Talking Real Money

A CFP mark reflects meaningful education, but it does not guarantee clean disciplinary history, fee-only advice, or an unwavering fiduciary relationship. Don and Tom examine the gap between reassuring credentials and the disclosures investors may find through FINRA BrokerCheck and SEC adviser records.They explain what investors should verify before hiring anyone: compensation, dual registration, product sales, disclosures, and a written fiduciary commitment. The designation can matter—but it cannot replace due diligence.Questions? Comments? Click!

An 11.15% coupon sounds irresistible—until you read the trapdoors. Don and Tom unpack a listener's BNP Paribas auto-callable structured note and ask the question Wall Street hopes nobody asks: what actually has to happen before you get paid?The answer includes contingent coupons, the worst-performing of three indexes, a five-year lockup, bank credit risk, and a cliff where a 41% market loss can become your 41% loss. Add a 1.5% advisory fee, and this complicated promise fails the show's favorite tests: simplicity, transparency, and liquidity.Then the phones open for retirement-planning software, a 19-year spousal age gap, fears about Japan dumping Treasuries, an Irish financial jingle, and the difference between a mega backdoor Roth and an ordinary backdoor Roth.1:05 — The structured note pitch: 11.15% with fine print4:03 — Contingent coupons and the worst-of-three rule6:50 — The 40% buffer cliff and five-year lockup9:34 — Simplicity, transparency, and liquidity fail11:50 — How big is the structured-note market?13:20 — The Financial Fysics album makes its debut15:35 — DIY retirement-planning tools and a big age gap21:56 — Could Japan dump a trillion dollars of Treasuries?25:16 — Compound interest meets an Irish pub27:26 — 401(k), mega backdoor Roth, and contribution limitsWant more Money Music? Hear extended versions from Don's fictional AI band, The Financial Fysicist, on Apple Music: https://music.apple.com/us/album/let-the-boring-money-in/6805953759 or Spotify: https://open.spotify.com/album/0G06JEvGsyw6SISfAOxLt6?si=ah2uVVWuQwmxTqjBeta8AQQuestions? Comments? Click!

Dimensional Fund Advisors founder David Booth joins Don and Tom to explain why better investing begins with accepting uncertainty instead of pretending to predict it. They discuss staying calm through frightening markets, controlling what investors can control, and why missing a rebound can permanently damage a plan.Booth also traces the evidence behind factor investing—market, size, value, and profitability—and explains why robust research must survive different countries, decades, and data sets before it belongs in a portfolio.Click here to order David's Book "Stay Calm"Questions? Comments? Click!

Risk and reward are inseparable, even when an investment pitch makes the danger hard to see. Don and Tom explain why higher expected returns require accepting uncertainty, why recent gains do not erase future losses, and why products promising market-like returns without market risk deserve skepticism.Then they answer listener questions about market odds, taxes, Chime, and finding truly fiduciary advice.Questions? Comments? Click!

It's Friday Q&A—with a small experiment. Don slips one AI-generated voice among the listener questions and challenges you to identify the robot, with his complete two-book library hanging in the balance.The financial questions are thoroughly human: where to keep a future car fund, whether an $11,000 Roth-conversion program earns its fee, when children can fund Roth IRAs, and what happens when bond holdings move from a traditional IRA into a Roth.Don also tackles the enviable problem of an oversized HSA, its inheritance rules and post-65 flexibility, plus the timing tradeoff for Social Security survivor benefits.0:46 — Friday Q&A and the find-the-robot challenge4:03 — Where should a $70,000 car fund live?7:21 — Is an $11,000 Roth-conversion plan worth it?9:39 — Roth IRAs for children—and newborns11:13 — Bonds that move into a Roth conversion13:54 — The $500,000 HSA problem16:43 — When a surviving spouse should claim Social SecurityQuestions? Comments? Click!

Robinhood says it wants to be everything to investors—but its fastest-growing attractions look a lot like a casino. Don and Tom examine prediction markets, options, crypto, payment for order flow, and the uneasy fit between fiduciary advice and a brightly lit door to speculation.They explain why gamification and enormous transfer bonuses can be especially dangerous for inexperienced investors. If the goal is long-term wealth rather than entertainment, a boring, diversified custodian still beats a platform built to monetize trading excitement.Then they answer questions about using bonds during a retirement downturn, combining CD ladders with target-date funds, the trap behind eye-popping mortgage REIT dividends, and better ways to give money to grandchildren.1:03 — Robinhood and its merry band of revenue streams3:00 — Vlad Tenev explains the financial supermarket5:36 — A fiduciary office beside a casino door8:28 — Monetizing speculation instead of investing13:14 — Using bonds when retirement begins in a downturn21:06 — CD ladders and target-date funds23:36 — The truth behind 17% REIT dividends27:28 — UTMA, UGMA, 529s, and gifts for grandchildrenQuestions? Comments? Click!

The market's long winning streak has investors wondering whether a crash is waiting in the wings. Don and Tom look at the S&P 500's run, the lost decade that followed the 1990s boom, and why international diversification changed that outcome dramatically.They also explain why market timing asks the impossible: missing the worst days sounds wonderful, but missing the best days can be devastating. The less theatrical answer is still the useful one—make a plan, understand your tolerance for risk, diversify broadly, and sit still.Then it's on to a near-retiree offered a portfolio stuffed with individual stocks, whether international bonds belong in a simple portfolio, why a professionally managed 20-fund portfolio is different from a DIY one, and how to rebalance when Roth and traditional accounts complicate the job.3:33 — A historic market streak—and what might follow4:31 — The lost decade diversification softened7:08 — Why timing the best and worst days fails9:22 — The boring answer: plan, diversify, be patient14:04 — Individual stocks on the eve of retirement?23:02 — A quick Celebration restaurant detour24:28 — Do international bonds belong in your portfolio?27:38 — When 20 funds are too many—or not32:24 — Rebalancing across Roth and traditional accountsQuestions? Comments? Click!

Wall Street has declared yet another “year of the stock picker.” Don and Tom examine Morningstar and SPIVA data showing how few active large-cap funds beat their benchmarks—and why high fees, trading costs, taxes, short horizons, and fierce competition keep the odds tilted toward low-cost diversification.Then Greg asks where stocks and bonds belong while he begins Roth conversions. The discussion covers asset location, small-cap value exposure, international diversification, tax brackets, IRMAA, and keeping the portfolio's overall risk level intact.Finally, they tackle an all-U.S. Roth for a 20-year-old, a couple's pre-retirement glide path, and a pricey Fidelity target-date fund that can be replaced inside a Roth without creating a tax bill. Stay through the end for a money-music bonus.0:37 — The “year of the stock picker” returns2:41 — Active funds trail their benchmarks again8:30 — Why passive keeps winning13:29 — Asset location for Roth conversions22:09 — Should a 20-year-old invest only in the U.S.?23:59 — Reducing risk before retirement28:24 — Escaping an expensive target-date fund31:53 — Reviews, inflation, and a money-music bonusQuestions? Comments? Click!

Rule Seven of Financial Physics says there is no new news: by the time public information reaches you, the market has already reacted.Don and Tom explain why neither headlines nor illegal insider tips offer ordinary investors a durable edge, why fast trading and miracle systems disappoint, and why accepting market returns is the saner path.Then they compare JAAA with BND, help a student balance FAFSA concerns with emergency savings and a Roth IRA, warn against reaching for yield, and untangle a Roth 401(k) rollover.0:44 The shortest investing book1:54 Rule Seven: No New News3:27 Public information versus insider information6:48 Why trading the headlines is futile9:37 Efficient markets and accepting market returns11:27 The trouble with miracle trading systems14:13 Talking Real Money music online17:17 JAAA versus BND for bonds20:21 FAFSA, emergency savings, and a Roth IRA22:28 Reaching for yield with riskier bonds24:49 Rolling over a Roth 401(k)Questions? Comments? Click!

