On today's episode we are so happy to be joined by none other than Barry Ritholtz! As the founder and CIO of Ritholtz Wealth Management, host of the Masters in Business Podcast and regular financial blogger for more than 15 years, Barry is someone we have been dying to speak to on the show and who we have taken loads of inspiration from over the years. We talk to Barry about his own podcast which has been going strong for years now and is just about to reach its 250th episode! He also explains the beginnings of his firm and how his role has evolved in it since it started. From there, the conversation turns to the different parts of an investing philosophy we and Barry pretty much share and we ruminate on the state of the financial industry in US and Canada currently. We all feel that it is surprising that brokerage firms still find business in this day and age, when it has been shown so many times, for an extended period of time to be a far inferior business model for clients. Barry offers some pretty sensible advice on how to pursue financial growth in the long term and shares how RWM approaches client acquisition. For all of this and so much more, be sure not to miss this great episode!   Key Points From This Episode:   Why Barry feels he has the easiest gig in podcasting. [0:03:17.6] The inspiration behind starting the firm and Barry's day to day work. [0:05:53.9] The RIA model versus the brokerage model in investment firms. [0:12:45.4] How Barry and the firm have chosen to run their business model. [0:16:03] Specific portfolios at Ritholtz and the philosophy behind them . [0:21:18.8] It's no good breaking a record if you crash straight after! [0:28:13.1] How Barry and the firm find customers and the client conversations they have. [0:34:04.2] Behavioral counseling as RWMC's biggest value proposition. [0:42:34.8] Barry's opinions on robo-advisors and the factors to consider. [0:47:06.2] Why are there still commission based advisors in 2019? [0:50:38.9] Things Barry has changed his mind about since starting the firm in 2013. [0:55:09.9] Small cap tilts, lower rates and the longer term vision that is necessary. [1:01:11.1] How Barry defines success in his life. [1:07:01.5] And much more!

On the show today we are going back to basics, just Cameron and Benjamin going through some useful topics for your financial benefit! We start talking about GIC's and the article on MoneySense that led to this conversation. GIC's have a somewhat mix and match reputation, one which we believe has been often misunderstood and misrepresented. We try to show in which ways people have been misled into thinking that GIC's are the best option when, we believe, they are not. From there we turn to more general portfolio ideas, comparing the performance of the S&P 500 over time and drawing on a very useful study that illuminates the index's limitations. Our last topic for today is around saving for college and RESP's or registered education saving plans. We talk about asset allocation, how to think about starting and best practices when drawing on these funds. We finish off the show with some bad advice regarding dividend investing that actually referenced a video we made! So for all and a bunch more great stuff, be sure to tune in today!   Key Points From This Episode:  Our recent summer travels and getting away from it all! [0:03:02.4] The article by Jonathan Chevreau that sparked part of today's discussion. [0:05:46] GIC's, long term returns and the financial implications of your choices now. [0:07:15.2] Reasons why returns on GIC's can be misleading in the short term. [0:11:02.7] The S&P 500's performance against other portfolio options. [0:13:56.3] Market drops and risk appetites during panic periods. [0:19:15.2] Saving and drawing on college funds and education plans. [0:22:40.2] Asset allocation and the best way to think about covering costs. [0:27:41.1] Withdrawing funds and making the most of unused college savings. [0:31:21.3] This week's bad advice! An argument about dividend investing. [0:33:30.8] And much more!

