The Rational Reminder Podcast

The hype to invest in high-cap tech companies is deafening. In this episode, we share what you need to know before buying FANG company stocks. Although FANG is the popular term, our analysis includes Facebook, Apple, Amazon, Alphabet, Tesla, and Microsoft — so it’s closer to the less slick-sounding FAAATM. Before we dive into that, we talk about the show’s books of the week and how ETFs and mutual funds have been performing compared to July of 2019. We then set the scene for how FANG businesses fit into the market-place and how we measure their success by their size and relative price. As these are the companies that are changing the fabric of society, we discuss how it is fitting that companies like Apple represent a whopping 6% of the US market. To put this in historical context, we explore AT&T’s past and how market-share tends to reflect the level of innovation introduced by businesses. The upshot of this is that the huge market-share that FANG companies have carved out is not as new of a phenomenon as it may seem. We then unpack how stock prices are valued and the impact that expectation has on stock valuation and returns. After talking about why we might be overpaying for growth stocks, we commiserate over the pain of being a value-titled index investor at times when large-cap growth stocks dominate both the discussion and the marketplace. We round this section by touching on the US stocks’ performance compared to US treasury bills, whether you should be looking for the next Amazon, and why you need to quantitatively look at a company’s business quality. From FANG we jump into our planning topic of the week — a review of the withdrawal rules for the Registered Education Savings Plan (RESP). Near the end of the episode, we share some bad financial advice for the week courtesy of TMZ and the idea that you should start your portfolio with 100% gold. Tune in to hear more from the world of rational investing.   Key Points From This Episode: From Blackstone to Bloomberg, hear about the books of the week. [0:01:23] Why success is often driven by luck and not by ‘being the best.’ [0:06:19] Listener feedback on Assuris — the insurance industry’s insurer. [0:07:32] Comparing Canadian ETF and mutual fund performance from July 2019. [0:08:52] Introducing our investment topic; should you add FANG mega-caps to your portfolio? [0:12:37] Measuring the unreal success of the top FANG companies. [0:14:28] Contextualizing Apple’s market-share within US history. [0:16:44] Exploring AT&T’s history to unpacking flaws behind the ‘this time, it’s different’ line of thinking. [0:18:07] How developing life-changing technology can earn you high market share — until it doesn’t. [0:22:19] Understanding mega-cap stock prices and factors to consider before buying. [0:25:25] How high market expectations are linked to low stock returns. [0:27:59] The connection between paying low prices for higher stock returns. [0:31:04] Rational versus irrational views on high-growth stock prices. [0:32:13] The pain of being a value-tilted investor at times when large-cap growth stocks outperform. [0:35:36] How most US stocks trail underperform compared to US treasury bills whether you should be looking for the next Amazon. [0:37:43] Business quality and how the relative expensiveness of growth stocks is bigger than ever. [0:41:01] We dive into your planning topic on the Registered Education Savings Plan withdrawal rules. [0:45:12] What to consider before coming up with an RESP withdrawal strategy. [0:47:57] Our bad advice for the week; become the Wolf of Wall Street by reading TMZ and starting your portfolio with 100% gold. [0:51:01]

Michael Kitces is one of the world’s leading experts in financial services but is also a trusted authority in retirement planning research, and today he joins us for a brilliant conversation that covers both topics. Michael is the Head of Planning Strategy at Buckingham Wealth Partners, Co-Founder of XY Planning Network, AdvicePay, and fpPathfinder, and also hosts the much-admired Financial Advisor Success podcast. In the first section of the show, we shoot our questions about retirement planning Michael’s way, exploring sequence of returns risk and the implications it presents for spending and portfolio management through retirement. Michael weighs in on three approaches to variable spending, why people can do what they love and still retire well, and his research on the ‘rising equity glidepath’. He