Podcast
Talking Real Money - Investing Talk
Hosted by Don McDonald · EN
Financial talk radio veteran, Don McDonald and former host of Serious Money on PBS, Tom Cock, join forces to talk about real money issues. In each episode, they solve real money problems, dole out real investing (not speculating) advice, and really explain the financial issues that effect all of us. Plus, it's actually fun! Talking Real Money is a podcast designed to provide the real help we all need to enjoy a really great future. Call in with your questions anytime at 855-935-TALK (8255).
17episodes
Episodes
Newest firstAll episodes
Calculating Your Future
2d ago00:38:46Tap to summarizeDon and Tom tackle a Wall Street Journal financial decision-making quiz that explores how to prioritize competing goals such as retirement savings, high-interest debt, mortgages, and student loans. The discussion highlights the importance of employer matching contributions, the damaging impact of credit card debt, and the reality that many financial decisions depend on individual circumstances and risk tolerance. They then answer listener questions about retirement portfolio allocation, Fisher Investments’ sales tactics and fees, stock ownership concentration among wealthy Americans, and whether a federal retiree should consolidate TSP assets into a Vanguard IRA. The episode emphasizes building a financial plan before making allocation changes, avoiding market predictions, and simplifying finances where possible.0:00 Wall Street Journal financial decision-making quiz begins1:23 Prioritizing 401(k) matches versus high-interest debt4:31 When to pay down credit cards instead of investing more5:20 Borrowing from a 401(k) to eliminate 22% credit card debt6:07 Mortgage payoff versus other debt reduction strategies7:55 Mortgage prepayment versus additional retirement savings9:35 Building a hierarchy for financial priorities11:07 Listener Bob asks about retirement readiness and portfolio allocation13:02 Fisher Investments’ fees, sales tactics, and active management claims16:15 Why retirement planning should come before allocation decisions19:40 Stock ownership concentration among the wealthiest Americans22:03 Why markets are not a zero-sum game23:51 Will retiring Baby Boomers hurt stock prices?25:52 Listener asks about consolidating TSP and Vanguard retirement accounts29:18 Comparing Vanguard and TSP target-date fund allocations31:57 Benefits of simplifying and consolidating retirement accounts35:06 Don discusses sales and distribution of The Line UncrossedQuestions? Comments? Click!
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Retirement Mistakes
3d ago00:38:59Tap to summarizeDon and Tom tackle some of the most common retirement planning mistakes, with a particular focus on taxes and the danger of becoming overly obsessed with them. They discuss taxable Social Security benefits, the importance of diversifying across account types, Roth conversion considerations, tax-loss harvesting, and why most retirement decisions ultimately fall into the category of “it depends.” They also answer a listener question about navigating poor 403(b) plan options and the advantages of a 457 plan for educators. Finally, they dive deep into a thoughtful challenge from a listener regarding Avantis and Dimensional factor funds versus traditional Vanguard index funds, examining the evidence for factor tilts, the role of risk premiums, costs, and whether higher expected returns justify modestly higher expense ratios.0:05 Retirement planning mistakes, taxes, retirement income, financial independence, retirement readiness1:58 Tax obsession, retirement taxes, income planning, financial priorities, wealth management2:43 Social Security taxation, taxable benefits, retirement income, Social Security myths, tax planning5:14 Tax diversification, traditional 401(k), Roth accounts, brokerage accounts, retirement savings7:57 Roth IRA, young investors, compound growth, retirement investing, tax-free income9:11 Tax-loss harvesting, brokerage accounts, capital gains, tax strategy, investment management10:03 Roth conversions, Medicare IRMAA, retirement taxes, financial planning, tax efficiency12:03 Inherited IRAs, heirs, estate planning, retirement accounts, legacy planning13:35 403(b) plans, 457 plans, retirement savings, school employees, listener question15:29 403(b) Wise, 457B Wiser, educator retirement plans, high fees, retirement options18:35 Roth IRA investing, small-cap funds, emerging markets, diversification, asset allocation19:38 Avantis funds, Dimensional funds, Vanguard funds, factor investing, index investing23:55 Fama-French research, small-value premium, indexing, active management, factor premiums26:08 Rules-based investing, passive investing, factor tilts, portfolio construction, diversification27:02 Small-cap value investing, fund performance, index comparisons, advisor value, investment returns30:25 International small value, emerging markets, factor premiums, diversification, expected returns32:55 Academic investing research, Nobel Prize economics, risk premiums, value investing, factor investing35:18 Portfolio construction, asset allocation, diversification, retirement planning, investment strategy36:16 Free portfolio review, financial advice, portfolio allocation, retirement readiness, fiduciary planningQuestions? Comments? Click!
