Podcast appearances and mentions of Robert C Merton

In this EDU episode Jim and Chris review and discuss an article sent in by a listener after their critique of the safe withdrawal rate approach to retirement. Some of the points made in the article should sound familiar to listeners… Nobel laureates William F. Sharpe and Robert C. Merton argue that traditional retirement withdrawal […] The post A Smart Approach to Retirement: EDU #2507 appeared first on The Retirement and IRA Show.

In today's episode, Cameron sits down with Mark McGrath to talk about his trip to Trondheim, Norway, the event he attended there, and his presentation in which he shared top lessons from prestigious Rational Reminder Podcast guests. Tuning in, you'll hear Cameron's top takeaways from conversations with Nobel laureate Eugene Fama and his collaborator Kenneth French, as well as Robert Merton, Antti Ilmanen, Professor Ludovic Phalippou, and more. We also delve into the changing industry trends regarding index investing and the many benefits that come with embracing it, including how it helps financial advisors better serve their clients. Stay tuned for our after-show section, where we discuss advice for new advisors, from developing a robust investment philosophy to building a network, along with insights to help consumers navigate the industry and much more. To learn all about Cameron's trip to Norway, top guest takeaways, and industry trends around index investing, be sure to tune in!   Key Points From This Episode:   (0:01:13) An overview of today's episode and a discussion on industry trends. (0:03:56) Our conversation with Håkon Kavli on managing Reitan Kapital. (0:04:38) What it was like for Cameron to meet Håkon Kavli and Magnus Reitan in Norway. (0:05:42) The excellent event in Trondheim, Norway, and their impressive lineup of speakers. (0:08:56) Unpacking industry trends in index investing and why more people are embracing it. (0:09:42) The light bulb moment for Mark and Cameron regarding index investing. (0:19:07) Highlights from our interviews with Eugene Fama, Ken French, and Robert Merton. (0:25:28) Dr. Annamaria Lusardi's insights and takeaways from our John Cochrane interview. (0:29:05) Top lessons from our conversation with Antti Ilmanen on low-expected returns. (0:30:58) Insights from talking with Professor Ludovic Phalippou about private equity. (0:32:22) Closing thoughts on Cameron's presentation in Norway and index investing trends. (0:39:44) Our aftershow segment: advice for new advisors, ways the industry has changed, tips for consumers, technology insights, personal updates, and more.   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 Website — https://rationalreminder.ca/  Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP Episode 321: Evidence in Practice with Håkon Kavli – https://rationalreminder.ca/podcast/321 Professor Marcos López de Prado — https://www.orie.cornell.edu/faculty-directory/marcos-lopez-de-prado Erik Hilde — https://www.linkedin.com/in/erik-hilde-9570a785/?originalSubdomain=no Dan Bortolotti — https://www.canadianmoneysaver.ca/authors/dan-bortolotti Canadian Couch Potato Blog — https://canadiancouchpotato.com/ Canadian Couch Potato Podcast — https://canadiancouchpotato.com/podcast/ Justin Bender — https://www.linkedin.com/in/justin-bender-cfa-cfp%C2%AE-tep-195b8b27/?originalSubdomain=ca Episode 200: Prof. Eugene Fama — https://rationalreminder.ca/podcast/200 Tune Out the Noise — https://www.dimensional.com/film Episode 100: Prof. Kenneth French — https://rationalreminder.ca/podcast/100 Episode 234: Prof. Robert C. Merton — https://rationalreminder.ca/podcast/234 Episode 232: Dr. Annamaria Lusardi — https://rationalreminder.ca/podcast/232 Episode 169: Prof. John Cochrane — https://rationalreminder.ca/podcast/169 Episode 202: Antti Ilmanen – https://rationalreminder.ca/podcast/202 Episode 210: Prof. Ludovic Phalippou — https://rationalreminder.ca/podcast/210 Fama and French Three Factor Model — https://www.investopedia.com/terms/f/famaandfrenchthreefactormodel.asp Books From Today's Episode: Investing Amid Low Expected Returns — http://www.aqr.com/serenity The Empowered Investor — https://www.amazon.ca/Empowered-Investor-Canadian-Investment-Experience/dp/0991978307  

