Talking Real Money - Investing Talk

Latest Episodes:

Ep. 1636: Modern Money Myths Meet Their Match May 01, 2025

Show notes

On this myth-busting episode of Talking Real Money, Don and Tom tackle persistent financial fables that sound logical but often lead investors astray. With help from a Kiplinger list and their own experience, they dissect myths around mortgage payoff returns, Roth conversions, Social Security fears, withdrawal rules, and tax refunds—plus three bonus myths that still haunt conversations today. Along the way, Don shares his own recent experience filing for Social Security online (spoiler: it was surprisingly smooth), and they answer listener questions about muni bond funds and a bizarre Social Security payback tax mix-up. As always, it’s myth-busting with a side of snark and a dash of real advice.
0:04 Myth-busting opener and Greek mythology jokes1:03 Myth #1: Paying off a 5% mortgage equals a 5% return5:14 Myth #2: Roth conversions always reduce taxes7:57 Myth #3: Social Security is going bankrupt13:20 Myth #4: The 4% rule guarantees retirement success17:16 Myth #5: It's better to get a tax refund than owe taxes18:54 Bonus myths: “I can save later,” “Investing is zero-sum,” and “High-cost funds perform better”21:21 Listener question: Social Security payback tax confusion26:42 Listener question: Best muni bond ETF for a high-tax-bracket senior
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Ep. 1635: Scares, Stockpiles and Smart Planning Apr 30, 2025

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Tariffs, fear, and stockpiling—oh my! Don and Tom break down how consumer sentiment, not just consumer spending, is shifting dramatically under the weight of tariff uncertainty. They connect behavioral shifts—like Googling “recession” and panic-buying tires—to bigger economic signals and what it all means for investors. From the role of emergency savings to the misleading pitch of indexed annuities, they dismantle hype and stress the importance of sticking to a real plan. They also field smart questions on Roth conversions, muni bonds, and whether now is the time to invest that idle cash. Oh, and don’t worry: most of our toilet paper is made right here in the good ol’ USA!
0:11 Consumers drive the economy—and investment returns0:47 Sentiment is slipping fast, and it could trigger a slowdown2:05 “Recession” and “depression” searches spike amid uncertainty3:11 Tariffs shift what we buy: food in, luxury out4:24 What investors should do now: boost emergency savings7:22 Auto stockpiling and tariff-fueled panic buying8:50 Prices rising, brand loyalty falling, and psychology shifting10:27 Volatility confuses perception—despite flat portfolio returns12:16 Emergency funds are real insurance without the gimmicks14:14 Spry 102-year-olds and the power of Bulgarian yogurt17:47 Best muni bond fund choice for high tax brackets: VTEB20:31 Can’t milk a Buckeye, but they might ward off arthritis22:52 Roth conversions: should you pay the tax now or wait?28:57 Indexed annuities: steak dinners, sales tricks, and the ugly truth34:16 Why the commissions are so high—and the returns so low37:55 Got cash on the sidelines? Here's what to do before investing39:27 Final advice: plan first, invest later, ignore the noise
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Ep. 1634: Your Brain’s Investing Mistakes Apr 29, 2025

Show notes

Our memories—and sometimes our parents'—shape how we invest, often more than logic or data. Don and Tom break down how generational financial trauma, recent market trends, and asset class myths (like gold and U.S.-only investing) skew our thinking. They call out flawed stock picking contests, revisit the real long-term returns on gold versus stocks, and explain why short-term memory leads to bad long-term decisions. Listener questions hit everything from where to park house savings to bond fund risks, rebalancing strategies, and simplifying retirement saving using the TSP. Oh, and yes, the laundry room podcast myth lives on, and the Fyre Festival somehow still smolders in the background.
0:04 Don and Tom settle into the show—studio quirks, mic levels, and inviting questions
0:52 How memory bias—from the Great Depression to dot-com boom—influences investment behavior
2:07 Family stories from the Depression era and why stock picking games teach the wrong lesson
2:54 Why investors wrongly believe growth stocks always beat value—thanks to recent performance
5:20 Myths about market trends: U.S. dominance, buy-the-dip thinking, and time horizon confusion
7:46 Gold mania: Recent price surge vs. long-term returns—spoiler, stocks win
9:58 Long-term perspective: $10k in 1980—Gold vs. Treasuries vs. Global portfolio
10:28 Listener: Where to park house construction funds short-term—ETFs vs. money markets
13:30 Why those new ultra-short ETFs may be a trap
15:17 Listener: Should I buy callable bonds with 6% yields? And what’s with PIMCO’s “14%”?
17:36 Risks of leveraged bond funds like PDI—why they don’t belong in a stable portfolio
19:46 Listener: How often should I rebalance in a 401(k)?
23:12 Listener in Albuquerque: Should I go all-in on the C Fund for simplicity?
25:39 Roth vs. TSP—what matters more: today’s tax rate or the future’s unknowns?
27:33 Future goals: quarterly travel in retirement and pizza roof update
28:22 Investing in “brands” like Fyre Festival—don’t
32:30 $63 offer for the Fyre trademark, and a plug for free fiduciary advice
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Ep. 1633: Leverage: Fast Fortune or Failure Apr 28, 2025

