DCA as Implicit Conservative Allocation

In this episode of Rational Reminder, Ben Felix, Cameron Passmore, and Ben Wilson return with a classic AMA format—answering listener questions that dig deep into the behavioral and evidence-based foundations of sensible investing. From lump-sum investing to the psychology of advice, the trio blend data, humor, and clear thinking to demystify complex financial ideas. They discuss the behavioral logic behind dollar-cost averaging, why mutual funds might actually be more tax-efficient than ETFs in Canada, and whether technology could ever truly replace human financial advisors. Plus, they share their biggest investing mistakes (yes, Bitcoin makes an appearance), dissect the rise of "buffered" ETFs, and explain why chasing complexity usually costs investors more than it helps.

Key Points From This Episode:

(0:00:05) Introduction – The first episode featuring all three hosts together: Ben Felix, Cameron Passmore, and Ben Wilson. (0:44) OneDigital update: expanding evidence-based advice across Canada with new PWL partners in Halifax. (2:36) The mission in motion – bringing the "markets work and planning matters" philosophy to more Canadians. (5:29) "Finding and funding a good life" – how PWL integrates wellness and happiness into financial planning. (6:16) AMA Question 1: Lump-sum vs. dollar-cost averaging — why lump-sum wins 65% of the time. (10:05) Base rates, behavioral regret, and the real role of an advisor. (12:22) The 2020 PWL paper results and how behavioral hedging fits in. (16:10) If dollar-cost averaging feels safer, maybe your portfolio is too aggressive. (18:08) AMA Question 2: Advice for smaller portfolios — how technology, AI, and fee-only planners can fill the gap. (21:01) Can AI really replace advisors? Cameron's Waymo analogy sparks debate. (23:33) AMA Question 3: Mutual funds vs. ETFs — why in Canada, mutual funds may actually be more tax-efficient. (30:00) The Capital Gains Refund Mechanism (CGRM) explained — and why it matters. (34:31) Dimensional's Canadian funds vs. Vanguard ETFs — tax distribution data that surprises most investors. (37:40) AMA Question 4: Are discount bonds priced for tax efficiency? The evidence says no—discount bonds still win. (42:23) AMA Question 5: Biggest investment mistakes — from Bitcoin regrets to house-buying reflections. (48:15) AMA Question 6: Buffered ETFs — comfort, complexity, and why simple portfolios outperform. (53:45) Simplicity as a superpower — why "markets work" is still the most radical idea in finance. (55:27) AMA Question 7: Updating the RR model portfolio — why there's no "optimal" portfolio and simplicity wins again. (58:31) After show: Reviews, humor, and a reminder about "No Net Worth November." (1:04:15) Life offline — Cameron's reflections on quitting social media and finding clarity.

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/

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)