Money For The Rest Of Us

We close out 2023 by answering your questions on active vs passive management, market timing, investing for status, what we learned from Charlie Munger, thoughts on a coming recession, worst investment mistakes, recent books that changed us, and more.  SponsorsMadison Trust Self-Directed IRA - Go Here to Learn More and Get Your $100 Off Promo CodeDelete 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 newsletter.Show NotesHow the World Really Works by Vaclav Smil—VikingThe Day the World Stops Shopping by J.B. Mackinnon—Harper CollinsEarth for All: A Survival Guide for Humanity by Sandrine Dixson-Declève, et al—Earth for AllBarbarian Days: A Surfing Life by William Finnegan—Penguin Random HouseTao te Ching: Power for the Peaceful by Lao Tzu (Author) and Marc Mullinax (Translator)—Fortress PressSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https:

Do the impressive returns in public and private markets stem from strategic financial engineering or reflect actual economic growth?How corporate profit growth is linked to economic growth, even though corporate profits are more volatileHow interest rates, tax rates, and stock buybacks influence corporate profits and stock returnsWhy there are fewer publicly traded stocksHow the increase in leveraged buyouts has impacted the economyHow private equity funds use financial engineering to boost returnsSponsorsNetSuite – Get your free KPI checklistsLinkedIn 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 NotesUS CEOs start to contemplate Trump, round 2 by Rana Foroohar—The Financial TimesEnd of an Era: The Coming Long-Run Slowdown in Corporate Profit Growth and Stock Returns by Michael Smolyan

One year after the release of ChatGPT, we explore the positive and negative paths AI could take and what individuals can do to assist with a positive outcome.Topics covered include:How David uses AI to increase his personal productivityThe societal and economic impacts of AI, including its potential to enhance corporate profitability and individual productivityChanges at OpenAI's executive level are examined, highlighting a shift in the organization's direction and philosophyWhat is Effective Altruism and why is it so focused on the catastrophic risks of AIWhat are the phases that would lead to a singularity in which AI poses a threat to humanityWhy AI is still in the early stages, and how should individuals, businesses and regulators treat it at this pointSponsorsMadison Trust Self-Directed IRA - Go Here to Learn More and Get Your $100 Off Promo CodeMoney Pickle – Schedule a free 45-minute video chat with a vetted financial advisor and ask them anything about your financial situation. Go here to schedul

In this bonus episode, David visits with Bill Yount and Becky Heptig of the Catching Up to Fi podcast in a wide-ranging discussion on investing using a systematic checklist approach.SponsorsMadison Trust Self-Directed IRA - Go Here to Learn More and Get Your $100 Off Promo CodeLinkedIn Jobs – Use this link to post your job for free on LinkedIn JobsMoney Pickle – Schedule a free 45-minute video chat with a vetted financial advisor and ask them anything about your financial situation. Go here to schedule your free session.Masterworks – invest in contemporary artMasterworks Disclosure:“net IRR” refers to the annualized internal rate of return net of all fees and costs, calculated from the offering closing date to the sale date. IRR may not be indicative of Masterworks paintings not yet sold, and past performance is not indicative of future results. See important Reg A disclosures: Masterworks.com/cd Insiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the

What are the economic and cultural benefits of tourism. What are the downsides to too much tourism. How to find the right balance.Topics covered include:How short-term rentals have changed tourismHow cities grapple with too many short-term rentalsWhat is the outlook for short-term rentalsHow much does tourism contribute to economic outputHow can tourism be harmful and helpfulThe example of CubaSponsorsMadison Trust Self-Directed IRA - Go Here to Learn More and Get Your $100 Off Promo CodeLinkedIn 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 newsletter.Show NotesInternational tourism revenue, percent of GDP - Country rankings—The Global EconomyU.S. Travel and Tourism Satellite Account for 2017–2021 by Sarah Osborne—Journal of US Bureau of Economic Analysis 2023 Short-Term Rental Mid-Year Outlook—AirDNAWelcome to Hochatown, the Town Created by Airbnb by J

