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).
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Episodes
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Information Overload
Yesterday00:32:53Tap to summarizeCan keeping up with financial news actually make you a better investor—or just make you more confident about making bad decisions? Don and Tom dig into research on how markets react to news, why investors tend to overreact to splashy stories and underreact to boring numbers, and whether sophisticated traders can actually exploit those inefficiencies. Then, a caller nearing retirement asks how to build a conservative brokerage account to bridge the years before Social Security. Plus, the guys compare Avantis global ETFs with Vanguard’s Total World Stock ETF, debate the value of factor tilts, and marvel at how quickly investors can pile billions into the latest hot investment idea.00:05 Can financial news make you a better investor?00:52 The illusion of being ahead of the market01:44 Can investors profit from company news?02:42 Are markets really efficient?03:33 What 6.7 million Reuters articles reveal about news04:40 How much financial news is actually predictable?05:06 Why investing based on headlines is a fool’s errand06:18 Bad news, numbers, and investor underreaction07:06 Why investors overreact to ambiguous, high-attention news08:10 Investment strategies that ordinary investors can’t realistically use09:02 Be skeptical of your reaction to splashy news09:36 Big news isn’t always new information10:31 The factor zoo and the cost of complicated investing11:04 Can expensive strategies overcome their fees?12:28 Why diversified investors can mostly ignore the news13:32 Soccer, summer football, and Orlando’s forgotten team14:10 Listener call: Building a retirement bridge account15:00 Retirement plans, Social Security, and a future inheritance16:28 How soon will the retirement money be needed?17:10 Matching asset allocation to short-term spending needs18:04 Using bonds and cash for retirement stability19:28 Is it okay to hold bonds in a taxable brokerage account?20:43 A listener puts Don and Tom on his financial Mount Rushmore22:02 Halloween in Celebration and 1,000 pieces of candy22:46 Why did Avantis launch AVTM?23:58 AVTM versus Vanguard Total World Stock ETF24:06 Why Don and Tom prefer AVGE for a one-fund portfolio25:29 The astonishing rise of a semiconductor ETF26:45 Can VT plus AVGV replicate AVGE?27:06 Why a 20% value tilt may not be enough28:33 Factor investing, expenses, and expected returns29:30 Tom returns from Greece and is ready for callsQuestions? Comments? Click!
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Old Dad, Young Kid?
2d ago00:27:10Tap to summarizeHaving a child later in life can change far more than your sleep schedule. It can completely rewrite your retirement plan.Don and Tom explore the financial realities of becoming a parent in your late 40s or 50s, from college savings and life insurance to delayed retirement and the temptation to sacrifice your own financial future for your children. Tom brings some very personal experience to the conversation—and a few stories about being mistaken for his daughter’s grandfather.Then, a listener asks about a simple three-fund retirement portfolio, international diversification, small-cap value, Roth asset location, and when an aggressive investor should finally consider adding bonds.Plus, why the best retirement portfolio may be the one that keeps you from doing something stupid during the next bear market.00:12 Old guys, act your age—and other financial lessons01:14 Disagree with Don and Tom? Send in your argument01:57 The financial reality of becoming a parent later in life03:17 Tom became a father at 5004:11 The dangers of grocery shopping with your daughter05:21 Are older parents actually better parents?06:10 How a late child can completely change retirement plans07:28 Why retirement should come before college savings08:48 A $36,000-a-year whole life insurance quote09:08 How long does a parent really need term life insurance?10:42 Fertility costs and the financial price of parenthood11:28 Your retirement must remain the financial priority12:50 Having a child at 50 may mean working until 6813:42 What are you actually going to do in retirement?15:19 Tom reflects on raising his youngest daughter16:02 Don and Tom need more listener questions17:17 Listener portfolio review: FZROX, FZILX, and AVUV18:49 Is 50% U.S., 30% international, and 20% small value reasonable?20:01 Should high-growth assets go in a Roth IRA?20:43 When should an aggressive investor start adding bonds?21:25 Bonds may keep you from doing something stupid22:53 Remembering investor panic after 9/1123:21 How to get a free Talking Real Money portfolio analysis25:16 Why Talking Real Money is differentQuestions? Comments? Click!
