The Long View

Scott Burns: The Case for a Simple Retirement Plan

Jul 2, 2024

Guest Scott Burns, a personal finance columnist, discusses the benefits of Couch Potato Investing, simplified retirement planning with low-cost index funds, importance of diversification, annuities in retirement, home equity, relocation, working in retirement, and go-to financial resources.

51:37

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Episode guests

Scott Burns

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Quick takeaways

Simplicity in investing leads to success over complexity, emphasized by Scott Burns.

Two-fund portfolio with total stock market and bond market funds is optimal for most investors.

Global diversification, including non-U.S. stocks, is crucial for long-term investment success.

Deep dives

The Evolution of Couch Potato Investing

The podcast delves into Scott Burns' transition to the minimalist buy and hold index fund strategy known as 'couch potato investing.' Burns discusses how observing smart fund managers falter despite their intelligence prompted his shift. He emphasizes that the key variable predicting mutual fund performance was the expense ratio, highlighting the efficacy of a straightforward, low-cost investment approach over complex strategies.

Simplify and Consider Annuities for Retirement

04:10

Diverse Financial Resources for Insights

02:27

Intro

2min

Simplifying Investment Strategies and Retirement Planning

25min

Exploring the Role of Annuities and Simplification in Retirement Planning

4min

Home Equity, Relocation, and Working in Retirement

15min

Exploring Personal Finance Go-To Resources

2min

Closing Remarks and Disclaimers

3min

We’re hitting pause on new episodes during this holiday week. But we wanted to resurface one of our favorite conversations of the past year—the one that Jeff Ptak and I had with author and longtime columnist Scott Burns. We hope that you’ll enjoy it, and we’ll be back with a fresh episode next week.

Our guest on the podcast today is syndicated personal finance columnist and author, Scott Burns. Scott began his career as a newspaper columnist in The Boston Herald in 1977, where he was also the financial editor. In 1985, he joined the staff of The Dallas Morning News, where his column became one of the most widely read features in the paper. Along the way, he created what he called Couch Potato Investing, which involves buying and holding a broadly diversified portfolio of low-cost index mutual funds. Scott has authored or co-authored several books, including The Coming Generational Storm and Spend ‘Til the End, both of which he co-authored with Laurence Kotlikoff. He received bachelor’s degrees in humanities and biology from the Massachusetts Institute of Technology.

Background

Bio

Couch Potato Investing

The Coming Generational Storm: What You Need to Know About America’s Economic Future, by Laurence J. Kotlikoff and Scott Burns

Spend ‘Til the End: Raising Your Living Standard in Today’s Economy and When You Retire, by Laurence J. Kotlikoff and Scott Burns

Bonds and Retirement

“Do Bonds Have a Future?” by Scott Burns, Scottburns.com, May 14, 2022.

“Scott Burns: These Four Pillars of Investing Stand the Test of Time,” by Scott Burns, Dallasnews.com, July 20, 2023.

Allan Roth

“TIPS Ladder Funds Don’t Yet Exist, but They Should,” by John Rekenthaler, Morningstar.com, June 16, 2023.

“Is America Hitting Peak Consumption?” by Scott Burns, Scottburns.com, Oct. 12, 2023.

“The Pudding Report, 2022,” by Scott Burns, Scottburns.com, Jan. 15, 2023.