Jonathan Clements

Jonathan Clements, an expert in money and happiness, discusses the link between income and well-being, advocating for experiences over material possessions. He highlights common investment mistakes and offers a three-pronged solution. The conversation extends to retirement planning, delaying Social Security benefits, and balancing career choices for financial stability and happiness.

Christine Benz, a finance expert from Morningstar, and Dr. Bill Bernstein, a financial theorist, discuss the groundbreaking Jonathan Clements initiative aimed at funding Roth IRAs for young adults, particularly from low-income backgrounds. They emphasize the importance of teaching financial literacy and the impact of early investments on saving habits. The program's innovative approach includes a $1,000 grant for 18-year-olds, paired with comprehensive financial education. Together, they reflect on Jonathan Clements' legacy and the role of community in fostering financial responsibility.

There’s been a lot of interest in the topic of bank runs lately, and in today’s episode, we take a look at the most relevant research to help us better understand why they happen and how they can be avoided. Our conversation unpacks the 2022 Nobel prize-winning work of Douglas Diamond and Philip Dybvig and examines the three primary risks that banks need to navigate to avoid a bank run related crisis. We discuss the immense value that banks provide and how they keep the economy moving, before reflecting on how their most valuable services are inexorably tied to the risk of bank runs. You’ll also learn about the role of the media in triggering a bank run, and how the problems that arise with bank runs can be addressed through a combination of deposit insurance, bank regulation, and a diverse customer base — all of which are designed to keep depositors from panicking simultaneously. We also revisit a past conversation with Jonathan Clements, before catching up with him in real time to discuss his new book My Money Journey: How 30 People Found Financial Freedom - and You Can Too. Tune in for an in-depth look at bank runs, the value of writing your money story, and a timely reminder that when you’re making a deposit, you’re actually lending money to the bank.   Key Points From This Episode:   •    An introduction to the topic of bank runs including an overview of the Nobel prize-winning work done on the subject in 2022. (0:02:12) •    The three primary risks you need to manage as a bank in order to be a successful business. (0:07:28) •    Why liquidity, illiquidity, and duration risk can pose a problem, even for healthy banks. (0:12:47) •    How news stories can create unwarranted panic and cause a bank run, even if a bank isn’t experiencing problems. (0:16:02) •    The multiple equilibria of banks as outlined in the Diamond and Dybvig paper. (0:16:31) •    How deposit insurance can function as a solution, at least in part, to bank runs. (0:19:34) •    What the Diamond and Dybvig paper teaches us about the Silicon Valley Bank (SVB) bank run. (0:21:35) •    The difference between households and banks, and the lessons households can learn from the narrative around bank runs. (0:22:59) •    A quick recap of our conversation with Jonathan Clements and a review of his new book My Money Journey: How 30 People Found Financial Freedom - and You Can Too. (0:27:16) •    We welcome Jonathan Clements back onto the show to discuss his new book and why he wrote it. (0:32:00) •    What readers can expect to learn from Jonathan’s book, like the impact parents have on your financial beliefs, and what inspires people to reassess their finances. (0:34:31) •    The impact of early habits on our finances. (0:38:36) •    Jonathan’s insights into the financial service industry, its complexity, and how our risk tolerance can shift over time. (0:40:19) •    Why regret in financial decision-making is virtually unavoidable and the value of writing your money story. (0:44:22) •    Past and upcoming meetups, feedback from our listeners, and a reminder of our 23 in 23 Reading Challenge. (0:47:42)       Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-247-bank-runs-plus-jonathan-clements-on-my-money-journey-episode-discussion/22878   Book From Today’s Episode: My Money Journey: How 30 people found financial freedom - and you can too — https://amzn.to/439D5Hw   Links From Today’s Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.  Rational Reminder Website — https://rationalreminder.ca/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Jonathan Clements on Twitter — https://twitter.com/clementsmoney Jonathan Clements on LinkedIn —https://www.linkedin.com/in/jonathanclements Jonathan Clements on Facebook — https://www.facebook.com/ClementsMoney Jonathan Clements — http://HumbleDollar.com Episode 55: Jonathan Clements — https://rationalreminder.ca/podcast/55 'Bank Runs, Deposit Insurance, and Liquidity' — https://www.journals.uchicago.edu/doi/10.1086/261155 'Liquidity Risk, Liquidity Creation, and Financial Fragility: A Theory of Banking' — https://www.jstor.org/stable/10.1086/319552 'Why didn't Canada have a banking crisis in 2008 (or in 1930, or 1907, or . . .)' — https://www.jstor.org/stable/43910017 'Long-Horizon Losses in Stocks, Bonds, and Bills: Evidence from a Broad Sample of Developed Markets' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3964908  

