Behavioural finance provides a realistic and comprehensive framework for understanding financial markets and decision-making. Incorporating insights from psychology, it enhances our understanding of investor behaviour, market dynamics, and risk management, leading to more effective investment strategies and improved financial outcomes. In this episode, Professor Meir Statman, a renowned expert in finance and behavioural finance, takes us on a captivating journey through the intriguing world of maximizing well-being through finance. Professor Statman is a distinguished financial expert and a leading authority in the field of behavioural finance. His groundbreaking research has shaped the understanding of investor behaviour and its impact on financial decision-making. Through his academic contributions and practical insights, Professor Statman has become a trusted guide in navigating the complex intersection of finance and human behaviour. In our conversation, he unravels the secrets of maximizing well-being through finance and the intricacies of the field. We explore the captivating world of behavioural finance and its connection to efficient markets, the distinction between normal and rational investors, the allure of lottery-like assets, and the downsides of consuming dividends. We unpack the aversion to realizing losses and the debate between dollar-cost averaging and lump-sum investing. We delve into the rising popularity of alternative investment strategies, the influence of status on rational investor behaviour, the role of financial advisors, and much more. Tune in for this enlightening conversation that will not only reshape your understanding of finance but human behaviour too.   Key Points From This Episode:   Defining what behavioural finance is and how it relates to efficient markets. (0:04:37) How traditional financial economists responded to Professor Statman's early behavioural work and the current state of behavioural finance research. (0:06:12) The various generations of behavioural finance and how they differ. (0:08:51) Differences between a normal investor and a rational one. (0:13:10) What investors really want and why normal investors like lottery-like assets. (0:15:48) Reasons normal investors have a preference for cash dividends. (0:20:17) Downsides of consuming dividends and not capital. (0:22:09) Unpacking why normal investors are averse to realizing losses. (0:25:40) Dollar-cost averaging versus lump sum investing. (0:27:57) The popularity of alternative investment strategies to normal investors. (0:31:13) Insights about the difference between an error and what a person wants. (0:34:49) The influence of status on rational investor behaviour and whether financial advisors should cater for elevating status. (0:36:37) Currency hedging, regret, the value of financial literacy, and the distinction between behavioural portfolio theory and traditional mean-variance portfolio theory. (0:40:50) Applying the market's portfolio theory to behavioural portfolio theory. (0:49:36) Exploring theories through a CAPM lens and behavioural theory's interpretation of return premiums from factors like size and value. (0:50:51) The role of financial advisors in correcting behavioural errors of clients. (1:00:16) Professor Statman's definition of success. (1:09:25)   Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-258-prof-meir-statman-financial-decisions-for-normal-people-discussion-thread/23934   Book From Today’s Episode: Behavioral Finance: The Second Generation — https://amzn.to/3qR7AmM   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 Prof. Meir Statman on Twitter — https://twitter.com/meirstatman Prof. Meir Statman — https://www.scu.edu/business/finance/faculty/statman/ 'Behavioral Efficient Markets' — http://doi.org/10.3905/jpm.2018.44.3.076 'What Is Behavioral Finance?' — https://www.cfainstitute.org/-/media/documents/book/rf-publication/2019/behavioral-finance-the-second-generation.pdf 'Behavioral Finance: The Second Generation' — https://www.cfainstitute.org/-/media/documents/book/rf-publication/2019/behavioral-finance-the-second-generation.pdf What Investors Really Want — http://doi.org/10.2469/faj.v66.n2.5 Explaining investor preference for cash dividends — http://doi.org/10.1016/0304-405x(84)90025-4 The Disposition to Sell Winners Too Early and Ride Losers Too Long: Theory and Evidence — https://doi.org/10.1111/j.1540-6261.1985.tb05002.x A Behavioral Framework for Dollar-Cost Averaging — http://doi.org/10.3905/jpm.1995.409537 Behavioral Aspects of the Design and Marketing of Financial Products — http://doi.org/10.2307/3665864 Options and structured products in behavioral portfolios — http://doi.org/10.1016/j.jedc.2012.07.004 Lottery Players/Stock Traders — http://doi.org/10.2469/faj.v58.n1.2506 Hedging Currencies with Hindsight and Regret — http://doi.org/10.3905/joi.2005.517170 Behavioral Portfolio Theory — http://doi.org/10.2307/2676187 Portfolio Optimization with Mental Accounts — https://www.cambridge.org/core/services/aop-cambridge-core/content/view/4B23CFB326982C52014A1BA447FA9244/S0022109010000141a.pdf/portfolio-optimization-with-mental-accounts.pdf Making Sense of Beta, Size, and Book-to-Market — http://doi.org/10.3905/jpm.1995.409506 Affect in a Behavioral Asset-Pricing Model — http://doi.org/10.2469/faj.v64.n2.8 From Financial Advisers to Well-Being Advisers; Well-Being Advisers — http://doi.org/10.3905/jwm.2023.1.202

What are your guiding philosophies on work and life? And how do they influence your daily decisions and the trajectory of your career? If these questions feel somewhat daunting, and you aren’t sure how to answer them, then this episode is a great place to start! Joining us today is Giorgio Ugazio, a self-described content creator, startup founder, and father. Giorgio is a software engineer by training, with a Master's degree in Artificial Intelligence and robotics, and spent over seven years working at Google. He is the founder of Retire In Progress, a blog where he shares his thoughts on life, work, achieving financial independence, and retiring early. The platform has amassed a dedicated following thanks to Giorgio’s many unique insights on life, design, and living intentionally. In today’s conversation, we talk with Giorgio about the underpinnings of his philosophies, the excellent book Designing Your Life: How to Build a Well-Lived, Joyful Life, and how his interpretation of it clarified his perspectives on life and work. We discuss the key tenets in Designing Your Life along with how you can use its many tools and exercises to determine your current position, assess your value, and define your compass. Giorgio goes on to share the thinking behind his foundational beliefs, like why you shouldn’t play the status game, before reflecting on who he believes would benefit most from reading Designing Your Life. To hear all of Giorgio’s fascinating insights and how to incrementally build your model of life, be sure to tune in today!   