The Rational Reminder Podcast

Have you ever received hate mail or negative comments on your social media posts? We’re here to tell you you’re not alone. On today’s show we are talking at length about your interactions online with people commenting on YouTube videos as well as a Globe and Mail article which is quite incredible. It’s kind of a theme for this week. We dive into online trolls, those people whose sole purpose in life is to get you down. It’s super interesting to read and obviously very entertaining for some to see. People are forever out there giving advice and it’s up to you to decide who you’re listen to and what advice you’re taking. In wrapping up our talk, we also reveal our pick for the worst advice that we’ve heard in the previous week and why you need to stay far, far away. For all this and more, keep listening!   Key Points From This Episode: Why an index fund should be better than an active fund. [0:04:00.0] How the index committee works. [0:06:30.0] Differences in the types of indexes. [0:07:29.0] Tax loss selling - buying something tracking a different index. [0:09:50.0] People promoting their own beliefs and opinions by commenting on articles and posts. [0:11:00.0] People following tribal leaders and why there’s too much information out there. [0:12:32.0] Decision theory and why you can’t base a decision on past outcomes. [0:13:00.0] Putting controversial content out there and “poking the bear” with dividend investing. [0:13:50.0] Being more wary of who you listen to and take advice from. [0:15:40.0] Who you should listen to - evidence based facts. [0:16:39.0] The concept of dividend growth investors. [0:19:30.0] Wanting the most reliable outcome possible. [0:21:25.0] Dividends as a guaranteed source of returns. [0:24:35.0] Using dividends as your spending rule. [0:26:25.0] The FIRE movement and why not all advice is good advice. [0:28:00.0] How irresponsible it is to use the 4% spending rule for your retirement goals. [0:29:35.0] Worst advice - when mutual funds make more sense than active funds. [0:34:45.0] And much more!

On the show today we welcome Dave Butler, who is now the co-CEO of Dimensional Fund Advisors. We have a great conversation about a wide range of topics from the beginnings of the firm, to his earliest involvement, how he was nearly in the NBA and the importance of trust and family. Dave takes us on a personal and professional journey in science-based investing, who his biggest influences and mentors are and how he found the path of fiducial advice after a few different careers early on. We discuss leadership, small cap stocks, efficient portfolios and the building of trust with clients as we scan through the last 40 years or so with our guest. Dave shares history and memories on some of the landmark events in the field and Dimensional's story, spilling the beans on his experiences with industry giants such as Gene Fama and Merton Miller. For a great conversation with an open, honest and inspiring person, be sure to tune in today!   Key Points From This Episode:  How Dave describes Dimensional. [0:02:32.2] Dave's basketball career before finance. [0:03:05.8] A 24 hour transition from sports to business. [0:06:46.7] Leadership, drive and team mentality. [0:09:38.6] The founding of Dimensional and the evolution of index funds. [0:11:32.5] The early days of small cap stocks. [0:17:40.1] Acting in the best interests of the clients and the rise of the fiduciary. [0:21:05.6] The first financial advisor at Dimensional! [0:23:59.0] Dave's own 'aha moment' and joining Dimensional. [0:25:42.6] Independent advice and always acting in the best interests of the client. [0:31:52.1] Building efficient investment portfolios for advisors. [0:35:51.1] Access to Dimensional funds and the indispensability of advisors. [0:37:33.5] Developing the essential element of trust. [0:38:51.1] The expansion of the advisor role over the last 25 years. [0:42:29.9] Dave's relationship with co-CEO Gerard O'Reilly. [0:45:22.4] The incredible experience of working with leading minds in finance. [0:47:50.8] Dave's definition of success. [0:51:38.0] And much more!

Welcome to this episode of the Rational Reminder Podcast! We’ve decided to tweak the format of the show slightly, so you can look forward to a more focused conversation around current and portfolio topics and much less talk about factors! In our talk today, we uncover the recent popularity of IPOs, giving you a balanced perspective so that you can decided for yourself whether the hype holds enough merit for you to get involved. We also get into the various arguments against indexing, pulling apart all the factors to keep in mind, and then advise you on choosing account types based on your individual financial needs. In wrapping up our talk, we also reveal our pick for the worst advice that we’ve heard in the previous week and why you need to stay far, far away. For all this and more, be sure to join us!   Key Points From This Episode: How we are changing up the format of the episodes. [0:01:50.0] A closer look at the two Canadian funds with class action lawsuits against them. [0:03:46.0] Investigating the current IPO frenzy and whether there is merit in the hype. [0:07:40.0] How to get an IPO allocation and the possible terms and conditions. [0:11:59.0] A breakdown of the arguments against indexing. [0:13:46.0] Why indexing is risky and the issue of a lack of control. [0:14:24.0] Weighing up the degree to which the skills of fund managers play a role in indexing. [0:19:46.0] Factors to consider when deciding on the type of account that you want to allocate to. [0:23:26.0] The advisable cascading order in which to fill up your accounts. [0:26:37.0] The complexity with market-linked GICs and what the basic premise is. [0:35:50.0] And much more!