Friday's question pile ranges from the safest bond fund around to the harder question of what retirement is actually for. Don sorts through the choices with his usual preference for simple, sturdy answers.He weighs the TSP G Fund against BND, checks the bona fides of Raisin and The College Investor, and argues that leaving work makes sense only when something better is waiting on the other side.Then comes a candid disagreement over 21-fund portfolios, followed by a pension decision for a well-funded couple who can afford to self-insure. The court may have advisors, but Don is still happy being its jester.Topics03:26 Is the TSP G Fund enough fixed income?05:47 Raisin and The College Investor: useful and legitimate?09:44 Retirement needs a purpose, not just an age12:37 Twenty-one funds, advisor complexity, and honest disagreement16:11 Single-life versus joint-survivor pension choices18:57 Social Security timing, RMDs, and a very strong retirement planQuestions? Comments? Click!

Being great at running a company does not make anyone a market oracle. Don and Tom unpack the money regrets of successful CEOs—and the costly confidence that often follows success.They draw the line between business skill and investment skill, explain why financial literacy matters, and make the case for diversification over hindsight, stock-picking games, and concentrated bets.Then they turn to listener questions on catching up at 43, investing a church endowment, an underperforming robo portfolio, and where stock dividends should go near retirement.Topics03:46 CEOs, money regrets, and false confidence08:10 Financial literacy without the stock-picking game10:21 Tesla hindsight and the bets we didn't make11:41 Asset allocation and the cost of being too conservative15:20 Business owners and concentration risk17:48 Catching up on retirement saving at 4321:22 A 60/40 church endowment with a 2.5% draw23:12 When a robo portfolio badly trails the market25:35 Dividends, bonds, and rebalancing near retirementQuestions? Comments? Click!

Could a nation of steadier 401(k) investors make markets calmer—or will algorithms, options, and meme-stock behavior keep the ride bumpy? Tom and Roxy weigh the forces pulling volatility in both directions.Next, an almost-80-year-old with a $4 million portfolio asks who should coordinate the inheritance plan. The answer is a team effort, with the financial advisor calling the plays and the CPA and estate attorney handling their specialties.They also decode RIA versus IAR, flag the conflicts that can come with dual registration, and tackle asset location, TSP diversification, inherited money, and whether to sell Vanguard ETFs before adding DFA or Avantis.Timestamps:0:44 A French café opening2:40 Will more investors mean less volatility?7:12 Who quarterbacks an estate plan?10:15 RIA, IAR, broker-dealer, and fiduciary conflicts15:25 Inherited money, TSP, Roth, and brokerage choices21:21 Adding DFA or Avantis to Vanguard ETFsQuestions? Comments? Click!

AI's appetite for data centers is sending tech giants to the bond market—and some of that debt will still be around in 2075. Don and Tom look at the scale of the borrowing and why a tempting yield deserves a closer look.They separate coupon rate from yield to maturity, explain senior unsecured debt, and show how brutally interest-rate-sensitive a 50-year bond can be. The verdict: these bonds may belong in a broad index, but they don't belong on your personal shopping list.Listener questions cover sequence-of-return risk, Roth IRAs versus 529s for children, and the smart savings order for a 19-year-old earning real money for the first time.Timestamps:0:38 AI, data centers, and corporate debt3:40 The $50 trillion U.S. bond market5:21 Big Tech's borrowing binge7:06 Coupon rate versus yield to maturity8:10 The danger in a 50-year bond12:45 Sequence-of-return risk in retirement16:05 Roth IRAs and 529s for children20:14 A young saver's order of operationsQuestions? Comments? Click!

Why is financial forecasting so persuasive when its track record is so poor? Don and Tom open the Book of Financial Physics to Law No. 6—“Nobody Knows Nothing”—and explain why stock pickers, market timers, and highly paid pundits cannot reliably tell you what comes next.Then they answer listener questions about permanent life insurance and deferred income annuities, trusted contacts and two-factor authentication, and whether a wealthy client can copy an advisor's portfolio while paying for advice on only part of the assets.Finally, they simplify a 529 allocation for a three-year-old and detour through vacation smoke, Disneyland prices, and the value of ignoring suspicious messages.00:39 The sixth law of financial physics01:48 Nobody Knows Nothing04:19 The real cost of active management05:14 What prediction makes investors miss07:00 Active funds lose market share10:22 Pundit performance versus the index12:00 Send in your questions13:27 Permanent life insurance and deferred annuities17:36 Securing investment accounts21:02 Why trusted contacts matter22:14 AUM fees and copying a portfolio25:45 The simple 529 allocation28:24 Smoke, Disneyland, and family vacationQuestions? Comments? Click!

Required minimum distributions don't have to trigger a fire sale. Don explains how an in-kind transfer can move an investment from an IRA to a brokerage account while preserving the holding and resetting its cost basis.Then it's back to school: a cut-off Coverdell question, the unusual strength of the TSP G Fund, and a surprisingly useful 4% money market account that can behave a lot like checking.The finale sorts out UTMA 529 rules, beneficiary control, and why a low-cost age-based portfolio is often the simplest college-saving choice.Timestamps:0:43 Friday listener Q&A begins3:26 RMDs without selling investments7:16 Moving a Coverdell into a 5298:24 Why the TSP G Fund stands out10:12 A 4% money market checking alternative12:50 UTMA 529s, control, and age-based fundsQuestions? Comments? Click!

Wall Street can promise dazzling returns, but private equity's fees, illiquidity, and tax drag may leave investors with far less than the headline number. Don and Tom unpack research showing how ordinary index funds and municipal bonds can deliver comparable after-tax results with much less risk.Then a startling poll claims many Americans believe stocks only help the richest—and that gambling may beat investing. The hosts push back with the math, then tackle when taxable brokerage accounts belong after retirement savings.They close with practical answers on international bonds, paying college costs from a 529, and the surprisingly complicated quest for a signed copy of Don's novel.03:47 — Private equity promises vs. after-tax reality10:38 — Do stocks only benefit the top 1%?13:03 — Gambling or investing: which odds win?16:36 — Retirement accounts before taxable brokerage19:47 — Do you need international bonds?21:08 — The cleanest way to use 529 money22:32 — A signed copy of The Line Uncrossed?Questions? Comments? Click!

Fresh from passing the CFP exam, Roxy Butner joins Tom to work through a classic retirement fork: take the richer lifetime teacher pension, or accept a $315,000 lump sum and invest it. The math matters, but so do longevity, survivor benefits, liquidity, investing temperament, and the temptation to spend the pile.Next comes a clever tax-payment question: can IRA withholding replace quarterly estimated payments during Roth-conversion years? They explain why paying conversion taxes from taxable money usually preserves more long-term value.The show closes with a 5.25% mortgage-versus-investing decision and a portfolio x-ray that finds a dividend-heavy international fund missing small companies, value stocks, and emerging markets.00:58 Roxy passes the CFP exam02:46 Teacher pension or $315,000 lump sum?08:36 Rolling a pension lump sum to an IRA09:33 IRA withholding versus estimated taxes13:48 Pay off a 5.25% mortgage or invest?17:34 Fixing an under-diversified retirement portfolio21:50 Living—and spending—with a sound planQuestions? Comments? Click!

Just when you thought America had invented every possible retirement account, along comes the Radish. Don and Tom dig into the proposed employer-funded savings plan, the man who helped create the 401(k), and whether workers really need another tax-advantaged vegetable in an already crowded garden.The practical answer is simpler: start saving now. A Roth IRA and one broad global stock ETF can do more good than waiting for the perfect account—or learning every acronym in the retirement alphabet.Listener questions cover diversifying beyond rental real estate, whether spreading accounts across custodians is useful cyber insurance, moving emergency cash from Ally to SGOV, Roth 401(k) matching, and Roth IRA withdrawal timing.00:37 Mountain music and backyard radishes02:40 The retirement-account alphabet04:36 What exactly is a Radish plan?09:04 Save now; simplify later11:53 Diversifying beyond rental real estate16:15 TSP, SEP IRA, and custodian cyber risk19:06 SGOV for an emergency fund21:26 Roth 401(k) matching and Roth IRA accessQuestions? Comments? Click!

