Podcasts about morningstar canada

In this episode, we are joined by Dr. Paul Kaplan, economist, CFA charterholder, former Director of Research at Morningstar Canada, and co-author of Lifetime Financial Advice, for a fascinating exploration of life cycle finance. Drawing on decades of research in economics, portfolio construction, and asset allocation, Paul explains how financial planning should be grounded in optimizing lifetime consumption rather than relying on disconnected rules of thumb.   We explore how life cycle finance integrates consumption, saving, investing, and retirement spending into a single framework, why risk tolerance and risk capacity are fundamentally different concepts, and how human capital should be treated as part of an investor's balance sheet. Paul also walks through the life cycle model he and Tom Idzorek developed, explains why traditional retirement rules like the 4% rule lack theoretical foundations, and demonstrates an open-source spreadsheet that allows anyone to experiment with the model for themselves. This conversation brings together economics, portfolio theory, and financial planning into a practical framework for making better lifetime financial decisions.   Key Points From This Episode: (0:04) Introduction to Dr. Paul Kaplan and the topic of life cycle finance. (4:38) What life cycle finance is and why consumption smoothing is its central objective. (5:20) How life cycle models optimize saving, investing, retirement spending, insurance, and annuities. (6:36) Linking life cycle finance with Harry Markowitz's mean-variance optimization. (8:38) Why consumption—not wealth accumulation—is the true focus of financial planning. (9:56) The concept of an economic balance sheet: financial assets, human capital, liabilities, and net worth. (10:59) Holistic investor profiling beyond traditional risk tolerance questionnaires. (13:23) Why risk tolerance and risk capacity should never be combined into a single score. (16:48) Assessing the risk characteristics of human capital. (17:36) Applying utility theory behind the scenes in financial planning software. (19:15) Sample profiling questions that measure lifetime consumption preferences. (20:54) Why maximizing lifetime utility ultimately means optimizing consumption. (22:55) How preferences, needs, and circumstances shape lifetime financial plans. (24:13) The primary outputs of a life cycle model: consumption and asset allocation. (25:01) The roles of life insurance and annuities in lifetime financial planning. (27:44) How uncertain investment returns influence both spending and asset allocation. (28:19) Why longevity assumptions are critical in retirement planning. (29:37) Simplifying complex life cycle optimization into practical formulas. (30:27) Why life cycle finance challenges rules of thumb like the 4% withdrawal rule. (31:12) Flexible retirement spending versus fixed withdrawal strategies. (34:01) Why consumption should be treated as an output rather than an input. (36:05) The importance of asset location and after-tax portfolio construction. (37:04) Why asset allocation and asset location should be solved simultaneously. (38:19) Harry Markowitz on why asset allocation became the foundation of modern investing. (40:06) The need for financial planning software built on life cycle theory. (41:55) A walkthrough of Paul's open-source life cycle finance spreadsheet. (46:58) Understanding economic balance sheets and asset mix visualizations. (49:17) Which investor characteristics have the greatest influence on optimal asset allocation. (50:52) Why Nobel Prize-winning life cycle finance research has yet to become mainstream practice. (51:37) The evolving role of financial advisors in helping clients make rational financial decisions. (52:50) How Paul's own investment philosophy emphasizes indexing and asset allocation. (54:13) Factor investing, popularity theory, and connecting behavioral finance with asset pricing. (56:42) Paul's definition of success: applying first principles with rigor and integrity throughout his career. Links From Today's Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Dr. Paul Kaplan: https://www.paulkaplan.com/  Lifetime Financial Advice (CFA Institute Research Foundation): Lifetime Financial Advice| Research Foundation  Life Cycle Finance Spreadsheet (Paul Kaplan's website): https://www.paulkaplan.com/lifetime-financial-advice  *Disclosure: Links to third-party materials are provided for your convenience and do not constitute an endorsement or recommendation of the products or services offered therein. Frontiers of Modern Asset Allocation (Wiley): https://www.wiley.com/en-us/Frontiers+of+Modern+Asset+Allocation-p-9781118029689  Popularity: A Bridge Between Classical and Behavioral Finance (CFA Institute Research Foundation): https://rpc.cfainstitute.org/research/foundation/2021/popularity-a-bridge-between-classical-and-behavioral-finance   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)  