Show notes

Don and Tom dive into the seductive but dangerous world of leverage, starting with real estate and quickly moving into the even riskier territory of leveraged ETFs. They explain how leverage magnifies both gains and devastating losses, using real-world examples like the Direction 3X Treasury Bull and Bear funds, which either crushed or annihilated investor money. They caution listeners that these “extra touchy” funds are pure speculation, not investing, and explain why most people should stay far away. The episode wraps with smart listener questions on direct indexing, Roth rollovers, and the hidden risks in trying to beat the market on your own.
0:04 How leverage props up real estate and investing myths
1:32 The dark side: Leveraged funds and massive losses
2:49 Triple leverage dangers: 90% losses vs. 266% gains
5:38 Long-term performance: both leveraged bulls and bears lose
7:52 Even treasuries show wild volatility with leverage
9:57 Why leveraged funds are pure speculation, not investing
11:44 Risk explained through standard deviation comparisons
14:16 Listener question: Direct indexing vs. S&P 500 returns
17:44 Listener question: Roth 401k rollover to Roth IRA tips
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Ep. 1632: More Raised Hands Apr 25, 2025

Show notes

In this listener Q&A episode, Don dives into some powerful topics—from calling out the sales-driven heart of the financial services industry to explaining how bond index funds are built and breaking down the tax realities of non-retirement brokerage accounts. A caller wrestles with guilt over a bad annuity recommendation for a dying relative, prompting a raw conversation about the system’s moral middle ground. Don shares his own early days as a product peddler, highlights red flags to look for in firm ADVs, and walks through the Medicare vs. FEHB decision matrix. If you’re seeking peace, clarity, or just a solid tax lesson, this one delivers.
0:04 Opening reflection on aging, money, and why this show matters
1:17 Reminder to send questions via TalkingRealMoney.com or call live on Saturdays
2:38 Listener shares regret over a bad annuity recommendation from a familiar advisor
4:02 Don’s early days as a top-tier salesman turned financial “advisor”
5:21 Why most advisors aren’t fiduciaries—and why it matters
6:29 MarketWatch study reveals only ~1% of advisors are true fiduciaries
7:58 Never trust financial advice based on friendship or affinity
8:49 Next caller: How are bond index funds weighted?
9:15 Explanation: Bond indexes are also market value weighted
10:37 Why bond ETFs are mostly U.S. Treasury securities
11:34 Should a retired federal employee with FEHB skip Medicare Part B?
13:12 Don’s personal Medicare math and “if it ain’t broke…” approach
13:41 New CFP asks: What should I look for in a firm’s ADV as a job seeker?
15:02 Red flags: Conflicts of interest, broker registrations, insurance licenses
17:18 Align your investment beliefs with the firm’s philosophy
17:31 Last question: How is a taxable brokerage account taxed?
18:42 Explanation of interest, dividends, and potential capital gains
20:31 Don reiterates that real help—not a sales pitch—is always the goal
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Ep. 1631: Gold Doesn't Work–Your Money Should Apr 24, 2025