Key Points From This Episode:   A quick recap and review of episode 100 with Professor Ken French. (0:02:57) Introducing Giorgio Ugazio, aka Mr. RIP,  his website, Retire Your Life, and how you can access his extensive notes on the book Designing Your Life online. (0:05:16) An overview of Designing Your Life, guidance on how to classify problems, and a breakdown of what it means to prototype solutions. (0:08:49) Insight into the tools, exercises, and processes that the book offers: how it helps you determine where you are, assess your value, and define your compass. (0:13:05) How to do the Odyssey Planning exercises. (0:16:22) The four key areas covered in the book, why Giorgio added the categories learning, money, and creativity, and how he incorporates lessons from the book into his life. (0:18:18) Determining your views on life and work, and how the two interact. (0:21:54) The Pomodoro technique: what it is, and how to use it. (0:23:12) Giorgio’s perspective on work: why we do it, the purpose it serves, and the criteria he uses to assess his position. (0:25:11) What you learn when you take money out of the equation, why you should ignore the status game, and the importance of finding ways to enjoy your life. (0:29:46) Giorgio’s view on life, the philosophers that inspire him, and his guidelines for what he thinks a good life should be. (0:36:41) Some of the misalignments between Giorgio’s ideal life and his actual life. (0:42:29) How life and work both drive and complement one another. (0:44:16) Giorgio’s advice on applying lessons from Designing Life and who he thinks will benefit most from reading it. (0:48:51) Our thoughts on the movie Air, some of the wonderful reviews we’ve been getting from listeners, and news about upcoming meetups. (0:51:26)   Book From Today’s Episode: Designing Your Life: How to Build a Well-Lived, Joyful Life — https://amzn.to/3N5Xp57   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 Giorgio Ugazio on Twiter — https://twitter.com/retireinprogres Giorgio Ugazio — http://retireinprogress.com Giorgio’s Notes on Designing Your Life — mr.rip/dyl Episode 100: Prof. Kenneth French: Expect the Unexpected — https://rationalreminder.ca/podcast/100

How does the connection we have with our future self impact the decisions we make today? And what active steps can we take to improve our connection with our future selves? Today on the show we welcome back Hal Hershfield, whose new book Your Future Self: How to Make Tomorrow Better Today delves into the science of our relationship with our future selves and what we can do to change it for the better. In our conversation with Hal, we discuss the concept of the self, how we change over time, and why so many of us feel disconnected from our future selves. He describes the research surrounding these subjects and their findings, including how the brain scans they performed demonstrate that we mostly see our future selves as strangers, and why this is caused, at least in part, by the fact that our future selves don’t technically exist yet. We also discuss the interventions that have been shown to improve our relationship with our future selves, like viewing age-progressed images or exchanging letters with our future selves, and why everyone responds to these interventions differently. Having a strong connection with your future self has many benefits. It means you’re more likely to make decisions that will serve you later in life, like saving for retirement, eating healthily, and exercising regularly. But Hal also warns that we risk losing sight of the present and what truly matters when we focus solely on the future. To hear all of Hal’s knowledgeable insights on this topic and what he wants to explore next, be sure to tune in today! Key Points From This Episode: Defining the self and how our identity shifts depending on age, context, and the people we surround ourselves with. (0:04:08) An overview of Hal’s research and what it reveals about how most people connect (or don’t connect) to their future selves. (0:08:29) How empathy can influence our connection to our future selves. (0:11:36) Insights into why we tend to think of our future self the same way we think about strangers or acquaintances. (0:14:19) Our level of connection to our future self and how it affects wealth accumulation and financial well-being. (0:17:53) The definition of ‘present bias’ and ‘hyperbolic discounting’ and the role they play in decisions about the future. (0:19:28) The end-of-history illusion and the impact it has on our decisions. (0:23:02) How viewing age-progressed images of yourself can help you build a connection with your future self. (0:26:35) The research Hal is conducting with MIT Media Lab using an AI chatbot called Future You. (0:29:35) © 2023 Rational Reminder Podcast 1 RRP 256 Show Notes Dan Pink’s work on the power of regret and how it overlaps with Hal’s research and findings. (0:31:59) The findings on being presented with age-progressed images of ourselves and how they impact our decision-making and relationship with our future selves. (0:35:20) How writing to your future self can improve your decisions. (0:40:16) The problems that arise when we become too focused on improving life for our future self and how to find harmony between the present and future. (0:44:03) The COVID-19 pandemic and its impact on our collective relationship with the future. (0:48:10) Learn about the live episode we’ll be recording at the upcoming Future Proof conference with Hal as our guest. (0:51:24)   Links From Today’s Episode: Hal Hershfield — https://www.halhershfield.com/ Hal Hershfield on Twitter — https://twitter.com/HalHershfield Hal Hershfield on LinkedIn — https://www.linkedin.com/in/hal-hershfield-a2b91510/ Your Future Self: How to Make Tomorrow Better Today — https://www.halhershfield.com/ yourfutureself Episode 141: Hal Hershfield: The Psychology of Long-term Decision Making — https:// rationalreminder.ca/podcast/141 The Power of Regret: How Looking Backward Moves Us Forward — https://www.amazon.com/ Power-Regret-Looking-Backward-Forward/ Episode 246: Daniel H. Pink: How to Use Regret — https://rationalreminder.ca/podcast/246 Future Proof Festival — https://futureproof.advisorcircle.com/ Brian Knutson — https://profiles.stanford.edu/brian-knutson Dan Martell — https://www.danmartell.com/ Derek Parfit — https://www.britannica.com/biography/Derek-Parfit Daniel Gilbert — http://www.danielgilbert.com/ ING — https://www.ing.com/Home.htm Merrill Lynch — https://www.ml.com/ Shlomo Benartzi — http://www.shlomobenartzi.com/ Stephen Shu — https://steveshuconsulting.com/ Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder- podcast/id1426530582. 
 Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.ca
 Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on Twitter — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on Twitter — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Structured products can offer unique investment opportunities and customization but also come with risks and complexities. It is vital to thoroughly understand the product's structure, risks, and potential returns before investing. In this episode, we delve into the value of structured products and recap a past episode about the philosophy of money before continuing our focus on reading and finance by diving into the book, Just Keep Buying by Nick Maggiulli. Nick is a highly regarded author known for his insightful and engaging works on finance and investing. With a passion for demystifying complex financial concepts, Nick has earned a reputation for his ability to present information in a clear and accessible manner. His ability to blend storytelling with data-driven insights made his articles immensely popular among readers of all backgrounds. We discuss the pros and cons of financial products, why investors prefer them, the dark side of structured products, and what investors need to avoid. We recap a past episode with Barry Ritholtz about the philosophy of money and the main takeaways from our conversation with him. Then, we delve into Just Keep Buying and the invaluable lessons and uncover hidden gems it offers readers before speaking to Nick about savings and investing. We discuss the best strategies for investing, how to spend your money comfortably, why you should never wait for the markets to dip, and much more. To learn everything about structured products and valuable insights about saving and investing, tune in now.    Key Points From This Episode:   •    Learn about structured products and what they offer investors. (0:03:12) •    Why structured products can be a problem for investors. (0:07:00) •    We discuss whether the pricing of structured financial products is fair. (0:12:05) •    How financial institutions use complexity to exploit uninformed investors. (0:14:51) •    Outline of key findings from research conducted on structured financial products. (0:17:47) •    The behavioural aspect of structured products and why investors prefer them. (0:22:20) •    A recap of the main takeaways from our interview with Barry Ritholtz. (0:26:10) •    This week’s book review of Just Keep Buying. (0:28:54) •    Nick explains the difference between saving and investing. (0:32:54) •    A comparison of just keep buying and dollar cost averaging strategies. (0:35:21) •    Whether people should wait for a dip in the market before investing. (0:37:23) •    Why you do not need as much savings as you think you need. (0:39:04) •    What the biggest lie is regarding personal finance. (0:42:29) •    Find out how to spend your money guilt-free. (0:44:13) •    He unpacks what comes after the just keep buying strategy, and how to be comfortable spending more in retirement. (0:46:48) •    Financial advice that Nick has for listeners. (0:51:03) •    The aftershow: upcoming guests, feedback about the show, and more. (0:53:59)    Links From Today’s Episode: Nick Maggiulli — https://ofdollarsanddata.com/ Nick Maggiulli on LinkedIn — https://www.linkedin.com/in/nicholasmaggiulli/ Nick Maggiulli on Twitter — https://twitter.com/dollarsanddata Just Keep Buying — https://www.amazon.com/Just-Keep-Buying-Proven-wealth/ Episode 57: Barry Ritholtz — https://rationalreminder.ca/podcast/57 Episode 248: Professor William Goetzmann — https://rationalreminder.ca/podcast/248 Episode 253: Professor Paul Calluzzo — https://rationalreminder.ca/podcast/253 Episode 126: Dr. Brian Portnoy and Josh Brown — https://rationalreminder.ca/podcast/126 ‘The dark side of financial innovation’ — https://www.sciencedirect.com/science/article/abs/pii/ ‘Catering to Investors Through Security Design’ — https://academic.oup.com/qje/article- abstract/132/3/1469/3057435 ‘Engineering lemons’ — https://www.sciencedirect.com/science/article/abs/pii/ S0304405X21001653 ‘Ex-post Structured Product Returns’ — https://www.pm-research.com/content/iijinvest/24/2/45 Ritholtz Wealth Management — https://ritholtzwealth.com/ Animal Spirits Podcast — https://animalspiritspod.libsyn.com/ Masters in Business Podcast — https://www.bloomberg.com/podcasts/series/master-in- business Die With Zero — https://www.amazon.com/Die-Zero-Getting-Your-Money/dp/0358099765 Superfans — https://www.amazon.com/Superfans-Stand-Tribe-Successful-Business/dp/ 1949709469 Storyworthy — https://www.amazon.com/Storyworthy-Engage-Persuade-through-Storytelling/ dp/1608685489 Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder- podcast/id1426530582. 
 Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.ca
 Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on Twitter — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on Twitter — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

There are many different objective functions you can use when building optimal portfolios. The majority of these approaches define risk from the perspective of variability or bad outcomes, but positive returns could be viewed as “risky” for those that don’t experience them, which is another way of saying that people experience regret (or FOMO, for our trendier listeners). Today, we are joined by David Blanchett, a return guest and the Managing Director and Head of Retirement Research for PGIM DC Solutions, the global investment management arm of Prudential Financial. He is also an Adjunct Professor of Wealth Management at The American College of Financial Services and a Research Fellow for the Alliance for Lifetime Income. David returns to the podcast for an articulate discussion about regret in portfolio construction, what drives it, and how financial advisors can cater to it. We then delve into how David is redefining optimal retirement income strategies, looking at retirement tools, retirement planning, compensation models in the industry, risk exposures, and portfolios. We also get a high-level overview of some of the fascinating work that David has done on home-country bias, plus so much more. For highly technical content presented in an accessible and practical way by one of the brightest minds in retirement planning, be sure to tune in today! Key Points From This Episode: • Differences between risk aversion and regret aversion. (0:03:57) • The distinctly human element that drives “investment FOMO.” (0:06:34) • Insight into how David models regret in his research. (0:09:06) • The asset pricing implications of approaching portfolio optimization this way. (0:12:11) • Tips for deciding on what the regret benchmark should be. (0:13:19) • How a