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Question Feast
6d ago00:24:50Tap to summarizeDon celebrates the continued success of the Friday Q&A format and the encouraging first week of sales for his novel The Line Uncrossed, including a strong Kirkus review, before tackling a series of listener questions centered on retirement income and fixed income investing. He explains how his combination of cash reserves, a CD ladder, and bond funds supports a disciplined withdrawal strategy, discusses why diversified bond funds like BND still play an important role in reducing portfolio volatility, rejects the idea that Social Security and pension income should be counted as bond allocations within an investment portfolio, argues against the concept of a reverse glide path that increases stock exposure later in retirement, and shares lessons learned from decades of entrepreneurship about balancing investments in a business versus the market. Throughout the episode, he emphasizes diversification, discipline, investor behavior, and the importance of managing volatility rather than chasing returns.0:05 Why listener questions remain Don’s favorite part of talk radio after 40+ years1:16 Friday Q&A episodes continue to be the most downloaded shows each week1:50 Easier ways to submit questions through the redesigned Talking Real Money website2:42 First-week sales update on The Line Uncrossed and reader support3:21 Positive Kirkus review and details on the ebook bundle4:48 How Don uses cash, bond funds, and a CD ladder during retirement8:00 Why BND and total bond market funds remain useful fixed income tools11:22 Should Social Security and pensions count as bonds in your allocation?14:26 Why Don believes reverse glide paths are a bad retirement strategy17:34 Investing in your own business versus investing in the market21:23 Why compliance reviews delay listener questions from airingQuestions? Comments? Click!
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You're Right, Of Course
1w ago00:29:44Tap to summarizeThis episode of Talking Real Money examines why financial advice so often turns into emotional debate instead of productive problem-solving. Don and Tom discuss how investors routinely underestimate spending, cling emotionally to employer stock, and defend strategies like dividend chasing, covered calls, crypto, or gold despite decades of evidence favoring diversified investing. They answer a listener question about aggressively paying down a 6.625% adjustable-rate mortgage versus maintaining liquidity, warn about commissioned advisors circling employees receiving RSU payouts, and correct a previous mistake regarding Roth employer matches under Secure 2.0 legislation. Along the way, the hosts mix humor, blunt honesty, and personal stories about why changing financial behavior is far harder than simply explaining the math.0:05 Are listeners looking for advice, validation, or just an argument?0:58 “Two old white guys waiting to die on a podcast” and why changing investor behavior is so difficult1:24 Basis points complaints and arguing over financial terminology2:21 Why financial planning conversations often become debates3:16 Most people underestimate how much they actually spend4:04 Net income minus savings equals spending, whether you admit it or not4:59 Growing up arguing in big families and learning debate skills early5:53 Emotional attachment to employer stock and concentration risk6:19 Microsoft, Enron, Washington Mutual, and the danger of loyalty investing7:02 Why many individual stocks underperform for long stretches7:42 Covered calls, dividend strategies, and belief in “secret” investing systems8:16 Why Don and Tom remain skeptical of crypto, gold, and speculative investing9:16 Their investing philosophy comes from peer-reviewed academic research, not hunches10:17 If you call for portfolio help, don’t expect automatic validation11:23 Listener Jim asks whether to aggressively pay down his adjustable-rate mortgage12:17 Extra principal payments versus saving cash to pay off the mortgage later13:12 Why a 6.625% mortgage changes the payoff math14:35 Liquidity concerns versus the emotional appeal of being debt-free15:06 Mortgage recasting explained and reducing future interest costs17:39 Regret over not refinancing during ultra-low-rate years18:10 Why peace of mind sometimes outweighs financial optimization18:50 “Paper argues badly” and the transition into listener emails18:59 RSU sharks circling a listener with a large restricted stock payout19:48 Wealth managers aggressively targeting employees cashing out company stock20:47 Warning signs of commissioned annuity sales disguised as “help”21:48 Why concentrated company stock remains risky even after huge gains22:24 Recalling the advisor who openly admitted to a 10% annuity commission22:41 Retirement quiz follow-up and correcting a Roth 401(k) mistake23:01 Secure 2.0 technically allows Roth employer matches in 401(k)s24:09 Why most employers still don’t offer Roth matching contributions24:36 Tax uncertainty and the value of maintaining both Roth and pre-tax accounts25:33 Tom admits he occasionally tells players when he missed a call as a referee26:05 Encouraging listeners to argue, ask questions, and engage with the show27:02 Offering free portfolio consultations without annuity sales pressure27:39 Joking about becoming annuity salesmen after all these yearsQuestions? Comments? Click!