Designing a robust portfolio requires considerable expertise, data, and experience. And while there are plenty of published articles that can guide how you build your portfolio, they are not investment solutions by themselves. Wei Dai is the Head of Investment Research and Vice President at Dimensional Fund Advisors, and she joins us today for a comprehensive and informative conversation on portfolio design for higher returns. Her background includes a Doctor of Philosophy degree in Statistics, Operations research, and Financial Engineering from Princeton. She has also earned a bachelor's degree in mathematics and applied mathematics from Zhejiang University. Her work has been published in multiple journals, including The Financial Analysts Journal. She has also collaborated on articles with esteemed figures such as Professor Robert C. Merton and Robert Novy-Marx. In our conversation with Wei, we explore the contents of these articles, key findings from research conducted by Dimensional Fund Advisors, and how they are implementing this knowledge in their portfolios. We discuss the fundamental aspects of portfolio design, like expected return, risk, and costs, with Wei providing a detailed breakdown of each subject. There's a lot to be learned from today's conversation, and while things get pretty technical, you are in very capable hands! Tune in for a fascinating dive into the latest research on portfolio design and much more.   Key Points From This Episode:   (0:03:37) The main risk premiums that Dimensional Fund Advisors target in their portfolios. (0:05:42) How long-term drivers of returns vary across different regions: an overview of the tests and outcomes they've seen at Dimensional Fund Advisors. (0:07:15) Unpacking whether the value premium differs from the profitability premium across regions; why it makes sense to be globally diversified. (0:08:57) Typical approaches to a multi-premium strategy in a portfolio: a rundown of the three approaches they take at Dimensional and the trade-offs between each. (0:13:44) How they evaluate portfolios at Dimenstional: the benefits of taking a holistic, integrated approach, and instances where that doesn't make sense. (0:17:24) Weighting schemes: Dimensional's approach to assigning individual security weights to achieve the desired level of exposure and how investments factor into weights. (0:26:46) Advice on how investors should decide whether to currency hedge their foreign asset exposures, and insights on how to approach currency hedging. (0:30:42) Premium timing: Why timing exposure to premiums is so tempting; parameters that must be defined to implement timing strategies; and which strategies worked in their research. (0:39:21) Valuation ratios: why it theoretically makes sense that they would be related to differences in expected returns and why they aren't useful in timing premiums. (0:42:11) An overview of the main implications for pursuing premiums that arise from Dimensional's research. (0:44:10) Diversification and how to improve your odds of capturing return premiums. (0:46:38) The tradeoff between concentration and expected returns, and defining the optimal balance. (0:49:06) What investors should look for when choosing a systematic investment manager, why not all systematic strategies are created equal, and Dimemsional's approach. (0:52:52) The downsides of performance fees, specifically for systematic managers and what it was like writing a paper with Robert Merton. (0:57:41) How short-term reversals differ from momentum, ways that reversals are related to liquidity, and how reversals vary across different stocks. (01:03:12) The ways that Dimensional is implementing this knowledge in their portfolios; how their ideas go from research to publication to implementation. (01:08:18) What sets Dimensional apart, and the value that they add, despite their research being available online.   Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.caBenjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/  Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Wei Dai on Linkedin — https://www.linkedin.com/in/wei-dai-64a3071a/ Wei Dai's Academic Papers — https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=2888456 Dimensional Fund Advisors — https://www.dimensional.com/ Episode 234: Prof. Robert C. Merton — https://rationalreminder.ca/podcast/234   Papers From Today's Episode:  Assessing the Relative Magnitude of Premiums — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3981766 Pursuing Multiple Premiums: Combination vs. Integration — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3793594 Weighting for the Right One: Weighting Scheme Design for Systematic Equity Portfolios — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4016481 To Hedge or Not to Hedge: A Framework for Currency Hedging Decisions in Global Equity & Fixed Income Portfolios — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3703333 Another Look at Timing the Equity Premiums — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4586684 Premium Timing with Valuation Ratios How Diversification Impacts Investment Outcomes: A Case Study on Global Large Caps How Diversification Impacts the Reliability of Outcomes — https://carlsoncap.com/wp-content/uploads/DFA_-How-Diversification-Impacts-the-Reliability-of-Outcomes.pdf  On the Valuation of Performance Fees and Their Impact on Asset Managers' Incentives — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3686987 Reversals and the returns to liquidity provision — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4339591