What are the pros and cons of partially funding retirement expenses with an inflation-indexed bond ladder versus an immediate annuity? There is a big downside to TIPS ladders that many investors don't realize.Topics covered include:Why the stock market is more risky than many people realizeIs it too late to invest in TIPS as one advisor suggestsHow TIPS and TIPS ladders workHow immediate annuities workThe pros and cons of a TIPS ladder versus an immediate annuitySponsorsNetSuite – Get your free KPI checklistsMonarch 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 newsletter.Show NotesEffortless: Make It Easier to Do What Matters Most by Greg McKeownEssentialism: The Disciplined Pursuit of Less by Greg McKeownSkin in the Game by Nassim Nicholas TalebWorry-Free Investing: A Safe Approach to Achieving Your Lifetime Financial Goals by Zvi Bodie and Michael J. ClowesSafe Haven: Investing for

We discuss ten rules of thumb for individual investors to consider when saving and investing for and in retirement.Don't use institutional hand-me-downsStay close to home baseBeware of dragon riskMind your investment seasonsCatch the popping cornWatch for market swarmsTrack the economic windsFollow the traffic lightsDiversify your basketsDon't burn your shipsSponsorsMadison Trust Self-Directed IRA - Go Here to Learn More and Get Your $100 Off Promo CodeMonarch 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 newsletter.Show NotesHow to Invest Money E-bookRelated ContentComplete Guide to Mortgage REIT Investing - Money for the Rest of UsComplete Guide to Equity REIT Investing - Money for the Rest of UsEpisode 451: How Much Should You Invest in StocksSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Interest rates have been sliding for seven centuries. Dive into the historical forces driving this trend and examine whether the recent interest rate spike is just a blip on the radar.Topics covered include:How the supply of savings and the demand to borrow impact interest ratesWhy have interest rates been falling for over 700 years, and what might have changed recently to propel rates higherHow lower rates have helped households increase their net worth and reduce their financial vulnerabilityWhat are some lower-risk ways to take advantage of higher interest ratesSponsorsMoney Pickle – Schedule a free 45-minute video chat with a vetted financial advisor and ask them anything about your financial situation. Go here to schedule your free session.LinkedIn 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 newsletter.Show NotesThe Price of Money Is Going Up, and

Why investing in non-investment grade bonds, leveraged loans, and preferred stocks is potentially more compelling than investing in common stocks at present.Topics covered include:Why Howard Marks told institutional clients to sell stocks and buy high-yield bonds insteadThe contractual agreements comprising bonds, leveraged loans, and preferred stock give them an advantage relative to common stocksHow preferred equity exhibits attributes of both bonds and common stocksWhat is the expected return and risks for high-yield bonds, leveraged loans, and preferred stockHow do we invest in these three asset typesSponsorsDelete Me - Use code David20 to get 20% off- To get 20% off Delete Me go tohttps://joindeleteme.com/david20 and use Code David20Madison Trust Self-Directed IRA - Go Here to Learn More and Get Your $100 Off Promo CodeShow NotesSea Change - Memo by Howard MarksFurther Thoughts on Sea Change - Memo by Howard MarksInvestments MentionedSPDR Bloomberg High Yield Bond ETF (JNK)iShares iBoxx High Yield C

Our allocation to risky assets should vary based on the expected return, volatility, risk aversion, and how much we can earn risk-free. That means we should be taking less risk right now. Listen to learn why.Topics covered include:Why there are so few billionairesWhy the hedge fund Long Term Capital Management implodedWhy how much to invest is more important than where to investHow the Merton share formula can assist with determining what percent of our wealth to invest in risky assetsWhy are expected outcomes so much greater than the median outcome and why it matters to our investingSponsorsDelete Me - Use code David20 to get 20% off - To get 20% off Delete Me go to https://joindeleteme.com/david20 and use Code David20Masterworks – invest in contemporary artMasterworks Disclosure:“net IRR” refers to the annualized internal rate of return net of all fees and costs, calculated from the offering closing date to the sale date. IRR may not be indicative of Masterworks paintings not yet sold, and past performance

