Talking Real Money - Investing Talk

Latest Episodes:

Ep. 1606: Prices Also Fall Mar 18, 2025

Show notes

In this episode of "Talking Real Money," hosts Don McDonald and Tom Cock address recent market volatility, emphasizing that despite headlines about markets "nosedives," the S&P 500 is still up 10% over the past year and only down 4.4% year-to-date, while globally diversified portfolios have fared even better with minimal losses. They criticize alarming financial media headlines that cause investor panic and warn that emotional reactions to market fluctuations are more damaging to portfolios than market corrections themselves, which historically last about 100 days. The hosts field caller questions about retirement account allocation strategies, including keeping bonds in traditional IRAs while holding stocks in Roth IRAs to maximize tax advantages, and explain investment terminology such as large/mid/small cap classifications and value versus growth distinctions. They also address Dave Ramsey's claim that investing $100 monthly from ages 25-65 would create a millionaire, calculating that with a 10% return it would yield about $637,000, though Ramsey likely assumes a 12% return based on the American Funds Investment Company of America's historical performance, which they argue sets unrealistic expectations for future investors.
0:04 Market reactions and recent trends - S&P 500 up 10% over past year despite media negativity
2:50 Baby Boomers and market concerns - critique of alarmist headlines about retirement portfolios
5:05 Investing strategies for volatile markets - importance of discipline and avoiding emotional reactions
6:14 Understanding portfolio allocation - caller question about bonds in Roth vs. traditional IRAs
10:15 Dave Ramsey's $100/month millionaire claim - analysis of investment return calculations
19:44 Importance of risk tolerance - historical performance of American Funds with significant downturns
23:31 Evaluating old retirement plans - advice on moving a $45,000 government retirement account to an IRA
26:22 Investment terminology explained - definitions of large/mid/small cap, growth vs. value stocks
32:59 Understanding bond investments - short-term (under 3 years), intermediate (4-10 years), and long-term (10+ years)
35:28 Engaging with financial education - information about speaking engagements and consultation opportunities
Learn more about your ad choices. Visit megaphone.fm/adchoices

Questions? Comments? Click!

Ep. 1605: Catching Some Zs Mar 17, 2025

Show notes

In this episode of "Talking Real Money," hosts Don McDonald and Tom Cock discuss generational investing habits, highlighting concerning trends among Gen Z investors who start investing at age 19 but often engage in high-risk behaviors like options trading (36%), cryptocurrency (42% of males), and margin trading (25%). Unlike Baby Boomers who typically began investing at age 35, Gen Z relies heavily on questionable financial advice from social media "fin-fluencers," with approximately half using platforms like TikTok for investing guidance. The hosts worry these gambling-like behaviors could lead to devastating losses and eventual disillusionment with investing altogether, contrasting this approach with their recommended strategy of long-term, diversified investing in index funds like Vanguard Total World Stock Index. The episode also addresses listener questions about optimal places for liquid savings and strategies to manage retirement income to avoid IRMAA Medicare surcharges, emphasizing the importance of tax planning in retirement.
0:04 Generational wealth distribution and control among Baby Boomers
2:06 Investment start ages across generations (Baby Boomers: 35, Gen X: 32, Millennials: 25, Gen Z: 19)
3:56 Concerning investment behaviors of Gen Z - options trading (36%), cryptocurrency (42%), and margin trading (25%)
7:23 Risks of relying on social media for financial advice and the problems with "fin-fluencers"
9:38 Long-term index fund investing versus short-term gambling approaches
14:39 Listener question: Where to keep liquid funds in today's interest rate environment
16:02 IRMAA (Medicare surcharges) planning and tax-efficient retirement withdrawal strategies
19:39 RetireMeet 2025 resources and financial advisory services
Learn more about your ad choices. Visit megaphone.fm/adchoices

Questions? Comments? Click!

Ep. 1604: These Questions Five Mar 14, 2025

Show notes

It's another Friday Q&A:
1:38 Inherited IRAs Explained
3:34 Understanding Short-Term Bond Funds
5:35 Tax Implications on Dividends
6:40 The Role of Mid-Cap Investments
8:43 Withdrawal Strategies in Retirement
Learn more about your ad choices. Visit megaphone.fm/adchoices

Questions? Comments? Click!

Ep. 1603: Misplaced Confidence Mar 13, 2025

Show notes

In this episode, Tom and Don explore retail investors' behaviors influenced by users of platforms like Wall Street Bets, highlighting the risks faced by inexperienced traders in high-stakes options trading. We discuss poor investment habits driven by overconfidence, the gambler's fallacy, and behavioral finance pitfalls such as confirmation bias. We reiterate the importance of diversification and long-term strategies over trend-following. Then, we address listener questions on retirement planning and fiduciary advice.
3:08 The Gambler's Fallacy
7:01 Confirmation Bias in Investing
13:27 Understanding Risk in Investing
16:11 Listener Questions and Answers
21:02 Retirement Planning Strategies
Learn more about your ad choices. Visit megaphone.fm/adchoices

Questions? Comments? Click!

