughout, they hammer home skepticism toward anything that sounds too good to be true, distrust of advertorial financial pitches, and the importance of planning before buying complex products.
1:35 Breaking the “golden handcuffs” of annuities—how FISYN’s pitch hooks investors
3:20 The too-good-to-be-true promise: 12% returns, equity kicker, no volatility, tax-free
3:49 Founder’s BrokerCheck record and lawsuits
5:15 Comparison to Woodbridge Ponzi scheme
6:32 The frying pan-to-fire swap: annuity to raw Texas land
7:37 Bonus shares and “free” Texas trip incentives
8:06 Critique of sponsored content posing as journalism
9:24 Reality check on raw land returns and costs
10:04 Broader issue: pay-to-play financial media
11:18 Caller Robert (TX): Fixed annuity with LTC rider—pros, cons, and better planning sequence
16:29 Insurance industry skepticism and “Wizards of Odds” nickname reveal
17:54 Caller John (WA): Deferred comp allocation—global, small-cap, emerging markets mix
19:18 Roth vs. tax-deferred bond placement and rebalancing flexibility
20:55 Revisiting the “Wizards of Odds” label for insurance companies
21:47 FISYN as a private equity example and why PE risk is often underestimated
23:35 High costs, valuation uncertainty, and past PE meltdowns
25:03 Total-loss potential in private equity investments
26:33 Caller Scott (NY): Using taxable brokerage for overflow cash—emergency fund priority and vehicle choice
30:34 Federal money market funds as short-term parking
31:54 Listener Thomas: Dividend withdrawals vs. total return strategy sustainability
34:43 Caller Pat: QCD rules—only from IRAs, rollover options, and who makes the rules
37:30 Paul Merriman “10 Myths, Lies, and Mistakes” episode plug
38:46 Podcast chart ranking and listener thanks
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Ep. 1705: Barron’s Bond Blunder Aug 12, 2025

Show notes

Today’s show exposes how Barron’s ran an undisclosed advertorial from a high-fee bond fund manager pushing junk-heavy, risky products while trashing traditional bonds with misleading comparisons. Don and Tom explained why safe bonds should stay short-to-intermediate term and simple, called out a Starlink “$127 for life” internet scam, and fielded listener questions on tax-adjusted rebalancing between traditional and Roth IRAs, trimming long-held Microsoft vs. American Funds, Social Security timing myths, and why Bitcoin isn’t an investment. An email question on replacing BND rounded out the episode with a reminder that its structure still works for most investors.
0:04 Opening; Barron’s undisclosed advertorial problem and high-fee, junk-heavy bond funds
5:06 Scam watch — Starlink $127-for-life ad and why nobody will protect you but you
9:41 Caller Rob: Tax-adjusted IRA rebalancing, simple three-fund global strategy with overlap
16:11 Caller Bob: Which to trim first — Microsoft vs. American Funds ICA
21:41 Caller Tony: Social Security timing and why trust fund worries aren’t a reason to claim early
26:27 Caller Bruce: Bitcoin as speculation, not an investment, and the altcoin glut
35:13 Email: Swapping BND for short/intermediate bonds — why BND’s structure still works
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Ep. 1704: Avoid Complexity Aug 11, 2025

Show notes

Don opens with a rant about Wall Street’s love of unnecessary complexity, focusing on “structured equity products” and other layered investments that promise protection but deliver lower returns at higher costs. The discussion covers the deceptive pitch, the billions invested in these products, and why a straightforward stock/bond mix is usually better. Larry Swedroe’s principles for prudent investing are highlighted, along with a reminder about diversification beyond the S&P 500—especially into international and emerging markets. Listener questions cover how to measure global exposure, medical IRA withdrawals, ETF dividend taxation, eliminating Empower as a middleman, and whether reinvesting dividends affects tax treatment (it doesn’t). The episode wraps with personal anecdotes from Don’s brokerage days, the evolution of his investing philosophy, and a few tech frustrations.
0:04 Don’s Wall Street rant on complexity and costs
1:12 Structured equity products and why they’re pitched
2:27 How they work and why fees are high
3:53 Study shows 7% annual drag vs. benchmarks
5:06 New AQR hedged/leveraged funds at 2.31% expense
7:02 Swedroe’s investing principles: peer-reviewed, low-cost, no timing
8:56 Importance of global diversification and emerging markets history
12:18 Listener Q: Measuring U.S. vs. non-U.S. exposure
13:44 Listener Q: Moving assets from Empower to Schwab
14:31 Listener Q: IRA withdrawals for medical expenses
17:36 Listener Q: ETF dividends—reinvest or not?
18:45 ETF tax advantage vs. mutual funds explained
19:17 Listener praise for Don’s principles leading to $1.7M portfolio
21:37 Don’s broker days selling high-fee products
23:30 Transition to radio and Business Radio Network
24:56 Call-in question pipeline is full for upcoming shows
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Ep. 1703: Your Q, Don's A Aug 08, 2025

