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).
30episodes
Episodes
Newest firstAll episodes
Tom and Roxy Qs&As
2d ago00:25:07Tap to summarizeTom welcomes back advisor Roxy Butner for a wide-ranging discussion that begins with practical financial advice for new graduates and quickly expands into questions from listeners about student loans, emergency funds, retirement savings, portfolio construction, mortgages in retirement, and the coming frenzy around a potential SpaceX IPO. Along the way, they explore the tradeoffs between debt repayment and investing, the role of small-cap value tilts in diversified portfolios, why taxes matter when funding a major purchase from an IRA, and how investors should think about highly publicized investment opportunities.0:05 – Roxy Butner returns to the show by popular demand as Tom welcomes her back for a summer discussion of listener questions and financial topics.0:57 – Graduation season prompts a conversation about money advice for new graduates and young adults starting their financial lives.1:23 – Tom references recommendations from financial journalist Jill Schlesinger, including the importance of tracking spending before creating any financial plan.2:05 – Why understanding cash flow is the foundation of every financial decision, from debt repayment to investing.2:31 – The surprising statistic that roughly 60% of college graduates leave school with student loan debt and why understanding loan terms matters.3:30 – Roxy explains how graduates should evaluate student loan repayment versus investing based on cash flow and interest rates.4:11 – Building an emergency fund and why high-yield savings accounts remain a preferred location for short-term reserves.4:23 – Retirement savings for young workers, including the importance of capturing employer matches and establishing savings habits early.5:39 – Why freezing your credit can be a simple and effective defense against identity theft and fraud.6:43 – Listener question from Del Rio, Texas: Is AVGE enough small-cap value exposure for investors who follow factor-based investing principles?7:38 – Comparing AVGE’s built-in factor tilts with the heavier small-cap value allocations often recommended by Paul Merriman.8:32 – The long-term historical outperformance of U.S. small-cap value stocks and the tradeoff of accepting greater volatility.9:33 – Why Avantis intentionally chooses moderate factor tilts rather than aggressive small-cap allocations.10:25 – Roxy discusses risk-adjusted returns and the dangers of assuming that higher expected returns automatically justify larger allocations.11:37 – The appeal of simplicity and why a one-fund portfolio like AVGE can help investors avoid behavioral mistakes.12:31 – Listener question from Kansas City: Should retirees withdraw $1 million from an IRA to pay cash for a new home or take a mortgage?13:00 – A retired couple with a $4.2 million net worth faces a decision between a large IRA withdrawal and a mortgage at roughly 6.3%.14:14 – Why a massive IRA withdrawal could trigger substantial taxes and reduce portfolio flexibility.14:41 – Tom explains the difference between evaluating cash flow needs and preserving overall net worth.16:03 – The importance of maintaining liquidity in retirement and avoiding excessive concentration of wealth in a personal residence.16:41 – Roxy proposes a compromise strategy: take the mortgage now and gradually make larger payments using carefully managed annual IRA withdrawals.18:05 – A brief discussion about lake homes, neighboring properties, and the appeal of having family nearby.18:42 – Tom asks Roxy about investor excitement surrounding a possible SpaceX IPO and whether investors should participate.19:32 – Why investors may already gain exposure through index funds and retirement plans without purchasing shares directly.20:38 – IPO investing as speculation, the role of familiarity bias, and why investors should be cautious about concentrated bets.21:57 – How major IPOs eventually enter market indexes and become part of broadly diversified portfolios.22:02 – Summer plans, weddings, Seattle sunshine, and a lighter closing conversation.23:19 – How listeners can submit questions or schedule a free portfolio review through TalkingRealMoney.com.Questions? Comments? Click!
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Penny Wise?