Ep. 1602: Social inSecurity Mar 12, 2025

Show notes

Today, Don and Tom discuss essential personal finance and retirement planning strategies. They consider the future Social Security and the need to delay benefits for better payouts while advising young listeners to establish emergency funds and utilize 401(k) and Roth IRA benefits. The hosts caution against misleading bank promotions and provide personalized insights on listener questions regarding insurance policies and tax implications.
2:05 Concerns About Social Security
5:03 Social Security and Retirement Planning
5:29 Social Security Class Announcement
7:30 Investing for Young Adults
8:28 Emergency Funds and 401k Options
10:33 Real Estate Considerations for Young Adults
14:06 High-Yield Savings Accounts Discussion
24:10 Gimmicks in Banking Rates
28:33 Roth Conversion and Capital Gains
35:04 Market Performance and Emotional Investing
Learn more about your ad choices. Visit megaphone.fm/adchoices

Questions? Comments? Click!

Ep. 1601: Partisan Portfolios Mar 11, 2025

Show notes

In this episode, we examine the intersection of politics and investing, highlighting how emotional decisions can cloud judgment. We discuss politically-themed ETFs, like the Defiance MAGA ETF, emphasizing that economic factors, not political trends, influence stock prices. Listeners are cautioned against allowing political affiliations to dictate investment strategies, as this can lead to underperformance. Using Walgreens as an example, we underscore the importance of diversification over individual stock investments. We answer listener questions about tax regulations and advocate for low-cost index funds and ETFs for long-term success.
2:16 Don's and Tom's Politics
4:34 Should You Invest Politically?
8:08 The Risks of Individual Stocks
21:43 The Fall of Walgreens
30:44 Fidelity vs. Schwab: A Comparison
33:48 Understanding Zero Coupon Funds
Learn more about your ad choices. Visit megaphone.fm/adchoices

Questions? Comments? Click!

Ep. 1600: Build Better Mar 10, 2025

Show notes

In this episode, we examine the key principles of constructing an investment portfolio, focusing on asset selection tailored to individual needs. We address listener questions about foundational components like stocks and bonds, featuring Paul Merriman's four-fund model for balanced diversification. The conversation includes the value of international investments and real-life scenarios illustrating successful strategies. We also discuss the implications of tax-efficient fund choices and my perspective on using traditional investments over Roth accounts for children.
0:34 Portfolio Population Basics
2:24 Diversification Discussion
6:09 International Investments
13:12 Social Security Insights
18:13 Early Retirement Experiences
23:10 Roth Accounts for Kids
Learn more about your ad choices. Visit megaphone.fm/adchoices

Questions? Comments? Click!

Ep. 1599: Q&A Duo Mar 07, 2025

Show notes

In this Q&A episode, Don and Tom address listener questions about comparing Vanguard funds with Avantis Global Equity Fund, review an Army officer's retirement portfolio, provide debt management guidance for a young professional, discuss options for handling an old 403(b) plan, and explain fund benchmark comparisons for Dimensional Funds.
[0:04] Introduction and explanation for Q&A format change
[3:07] Comparing Vanguard funds to Avantis Global Equity Fund (AVGE)
[7:34] Army officer's retirement planning and investment portfolio review
[16:34] Debt hierarchy guidance for young professionals
[18:11] Managing an old employer 403(b) plan at Fidelity
[21:54] Understanding Dimensional Funds performance vs benchmarks
Learn more about your ad choices. Visit megaphone.fm/adchoices

Questions? Comments? Click!

Ep. 1598: Bouncing Around Mar 06, 2025

Show notes

In this episode of "Talking Real Money," Don and Tom discuss investment risk using "volatility scores" to compare investments. They break down how the ARK Innovation ETF's higher returns come with extreme volatility and steeper losses compared to the Vanguard Total World Stock Index.
They answer listener questions, suggesting a fee-only fiduciary advisor to someone with a broker-built portfolio of individual stocks and annuities. They also recommend a retirement plan update for a long-time follower moving from saving to spending phase.
Throughout the show, Don and Tom emphasize understanding investment volatility, diversification, and portfolio rebalancing with their trademark mix of financial know-how and friendly banter.
[0:04] Intro to Financial Freedom
[1:55] Don's Vision Pro Experience
[3:03] Understanding Risk as Volatility
[5:35] Types of Investment Risk
[7:18] Portfolio Drawdown Concerns
[9:48] ARK ETF's Extreme Volatility
[13:22] Index Fund Rebalancing
[14:13] VT vs ARKK Performance Comparison
[16:53] Listener Questions Begin
[24:51] Finding a Fiduciary Advisor
[31:16] Transitioning to Retirement
Learn more about your ad choices. Visit megaphone.fm/adchoices

Questions? Comments? Click!

Ep. 1597: Financial Fear Factors Mar 05, 2025

Show notes

From Saturday's second radio show hour:
2:04 Magical Technology and Reality
3:05 Understanding Risk in Investing
5:42 Measuring Investment Risk
7:20 The Importance of Drawdown
13:25 The Volatility of Investments
14:12 Comparing Investment Options
16:55 Live Questions and Listener Insights
18:04 Portfolio Rebalancing Strategies
19:41 Call for Listener Engagement
21:50 Evaluating Investment Portfolios
24:53 Choosing the Right Financial Advisor
31:18 Preparing for Retirement
Learn more about your ad choices. Visit megaphone.fm/adchoices

Questions? Comments? Click!

Our TOPPODCAST Picks

Follow Us

Stay Connected

Talking Real Money – Investing Talk

Related Podcasts

Links

Stay Connected