Personal finance can seem intimidating, but the reality is it’s pretty basic — save more than you spend, find ways to earn more, invest for the long-term, and protect your assets. But if personal finance is so easy, why do so many people screw it up?My guest today has spent his career exploring this topic. His name is Jonathan Clements and he’s been The Wall Street Journal’s personal finance columnist for years. During his writing career, he’s also published several popular personal finance books including "The Little Book of Main Street Money." In his latest book, "How to Think About Money," Jonathan distills decades of personal finance experience into punchy, insightful, and action-oriented advice.Today on the show, Jonathan and I discuss the most common money mistakes people make and the psychological biases that cause us to make them. Jonathan then shares research-backed advice on how money can buy you happiness…and also misery. Just depends on how you use it. He then delves into brass tacks tips on how to save for retirement no matter how old you are, how to overcome your psychological biases so you don’t make stupid money mistakes, and why focusing on not losing money will help you have more money in the long run. Lots of actionable advice to enhance your finances in this episode.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Jonathan Clements, a veteran personal finance columnist and founder of HumbleDollar, shares profound insights after his stage 4 lung cancer diagnosis. He discusses the emotional impact of money on life satisfaction and the importance of mindfulness. Clements delves into strategies for navigating financial legacy, urging open conversations about estate planning. He reflects on investor psychology during market downturns and emphasizes living meaningfully, finding beauty in everyday moments despite adversity.

Jonathan Clements, a personal finance expert, shares impactful lessons following his terminal cancer diagnosis. He discusses how this life-altering event reshaped his financial planning, emphasizing the importance of preparing for the future to ease loved ones' burdens. Clements highlights unseen financial risks and the need for diversification in the face of health challenges. He also advocates for a holistic approach to finances, blending personal values with practical strategies, and encourages open discussions about money to foster gratitude and stronger relationships.

Jonathan Clements, a financial writer and founder of HumbleDollar.com, candidly discusses his battle with terminal lung cancer. He emphasizes the importance of proactive financial planning and open conversations about death, urging listeners to navigate the emotional complexities of mortality while securing their loved ones' futures. With personal anecdotes and practical advice, Clements highlights the need for clear communication about posthumous wishes and the significance of preparing financial affairs to lighten the burden on heirs.

Join former Wall Street Journal columnist Jonathan Clements, current columnist Jason Zweig, and Morningstar's Christine Benz as they explore the Jonathan Clements Getting Going on Savings Initiative. They discuss empowering youth with financial education through Roth IRAs and highlight the need for family conversations about money. The trio reflects on their personal experiences, the emotional aspects of retirement, and defining a 'rich life.' With insights from Clements' new book, they inspire listeners to align finances with personal fulfillment.

Jonathan Clements, founder and editor of HumbleDollar and a former Wall Street Journal columnist, opens up about his recent stage four lung cancer diagnosis, sharing insights on coping with uncertainty and cherishing small pleasures. He discusses the emotional rewards of home renovations and the complexities of balancing comfort with legacy planning. Clements also emphasizes the importance of financial literacy beyond mere investments and advocates for mentorship to empower younger investors, all while navigating his own journey with health and finances.

Jonathan Clements, a personal finance expert, joins Greg McBride from Bankrate.com and Doug Cote of Voya Investment Management to delve into the Financial Independence Retire Early (FIRE) movement. They discuss its appeal and the importance of having goals beyond just retirement. The conversation also touches on the rising ATM fees and the need for smart financial management in today's market. With insights into corporate earnings and investment strategies, they explore how to navigate financial challenges and opportunities.