6d ago00:28:11Tap to summarizeDon and Tom take on one of investors’ biggest blind spots: focusing on tiny costs while ignoring the factors that have a far greater impact on long-term wealth. Using a recent Jason Zweig article as a springboard, they explain how taxes can reduce stock market returns far more than the difference between low-cost fund expense ratios. The discussion covers tax-efficient investing, asset location, ETFs versus mutual funds, dividend taxation, capital gains, and why investors should pay more attention to portfolio design than chasing the lowest possible expense ratio. They also dissect a highly tax-inefficient YieldMax fund tied to MicroStrategy and Bitcoin, illustrating how taxes and poor fund structure can devastate returns. Listener questions cover Morningstar’s acquisition of CRSP indexes and whether it threatens Vanguard investors, plus whether a retiree working part-time can contribute earned income to a Roth IRA.0:05 Big-picture investing versus obsessing over tiny details0:39 Why fund expense ratios matter less than most investors think2:06 Jason Zweig’s research on taxes reducing long-term market returns3:20 How taxes often outweigh fund expense differences4:06 Qualified dividends versus ordinary income taxation5:03 Why investors should pay attention to after-tax returns5:40 YieldMax funds and the hidden cost of tax inefficiency7:19 The dangers of exotic income-focused ETFs7:48 Why ETFs can be more tax-efficient than mutual funds9:15 Tax knowledge as a critical investing skill10:30 Asset location: where stocks and bonds belong11:20 The YieldMax MicroStrategy fund and Bitcoin losses11:58 The truly important parts of financial planning13:15 Listener question from Longmont, Colorado14:17 Morningstar, CRSP indexes, and Vanguard concerns16:00 Why market-cap indexes are unlikely to be manipulated17:16 Morningstar ratings and conflicts of interest discussion17:58 Thoughts on the military-industrial complex19:23 UFL football, soccer, and sports tangents20:47 Listener question about Roth IRA contributions from part-time work21:30 Filing thresholds and earned income requirements for Roth IRAs23:21 Listener questions, voice submissions, and website tools24:08 AI voices and synthetic Don McDonald25:59 Romper Room memories and closing banterQuestions? Comments? Click!
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Older and More Aggressive?
1w ago00:27:28Tap to summarizeNOTE: This episode was accidentally uploaded as yesterday's podcast. To make the information match, the correct podcast for 6/16 has been uploaded in yesterday's place. If you heard this episode yesterday, please check out the newest episode in the June 16th podcast preceding this one. Sorry for the error.Don and Tom take on the latest attempt to reinvent retirement investing: the claim that retirees should hold 90% stocks and just 10% bonds. They explain why focusing on recent stock returns ignores both history and human behavior, discuss the role bonds play in managing risk and retirement income, and remind listeners that successful investing is about meeting your goals—not maximizing returns at any cost. They also answer a listener question about claiming Social Security early versus waiting until age 70 and revisit the importance of maintaining exposure to emerging markets despite their volatility.0:12 The newest retirement “better mousetrap”: 90% stocks, 10% bonds1:48 Bob Pozen’s argument for aggressive retirement portfolios3:01 Why 10-year return data can be misleading4:16 The psychology of large portfolio losses5:42 Bonds are not stocks: understanding the difference7:37 How fixed income supports retirement withdrawals8:22 Why retirees should know their actual asset allocation10:04 Taking only the risk you need to take12:25 Remembering how investors felt in 2000, 2008, and 202213:33 Using the Talking Real Money risk quiz14:27 Summer request for listener questions15:31 Listener Scott asks about claiming Social Security early17:07 Why delaying Social Security can still make sense18:32 The value of Social Security’s guaranteed increase20:11 Risks of assuming stock market returns will cooperate21:55 Why contrarian retirement advice attracts attention22:25 The overlooked role of emerging markets23:50 Why emerging markets belong in diversified portfolios24:30 The risks and rewards of global diversificationQuestions? Comments? Click!
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Better Income?
1w ago00:30:00Tap to summarizeShould retirees live off dividends and bond interest, or use a total return strategy? Don and Tom tackle one of the most persistent myths in retirement investing: that dividend-paying stocks create safer retirement income. They explain why dividends are not “free money,” how dividend-focused portfolios can create hidden risks, and why most academic research favors a diversified total return approach. The conversation explores dividend traps, covered-call income funds, sustainable withdrawal strategies, and the importance of diversification. They also respond to a listener defending Robinhood’s platform, debate gamification in investing, and discuss Philadelphia’s new automatic retirement savings program designed to help workers without employer-sponsored plans.0:05 Introduction: Dividend income vs. total return investing1:44 Why retirees are attracted to dividend-focused portfolios2:19 What a total return strategy actually means3:37 The appeal of predictable dividend income4:55 High-yield ETFs and the risks behind the payouts5:03 Why dividends are not free money6:10 Larry Swedroe’s argument: dividends are not income6:27 Understanding the dividend trap7:05 Extreme dividend yield example: GMEX Robotics8:35 YieldMax and triple-digit yields9:44 Why academics favor total return strategies10:48 Rebalancing as an income source in retirement11:43 The hidden risks of income-focused products13:30 Bridge-playing and retirement banter14:21 How listeners can submit questions15:12 Listener question: Is Robinhood getting unfair criticism?16:13 Robinhood, gamification, and investor behavior18:18 Why “stodgy” may be good for money management19:53 Philadelphia’s new retirement savings initiative20:45 Automatic enrollment and retirement success22:30 Why saving must be made easy23:28 Free portfolio reviews at Appella24:21 Discussion of The Line Uncrossed26:47 Family history and future book possibilitiesQuestions? Comments? Click!
