Navigating Tax Changes and Advisor Communities

The fifth installment of our Ask Me Anything sessions begins with the inevitable volatility of the stock market as we urge investors to remain calm amidst recent US stock declines. Similarly, we unpack the historical resilience of stock markets and offer advice for dealing with market crashes before discussing why bonds are not the best strategy for boosting returns. We examine the proposed Alberta Pension Plan, the Rational Reminder Podcast guests whose impact still ripples across PWL, how to be a PWL-style advisor, and we revisit the DFA versus Vanguard debate. We also explain why spending rules aren’t for us at PWL, the relationship between the amount to withdraw and the stock/bond allocation, and alternatives for short-term horizon investing, saving, and equities. To end, we hear feedback from Atti Ilmanen as well as reviews from listeners, but before all that, Mark McGrath shares bittersweet news! Stay tuned for an episode full of reflection, strategy, and insight.

Key Points From This Episode:

(0:01:13) The inevitability of market volatility and the historical resilience of stock markets.

(0:13:04) How to approach a volatile market and advice for dealing with a market crash. 

(0:18:06) Why bonds are not a return-enhancing strategy.

(0:21:04) A brief examination of the proposed Alberta Pension Plan.

(0:25:02) Impactful guests who have influenced how we work at PWL Capital.

(0:33:25) How to be a PWL-style advisor.

(0:35:37) Weighing Dimensional funds (DFA) against Vanguard and others. 

(0:41:57) Why spending rules aren’t really our thing. 

(0:44:56) The relationship between the amount to withdraw and the stock/bond allocation.

(0:49:50) Exploring alternatives for short-term horizon investing, saving, and equities.

(0:57:00) An important announcement from Mark!

(1:02:51) The Aftershow: feedback from Antti Ilmanen, listener reviews, and final thoughts. 

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/

Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/

Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP

Episode 248: Prof. William Goetzmann: Learning from Financial Market History — https://rationalreminder.ca/podcast/248  

Episode 100: Prof. Kenneth French: Expect the Unexpected — https://rationalreminder.ca/podcast/100 

Episode 352: Jessica Moorhouse: Everything But Money — https://rationalreminder.ca/podcast/352  

Episode 316: Andrew Chen: "Is everything I was taught about cross-sectional asset pricing wrong?!" — https://rationalreminder.ca/podcast/316 

Episode 224: Prof. Scott Cederburg: Long-Horizon Losses in Stocks, Bonds, and Bills — https://rationalreminder.ca/podcast/224 

Episode 284: Prof. Scott Cederburg: Challenging the Status Quo on Lifecycle Asset Allocation — https://rationalreminder.ca/podcast/284 

Episode 350: Scott Cederburg: A Critical Assessment of Lifecycle Investment Advice — https://rationalreminder.ca/podcast/350 

Episode 89: Wade Pfau: Safety-First: A Sensible Approach to Retirement Income Planning — https://rationalreminder.ca/podcast/89 

Episode 289: Retiring Retirement Income Myths with the Retirement Income Dream Team — https://rationalreminder.ca/podcast/289 

Episode 122: Prof. Moshe Milevsky: Solving the Retirement Equation — https://rationalreminder.ca/podcast/122 

Episode 59: Alexandra Macqueen: Financial Economics and Annuities: Rational Planning for Retirement — https://rationalreminder.ca/podcast/59 

Episode 283: When Volatility is Risk, and Introducing The Money Scope Podcast — https://rationalreminder.ca/podcast/283 

Episode 351: DFA vs. Vanguard — https://rationalreminder.ca/podcast/351 

Episode 254: David Blanchett: Regret Optimized Portfolios, and Optimal Retirement Income — https://rationalreminder.ca/podcast/254 

Episode 152: Evaluating Systematic Equity Strategies — https://rationalreminder.ca/podcast/152 

Episode 347: The Case for Index Funds — https://rationalreminder.ca/podcast/347 

Episode 281: Lifecycle Asset Allocation, and Retiring Successfully with Justin King — https://rationalreminder.ca/podcast/281 

Episode 315: An Update from Avantis with Eduardo Repetto — https://rationalreminder.ca/podcast/315 

Alberta Pension Plan — https://www.albertapensionplan.ca/ 

Financial Planning Association of Canada — https://www.fpassociation.ca/ 

Hook — https://www.imdb.com/title/tt0102057/ 

Antti Ilmanen | AQR — https://www.aqr.com/About-Us/OurFirm/Antti-Ilmanen 

Books From Today’s Episode: 

The Great Depression: A Diary — https://www.amazon.com/dp/1586489011 

Narrative Economics: How Stories Go Viral and Drive — https://www.amazon.com/dp/0691182299 

Papers From Today’s Episode: 

‘Negative Bubbles: What Happens after a Crash’ — https://ssrn.com/abstract=3038658 

‘Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice’ — https://ssrn.com/abstract=4590406  

‘Financially Sound Households Use Financial Planners, Not Transactional Advisers’ — https://www.financialplanningassociation.org/sites/default/files/2023-01/APR19%20Blanchett.pdf 

‘Finding and Funding a Good Life’ — https://pwlcapital.com/finding-and-funding-a-good-life/