Our guest this episode is Ben Felix—Chief Investment Officer at PWL Capital and co-host of “The Rational Reminder” podcast. You might also know him from his popular YouTube channel where he creates meticulously researched videos on investing, financial decision-making and living a good life (although you may not recognize his stunning new hairstyle!).
In this episode Dave and Ben dive deeply into the world of investing. They cover everything from active versus passive styles to why CPP is a one-of-a-kind asset to why people underperform so badly in mutual funds and much, much more.
This is a must-listen episode featuring two of Canada’s top financial educators.
Show Notes:
00:00:00 – Intro & Disclaimer
00:00:55 – Intro to Ben Felix
00:04:25 – Ben’s New Hair
00:05:50 – Why Is It So Difficult to Beat the Market?
00:08:02 – Why It's Hard for Active Managers to Consistently Outperform
00:11:42 – “Buy the Haystack” (Passive Investing)
00:13:55 – The Market is Forward Looking
00:17:45 – Why Dave & Ben Don't Listen to Market Forecasts
00:21:46 – Dave's Only Market-Timing Story (Gone Wrong)
00:25:22 – Performance Gaps for Individual vs. Fund Performance
00:29:55 – Lump Sum vs. Dollar-Cost Averaging
00:35:18 – Everyone's Risk Tolerance is Different
00:36:56 – Countries With High Economic Growth ≠ High Stock Returns
00:41:35 – Beware of High Growth Industries & Thematic ETFs
00:46:00 – The Difference Between Investment Planning & Financial Planning
00:51:20 – How Can Everyday Canadians Get Good Financial Advice?
00:55:44 – Trust is Key in Financial Planning
00:57:26 – Why a 2% Mutual Fund Fee Is So Costly
00:59:11 – Canadian Banks
01:01:19 – Keep it Simple! Complexity Underperforms
01:04:09 – Venture Capital
01:05:42 – Can the US Market Continue to Outperform?
01:13:36 – Robo-Advisors
01:17:44 – Would Ben Ever Be a Landlord?
01:20:00 – CPP – Four Reasons Why You Should Wait to Take It
01:26:11 – Conclusion