Financial Physics rule five asks the uncomfortable question every investor should answer: what is the worst that could happen? Don and Tom revisit leverage in 1929, the crashes of 2000, 2008, and 2020, and the practical defenses that keep a bad market from becoming a ruined plan.Then the questions turn to retirement planning: managing IRMAA while considering Roth conversions, weighing long-term-care insurance against self-insuring, and judging whether a $1.6 million portfolio can support a modest withdrawal despite a pricey advisor.Finally, they untangle the five-year rule when Roth 401(k) money moves to a Roth IRA—and confirm that Tom, not Don, is the resident grump.00:39 Financial Physics rule five: prepare for the worst04:35 Leverage, crashes, and the lost decade06:27 Risk near and in retirement12:23 IRMAA brackets and Roth conversions16:46 Long-term-care insurance or self-insure?22:30 Retirement withdrawals and advisor fees24:34 Roth 401(k) rollovers and the five-year clockQuestions? Comments? Click!

Don opens with a spirited defense of AI as a creative tool—especially when it makes ideas possible that would otherwise be too expensive or time-consuming. Technology changes the jobs around us, but learning to direct it responsibly can expand what one person can make.Then it's on to listener questions: how charitable giving from a retirement account might work better through an IRA and qualified charitable distributions, whether dividends and bond interest should be reinvested, and why money generally belongs at work instead of waiting in cash.Finally, Don weighs a COLA-adjusted pension against a lump sum, considers a low-cost new 401(k) versus an IRA, gives a hard no to illiquid Why Refi promissory notes, and compares simple flexible retirement withdrawals with advisor-managed guardrails.03:40 — AI as a creative tool07:01 — Charitable giving, IRAs, and QCDs09:55 — Reinvesting dividends and bond interest11:37 — Pension or lump sum? Plus the next 401(k)14:52 — Why Refi and the danger of “magical” returns17:56 — Flexible withdrawals versus guardrailsQuestions? Comments? Click!

Chargebacks were built to protect consumers from stolen cards and crooked merchants. Now they're increasingly used when a subscription surprises someone, a restaurant disappoints, or buyer's remorse sets in. Don and Tom sort real fraud from “friendly fraud”—and explain why the first call should usually go to the merchant, not the bank.They also look at confusing statement names, recurring subscriptions, the cost merchants absorb when a dispute lands, and why credit cards generally provide stronger consumer protection than debit cards.Then it's listener-question time: a free-dinner annuity pitch promising 12% to 15%, whether to bunch charitable gifts, dialing a retirement portfolio from 60/40 to 50/50, and using RMD withdrawals to rebalance at Vanguard.0:38 — From 1929 bucket shops to today's prediction markets3:21 — Chargebacks, card fees and “friendly fraud”7:06 — Mystery merchant names and subscription confusion8:25 — Bad service, buyer's remorse and the fraud line11:10 — When a chargeback is legitimate13:28 — Why merchants lose most disputes16:59 — Listener questions begin17:30 — The free-dinner annuity pitch22:49 — Should you bunch charitable gifts?24:06 — 60/40 or 50/50 before Social Security?26:06 — RMD withdrawals and Vanguard rebalancingQuestions? Comments? Click!

VT, DFAW, and AVGE all promise global diversification—but they take different roads to get there. Don and Tom compare cost, holdings, factor tilts, and the extra risk behind higher expected returns, then explain why the “best” one-fund solution depends on how much risk you actually need.Then a listener asks why advisors build portfolios with many funds when one might do. The answer runs through tax-loss harvesting, rebalancing, personalization, and the fine line between thoughtful design and a 20-fund hodgepodge.Also: the hidden tradeoffs in fractional rental-property platforms such as Arrived, why IRMAA anxiety can outweigh the actual Medicare surcharge, and a sensible way to unwind concentrated tech gains without detonating the tax bill.00:30 Swing-era cold open01:53 Three global funds, one decision03:29 VT, DFAW, and AVGE compared05:45 Recent returns and expense ratios06:47 Factor tilts: value, size, and profitability08:59 Holdings, frontier markets, and micro-caps10:40 Matching the fund to the risk you need14:52 Listener question: one fund or many?17:50 Why advisors use multiple funds22:08 Fractional real estate and Arrived25:47 IRMAA anxiety versus the actual surcharge28:56 Unwinding concentrated tech gains32:15 Buc-ee's, crypto, and trademark comedyQuestions? Comments? Click!

From your 20s to your 60s, the priorities change—but the basic job doesn't. Don and Tom walk through emergency savings, Roth IRAs, 401(k) matches, rebalancing, retirement planning, Social Security, Medicare, and estate planning, decade by decade.Then Mary calls with a smart Roth-conversion puzzle. They weigh whose IRA to convert, how much to move without wasting a low tax bracket, the age-59½ penalty, and why a household's accounts should be managed as one portfolio—even when the spouses have very different tolerances for risk.Finally: whether retirees still need emergency cash, how much umbrella insurance is enough, when a family office begins to make sense, and three near-identical retirement portfolios from a listener in Wagner, South Dakota—whose hometown briefly steals the show.00:25 Tom's brassy choice01:36 Financial priorities, decade by decade02:58 Start early with a Roth IRA04:02 Your 30s: emergency cash and the 401(k) match06:02 Your 40s: fixed obligations and retirement planning09:13 Your 50s: risk, HSAs, and getting on track10:45 Your 60s: Social Security, Medicare, and estate planning14:48 Roth conversions and household asset allocation24:12 Emergency funds in retirement27:01 Umbrella coverage and family offices30:16 Three retirement portfolios from WagnerQuestions? Comments? Click!

Rule Four of Financial Physics says everything eventually rises—not every stock, not every year, but human productivity and global economic output over time. Don and Tom explain why buying the broad market is ownership in thousands of businesses, not a trip to the casino, and why international diversification matters when nobody knows which country will lead the next century.Then Kenneth asks whether a tiny slice of his emergency fund belongs in stocks. The answer is still no: emergencies tend to arrive when markets are already falling. The guys also look at using qualified charitable distributions from inherited IRAs and why smart tax planning should not let the tax tail wag the financial dog.Finally, they compare BND with TIPS and ultra-short bond funds, unpack the trade-off between price stability and durable yield, and explain why preferred stocks cannot replace the ballast in a 60/40 portfolio.00:44 AI music, a low-budget show, and big-money topics02:46 Financial Physics Rule Four: everything eventually rises04:05 Stocks are ownership, not a casino bet05:13 Macroeconomic gravity and two centuries of productivity07:45 From $48 to $90,000 of U.S. output per person08:22 Letting thousands of companies do the heavy lifting09:18 AI, global output, and a Social Security token tax11:03 Why the next century demands global diversification13:35 Should emergency-fund money ever go into stocks?19:56 Inherited IRAs and qualified charitable distributions21:40 BND versus TIPS and ultra-short bond funds26:59 Why preferred stocks are not bond substitutes29:13 Theme-song experiments and the Talking Real Money singersQuestions? Comments? Click!

Can 21 funds deliver useful global diversification—or mostly camouflage overlap, cost, and complexity? Don opens the Friday Q&A by giving one listener a sharper set of questions to take back to an advisor, including what each fund actually contributes and what would be lost by owning fewer.The questions then move from portfolio architecture to retirement reality. A listener learns why RMDs and Roth conversions should not wag the retirement dog, and another faces a sudden $15,000-a-month skilled-nursing bill that changes the investment plan for good reasons—not because of market timing.There's also a timely Roth-conversion opportunity for a young worker headed back to school, a warning about state charges on multi-year guaranteed annuities, and a sober return estimate for a balanced portfolio. Add one lovingly brutal critique of Competitive Don, and the listener mailbag is officially doing its job.00:39 Welcome to Friday Q&A02:50 Are 21 funds too many?05:40 Don't let RMDs wag the retirement dog09:13 Investing for a $15,000-a-month care bill12:44 A low-income-year Roth conversion15:30 Competitive Don gets reviewed18:04 State charges on multi-year guaranteed annuities19:05 What return should a 60/40 portfolio expect?Questions? Comments? Click!