Our guest on the podcast today is Victor Haghani. He is the co-author of a new book called The Missing Billionaires: A Guide to Better Financial Decisions. In 2011, Victor founded Elm Wealth, an investment advisory firm for high-net-worth individuals. He started his career at Salomon Brothers in 1984, where he became a managing director in the bond arbitrage group. And in 1993, he was a co-founding partner of Long-Term Capital Management. He graduated from the London School of Economics with a bachelor's degree in economics.BackgroundBioElm WealthThe Missing Billionaires: A Guide to Better Financial Decisions, by Victor Haghani and James WhiteInvestment Sizing and Expected Utility“The Most Costly Investment Mistake You Can Make Is Easy to Avoid,” by Victor Haghani and James White, Bloomberg.com, Feb. 14, 2024.“Bigger Is the Enemy of Better Investing,” by Victor Haghani and Richard Dewey, businesstimes.com, March 20, 2021.Robert K. Merton“Merton Model: Definition, History, Formula, What It Tells You,” by Will Kenton, Investopedia.com, Aug. 10, 2022.“Lifetime Portfolio Selection Under Uncertainty: The Continuous-Time Case,” by Robert C. Merton, jstor.org, August 1969.“How Much of a Good Thing Is Too Much?” by Victor Haghani, linkedin.com, Oct. 11, 2022.“To Realize, or Not to Realize,” by Victor Haghani and James White, elmwealth.com, Oct. 22, 2020.Lifetime and Retirement Spending“Spending Like You'll Live Forever,” by Victor Haghani and James White, elmwealth.com, April 6, 2021.“Cut Your Losses Early; Let Your Profits Run,” by Victor Haghani, linkedin.com, Aug. 8, 2023.Puzzles“George Costanza At It Again: The Leveraged ETF Episode,” by Victor Haghani and James White, elmwealth.com, April 16, 2020.“Who Wants Protection Like This?” by Victor Haghani, linkedin.com, Nov. 14, 2022.Other“Vic's TEDx Talk: Where Are All the Billionaires and Why Should We Care?” Elmwealth.com, March 8, 2013.Matt LevineMichael LewisThe St. Petersburg ParadoxHal Hershfield“Hal Hershfield: People Treat Their Future Self as if It's Another Person,” The Long View podcast, Morningstar.com, Sept. 21, 2021.Stumbling on Happiness, by Daniel GilbertWhen Genius Failed: The Rise and Fall of Long-Term Capital Management, by Robert LowensteinInventing Money: The Story of Long-Term Capital Management and the Legends Behind It, by Nicholas Dunbar