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Free Money?
1w ago00:35:54Tap to summarizeTom and Don dismantle the myth of “free money” from high-dividend stocks and ETFs, explaining why chasing yield often leads to poor diversification, lower total returns, and disappointing long-term performance. Using examples like Campbell’s, Kraft Heinz, and Whirlpool, they show how dividend-paying companies can still destroy shareholder value while the broader market marches higher. The episode also features listener questions on military retirement planning with a pension-heavy income stream, asset allocation and Roth contributions near retirement, how to structure a UC retirement portfolio using low-cost index funds and small-cap value tilts, and the smartest way to generate retirement withdrawals from a balanced portfolio. Along the way, Don plugs his new Civil War novel The Line Uncrossed and the hosts revisit some old radio history.0:05 Dividend investing myths and “free money” thinking2:18 Why retirees are drawn to dividend stocks and ETFs4:03 Huge inflows into high-dividend ETFs despite lower expected returns5:19 Total return vs. income investing explained5:45 Campbell’s Soup and Kraft Heinz as dividend trap examples7:06 Whirlpool cuts long-running dividend after financial strain8:10 Why total return matters more than yield9:10 Vanguard Dividend Growth vs. S&P 500 performance comparison10:44 The dangers of concentrated dividend strategies12:19 Why “magic income” strategies usually disappoint13:32 Military retirement caller asks about pensions, Roths, and mortgage payoff17:43 Using pensions as bond-like income in portfolio allocation18:41 Caller shifts from U.S.-only investing toward global diversification20:28 Don discusses The Line Uncrossed and companion Civil War stories22:30 UC employee asks about AVGE/DFAW vs. ultra-cheap UC index fund24:39 Suggested mix using low-cost index fund plus small-cap value tilts26:04 Listener thanks Don for decades of investing guidance27:58 Retirement withdrawal strategies from a 60/40 portfolio29:19 Rebalancing as the primary source of retirement cash flow30:14 Why retirement distribution planning matters32:35 Fiduciary advice vs. product sales pitches33:54 Friendly rivalry with Stacking BenjaminsQuestions? Comments? Click!
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Infinite Bubbles?
1w ago00:28:29Tap to summarizeTom and Don tackle the impossible task of spotting market bubbles in real time, leaning on insights from Jason Zweigand Eugene Fama to argue that if bubbles were truly predictable, they wouldn’t exist. They discuss soaring semiconductor and AI-related stocks, speculative manias from tulips to SPACs to Bitcoin, and why diversification and disciplined rebalancing beat emotional market timing every time. Listener questions cover tax-loss harvesting and wash sales involving VT, VTI, and VXUS ETFs, family conversations about money, Roth conversion strategy for a wealthy near-retiree, and Dimensional’s refusal to chase hot IPOs despite the S&P 500’s changing rules. Along the way, there’s plenty of classic TRM banter about giant brains, vacation boredom, and the dangers of trying to outsmart markets that are probably smarter than all of us combined.0:05 Bubble noises, market mania, and why everyone thinks they can spot bubbles1:11 Jason Zweig on semiconductor stocks soaring nearly 40% in a month2:23 Emerging markets, small value, and global stocks compared to AI-driven speculation3:39 Eugene Fama explains why bubbles are impossible to identify in real time4:26 Dot-coms, Bitcoin, SPACs, and the legendary tulip bulb bubble5:03 Why “doing nothing” often beats reacting emotionally to market fears5:51 Jason Zweig’s sign of a bubble: when critics get attacked instead of debated7:15 Rebalancing, diversification, and why the S&P 500 alone isn’t enough9:41 Listener question on tax-loss harvesting, wash sales, and replacing VT with VTI and VXUS14:05 Why families should talk openly about money instead of outsourcing financial education to TikTok17:44 Near-retiree with $7.3 million asks about Roth conversions and paying taxes from IRAs20:36 Dimensional responds to S&P rule changes allowing earlier IPO inclusion21:15 Why Dimensional avoids IPOs during their first year after going public22:39 Allbirds’ collapse from a $2.2 billion IPO to a $39 million sale24:47 Why waiting before buying IPOs may reduce riskQuestions? Comments? Click!
