Money For The Rest Of Us

Why 401k and other defined contribution schemes are flawed, leading to a generation of workers unprepared for retirement. What are the solutions to fix the mess.TopicsWhy 401k and other defined contributions haven't worked, despite their popularityWhy defined benefit pension plans declinedWhy 401k plans are treated like emergency fundsHow to combine the best of 401k and defined benefit pension plansSponsorsLinkedIn Jobs – Use this link to post your job for free on LinkedIn JobsMonarch Money – Get an extended 30-day free trialInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesThe Shift that Redefined Retirement Security by Shashwat Vidhu Sher—SSRNWas the 401(k) a Mistake? by Michael Steinberger—The New York Times MagazineWho Has Retirement Accounts? New Data Reveal Inequality in Retirement Account Ownership by Maria G. Hoffman, Mark A. Klee and Bria

Why we need distinct risk buckets: balancing our natural loss aversion with the allure of opportunities that offer the potential for massive upside.Topics covered include:What is modern portfolio theory, and what are some of its flawsWhy so many people have gotten wealthy by being undiversifiedHow to balance personal risk, market risk, and aspirational riskHow prospect theory explains our attraction to positively skewed opportunitiesWhy most people won't get wealthy unless they take some aspirational riskSponsorsNetSuite Delete Me – Use code David20 to get 20% offInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesPortfolio Selection by Harry Markowitz—The Journal of Finance, Vol. 7, No. 1. (Mar., 1952), pp. 77-91Safety First and the Holding of Assets by A. D. Roy—Econometrica, Vol. 20, No. 3 (Jul., 1952), pp. 431-449The Misbehavior of Mar

This week on the podcast, we share excerpts from Plus episode 484 on ETF size and the impact of QE, as well as Plus episode 493 on stock market inelasticity.You can learn more about Money for the Rest of Us Plus here. Insiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What does the Federal Reserve's policy rate cut mean for our portfolios? Will interest rates keep falling? What changes should we make?Topics include:What determines interest rates, and where are those drivers currentlyWhat is the best estimate of bond returnsHow duration works and why it changesWhat are some current fixed income investment optionsSponsorsLinkedIn Jobs – Use this link to post your job for free on LinkedIn JobsMonarch Money – Get an extended 30-day free trialOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesAsset CampFedWatch—CME GroupSummary of Economic Projections—US Federal ReserveInvestors may be getting the Federal Reserve wrong, again—The Economist Term Premium on a 10 Year Zero Coupon Bond—Federal Reserve Bank of St. LouisYield to Maturity Is Always Received as Promised by Richard J. Cebulaand Bill Z. Yang—Journal of Economics and FinanceThe Truth about Yield by Jason Bove and Mark Willauer—J.P. MorganRelated Episodes464: More Ways to Lock in Higher Yields in Cas

How do home equity investments, income share agreements, and music royalties work, and how can you participate?Topics covered include:How a home equity investment differs from a home mortgageWhat is the cost of home equity investmentsHow funding education through income share agreements has changedWhy artists sell royalties to their workHow individuals can invest in music royaltiesSponsorsNetSuite Delete Me – Use code David20 to get 20% offInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesUnlock Product Guide—UnlockPoint and Atalaya Capital Management Close Oversubscribed $141 Million Home Equity Investment Rated Securitization—Global NewswireWhat Colleges Should Know About Income Share Agreements and Private Education Loan Requirements by Rich Williams—HomeroomCFPB settles claims against operator of training program arising out of income share ag

What caused the 40% price increase in houses and rents, and what are governments doing to try to fix the problem.Topics covered include:Why 50% of the global population is frustrated with the lack of affordable housingHow the housing collapse as part of the Great Financial Crisis contributed to today's affordability crisisHow central bank QE programs have magnified the housing crisisHow restrictive zoning and short-term rentals contribute to the housing crisisWhat governments are doing to encourage more housing supplyWhat individuals can do until housing becomes more affordableSponsorsDelete Me – Use code David20 to get 20% offLinkedIn Jobs – Use this link to post your job for free on LinkedIn JobsInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesConcern over housing costs hits record high across rich nations by Valentina Romei and Sam F