Show notes

In this Friday Q&A edition, Don tackles five listener questions spanning kids’ UTMAs vs. 529 plans, Roth vs. pre-tax 403(b) contributions, filling portfolio gaps when a workplace plan lacks small-cap value, why indexed annuities are a costly sales pitch wrapped in deceptive promises, and how to help a recently divorced 26-year-old daughter find hope and financial focus. Along the way, he delivers mic technique tips, portfolio simplification advice, and a blistering breakdown of annuity sales incentives—plus a reminder to prioritize life and mental recovery over rushing into big purchases.
0:04 Florida heat, Friday Q&A setup, and microphone placement tips
2:29 UTMA vs. 529 rules, Roth transfer limits, and simplification advice
6:59 Mid-40s couple weighing Roth vs. pre-tax 403(b) contributions
9:29 Workplace plan fund gaps, avoiding PIMCO small-cap, and using other accounts to diversify
12:58 Indexed annuity dinner pitch breakdown—hidden costs, low returns, and high commissions
20:58 Helping a divorced 26-year-old refocus priorities, delay big purchases, and stay patient
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Ep. 1702: The End... Again? Aug 07, 2025

Show notes

Don and Tom dive headfirst into the wild world of bad financial predictions—specifically, the apocalyptic ramblings of Rich Dad Poor Dad author Robert Kiyosaki. They dissect his decades-long streak of failed forecasts, poke holes in his fear-fueled pitch for gold, silver, and Bitcoin, and remind listeners that gurus don’t predict the future—they profit from pretending they can. Listener questions cover 529 plan choices, 457(b) vs Roth IRA, the small-cap allocation in AVGE, and a plea for Don to never give up managing his own money.
0:04 Tom banned from pushing buttons—again
1:00 Why do we idolize financial “gurus” who are chronically wrong?
2:21 Enter Robert Kiyosaki: The doomsayer who keeps getting richer
3:05 Don confronts Kiyosaki over his bogus “guarantee” ad
3:53 His silver and market crash predictions: A 23-year flop fest
5:16 Latest Kiyosaki fear-pitch: Gold, silver, Bitcoin… again
6:37 His one right prediction (Bitcoin hitting $100K)
7:55 Critical reviews: Conspiracies, platitudes, and risky advice
9:22 Can Buffett, Lynch, or Bogle be called “gurus”?
10:24 Listener Q1: Fidelity 529 target date fund—too expensive?
11:26 UTANX and low-cost age-based 529 alternatives (like Utah’s plan)
14:02 Listener Q2: Roth 457(b) with high fees vs Roth IRA
16:47 Listener Q3: Does AVGE need a separate small-cap fund?
19:10 Listener Q4: Should Don stop managing his own money?
21:08 Why everyone needs a backup advisor—even advisors
22:17 Don’s voice acting love: Mighty Man Season 3 teaser
22:34 Listener Q5: AVUV vs AVGE—when and why to use each
24:20 AVGE asset breakdown—15 funds in one
26:12 Explaining the podcast schedule (Monday–Friday layout)
27:34 International listeners, Spotify vs Apple, and how to tune in
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Ep. 1701: Millions of Millionaires Aug 06, 2025

Show notes

This Talking Real Money episode dives into America’s millionaire boom—1,000 a day—and what it really takes to join the club. Don and Tom discuss inflation’s impact on wealth, the real sources of millionaire status (spoiler: it’s not crypto), and the critical role of forced savings via homes and 401(k)s. Listeners call in with questions on triple-leveraged ETFs (don’t), deferring capital gains on farmland, and gambling on tech stocks in retirement (also don’t). Plus, how to evaluate a financial advisor and why returns-based promises are a huge red flag.
0:04 The millionaire explosion: 1,000 new U.S. millionaires every day
1:15 Inflation vs. millionaire status: $1M ain’t what it used to be
2:06 Where wealth is coming from—homes and 401(k)s
3:10 Forced savings: why it’s more powerful than market timing
4:02 The third key to wealth: avoiding big financial mistakes
5:39 Financial Flinch Reflex: Don’s mock pharma ad for financial panic
6:55 Listener asks: how exactly do you invest to become a millionaire?
7:37 ETF basics for beginners + starting with a target-date fund
8:47 Caller: What’s a triple-leveraged ETF and is it a cheat code?
10:36 Why you shouldn’t pick ETFs based on past returns
11:05 Building a portfolio starts with a plan, not a product
12:03 TQQQ dangers: up 3x, down 3x…or 80% down in 2022
14:22 How to get help: no-pressure meetings, no sales pitch
16:15 Leveraged ETFs = gambling, not investing
16:52 Caller selling $1.8M Illinois farm: can you defer capital gains?
17:39 Yes—via 1031 exchange or potentially a QOF (but beware fees)
19:24 Dying: not a recommended tax strategy (but technically effective)
21:01 Caller in La Conner, WA: risky to keep all gains in 10 tech stocks?
23:21 $200K gain in 3 months? Congrats—now get out before you regret it
25:18 Why gambling with stocks in retirement is unnecessary risk
26:56 Caller Joe: interviewed 10+ advisory firms—how to choose?
28:03 Don’t trust advisors who promise future returns
30:25 The only advisors to consider: 100% fiduciary, no commissions
32:43 Caller Beverly: state bond fund seems risky—what should I do?
33:45 Use your IRA for safer bond funds like Vanguard BND
36:34 Why there’s no “rule of thumb” for stock/bond allocation
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Ep. 1700: What Drives Markets? Aug 05, 2025