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Q&A and Book Day
2w ago00:21:58Tap to summarizeDon opens the show with a deeply personal announcement: the release of his first novel, The Line Uncrossed, inspired by the life of his great-great-grandfather, a teenage Union soldier captured at Chickamauga and imprisoned at Andersonville. After sharing the journey behind the book, the episode shifts into listener Q&A covering the limited diversification benefits of international bond funds, skepticism toward direct indexing for retirees with taxable accounts, concerns about high-yield student loan investment schemes like Yrefy, ethical and practical issues surrounding Medicaid asset-protection trusts, and the surprising usefulness of adult-funded 529 plans as a backup Roth-style savings vehicle.0:05 Don announces the release of The Line Uncrossed and shares the personal Civil War inspiration behind the novel2:50 Q&A begins with a question about international bond funds like Vanguard Total International Bond ETF versus domestic-only bonds6:11 Direct indexing in a taxable account: why the tax benefits may be overstated for retirees slowly averaging in8:13 Skepticism about Yrefy and high-yield private student loan investing10:52 Medicaid asset-protection trusts, ethical concerns, and simplifying investments for heirs16:28 Using adult-funded 529 plans as a long-term tax-advantaged savings strategy with Roth rollover potentialQuestions? Comments? Click!
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Indexes Gone Wild
2w ago00:29:27Tap to summarizeDon and Tom take on the uncomfortable reality that even supposedly “rules-based” index investing is starting to look suspiciously active, as major indexes like the S&P 500 consider bending long-standing rules to admit massive IPOs like SpaceX earlier than before. They explain why changing index rules matters more than most investors realize, debate whether index committees are chasing performance to stay competitive with the QQQ, and argue that broad global diversification may be safer than relying on any single benchmark. Listener questions cover retirement-saving strategies for LLC owners, how highly compensated employees can work around 401(k) discrimination limits, the pros and cons of backdoor Roth strategies, and why taxable brokerage accounts are often more tax-efficient than people assume. The episode wraps with skepticism about proposed “Trump IRA” retirement plans that don’t actually exist yet, plus the usual blend of sarcasm, practical advice, and mild exasperation with modern finance.0:05 Rules-based investing versus changing the rules mid-game0:50 Why podcasting is safer than television for Don and Tom1:40 How index funds are supposed to work2:27 Why the S&P 500 wants SpaceX and giant IPOs3:01 IPO hype, pricing games, and the original S&P waiting rule4:05 Fear that indexes are drifting into active management5:01 Why investors wrongly assume the S&P 500 is “automatic”6:24 Explaining stock float and why liquidity matters8:07 QQQ and S&P changing IPO admission rules9:10 Why changing index rules should concern investors10:08 The explosion of specialized stock indexes11:33 Why owning the whole global market may be safer12:27 How Dimensional and Avantis differ from traditional indexes14:04 How listeners can submit questions to the show15:06 Retirement options for an LLC owner taking only dividends16:57 IRS concerns about treating a business like a hobby18:52 Highly compensated employee struggles with 401(k) testing20:42 Using a rollover IRA to reopen backdoor Roth opportunities21:58 Why taxable brokerage accounts are underrated22:33 Tax-efficient ETF investing and retirement flexibility23:14 Questions about the proposed “Trump IRA” plan24:35 Why investors should ignore retirement proposals that don’t yet exist25:58 Congress, air conditioning, and why Washington never leaves town26:48 Podcast rankings and chasing Stack & BenjaminsQuestions? Comments? Click!