In this episode, we explore the concept of optionality—how small, strategic decisions can lead to outsized rewards with limited downside risk. From ancient philosophy to modern financial strategies, discover how recognizing and seizing options can unlock opportunities in both life and investing.Topics covered include:How call and put options workThe difference between American and European style options and why it mattersWhy options are positively skewedExamples of using optionality in business and lifeWhy it can be challenging to commit when an option is "in the money"SponsorsShopify - Sign up for a $1 per month trial periodNetSuite - Download the CFO’s Guide to AI and Machine LearningInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesAntifragile by Nassim Nicholas Taleb—Penguin Random HouseThe Wisdom Of Finance: Discovering Humanity in the World

In Episode 491, we explore the five layers of investing, including which assets fit into each layer, and give examples of advertisements targeting each layer.The five layers are:1. Short-term trading2. Longer-term speculations3. Individual securities4. Diversified portfolios focused on underlying drivers and factors5. Maximum diversification with few changes and just a few holdingsEpisode SponsorsMonarch Money – Get an extended 30-day free trialLinkedIn Jobs – Use this link to post your job for free on LinkedIn JobsShow NotesAsset CampThe Role of Emotions in Financial Decisions by David Tuckett—ResearchGateMorningstar Active Passive BarometerRelated Episodes486: How Retail Traders Lose Big While Enriching Wall Street431: The Long-term Bullish Case for Gold306: Three Approaches to Asset AllocationSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How do buyouts, venture capital, and growth equity work? Has private equity outperformed the stock market, and can individual investors pursue these investment strategies?Topics covered include:How are private equity funds structured, and what are the feesHow is private equity performance measured, and how has it performedWhy does private equity have such a large dispersion of returns compared to the public stock marketWhat is private equity dry powder, and why is there much of itWhat are some ways individuals can invest in private equity and why should they use caution in doing soSponsorsLinkedIn Jobs – Use this link to post your job for free on LinkedIn JobsNetSuite Our Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesUnderstanding Private Fund Performance by Kaitlin Hendrix and Mamdouh Medhat—SSRNWhat Drives Private-Equity Performance Persistence? New Deal-Level Evidence by Axel Buchner and Susanne Espenlaub and Abdul Mohamed—SSRNUnlocking the Power of Relationships: Limited Partn

This week, we release one of David's favorite episodes from six years ago, Episode 203: Is Investing More Like Poker or Chess.Topics covered include:What is the difference between chess and poker.Why we need to separate the decision process from the outcome.How to improve the quality of our investment decisions.What are are wu-wei and qi and what role do they play in better decision making.SponsorsDelete Me – Use code David20 to get 20% offBetterment - the automated investing and savings appInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesThinking in Bets: Making Smarter Decisions When You Don’t Have All the Facts by Annie DukeThinking Fast and Slow by Daniel KahnemanThe Tao of Pooh by Benjamin HoffTrying Not to Try: Ancient China, Modern Science, and the Power of Spontaneity by Edward SlingerlandSee Privacy Policy at https://art19.com/priva

In episode 489, we examine three factors that contributed to this week's big stock market declines, analyze whether a recession is imminent, and review David's recent portfolio changes.Topics covered include:The benefits of looking at market and economic trends monthlyHow bad was the recent U.S. employment report and what is the Sahm RuleWhat are leading economic indicators saying about recession riskWhy the Federal Reserve will be lowering its policy rate, leading to lower cash yieldsWhy the Japanese yen strengthened, leading to market turmoilWhy investors are rotating from large cap growth to small cap value stocksHow David locked in higher yieldsSponsorsNetSuiteMonarch Money – Get an extended 30-day free trialInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesTranscript of Chair Powell’s FOMC Press Conference July 31, 2024—The Federal ReserveGoolsbee