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Advice Evolution
1w ago00:37:11Tap to summarizeDon takes listeners on a journey through nearly four decades of investment advice, explaining how his thinking evolved from recommending active mutual funds in the 1980s to embracing index funds, factor investing, and eventually ETFs. Along the way, he and Tom discuss Vanguard’s rise, Don’s early relationship with Paul Merriman, the emergence of Dimensional Fund Advisors and Avantis, and why their recommendations have changed over time. They also address listener skepticism about fund recommendations, compare Avantis and Vanguard products, answer a tax-efficient portfolio rebalancing question from a retired couple, and debunk a marketing pitch for “layered income portfolios.”0:08 Don shares the story of his early days giving investment advice from Leadville, Colorado2:56 The active management era and why great fund managers were once considered essential3:52 Vanguard’s early growth and the gradual acceptance of index investing5:38 Don discusses Vanguard sponsoring his radio show and maintaining disclosure transparency6:55 Paul Merriman introduces factor investing and Fama-French research9:10 Early Dimensional Fund Advisors portfolios and advisor-only access10:56 The rise of ETFs, Dimensional’s hesitation, and Avantis’ origins11:23 The 2010 ETF flash crash and why Tom and Don were initially cautious13:29 Why factor investing remains compelling despite uncertain future returns14:20 Addressing listener skepticism about Avantis recommendations16:07 Comparing AVUV and Vanguard VBR small-cap value funds17:44 Comparing AVGE and Vanguard VT global equity funds19:15 Clarifying compensation, conflicts of interest, and transparency21:27 Listener Anton asks about tax-efficient portfolio rebalancing in retirement26:03 Why holding bonds inside IRAs can improve tax efficiency27:23 Discussion of Roth conversion strategies and tax considerations30:20 Listener asks about “Layered Income Portfolios”31:05 Why income portfolio marketing pitches are often more sales than substanceQuestions? Comments? Click!
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Fewer Questions
2w ago00:23:36Tap to summarizeDon answers a diverse collection of listener questions covering Roth conversions, indexed annuities, emergency fund management, TSP contributions, inherited money, and portfolio construction. He delivers a forceful warning about indexed annuities and commission-driven insurance sales after one listener considers using an annuity bonus to offset Roth conversion taxes. Other questions explore whether short-term bond funds belong inside a Roth IRA, how much attention investors should pay to taxes, investing a potential $200,000 windfall, Roth versus traditional TSP contributions, and Paul Merriman’s popular Two-Fund for Life strategy. Along the way, Don shares his appreciation for readers of The Line Uncrossed and reminds listeners how to submit questions through the new Talking Real Money website.0:05 Summer question slowdown, Friday Q&A format, and submitting questions through the new website1:41 Listener asks about using an indexed annuity bonus to help fund a Roth conversion3:14 Why indexed annuities are often misleading and how insurance commissions create conflicts5:01 The risks of moving an entire retirement portfolio to cash at retirement6:30 Why a comprehensive fiduciary financial plan may be essential for this listener8:16 Question about holding VFSTX as part of an emergency fund strategy10:36 Why taxes are often a minor concern compared with investment allocation11:03 Why a short-term bond fund may not belong inside a 42-year-old’s Roth IRA12:17 Balancing growth, risk tolerance, and liquidity needs13:22 TSP lifecycle funds, Roth contributions, and planning for a possible $200,000 windfall15:03 Separating travel money from long-term investment assets16:09 Paul Merriman’s Two-Fund for Life strategy17:38 The role of small-cap value funds alongside target-date funds18:13 Fama-French factor investing and the tradeoff between simplicity and optimization19:15 Closing thoughts on listener questions and participation20:26 What makes a fiduciary advisor different from a commissioned salesperson21:13 Update on The Line Uncrossed and request for listener reviewsQuestions? Comments? Click!