On the show today we welcome Randy Cass, owner and founder of Nest Wealth, who were the first financial firm to employ the use of robo-advisors in Canada. Their unique business model and forward looking systems and practices are at the forefront of the industry in the country and hearing Randy's recollections from their processes as well as thoughts going forward will be of great interest to anyone interested in the future of their money. In our conversation we cover the basic history of Nest Wealth and what inspired their big decisions. Randy unpacks their fee structure and how some of the systems work and have changed over the last few years before going into the ins and outs of how robo-advisors field questions. Our guest also comments on the financial market's constant evolution and his personal and professional attitude to passive investment strategies. We chat about obstacles that currently stand in the way of the fintech industry and finish off the episode with Randy explaining his iterative approach to development as technology advances. For all this and more, be sure to tune in!   Key Points From This Episode: How Randy decided to launch the first robo-advisor service in Canada. [0:02:17.3] The evolution of the systems used by Nest Wealth since its inception. [0:04:25.1] Nest Wealth's unique fee structure. [0:06:38.0] Handling questions from clients at the firm. [0:09:50.0] Nest Wealth's place in the evolving financial advice market. [0:13:23.8] How Nest Wealth use technology to scale financial advice. [0:19:04.8] Randy's attitude towards passive and active investment management. [0:22:57.8] Some of the notable obstacles that Randy has encountered in Canadian fintech. [0:25:32.1] Looking forward to the future of the industry and developing iteratively. [0:29:19.0] How Randy measures success in his life. [0:31:39.4] And much more!

On today’s episode, Benjamin Felix and Cameron Passmore discuss a paper that Benjamin recently wrote called Factor Investing with ETF’s, which unpacks what factors are and why they are a useful tool in explaining performance. Before discussing Benjamin’s paper, they take some interesting detours, discussing annuities and the newly launched ALDA, why annuities are underutilized and what makes them different from portfolios. Along with this, they also cover some questions that can be asked to measure past performance of funds as well as luck versus skill. They share their insights into the Fama-French three factor model, how it evolved into a five-factor model and why they believe this to be a reliable way to read trends. For all this and a whole lot more, join us today! Factor Investing with ETFs Key Points From This Episode: Seller’s Capital: a hedge fund with an interesting investment philosophy. [0:02:46.0] The four questions to ask if you see why past results were good. [0:07:00.0] What it would take for results to be statistically significant. [0:07:54.0] Growing evidence of poor skill level of hedge fund manager. [0:09:53.0] Good returns are not related good decision making. [0:11:27.2] Annuities are underutilized and why it makes sense to use them more. [0:17:00.3] Annuities versus portfolios. [0:18:58.3] Some figures from the Dimension paper which was written. [0:23:26.3] What factors are. [0:26:41.3] What can be learned from the Fama-French model. [0:30:41.3] What the five factor model can help with. [0:33:48.0] Some critiques of using the factors. [0:38:50.0] Benjamin provides examples of using factors for evidence. [0:40:10.0] And much more!

Today on the show we are joined by Rob Carrick from The Globe and Mail! Rob has been writing about money and investing for almost 30 years and has a wealth of expertise and insight to share on everything from mutual funds to ETFs. In our discussion we cover common questions that Rob encounters, how his views have changed over the years, the parts of his job he has most enjoyed and his thoughts on where we are at right now. Rob comments on the feelings of worry and dissatisfaction that seems to characterize Canadian finances at the moment and talks about the FIRE Movement and lessons for the next generation. For all of this great content and much more, be sure to join on the podcast today! John Robertson's spreadsheet   Key Points From This Episode:   The most common questions that Rob receives. [0:02:47.8] Rob’s shifting perspective on seeking out an advisor. [0:04:41.5] Why Rob has traditionally enjoyed writing about housing investments [0:07:49.9] The current financial climate and Rob’s take on it. [0:10:14.4] Reasons why current financial worries are justified. [0:13:08.1] The rise in popularity of ETFs. [0:14:50.9] The bad rep that mutual funds have been getting recently. [0:18:37.4] Good practices for parents to teach their children about money. [0:21:42.2] The FIRE Movement and comparing generational attitudes. [0:24:56.6] Rob’s own many practices and who he goes to for advice. [0:30:39.5] How Rob defines success. [0:35:23.5] And much more! For more information or to contact Cameron and Ben, visit pwlcapital.com

