What if the biggest risk in your portfolio isn't a crash, a recession, or even inflation, but the very human urge to believe that whatever just worked will work forever? Bill and Jackie sit down with Ben Carlson of A Wealth of Common Sense and Animal Spirits for a market-history masterclass that somehow manages to be equal parts calming, nerdy, and deeply practical. This one is for anyone who's ever stared at their portfolio, read one scary headline too many, and wondered whether simplicity still works. Ben's answer is basically yes—but only if you understand the risks, respect your own behavior, and build a portfolio you can actually stick with.

This episode covers:

Ben Carlson's "Bob" thought experiment and why even terrible market timing can still work out over the long run
Why dollar cost averaging often beats waiting for the perfect entry point
The psychology of lump-sum investing versus spreading money out over time
What inflation looked like before World War II versus in the modern era
How to think about inflation through a personal-finance lens, not just an investing lens
Why housing, transportation, income growth, and stocks are major inflation defenses
What Japan's lost decades teach us about home-country bias and international diversification
Why diversification matters even more in retirement because of sequence-of-returns risk
How to think about bonds, cash, duration, and risk tolerance in a more nuanced way

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F.I.R.E. For Dummies

Did you know that co-host Jackie Cummings Koski, CFP®, AFC® is also author of "F.I.R.E. For Dummies"? This is the perfect guide for anyone looking to move from the basics of their finances to reaching F.I.R.E. (Financial Independence, Retire Early) and enjoying the time freedom it creates. Even if you feel behind on your finances, the steps in this book will help you catch up sooner than you ever imagined.

Learn from someone who actually achieved F.I.R.E. in her 40s even after getting a late start
Covers everything from basics to advanced strategies in one guide
Practical solutions for early retirement obstacles like health insurance and early withdrawal penalties

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RESOURCES MENTIONED ON THE SHOW

A Wealth of Common Sense

Animal Spirits Podcast

Risk and Reward: How to handle market volatility and build long-term wealth

The Compound Youtube

⏰ Related Episodes

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How to Bake a Cake: An Asset Allocation Mashup | Rick Ferri & Paul Merriman | 134

"The Risk Parity Paradox" an Exercise in Simple Complexity? | Frank Vasquez | 124

📌Disclaimer: Our content is for general education and information purposes only. We are not providing financial, legal, or tax advice. Always do your own research or consult a professional before making important decisions.