What is the investment case for Ethereum, and what are the risks? A straightforward review of what ether and Ethereum are, how they work, and what it will take for the Ethereum blockchain to be successful.Topics covered include:Who launched Ethereum ETFs and what are the feesHow Ethereum differs from BitcoinExamples of applications built on the Ethereum blockchain including NFTs, stablecoins, DAOs, and tokenized real-world assetsHow Ethereum has evolved to lower fees, reduce supply, cut its energy use, and increase capacityWhat is Ethereum staking and how much can investors earn doing soWhat will cause ether to go up in priceSponsorsShopify NetSuiteOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesSpot Ethereum ETFs begin trading today: Here's what you need to know by Jason Shubnell—The BlockThe spot Ethereum ETFs' first week by the numbers by James Hunt—The BlockThe Idols NFT—theidols.ioRead Write Own by Chris Dixon—readwriteown.comEthereum is the Only Institution-Friendly Smart Contr

What we can monitor and do now in preparation for a 2030s depression, which may or may not arrive.Topics covered include:Why ITR Economics has been predicting a 2030s depression for over a decade.What are the early warning signs we can monitor for increasing risk of economic and financial turmoilWhat are U.S. and global population predictions by the Congressional Budget Office and the United NationsWhat is the status of Social Security and what would it take to make it more sustainableWhat are the impacts of a slowing or shrinking populationHow should we invest, and what other financial actions should we take in the face of long-term depression forecastsSponsorsDelete Me – Use code David20 to get 20% offMonarch Money – Get an extended 30-day free trialOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesTop 5 Causes of the 2030s Great Depression—ITR EconomicsThe Demographic Outlook: 2024 to 2054—Congressional Budget OfficeTestimony on Social Security’s Finances—Congressional Budget Office

Gambling in the stock market is increasing, with most traders losing money while generating billions of dollars per year for brokerages and wholesalers. Will all this trading lead to big market swoons?Topics covered include:Why sports gambling has grown so muchHow gambling in the stock market is measured, and how prevalent is itWhy most traders lose money but continue to trade anywayHow uninformed traders improve market liquidity and encourage trading by informed tradingWhy being an asset allocator is more rewarding and as intellectually stimulating as tradingSponsorsNetSuiteBetterment - the automated investing and savings appInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesHow Stocks Became the Game That Record Numbers of Americans Are Playing by Claire Ballentine—BloombergMURPHY, GOVERNOR OF NEW JERSEY, ET AL. v. NATIONAL COLLEGIATE ATHLETIC ASSN. E

Buffer ETFs protect against the downside while capping the upside. We examine them closely to see if they are worth it.Topics covered include:How buffer ETFs are structured and some current examplesHow buffer ETFs have performed over the past five yearsWhat are the risks of buffer ETFsHow loss aversion and narrow framing contribute to the popularity of buffer ETFsAre buffer ETFs worth it and what are some alternative strategies that could be used insteadSponsorsShopify NetSuiteInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesBlackRock Enters Booming Market for Stock ETFs With a 100% Hedge by Emily Graffeo—BloombergNew Stock ETF Offers 100% Hedge as Buffer Funds Nab $46 Billion by Emily Graffeo—BloombergThe Dynamics of Defined Outcome Exchange Traded Funds by Luis García-Feijóo and Brian Silverstein—SSRNMonetizing Loss Aversion for Fun and Profit—

Seven ways to increase the odds of living long into your retirement years (if you choose to retire).SponsorsMonarch Money – Get an extended 30-day free trialLifetime Money for the Rest of Us Plus membershipOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesPodcast Stats: How many podcasts are there?—Listen NotesQuality Over Quantity Is A Growth Strategy by Steven Goldstein—Amplifi MediaSlow Productivity by Cal Newport—Penguin Random HouseWhy our brains crave beauty, art and nature by Jemima Kelly—The Financial TimesWhy southern Europeans will soon be the longest-lived people in the world—The EconomistWhat I’ve learnt from two decades eating in Paris by Simon Kuper—The Financial TimesGetting Good Sleep Could Add Years to Your Life—American College of CardiologyClose friends can help you live longer but they can spread some bad habits too by Maggie Mertens—NPRUnited we thrive: friendship and subsequent physical, behavioural and psychosocial health in older adults (an outcome-wide longitudinal