Factor Investing with ETFs White Paper Today on the show we are taking about the influence of feelings in the decision making process. As investors and as humans in general, we tend towards making decisions based on feelings over rational and well-balanced data collection, that is just part of how we are wired. Here at the Rational Reminder Podcast we want to remind everyone of the importance of balancing these feelings with rationality. This does not mean that we should be making decisions without feelings but just to keep in mind our own biases and how these work to our detriment. In our discussion we cover what a good decision might look like, the two systems of thought as detailed by Daniel Kahneman and the importance of framing when approaching a weighty choice. We also run through a little on the safe savings rate and the ETF model portfolio. We end off with some useful strategies that can help you to make better decisions, especially when it comes to your money. For all this and a whole lot more, be sure to tune in today! Key Points From This Episode: The recurrence of feelings in decision making. [0:03:56.5] Lack of data in the safe savings rate research. [0:05:18.2] The ETF model portfolio and where to find it online. [0:10:53.8] A few of the twenty craziest investing facts ever! [0:12:13.5] What is a good money decision? [0:15:06.1] Confirmation bias and influences on our decision making. [0:18:50.9] Kahneman and the two systems of thought. [0:20:10.9] The effects of past experiences on our current strategy. [0:24:46.3] Framing as part of the discussion and decision making process. [0:27:36.2] Four things you can do to implement better decision making. [0:30:12.6] And much more!

Welcome to Episode 37 of the Rational Reminder Podcast. On today’s show we are joined by Lindsay Plumb, Chief Coach-ess of MOOLA Financial Coaches and Advisors. We’re discussing spending and budgeting, because that’s kind of the opposite end of the spectrum of what we always talk about. We usually assume people already have wealth, but that’s not always the case. Even if you do, both spending and budgeting are super important. Just getting in line with your values and what you spend money on, that affects everybody, no matter how many assets you might have. So in this episode we dive into what it means to have an understanding and alignment of what your values are and what your goals are and how that should inform your financial decisions. We’re helping you help yourself and for that we’ve brought in the Chief Coach-ess with the most-ess. So, for all this and more, keep listening!   Key Points From This Episode: Hear about Lindsay’s background and what she does within MOOLA. [0:02:20.0] Why budgeting is so hard. [0:03:35.0] Discovering your goals and articulating your values. [0:04:56.0] Using a tool that allows you to stick to a budget. [0:05:48.9] Understanding the difference between budgeting and tracking. [0:07:40.0] Why people blow out their budget on food. [0:08:32.0] Coaching people to change their behaviour. [0:09:47.0] How Lindsay advises her clients to coach their kids to modify their behavior. [0:12:41.0] Speaking in somebody else’s language, especially kids. [0:14:13.0] How to do bank accounts as couples. [0:16:48.0] Sudden wealth and how it can affect someones relationship with money. [0:21:50] Retirement and planning for philanthropic or legacy goals. [0:24:50] How Lindsay defines success in her own life. [0:29:30.0] And much more!

Welcome to Episode 36 of the Rational Reminder Podcast. Today we are going to roll out our new ETF model portfolios. This includes only two new ETF’s compared to a couch potato type portfolio that many of you might be familiar with. Nothing too revolutionary, but it certainly makes a meaningful difference. In this episode we also talk about asset location and review a couple of great podcasts that we’ve been listening to that provide interesting tidbits for investors, and some great information about the evolution of the industry, and about working with the clients. So, for an incredible conversation, be sure to join us!   Key Points From This Episode: Slicing up your portfolio for tax efficiency purposes. [0:01:57.6] Controlling for pretax or after tax asset allocation. [0:05:0] Optimal asset locations - highest yielding assets in tax free accounts. [0:06:05.0] Having the same asset mix across all your portfolios & forgetting asset location. [0:09:51.1] Intricate versus complex adaptive. [0:12:22.0] The benefits of working with an adviser. [0:15:32.7] Holding yourself accountable if you’re going at it alone. [0:17:09.0] How it is much harder to find missed prices in the marketplace even for an expert. [0:19:40.0] A history of the financial advice business and how it’s evolved into what it is today. [0:21:29.0] Index investing and where people get their information from. [0:23:33.0] ETF model portfolios that truly offer exposure to the factors. [0:26:11.0] Why people should be thinking about small cap in value. [0:31:38.0] And much more!

Welcome to Episode 35 of the Rational Reminder Podcast. Today on the show we are joined by Jonathan Chevreau who is the founder of Independence Hub. He has authored and co-authored many books and has contributed to The Globe and Mail, The Financial Mail, and Money Sense. Jonathan is here today to talk about financial independence and having that “findependence” while still being extremely engaged in things that you enjoy doing. He also shares with us why your aim shouldn’t be retirement and what he means by a victory lap. We also dive into the role that media plays in investor behaviors and exactly what Jonathan defines as a success life. Jonathan’s insights on financial independence alone are incredibly valuable, and anything on top of that is simply a bonus! So, for an incredible conversation, be sure to join us!