portfolio optimization routine based on regret affects asset allocation. (0:14:08) • Ways that the effect of optimizing over regret changes depending on risk aversion. (0:16:55) • Other asset characteristics that might drive optimal allocation to regret assets. (0:18:04) • Why moving away from self-direction is the best thing to happen to 401(k) plans. (0:20:53) • How financial advisors should cater to investors interested in speculative assets. (0:24:00) • Unpacking some of the social and story-driven sources of regret. (0:29:03) • Downsides to modelling retirement liability as a static inflation-adjusted amount. (0:32:00) • Why it’s important to understand the composition of retiree spending and saving. (0:33:57) • David’s research into dynamic spending rules for retirement planning. (0:42:06) • Some of the key pitfalls of existing financial planning tools and solutions. (0:44:38) • Ways that safe withdrawal rates change when you incorporate dynamic spending. (0:51:10) • How advisor channel affects passive fund choice and how clients should respond. (0:57:56) • Insight into David’s research on foreign revenue and home-country bias. (1:02:27)     Links From Today’s Episode: David Blanchett — https://www.davidmblanchett.com/ David Blanchett on Twitter — https://twitter.com/davidmblanchett David Blanchett on LinkedIn — https://www.linkedin.com/in/david-blanchett-b0b0aa2/ © 2023 Rational Reminder Podcast 2 RRP 254 Show Notes PGIM — https://www.pgim.com/ E137: David Blanchett: Researching Retirement — https://rationalreminder.ca/podcast/137 ‘Regret and Optimal Portfolio Allocations’ — https://www.pm-research.com/content/iijpormgmt/ early/2023/02/01/jpm20231464 ‘Keep Keeping Your Distance: An Updated Look at 401(k) Participant Behaviors During the COVID-19 Crisis’ — https://www.morningstar.com/articles/1032011/keep-keeping-your- distance-an-updated-look-at-401k-participant-behaviors-during-the-covid-19-crisis ‘Save more with less: The impact of employer defaults and match rates on retirement saving’ — https://onlinelibrary.wiley.com/doi/abs/10.1002/cfp2.1152 ‘Redefining the Optimal Retirement Income Strategy’ — https://www.tandfonline.com/doi/full/ 10.1080/0015198X.2022.2129947 ‘Focusing on Both Sides of the Balance Sheet: The Benefit of Liability Optimization’ — https:// web.p.ebscohost.com/abstract ‘The Problems with Monte Carlo are in Your Mind’ — https://www.advisorperspectives.com/ articles/2023/04/24/the-problems-with-monte-carlo-are-in-your-mind ‘Does Advisor Channel Influence Passive Fund Choice?’ — https:// www.financialplanningassociation.org/learning/publications/journal/APR22-does-advisor- channel-influence-passive-fund-choice-OPEN ‘Foreign Revenue: A New World of Risk Exposures’ — https://www.pm-research.com/content/ iijpormgmt/47/6/175 Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder- podcast/id1426530582. 
 Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.ca
 Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on Twitter — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on Twitter — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

We have two guests joining us for this episode of the Rational Reminder podcast. First up, we have Paul Calluzzo, who is the Assistant Professor of Finance and Toller Family Fellow of Finance in the Smith School of Business at Queen's University in Kingston. Paul joins us today to discuss the findings in his paper, ‘Complex Instruments Have Increased Risk and Reduced Performance at Mutual Funds’. He explains the motivation for the paper, the research it expands upon, and the types of complex instrument allowances it investigates. We discuss reverse causality and find out how complex instrument allowance is related to fund performance and risk, respectively, before hearing Paul’s investment advice. For the second half of the show, we are joined by the author of Losing the Signal: The Spectacular Rise and Fall of BlackBerry, Sean Silcoff to discuss the BlackBerry revolution and its subsequent decline, and the film adaptation of the book. Tune in for our guests’ insights into best practices for investors and business leaders alike.   Key Points From This Episode:   •    Housekeeping: check out our CE courses and reach out for financial advice. (0:02:25) •    An introduction to Paul Calluzzo and our conversation with him about the impact of complex financial instruments on mutual funds. (0:05:20) •    The motivation for the paper, ‘Complex Instruments Have Increased Risk and Reduced Performance at Mutual Funds’, the research it expands upon, and the types of complex instrument allowances it investigates. (0:07:50) •    Reverse causality relating to complex instruments and mutual funds, and the mechanisms that could potentially harm investors in funds using complex instruments. (0:12:37) •    How the performance of funds was evaluated in the paper and how the usage of complex instruments evolved throughout the sample. (0:18:12) •    How complex instrument allowance is related to fund performance and risk. (0:23:06) •    The asymmetry of return patterns in up and down markets. (0:26:11) •    Paul’s investment advice, in the context of the paper’s findings. (0:33:05) •    Why complex products are growing despite their poor performance and how research can reach the market. (0:37:05) •    A quick recap of episode 39 with Rob Carrick. (0:40:48) •    Our brief review of Losing the Signal: The Spectacular Rise and Fall of BlackBerry by Sean Silcoff and Jacquie McNish. (0:41:49) •    Sean Silcoff breaks down the BlackBerry revolution and its subsequent demise. (0:44:53) •    Insight into the film adaptation of the book and what makes it such a compelling story. (1:04:51) •    What business leaders and investors can take away from the BlackBerry story. (1:08:09) •    Our after-show roundup! (1:15:12)     Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-253-complex-financial-instruments-with-prof-paul-calluzzo-plus-sean-silcoff-on-losing-the-signal-discussion-thread/23482   Book From Today’s Episode: Losing The Signal: The Spectacular Rise and Fall of BlackBerry Kindle Edition — https://amzn.to/3OaA5Wa   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 Paul Calluzzo — https://smith.queensu.ca/faculty_and_research/faculty_list/calluzzo-paul.php Sean Silcoff on LinkedIn — https://www.linkedin.com/in/sean-silcoff-777b0912 Sean Silcoff on Twitter — https://twitter.com/SeanSilcoff 'Complex Instruments Have Increased Risk and Reduced Performance at Mutual Funds' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2938146      