Joining us on the podcast today is Jonathan Clements, former Wall Street Journal columnist, founder of HumbleDollar and author of From Here to Financial Happiness, How to Think About Money and several other books. Jonathan is a well-known name in the world of personal finance as he has been giving financial advice for more than 20 years. Today he talks about the role of stories in shaping people’s understanding of and relationship with money by sharing an anecdote from his own childhood. He discusses how his investment philosophy has changed in favor of index funds, why investing is much simpler than people tend to believe and then he gives us a glimpse into his own investment portfolio and the financial decisions he is making in his personal life. Jonathan also offers a balanced perspective on home ownership from an investment point of view, advises on the things worth spending money on and then we debate the age-old question of whether money can in fact make you happy.   Key Points from This Episode: Working as a financial journalist on Wall Street for more than 20 years. [0:02:01.0] How old family stories taught Jonathan to be thrifty and careful with money. [0:02:28.0] How his philosophy and the investment world has changed over the years. [0:06:09.0] The hardest part of investing is accepting how simple it is! [0:07:39.0] Why Jonathan tilts towards value in his own investment portfolio. [0:11:12.0] Considering the many sides to home ownership as an investment. [0:13:57.0.] How his partial retirement has affected how he thinks about his portfolio. [0:17:43.0] What HumbleDollar is about and dealing with the human side of money. [0:19:58.0] Three things to do to get more happiness from your money. [0:24:17.0] What people should be talking more about in finance. [0:30:46.0] And much more!

Today on the Rational Reminder Podcast we have joining us Dr. David Blitzer who is the Managing Director and Chairman of the S&P Dow Jones index committee. He has been there from the time when indexes were barely even being traded and the first time S&P Futures began trading, and since then, indexing has turned into the massive phenomenon we all know today. Indeed, S&P indexes were (and still is) at the center of this explosion. Today Dr. Blitzer talks to us about the early days of indexing and shares some of his ideas about why indexing became so popular. We also discuss the possible reasons why some people still choose actively managed funds and the effect that the abundance of research has had on their dwindling appeal. Ever wondered where the rapid growth in indexing will end up? What happens after indexing? Can indexing become too big? Be sure to join us for this masterclass on indexing!   Key Points From This Episode: When Dr. Blitzer joined S&P and how index investing has changed over time. [0:03:33.0] The relationship between an S&P and a product manufactured like Vanguard. [0:06:03.0] Considering the reasons why indexing became so popular and the role of ETFs. [0:10:11.0] How research has impacted people’s perception about active management. [0:12:54.0] Some theories on why it is so difficult to beat the S&P 500. [0:18:13.0] How the change to indexing has affected smaller markets such as Canada. [0:25:39.0] Dr. Blitzer’s thoughts on factor weighting. [0:30:28.0] The line where we cross over from passive to active investing. [0:32:18.0] Can indexing become too big, and what’s next? [0:41:00.0] What Dr. Blitzer ascribes his success to. [0:45:26.0] And much more!

Live in the studio with us today is Preet Banerjee, renowned speaker, personal finance expert, consultant and author of Stop Overthinking Your Money. He is also the founder of MoneyGaps, a hybrid-advisor platform designed to help financial advisors make financial planning accessible to more Canadians. Having done a reality TV show and with a popular YouTube channel, Preet is on the forefront of the finance world, and he is here to talk to us about the findings that his DBA research has produced. He discusses his endeavour of seeking empirical evidence for the actual contribution that advisors are making to the financial lives of people, and we talk about the crucial difference between robo and human advisors and how people’s diverse needs demand diverse solutions. This is a really insightful conversation with someone who knows what he’s talking about, so be sure to listen in on this one!   Key Points from This Episode: What is the value of financial advice? Preet shares about his DBA research. [0:02:33.0] Preet’s history in finance and how he gained a more objective perspective. [0:05:13.0] Speculating around the findings and more about his research design. [0:06:41.0] The relationship between wealth and financial advice: correlation or causation? [0:11:11.0] Measuring the performance of someone who uses no advisor. [0:14:17.0] How the financial security of the home you grew up in affects your finances. [0:16:26.0] Building the model to score financial wellbeing and the challenges that surfaced. [0:20:20.0] Paying more attention to aspects outside of portfolio management. [0:25:09.0] MoneyGaps as a platform for affordable financial planning. [0:29:04.0] How the value of human advisors depends on each individual consumer. [0:33:34.0] The core benefits of human advisors. [0:34:44.0] And much more!