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How Bonds Work
2w ago00:28:17Tap to summarizeDon and Tom tackle rising bond yields and the anxiety they create for investors, explaining why higher bond yields mean lower bond prices and why recent moves in long-term Treasury rates have sparked comparisons to the period before the 2008 financial crisis. They discuss inflation fears, interest rate policy, and why investors should be cautious about reading too much into bond market movements as predictors of future stock returns. The conversation reinforces the role of bonds as portfolio stabilizers rather than return generators, particularly for retirees. They also answer a listener question about covered-call ETFs, explaining how option premiums create income, why the strategy isn’t “magic money,” and the tradeoffs between yield, complexity, and risk. The episode closes with a correction involving Robert Wagner and Robert Conrad and a humorous detour into reverse-mortgage celebrity spokespeople.0:05 Bond investing versus “bondage” and why bonds are suddenly making headlines1:07 Rising Treasury yields and concerns about the bond market2:30 Why investors compare today’s bond yields to conditions before 20083:00 Bond prices, bond yields, and the inverse relationship between them3:51 Inflation fears, energy prices, and their impact on bonds5:50 Global bond market pressures and rising yields in Britain7:06 Federal Reserve rate expectations and inflation control7:51 Lessons from the bond market collapse of 20228:36 Can bond market activity predict future recessions or market declines?10:06 Why geopolitical events often fail as market-timing signals10:31 Why own bonds when long-term returns have been disappointing?11:03 The role of bonds in diversification and retirement portfolios12:06 Using bonds as a spending reserve during stock market declines13:07 Listener question: How covered-call ETFs generate income14:18 Covered-call basics and selling options against stocks17:26 Risks, costs, and limitations of covered-call strategies19:38 Evaluating JEPI and the tradeoff between yield and volatility21:22 Listener correction: Robert Wagner versus Robert Conrad24:01 Reverse-mortgage spokespeople and celebrity rankings25:34 Why making a top-five list may be life’s greatest achievementQuestions? Comments? Click!
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Hot IPOs, Cold Returns?
2w ago00:28:14Tap to summarizeDon and Tom examine the coming wave of blockbuster IPOs, including rumored offerings from SpaceX, Anthropic, and OpenAI, and explain why investor excitement often leads to disappointing results. Drawing on research from Dimensional Fund Advisors and examples such as Uber, Facebook, and Groupon, they discuss the historical underperformance of IPOs and the dangers of buying into hype. They then answer a listener’s question about assets-under-management fees, explaining the broader planning, tax, behavioral, and retirement services provided by fiduciary advisors beyond portfolio construction. The episode concludes with a look at the growing number of highly speculative ETFs, including UFO-themed and meme-stock funds, and a warning that investors should focus on diversification and discipline rather than chasing the latest financial product.0:05 Summer IPO mania: SpaceX, Anthropic, OpenAI, and the hype machine1:24 SpaceX’s massive valuation and why investors are excited3:05 Anthropic and OpenAI join the trillion-dollar IPO conversation4:29 Comparing today’s IPO wave to the dot-com boom5:09 Why hot IPOs are usually a bad investment6:27 Dimensional research on IPO underperformance and liquidity concerns7:51 Uber, Facebook, Groupon, and other IPO cautionary tales8:50 Why even great companies can be poor investments at the wrong price9:45 Why disciplined firms delay adding IPOs to portfolios10:59 How to submit questions to Talking Real Money13:17 Listener question: Is a 1% AUM fee really worth it?15:20 What advisors actually do beyond portfolio management16:44 Vanguard’s research on advisor value17:12 Why large portfolios shouldn’t pay a flat 1% on all assets18:24 The emotional and behavioral benefits of professional advice20:29 How advisors help investors stay diversified21:45 The explosion of bizarre new ETFs22:49 UFO ETFs, meme-stock funds, and speculative product launches25:05 Why investors should be skeptical of niche ETFs and high feesQuestions? Comments? Click!
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What is Risk?