It's hard to believe, but today's episode marks our fifth annual year-in-review episode — where we look back at some of our favourite conversations and takeaways from the past year! If there's one overarching theme that stood out amongst our guests in 2023 it would be the power of purposeful decision-making to impact our future selves. Tuning in, you'll hear our guests' remarkable views on the topic, from the power of regret when it comes to long-term decisions to the ‘hidden partner' that accompanies us in all our decision-making. Another key theme that emerged is how the role of financial advisors is evolving. Key insights include why your financial advisor should collaborate with other advisors, why trust is essential, and how to prepare your children for wealth. We wrap things up with reflective tips on how to identify what your true goals are with a profound lesson on why setting your own scoreboard is essential. Tune in as we share some of our favourite moments from the past year and look back at the incredible guests we've had on the show in 2023!   Key Points From This Episode:   Our year with the Rational Reminder community: 23 in 23 reading challenge, memorable meetups, live recordings, a shoutout to our community moderators, and more. (0:00:19) Looking back at our conversation with Charles Ellis and Burton Malkiel on why money management is a loser's game and navigating market efficiency. (0:08:42) Pim Van Vliet's insights on the evidence supporting higher expected returns related to certain stock characteristics. (0:16:19) Discussing the relevance (and irrelevance) of dividends and why people tend to view dividends as particularly special, with Professor Samuel Hartzmark. (0:19:42) Our conversation with Will Goetzmann on the value of very long-term data and why historical data is still relevant today. (0:24:58) Nobel laureate, Robert Merton's insights on putting together a long-term asset mix and taking into account your time horizon. (0:32:35) Highlights from our conversation with Professor Francisco Gomes on how asset allocation should (and should not) change over the lifecycle. (0:39:14) Our second interview with David Blanchett on how regret informs our long-term decisions and Daniel Pink's insights on optimizing for future regret. (0:43:58) Hear from Charles Ellis on the most under-appreciated action that every investor should take to be more successful. (0:50:50) Making decisions on personal finance and John Cambell's insights on how household beliefs tend to differ. (0:51:53) Professor Ralph Keeney on why decision-making is the only purposeful way you can influence anything in your life. (0:54:54) Input from Cass Sunstein on the extensive research he's done on decision-making and how acquiring more information can help your decisions. (0:59:25) We hear from Professor Eric Johnson about the ‘hidden partner' that accompanies us when we make decisions and Cass Sunstein explains when we should update our beliefs. (01:03:09) Professor James Choi shares his profound insights on why financial decisions are not always explained by economic theory. (01:10:26) Unpacking the effect of overconfidence on our decision-making with Itzhak Ben-David, along with his key ideas on miscalibration. (01:12:53) Answering the question “How good are we at understanding our future selves?” with Hal Hershfield. (01:17:20) Our conversation with Meir Statman on the third generation of behavioural finance and what that means for decision-making and advice. (01:21:13) Dr. Preet Banerjee's research and insight on the value of having a financial plan. (01:23:48) Talking with YouTuber, Darin Soat, about the struggle to find high-quality financial information online and understanding YouTube as an entertainment-first platform. (01:25:02) Harold Geller on how to determine whether your advisor is properly understanding you and Robert Merton's thoughts on how he views the role of financial advisors. (01:28:27) We hear from Dr. Preet Banerjee on the business of financial advice and how it has changed over time. (01:35:02) Victor Haghani and James White on the topic of intergenerational billionaires and why there are fewer than you might expect. (01:39:21) An update from Rob Carrick on the state of financial planning for the average Canadian in 2023. (01:44:09) Juhani Linnainmaa unpacks the impact of financial advisors on decision-making and the challenges of choosing a financial advisor. (01:48:48) Dr. James Grubman on identifying a financial advisor who understands the importance of Wealth 3.0, why collaboration is key, and how to prepare children for wealth. (01:51:21) A final takeaway from Shane Parrish on taking stock of your year and how to determine what your true goals are. (02:02:28)   Links From Today's Episode:   Episode 234: Prof. Robert C. Merton — https://rationalreminder.ca/podcast/234 Episode 236: Harold Geller — https://rationalreminder.ca/podcast/236 Episode 238: Prof. Ralph Keeney — https://rationalreminder.ca/podcast/238 Episode 240: Prof. Eric J. Johnson — https://rationalreminder.ca/podcast/240 Episode 244: Charles D. Ellis — https://rationalreminder.ca/podcast/244 Episode 246: Daniel H. Pink — https://rationalreminder.ca/podcast/246 Episode 248: Prof. William Goetzmann — https://rationalreminder.ca/podcast/248 Episode 250: Prof. John Y. Campbell — https://rationalreminder.ca/podcast/250 Episode 252: Prof. Burton Malkiel — https://rationalreminder.ca/podcast/252 Episode 254: David Blanchett — https://rationalreminder.ca/podcast/254 Episode 256: Prof. Hal Hershfield — https://rationalreminder.ca/podcast/256 Episode 258: Prof. Meir Statman — https://rationalreminder.ca/podcast/258 Episode 260: Prof. James Choi — https://rationalreminder.ca/podcast/260 Episode 262: Prof. Francisco Gomes — https://rationalreminder.ca/podcast/262 Episode 264: Pim van Vliet — https://rationalreminder.ca/podcast/264 Episode 266: Prof. Cass Sunstein — https://rationalreminder.ca/podcast/266 Episode 268: Itzhak Ben-David — https://rationalreminder.ca/podcast/268 Episode 269: Preet Banerjee — https://rationalreminder.ca/podcast/269 Episode 270: Victor Haghani and James White — https://rationalreminder.ca/podcast/270 Episode 272: Rob Carrick — https://rationalreminder.ca/podcast/272 Episode 273: Professor Samuel Hartzmark — https://rationalreminder.ca/podcast/273 Episode 275: Live from Future Proof 2023 with Hal Hershfield — https://rationalreminder.ca/podcast/275 Episode 276: Darin Soat — https://rationalreminder.ca/podcast/276 Episode 278: Juhani Linnainmaa — https://rationalreminder.ca/podcast/278 Episode 280: Shane Parrish — https://rationalreminder.ca/podcast/280 Episode 282: James Grubman —  Episode 224: Scott Cederberg — https://rationalreminder.ca/podcast/224 Winning the Loser's Game: Timeless Strategies for Successful Investing — https://www.amazon.com/Winning-Losers-Game-Strategies-Successful/dp/1264258461 A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing — https://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393358380 Your Future Self: How to Make Tomorrow Better Today — https://www.halhershfield.com/yourfutureself A Wealth of Well-Being: A Holistic Approach to Behavioral Finance — https://www.amazon.com/Wealth-Well-Being-Holistic-Approach-Behavioral/dp/1394249675 Strangers in Paradise: How Families Adapt to Wealth Across Generations — https://www.amazon.com/Strangers-Paradise-Families-Wealth-Generations/dp/0615894356 Wealth 3.0: The Future of Family Wealth Advising — https://www.amazon.com/Wealth-3-0-Future-Family-Advising/dp/B0C9SHFSGM Clear Thinking: Turning Ordinary Moments into Extraordinary Results — https://www.amazon.com/Clear-Thinking-Turning-Ordinary-Extraordinary/dp/0593086112 30 Lessons for Living — https://www.karlpillemer.com/books/30-lessons-for-living/ Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://twitter.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.caBenjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/  Benjamin on X — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://twitter.com/MarkMcGrathCFP