also speaks about why it’s normal to start saving after you hit forty, and why withdrawal policy statements can help you have a better idea of when your portfolio is in the red. This leads us into the financial services segment of the show and we start out hearing Michael compare the assets under management model to the fee for service one, and how XY Planning helps those who can’t afford the first by implementing the second. From there, we dive deeper into the limits of more affordable AUM models, Michael’s thoughts on which draw on theories of human nature and also function as an advisor underwriting how-to for investors. Toward the end of the show, Michael does an amazing job of contextualizing the merge of the brokerage and advisory sides of the financial system and what this means for investors. For all this and a closing exchange about the incredible work Michael is doing to lift standards for the industry through his podcast and more, be sure to tune in!   Key Points From This Episode: Introducing Michael Kitces, a leader in financial services and retirement planning. [0:00:15.7] Market fluctuation and how early retirement affects sequence of returns risk. [0:03:25.1] Different approaches to variable spending to deal with market fluctuation. [0:06:37.6] Lifestyle and banking habits: Why retirement spending rarely increases. [0:17:55.3] The rising equity glidepath: Inverting the conventional retirement portfolio. [0:20:57.2] How withdrawal policy statements help you know when your portfolio is in the red. [0:27:35.1] Why people don’t have to endure unhappy jobs for the sake of a good retirement. [0:34.42.7] Beating ‘learned helplessness’: Start saving in your 40s, you haven’t missed the boat. [0:43:41.6] Assets under management versus fee for service financial advisor models. [0:48:43.3] Why cheaper AUM financial advisor models can’t meet investor needs. [0:55:57.4] Limits to human sociability and how to vet a financial advisor by asking how many clients they have. [0:59:43.4] How tech has merged the brokerage and financial advice sides of financial systems and the effects of this. [1:04:30.6] Michael’s definition of success and his gratitude for the impact his work has. [1:12:02.2]

With the gold price reaching record highs, we revisit the contentious issue of whether you should add gold to your portfolio. Before mining that topic, we talk about Super Pumped: The Battle for Uber and Am I Being Too Subtle? — our book recommendations of the week. We then touch on key news stories including how the recent Apple stock split has affected its position in the Dow index. After fielding a listener question about why central banks care about deflation, we share the reasons for and against investing in gold. We discuss where gold derives its value along with the concept of the ‘golden constant’ which states that the value of gold will keep pace with inflation in the extreme long-term. Host Benjamin Felix brings in research to show why gold is a bad inflation hedge due to its short-term price volatility. He also brings in data to look at how gold performs under hyper-inflation and then speculates on how supply shock from finding new sources of gold would impact its market value. Often used as a reason to invest in gold, we provide our take on John Bogle’s statement that you should invest 5% of your portfolio in gold. Despite seeming to be a middling investment, we then talk about why so many central banks own gold. Near the end of the episode, we briefly explore the life insurance organization Assuris and which account you should draw from when buying a home. Lastly, we draw insights from this episode’s bad advice of the week. Tune in to hear more rational reminders from the investment world.   Key Points From This Episode: Media recommendations ranging from Too Much and Never Enough to Ray Donovan. [0:01:39] Updates on the model portfolios being written by Ben. [0:02:58] This week’s book recommendations: Super Pumped and Am I Being Too Subtle? [0:04:40] Dives into key stories of the week; Apple’s share split and Vanguard Investor’s trading practices. [0:09:13] Answering a listener question about why central banks care about deflation. [0:11:13] Introducing this episode’s portfolio topic; should you invest in gold? [0:13:52] An overview of the arguments for and against investing in gold. [0:15:05] How gold’s value derives from its scarcity, malleability, and symbolism. [0:15:46] Gold’s value as an industrial and