Money For the Rest of Us

#230 With RealtyShares and other crowdfunding platforms shutting down, should you invest on these platforms and if so how do you go about evaluating the investment opportunities. Thanks to Policy Genius for sponsoring the episode. For show notes and more information on this episode click here.[0:30] Check out this episode for David’s experience with real estate crowdfunding investments[2:35] Real estate crowdfunding platforms are comprised of this type of structure[6:57] You want to understand these considerations before making an investment[12:40] Issues began to crop up with David’s investment – learn from his story[18:41] David’s experience with these platforms have not led to a lot of transparency[25:07] There’s not a specific way to determine which real estate crowdfunding platforms are going to survive[30:08] Public and private REITs are another great investment option to considerSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#229 Why modern portfolio theory is a defective way to build out an investment portfolio. This episode explains a better approach to asset allocation.For show notes and more information on this episode click here.[0:11] What is modern portfolio theory?[4:29] There are many downfalls to relying on this theory while investing[7:05] We should prepare for the worst possible outcome when investing, not the average positive outcome[14:08] The true goal of investing should be about “minimizing your maximum regret in the meta-game”[18:34] There isn’t the best “right answer” with your portfolio[25:15] Maximization of anything doesn’t work in today’s environmentSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#228 How distributed ledger technology and tokenized assets will increase liquidity, transparency and fractionalization, allowing investors to purchase very small, liquid positions in real estate, private companies, art and other assets. Thanks to LinkedIn for sponsoring the episode.For show notes and more information on this episode click here.[0:12] Stocks ownership used to be tied to paper certificates, but there’s a problem with electronic records as well[10:00] Proxy voting in trading can lead to complicated issues that are almost impossible to solve with certainty[17:40] Tokenization could be a solution to today’s convoluted trading system[22:38] A new type of distributed ledger would allow for asset-backed tokens[27:03] There are some challenges to tokenization that need to be addressedSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#227 Here are four most important things to teach children about money and why showing is better than telling when it comes to kids and money. Thanks to CNote for sponsoring this episode.For show notes and more information on this episode click here.[2:58] Here’s how you can start teaching children about money[5:30] #1 - The right attitude about money comes with a balance of respect, understanding, and trust[8:40] #2 - Healthy relationships with money come with accountability and choice[11:38] #3 - Money is tied to work[20:25] #4 - Avoid the wrong kinds of debt[22:51] #5 - Teaching kids about money is often about “just in time” learningSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#226 What are the characteristics of an asset bubble and how to invest when one exists. Are cannabis stocks in a bubble? Thanks to Blinkist and Policy Genius for sponsoring this episode.For show notes and more information on this episode click here.[0:10] Is the cannabis industry in an asset bubble right now?[4:41] Public conversation is often a sign of an asset bubble[8:19] Hopeful assumptions are often what drive an asset bubble environment[13:24] Tesla can be considered an example of a micro-bubble[21:57] You can handle an asset bubble in a variety of waysSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#225 How to evaluate interest rate risk, credit risk and other factors when investing in bonds. Thanks to Sleep Number for sponsoring the episode.For show notes and more information on this episode click here.[0:11] Predicting interest rates can be tough - here are some things to consider[4:28] What determines the rate of return if you invest in bonds or fixed income securities?[7:00] Bond prices fluctuate as interest rates change[15:30] Data on default rates for bonds and other investment strategies[19:40] Consider this before deciding whether or not to hold bonds[23:13] Passive vs active investment strategies in bonds and other fixed-income securities[25:35] Why would you own a long duration bond?[34:19] There isn’t a single right answer when it comes to bonds and fixed income securitiesSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#224 How to position your investment portfolio based on market cycles. Investing principles from Howard Marks' new book Mastering the Market Cycle. Thanks to CNote and LinkedIn and for sponsoring today's episode.For show notes and more information on this episode click here.[0:11] Howard Marks’ new book is the inspiration for this episode of Money For the Rest of Us[7:13] The first tool in learning how to invest during a market cycle[11:49] The second tool in learning how to invest during a market cycle[18:00] Successful investing involves a mix of skill and luck[25:30] There’s no way of knowing where the bottom of a market may be[26:30] We are not in a period of extreme risk or opportunity in today’s US economySee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#223 How commission free ETFs, mobile apps and zero fee index funds make it easier to invest if you have little money. What are some examples of commission fee ETFs and funds for Vanguard, Fidelity, Robinhood and TD Ameritrade. Thanks to Blinkist for sponsoring this episode.For show notes and more information on this episode click here.Episode Chronology[0:14] Here’s how to invest when you have little money[4:26] How do brokerage firms make money if they don’t charge commissions? [11:37] What happens to investments if a brokerage firm goes bankrupt?</li> [18:14] Thoughts on investing with a very simple portfolio [27:35] A lack of money is no excuse to not investSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#222 How asymmetric information, price discrimination and the stories we tell ourselves contribute to artificial profits and income inequality. Thanks to CNote for sponsoring today's episode. For show notes and more information on this episode click here.[0:20] Rents, overpayments, and income inequality are all side effects of market distortions[8:55] Value-based pricing vs pricing based solely on cost[17:13] Pricing is inextricably tied to the stories we tell about ourselves and to others[22:30] Consumers need to consider these 4 things when evaluating the cost of goods and services See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#221 How the Great Financial Crisis changed how individuals and institutions invest, and why we shouldn't invest solely focused on the next crisis. Thanks to CNote for sponsoring today's episode.For show notes and more information on this episode click here.[0:40] Overview of how the 2008 financial crisis continues to impact investing today[6:48] Data on current investments and the stock market[8:40] How you invest depends on your experience in the 2008 crisis[11:41] Future investing is enveloped in big questions and unknown variables[16:10] The great financial crisis impacted both individuals and institutions[19:58] Should you invest in preparation mode for the next crisis?[26:00] Invest smartly by separating speculations from investments[28:40] Consider this when investing and thinking about the future of the marketSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.