Few people have impacted the way the world works, and today, we have the privilege of speaking to one of them. Professor Robert C. Merton is the Distinguished Professor of Finance at The Massachusetts Institute of Technology (MIT) Sloan School of Management and Professor Emeritus at Harvard University. He has a Ph.D. in Economics from MIT and is currently the Resident Scientist at Dimensional Fund Advisors. Professor Merton was awarded the Alfred Nobel Memorial Prize in Economic Sciences in 1997 for his work establishing a new method to determine the value of derivatives. He also created the Intertemporal Capital Asset Pricing Model (ICAPM), a popular tool to help advisors make informed financial decisions and understand market trends. In our incredible conversation, we cover portfolio theory, moving from Capital Asset Pricing Model (CAPM) to the Intertemporal Capital Asset Pricing Model (ICAPM), and how financial models work. We also discuss the difference between the value of your capital and the value of the cash flow that can come from that capital, why size can't be a factor, what aspects to consider when calculating the worth of an account, and the definition of market efficiency. We also delve into retirement, how to safely invest for it, what pitfalls to avoid, and how retirement funds may change over time. He also shares his opinion about some popular financial advise and what the roles of financial advisors should be. For all this and more, tune in to hear from the man behind the model and Nobel laureate, Professor Robert C. Merton!   Key Points From This Episode:   We start with Professor Merton describing the concept of market efficiency. (0:04:28) He explains the basics of his ICAPM asset pricing model. (0:09:10) How portfolio theory changes when moving from single-period to multi-period. (0:10:46) Hear a practical example of expected returns changing over time. (0:14:15) Why ICAPM is dependent on the sensitivities to risk of an individual investor. (0:22:52) Find out how to determine if the correct proxy has been identified for a risk. (0:25:34) Learn how home country bias fits into portfolio choice from an ICAPM hedging perspective. (0:31:54) The definition of a risk-free asset and how it changes with time. (0:33:24) What influence the time horizon should have on the mix between stocks and bonds in an investor's portfolio. (0:35:33) His opinion about young investors using leverage to make investments. (0:41:50) What people should be doing to get more accessibility to leverage. (0:47:39) Professor Merton tells us who should focus on value stocks and growth stocks. (0:51:34) Discover what makes retirement income a difficult problem to solve and tips to ensure your retirement. (0:56:47) We discuss using Monte Carlo simulations to estimate how much people can spend in retirement. (1:09:04) He provides insight into how to get more from your retirement investment. (1:13:04) Whether nominal annuities are considered low-risk assets for retirees. (1:16:48) An overview of the impact mathematical models have had on the finance sector. (1:20:12) Areas of finance practice that are lagging behind the financial models. (1:27:35) Hear what popular financial advice Professor Merton thinks is misguided. (1:33:22) Ways his work on option pricing has impacted society. (1:41:26) The role he sees for financial advisors. (1:45:42) Why he decided to join Dimensional Fund Advisors. (1:48:54) Professor Merton unpacks the definition of product design. (1:52:14) Stay listening for the extended discussion. (1:57:24)   Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-234-prof-robert-c-merton-icapm-retirement-and-models-in-finance-discussion-thread/20748     Links From Today's Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Prof. Robert C. Merton — https://robertcmerton.com/    

