

Episode 63: Dr. William Bernstein on TIPS, asset allocation, and four deep risks, host Rick Ferri
21 snips Oct 29, 2023
Dr. William Bernstein, retired neurologist and investment adviser, discusses Treasury Inflation Protected Securities (TIPS), asset allocation, four deep risks, and the cost of income inequality with host Rick Ferri. They also explore the four pillars of investing, measuring the equity risk premium, wealth and trust factors, and give personal finance advice for an Uber driver. The podcast dispels myths about individual stock investors outperforming the market and promotes Bogleheads platforms and resources.
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Alaska Sabbatical
- Rick Ferri recounts his 20,000-mile sabbatical to Alaska and the Yukon.
- He describes the pristine environment and vast beauty of the untouched wilderness.
Using TIPS for Retirement
- Use TIPS to match assets and liabilities for retirement planning.
- Buy TIPS maturing throughout retirement or create a bond ladder with a mix of TIPS funds.
Equity Risk Premium
- The equity risk premium, the excess return of stocks over risk-free assets, is approximately 4%.
- Consider real returns using TIPS, currently at 2.5%, to better estimate stock market returns.