Show notes

Gold is back in the headlines, but should it be in your portfolio? Don and Tom take a fresh (and frequently hilarious) look at the shiny metal that never seems to deliver. From Fort Knox to Costco’s gold bar rush, they trace gold’s lackluster long-term returns and its overhyped reputation as a hedge. They break down why physical gold fails as an investment, why GLD is better (but still meh), and why long-term investors might already have enough exposure through diversified funds. Plus: a Medicare premium surprise fix, the case of the copper penny, and a brief but loud murder of crows.
0:04 Gilded White House jokes lead into a serious look at gold
1:00 Don and Tom reunite—same page, same side, same skepticism on gold
1:57 Yahoo Finance: gold’s biggest quarter since 1986
2:34 Gold’s ancient history and the Second Boer War detour
3:48 What’s a hedge, really? Gold vs. inflation
4:21 15-year performance: gold vs. S&P 500
5:40 1980 to 2024: gold’s long climb back to break even
7:10 110 years of gold prices—brief spikes, long plateaus
8:54 The emotional allure of physical gold (and why it’s irrational)
9:44 Physical gold: storage, insurance, and Armageddon prep
11:10 GLD: a better, but still limited, gold investment
12:49 Gold’s chart pattern: flat, spike, crash, repeat
13:26 Why gold isn’t a real investment—it doesn’t grow
14:16 Gold mining stocks as an indirect investment
15:02 Surprise! Taiwan Semi uses gold in chip production
15:34 Crypto vs. gold: at least gold is pretty
16:07 Atomic number nerdiness and family science failures
16:39 Q&A: Will one-year income spike raise Part B premiums?
18:06 IRMAA form and exceptions for life-changing events
20:02 Medicare Part B premium ranges and adjustments
21:10 Listener Perry wonders: if pennies go away, can we melt them?
22:34 Today's pennies: mostly zinc, not a copper mine in your jar
23:56 Will the penny ever die? Bureaucratic inertia says no
24:14 DIY penny production? Just don’t.
25:16 Podcast etymology: Apple vs. The Guardian debate
26:51 Outro chaos: crows, jokes, and how to ask your questions
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Ep. 1630: The Best New Strategy is Old Apr 23, 2025

Show notes

When markets get bumpy, emotions take the wheel—and that’s exactly why Don spends this solo episode reminding listeners that logic, evidence, and simplicity still win in the long run. He digs into why private investments aren't the magic they claim to be (even when Vanguard jumps in), why diversification still beats sexy strategies, and how the best “alternative” to bad investing is simply building a solid plan and sticking to it. Listener calls explore structured products, the Sharpe ratio, reverse mortgages, and how to spot a real fiduciary in the wild.
0:04 Money mistakes, solo hosting, and listener calls
1:17 Market volatility and emotional reactions
2:07 Logic and evidence beat financial “magic”
3:11 Vanguard’s alt fund and private asset hype
4:28 Private equity: opaque pricing, no liquidity
6:16 High-cost alternatives underdeliver
7:41 Vanguard alt fund: high fees, weak returns
9:13 Caller: staying long-term with S&P 500
10:20 Don: diversify beyond S&P with VT
11:30 Sharpe ratio explained; structured product skepticism
13:08 Structured notes: high fees, poor transparency
15:00 Fama quote: Few new ideas ever work
16:03 Caller: What does Berkshire Hathaway actually do?
17:23 Buffett builds value—why you can’t replicate it
20:08 You already own Berkshire in index funds
21:37 Caller: does currency manipulation matter?
23:32 Short answer: not really
25:45 Ignore most financial news—it’s just noise
27:22 Don flying solo this week
27:57 Caller: how to find a real fiduciary
31:16 Why Don doesn’t do meetings, and where to get help
36:12 Caller: reverse mortgages and property financing
39:55 Trusts and protecting assets—call a lawyer
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Ep. 1629: Less Risk Can Cost More Apr 22, 2025

Show notes

Don flies solo on this episode of Talking Real Money, fielding calls and calling out the nonsense in fancy investment gimmicks. From market-neutral funds to buffered ETFs, he lays out the case for simplicity, diversification, and discipline over complexity and high fees. Along the way, he compares real-world returns of flashy funds to the humble Vanguard Balanced Index, explains the math behind risk and reward, and gently teases listeners dabbling in covered calls and premium farming. With real estate worries, Schwab steak dinners, and Tesla bulls turned cautious, this episode is classic Don: blunt, funny, and laser-focused on keeping it real… money.
0:04 Friendly welcome and a call for co-hosting help as Don flies solo
1:16 Call-in number shared, and Don apologizes for occasionally sounding political
3:01 Markets are volatile—skip the politics, let’s talk practical moves
3:59 Media fear-mongering and the pitch for “alternatives”
5:13 Barron's & WSJ pitch fancy stuff—Don calls it gimmickry
7:15 Long-term market history shows why patience wins
8:54 The Campbell Systematic Macro Fund vs Vanguard Balanced Index
11:20 Comparing performance, risk, and costs—spoiler: Vanguard wins
12:45 Complexity benefits salespeople, not investors
13:33 Jim from Tacoma asks about “buffered ETFs”
14:02 Don explains buffered ETFs, costs, and gimmick risk
16:23 The danger of complex products with little upside
17:41 Expense ratios and risk in buffered funds vs Vanguard again
19:34 Greg from Florida gets pitched “Schwab Personalized Indexing” over grouper
22:15 Direct indexing: useful, but only for big portfolios
23:20 Planning is more powerful than piecemeal strategies
25:58 High costs, tax strategies, and why a real plan matters
28:00 Laura in Olympia asks about selling her home to retire
29:24 Market timing fears and the power of diversification
30:59 Passive income myth and the burden of managing property
31:56 Adjusting risk with age and leaning on fiduciary advice
33:14 Real estate market is strong—Don gives Laura confidence
34:34 Jason from Sammamish—the “Tesla Bull”—asks about premium farming
36:01 Writing covered calls to buy into VONG—Don offers cautious perspective
37:51 Don’s stockbroker days and every strategy eventually failing
39:09 Covered calls as fun, not a serious strategy—Don doesn’t want copycats
39:52 Don signs off with a reminder: invest simply, plan wisely, and stop guessing
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Ep. 1628: Wall Street Wants You Scared Apr 21, 2025