Episode 050 Solving the retirement income conundrum. Featuring David Macchia, Tech Entrepreneur David Macchia is an entrepreneur, a thought leader, and a public speaker focused on communication and tech solutions for retirement income distribution planning. David writes frequently on the retirement income for consumers and financial professionals, and is the author of Lucky Retiree, how to keep your retirement income and create it using the Income for Life Model. In 2004, David realized that there were 76 million baby boomers approaching retirement who didn't know how to turn accumulated savings into retirement income. In the US, we don't educate people how to turn a nest egg into retirement income.  David likes to focus on American women through his Women and Income™ program developed for female investors who are approaching retirement or recently retired.  David makes this complicated subject easy to understand. We discuss: The difference between financial planning and retirement income planning. The problem with the commonly used traditional approach called the total return strategy. The three labels of retirees-under-funded, over-funded and the constraint strained. How to mitigate risks. A balanced strategy includes safe investments and paychecks, ongoing exposure to equities and stock market participation. Nobel Prize winner Robert C. Merton's quote, “In retirement, it's your income, not your wealth, that creates a standard of living.” The bucket strategy. How men and women think differently about investing. Enjoy the show! Connect with David: Website: https://davidmacchia.com/about/ Website: https://wealthpop.com/retirementinvestor Connect with Kris: Website: https://www.lpfadvisors.com/ LinkedIn: https://www.linkedin.com/in/kristopher-flammang-lpfadv/ Twitter: @kflammang Learn more about your ad choices. Visit megaphone.fm/adchoices

Our guest this week is Gerard O'Reilly. Gerard is co-CEO and chief investment officer of Dimensional Fund Advisors, an asset manager headquartered in Austin, Texas, that manages more than $600 billion using a systematic investing approach. In his role, Gerard works with his co-CEO, Dave Butler, to set the firm's vision and strategy while also overseeing its investment processes. Prior to assuming his current post, Gerard was Dimensional's head of research. In addition to serving as a Dimensional director, Gerard co-chairs the firm's Investment Research Committee and is a member of its Investment Committee. Gerard obtained his doctorate in aeronautics from the California Institute of Technology and his master's degree in high-performance computing from Trinity College, Dublin.BackgroundBio“Dimensional Eyes the Fund Sector’s Trillion-Dollar Club,” by Owen Walker, thefinancialtimes, March 31, 2019.ETF Launch “Dimensional Fund Advisors Significantly Expands ETF Offering,” dimensional.com, Nov. 17, 2020.“Dimensional Investing in an Active ETF Structure,” dimensional.com, Nov. 17, 2020.“Dimensional Funds ETFs Launch as Quant Plans to Convert Mutual Funds,” by Claire Ballentine, Bloombergquint, Nov. 19, 2020.“Why Dimensional Fund Advisors Is Converting Six of its Mutual Funds to the ETF Format,” by Lizzy Gurdus, cnbc.com, Dec. 1, 2020. Innovation, Value, and Return“Market Beaters: A Different Dimension,” by Beverly Goodman, barrons.com, Jan. 6, 2014.“3 Shades of Value,” by Daniel Sotiroff, Morningstar.com, Sept. 26, 2018.“Robert Merton on Financial Innovation,” by Robert C. Merton, dimensional.com, June 24, 2019.“The Real Reason Value Has Been Lagging Growth,” by Julie Segal, institutionalinvestor.com, Oct. 24, 2019.“Tesla’s Charge Reveals Weak Points of Indexing,” dimensional.com, Jan. 15, 2020.“Untangling Intangibles,” by Savina Rizova and Namiko Saito, dimensional.com, Sept. 28, 2020.“An Exceptional Value Premium,” dimensional.com, Oct. 5, 2020. “Securities Lending Fees as a Short-Term Driver of Stock Returns,” by Kaitlin Simpson Hendrix and Gavin Crabb, dimensional.com, Nov. 11, 2020.ESG“Sustainability Report,” dimensional.com, Dec. 31, 2020.“Burton Malkiel: ‘I Am Not a Big Fan of ESG Investing,’ ” The Long View podcast with Christine Benz and Jeff Ptak, Morningstar.com, Aug. 5, 2020.“Dimensional Finds ‘Little Evidence’ Emissions Are Linked to Expected Returns,” by Christine Idzelis, institutionalinvestor.com, Oct. 22, 2020.