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Fear Sells
2w ago00:34:39Tap to summarizeDon and Tom unload on sensationalized financial journalism, taking aim at recent articles claiming the 4% withdrawal rule and classic 60/40 portfolios are “failing” retirees. They argue that the media increasingly prioritizes fear-driven headlines over practical investing wisdom, pushing emotionally charged narratives that ignore investor behavior and long-term historical returns. The duo also push back against claims that target-date funds could wipe out retirees, explaining why diversified portfolios remain far less risky than headlines suggest. Listener questions cover Robinhood’s controversial 2% transfer bonus, SEC transaction fees on ETF sales, Roth IRA liquidity concerns, rebalancing discipline, and the dangers of emotionally reacting to politics and markets. Along the way, Don discusses the release of his Civil War novel The Line Uncrossed, while Tom manages to squeeze in Morse code, Rasputin, and model bomber references for absolutely no good reason whatsoever.0:05 Don and Tom rant about the collapse of quality financial journalism1:43 Criticism of Money.com article attacking the 4% rule and 60/40 portfolios2:44 Morningstar’s 3.7% withdrawal study versus the traditional 4% rule4:21 Why “100% stocks beats 60/40” ignores investor psychology and risk tolerance5:03 Emotional pain, market crashes, and why most investors cannot handle full equity exposure6:02 Financial media sensationalism and clickbait retirement headlines7:32 Seattle Times article warning target-date funds could destroy retiree savings8:35 Critique of claims that target-date funds are dangerously risky at retirement9:41 Discussion of Vanguard 2025 target-date allocation and global diversification12:00 Why diversified global portfolios are far less risky than fearmongers suggest13:16 Media outrage, sensationalism, and why Talking Real Money avoids scare tactics14:48 Listener comment about Don’s books appearing on Amazon15:15 Reality check on book royalties and publishing economics15:49 Discussion of Don’s Civil War novel The Line Uncrossed17:19 Book pricing, Kindle strategy, and avoiding Amazon exclusivity18:41 Transition to listener questions19:10 Caller asks about Robinhood’s 2% IRA transfer bonus and possible tax issues20:10 Why IRA transfers and Robinhood bonuses are generally not taxable21:05 Concerns about Robinhood’s gamified investing culture versus Vanguard’s philosophy22:03 Risks of getting lured into speculative products after transferring assets22:59 Caller explains working with a fee-only fiduciary advisor and self-managing investments24:48 SEC transaction fees on ETF sales explained25:47 Why the SEC fee is effectively meaningless for ordinary investors26:15 Listener question about moving Roth IRA money to CDs due to market fears29:10 Why emotionally reacting to politics and market fears can hurt long-term investing31:17 Importance of maintaining an appropriate long-term asset allocation31:41 Tom jokes nervously about a meeting with HRQuestions? Comments? Click!
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The Great and Powerful AI
2w ago00:34:22Tap to summarizeTom and Don explore whether artificial intelligence is truly ready to replace financial advisors, sparked by a recent Wall Street Journal experiment using ChatGPT to build a long-term investment portfolio. They break down the AI-generated recommendations, highlighting both the surprisingly sensible use of low-cost index funds and the concerning inconsistencies, recency bias, and lack of academic factor tilts. Along the way, they discuss whether AI gives investors what they need or simply what they want, the future of fiduciary advice, and why human judgment still matters. Listener questions cover retirement planning basics, the foreign tax credit on international ETFs, cash “bucket” strategies in retirement, and why banks paying 0.01% on savings accounts still somehow get away with it.0:05 AI threatens financial advice jobs and why Don is oddly relieved to be old1:15 Product placement, affiliate marketing, and favorite AI assistants2:06 Wall Street Journal test of ChatGPT as a financial advisor3:24 AI portfolio recommendations: 80/20 allocation breakdown5:13 Concerns about cash, REITs, and taxable account inefficiencies6:16 Lack of value and small-cap tilts in AI-generated portfolios7:10 Same prompt produces different AI portfolio recommendations8:44 MIT professor says AI investing isn’t “ready for prime time”9:50 AI personalization and the danger of confirmation bias11:09 Why AI is at least favoring low-cost indexing over active management12:14 How listeners can submit questions to the show12:51 Listener question: What actually goes into a financial plan?14:27 Retirement income planning basics and fixed income sources15:17 Using portfolios, home equity, and withdrawal strategies in retirement16:03 Estate planning, insurance, healthcare, and lifestyle considerations17:01 Why purpose and meaning matter in retirement planning19:17 Younger generations avoiding phone calls20:02 Foreign tax credits with VXUS, VT, AVGE, and AVGV22:33 How little foreign tax credits usually matter in practice23:36 Apple fandom, Cupertino, and Don’s dead Apple TV dilemma25:35 Listener question about cash buckets and retirement withdrawals26:14 How much “safe money” retirees should keep available27:19 Why excessive cash drags long-term portfolio performance29:13 Bank savings accounts paying 0.01% APY31:17 Free fiduciary advisor meetings through TalkingRealMoney.com32:33 Tom’s advancing age and the race to catch Stacking BenjaminsQuestions? Comments? Click!
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