Active fund managers have a new explanation for years of underperformance: index funds have made their old job harder. Don and Tom examine that award-winning excuse, revisit how indexing reshaped the business, and return to the stubborn arithmetic—when active management charges more, matching the market still means losing to it after fees.Listener questions widen the lens. A UK investor wants to move from 60/40 to 50/50 without taking needless currency risk, while a family needs a sensible plan for a $200,000 windfall, a near-term car purchase, Roth contributions, and the money left for a brokerage account.The show closes with a federal retiree's TSP allocation and a critique of an AI-built income portfolio stuffed with dividend funds. The throughline is simple: start with the job the money must do, favor total return over yield theater, and keep the plan easier to understand than the sales pitch.00:33 AI jingles on demand02:31 Active managers blame index funds08:34 A Social Security benefit wrinkle10:00 A UK investor moves from 60/40 to 50/5016:11 Planning a $200,000 windfall and car purchase20:20 A federal retiree's TSP choices22:59 AI builds a dividend-income portfolio28:24 The jingle experiment continuesQuestions? Comments? Click!

Listener questions take over the studio as Don and Tom work through a very big pile without sacrificing any more forests than necessary. The quick tour runs from life insurance in retirement to the seductive yield on floating-rate bank-loan ETFs—and why extra income usually comes with extra risk.Then a live call turns asset allocation into an actual retirement plan: how a couple can move from 90/10 to 70/30, use Roth space intelligently, and rebalance without guessing what the market will do next. The hosts also weigh simplifying banking at Fidelity or Schwab, the Social Security shortfall, and the limits of retiring at 53 on a $2.8 million 401(k).It's a brisk, practical Q&A about making portfolios safer, simpler, and realistic—plus expensive vacations, old television, and the strange persistence of paper.00:00 A special midweek Q&A03:29 Life insurance after retirement06:47 The risk behind high-yield bank-loan ETFs11:12 Bonds inside Roth accounts13:14 Moving a portfolio from 90/10 to 70/3022:54 Spending more after years of saving25:18 Consolidating banking at a brokerage26:53 How to repair Social Security31:10 Can $2.8 million fund retirement at 53?Questions? Comments? Click!

AI stocks are booming, valuations are stretched, and capital spending is surging. Does that add up to a bubble—or just another story investors cannot reliably time? Tom and Don walk through Fidelity's warning signs without pretending anyone can ring a bell at the top.The practical conclusion is less exciting and more useful: stay diversified, keep realistic expectations, include the fixed income your plan needs, and do not mistake a recent gain for money the market owes you forever.Then a caller pressure-tests the flexible 5% withdrawal idea, followed by questions on delaying Social Security after leaving work and why convertible bonds add complexity without much benefit for individual investors.00:00 Time compression and the AI boom02:42 Is artificial intelligence in a bubble?04:51 Earnings, cash flow, and valuation signals07:14 Capital spending and the rate-cycle argument08:56 Fidelity's verdict—and the diversified response11:13 The greed hidden inside market timing13:04 How flexible is a flexible 5% withdrawal?19:56 Delaying Social Security after stopping work23:44 Convertible bonds and a very expensive C-share fundQuestions? Comments? Click!

Markets fluctuate. That sounds obvious—until a favorite stock climbs for years and investors start treating gravity as optional. Tom and Don revisit Financial Physics and the essential difference between a temporary market decline and permanent single-company damage.The cure is not predicting the next dip. It is connecting the return you need with the volatility you can tolerate, then owning thousands of companies and rebalancing instead of reacting.Questions range from IRA eligibility for business owners to building a global portfolio in Singapore, choosing bonds near retirement, using a self-directed 401(k) window, and making a retirement plan before the calendar makes one for you.00:00 Money Monday and the law of financial fluctuation02:57 Why individual winners eventually stumble05:04 Temporary market declines versus permanent stock losses06:56 Return, volatility, and the tradeoff nobody escapes09:32 Diversification across roughly 10,700 companies12:16 IRA contributions for LLCs, partnerships, and corporations15:54 A listener's investing journey from Singapore18:08 Fixing a concentrated U.S. portfolio overseas21:17 Bonds as retirement approaches23:40 Self-directed 401(k) windows and overthinking24:31 Build a retirement life—not just a retirement dateQuestions? Comments? Click!

Bonds are supposed to be the brakes in a portfolio—but should those brakes be BND, a shorter-term fund, CDs, or a Treasury ladder? Don explains why duration, yield stability, and personal comfort make the answer more nuanced than one ticker.The Friday questions keep coming: pairing AVGE with VT, moving $5 million from real estate into a retirement portfolio, understanding an emerging-markets fund that became legally non-diversified, and building 529s for grandchildren.The final stretch is all planning: Roth conversions and IRMAA, choosing a HELOC over a 401(k) loan, and resisting the urge to let the tax tail wag the retirement dog.00:00 A full inbox of financial questions02:30 BND versus short bonds, CDs, and Treasury ladders06:45 AVGE plus VT—or unnecessary overlap?10:23 Moving $5 million from real estate into markets14:51 When an index fund becomes legally non-diversified18:18 Building 529s and Roth head starts for grandchildren22:16 Roth conversions, RMDs, and IRMAA25:23 HELOC or 401(k) loan for renovations?28:01 The tax tail and a long Roth-conversion planQuestions? Comments? Click!

AI can crunch a portfolio, harvest losses, and explain an investment concept in seconds. But can it stop a nervous investor from selling at exactly the wrong moment—or understand the life behind the spreadsheet?Tom and Don test the robot-advisor promise, even asking ChatGPT to weigh in. The verdict is a useful division of labor: let technology handle repeatable mechanics, while human judgment, fiduciary responsibility, and behavior coaching remain hard to automate.Then the questions get wonderfully strange: whether a 0.70% advisory fee earns its keep, how a concentrated tech fund hides risk behind a huge return, whether a $100 million Bitcoin Roth story adds up, and how to invest an inherited account.00:00 Are AI advisors coming for financial planners?03:06 ChatGPT offers its own cautious verdict04:14 Where automation helps—and where humans matter09:36 What investors should ask their advisory firms12:10 Is a 0.70% advisor fee earning its keep?16:50 The concentrated tech fund with a dazzling record21:12 A purported $100 million Bitcoin Roth25:22 Building an inherited-account portfolioQuestions? Comments? Click!

A quarter in the piggy bank has grown into a maze of UTMAs, 529s, custodial Roth IRAs, and the new child investment accounts. Tom and Don sort the options by what the money is actually for—and who keeps control.The 529 emerges as the flexible favorite, especially with its education uses and limited Roth rollover. Then the conversation turns to concentrated factor ETFs, the familiar Bitcoin argument, and whether private markets are really swallowing public investing.The through-line is refreshingly simple: match the account to the goal, favor broad diversification, and resist stories that make investing sound more complicated than it needs to be.00:00 Pshaw, Wordle, and the kid-money maze03:00 UTMAs and UGMAs: control has an expiration date05:34 Why 529 plans remain the flexible favorite09:01 Custodial Roth IRAs and an enormous head start11:15 New child accounts versus the 52916:02 MOAT and COWZ: clever ticker, concentrated portfolio20:48 Bitcoin, volatility, and the meaning of value26:51 Public markets versus the private-market storyQuestions? Comments? Click!

Chasing performance feels like the easiest way to make money—but buying what has already gone up often means arriving late and leaving with less.In this episode of Talking Real Money, Tom and Don examine the “behavior gap”: the difference between an investment's return and what investors actually earn after buying high, selling low, and chasing the latest market story. They explain why disciplined diversification and a sensible asset allocation usually beat a portfolio built around hot ideas.They also answer listener questions about retirement withdrawal order, Roth conversions, reinsurance funds, high investment costs, and whether financial recommendations are influenced by commissions.00:20 Why buying what's hot usually means arriving late01:42 Chasing performance without ever catching it03:03 How Bitcoin rose while Bitcoin ETF investors lost money04:58 The costly confusion between “has gone up” and “is going up”05:53 Morningstar's “Mind the Gap” research06:44 AI, chips, and the latest performance-chasing cycle07:37 Asset allocation versus a collection of hot ideas09:21 Why trying to beat the market often backfires10:16 Listener Question: Retirement accounts and withdrawal order12:29 Taxable, pre-tax, or Roth—which money should come first?15:35 Listener Question: Do reinsurance funds belong in a portfolio?16:58 Catastrophe risk, complexity, and nearly 2% in expenses21:33 Listener Question: Are fund recommendations influenced by compensation?23:27 Why “trust us” isn't a convincing financial argumentQuestions? Comments? Click!