Show notes

Don and Tom open the show with a lighthearted reminder that money doesn’t sleep—so neither do they. They dive into a New York Times article featuring Goldman Sachs researchers who identify five patterns that influence retirement accounts and market behavior. The duo emphasizes that while market predictions are near-impossible, understanding these patterns can inform better investor behavior—particularly the value of diversification. Listener questions cover whether you still need a financial advisor with a $2 million DIY retirement portfolio, the logic behind using a Roth as an emergency fund, tax-efficient asset liquidation, and Washington State’s retirement target-date fund asset mix. A politically charged final call touches on concerns about data integrity at the Bureau of Labor Statistics and its potential market impact.
0:04 Markets don’t rest—so why should financial advice?
1:07 What really drives your retirement account?
2:20 Five market-moving forces from Goldman Sachs/NYT
3:50 Surprise events, political chaos, and market reactions
5:34 Can you predict the market? Probably not.
6:47 Five patterns investors should know
8:12 Diversification actually works—examples and evidence
9:05 Market shock fatigue: building immunity to bad news
10:39 Quit aiming for home runs; try for batting .750
11:45 Why boring investing is the best kind
13:12 Listener Lisa: High-yield savings vs. Vanguard VMFXX
19:46 Lisa’s DIY retirement strategy—does she need an advisor?
22:32 Money market vs. high-yield savings yield comparison
23:06 Listener James: Is a Roth a good place for emergency funds?
25:13 Roth should be your last resort, not first cash stop
26:18 Don’t guess—plan
27:08 Listener Jimmy: Tax lots, cash needs, and overthinking
30:31 Portfolio drawdown strategy: tax hierarchy matters
32:00 Listener John: Washington State deferred comp concerns
34:26 Why build your own allocation in target-date funds
35:16 Private equity and bacon: Not in your 401(k), please
36:00 Listener Jason: Politicizing BLS jobs data—market risks
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Ep. 1699: Just Invest! Aug 04, 2025

Show notes

In this episode, Don and Tom tackle investor emotion during market highs and use a Schwab-inspired scenario to show how discipline beats market timing—every time. They walk through four fictional investors (lucky, disciplined, unlucky, and fearful) to reveal the long-term value of staying invested. The hosts also answer a listener’s question about breaking into the fiduciary advice world and finish with a blistering takedown of FIBA, a so-called fiduciary group pushing high-commission annuities to federal workers. This one’s part reality check, part rally cry.
0:04 Emotional investing and the danger of reacting to market highs
1:13 Why timing the market is so tempting—and so wrong
2:35 Four investor scenarios: lucky, disciplined, unlucky, and the guy who sat it out
5:03 20-year returns: how even the worst timing beat sitting in T-bills
6:25 Discipline as a risk-reduction strategy and emotional filter
8:16 Worst-case fear vs real-world data: even the unlucky come out ahead
9:21 Market rebounds: faster than most think, from 2008 to 2025
10:28 The fourth golden rule: Discipline beats market noise
13:03 Listener Zach thanks Tom—phone call advice pays off
13:34 Listener “Long” asks how to become a fiduciary advisor
14:55 Why financial skills alone don’t make great advisors
16:38 Should you start at a sales-driven firm? Probably not
18:04 Better idea: get your Series 65, find a DFA firm, study for CFP
20:08 Sales skills matter—but you don’t have to sell your soul
20:55 Listener asks about FIBA and a “too good to be true” annuity pitch
21:48 FIBA’s fake fiduciary claim and questionable annuity advice
24:30 Unregistered “advisors” pushing 9–11% commission products
26:25 Why these products are sold: $35K+ commissions
28:30 How to spot fake fiduciaries—and what real ones disclose
29:23 Tom and Don still steaming about annuity predators
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Ep. 1698: Saving Investors Aug 01, 2025