collectible commodity and pricing in the ‘emotional dividend’. [0:17:18] Where the demand for gold comes from — it increases with its price. [0:20:00] The concept of the golden constant and how gold maintains its value in real terms. [0:21:23] Drawing conclusions about the value and portfolio benefits of gold from the 2013 paper, ‘The Golden Dilemma’. [0:22:31] How gold has performed in periods of hyperinflation. [0:28:19] Further unpacking the idea of a golden constant and the expectation of receiving zero return. [0:32:00] Summarising why investors are attracted to gold; it’s tangible and scarce. [0:34:50] Speculation around asteroid and ocean mining in the far future and how this might impact gold prices. [0:36:01] How central banks off-loading their gold reserves will affect the gold price. [0:38:30] Why gold returns look so good at the moment and why this can’t be trusted. [0:40:03] The paper, ‘The Long-term Returns to Durable Assets’, conclusions about the gold’s pricing. [0:41:00] Why John C. Bogle invested 5% of his portfolio in gold and why it’s not necessarily a good idea. [0:42:01] Answering why central banks hold gold in the first place. [0:43:23] Exploring Assuris — an organization protecting Canadians when their life insurance policies fail. [0:47:40] Which account to draw from when buying a home when you have equal amounts in your TFSA and RSP accounts. [0:52:30] Bad financial advice for the week; PWL Capital versus funds chosen by a big bank. [0:55:02] The importance of understanding the decision-making behind developing your portfolio. [1:04:35]

Often called a ‘once in one hundred years event’, the COVID-19 pandemic is having a profound impact on the economy. Today’s guest is Craig Alexander, Deloitte’s Chief Economist, who brings his 29 years of experience analyzing the economy to answer our questions about the marketplace. We start the conversation by exploring how the pandemic is affecting small businesses, with Craig adding insights into what the government should be doing to help. Craig discusses how the pandemic has revealed inadequacies with Canada’s employment insurance and why Canada needs to improve both its income support and its skills frameworks. A key theme in the episode, Chris presents the idea that businesses “Shouldn’t let a crisis go to waste.” As such, Chris thinks that this crisis is a chance for businesses to reassess their models, especially as certain pre-pandemic trends will continue to disrupt business. Chris also highlights the importance of high-quality childcare services to ensure both long and short-term economic recovery. From childcare, we leap to real estate before Chris provides his perspective on the interplay between the stock market and the economy. After the hosts question the value of economic forecasts, Chris makes a strong case for them, showing how they help organizations to develop plans based on several best and worst-case scenarios. Next, we ask Chris about investing in these times of economic uncertainty and if there is a risk of increased inflation in the future. Near the end of the episode, Chris talks about which industries will most likely grow in the future. Tune in to learn more from Chris’s incredible economic perspective.   Key Points From This Episode: Presenting Craig Alexander’s bona fides and the insights gained from this episode. [0:00:39] How the pandemic has impacted the economy, especially small businesses. [0:03:10] Craig talks about inadequacies in the current employment insurance system. [0:05:06] The challenge of repurposing the job market to fit the recovery landscape. [0:06:37] Reassessing business models as a way for businesses to exit the recession stronger than before. [0:07:44] Trends disrupting business that have been accelerated by the pandemic [0:08:55] Why high-quality childcare services are so important to the economy. [0:11:16] How the real estate market is faring and why Ottawa is not a good benchmark. [0:14:31] How bank policies and mortgage deferrals have impacted real estate. [0:18:40] Making a distinction between COVID-19 and post-vaccine trends [0:22:22] Why consumer debt is increasing but that the debt-to-income ratio is a poor metric [0:24:42] How the interaction between the economy and the stock market has played out. [0:28:37] What government and banks did that stabilized the stock market. [0:29:45] How economic recovery hinges on managing health risks. [0:32:04] The case for economic forecasts and their role in simulation analysis. [0:34:23] Craig highlights the level of uncertainty regarding economic futures. [00:39:15] Why uncertainty shouldn’t prevent you from making investments. [0:41:19] How the government response is geared towards preventing deflation. [00:42:52] Hear why the government's strategy won’t decrease the appetite for Canadian bonds. [0:48:03] How the pandemic is affecting some industries and which markets will see growth. [0:51:12] Chris explains why macroeconomic theories evolve based on circumstance. [0:58:06] Chris shares how he defines success and what brings him [1:03:43]