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Three Ways to Wealth
3d ago00:29:50Tap to summarizeMoney Monday has arrived, and Don kicks off a new weekly series based on his book Financial Fysics. The first “law” may surprise you: according to Don, every dollar ever earned comes from just three sources—luck, theft, or work. He and Tom debate where investing belongs, why entrepreneurship remains one of the best paths to wealth, and how much luck really contributes to financial success.Then they answer a listener’s retirement planning question about whether to finance a Florida townhouse or withdraw money from a Roth IRA. Along the way they discuss Roth conversion strategy, Florida HOA reserve funds, special assessments, and why building a retirement plan should always come before deciding where the money comes from.00:00 Welcome to Money Monday00:12 A new weekly Financial Fysics series begins01:35 Why anonymous two-star book reviews are so frustrating02:40 Free Financial Fysics book giveaway03:50 Rule #1: There are only three ways to make money04:45 Luck—including investing, lotteries, and inheritance06:35 Theft, fraud, and unethical financial products07:55 Why successful investing combines work and luck10:30 How most great fortunes are actually built12:10 Entrepreneurship, risk, and creating wealth13:35 Understanding just how large a trillion dollars really is15:50 The biggest takeaway from Rule #117:15 Preview of next week’s rule: Supply and Demand18:15 Why listener questions slow down during the summer19:15 Listener Question: Should a retiree finance a Florida townhouse or withdraw money from a Roth IRA?21:10 Florida HOA reserves and avoiding expensive surprises24:30 Why retirement planning comes before choosing an account26:00 Why the Roth IRA is probably the last account to tapQuestions? Comments? Click!
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Question Onslaught
6d ago00:27:33Tap to summarizeTom’s on vacation, but the listener questions are not. In this packed Q&A episode, Don tackles one of the most common retirement dilemmas: if your Social Security and annuity income already cover your expenses, do you still need a traditional emergency fund?From there, the questions keep coming. Don weighs in on what to do with “lazy money” earning only 3%, whether a MYGA is really a better deal than a CD ladder, how to structure a taxable brokerage account for long-term growth, and where to keep nearly $300,000 set aside for a home purchase in the next two to three years.He also takes on a thoughtful question about managing a taxable portfolio for elderly in-laws who need additional income for memory care, and wraps up with a step-by-step explanation of how inherited IRA money can potentially be used to fund backdoor Roth contributions.Along the way, you’ll hear why “guaranteed” doesn’t always mean what insurance companies want you to think it means, why simplicity often beats ETF overengineering, and why liquidity still matters—even in retirement.0:05 – Intro and why Tom is getting buried in listener questions while on vacation1:14 – Don thanks listeners and mentions Apple featuring Litreading1:58 – How to send recorded questions at TalkingRealMoney.com2:16 – Question 1: Do retired investors still need a six-month emergency fund if Social Security and annuities cover expenses?3:14 – Why Don still favors stable, liquid emergency money even in retirement4:30 – Question 2: What should retirees do with “lazy money” that’s earning only about 3%?5:28 – Don’s preference for CD ladders over MYGAs and why “guaranteed” doesn’t mean risk-free7:33 – Question 3: How should a high-income investor build a long-term taxable portfolio at Vanguard?10:03 – Don’s case for simplifying with AVGE or DFAW instead of mixing multiple ETFs11:24 – Question 4: Is a five-year MYGA better than a five-year CD ladder?12:01 – Why Don still leans toward CDs despite the higher MYGA yield and tax deferral pitch14:16 – Question 5: Best place to keep $291,000 earmarked for a home purchase in two to three years14:46 – Money market vs. high-yield savings vs. CDs vs. BND for short-term house money17:04 – Question 6: How to structure a $300,000 taxable portfolio for elderly in-laws who need extra monthly income for memory care18:37 – Why Don would keep lots of liquidity, use only a little equity, and skip muni bonds in a 22% bracket20:50 – Question 7: Can inherited IRA proceeds be used to fund a backdoor Roth for both spouses?22:40 – Don’s step-by-step answer, including opening new IRAs and watching out for the pro-rata rule25:07 – Don plugs The Line Uncrossed and offers a free one-hour advisor meeting25:42 – Reminder to send questions and be patient while Tom is on vacationQuestions? Comments? Click!