Understanding market efficiency is an important part of investment decision-making. It can help investors to identify the most appropriate investment strategies and develop realistic expectations for their returns. In this episode of the Rational Reminder Podcast, we sit down with Professor Burton Malkiel, the renowned economist, and author of the classic investing book A Random Walk Down Wall Street. Professor Malkiel is a distinguished figure in the world of economics and academia. He holds the prestigious title of Chemical Bank Chairman's Professor of Economics Emeritus and Senior Economist at Princeton, where he has made significant contributions to the field over the years. In our conversation, we discuss Professor Malkiel’s views on the stock market, the efficient market hypothesis, how behavioural finance relates to investing, and why index funds should be at the core of every portfolio. Throughout the episode, Professor Malkiel shares his insights on a wide range of topics related to personal finance and investing, including the benefits of index funds, the dangers of active stock picking, the impact of fees and taxes on investment returns, factor investing, and expensive asset classes. He also discusses research on socially responsible investing and how investors can incorporate ethical considerations into their portfolios without sacrificing performance. In this episode, listeners will gain a better understanding of the vital principles of investing and how to apply them to achieve their financial goals. Whether you're a novice investor or an experienced pro, this episode offers valuable insights and advice from one of the most respected economists in the field, Professor Malkiel. Key Points From This Episode: Professor Malkiel explains the efficient market hypothesis and what the term “efficient market” means. (0:03:42) What the media tends to get wrong about the concept of market efficiency and the mathematical theory behind a random walk market. (0:07:04) We discuss investing in index funds rather than actively managed strategies. (0:09:44) How his book, Random Walk, was received by professionals and academics in the industry (0:13:08) Hear about the inspiration behind the concept covered in his book, and how his investment advice has changed over the last 50 years. (0:19:18) Why index funds have become widely accepted, and the difference between investing and speculating. (0:23:38) He unpacks why past market bubbles are vital for managers to understand and shares some wise words for those who want to participate in market speculation investing. (0:28:21) How the existence and persistence of bubbles throughout history relate to markets being efficient. (0:32:10)     Find out how the multiple, non-diversifiable risks in today’s financial markets impact the advice in his book, and learn about factor investing. (0:35:42) He shares advice and insights for people looking to invest in cheaper funds and his perspective on trending investment strategies. (0:37:55) Learn how the general findings from behavioural finance influence his advice on investing in index funds. (0:41:33) We explore the value of risk parity strategies and the problem with backtests, and he shares his view on expensive asset classes. (0:44:09) What impact super-low bond yields had on the return of bonds, and whether you should focus on the value or yield. (0:54:16) The importance of saving as opposed to an optimal investment strategy to investor outcomes. (0:57:56) Insights into investing according to your desired outcomes and whether Professor Malkiel thinks it is better to rent or own a home. (1:03:55) We discuss inflation and possible future trends and the role of financial planners and investment advisors. (1:10:29) Hear his concerns regarding the growth of index fund assets. (1:14:52) Details about his book writing journey and his definition of success. (1:18:46)   Links From Today’s Episode: Burt Malkiel — https://jrc.princeton.edu/people/burton-g-malkiel Wealthfront — https://www.wealthfront.com/ Theravance Biopharma — https://www.theravance.com/ Genmab A/S — https://www.genmab.com/ Rebalance IRA — https://www.rebalance360.com/ A Random Walk Down Wall Street: The Best Investment Guide That Money Can Buy — https://amzn.to/3BgepQz Princeton University — https://www.princeton.edu/ The Yale School of Management — https://som.yale.edu/ Vanguard — https://investor.vanguard.com/corporate-portal/ Trillions — https://www.amazon.com/Trillions-Renegades-Invented-Changed-Finance/dp/ 0593087682 S&P Dow Jones Indices — https://www.spglobal.com/spdji/en/ S&P Dow Jones Indices SPIVA — https://www.spglobal.com/spdji/en/research-insights/spiva/ Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder- podcast/id1426530582. 
 Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.ca
 Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on Twitter — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on Twitter — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

We all have different levels of risk tolerance. But how is that risk measured for complex investment strategies like covered calls? And how can you be sure it's an accurate reflection of reality? For the first portion of today’s episode, we provide a detailed breakdown of everything you need to know about covered calls and why there is no perfect model for assessing risk-adjusted returns. We examine how incorrect measures of risk can make covered calls seem more attractive, what investors need to know about covered calls, and the fees, costs, and taxes you should be considering with these types of strategies. Next, we are joined by lifelong friends and colleagues Jonathan Hollow and Robin Powell to discuss their new book How to Fund the Life You Want: What everyone needs to know about savings, pensions and investments. They describe how their shared passion for financial education motivated them to write their book, before explaining how readers can best use the accompanying workbook to identify and reach their financial goals. Robin and Jonathan then go on to share their advice on day-to-day money management, finding a trustworthy advisor, and why it’s never too early to teach your child about money. Tune in for a detailed breakdown of covered calls and how to make informed decisions about your investments and finances!   