We explore six impacts of higher interest rates on housing, capital projects, stock buybacks, excess returns for stocks, bonds, and other asset classes, and individual opportunity costs.Topics covered include:Where current interest rates standCentral banker predictions for how long cash yields will stay this highWhy housing is the least affordable since the early 1980sWhy new apartment building construction has collapsedWhat has been the excess return for stocks, bonds, and other asset classes when interest rates are higher and lowerWhy there will be fewer stock buybacks and how that can impact earnings per shareWhich alternative investments do better when short-term interest rates are higherWhy financial opportunity costs have increased and how that should impact our investment and other financial decisions.SponsorsMadison Trust Self-Directed IRA - Go Here to Learn More and Get Your $100 Off Promo CodeNetSuite – Get your free KPI checklistsInsiders Guide Email NewsletterGet our free Investors' Checklist

What are the economic and financial system early warning signs that we should heed rather than get caught up in fearmongering? When should we start to worry about ballooning budget deficits, the national debt, a currency collapse, or the stock market?Topics covered include:Signals to monitor to see if things are falling apartHow much government debt is too much and why interest rates are keyWhy central banks don't control the stock marketWhy the dollar remains dominant, and what has to change for it to plummet in valueSponsorsMoney Pickle – Schedule a free 45-minute video chat with a vetted financial advisor and ask them anything about your financial situation. Go here to schedule your free session.LinkedIn 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 newsletter.Show NotesThe Dawn of Everything: A New History of Humanity by David Graeber and David Wengrow—Ma

Why you might want to lock in higher yields now, given real interest rates are the highest they have been in 15 years.Topics covered include:What was covered this year at the Federal Reserve Jackson Hole SymposiumWhat are the primary policy actions central banks take, and how do they influence interest ratesWhat is the neutral real rate of interest, and why is it importantWhy new ideas are central to an increasing standard of livingWhat would drive interest rates higher or lower from current levelsWhy now is an attractive time to lock in longer-term yieldsSponsorsMadison Trust Self-Directed IRA - Go Here to Learn More and Get Your $100 Off Promo CodeFactor - Use code david50 to get 50% off your meal orderInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter.Show NotesJackson Hole Economic Policy Symposium: Structural Shifts in the Global Economy—Federal Reserve Bank of Kansas CityPolicymaking in an age of shifts and breaks

David shares how thieves recently tried to smash and grab his luggage from his car while he was still inside it. He then explores property crime trends, whether they are increasing or decreasing, and why.Topic covers include:How thieves have stolen luggage from the same gas station multiple times per dayWhat have property crime rates been in the U.S. over the past few decades and since the end of the pandemicWhat are reasons property crime rises and fallsWhat is inventory shrink and how is it impacting retailersWhat can we do to reduce the risk of being a crime victimShow NotesChevron Oakland Hegenberger Rd—YelpMyths and Realities: Understanding Recent Trends in Violent Crime by Ames Grawert and Noah Kim—Brennan Center for JusticeReported property crime rate in the United States from 1990 to 2021—StatistaPandemic, Social Unrest, and Crime in U.S. Cities: Year-End 2022 Update—Council on Criminal JusticeCATALYTIC CONVERTER THEFTS NATIONWIDE SURGE ACCORDING TO NEW REPORT—Cision PR NewswireWhat the data says (and