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Tom Tests Don
1w ago00:28:55Tap to summarizeIn what may be our last quiz, ever, Tom turns the tables and puts Don in the hot seat with a Wall Street Journal high-school personal finance quiz—covering the Magnificent Seven, Roth IRAs, TIPS, efficient markets, yield curves, market risk, and dollar-cost averaging. Don does reasonably well, but not without protesting a dubious “debt avalanche” question and getting tangled up in a couple of accounting and risk terms. After the quiz-show nonsense, the guys tackle a listener question from Joseph in Pennsylvania: should your stock/bond allocation be based on a fixed percentage of your portfolio, or should it be driven by how many years of spending you want buffered in safer assets? Tom and Don explain why the answer depends on more than just income needs—it also depends on your emotional tolerance for volatility, your need for growth, and the role fixed income plays in helping you stay invested when markets get ugly.0:22 Tom becomes quizmaster and introduces the Wall Street Journal high-school personal finance quiz2:12 Question 1: Which stock is not part of the Magnificent Seven?3:47 Question 2: Which retirement account does not require withdrawals at a certain age?5:09 Question 3: TIPS, STRIPS, Series I bonds, and inflation-adjusted principal6:58 Question 4: Debt payoff strategies and the disputed “debt avalanche” answer9:13 Question 5: Efficient market hypothesis10:12 Question 6: What an inverted/downward-sloping yield curve says about future rates11:25 Question 7: Return on equity math and a heavily leveraged company12:56 Question 8: What it means when net present value equals zero14:44 Question 9: Why putting your emergency fund in stocks creates market risk16:52 Question 10: Unsystematic risk versus broad market risk18:57 Question 11: Dollar-cost averaging20:06 Tom and Don wrap up the quiz and revisit the “debt avalanche” controversy21:11 Listener question from Joseph in State College, Pennsylvania21:34 Should bond allocation be based on a fixed percentage or on years of spending?22:07 Risk tolerance vs. risk profile: why income needs are only part of the equation23:26 Why a 5-year spending buffer in safer assets can make sense in retirement24:13 The emotional role of bonds and fixed income during market declinesQuestions? Comments? Click!
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The Right Withdrawal Rate?
1w ago00:28:08Tap to summarizeTom and Don tackle one of retirement’s hardest questions: how much can you safely spend from your portfolio without blowing up the rest of your life? They walk through the familiar 4% rule, flexible withdrawal strategies, why a flat 10% withdrawal is usually fantasyland, and why the “right” spending rate depends heavily on your age, timeline, and tolerance for adjusting in bad markets. They also answer a listener question about a 22-year-old’s investment allocation and close with a timely discussion of the latest Social Security trust fund warning, what it actually means, and the only real ways Congress can fix it.00:12 — How much can you safely spend in retirement? Tom and Don tee up the big question: 4% rule, 5% flexible rule, or something more personalized.02:08 — Survey shocker: many people think they need 30 years of income saved before retiring comfortably.03:03 — Longevity math: how long retirement might actually last, and why that matters for withdrawal rates.04:40 — Can you really withdraw 10% a year? Tom and Don push back on overly aggressive retirement spending assumptions.05:59 — Why generic withdrawal rules fall apart in real-life retirement planning.06:25 — Every retiree needs a personalized withdrawal strategy based on their own timeline and circumstances.07:17 — Retiring at 60 vs. 70: why earlier retirement makes even “safe” withdrawal rates riskier.09:04 — Why it’s worth having a professional review your retirement withdrawal plan, even if you’ve used calculators.09:58 — The case for flexible withdrawals: spending more in strong markets and less in weak ones.10:20 — Three common retirement planning mistakes: not saving enough, not knowing your needed return, and taking the wrong amount of risk.12:16 — Listener question: a 22-year-old with $28,500 invested wants to know if his allocation makes sense.13:28 — Breaking down DFAW, VT, and VTI: overlap, diversification, and whether the portfolio is too complicated.16:21 — The bigger story: a 22-year-old already has a terrific head start on retirement savings.17:56 — Social Security update: the trust fund could run short in 2032 if nothing changes.18:37 — The only real ways to fix Social Security: raise taxes, cut benefits, or some combination of both.19:52 — Why scary Social Security headlines should not automatically push people to file early.21:22 — One possible fix: raising or removing the payroll tax cap.23:27 — The demographic problem under Social Security: too few workers supporting too many retirees.Questions? Comments? Click!