Key Points From This Episode: An introduction to the concept of covered calls. (0:02:41) The definition of covered calls, how risk can be measured incorrectly to make covered call strategies look more attractive, and why risk can never be destroyed. (0:04:22) A breakdown of the assets involved in covered calls and why their yields can be misleading. (0:07:00) Why there is no perfect model for assessing risk-adjusted returns and what can be learned from looking at investors through a behavioural lens. (0:16:19) An overview of why fees, costs, and taxes are major considerations for these types of strategies. (0:20:15) Introducing Robin Powell, Jonathan Hollow and their new book How to Fund the Life You Want. (0:25:08) Jonathan and Robin’s long friendship, their shared interest in financial education, why they saw a need for their book, and how readers can get the most out of their workbook. (0:30:45) Insight into the six rules that Robin and Jonathan outline in their book and the eight keywords that they set up for managing money day to day. (0:35:07) Advice on how to keep up with finance news, including what you should pay attention to and what you can ignore. (0:40:37)  The importance of a day-to-day savings habit and suggestions on what kids should be taught about money. (0:43:20) Advice on how to find a first-rate advisor based on your needs and what questions you need to be asking of them. (0:49:54) How your financial advisor should act as your financial bodyguard and complement your weaknesses. (0:56:02) Ben and Cameron share news about their next podcast appearances, Rational Reminder education courses for financial advisors, and upcoming meetups. (0:57:43) Learn about the webinars that Ben and Cameron have been hosting and how you can sign up. (01:03:00)     Links From Today’s Episode:   Robin Powell on LinkedIn — https://www.linkedin.com/in/robinpowell/ Jonathan Hollow on LinkedIn — https://www.linkedin.com/in/jonathanhollow/ How to Fund the Life You Want: What everyone needs to know about savings, pensions and investments — https://www.amazon.co.uk/dp/1399404601/ Covered Calls — https://www.investopedia.com/terms/c/coveredcall.asp Episode 27: Robin Powell: Evidence Based Investing: Changing the Minds of Advisors and Investors — https://rationalreminder.ca/podcast/27 Patrick Boyle on YouTube — https://www.youtube.com/c/PatrickBoyleOnFinance Sharpe Ratio — https://www.investopedia.com/terms/s/sharperatio.asp Sortino Ratio — https://www.investopedia.com/terms/s/sortinoratio.asp S&P 500 — https://www.spglobal.com/spdji/en/indices/equity/sp-500/#overview Episode 167: Prof. Hersh Shefrin: Fear, Hope, and the Psychology of Investing — https://rationalreminder.ca/podcast/167 ‘Behavioral Aspects of the Design and Marketing of Financial Products’ — https://www.jstor.org/stable/3665864 Episode 171: Prof. Campbell R. Harvey: The Past and Future of Finance — https://rationalreminder.ca/podcast/171 ‘Portfolio Performance Manipulation and Manipulation-Proof Performance Measures’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=302815 Adviser 2.0 — https://www.advicereinvented.com/ Sensible Investing — https://sensibleinvesting.tv/ Financial Times — https://www.ft.com/ Rob Carrick — https://www.theglobeandmail.com/authors/rob-carrick/ The Globe and Mail — https://www.theglobeandmail.com/ The Money and Meaning Show — https://podcasts.apple.com/us/podcast/the-money-and-meaning-show/id1449894787 The Most Hated F Word — https://themosthatedfword.com/ New Self-Regulatory Organization of Canada — https://www.newselfregulatoryorganizationofcanada.ca/ FP Canada — https://www.fpcanada.ca/ Rational Reminder Continuing Education — learn.rationalreminder.ca PWL Capital — https://www.pwlcapital.com/ PWL Capital on YouTube — https://www.youtube.com/c/Pwlcapital-Montreal/videos IAFP Symposium — https://iafpsymposium.ca Burt Malkiel — https://jrc.princeton.edu/people/burton-g-malkiel David Blanchett — https://www.davidmblanchett.com/ Meir Statman — https://www.scu.edu/business/finance/faculty/statman/ Nick Maggiulli — https://www.linkedin.com/in/nicholasmaggiulli/ Jill Schlesinger — https://www.jillonmoney.com/ Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.ca Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/  Benjamin on Twitter — https://twitter.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on Twitter — https://twitter.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Navigating the world of finance and investing is undeniably complicated, sometimes unnecessarily so. And all too often the people who end up making the most costly financial mistakes are those who can least afford to do so. But what exactly needs to change in order for more people to make wise and well-informed financial decisions? And how do we go about implementing those changes? Joining us today to help us unpack this topic and the many decisions involved in the world of investing is John Y. Campbell, a British-American economist, professor of economics at Harvard, and founding partner at Arrowstreet Capital, a systematic asset management firm based in Boston. John has published over a hundred of articles on a range of topics including fixed income, equality valuation, portfolio choices, and household finance, all of which we explore in today’s expansive conversation. We kick things off by discussing utility theory, why it’s so important to the study of finance, and what it can teach us about risk aversion, before delving into portfolio structure, asset allocation, and hedging. John also expands on the study of household finance, the mistakes that households typically make, why household behaviour tends to differ from theoretical predictions, and how to bring theory and behaviour into alignment. We wrap things up by discussing how financial literacy, education, and regulation can improve outcomes for households before hearing John’s advice on selecting an optimal mortgage contract along with an overview of the type of risk that mortgage contracts expose you to. Today’s episode is jam-packed with information and insights from a profoundly knowledgeable figure in academia.   Key Points From This Episode:   •    An overview of asset pricing theory; unpacking the utility function in finance, what it teaches us about being risk averse, and how it is used to determine the value we place on any amount of money. (0:04:01) •    The implications of using the Capital Asset Pricing Model (CAPM) for portfolio choice. (0:13:58) •    The difference between arbitrage pricing theory and the Intertemporal Capital Asset Pricing Model (ICAPM). (0:18:15) •    How predictability in stock returns affects portfolio advice for long-term investors and why John prefers the cyclically adjusted price-to-earnings (CAPE) ratio. (0:23:40) •    Why a long-term inflation index bond is the ideal risk-free asset for a long-term investor, and how portfolio advice, concerning bonds, changes when inflation index bonds are not available. (0:28:32) •    The impact that labour income should have on optimal portfolio choice and the relationship between human capital and financial assets as you age. (0:35:31) •    Learn about John’s 2004 paper entitled ‘Bad Beta, Good Beta’ and how intertemporal asset pricing explains differences in returns between value and growth stocks. (0:38:33) •    The benefits and drawbacks of value investing: why historically they do well on average, but extremely poorly over certain periods. (0:41:12) •    A breakdown of stochastic volatility and how it affects portfolio choice for long-term investors. (0:47:16) •    How long-term equity investors should approach foreign currency hedging in their portfolios, and how fixed-income investors should deal with foreign currency exposure. (0:50:07) •    The study of household finance, what it aims to answer, and the major challenges in this area of study. (0:53:54) •    An overview of the mistakes that households typically make, how costly they can be, and why household behaviour tends to differ from theoretical predictions. (0:59:57) •    Suggestions on how household behaviour and theoretical predictions can be brought into alignment and the methods that have the most potential to improve outcomes for households. (01:04:47) •    What households should take into account when selecting an optimal mortgage contract and the different types of risk that mortgage contracts expose people to.