Show notes

In this episode of Talking Real Money, Don McDonald and Tom Cock discuss practical strategies for navigating recessions without panic or unnecessary market timing. They critique the constant, fear-driven speculation around economic downturns and emphasize maintaining a disciplined, long-term approach. Highlighting actual investor behavior from Dalbar studies, they explain why market timing almost always results in poorer returns. Tom humorously criticizes aggressive pickup truck drivers and touches on avoiding common recession-investing mistakes, advocating instead for careful asset allocation, understanding emotional risk tolerance, and maintaining a sensible emergency fund. Listener questions prompt discussions on treasury ladders versus bond funds, the impact of expense ratios, and effective short-term cash management.
0:10 Surviving and thriving during recessions
0:26 Probability of recession discussions
1:04 Don criticizes recession scare tactics
1:46 Humorous digression about pickup trucks
2:49 Audience wants solutions, not problems
3:48 Avoiding common recession investing mistakes
4:39 Wall Street Journal example of market timing errors
5:29 Importance of emergency cash for retirees
6:04 Risk versus loss in investing
6:28 Understanding emotional risk tolerance
8:01 Critique of Wall Street's short-term focus
8:36 Long-term investing approach regardless of recession
9:01 Dalbar study reveals poor market-timing results
10:51 Long-term Dalbar investor returns vs. market returns
13:09 Humorous tangent on global population
13:44 Listener questions segment begins
14:33 Discussing asset allocation and bond fund concerns
16:18 Bond ladder vs. bond fund debate
17:20 Examining long-term bond fund returns
18:09 Benefits and drawbacks of bond funds
19:28 Comparing money market fund options (DTAXX)
21:06 Expense ratios significantly impact returns
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Ep. 1627: Your Proper Risk Apr 16, 2025

Show notes

Don and Tom explore the role of risk, resilience, and rational investing as they tackle stock market uncertainty, Roth conversion confusion, and Robinhood’s attempt to lure new users. They mix in practical advice with plenty of caller questions—plus a detour into air-dried laundry, social media skepticism, and an appreciation for the film Tune Out the Noise. It's Talking Real Money in its purest form: smart, skeptical, and occasionally funny.
0:04 Intro: Making money more understandable
1:09 Tom’s tech issues and growing role of the stock market
2:11 When you should sell stocks in retirement
3:31 Risk capacity vs risk tolerance explained
5:14 Funny promo: Financial Flinch Reflex (FFR)
6:32 Stock market participation then vs now
7:04 Caller: Gratitude for 'Tune Out the Noise' documentary
8:16 The real goal of the show: Tuning out the noise
10:45 Caller Paul on clothesline nostalgia and laundry talk
13:05 Documentary's backstory, David Booth’s art & Dimensional’s origins
14:30 Why market timing makes you crazy and poor
15:57 Caller Tom sees a Facebook Roth ad—what gives?
17:46 Breaking down legitimate Roth conversion strategies
19:31 Don’s rant on Facebook, Tom’s retreat to LinkedIn
20:39 Caller Roger: Can you convert RMDs into Roth? (Spoiler: no)
21:37 Clarifying RMDs vs Roth conversions—rules & misunderstandings
24:14 Direct 401(k) to Roth IRA conversion—confirmed
25:59 Q: Why add bonds if you're 20 years from retirement?
28:03 How real people react to 50% portfolio drops
29:16 The truth about emotional investing and loss tolerance
31:08 Why Robinhood’s "free money" comes at a cost
32:56 Custodians vs Gamifiers: Schwab, Fidelity, and the Robinhood trap
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