Our guests this week are Tom Idzorek and Paul Kaplan. This is Tom's second appearance as a guest and Paul's first. Tom is chief investment officer of retirement for Morningstar Investment Management. He also serves as a member of Morningstar's 401(k) Committee, Public Policy Council, Global Investment Committee, US Investment Policy Committee, and the Editorial Board of Morningstar Magazine. Before retiring in 2023, Paul was director of research for Morningstar Canada and a senior member of Morningstar's Global Research Team. He led the development of many of the quantitative methodologies behind Morningstar's fund analysis, indexes, advisor tools, and other services. Tom and Paul are accomplished researchers and authors, having individually published or collaborated on numerous academic papers, accepted to prestigious peer-reviewed journals, and their work has received numerous awards through the years. In today's interview, we're focusing on one of their recent collaborations, their new book, Lifetime Financial Advice: A Personalized Optimal Multilevel Approach.BackgroundTom Idzorek Bio“Tom Idzorek: Exploring the Role of Human and Financial Capital in Retirement Planning,” The Long View podcast, Morningstar.com, June 7, 2022.Paul Kaplan BioLifetime Financial Advice: A Personalized Optimal Multilevel Approach, by Tom Idzorek and Paul KaplanLifetime Financial Advice“Joining Lifecycle Models With Mean-Variance Optimization,” by Tom Idzorek and Paul Kaplan, papers.ssrn.com, Oct. 19, 2023.Lifetime Financial Advice Book Club Series“Personalized Multiple Account Portfolio Optimization,” by Tom Idzorek, Financial Analysts Journal, June 29, 2023.“The Popularity Asset Pricing Model,” by Tom Idzorek, Paul Kaplan, and Roger Ibbotson, papers.ssrn.com, Oct. 26, 2021.“Popularity: A Bridge Between Classical and Behavioral Finance,” by Roger Ibbotson, Tom Idzorek, Paul Kaplan, and James Xiong, Research Foundation, Dec. 10, 2018.“ESG Investing and the Popularity Asset Pricing Model (PAPM),” by Tom Idzorek, blogs.cfainstitute.org, Feb. 1, 2024.OtherMilton FriedmanFranco ModiglianiPaul SamuelsonRobert MertonRichard ThalerDaniel KahnemanRoger IbbotsonJames Xiong“Modern Portfolio Theory: What MPT Is and How Investors Use It,” by the Investopedia team, Investopedia.com, Aug. 29, 2023.

Today on the show, we are joined by special guest Danielle LeClair. Danielle is the Director of Manager Research at Morningstar Canada. Morningstar has been providing ratings to help investors find top-performing ETFs and Mutual Funds since 1985. Danielle deep dives into Morningstar's methods and processes when it comes to determining star and medalist ratings. She also explains the importance of having a Canadian research team on the ground. Danielle explains how Canada is a different market with different nuances. She says the team can adapt global methodologies to suit Canadian market's nuances, such as regulatory differences and currency considerations. Danielle also explains how Morningstar determines qualitative ratings. She says it's based on three pillars – people, process and parent.  Price is also factored into the rating and is evaluated relative to similar funds, as well as passive index funds because they are a competitor to active management. With medalist ratings, Danielle says the team analyze both quantitative and qualitative aspects of a fund and compares relative to peers. Recorded on May 7, 2024. At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information. For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics' Advisor Digital Experience Study.

