Episode 337 - 2024 Year-End AMA
The Rational Reminder Podcast
Navigating Corporate Class Funds and Tax Efficiency
This chapter explores the intricacies of corporate class funds in Canada, weighing their tax efficiency against traditional mutual funds while addressing the potential pitfalls such as high fees and tax liabilities. It also emphasizes the importance of cohesive portfolio construction and asset allocation strategies across different investment accounts, encouraging diversification beyond conventional benchmarks.
As the year draws to a close, the Rational Reminder Podcast team delivers an engaging year-end special with a unique twist. Rather than curating clips from previous episodes, Ben Felix, Dan Bortolotti, and Mark McGrath dive into an AMA-style episode, answering listener-submitted questions. They share reflections on lessons learned, highlight impactful community discussions, and provide thoughtful takes on investing strategies, personal growth, and financial planning. They discuss their evolving views on human capital integration, portfolio diversification, and the importance of behavioural finance in long-term planning. They also revisit key themes from earlier episodes and offer heartfelt thank-yous to their team and audience for a remarkable year. Join us for a mix of practical insights, entertaining banter, and a glimpse into what’s ahead for the Rational Reminder Podcast. Don’t miss this memorable year-end wrap-up!
Key Points From This Episode:
(0:00:00) Episode format and a thank you to the PWL Capital team, producers, and audience.
(0:05:14) Influential community discussions and their insights on efficient ETF design.
(0:10:14) Hear the reason behind Ben's decision to shave his head for so long.
(0:13:51) How to integrate human capital into useful financial planning and strategy.
(0:19:33) They share their thoughts on the evolving definition of success in life and work.
(0:23:33) Their top finance and investment book recommendations for retail investors.
(0:28:50) Uncover the nuances of assessing a value premium within an ETF.
(0:30:46) How real-life events shaped their approach to providing guidance and financial advice.
(0:37:18) Return stacking and a comparison of Dimensional's and Avantis' vector portfolios.
(0:41:05) Risks of bonds, bills, and credit and why past returns do not guarantee future results.
(0:48:27) Explore the complexities of tax-efficient ETFs and Thrift Savings Plan (TSP) options.
(0:56:50) Balancing long-term investment assumptions with short-term market dynamics.
(1:03:23) We debate the U.S. market's valuation and the implications for asset allocation.
(1:10:15) Hard financial lessons from Ben, Mark, and Dan's investment journeys.
(1:16:29) Unpack the pros and cons of life insurance, infinite banking, and whole life insurance.
(1:28:35) Aftershow: reviews, Marks's beard, a final thank you, and more.
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/
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/
Canadian Couch Potato — https://canadiancouchpotato.com/
The Podcast Consultant — https://thepodcastconsultant.com/
Morgan Housel — https://www.morganhousel.com
Dimensional Fund Advisors — https://dimensional.com/
Avantis — https://avantisfi.com/
Dan Solin — https://danielsolin.com/
Global X — https://globalxetfs.com/
Episode 138: Factor Investing in Fixed Income — https://rationalreminder.ca/podcast/138
Episode 163: Dave Plecha — https://rationalreminder.ca/podcast/163
Episode 198: Gerard O’Reilly — https://rationalreminder.ca/podcast/198
Episode 316: Andrew Chen — https://rationalreminder.ca/podcast/316
Episode 332: Randolph Cohen & Michael Green — https://rationalreminder.ca/podcast/332
Books From Today’s Episode:
Are You a Stock or a Bond? — https://amazon.com/Are-You-Stock-Bond-Financial/dp/0133115291
Reboot Your Portfolio — https://amazon.com/Reboot-Your-Portfolio-Successful-Investing-ebook/dp/B09P4G9LR7
Wealthier — https://amazon.com/Wealthier-Investing-Field-Guide-Millennials-ebook/dp/B0CX2VD1CW
The Psychology of Money — https://amazon.com/Psychology-Money-Timeless-lessons-happiness/dp/0857197681
Thinking, Fast and Slow — https://amazon.com/Thinking-Fast-Slow-Daniel-Kahneman/dp/0374533555
A Random Walk Down Wall Street — https://amazon.com/Random-Walk-Down-Wall-Street/dp/0393330338/
Winning the Loser's Game — https://amazon.com/Winning-Losers-Game-Strategies-Successful/dp/1264258461/
Wealth Planning Strategies for Canadians 2024 — https://amazon.ca/Wealth-Planning-Strategies-Canadians-2024/dp/166871504X
Becoming Your Own Banker — https://amazon.com/Becoming-Your-Own-Banker-Infinite/dp/B001NZO1DS
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Papers From Today’s Episode:
'Who Are the Value and Growth Investors?' — https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.12473
'Portfolios for Long-Term Investors' — https://academic.oup.com/rof/article/26/1/1/6484661
'Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice' — https://dx.doi.org/10.2139/ssrn.4590406
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