Money For the Rest of Us

The podcast discusses the importance of risk management in investing, analyzing historical trends in stock and bond performance, and exploring the wealth-building potential of dividend reinvestment. It compares U.S. and Non-U.S. stocks for retirement investing, emphasizing the need for flexibility and diversification in financial planning.

Why respected investors and economists believe India will be the fastest growing economy and potentially best-performing stock market over the next two decades. What are the risks that could prevent that from happening?In this episode you will learn:Why the economy in India hold so much promise and what are the risks.What is a reasonable return expectation for the India stock market.What are passive and active options for investing in India.For show notes and more information on this episode click here.[0:18] What others are saying about Indian investments.[1:53] How India’s culture influences its investing.[5:41] A simplified glance at investing in India.[7:19] Current politics in India.[11:15] Positive aspects of India’s economy.[13:00] The challenges to consider.[16:59] What to invest in within India.[18:59] A look at active management in India.[21:07] In conclusion…should you invest in India?See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Here are precautions we can take to avoid ponzi schemes and not become victim to investment fraud. In this episode you’ll learn:What are sources to determine the background of individuals and firms who are selling investment products and advice.What is the difference between registered investment advisors, registered investment companies and registered securities.How to analyze performance and fees to make sure they are acceptable before we invest.Why we need to be more wary if securities are not registered.Thanks to LinkedIn and Sleep Number for sponsoring the episode.For show notes and more information on this episode click here.[0:17] Personal stories surrounding fraudulent investment schemes.[2:38] The importance of authentic registration.[4:28] Who you are working with, and what are they promising?[6:34] Registered securities and registered investment companies.[8:41] Disclosing information properly when being compensated.[12:07] Deciphering performance claims.[16:37] Understanding what the fees are paying for.[18:37] Precautions to implement against fraud.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How the increase in indexing is leading to the creation of more stock indexes, most of which are used by active managers. How more indexing makes it more difficult for active managers to outperform even though managers are getting more skilled. Thanks to TripActions and WIX for sponsoring the episode.For show notes and more information on this episode click here.[0:22] Definition of “alpha.”[0:49] Why there are so many indexes available.[4:35] The business of indexing.[7:01] The criteria that index providers use.[8:04] The cost of change in the index.[10:27] How some companies create ETFs.[12:44] Understanding the complexity of indexes and ETFs.[15:30] The influence of passive management on active management skills.[20:42] Understanding all the underlying facets of an index.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Why an inverted yield curve is disconcerting given such low interest rates. Why those low rates could lead to radical central bank policies during the next recession. Thanks to Policy Genius and Blinkist for sponsoring the episode.For show notes and more information on this episode click here.[0:23] Yield curve inversion has generally led to a recession.[3:00] Stock market behavior during a recession.[5:19] Why has the yield curve inverted?[7:04] Understanding who controls and defines the policy rate[14:42] Why can’t the economy support higher interest rates?[20:08] Fear of the lower bound.[22:15] Tools to keep inflation growing.[25:31] What we should be doing to protect against what the central banks don’t know.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#245 With more and more college degrees being granted and higher student loan balances, when does it make sense to go to a highly selective college or to college at all? What can increase earnings more than just having college degree? Thanks to TripActions and Shipstation for sponsoring the episode.For show notes and more information on this episode click here.[0:17] The price paid by parents for their children’s prestigious degrees.[3:28] David’s college experience.[5:14] Does ambition or a selective school earn more?[7:44] The influence of family background.[9:32] The importance of college networking.[10:30] Overcoming discrimination.[12:12] College degrees as hiring filters.[15:45] How much student debt should you take on?[20:28] Student loan forgiveness.[23:36] Is college worth it?See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#244 How we can use filters to better manage how much we spend and make sure our spending has a meaningful impact on ourselves and the world. Thanks to EveryPlate and LinkedIn for sponsoring the episode.For show notes and more information on this episode click here.[0:16] The FIRE movement and how much you need to retire early.[1:23] What are we supposed to be seeking?[3:23] How do we define the “bare necessities?”[8:58] The superfluous things in life are what we spend our money on.[11:12] Finding joy vs. chasing pleasure.[13:51] Skills to reduce spending in order to retire early.[15:41] Establishing filters to lessen our spending.[18:51] Rethinking materialism.[21:01] There will always be more.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#243 What are the key metrics to determine if you have reached financial independence and can retire early. How major stock market losses can derail early retirement plans and what to do about it. Thanks to Sleep Number and Blinkist for sponsoring the episode.For show notes and more information on this episode click here.[0:19] Interview opportunity with Suze Orman.[1:15] FIRE: Financially Independent Retire Early.[2:06] Suze’s response to the FIRE movement.[3:36] Controversy over the motives driving FIRE.[6:42] Understanding the math of early retirement.[12:46] How a market loss would affect your early retirement plan.[17:26] Would the FIRE community be better prepared for a market crash?[19:03] Modeling out different paths to help prepare against catastrophe.[22:28] Utilizing different portfolio drivers.[23:53] Viewing early retirement success in terms of probability.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#242. Does it make financial sense to buy Berkshire Hathaway stock and let Warren Buffett and Charlie Munger manage your money? We evaluate Berkshire Hathaway's people, investment process and performance to determine what to do. Thanks to ShipStation and The Great Courses Plus for sponsoring the episode.For show notes and more information on this episode click here.[00:19] Berkshire Hathaway as a money manager.[1:49] Looking at the people to determining who to hire as a money manager.[3:37] What is the succession plan of the founding partners?[5:57] Berkshire Hathaway’s process - a two-pronged approach.[11:49] Understanding the mistakes that Berkshire Hathaway has made.[16:18] Comparing the performance of Berkshire Hathaway to the SP 500.[20:29] Taking the red flags into consideration.[21:51] Warren Buffett’s investment philosophy.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#241 Why modern monetary theory isn't worried about federal budget deficits, why budget deficits never go away and what are the risks if budget deficits get too large. We also explore what else proponents of modern monetary theory believe.For show notes and more information on this episode click here.[0:22] What is Modern Monetary Theory?[3:20] Taxes create demand for fiat money.[5:32] Taxes and government bonds don’t finance the federal government.[8:56] Budget deficits increase the net financial assets of theprivate sector.[13:16] Taxes destroy money.[13:46] The private sector determines the size of the budget deficit.[14:58] The concerns of crowding and losing faith.[19:08] Even government spending has to be constrained.[20:02] The dangers of the Federal Reserve controlling interest rates.[21:45] Modern Monetary Theory is correct in terms of how the economy actually works.[23:25] Do federal budget deficits matter?See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.