Quantitative easing is a monetary policy whereby a central bank buys government bonds or other financial assets in order to inject money into the economy to expand economic activity. But what exactly does that mean? In today’s episode, Benjamin and Cameron are going to address this topic, avoiding highly politicized aspects, like whether or not central banks should be involved in the economy in the first place, and focusing purely on the operational perspective of quantitative easing – what is it, how it works, and what the intended transmission mechanisms are. Benjamin explains what he has learned through his extensive research, from what money printing and the stock market have to do with one another, where the money for loans comes from, how central banks can influence lending rates, and the difference between regular open market operations and quantitative easing. We also cover how quantitative easing works, the relationship between bank reserves and money in the economy, and what causes inflation, as well as the effect of quantitative easing has on stock prices (if any). We also catch up on recent news stories, and Cameron takes us through five key personal finance lessons we can learn from this crisis. If you’re looking to understand quantitative easing, this episode will hopefully become a useful resource! Tune in today.   Key Points From This Episode: This week’s book of the week is Mindf*ck: Cambridge Analytica and the Plot to Break America by Canadian, Christopher Wylie [0:04:38] A chart showing the ratio of the Nasdaq 100 index divided by the Russell 2000 [0:08:22] University endowment sued for active investing by 94-year-old Clarence Herbst. [0:10:02] This was not the first time Clarence Herbst had an issue with his alma mater. [0:13:05] Multimillion-dollar mismanagement of public pension funds in Maryland, 2014. [0:13:22] Benjamin introduces the main topic, quantitative easing (QE), a central bank action. [0:14:42] What do money printing and the stock market have to do with one another? [0:17:37] You can summarize money as a social construct that facilitates economic activity. [0:20:06] As long as there are credit-worthy borrowers, banks will print money out of thin air. [0:22:28] The distinction between central banks and private banks, which interact with customers and have to monitor their net flow of money. [0:25:27] Open market operations allow a central bank to influence overnight lending rates. [0:28:30] The difference between regular open market operations and QE. [0:33:14] A couple of theories about how QE might work, like the portfolio balance theory. [0:37:42] There is no relationship between reserves and money in the economy. [0:41:11] What causes inflation? It’s not reserves! Demand for loans drives demand for loans. [0:43:07] What about the effect of QE on stock prices? We would expect a positive impact. [0:45:14] Money is this medium that facilitates economic activity and that's all it does. [0:47:40] Five key personal finance lessons we can learn from this crisis: Stocks are volatile [0:50:35] Debt is dangerous and emergency funds have a very important purpose. [0:50:35] Don’t stop spending, always prepare for the worst – disability insurance is crucial! [0:54:51] Cameron still wants to understand how fee-free trading platforms make money – nothing is for free! [0:50:35]

Dr. William Bernstein, a financial theorist and neurologist known for his influential works like The Intelligent Asset Allocator, shares his insights on investment strategies. He highlights why young investors should embrace the possibility of a bear market. The conversation delves into the psychological pitfalls of overconfidence in investing and assesses small-cap and value stocks. Bernstein also discusses the economic disparities exacerbated by the pandemic and draws intriguing parallels between his medical and financial careers.