The episode covers market bubbles, diversification, Social Security timing, and retirMarkets aren't mysterious—they're driven by one of the oldest economic principles there is.In this episode of Talking Real Money, Tom and Don explain why supply and demand can send prices soaring in the short run… and why disciplined investors should usually ignore the excitement.You'll also hear practical answers to listener questions about Social Security timing, investment clubs, umbrella insurance, and protecting retirement assets.00:12 Financial Fysics returns: Rule #2—Supply and Demand02:04 Tom returns from vacation03:32 Reviewing Rule #1 before diving into Rule #204:10 Why supply and demand mostly affects short-term prices05:25 The difference between investors and traders06:18 The dot-com bubble and today's AI enthusiasm08:35 Market efficiency, trading volume, and why surprises matter10:55 Every bubble eventually runs out of buyers12:35 Listener Question: Delaying Social Security versus investing the money17:55 Why Social Security decisions are always personal19:25 Listener Question: Are investment clubs worthwhile?23:48 Listener Question: IRA protection, lawsuits, and umbrella insurance30:05 What actually determines umbrella insurance costs31:42 AI accidentally creates an extremely “chunky” TomQuestions? Comments? Click!

This week Don tackles seven excellent listener questions covering everything from credit cards and emerging markets to covered-call ETFs, annuities, retirement buckets, and whether investors should worry about new additions to stock indexes.00:51 Summer surge in listener questions01:15 LitReading success and thanks02:01 Are credit cards really evil?05:09 Emerging markets inside international funds07:44 Paying kids for chores to fund Roth IRAs10:58 Covered-call ETFs (JEPI and others)15:47 Helping a friend avoid an expensive annuity19:40 Should index investors worry about SpaceX?21:38 Bucket strategy and retirement portfoliosQuestions? Comments? Click!

What exactly is a model portfolio—and should you trust one with your retirement?Tom and Don explain why professionally designed model portfolios can improve consistency and reduce advisor bias, but also why investors should be wary as firms like Morningstar begin adding private equity, private credit, and other alternative investments to traditional portfolios.00:12 What is a model portfolio?02:11 Why advisors should use investment models03:31 Morningstar's new private market portfolios05:20 Liquidity problems with private investments07:27 The high cost of private equity08:12 “Persistent inflation” claims examined10:49 Why Wall Street wants retirement assets12:23 Listener questions begin14:17 AUM vs flat-fee vs hourly advisors21:22 Do ETF expense ratios add together?23:21 Roth IRA income limits and backdoor strategy27:44 BrokerageLink inside a 401(k)31:00 Costco, avocado oil, and gas pricesQuestions? Comments? Click!

Can keeping up with financial news actually make you a better investor—or just make you more confident about making bad decisions? Don and Tom dig into research on how markets react to news, why investors tend to overreact to splashy stories and underreact to boring numbers, and whether sophisticated traders can actually exploit those inefficiencies. Then, a caller nearing retirement asks how to build a conservative brokerage account to bridge the years before Social Security. Plus, the guys compare Avantis global ETFs with Vanguard's Total World Stock ETF, debate the value of factor tilts, and marvel at how quickly investors can pile billions into the latest hot investment idea.00:05 Can financial news make you a better investor?00:52 The illusion of being ahead of the market01:44 Can investors profit from company news?02:42 Are markets really efficient?03:33 What 6.7 million Reuters articles reveal about news04:40 How much financial news is actually predictable?05:06 Why investing based on headlines is a fool's errand06:18 Bad news, numbers, and investor underreaction07:06 Why investors overreact to ambiguous, high-attention news08:10 Investment strategies that ordinary investors can't realistically use09:02 Be skeptical of your reaction to splashy news09:36 Big news isn't always new information10:31 The factor zoo and the cost of complicated investing11:04 Can expensive strategies overcome their fees?12:28 Why diversified investors can mostly ignore the news13:32 Soccer, summer football, and Orlando's forgotten team14:10 Listener call: Building a retirement bridge account15:00 Retirement plans, Social Security, and a future inheritance16:28 How soon will the retirement money be needed?17:10 Matching asset allocation to short-term spending needs18:04 Using bonds and cash for retirement stability19:28 Is it okay to hold bonds in a taxable brokerage account?20:43 A listener puts Don and Tom on his financial Mount Rushmore22:02 Halloween in Celebration and 1,000 pieces of candy22:46 Why did Avantis launch AVTM?23:58 AVTM versus Vanguard Total World Stock ETF24:06 Why Don and Tom prefer AVGE for a one-fund portfolio25:29 The astonishing rise of a semiconductor ETF26:45 Can VT plus AVGV replicate AVGE?27:06 Why a 20% value tilt may not be enough28:33 Factor investing, expenses, and expected returns29:30 Tom returns from Greece and is ready for callsQuestions? Comments? Click!

Having a child later in life can change far more than your sleep schedule. It can completely rewrite your retirement plan.Don and Tom explore the financial realities of becoming a parent in your late 40s or 50s, from college savings and life insurance to delayed retirement and the temptation to sacrifice your own financial future for your children. Tom brings some very personal experience to the conversation—and a few stories about being mistaken for his daughter's grandfather.Then, a listener asks about a simple three-fund retirement portfolio, international diversification, small-cap value, Roth asset location, and when an aggressive investor should finally consider adding bonds.Plus, why the best retirement portfolio may be the one that keeps you from doing something stupid during the next bear market.00:12 Old guys, act your age—and other financial lessons01:14 Disagree with Don and Tom? Send in your argument01:57 The financial reality of becoming a parent later in life03:17 Tom became a father at 5004:11 The dangers of grocery shopping with your daughter05:21 Are older parents actually better parents?06:10 How a late child can completely change retirement plans07:28 Why retirement should come before college savings08:48 A $36,000-a-year whole life insurance quote09:08 How long does a parent really need term life insurance?10:42 Fertility costs and the financial price of parenthood11:28 Your retirement must remain the financial priority12:50 Having a child at 50 may mean working until 6813:42 What are you actually going to do in retirement?15:19 Tom reflects on raising his youngest daughter16:02 Don and Tom need more listener questions17:17 Listener portfolio review: FZROX, FZILX, and AVUV18:49 Is 50% U.S., 30% international, and 20% small value reasonable?20:01 Should high-growth assets go in a Roth IRA?20:43 When should an aggressive investor start adding bonds?21:25 Bonds may keep you from doing something stupid22:53 Remembering investor panic after 9/1123:21 How to get a free Talking Real Money portfolio analysis25:16 Why Talking Real Money is differentQuestions? Comments? Click!

Money Monday has arrived, and Don kicks off a new weekly series based on his book Financial Fysics. The first “law” may surprise you: according to Don, every dollar ever earned comes from just three sources—luck, theft, or work. He and Tom debate where investing belongs, why entrepreneurship remains one of the best paths to wealth, and how much luck really contributes to financial success.Then they answer a listener's retirement planning question about whether to finance a Florida townhouse or withdraw money from a Roth IRA. Along the way they discuss Roth conversion strategy, Florida HOA reserve funds, special assessments, and why building a retirement plan should always come before deciding where the money comes from.00:00 Welcome to Money Monday00:12 A new weekly Financial Fysics series begins01:35 Why anonymous two-star book reviews are so frustrating02:40 Free Financial Fysics book giveaway03:50 Rule #1: There are only three ways to make money04:45 Luck—including investing, lotteries, and inheritance06:35 Theft, fraud, and unethical financial products07:55 Why successful investing combines work and luck10:30 How most great fortunes are actually built12:10 Entrepreneurship, risk, and creating wealth13:35 Understanding just how large a trillion dollars really is15:50 The biggest takeaway from Rule #117:15 Preview of next week's rule: Supply and Demand18:15 Why listener questions slow down during the summer19:15 Listener Question: Should a retiree finance a Florida townhouse or withdraw money from a Roth IRA?21:10 Florida HOA reserves and avoiding expensive surprises24:30 Why retirement planning comes before choosing an account26:00 Why the Roth IRA is probably the last account to tapQuestions? Comments? Click!