What if there were a better way for us to think through life’s riskiest decisions? That’s where Allison Schrager comes in. She’s the author of the book, An Economist Walks into a Brothel: And Other Unexpected Places to Understand Risk. An economist, journalist at Quartz, and cofounder of LifeCycle Finance Partners, she led retirement product innovation at Dimensional Fund Advisors and consulted for international organizations, including the OECD and the IMF. Allison has also been a regular contributor to The Economist and Bloomberg BusinessWeek, and she teaches at New York University. For her book, Alison spent time with high-risk professionals, like big-wave surfers, movie producers, and sex workers. She learned how they manage risk and shares what we can learn from them. Along the way, she learned some surprising things about herself, like what it felt like to play in her first poker tournament: “We start at 8:00, and it’s like midnight, and I’m like ‘When does this game end?’ And people are like ‘When you run out of chips.’ And I’m like, oh my god, I’m going to be here forever.” When it comes to risk, Allison believes we can learn to overcome our biases and manage risk effectively. She explains, “There’s been so many books [on the topic] …but they always write everyone off as being sort of hopeless when it comes to risk or thinking probabilistically, and I really believe everyone has it in them.” You can learn more about Curious Minds Host and Creator, Gayle Allen @CuriousGayle and www.gayleallen.net. Episode Links Moonlite BunnyRanch and Dennis Hof Kat Cole and Focus Brands Film producer, Ryan Kavanaugh Idiosyncratic risk versus systematic risk Top poker player, Phil Hellmuth, and poker staking How Luck Happens by Janice Kaplan and Barnaby Marsh Gerd Gigerenzer Arnold Donald and IoT and AI with Carnival cruises David Bowie Magician Belinda Sinclair Robert C. Merton Big Wave Risk Assessment Group H. R. McMaster Simple Ways to Support the Podcast If you enjoy the podcast, there are three simple ways you can support our work. First, subscribe so you’ll never miss an episode. Second, tell a friend or family member. You’ll always have someone to talk to about the interview. Third, rate and review the podcast wherever you subscribe. You’ll be helping listeners find their next podcast. A Short List of Places Where You Can Find Curious Minds Spotify iTunes Tunein Stitcher Google Play Overcast

A bona fide living legend, Dr. Robert C. Merton was one of the first true scientists to enter - and revolutionize - the world of finance. A distinguished professor at both MIT and Harvard, Merton was awarded the 1997 Nobel Prize in Economics. Merton breaks down what he sees as a looming potential financial crisis, just over the horizon: the underfunding of the baby boom generation's retirement savings.

Professor Robert C. Merton, winner of the 1997 Nobel Prize for Economic Sciences and professor of finance at the MIT Sloan School of Management, explains how a longer average lifespan affects retirement planning and what you need to do to plan for your old age today. Follow Professor Merton at: www.robertcmerton.com

本期由Yixue主持，Alfred同学分享了期权定价公式研究的背景以及历史过程，主要介绍了Paul Samuelson先生和Robert Merton先生在权证定价方面开创性的研究，以及Fischer Black先生与Myron Scholes先生关于期权定价公式的研究过程。 CORE TOPICS: 期权定价、费谢尔·布莱克、CAPM、无风险套利 SHOW NOTE： CAPM Paul Samuelson Robert C. Merton Robert K. Merton Black–Scholes model Myron Scholes 期权 权证 The History of Options Trading Put–call parity 期权平价公式 场外交易 无风险套利 证券交易所 芝加哥期权交易所 GARCH 做市商制度 现金流折现 定价未来 费希尔·布莱克与革命性金融思想 注释： 节目中将期权归为一类或近似，但是期权和权证其实是有区别的，见权证与其他金融衍生品的对比 更多内容请访问:www.quant.fm

Doug meets Robert C. Merton, winner of the Nobel Prize for Economics in 1997 and professor of finance at the MIT Sloan School of Management. Professor Merton explains how a longer average lifespan has affected retirement planning and what you need to do to plan for your old age today.

In episode #178, Nobel laureate Robert C. Merton challenges traditional models used by investors to measure sovereign and financial system credit risk, while proposing an alternative framework.

Robert C. Merton discusses financial models, the current economic crisis, as well as thoughts about future solutions for retirement.