Show notes

With Don out, Tom Cock and advisor Roxy Butner tackle the increasingly hot question: should you trust a human or a machine with your money? They dig into two recent studies—one showing AI beating most fund managers, and another suggesting no long-term winner at all. Listener questions range from DIY ETF portfolios and Roth IRA conversion pitfalls to a wildly complex $2.5M retirement scenario involving crypto, precious metals, and a self-directed IRA full of land. Tom and Roxy break it all down with practical advice and a few well-placed jabs at donut holes, Darth Vader, and inheritance headaches.
0:04 More machine than man? Tom opens with AI vs. human money management
1:14 Stanford AI outperforms 93% of human fund managers—sort of
2:35 Another study says: no clear winner between AI and humans
3:12 Why persistent outperformance doesn’t exist—and that’s OK
3:39 Roxy joins: paddleboards, decorating, and financial clarity
4:16 Listener question: DIY ETF portfolio for granddaughter (too complex)
5:54 Portfolio breakdown: too much large cap, bonds in a Roth?
7:44 Listener question: Switching from Vanguard Star Fund to ETFs
9:32 Roth IRA tips: stock-heavy, not for bonds or cash
10:25 Listener question: Deductible IRA mistake—now what?
11:54 Backdoor Roth IRA rules, income limits, and pro-rata traps
13:19 Recharacterization forms and Social Security timing advice
14:44 Listener question: ETF dividends—should I reinvest or not?
15:14 ETF tax basics: capital gains vs. dividends
16:42 Listener question: $2.5M+ retirement plan review from Woodstock, GA
17:14 Income breakdown: Air Force pension, SS, rental income, part-time job
18:43 Self-directed IRA full of land, CDs, and cash
19:59 Precious metals and crypto: too much risk, not enough balance
20:35 Bonds or not? Depends on goals, not age
21:55 Planning questions: What’s the money for?
23:25 RMDs and taxes from a self-directed IRA
24:27 Fair market value complications and IRS penalties
25:46 Inheriting land in an IRA: yes, it’s a pain
27:28 Wrap-up: Why human advice still matters—even if AI’s getting smarter
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Ep. 1697: Unrealistic Expectations Jul 31, 2025

Show notes

Don and Tom take a reality sledgehammer to investors’ wildly inflated expectations for stock market returns. A new survey shows average Americans expect 12.6% after inflation, even as historical real returns rarely crack 9%. They explore how this overconfidence—fueled by recency bias and company loyalty—leads to dangerous behavior like under-saving, over-spending, and poorly diversified portfolios. With real-world client stories, historical decade-by-decade returns, and a deep dive into how long it takes portfolios to recover after major drops, they reinforce the need for long-term discipline and diversified planning. The episode wraps with audience questions on umbrella policies, retirement bond ladders, and smart ETF tax-loss harvesting strategies.
0:04 Don delays the podcast waiting for Tom’s arrival (with British accent)
1:30 Survey shock: Investors expect 12.6% real annual returns
2:28 Reality check: Actual global stock returns are closer to 9%
3:45 Dangerous real-world portfolios: 100% S&P 500 near retirement
5:30 One-stock portfolios tied to employers—what could go wrong?
6:50 Under-saving due to false optimism about future returns
7:14 Decade-by-decade historical real returns from 1930–2020s
10:13 The Dave Ramsey fantasy: 8% withdrawals on 12% returns
10:40 Recency bias: Why we forget recent downturns so fast
11:05 50% of years see 10% drops; 1 in 3 see 20% drops
12:47 Emotional investing vs. disciplined long-term planning
13:39 Listener Q: How long to recover from a major market drop?
14:22 Diversification shortens recovery time historically
15:36 Build for the worst case: 50% stock market drop
16:32 Listener Q: Does Ivan need an umbrella policy with $350K net worth?
17:57 Umbrellas are rarely needed—but the industry sure sells them
18:54 Listener Q: Is LifeX 10-year bond ladder a good retirement tool?
20:20 It’s mostly return of principal—DIY Treasury ladders are cheaper
22:40 Don’t be fooled by nice websites and big yield promises
23:24 Listener Q: Can AVGE replace four-fund ETF portfolio for tax loss harvesting?
24:32 Swap Avantis for DFA funds—nearly identical, wash-sale safe
25:56 Parting shots: Buy a decent mic, don’t let emotion control your portfolio
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