As the expression goes, another day, another dollar. Today’s episode is a roundup of news and analysis with deeper dives into behavioural and risk-based market explanations, active management, and endowment investing models. We open with a book review of Essentialism: The Disciplined Pursuit of Less by Greg McKeown, a book that’s getting a lot of attention at the moment. Another topic that’s getting a lot of attention, we discuss how Tesla’s huge market cap growth makes it feel like it’s 1999. We also offer our opinions on why Tesla has been so highly valued despite increasing competition in the electric car market. Answering a listener question, we explore how Robinhood makes money through ‘payment for order flow’ and the debate about if this is in the retail client’s best interest. Following another listener question, we answer if the podcast suffers from confirmation bias and how you can never know the ‘why’ behind stock returns. We talk about risk versus behaviour market explanations and use sound clips from previous episodes to present views on this subject. We then discuss Yale and David Swensen’s endowment investment model, focusing on his strategy of finding uncorrelated asset classes and then hiring active managers to meet target allocations. We look at the model’s benefits and its similarities to Canada’s CCP before examining how Norway invests based on oppositional ideas of the marketplace. Near the end of the episode, we continue our conversation on spousal loans by listing more family income splitting strategies. Tune in to hear more from the financial world.   Key Points From This Episode: A quick book review of Essentialism: The Disciplined Pursuit of Less by Greg McKeown. [0:03:25] Key ideas of this book; being busy isn’t always a positive, and if you don’t prioritize your life then someone else will. [0:06:02] Why Tesla surpassing General Motors’ market cap makes it feel like it’s 1999. [0:07:32] Opinions on why Tesla has experienced such incredible growth. [0:09:06] How Robinhood makes money if they don’t charge any trade fees. [0:12:15] Discussion on whether Robinhood’s service benefits the end-user. [0:13:19] Dave Nadig’s take on Robinhood and why it’s a “tempest in a teapot.” [0:15:46] Answering the question; “does the podcast suffer from confirmation bias?” [0:17:30] How the podcast’s stance on behavioural versus risk-based explanations have softened. [0:18:38] Sound clips from previous episodes on the reasons for different stock returns. [0:21:00] Examining a paper arguing that active management can create value for investors. [0:23:10] Deep dive into our portfolio topic; Yale and the endowment investment model. [0:27:30] Why it’s so difficult to replicate David Swensen’s endowment investment success. [0:32:00] The correlation between endowment size and allocation to alternative asset classes. [0:34:30] How many endowment investment portfolios have performed poorly. [0:36:35] Differences between the Yale and Canadian endowment investment models. [0:40:15] How Norway operates the biggest wealth fund in the world. [0:45:40] How Norway’s model is completely at odds with the Yale endowment model. [0:48:20] Family income splitting opportunities in Canada that attract less tax. [0:52:00] [0:52:00] Why you should seek legal counsel when setting up family trusts and using family income splitting strategies. [1:00:05] Hear the crazy, bad financial advice of the week; Ponzi schemes are still selling. [1:06:15]

Today’s guest is Dr. Jim Stanford, Economist and Director of the Centre for Future Work and author of Economics for Everyone. We kick things off with Jim hearing his perspectives on what makes this recession unprecedented before he argues that a traditional approach to macroeconomic policy won’t be enough to augment more than a crippled and unstable recovery. This situation might hold a silver lining though and Jim sketches out the opportunity it provides for rethinking employment ethics. After weighing in on why the deficits caused by a much-needed post-war style economic reconstruction might not such a bad thing, Jim does an amazing job of explaining the connections and differences between quantitative easing and government deficit. On this topic, he talks about why fears around credit creation are centered on an outdated concept of banking, and the potential quantitative easing has for facilitating investment and economic activity in this recession rather than buying corporate assets in the secondary market. From there, we talk about wealth distribution, the inevitability of an economic system that supersedes capitalism, and the concept of the political economy. Jim gets into how issues about history, norms, culture, and power – things that don't show up in your usual supply and demand graphs – are actually crucial inputs for understanding the economy and understanding economics. Don’t miss this incredible conversation about ethics and capitalism with today’s guest.   