Welcome to this week’s Rational Reminded Podcast! Today we’re diving into the recent CPPIB report that portrays actively managed funds in the most optimistic light. But before you trade in your index funds, we look at the methodologies and calculations employed by the report and show why there are a number of issues with their findings. Benjamin shares his proposal for an alternative analysis that employs a more risk appropriate benchmark, and we discuss why the report can be seriously misguiding. We also talk about the transitional issues that have result from MD Financial being taken over by Scotiabank and why some MD Financial clients have not been too pleased with it all. We tackle the issue of value versus growth stocks and look at a number of research papers that could explain the developments that have taken place in this regard. Nearing retirement and unsure when to take your CPP? Be sure to join us to find the answer to this complex question!   Key Points From This Episode: The positive report about the active management strategy of the CPPIB. [0:01:19.0] Why there is a red flag about the calculations done for this report. [0:03:19.0] Benjamin’s alternative analysis and how he built up a more risk appropriate benchmark. [0:05:43.0] The problem of CPP comparing a relatively safe portfolio with a much higher risk one. [0:09:02.0] CPPIB’s argument for why they are investing in illiquid asset classes. [0:11:31.0] A few repercussions of MD Financial being taken over by Scotiabank. [0:16:16.0] Does value still make sense? Looking at the data of value relative to growth. [0:19:45.0] An overview of three research papers on on the overreaction hypothesis. [0:25:10.0] The complex question of when to take your CPP and when it’s better to wait. [0:33:27.0] And much more!

On the Rational Reminder today we are joined by Ellen Roseman from The Toronto Star, who has been writing and working in the realm of Canadian personal finance and consumer rights for many years. We have a great chat about her work history, what has driven her career and what motivates her to continue to pursue her path of creating financial awareness for more people. We discuss the position of advocacy for consumer rights and how that translates into her everyday work, her most important and recent areas of action, the classes she is involved in teaching and her most recent book, titled Fight Back. Ellen weighs in on the topics of financial advice and how to seek out the best of it, actively managed funds and how she is involved FAIR Canada. We finish off with a fun bit about how Ellen found herself blocked on Twitter by Suze Orman and Dave Ramsey! For all this and more, listen in today!   Key Points From This Episode: What it means to Ellens to be an advocate for consumer rights. [0:02:43.1] The most recent cause that Ellen has been championing through her work. [0:05:4] Three tips from Ellen's most recent book, Fight Back. [0:07:59.0] The class Ellen teaches at UFT, Investing for Beginners. [0:14:18.9] Ellen's attitude towards seeking advice and when it is necessary. [0:16:19.6] Bad investment advice and the cases that crop up the most for Ellen. [0:18:18.5] Some of the results of Ellen's course and how it is laid out. [0:21:05.4] Are actively managed mutual funds still holding the majority of Canadian assets? [0:26:03.2] A little about FAIR Canada and Ellen's work there. [0:27:55.4] Ellen's recent Twitter activity which led to get her getting blocked by Suze Orman. [0:32:14.5] A definition of success from our wonderful guest! [0:38:14.0] And much more!  

Welcome back to the Rational Reminder Podcast! We’re nearing our one-year anniversary, and we are still getting more listeners every episode and we have some incredible guests lined up for you! Today we are tackling more technical issues and some interesting topics overall. We explore the tax implications of VGRO or any of the asset allocation ETFs of Vanguard and iShares and discuss the scenarios in which it might be more advisable to configure the asset allocation that you want using a different form of fixed income and equities. We compare the tax rates on various funds and then dive into some literature on currency hedged global fixed income and what key role players have to say about diversification and dispersion. The spotlight is then diverted to disability insurance and we talk over whether it really is a necessity, what statistics show, and we advise you on the specific points to consider when looking for the right cover plan. For all of this and more, be sure to join us for this episode!  Key Points From This Episode: The listener question about the tax efficiency of VGRO that keeps popping up. [0:01:58.0] The tax issues with premium bonds and how interest rates impact their value. [0:02:41.0] The benefits of the different ETFs that VGRO gets its bond market exposure from. [0:05:34.0] Buying VEQT or other equity ETFs as an alternative to buying VGRO. [0:07:49.0] Comparing the tax rates on funds and why tax efficiency is a vital consideration. [0:09:31.0] Some interesting research findings on currency hedged global fixed income. [0:12:21.0] Understanding the tax, liquidity and risk implications of GICs. [0:14:16.0] Is it possible to over-diversify? And important points on dispersion. [0:16:31.0] Considering disability insurance, what data shows and what do look for. [0:22:47.1] And much more! Read more on GICs replacing bonds here: https://www.pwlcapital.com/should-gics-replace-bonds-in-a-portfolio/ 

