Episode 339 - 2024 Year-End AMA Pt 2
The Rational Reminder Podcast
Navigating Overconfidence in Investing
This chapter explores the pitfalls of overconfidence in financial decision-making, particularly how impulsive actions can harm investors. It highlights the importance of a disciplined investment strategy, using relatable examples such as soccer penalty kicks to illustrate hasty decisions. The discussion further examines the balance of stocks and bonds in portfolio management, while stressing the need for financial literacy to avoid common mistakes.
In our second episode of 2025, Ben, Mark, and Dan continue to work through the listener questions we received in our 2024 AMA. We begin with home country biases and how to continue to grow your money from an already diversified portfolio before comparing the benefits of stock trading strategies and EFT portfolio strategies. Then, we discuss the impact of volatile blockchains on the wider securities market, whether you need to adjust your investment strategy when new tariffs are imposed, the ins and outs of terminal wealth management, the benefits of focusing on a total market index, and the personal finance perspective of renting versus buying in Canada. To end, we explore the best practices for increasing risk exposure, take a closer look at FIRE (financial impendence, retire early), assess investing behavioural biases and misconceptions that still pose a threat to even literate investors, and learn about how the Rational Reminder podcast is changing the lives of our listeners.
Key Points From This Episode:
(0:01:59) Whether owning a home affects your home country bias and financial asset portfolio.
(0:02:43) The correlation between the economic risks of housing and the local stock market.
(0:07:21) How to keep growing your money if you already have a diversified portfolio.
(0:14:16) When to split your portfolio, and stock trading strategy versus EFT portfolio strategy.
(0:22:20) The impact of Bitcoin and volatile blockchains on the wider securities market.
(0:24:46) Adapting your investment strategy after the introduction or increase of trading tariffs.
(0:26:20) Maxing out tax-free savings accounts for non-incorporated high-income professionals.
(0:33:22) Switching to a total market index to avoid index funds that overvalue the market.
(0:37:48) Renting versus buying in Canada, from a personal finance perspective.
(0:42:39) The best practices for increasing risk exposure.
(0:51:19) Unpacking FIRE – financial independence, retire early.
(0:56:05) Balancing allocations between traditional retirement savings vehicles and real estate.
(1:00:56) Investing behavioural biases and misconceptions that harm even literate investors.
(1:09:24) Whether bonds actually exist, and everything we’ve changed our minds about in 2024.
(1:19:21) Shaping worldviews, on-demand information, and other highlights from your reviews.
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
Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/
Peter Mladina on LinkedIn — https://www.linkedin.com/in/peter-mladina-177194125/
Benjamin Felix Quote on X — https://x.com/benjaminwfelix/status/1760356591000301739
Robb Engen — https://boomerandecho.com/robb-engen/
Renaissance Technologies — https://www.rentec.com/Home.action?index=true
Long Blockchain Corp — https://cryptohead.io/acquisitions/long-blockchain/
Nick Maggiulli on X — https://x.com/dollarsanddata
Canadian Couch Potato Podcast — https://canadiancouchpotato.com/podcast/
Bitcoin Uncensored — https://www.podchaser.com/podcasts/bitcoin-uncensored-463350
Episode 335 - What About Warren Buffett — https://rationalreminder.ca/podcast/335
Episode 332: Randolph Cohen & Michael Green — https://rationalreminder.ca/podcast/332
Papers From Today’s Episode:
'Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice' — https://dx.doi.org/10.2139/ssrn.4590406
‘Action Bias among Elite Soccer Goalkeepers: The Case of Penalty Kicks’ — https://www.researchgate.net/publication/222676583_Action_Bias_among_Elite_Soccer_Goalkeepers_The_Case_of_Penalty_Kicks
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