Join us for an insightful exploration into sustainable investing with our special guest, Danielle LeClair from Morningstar Canada. As the Director of Manager Research, Danielle brings invaluable expertise to our discussion, delving into the latest trends and challenges in the sustainable funds market. Together, we'll tackle burning questions about selecting the right sustainable fund and assessing its potential returns, offering essential guidance for aligning values with investment choices.Don't forget to hit that SUBSCRIBE button! ----------------------------------------------GUEST LINKS & RESOURCES: https://www.morningstar.com/en-ca/lp/sustainable-investing-landscapeLEARN MORE ABOUT BMO ETFS (SPONSOR): https://www.bmo.com/main/personal/investments/etf/------------------------------------------------Saijal Patel, CFA, is a former CNBC and BNN journalist and passionate financial wellness advoacate. She's bringing Strictly Money directly to you via YouTube, Apple Podcasts, Spotify and whereever you get your podcasts. Connect on LinkedIn: https://www.linkedin.com/company/saij-elle/Follow on X: https://twitter.com/strictlymoneytvGet in touch: https://saijelle.com/contact-us/Join Saij Elle's FREE Money Masterclass for Women: https://courses.saijelle.com/master-class/Join Saij Elle's FREE Money Masterclass for Women: https://courses.saijelle.com/master-class/

Terry Hawkins, sales manager at Morningstar Investment Management and Paul Kaplan, research director for Morningstar Canada, discuss dollar-cost averaging, or the practice of investing slowly over time instead of in one lump sum. Research by Kaplan and others show that dollar-cost averaging might be expected to underperform a lump-sum approach. But what if it's what gets an investor into the markets?

While we're off for spring break, we're reprising this episode featuring Terry Hawkins, sales manager at Morningstar Investment Management and Paul Kaplan, research director for Morningstar Canada. They discuss dollar-cost averaging, or the practice of investing slowly over time instead of in one lump sum. Research by Kaplan and others show that dollar-cost averaging might be expected to underperform a lump-sum approach. But what if it's what gets an investor into the markets?

Terry Hawkins, sales manager at Morningstar Investment Management and Paul Kaplan, research director for Morningstar Canada, discuss dollar-cost averaging, or the practice of investing slowly over time instead of in one lump sum. Research by Kaplan and others show that dollar-cost averaging might be expected to underperform a lump-sum approach. But what if it's what gets an investor into the markets?

Dan speaks to researcher Christopher Davis of Morningstar Canada about the idea of “active share” and whether it has delivered on its promise. Then he considers whether it’s OK to pay more for mutual funds that have performed well in the past. Finally, he offers advice for those worried about investing a lump sum when markets are at all-time highs. For complete show notes, visit canadiancouchpotato.com/podcast.

Welcome to the podcast from Morningstar Canada, the leading provider of investment news, views and analysis. This week we talk about the many ways in which index providers and the ETFs that track them have tried to improve on the performance of traditional indexing. These strategies are often called smart beta, while here at Morningstar we prefer the term Strategic beta. Our first guest, Christopher Doll, Vice President of ETF Sales and Strategy at Invesco Canada, talks with us about the pros and cons of that approach. How crowded the field is, is a topic that often comes up when experts talk about the Canadian ETF market. Yet the number of ETF providers keeps growing, and we see new products launched almost on a daily basis. So how do fund companies decide what new products to launch? Up next, we talk with Ahmed Farooq, Vice President of ETF Business Development at Franklin Templeton Investments to shed some light on this topic. www.morningstar.ca Watch us on YouTube: https://www.youtube.com/user/MorningstarCDN

Salman Ahmed is a portfolio manager with Steadyhand. He's previously worked as an analyst with Mercer, and later as Associate Director of Active Research at Morningstar Canada. We talk about what Morningstar Ratings are, stewardship of investment funds, and also get into some personal details such as his year and a half trekking expedition around the world and his love of hamburgers.

Head of Morningstar Canada's research team, Dr Paul Kaplan, is in South Africa to address an investment conference. Alec Hogg of Biznews used the opportunity to chat about the best way to structure a global investment portfolio - and discovered that when it comes to the right time horizon for owning shares, Kaplan is even more conservative than Berkshire chairman Warren Buffett.

Head of Morningstar Canada's research team, Dr Pa…

On today’s show Vikram Barhat, a finance writer whose work has appeared in The Globe & Mail, BBC, and Morningstar Canada, answers a common question: If I save up $1,000, should I use it to pay off debt, or should I contribute it to my RRSP? It’s a difficult question.  Paying down debt saves future interest, but contributing to an RRSP generates a significant tax saving for many people.  Vikram provides his thought process for helping make that decision.   In  the Let’s Get Started segment gives his thoughts (and not surprisingly he is not a big fan of debt).