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Mom (Dad) and Money
1w ago00:28:29Tap to summarizeAs parents age, money can get more complicated—bill paying, account access, healthcare decisions, investment management, and eventually the possibility that someone else may need to step in. In this episode, Don and Tom walk through how families can start that conversation before a crisis hits. They cover when to begin talking, what adult children should know about accounts and spending, why durable powers of attorney need to be checked with custodians in advance, and the importance of reviewing wills, beneficiaries, and backup decision-makers. They also talk about the emotional side of these transitions, including independence, trust, and the danger of children projecting their own investing preferences—or financial self-interest—onto aging parents.Then they answer two listener questions: one about whether it’s time to fire an evasive advisor charging 1% plus expensive funds, and another about alternative career paths in financial planning beyond the traditional CFP route.0:05 – Intro: the hard conversation families need to have about aging and money1:00 – When parents—or you—reach the point where financial help may be needed1:56 – Tom’s family experience and the challenge of stepping in gracefully3:17 – Why families should talk early about money, spending, and where accounts are held5:24 – Account access, passwords, and why digital organization matters more than ever7:38 – Durable power of attorney: why you need one and why custodians should review it in advance9:01 – Backups for everything: POAs, wills, beneficiaries, and successor decision-makers10:02 – Why adult children should meet their parents’ financial advisor before a crisis11:07 – When a trusted advisor can help if parents don’t want children directly involved11:28 – How to approach the conversation as an adult child without expecting instant control12:28 – Don’t project your own investing style onto your parents’ retirement portfolio13:28 – The uncomfortable reality of greed and inheritance influencing family decisions13:40 – Why this belongs at the top of the planning checklist for older families14:07 – How to send your own questions to Talking Real Money14:58 – Listener question: Is it time to fire a wealth manager who won’t answer basic questions?17:15 – Don and Tom’s verdict on an advisor charging 1% while dodging accountability18:48 – Listener question: Are there good financial-planning career paths besides becoming a CFP?20:41 – The regulatory reality of giving investment advice for a fee22:32 – Relationship roles, planning roles, and the growing specialization inside advisory firmsQuestions? Comments? Click!
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It's Very Volatile!
1w ago00:38:30Tap to summarizeDon and Tom take on the latest crypto hype cycle, arguing that Bitcoin remains speculation—not a reliable store of wealth—and that putting crypto inside retirement accounts is especially dangerous. They discuss a new self-directed IRA crypto platform, the risks of private equity and alternative assets in retirement plans, and why “get rich quickly” pitches should set off alarm bells.Then they answer two listener questions. First, Mark from Ohio asks how to prepare a retirement portfolio for a likely market downturn and how withdrawals and rebalancing should work once retirement begins. Later, Doug from Utah asks whether market-linked CDs make sense compared with Treasuries and whether the “no downside” promise is worth the tradeoffs. Don and Tom explain why they dislike market-linked CDs, how bank brokers get paid to sell them, and why simpler fixed-income tools often make more sense.They wrap up with a warning about growing bank-related scam tactics and a publishing scam Don has been seeing aimed at authors.0:05 – Intro: one-star Bitcoin review and why crypto losses are hard to ignore1:16 – Bitcoin’s drop, crypto volatility, and retirement-account crypto pitches2:42 – Self-directed IRAs, IRA Financial, and the “get rich quick” problem5:27 – Why crypto, private equity, and alternative assets can be dangerous in retirement plans6:58 – Why most people bought Bitcoin: speculation, not currency utility10:29 – Hot money shifts: crypto, gold, semiconductors, and chasing momentum12:20 – Don’s bottom line on crypto as speculation vs. wealth storage13:16 – Listener question from Mark: preparing for a market downturn before retirement15:32 – Is an 80/20-ish portfolio too aggressive with retirement four years away?17:13 – Bonds vs. cash/CDs: what fixed income should do near retirement18:56 – Withdrawal strategy during a downturn and how rebalancing fits in20:46 – Listener question from Doug: market-linked CDs vs. Treasuries23:47 – Why Don and Tom dislike market-linked CDs26:42 – The danger of taking investment advice from a bank salesperson29:18 – Building Treasury and CD ladders through a brokerage instead31:23 – Banks training tellers to spot scam victims before money is lost34:04 – Don’s author scam warning: fake book clubs and fake promotional offersQuestions? Comments? Click!