Tom's on vacation, but the listener questions are not. In this packed Q&A episode, Don tackles one of the most common retirement dilemmas: if your Social Security and annuity income already cover your expenses, do you still need a traditional emergency fund?From there, the questions keep coming. Don weighs in on what to do with “lazy money” earning only 3%, whether a MYGA is really a better deal than a CD ladder, how to structure a taxable brokerage account for long-term growth, and where to keep nearly $300,000 set aside for a home purchase in the next two to three years.He also takes on a thoughtful question about managing a taxable portfolio for elderly in-laws who need additional income for memory care, and wraps up with a step-by-step explanation of how inherited IRA money can potentially be used to fund backdoor Roth contributions.Along the way, you'll hear why “guaranteed” doesn't always mean what insurance companies want you to think it means, why simplicity often beats ETF overengineering, and why liquidity still matters—even in retirement.0:05 – Intro and why Tom is getting buried in listener questions while on vacation1:14 – Don thanks listeners and mentions Apple featuring Litreading1:58 – How to send recorded questions at TalkingRealMoney.com2:16 – Question 1: Do retired investors still need a six-month emergency fund if Social Security and annuities cover expenses?3:14 – Why Don still favors stable, liquid emergency money even in retirement4:30 – Question 2: What should retirees do with “lazy money” that's earning only about 3%?5:28 – Don's preference for CD ladders over MYGAs and why “guaranteed” doesn't mean risk-free7:33 – Question 3: How should a high-income investor build a long-term taxable portfolio at Vanguard?10:03 – Don's case for simplifying with AVGE or DFAW instead of mixing multiple ETFs11:24 – Question 4: Is a five-year MYGA better than a five-year CD ladder?12:01 – Why Don still leans toward CDs despite the higher MYGA yield and tax deferral pitch14:16 – Question 5: Best place to keep $291,000 earmarked for a home purchase in two to three years14:46 – Money market vs. high-yield savings vs. CDs vs. BND for short-term house money17:04 – Question 6: How to structure a $300,000 taxable portfolio for elderly in-laws who need extra monthly income for memory care18:37 – Why Don would keep lots of liquidity, use only a little equity, and skip muni bonds in a 22% bracket20:50 – Question 7: Can inherited IRA proceeds be used to fund a backdoor Roth for both spouses?22:40 – Don's step-by-step answer, including opening new IRAs and watching out for the pro-rata rule25:07 – Don plugs The Line Uncrossed and offers a free one-hour advisor meeting25:42 – Reminder to send questions and be patient while Tom is on vacationQuestions? Comments? Click!

In what may be our last quiz, ever, Tom turns the tables and puts Don in the hot seat with a Wall Street Journal high-school personal finance quiz—covering the Magnificent Seven, Roth IRAs, TIPS, efficient markets, yield curves, market risk, and dollar-cost averaging. Don does reasonably well, but not without protesting a dubious “debt avalanche” question and getting tangled up in a couple of accounting and risk terms. After the quiz-show nonsense, the guys tackle a listener question from Joseph in Pennsylvania: should your stock/bond allocation be based on a fixed percentage of your portfolio, or should it be driven by how many years of spending you want buffered in safer assets? Tom and Don explain why the answer depends on more than just income needs—it also depends on your emotional tolerance for volatility, your need for growth, and the role fixed income plays in helping you stay invested when markets get ugly.0:22 Tom becomes quizmaster and introduces the Wall Street Journal high-school personal finance quiz2:12 Question 1: Which stock is not part of the Magnificent Seven?3:47 Question 2: Which retirement account does not require withdrawals at a certain age?5:09 Question 3: TIPS, STRIPS, Series I bonds, and inflation-adjusted principal6:58 Question 4: Debt payoff strategies and the disputed “debt avalanche” answer9:13 Question 5: Efficient market hypothesis10:12 Question 6: What an inverted/downward-sloping yield curve says about future rates11:25 Question 7: Return on equity math and a heavily leveraged company12:56 Question 8: What it means when net present value equals zero14:44 Question 9: Why putting your emergency fund in stocks creates market risk16:52 Question 10: Unsystematic risk versus broad market risk18:57 Question 11: Dollar-cost averaging20:06 Tom and Don wrap up the quiz and revisit the “debt avalanche” controversy21:11 Listener question from Joseph in State College, Pennsylvania21:34 Should bond allocation be based on a fixed percentage or on years of spending?22:07 Risk tolerance vs. risk profile: why income needs are only part of the equation23:26 Why a 5-year spending buffer in safer assets can make sense in retirement24:13 The emotional role of bonds and fixed income during market declinesQuestions? Comments? Click!

Tom and Don tackle one of retirement's hardest questions: how much can you safely spend from your portfolio without blowing up the rest of your life? They walk through the familiar 4% rule, flexible withdrawal strategies, why a flat 10% withdrawal is usually fantasyland, and why the “right” spending rate depends heavily on your age, timeline, and tolerance for adjusting in bad markets. They also answer a listener question about a 22-year-old's investment allocation and close with a timely discussion of the latest Social Security trust fund warning, what it actually means, and the only real ways Congress can fix it.00:12 — How much can you safely spend in retirement? Tom and Don tee up the big question: 4% rule, 5% flexible rule, or something more personalized.02:08 — Survey shocker: many people think they need 30 years of income saved before retiring comfortably.03:03 — Longevity math: how long retirement might actually last, and why that matters for withdrawal rates.04:40 — Can you really withdraw 10% a year? Tom and Don push back on overly aggressive retirement spending assumptions.05:59 — Why generic withdrawal rules fall apart in real-life retirement planning.06:25 — Every retiree needs a personalized withdrawal strategy based on their own timeline and circumstances.07:17 — Retiring at 60 vs. 70: why earlier retirement makes even “safe” withdrawal rates riskier.09:04 — Why it's worth having a professional review your retirement withdrawal plan, even if you've used calculators.09:58 — The case for flexible withdrawals: spending more in strong markets and less in weak ones.10:20 — Three common retirement planning mistakes: not saving enough, not knowing your needed return, and taking the wrong amount of risk.12:16 — Listener question: a 22-year-old with $28,500 invested wants to know if his allocation makes sense.13:28 — Breaking down DFAW, VT, and VTI: overlap, diversification, and whether the portfolio is too complicated.16:21 — The bigger story: a 22-year-old already has a terrific head start on retirement savings.17:56 — Social Security update: the trust fund could run short in 2032 if nothing changes.18:37 — The only real ways to fix Social Security: raise taxes, cut benefits, or some combination of both.19:52 — Why scary Social Security headlines should not automatically push people to file early.21:22 — One possible fix: raising or removing the payroll tax cap.23:27 — The demographic problem under Social Security: too few workers supporting too many retirees.Questions? Comments? Click!