On today’s episode, we are joined by Jaime Purvis, Executive Vice President at Horizons ETFs. Having been the company’s third ever employee, he has worked at the company for nearly 24 years and provides an in-depth inside look into how Horizons has come to have the reputation of being ahead of the curve in the Canadian ETF market. He takes us through some of Horizons history, how they got into ETFs, as well as giving some insights into how these products were chosen. Given the instability of the market today, it is important not only to innovate, but also to leverage experience when creating ETFs, which is what Horizons seeks to do. With such high levels of unpredictability, they aim to provide their clients with as much knowledge as they can to make informed decisions, especially given the Canadian national budget proposal, which will likely affect ETFs across the board greatly. Along with this, Horizons has also created a variety of ETFs, based on products they anticipate will soon play a huge role in daily lives, such as robotics and AI. Despite casting this wide net, these decisions are still made with careful consideration, drawing on the company’s extensive knowledge pool. This ability to continually innovate has put them at the forefront of the Canadian ETF market. To gain more insight into the world of ETFs and Horizons, join us today! Key Points From This Episode: How Horizons has swap structure works and why these swaps should not be feared. [0:06:55.0] What the rationale behind the Canadian government swap-based ETF targeting is. [0:11:45.0] What the redeemer’s methodology is and the effect that is has. [0:16:08.0] What some of the risks associated with the swap-based ETF structure are. [0:23:56.0] The situations where it does not make sense to have a swap-based ETF. [0:28:43.0] How Horizons chooses their thematic ETFs. [0:30:35.0] What the deciding factors in closing a stock down are. [0:36:29.0] Why it is becoming increasingly difficult for starter ETFs to launch. [0:39:20.0] And much more!

Welcome back to your weekly reality check on sensible investing and financial decision making for Canadians. On today’s episode we kick it off with a combo of a current topics, answering listener questions, and discussing the bad advice of the week. We then dive into the huge shift in the industry in the US in terms of fund flows into index funds out of active mutual funds. When you look at the overall US market cap, 13% of it is in index funds. This means that price discovery is being done by 87%. Inside this episode we unpack what that means for investments overall and how it differs in the Canadian market. We then take to a deeper discussion on our portfolio management topic of the week, which is looking at the relationship between price and future returns. We know that when prices are high, future returns tend to be low, so we dive into how that affects the context of pricing. We also take a look at the AQR study, Vanguard’s dollar cost averaging versus lump sump study, and of course our planning topic for the week; renting versus buying a home and understanding the unrecoverable costs. Join us today and be sure not to miss out on today’s incredible episode! Key Points From This Episode: Answering a listener question: using dividend stocks to pay down your mortgage. [0:03:41.0] Busting the beliefs and concepts of this week’s worst investment advice. [0:06:33.0] The shift in the US market place: index funds versus active mutual funds. [0:11:27.0] Understanding the Grossman-Stiglitz Paradox: market efficiency. [0:15:40.0] Portfolio management topic of the week: relationship between price and future returns. [0:18:19.0] Discussing the Vanguard study: Lump sum versus dollar cost averaging. [0:24:18.0] A viral topic: understanding the debate of whether to rent or to buy a house. [0:28:28.0] And much more!