How to balance saving, investing, and spending for a fulfilling life. Why you will probably reach your peak net worth sooner than you think and should start drawing down your nest egg earlier. Why we can't optimize for a fulfilling life but can still have one.Topics covered include:How to estimate how much to spend from your retirement assets so you die with zeroWhat is time bucketing and why it doesn't work for everyoneHow to balance the fear of making a change with the fear of missing outThe difference between making deliberate choices and maximizing our experiencesSponsorsMonarch Money - Get an extended 30-day free trialNetSuite - Get your free KPI checklistsInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter.Show NotesDie with Zero: Getting All You Can with Your Money and Your Life by Bill PerkinsThe Pathless Path: Imaging a New Story for Work and Life by Paul MillerdFour Thousand Weeks: Time Management for Mortals b

Three additional insights to help you confidently invest in fixed income. First, what are the different measures of bond yields, and which is best? Second, how to estimate the return for a bond ETF or fund and how long do you have to own it to achieve that annualized return? Finally, we explore a bond type that yields more than U.S. Treasuries, has never defaulted, and has the implicit guarantee of the U.S. government.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How badly has China's stock market performed except for one remarkable decadeWhat are the economic and governance factors that contributed to the underperformanceWhy it's too soon to write off China despite the structural headwindsWhat are the factors that contribute to economic growth and a robust stock market, and which emerging market countries display those factorsWhat are some ETFs to invest in countries with favorable economic tailwindsSponsorsUse code MONEY10 to get 10% off on your NAPA Autoparts online orderNordVPN – Click here for a special offerUse 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 newsletter.Show NotesState-Owned Enterprises Going Public: The Case of China by Xiaozu Wang, et al.—SSRNA Model of China's State Capitalism by Xi Li, et al.—SSRNHas China given up on state-owned enterprise reform? by Nicholas Borst—The InterpreterChina Regulator’s New Sl

From raging wildfires to devastating floods, how are these natural events reshaping our financial landscape? What if anything, should we be doing with our investments as a result?Topics covered include:The devastating Maui wildfire: What are the factors that led to one of the deadliest wildfires in US history.Global wildfire trends: Are they really increasing? The data might surprise you.The role of insurance companies: Learn how the giants of the reinsurance world, like Swiss Re and Munich Re, are navigating the increasing number of natural disasters.The complex interplay of climate change, urban expansion, and human choicesWhy IPCC is not highly confident regarding some weather impacts of climate change due to the natural variability in weather patterns.What should individuals do when there is a lack of details regarding a long-term potential threat?SponsorsUse code MONEY10 to get 10% off on your NAPA Autoparts online order.Masterworks – invest in contemporary artMasterworks Disclosure:“net IRR” refers

We share five things we have learned about stock index valuations, earnings, currency, and why value investing isn't dead.Topics covered include:How index providers divide the stock universe into large and small, growth and valueThe difference between the price-to-earnings ratio and earnings yield and which is betterHow earnings volatility can impact annual earnings growth and what to use to estimate future earningsHow value stocks often grow earnings faster than growth stocksHow value has outperformed growth in the last three yearsSponsorsUse code MONEY10 to get 10% off on your NAPA Autoparts online order.NetSuite – the leading integrated cloud business software suiteInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter.Show NotesAsset CampMoney for the Rest of Us PlusRelated Episodes102: What It Takes To Be A Value Investor261: Is Value Investing Dead?See Privacy Policy at https://art19.com/privacy and California Pr

Given climate change and other risks, how should you invest for the next forty years?Topics covered include:What predictions from the last forty years came true and which didn'tWhy the next forty years will have a lot of similarities to the last forty years despite the promise of AIWhy the scale and complexity of the world make big transitions away from oil, cement, and natural gas unlikelyWhy economic growth and consumption will likely continue leading to positive investment returnsHow should our portfolios and lifestyle be structured to build resilienceSponsorsMadison Trust Self-Directed IRA - Go Here to Learn More and Get Your $100 Off Promo CodeFactor - Use code david50 to get 50% off your meal orderInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter.Show NotesThe Third Wave by Alvin Toffler—Penguin Random HouseParcel shipping index 2022—Pitney BowesAmerica Is Drowning in Packages by Amanda Mull—The AtlanticHow to Sp