[01:10:18] •    How John’s definition of success has shifted over the years, the joy of academia, and why he is especially grateful for the opportunity to connect with students on their educational journey. (01:16:04)       Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-250-prof-john-y-campbell-financial-decisions-for-long-term-investors-discussion-thread/23202   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 John Y. Campbell — https://scholar.harvard.edu/campbell/home 'Who Should Buy Long-Term Bonds' — https://www.nber.org/system/files/working_papers/w6801/w6801.pdf 'Inflation Bets or Deflation Hedges? The Changing Risks of Nominal Bonds' — https://scholar.harvard.edu/files/campbell/files/campbellsunderamviceira_20160523.pdf 'Growth or Glamour? Fundamentals and Systematic Risk in Stock Returns' — https://scholar.harvard.edu/sites/scholar.harvard.edu/files/campbell/files/gorg20090319_copyedited.pdf 'Bad Beta, Good Beta' — https://scholar.harvard.edu/sites/scholar.harvard.edu/files/campbell/files/bbgb_2004_nberw9509.pdf 'An Intertemporal CAPM with Stochastic Volatility' — https://scholar.harvard.edu/sites/scholar.harvard.edu/files/campbell/files/cgpt_volatilityrisk20170123final.pdf 'Global Currency Hedging' — https://scholar.harvard.edu/sites/scholar.harvard.edu/files/campbell/files/globalcurrencyhedging_20090128_manuscript.pdf 'Biases in long-horizon predictive regressions' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X21004013 'What Drives Booms and Busts in Value?' — https://scholar.harvard.edu/sites/scholar.harvard.edu/files/campbell/files/cgp_valueboomsbusts_20230311.pdf 'Household Finance' — https://scholar.harvard.edu/sites/scholar.harvard.edu/files/campbell/files/householdfinance_jof_2006.pdf 'The Cross-Section of Household Preferences' — https://scholar.harvard.edu/sites/scholar.harvard.edu/files/campbell/files/calvetcampbellgomessodini_20221027.pdf 'Restoring Rational Choice: The Challenge of Consumer Financial Regulation' — https://scholar.harvard.edu/sites/scholar.harvard.edu/files/campbell/files/elylecture_march2016.pdf 'Down or Out: Assessing the Welfare Costs of Household Investment Mistakes' — https://www.journals.uchicago.edu/doi/abs/10.1086/524204 'A Model of Mortgage Default' — https://scholar.harvard.edu/sites/scholar.harvard.edu/files/campbell/files/mortdefault13022014.pdf 'Household Risk Management and Optimal Mortgage Choice' — https://scholar.harvard.edu/campbell/publications/household-risk-management-and-optimal-mortgage-choice 'Predicting the Equity Premium Out of Sample: Can Anything Beat the Historical Average?' — https://www.nber.org/papers/w11468 'An Asset Allocation Puzzle' — https://www.nber.org/papers/w4857    

Our focus for this episode is the real utility of financial advisors, and Ben shares a host of research and findings about the supposed and actual value that advisors can offer investors. This segment continues our exploration of investment basics, a fundamental theme for this show and our work at PWL Capital. One of the biggest and clearest lessons that becomes apparent through this discussion is the need for financial literacy independent of advice and so-called expertise from the outside. With that said, we do find time to share some of the positives investors can accrue from dealing with a trustworthy advisor and the conditions necessary for this. Later in the episode, our colleague Lukas Fleck joins us to share his review of The Obstacle Is the Way by Ryan Holiday and some of his own reading habits and tips. We finish the episode with lighter content about hot sauces, TV shows, and Ben's latest home improvement.   Key Points From This Episode:   •    Introducing today's question about the usefulness of financial advisors. (0:03:35) •    Common financial mistakes made by households. (0:11:13) •    Some of the research and findings grounding today's discussion. (0:18:13) •    Investing and self-control; what we can learn from data about smokers. (0:22:49) •    Looking at some of the potential benefits of hiring an advisor for investors. (0:28:40) •    A quick review of Episode 43 with Dave Butler from 2019. (0:34:07) •    Today's book review of The Obstacle Is the Way, with Lukas Fleck, and some of the biggest takeaways. (0:36:43) •    A look at Lukas' reading habits, favourite recent books, and his increased focus on getting through books. (0:44:59) •    Advice for starting a book club and Lukas' reading hacks. (0:50:49) •    The after-show; Ben tells us about his basketball hoop, last week's episode of Succession, and the hot sauce debate. (0:54:44) •    Upcoming events, audience reviews, and future guests on the podcast. (0:58:31)     Ad mentioned by Ben: Video: https://www.reddit.com/user/AMF_Quebec/comments/11rzoc9/les_risques_de_fraude_avec_les_cryptos_sont_bien/?utm_source=share&utm_medium=ios_app&utm_name=iossmf&utm_content=1&utm_term=15 Text: https://lautorite.qc.ca/en/general-public/investments/crypto?utm_campaign=crypto-phase2-1017340&utm_content=image-amf_crypto2023_1x1_6sec_02_fr-fr&utm_medium=social&utm_source=reddit   Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-249-what-are-financial-advisors-measurably-useful-for-discussion-thread/23120   Books From Today’s Episode: The Obstacle Is the Way: The Timeless Art of Turning Trials into Triumph — https://amzn.to/3MXh1dl The Behavior Gap: Simple Ways to Stop Doing Dumb Things with Money — https://amzn.to/3UM8KLb Deep Work: Rules for Focused Success in a Distracted World — https://amzn.to/3AuSXqZ Making Numbers Count: The Art and Science of Communicating Numbers — https://amzn.to/41HXnWK   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 Lukas Fleck — https://www.pwlcapital.com/profile/lukas-fleck/ 'Restoring Rational Choice: The Challenge of Consumer Financial