Millions of fintech app users have lost access to their cash. In this episode, we explain why this happened and show you how to protect yourself when placing cash with traditional banks, neobanks, and fintech platforms.Topics covered include:The mass chaos in the fintech space spawned by the bankruptcy of Synapse Financial TechnologiesWhat are FBO accounts, and why they are so troublesomeWhat is the difference between a traditional bank, a neo bank, and a non-bankWhat to look for and protect yourself when investing your cash savingsSponsorsNetSuite Delete Me – Use code David20 to get 20% offOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesCHAPTER 11 TRUSTEE’S INITIAL STATUS REPORT BY UNITED STATES BANKRUPTCY COURT CENTRAL DISTRICT OF CALIFORNIA SAN FERNANDO VALLEY DIVISION—CourtListenerFintech platform Synapse raises $33M to build ‘the AWS of banking’ by TechCrunch—SynapseX Post by Jason Mikula—X"Full Reconciliation... May Not Be Possible," Synapse Trustee Says by Jason Mikula—Fintech

How a few high-impact successes drive up overall average outcomes in investing, business, and creative projects. How to harness positive skewness using a barbell approach. Learn when to mitigate risks and when to embrace them.Topics covered include:What is positive skewness and how does it manifest in investing, business and creative endeavorsHow power laws and the 80/20 rule workWhy we shouldn't beat ourselves up if we aren't incredibly successfulWhen should we reduce positive skewness and when should we embrace itSponsorsLinkedIn Jobs – Use this link to post your job for free on LinkedIn JobsBetterment - the automated investing and savings appOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesLong-Term Shareholder Returns: Evidence from 64,000 Global Stocks by Hendrik Bessembinder, Te-Feng Chen, Goeun Choi, K.C. John Wei—SSRNLong-Horizon Stock Returns Are Positively Skewed by Adam Farago and Erik Hjalmarsson—SSRNWealth Creation in the U.S. Public Stock Markets 1926 to 2019 by Hendrik

Why are homeowners seeing home insurance premiums increases of up to 70%, as David has? What can you do if your insurer drops you, you get a huge premium increase, or you can no longer afford coverage?Topics covered include:What are the primary drivers of home insurance price increasesWhy these increases don't show up in the U.S. consumer price indexHow the reinsurance market works and why reinsurers are passing on 50% premium increases to property and casualty insurers.What percentage of home insurers self-insureWhat else can homeowners doSponsorsDelete Me – Use code David20 to get 20% offNetSuiteInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesHome Insurance Is Clobbering Consumers. Yet It’s Barely Counted in Inflation. by Jeanna Smialek—The New York TimesNIPA Handbook: Concepts and Methods of the U.S. National Income and Product Accounts: Chapter 5

Why stock, ETF, and bond trades are optimized to settle in less than a day, allowing investors quicker access to their cash and securities. What are the benefits and costs of optimization in the relentless drive for cheaper, faster, and more profitable.Why countries are moving to T+1 settlement from T+2 for security tradesWhat will it take for securHow BlackRock and Franklin have launched Treasury funds that are tokenized and trade on the Etherium networkHow optimization works and what are the tradeoffsHow we can use satisficing and rules of thumb in order to cope with the complexity of the worldSponsorsYahoo FinanceMonarch Money – Get an extended 30-day free trialOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesAbout the ‘T+1’ Rule Making US Stocks Settle in a Day by Lydia Beyoud and Greg Ritchie—BloombergSEC Chair Gensler Statement on Upcoming Implementation of T+1 Settlement Cycle—SECWhat faster trading cycles will mean for US markets by Jennifer Hughes and Harriet Clarfelt—Th