2w ago00:29:10Tap to summarizeDon and Tom explore the difference between smart risk and dumb risk in investing, sparked by new survey data showing younger investors increasingly believe they must take big risks to achieve their financial goals. They discuss the rise in stock trading, options speculation, and meme-stock behavior, contrasting those activities with evidence-based risks such as broad stock market investing, factor tilts, and maintaining efficient use of cash. They also answer a listener question from a recently retired investor concerned about market valuations and inflation, discussing small-value tilts, bond allocations, and the role of TIPS. Along the way, they wander into Roman and Han Dynasty history, retirement boredom, Don’s Civil War novel, podcast economics, and the launch of the newly redesigned Talking Real Money website.0:05 Podcasting economics, removing ads, and the realities of making money from podcasts2:34 Why investors believe they need to take bigger risks to reach financial goals4:26 The growth of indexing and the shift away from active investing4:59 FINRA survey shows younger investors embracing options and speculative trading6:25 Smart risk versus dumb risk and why experience changes risk perception7:04 Options, IPOs, hot stocks, crypto, and other forms of speculative risk8:07 Research on options trading success rates and why most traders lose money8:48 Individual stocks, market timing, and sector bets that historically have not paid off10:47 Risks that may be worth taking, including all-stock portfolios for younger investors11:22 The long-term case for owning the global economy through diversified stock funds11:55 Small-cap, value, profitability, and momentum factor tilts12:37 The hidden cost of idle cash and improving returns through better cash management13:42 Why inflation is guaranteed to beat most traditional bank savings accounts14:59 Roman and Han Dynasty history and what it says about long-term economic growth15:42 The new Talking Real Money website and easier ways to submit questions17:34 Listener question from a 58-year-old retiree using a Boglehead four-fund portfolio19:15 Whether adding a small-value tilt makes sense in retirement20:41 Thoughts on bond funds, TIPS, and inflation protection22:02 Short-term Treasury ETFs versus high-yield savings accounts23:11 Avoiding emotional reactions to market valuations24:03 Retirement longevity risk and planning for a potentially decades-long retirement24:52 Don discusses researching and writing The Line Uncrossed27:32 Meet-an-Advisor invitation and how the free portfolio review process worksQuestions? Comments? Click!
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Not Bogle's Vanguard
2w ago00:34:25Tap to summarizeDon and Tom question whether the investment industry—and increasingly Vanguard—keeps creating new products simply to stay relevant rather than solve real investor problems. They critique Vanguard’s new Target Retirement Lifetime Income Fund, which combines a target-date fund with an annuity, arguing that it sacrifices liquidity, introduces inflation risk, and obscures costs. They also take aim at Vanguard’s new Active/Passive Model Portfolio Series, suggesting it adds unnecessary complexity and market-timing assumptions to what should be a straightforward indexing approach. Listener questions cover the risks of holding 72% of retirement assets in an ESOP and whether a military family should replace a simple Schwab index-fund portfolio for their two-year-old daughter with AVGE. The episode closes with a plug for The Line Uncrossed and a discussion of the real-life Civil War experiences that inspired the novel.0:12 Do investors really need new products and new ideas?2:11 Vanguard’s Target Retirement Lifetime Income Fund and annuities in target-date funds4:29 Liquidity, inflation risk, and the tradeoffs of guaranteed retirement income7:44 Why immediate annuities often take years just to return your own principal9:16 Morningstar’s skepticism of guaranteed-income retirement products10:46 Vanguard’s new Dynamic Active Passive Model Portfolio Series12:42 Are active/passive hybrid portfolios solving a real problem?13:38 Has Vanguard lost its indexing compass?15:30 New Talking Real Money website features and submitting listener questions16:12 ESOP question: 72% of retirement assets tied to employer stock17:59 The dangers of concentrated company-stock positions21:29 Understanding ESOP returns versus traditional investments24:09 Why diversification matters more than past ESOP performance26:49 Using GI Bill benefits, a 529 plan, and a UTMA to fund a child’s future28:27 AVGE versus a simple total-market index portfolio for a young child29:42 Why simplicity may be good enough for long-term investing success30:35 Discussion of The Line Uncrossed and its Civil War inspiration31:41 John B. Anderson, Andersonville Prison, and the history behind the bookQuestions? Comments? Click!
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