As parents age, money can get more complicated—bill paying, account access, healthcare decisions, investment management, and eventually the possibility that someone else may need to step in. In this episode, Don and Tom walk through how families can start that conversation before a crisis hits. They cover when to begin talking, what adult children should know about accounts and spending, why durable powers of attorney need to be checked with custodians in advance, and the importance of reviewing wills, beneficiaries, and backup decision-makers. They also talk about the emotional side of these transitions, including independence, trust, and the danger of children projecting their own investing preferences—or financial self-interest—onto aging parents.Then they answer two listener questions: one about whether it's time to fire an evasive advisor charging 1% plus expensive funds, and another about alternative career paths in financial planning beyond the traditional CFP route.0:05 – Intro: the hard conversation families need to have about aging and money1:00 – When parents—or you—reach the point where financial help may be needed1:56 – Tom's family experience and the challenge of stepping in gracefully3:17 – Why families should talk early about money, spending, and where accounts are held5:24 – Account access, passwords, and why digital organization matters more than ever7:38 – Durable power of attorney: why you need one and why custodians should review it in advance9:01 – Backups for everything: POAs, wills, beneficiaries, and successor decision-makers10:02 – Why adult children should meet their parents' financial advisor before a crisis11:07 – When a trusted advisor can help if parents don't want children directly involved11:28 – How to approach the conversation as an adult child without expecting instant control12:28 – Don't project your own investing style onto your parents' retirement portfolio13:28 – The uncomfortable reality of greed and inheritance influencing family decisions13:40 – Why this belongs at the top of the planning checklist for older families14:07 – How to send your own questions to Talking Real Money14:58 – Listener question: Is it time to fire a wealth manager who won't answer basic questions?17:15 – Don and Tom's verdict on an advisor charging 1% while dodging accountability18:48 – Listener question: Are there good financial-planning career paths besides becoming a CFP?20:41 – The regulatory reality of giving investment advice for a fee22:32 – Relationship roles, planning roles, and the growing specialization inside advisory firmsQuestions? Comments? Click!

Don and Tom take on the latest crypto hype cycle, arguing that Bitcoin remains speculation—not a reliable store of wealth—and that putting crypto inside retirement accounts is especially dangerous. They discuss a new self-directed IRA crypto platform, the risks of private equity and alternative assets in retirement plans, and why “get rich quickly” pitches should set off alarm bells.Then they answer two listener questions. First, Mark from Ohio asks how to prepare a retirement portfolio for a likely market downturn and how withdrawals and rebalancing should work once retirement begins. Later, Doug from Utah asks whether market-linked CDs make sense compared with Treasuries and whether the “no downside” promise is worth the tradeoffs. Don and Tom explain why they dislike market-linked CDs, how bank brokers get paid to sell them, and why simpler fixed-income tools often make more sense.They wrap up with a warning about growing bank-related scam tactics and a publishing scam Don has been seeing aimed at authors.0:05 – Intro: one-star Bitcoin review and why crypto losses are hard to ignore1:16 – Bitcoin's drop, crypto volatility, and retirement-account crypto pitches2:42 – Self-directed IRAs, IRA Financial, and the “get rich quick” problem5:27 – Why crypto, private equity, and alternative assets can be dangerous in retirement plans6:58 – Why most people bought Bitcoin: speculation, not currency utility10:29 – Hot money shifts: crypto, gold, semiconductors, and chasing momentum12:20 – Don's bottom line on crypto as speculation vs. wealth storage13:16 – Listener question from Mark: preparing for a market downturn before retirement15:32 – Is an 80/20-ish portfolio too aggressive with retirement four years away?17:13 – Bonds vs. cash/CDs: what fixed income should do near retirement18:56 – Withdrawal strategy during a downturn and how rebalancing fits in20:46 – Listener question from Doug: market-linked CDs vs. Treasuries23:47 – Why Don and Tom dislike market-linked CDs26:42 – The danger of taking investment advice from a bank salesperson29:18 – Building Treasury and CD ladders through a brokerage instead31:23 – Banks training tellers to spot scam victims before money is lost34:04 – Don's author scam warning: fake book clubs and fake promotional offersQuestions? Comments? Click!

Don and Tom take apart a clickbait Kiplinger piece touting the “five top buy-and-hold investments to manage market volatility,” arguing that the list is a random grab-bag of recent winners rather than a coherent portfolio. They explain why the suggested mix—VOO, VXUS, a healthcare sector ETF, Apple stock, and gold—does little to reduce volatility and instead layers on concentration risk, sector bets, and performance chasing. From there, they broaden the discussion into a more useful question: where should investors actually go for trustworthy information, how should listeners think about evaluating a financial advisor, and what really matters when judging portfolio design. The back half of the episode features a thoughtful call about investing a spendthrift trust for two sons over a 12-year horizon, plus a warning that advisor performance can't be measured by returns alone without understanding risk, asset allocation, and the planning services being delivered.0:05 Cold open, podcast intros, and Tom's ever-growing aircraft museum1:40 Don tees up a Kiplinger clickbait article on the “five top buy-and-hold investments” for market volatility2:14 Why the article's opening about political uncertainty and inflation could apply to almost any year3:36 The one part they agree with: long-term wealth is built by disciplined exposure to quality assets, not reacting to headlines4:53 The rise of numbered clickbait headlines and whether numbers in titles actually matter5:53 Why “stability” and “stock picks” don't belong in the same sentence6:27 Kiplinger pick #1: VOO — fine as a broad U.S. stock fund, but hardly a volatility solution7:06 Kiplinger pick #2: VXUS — the one recommendation they think mostly holds up8:21 Kiplinger pick #3: XLV healthcare ETF — a sector bet masquerading as a defensive holding9:33 Why a healthcare sector fund lags a total-world approach while adding unnecessary concentration10:28 Kiplinger pick #4: Apple stock — and why adding a single stock you already own inside the S&P 500 makes little sense10:59 The problem with betting on one company instead of owning the economy through broad diversification12:20 Kiplinger pick #5: gold — and why recent gains don't make it a volatility manager12:48 Gold's long-term history, lack of fundamentals, and why its recent performance actually illustrates volatility rather than reducing it14:12 The bigger issue: how do you decide which financial publications or sources are worth trusting?15:26 Why Vanguard and Dimensional research tend to be more reliable than headline-driven finance content16:35 The real reason people click these articles: fear, underperformance anxiety, and the urge to “improve” a portfolio17:23 Why the Kiplinger portfolio is missing the one thing you'd expect in a true volatility-management portfolio: bonds18:51 Don and Tom's plea to listeners: follow evidence-based advice rather than clickbait lists19:30 Listener call from Brian in Bremerton about investing spendthrift trusts for his sons over a 12-year horizon20:55 The challenge: balancing growth with the possibility of distributions for education, cars, weddings, or a house23:08 Don's suggested framework: keep a cash/fixed-income reserve for near-term needs and invest the rest aggressively for growth24:48 Why a target-date fund may not be the best fit for this kind of trust structure25:37 A practical allocation idea: roughly 80/20 with a global equity fund plus a broad bond fund26:51 Brian explains that Roth IRA funding is already part of the family's gifting and estate strategy27:32 A listener from Seoul praises the show and begs them not to turn into a “humblebrag retirement call-in show”29:49 Listener question: how do you measure whether your financial advisor is performing well?30:42 Why advisor performance should not be judged by returns alone32:11 The importance of understanding what services you're actually paying for: planning, rebalancing, tax guidance, income strategy, and more33:11 What to examine in a portfolio besides returns: risk level, asset allocation, and whether key asset classes are missing34:11 Why even benchmark comparisons can be misleading if the portfolio isn't properly diversified35:18 The better question: is your advisor delivering the services and portfolio design you actually need?Questions? Comments? Click!

Can Tom beat the average American on a personal finance quiz?Don puts Tom in the hot seat with eight questions drawn from a financial literacy quiz developed by researchers at Stanford University and TIAA. The topics range from earning, budgeting, inflation, investing, debt, insurance, and risk to evaluating investment advice. Along the way, there's plenty of good-natured ribbing, a debate over compounding, and a reminder that even financial professionals can stumble on carefully worded questions.Later, the guys answer listener questions about whether the small-cap value premium still exists despite the rise of private equity, and whether exotic portfolios like the “Golden Butterfly” really deserve their impressive back-tested reputations.Plus, Tom gives an enthusiastic endorsement of Don's Civil War novel, The Line Uncrossed.00:18 – Tom faces an eight-question financial literacy quiz03:49 – Inflation versus savings: the trickiest question05:53 – Why diversification beats owning a single stock07:11 – The power—and danger—of compound interest08:50 – Insurance coverage young adults actually need09:52 – Expected value and lottery math11:10 – Appropriate investments for different ages12:40 – Why compounding may be the most important concept in investing13:39 – Which asset classes have historically produced the highest returns?16:03 – Does the small-cap value premium still exist?23:01 – Should investors trust the Golden Butterfly portfolio?26:45 – Tom's review of The Line Uncrossed29:17 – Free meetings with Appella advisors31:11 – Blue shirts, blue eyes, and wrapping upQuestions? Comments? Click!