Regulation' — https://www.aeaweb.org/articles?id=10.1257/aer.p20161127 'Financial literacy and financial resilience: Evidence from around the world' — https://onlinelibrary.wiley.com/doi/abs/10.1111/fima.12283 'Strategic price complexity in retail financial markets' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X08002092 'Shrouded Attributes, Consumer Myopia, and Information Suppression in Competitive Markets' — https://academic.oup.com/qje/article-abstract/121/2/505/1884013?redirectedFrom=fulltext 'The Role of Time Preferences and Exponential-Growth Bias in Retirement Savings' — https://www.nber.org/papers/w21482 'Contract Design and Self-Control: Theory and Evidence' — https://www.jstor.org/stable/25098689 'Restoring Rational Choice: The Challenge of Consumer Financial Regulation' — https://www.aeaweb.org/articles?id=10.1257/aer.p20161127 'Why Does the Law of One Price Fail? An Experiment on Index Mutual Funds' — https://dash.harvard.edu/bitstream/handle/1/4686775/Laibson_OnePriceFail.pdf 'Failure to refinance' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X16301507 'Down or Out: Assessing the Welfare Costs of Household Investment Mistakes' — https://www.jstor.org/stable/10.1086/524204 'Financial literacy and stock market participation' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X11000717 'Attention Induced Trading and Returns: Evidence from Robinhood Users' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3715077 'Excessive Extrapolation and the Allocation of 401(k) Accounts to Company Stock' — https://www.jstor.org/stable/2697737 '$100 Bills on the Sidewalk: Suboptimal Investment in 401(k) Plans' — https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3158583/ 'Save More Tomorrow: Using Behavioral Economics to Increase Employee Saving' — https://www.journals.uchicago.edu/doi/10.1086/380085 'Annuitization Puzzles' — https://www.aeaweb.org/articles?id=10.1257/jep.25.4.143 'The Market for Financial Advice: An Audit Study' — https://www.nber.org/papers/w17929 'Understanding the Advice of Commissions-Motivated Agents: Evidence from the Indian Life Insurance Market' — https://www.hbs.edu/ris/Publication%20Files/12-055_13c23c02-e57f-4aea-9630-316aa4b772ce.pdf 'Fiduciary Duty and the Market for Financial Advice' — https://www.nber.org/papers/w25861 'Conflicting Interests and the Effect of Fiduciary Duty: Evidence from Variable Annuities' — https://academic.oup.com/rfs/article-abstract/35/12/5334/6674521 'How (not) to pay for advice: A framework for consumer financial protection' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X12000074 'Financial Advice and Bank Profits' — https://academic.oup.com/rfs/article-abstract/31/11/4447/4985213?redirectedFrom=fulltext 'The Misguided Beliefs of Financial Advisors' — https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.12995 'Retail Financial Advice: Does One Size Fit All?' — https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.12514 'The Ulysses option: Smoking and delegation in individual investor decisions' — https://www.sciencedirect.com/science/article/abs/pii/S1544612321003962 'Smoking hot portfolios? Trading behavior, investment biases, and self-control failure' — https://www.sciencedirect.com/science/article/abs/pii/S0927539821000463 'Exponential Growth Bias and Household Finance' — https://www.jstor.org/stable/27735191 'Money Doctors' — https://scholar.harvard.edu/files/shleifer/files/moneydoctors_journaloffinance.pdf 'The Costs and Benefits of Financial Advice' — https://www.hbs.edu/faculty/Shared%20Documents/conferences/2013-household-behavior-risky-asset-mkts/Costs-and-Benefits-of-Financial-Advice_Foerster-Linnainmaa-Melzer-Previtero.pdf 'Time is money: Rational life cycle inertia and the delegation of investment management' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X16300472 'Passing the buck: Delegating choices to others to avoid responsibility and blame' — https://www.sciencedirect.com/science/article/abs/pii/S0749597815300108#:~:text=One%20simple%20way%20to%20avoid,outcome%20on%20the%20other%20person. 'Expert financial advice neurobiologically "Offloads" financial decision-making under risk' — https://pubmed.ncbi.nlm.nih.gov/19308261/ 'Impact of inflated perceptions of financial literacy on financial decision making' — https://www.sciencedirect.com/science/article/abs/pii/S0167487020300672 'Precautionary savings, retirement planning and misperceptions of financial literacy' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X17301551 'Behavioral and wealth considerations for seeking professional financial planning help' — https://fpcanadaresearchfoundation.ca/media/khyfoso3/financial-services-reveiw-publication.pdf 'Financial literacy and the demand for financial advice' — https://www.sciencedirect.com/science/article/abs/pii/S037842661400096X 'Does financial literacy affect the value of financial advice? A contingent valuation approach' — https://www.researchgate.net/publication/338669648_Does_financial_literacy_affect_the_value_of_financial_advice_A_contingent_valuation_approach 'How financial literacy shapes the demand for financial advice at older ages' — https://www.sciencedirect.com/science/article/pii/S2212828X21000220 'Depression Babies: Do Macroeconomic Experiences Affect Risk Taking?' — https://academic.oup.com/qje/article-abstract/126/1/373/1901343?redirectedFrom=fulltext '(Over)insuring Modest Risks’ — https://www.jstor.org/stable/25760237 'The Mismatch Between Life Insurance Holdings and Financial Vulnerabilities: Evidence from the Health and Retirement Study' — https://www.aeaweb.org/articles?id=10.1257/000282803321455340 'Saving and Life Insurance Holdings at Boston University - A Unique Case Study' — https://www.jstor.org/stable/23877728 'Who is internationally diversified? Evidence from the 401(k) plans of 296 firms' — https://www.sciencedirect.com/science/article/abs/pii/S0304405X16302483?via%3Dihub 'Is conflicted investment advice better than no advice?' —  https://www.sciencedirect.com/science/article/abs/pii/S0304405X20301537 'How Does Household Portfolio Diversification Vary with Financial Literacy and Financial Advice?' — https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.12231 'Financial Advice and Individual Investor Portfolio Performance' — https://www.jstor.org/stable/41493871 'Financial advisors: A case of babysitters?' — https://www.sciencedirect.com/science/article/abs/pii/S0378426611002548 'Professional financial advice, self-control and saving behavior' — https://onlinelibrary.wiley.com/doi/10.1111/ijcs.12480 'Do contracts influence comprehensive financial advice?' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1429807 'The Value of Financial Advice' — https://www.forbes.com/sites/wadepfau/2015/07/21/the-value-of-financial-advice/?sh=6b13feda1333