Key Points From This Episode: Introducing Jim Stanford and his work on economics and quantitative easing. [0:00:05.3] What makes this recession unprecedented; the ‘Loch Ness Monster’ recovery. [0:03:16.2] How many of the most vulnerable groups are experiencing more job losses. 0:06:27.3] Challenges of remote work and implications that only 25-30% of jobs can be done remotely. [0:09:32.3] Impacts of social distancing on the economy, a socially constructed phenomenon. [0:12:07.7] Avoiding the Loch Ness recovery by implementing a post-war style recovery plan. [0:14:53.3] The silver lining of this crisis: putting an end to inhumane work arrangements. [0:18:38.4] Why large deficits that could come with a reconstruction might not be a problem. [0:21:02.0] Connections and differences between quantitative easing and government deficit. [0:24:30.3] Dispelling fears of credit creation inflation; how banking actually works. [0:28:14.7] The dangers of quantitative easing and how it can be better used in the recovery. [0:32:44.3] Why GDP might not be the best measure of how well an economy is doing. [0:35:49.1] Metrics that make skew wealth distribution seem less harsh than it is. [0:38:58.2] The precariousness of the bank and mining-based Canadian economy. [0:41:49.9] How Capitalism is not perpetual and examples of seeds of change. [0:46:17.3] Why the capitalist economy is political and gross inequality contradicts it. [0:50:21.8] Jim’s education, early activistic goals, and definition of success. [0:53:28.5]

With private equity investments increasing in popularity, you may feel the pressure to expand your portfolio. Today’s episode, we look at the data behind private equity returns to see if these investments add something to your portfolio that you couldn’t get elsewhere. But first, we discuss some big news — that slow-moving Dimensional Fund Advisors are entering the ETF marketplace. After looking at the implications of this move, we use a Harvard paper as our springboard into the topic of private equity. By exploring the shift in demand for private equity, the paper establishes the context for why investors, especially institutions, are seeking higher returns. Looking at research from AQR, we talk about their finding that private equity returns are overvalued, despite them being historically good investments. You’ll hear how the risks underlying private equity are obscured by a ‘return smoothing effect’ and why people are willing to overpay to get smooth returns. We examine how the gap between private and public equity returns has narrowed along with AQR’s argument that market changes have caused private equity investments to perform poorly. After AQR, we move onto a paper by Erik Stafford which shows that small-cap investing yields similar returns to private equity — with the advantage that you don’t have to pay high private equity fees. We round off the episode with a discussion on the benefits of spousal loans before talking about this week’s bad financial advice. This is a valuable episode for those wondering about adding private equity to their portfolios. Listen to find out why that might not be in your best interest.    Key Points From This Episode: Updates on our brilliant future guests — Jim Stanford and William Bernstein. [0:01:50] That Jim Stanford’s book provides an excellent view of money and banking in capitalism. [0:02:49] The big news; Dimensional Fund Advisors are entering the ETF marketplace. [0:04:50] The similarity between Avantis Investments and Dimensional Fund’s offerings. [0:06:05] Speculation on why Dimensional Fund Advisors are moving into the ETF space. [0:09:06] The benefit of ETFs — if you want out, then you have to pick up the spread [0:13:12] How ETFs might affect investor discipline and what ETF demand might look like. [0:14:06] Other Dimension news; 16 Canadian funds will get a management fee reduction. [0:15:39] Corrections to a chart on Twitter showing investors selling their equity holdings. [0:16:16] Hear about Capital and Ideology, Benjamin’s book of the week. [0:17:38] How private equity is becoming increasingly popular. [0:19:26] Why, generally, you shouldn’t include U.S ETFs in your portfolio. [0:21:20] The massive shift towards private equity investment from numerous entities. [0:24:08] How the timing has caused large institutions to look for higher returns. [0:25:33] Why expected returns from private equity were historically good and why this is no longer the case. [0:27:50] How private equity trading results in an artificial ‘return smoothing effect’. [0:29:10] That the valuation gap between private and public