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Clickbait Investing
2w ago00:38:00Tap to summarizeDon and Tom take apart a clickbait Kiplinger piece touting the “five top buy-and-hold investments to manage market volatility,” arguing that the list is a random grab-bag of recent winners rather than a coherent portfolio. They explain why the suggested mix—VOO, VXUS, a healthcare sector ETF, Apple stock, and gold—does little to reduce volatility and instead layers on concentration risk, sector bets, and performance chasing. From there, they broaden the discussion into a more useful question: where should investors actually go for trustworthy information, how should listeners think about evaluating a financial advisor, and what really matters when judging portfolio design. The back half of the episode features a thoughtful call about investing a spendthrift trust for two sons over a 12-year horizon, plus a warning that advisor performance can’t be measured by returns alone without understanding risk, asset allocation, and the planning services being delivered.0:05 Cold open, podcast intros, and Tom’s ever-growing aircraft museum1:40 Don tees up a Kiplinger clickbait article on the “five top buy-and-hold investments” for market volatility2:14 Why the article’s opening about political uncertainty and inflation could apply to almost any year3:36 The one part they agree with: long-term wealth is built by disciplined exposure to quality assets, not reacting to headlines4:53 The rise of numbered clickbait headlines and whether numbers in titles actually matter5:53 Why “stability” and “stock picks” don’t belong in the same sentence6:27 Kiplinger pick #1: VOO — fine as a broad U.S. stock fund, but hardly a volatility solution7:06 Kiplinger pick #2: VXUS — the one recommendation they think mostly holds up8:21 Kiplinger pick #3: XLV healthcare ETF — a sector bet masquerading as a defensive holding9:33 Why a healthcare sector fund lags a total-world approach while adding unnecessary concentration10:28 Kiplinger pick #4: Apple stock — and why adding a single stock you already own inside the S&P 500 makes little sense10:59 The problem with betting on one company instead of owning the economy through broad diversification12:20 Kiplinger pick #5: gold — and why recent gains don’t make it a volatility manager12:48 Gold’s long-term history, lack of fundamentals, and why its recent performance actually illustrates volatility rather than reducing it14:12 The bigger issue: how do you decide which financial publications or sources are worth trusting?15:26 Why Vanguard and Dimensional research tend to be more reliable than headline-driven finance content16:35 The real reason people click these articles: fear, underperformance anxiety, and the urge to “improve” a portfolio17:23 Why the Kiplinger portfolio is missing the one thing you’d expect in a true volatility-management portfolio: bonds18:51 Don and Tom’s plea to listeners: follow evidence-based advice rather than clickbait lists19:30 Listener call from Brian in Bremerton about investing spendthrift trusts for his sons over a 12-year horizon20:55 The challenge: balancing growth with the possibility of distributions for education, cars, weddings, or a house23:08 Don’s suggested framework: keep a cash/fixed-income reserve for near-term needs and invest the rest aggressively for growth24:48 Why a target-date fund may not be the best fit for this kind of trust structure25:37 A practical allocation idea: roughly 80/20 with a global equity fund plus a broad bond fund26:51 Brian explains that Roth IRA funding is already part of the family’s gifting and estate strategy27:32 A listener from Seoul praises the show and begs them not to turn into a “humblebrag retirement call-in show”29:49 Listener question: how do you measure whether your financial advisor is performing well?30:42 Why advisor performance should not be judged by returns alone32:11 The importance of understanding what services you’re actually paying for: planning, rebalancing, tax guidance, income strategy, and more33:11 What to examine in a portfolio besides returns: risk level, asset allocation, and whether key asset classes are missing34:11 Why even benchmark comparisons can be misleading if the portfolio isn’t properly diversified35:18 The better question: is your advisor delivering the services and portfolio design you actually need?Questions? Comments? Click!
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Another Money Quiz
2w ago00:33:40Tap to summarizeCan Tom beat the average American on a personal finance quiz?Don puts Tom in the hot seat with eight questions drawn from a financial literacy quiz developed by researchers at Stanford University and TIAA. The topics range from earning, budgeting, inflation, investing, debt, insurance, and risk to evaluating investment advice. Along the way, there’s plenty of good-natured ribbing, a debate over compounding, and a reminder that even financial professionals can stumble on carefully worded questions.Later, the guys answer listener questions about whether the small-cap value premium still exists despite the rise of private equity, and whether exotic portfolios like the “Golden Butterfly” really deserve their impressive back-tested reputations.Plus, Tom gives an enthusiastic endorsement of Don’s Civil War novel, The Line Uncrossed.00:18 – Tom faces an eight-question financial literacy quiz03:49 – Inflation versus savings: the trickiest question05:53 – Why diversification beats owning a single stock07:11 – The power—and danger—of compound interest08:50 – Insurance coverage young adults actually need09:52 – Expected value and lottery math11:10 – Appropriate investments for different ages12:40 – Why compounding may be the most important concept in investing13:39 – Which asset classes have historically produced the highest returns?16:03 – Does the small-cap value premium still exist?23:01 – Should investors trust the Golden Butterfly portfolio?26:45 – Tom’s review of The Line Uncrossed29:17 – Free meetings with Appella advisors31:11 – Blue shirts, blue eyes, and wrapping upQuestions? Comments? Click!
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