Don and Tom tackle the blurry line between free speech and market manipulation after the conviction of prominent short seller Andrew Left. They debate whether financial influencers should be allowed to profit from public stock recommendations, discuss why members of Congress continue trading individual stocks despite widespread public opposition, and explain why ordinary investors should avoid trying to outsmart people with superior information or influence.The conversation then shifts into listener questions covering Roth employer matches, Roth IRA withdrawal rules, Roth conversion strategies for retirees, and whether paying taxes now simply to benefit heirs makes financial sense. Along the way, there's plenty of lighthearted banter about soccer, politics, podcast reviews, and Don's growing passion for his Litreading short story podcast.00:05 – Introduction and Independence Day reflections01:27 – Andrew Left convicted of stock market manipulation03:24 – Is market manipulation protected free speech?06:56 – Why Don opposes congressional stock trading09:18 – Congress made over 13,000 stock trades in 202512:29 – Why public officials should be held to a higher standard14:12 – The lesson for ordinary investors: you can't beat insiders15:27 – Podcast reviews, politics, and avoiding crypto17:12 – Florida's proposed property tax amendment18:22 – Transition to listener questions19:38 – Employer Roth 401(k) matching contributions20:10 – Can you withdraw Roth IRA money before age 59½?21:49 – Should retirees convert large IRAs to Roth accounts?24:52 – Soccer, World Cup talk, and the “laws” of the game26:44 – Don promotes Litreading and Short StoryversesQuestions? Comments? Click!

Are you keeping too much money in cash because you're waiting for the “right time” to invest? In this episode, Tom and Don explain why market timing has historically been one of the costliest investing mistakes—and why even the worstinvestment timing has dramatically outperformed sitting on the sidelines.They also answer listener questions about immediate annuities, I Bonds, portfolio allocation, sequence-of-returns risk, and why using whole life insurance as an investing strategy is a bad idea.00:05 – Why so much money is sitting in cash03:21 – Americans hold over $20 trillion in cash-like accounts05:08 – The enormous cost of waiting to invest07:27 – Morningstar's “Mind the Gap” study and investor behavior10:41 – Cash is trash (except when it isn't)11:41 – How to earn more on your bank savings15:55 – Should immediate annuities count as bonds in your portfolio?17:23 – I Bonds vs. TIPS and inflation protection19:50 – Is 20% cash too much in retirement?20:43 – Whole life insurance for sequence-of-returns risk?22:28 – Why the advisor's recommendation raises red flags23:39 – The real way to manage sequence risk in retirementQuestions? Comments? Click!

This week's Friday Q&A is packed with six listener questions covering some of the biggest financial decisions people face before and during retirement. Topics include whether actively managed bond funds are worth the extra cost, how the new senior tax deduction may affect Roth conversions, whether a 24-year-old should keep a whole life insurance policy, financial planning before marriage, the role of mid-cap funds, and whether it's worth abandoning a target-date fund before retirement. If you've ever wondered whether you're making your portfolio more complicated than it needs to be, this episode is for you.00:00 Welcome and Fourth of July schedule update02:21 Active vs. passive bond funds: Avantis, Dimensional, or BND?05:00 Using the new senior deduction to reduce Roth conversion taxes08:01 Does a 24-year-old need whole life insurance?10:35 Money conversations every engaged couple should have15:53 Are mid-cap funds worth owning?17:52 Should you leave a target-date fund before retirement?23:37 How to submit your own questionsQuestions? Comments? Click!

Why do so many retirees struggle to spend money they've spent decades saving? Don and Tom explore the psychology behind retirement spending, including the fear of running out of money, the reluctance to touch principal, and how guaranteed income sources like Social Security, pensions, and even simple immediate annuities can make retirees more comfortable enjoying their wealth. They discuss practical strategies for creating spending confidence, the importance of comprehensive retirement planning, and why delaying meaningful experiences can be riskier than spending. The episode also answers a listener question about setting up a Roth IRA for a teenager and examines the latest uncertainty surrounding 529-to-Roth transfers.0:05 Introduction: Why retirees struggle to spend money they can afford to spend1:36 Fear of running out versus fear of missing out in retirement2:52 Why even millionaires worry about spending their savings3:51 The saver mentality and the challenge of switching to spending mode4:47 Research shows many retirees barely touch their nest eggs5:29 YOLO, aging, and the reality of declining mobility later in life6:02 Why retirees prefer spending Social Security, dividends, and interest over principal8:04 Travel, aging, and the danger of postponing experiences8:49 Creating confidence through retirement planning9:56 Using Social Security and RMDs to cover essential expenses10:12 Flexible withdrawal strategies for retirement spending11:39 Could a simple immediate annuity help retirees spend more confidently?12:42 Healthcare costs, aging, and changing spending patterns13:30 Recency bias and how it distorts retirement decisions14:48 Why lifelong savers have trouble becoming spenders16:27 Summer slowdown and a request for more listener questions17:58 Listener question: Setting up a Roth IRA for a 19-year-old daughter19:16 Evaluating Avantis ETFs and M1 Finance for a young investor19:48 Why a single-fund solution may be better for small accounts20:56 The importance of emerging markets exposure22:40 Understanding 529-to-Roth IRA transfer rules24:33 The unanswered question of beneficiary changes and the 15-year ruleQuestions? Comments? Click!

Tom welcomes legendary investor educator and longtime friend Paul Merriman for a wide-ranging conversation about the evolution of indexing, the proposed changes to the S&P 500, and why investors should understand both the strengths and limitations of traditional index funds. Paul explains why firms like Dimensional Fund Advisors and Avantis Investors use a more flexible, evidence-based approach than traditional indexing and discusses how academic research has reshaped portfolio construction over the past several decades.The discussion also explores lessons from market history, including the importance of understanding major bear markets, determining appropriate risk levels, and building portfolios that align with personal goals rather than chasing maximum returns. Paul shares insights from the latest Dimensional Matrix Book and explains why he believes studying 100 years of market data helps investors stay disciplined during inevitable downturns.Finally, Paul introduces a simple but powerful strategy for helping newborns and young children build substantial retirement wealth through small annual investments that can compound over many decades.Timestamps0:11 Special guest Paul Merriman joins Talking Real Money0:55 Long friendship and investing partnership between Tom and Paul1:20 S&P 500 rule changes and earlier inclusion of major IPOs like SpaceX2:07 Historical examples of S&P 500 additions and omissions2:35 Microsoft's delayed entry into the S&P 5002:56 NVIDIA replacing Enron in 20013:29 How index rule changes can affect future returns and volatility4:08 Why indexing remains the preferred strategy for most investors5:16 Traditional versus non-traditional index funds6:37 How Avantis and Dimensional incorporate factors beyond company size8:05 Why factor-based investing differs from traditional indexing9:02 Problems with rigid index reconstitution schedules10:16 Momentum, flexibility, and portfolio management advantages11:22 Introduction to Dimensional's annual Matrix Book11:53 Using market history rather than forecasts to guide investing decisions13:09 Lessons from past bubbles, crashes, and lost decades14:20 Why Paul trusts academic research more than Wall Street forecasts15:14 The case for small-cap value investing15:49 Clarifying Paul's allocation to small companies16:53 Investing for heirs, charities, and future generations18:10 Remembering investor panic during the 2008 financial crisis19:18 Determining an appropriate risk level for retirement portfolios20:43 Different investor goals: beating the market, maximizing returns, or minimizing risk21:28 Peace of mind versus maximum growth21:55 Helping young people build retirement wealth early22:54 The $365-per-year retirement funding concept24:09 Final thoughts and appreciation between Tom and PaulQuestions? Comments? Click!