equity has narrowed. [0:31:40] What other mechanisms lead to an overvaluation of private equity. [0:32:28] Why IRRs, as opposed to PMEs, can be easily gamed, rendering them unreliable. [0:37:00] The historical conditions that led to high returns from private equity. [0:40:50] Comparing the expected return for public and private equity. [0:43:25] How Erik Stafford’s paper agrees that public equity risk is under-stated. [0:47:06] The difference in dispersion between private and public mutual equity funds. [0:49:30] Why private equity past performance isn’t a predictor of future returns. [0:50:55] How spousal loans allow your partner to make investments with your money. [0:54:24] The potential tax savings that result from spousal loans. [01:01:20] Why you should probably include spousal loan debt forgiveness in your will. [01:03:45] Hear the show’s bad advice of the week; the return of 90s investment ideas. [01:06:16]

Today, we get into a masterclass on retirement planning with a true expert in the field whose perspectives are distinctly evidence-based, Fred Vettese. Fred is a Partner and former Actuary at Morneau Shepell and author of three retirement books including Retirement Income For Life. We hear Fred’s thoughts on what people should be spending in retirement, why there is not a retirement crisis in Canada, and how Canadians can live on far less than they have been told. Fred talks about how to prepare for a bad investment outcome, as well as the problem of underspending early on and ending up with too many assets. He is a big proponent of people deferring their CPP until after 70 and buying an annuity with a portion of their money in most cases. Our guest weighs in on annuities, talking about how to buy them, which types to buy, and why ALDAs exacerbate the problem of early underspending. We query Fred about when people should start their CPP and OAS government benefits, and then move to hear his thoughts about different bear markets, how to invest during them, and what the current massive government interventions mean for the future of taxpayers. Fred gets into the risk of getting a retirement age date wrong, why he doesn’t endorse the 4% spending rule, and how retirement planning is affected by owning versus renting a home next. He also makes a case for when reverse mortgages are a good option, why long-term care insurance makes no sense, and why interest rates are so low right now. Wrapping up, we hear Fred’s thoughts on what this all means for early retirees, people still in the workforce, and those just entering it. Tune in for Fred’s brilliant perspectives on all this and a lot more in what should be an evergreen resource for any Canadian looking for solid retirement instructions.   Key Points From This Episode: Introducing Fred Vettese and his evidence-based work on retirement planning. [0:00:16.3] How Fred and Bill Morneau dispelled notions of a Canadian financial crisis. [0:02:45.3] Rethinking the rule that Canadians spend 70% of their income in retirement. [0:04:55.3] Fred’s conclusion about how spending tracks inflation during retirement. [0:09:27.3] Strategies for how retirees can take on less risk but still have enough money. [0:12:00.3] Avoiding underspending and ending up with too many assets later. [0:15:08.3] The benefits of annuities and why they might not be that safe anymore. [0:16:55.3] The pitfalls of annuities indexed to inflation over combining all income sources. [0:20:00.3] Why ALDAs exacerbate Canadians underspending at younger ages. [0:22:47.3] When to start CPP and OAS government benefits, and tips for exceptional cases. [0:25:59.3] Whether this bear market is vanilla or not and how it affects investment decisions. [0:30:25.3] The effects that massive government stimulus could have on taxpayers. [0:32:28.3] Drawbacks of saving for an over and underestimated retirement age. [0:35:12.3] Thoughts on the 4% spending rule now that bond returns are 0%. [0:37:20.3] How people owning versus renting a home affects retirement planning. [0:39:09.3] When it’s a good idea to take out a reverse mortgage. [0:41:36.3] Why long-term care insurance makes no sense; poor coverage for the price. [0:44:10.3] The link between aging populations and low interest rates/inflation. [0:47:40.3] The impacts of this low interest rate environment on early retirees. [0:52:10.3] Whether Monte Carlo simulation is a useful tool and what success rates to aim for. [0:53:49.3] Why early retirees can withstand a lower Monte Carlo success rate. [0:56:11.3] The reason people who are not retired yet should be saving 20% of their income. [0:56:59.3] Fred’s advice for people entering the workforce to live within their means. [0:58:52.3] How Fred defines success: having a minimal amount of regrets when it’s all over. [0:59:55.3]