Talking Real Money - Investing Talk

• Hedge Secrets?

  At Talking Real Money, we’re here to reinforce core investing principles: diversify, plan carefully, and never attempt to predict market swings—a point underscored by famed hedge fund manager Ray Dalio, who advocates holding multiple uncorrelated asset classes rather than timing market downturns. Dalio warns of economic shocks comparable to past crises like the dot-com bust but emphasizes preparation, not prediction, urging investors to diversify across stocks and bonds to mitigate volatility. We explore the practicalities of bond investing, noting bond ladders as a potential strategy, though bond funds usually suffice for most investors. Additionally, we caution against market timing, highlighting that missing just a few of the market’s best days over decades could dramatically reduce returns. Ultimately, successful investing relies on consistent strategy and prudent allocation—not reactionary moves based on fear or speculative predictions. 1:58 Dimensional Funds documentary discussion 2:38 Hedge fund manager Ray Dalio’s predictions and strategy 3:58 Dalio emphasizes asset diversification 5:48 Comparing podcast viewership and popularity 8:05 Critique of leveraged ETFs and annuities 11:10 Preparation beats market timing 14:57 Bond ladders vs. bond funds explained 19:06 Bond market volatility in downturns 21:45 Listener question on tax-efficient bond investing 26:58 Dangers of market timing highlighted 31:18 Clarifying listener confusion about RMDs 35:27 Advice on state-specific tax consultation Learn more about your ad choices. Visit megaphone.fm/adchoices

  --------  

  45:25
• Don't Cry for Me

  At Talking Real Money, we consistently emphasize that investing requires diversification, low costs, planning, and acknowledgment that predicting the future is impossible—a lesson humorously highlighted by the saga of Argentina's 100-year bond. Originally mocked after Argentina defaulted in 2020, this bond, offering an initially enticing 7.9% yield, remarkably bounced back following political reforms under Javier Milei, outperforming both U.S. Treasuries and Austria's similar bond, which lost around 80% of its value. This underscores that obvious, high-risk investments can sometimes yield surprising returns, but also emphasizes that bonds, even seemingly safe ones, can exhibit volatility akin to stocks, as evidenced by the 30% drop in U.S. Treasuries in 2022. For retirement portfolios, bonds should primarily provide stability, not speculative gains, and investors must carefully manage strategies such as required minimum distributions (RMDs), transferring old plans into current employer plans to strategically delay taxes. Ultimately, market unpredictability reinforces our fundamental belief that the future remains uncertain for investors and pundits alike. 1:40 Argentina's 100-Year Bond 2:19 Comparing Bonds: Argentina vs. Austria 3:46 The Risks of Long-Term Bonds 5:05 Lessons from Argentina's Bond 7:16 Rethinking Fixed Income Strategy 9:12 Future Predictions on Bonds 11:11 Listener Questions Begin 12:10 Understanding RMDs for 403Bs 14:54 The Debate Over Financial Advisors 15:59 Comparing Investment Strategies Learn more about your ad choices. Visit megaphone.fm/adchoices

  --------  

  28:19
• You're Asking Away

  On this Friday's episode of Talking Real Money, Don McDonald continued his weekly tradition of answering listener questions, covering practical financial concerns in a straightforward and engaging way. He tackled questions ranging from understanding bid-ask spreads when purchasing ETFs, to choosing the best short-term investment options, such as high-yield savings, CDs, and money market funds. Don also clarified the subtle differences between various Vanguard money market funds, providing guidance on picking the right option based on security and yield. Additionally, he discussed managing retirement withdrawals effectively, particularly addressing conservative strategies for individuals close to retirement who want to protect their principal. Throughout the episode, Don emphasized the importance of balancing risk and returns, maintaining discipline, and using diversified, low-cost investment strategies to manage finances sensibly. 1:23 Understanding Bid-Ask Spreads 6:25 Short-Term Investment Strategies 9:59 Choosing the Right Money Market Fund 13:37 Political Discussions on Social Security 17:10 Managing Retirement Withdrawals Learn more about your ad choices. Visit megaphone.fm/adchoices

  --------  

  25:03
• Quiet Investing Science

  On today's Talking Real Money, Don McDonald welcomed two special guests from Dimensional Fund Advisors (DFA)—founder David Booth and co-CEO Dave Butler—to discuss their unique investment philosophy and the importance of tuning out financial noise. The conversation centered around DFA's documentary, "Tune Out the Noise," which emphasizes an academically-based investment strategy focused on sensible, disciplined investing rather than market timing and stock picking. Don and his guests explained the distinct difference between DFA's approach and traditional active or passive investing, highlighting DFA's strategy of combining the strengths of indexing with flexible, thoughtful trading to enhance returns. They also discussed how the rise of ETFs and technological advancements are reshaping the investment industry, making it easier for investors to access diversified, low-cost portfolios. Finally, the episode stressed the critical importance of managing emotional reactions to market volatility, reinforcing the value of staying disciplined and diversified to achieve long-term investment success. 2:34 Tune Out the Noise Documentary 4:23 Dimensional's Unique Investment Philosophy 7:31 Adding Value Over Indexing 8:20 Early Challenges and Data Evidence 11:25 The Role of Nobel Laureates 15:24 Active vs. Passive Investing 19:04 The Future of Active Management 23:32 Evolution of the Mutual Fund Industry 26:02 Technology's Impact on Investing 28:28 Behavioral Aspects of Investing 30:47 The Rise of ETFs 32:37 The Trust Factor in Finance 35:22 Tuning Out the Noise Learn more about your ad choices. Visit megaphone.fm/adchoices

  --------  

  45:05
• Biggest Losers

  On today's Talking Real Money, Don and Tom dug deep into some surprisingly terrible mutual funds—those wealth destroyers that somehow manage to lose investors piles of money year after year. They highlighted the infamous ARK funds, which collectively burned through billions, and even exposed a Fidelity long-term treasury bond index fund that unexpectedly landed among the biggest losers over the past decade, illustrating precisely why they've been cautioning against holding long-term bonds. Alongside their usual listener Q&A, they shared practical tips on safely managing cash between high-yield savings and money market accounts and clarified how much cash to keep handy in checking. Politics briefly entered the scene, sparking a discussion on managing risks amid increasing national debt—spoiler alert: don't panic; stick to a disciplined, diversified plan. Finally, they praised a savvy grandmother setting up Roth IRAs for her granddaughters, reaffirming their belief that a simple, globally diversified fund like AVGE can help secure financial futures with minimal fuss. 1:20 The Reality of Mutual Funds 2:38 Understanding Value-Destroying Funds 4:17 The Importance of Avoiding Bad Investments 7:35 Long-Term Treasury Bonds: A Cautionary Tale 10:02 Choosing the Right Savings Account 13:32 Managing Your Checking Account Balance 16:09 Navigating High-Yield Accounts 17:48 Retirement Planning and TSP Allocation 22:04 Inheriting Wealth: A Financial Strategy 23:14 The Need for a Financial Plan 24:45 Managing Risks in a Political Landscape 28:36 Grandparenting with a Roth IRA 30:52 Investing for the Next Generation 34:17 Evaluating a Cross-Border Portfolio Learn more about your ad choices. Visit megaphone.fm/adchoices

  --------  

  45:28

More Business podcasts

Trending Business podcasts

About Talking Real Money - Investing Talk

Talking Real Money - Investing Talk: Podcasts in Family