Making Money

Helen Miller, Director of the Institute for Fiscal Studies, dives into the UK's pressing tax and public service challenges. With tax levels at record highs and public services under strain, she emphasizes the need for honest political dialogue about reform. Miller argues for bold, comprehensive tax changes to avoid punitive measures for citizens. She also discusses the implications of rising costs in healthcare and welfare, urging for long-term planning in taxes and pensions to ensure sustainability. Overall, she offers a cautiously optimistic view on potential solutions.

Joe Dabrowski, Deputy Director of Policy at Pensions UK, shares insights into retirement planning. He reveals that around 70% of people lack a retirement plan, leading to inadequate savings. Joe discusses the Retirement Living Standards, outlining the costs for different lifestyles and stressing the importance of personalizing these standards. He highlights the achievement of auto-enrollment while warning about gaps, especially for the self-employed. Joe also encourages immediate steps for better retirement readiness, like checking pensions and increasing contributions.

Georgie Frost, Editor-at-large at Times Money Mentor, shares her inspiring journey from significant debt to financial journalist. She discusses the importance of starting to invest later in life, emphasizing that it's never too late to begin. Georgie reveals her own debt struggles and the pivotal moments that led her to rebuild her finances. She offers practical advice on consolidating pensions and the challenges with government policies affecting savings. The episode is full of actionable insights on managing debt while building wealth.

Elroy Dimson, a stock market expert and emeritus professor at London Business School, sheds light on the evolution of stock market research and its implications for future investment returns. He discusses the pitfalls of survivorship bias and the importance of quality data in analyzing long-term trends. The conversation dives into the ideals of American exceptionalism in investing and contrasts Norway's innovative management of its sovereign wealth fund with traditional approaches. Dimson emphasizes the need for careful long-term strategies in a changing market landscape.

The hosts celebrate their milestone by sharing humorous moments and reflecting on past content. They discuss early investment lessons, highlighting the importance of learning from both successes and failures. Strategies for managing tax stress are explored, focusing on separating funds for peace of mind. The evolution of their investment strategies is revealed, shifting towards stability and long-term growth, along with a commitment to charitable giving. They also provide insights into podcast production and the challenges of securing sponsorships.

Ramin Nakisa, host of Pensioncraft and an expert in finance, dives into the allure and complexity of investing in gold. He discusses its recent price highs, the emotional significance of personal gold items, and the challenges posed by rising interest rates. The conversation also covers the geopolitical factors influencing gold investment and the potential risks of viewing it as an inflation hedge. With insights on asset allocation and the evolution of mining technology, Ramin highlights gold's critical role in retirement portfolios and the ongoing dynamics of the investment landscape.

Alice Guy, former Head of Pensions at Interactive Investor and a qualified chartered accountant, shares her expertise on maximizing your defined contribution pension. She breaks down essential strategies like salary sacrifice and how to effectively claim tax relief. The conversation covers common pitfalls that could cost you thousands, and the importance of proactive saving, especially for self-employed individuals. Guy emphasizes understanding your pension options and the value of personal investment to secure a comfortable retirement.

Andrew Leigh, an economist and Australian MP, shares insights on AI's potential to transform living standards, likening it to the Industrial Revolution. He discusses the historical stagnation of Japan and how technological advancements can rejuvenate productivity. The conversation also addresses economic inequality, particularly through Piketty's equations, emphasizing the importance of innovative solutions. Leigh emphasizes the evolving role of education in a tech-driven world and questions the true relationship between money and happiness.

Louise Hill, co-founder and CEO of GoHenry, shares insights on teaching children financial responsibility through innovative tools. The conversation highlights the importance of distinguishing between allowances and chore compensation. Hill discusses the challenges parents face in a digital age, emphasizing the role of the GoHenry app in fostering financial literacy. She also addresses the significance of letting kids learn from financial mistakes and the need for schools to implement mandatory financial education, preparing future generations for empowered money management.

Tim Harford, an economist and author of 'How To Make The World Add Up', discusses the risks of sticking rigidly to investment strategies in changing markets. He delves into the historical lessons from economists like Fisher and Keynes, emphasizing adaptability. The conversation covers the debate between index funds and actively managed funds, the hidden costs of high management fees, and the necessity of simplifying financial concepts. Tim also addresses the psychological and emotional aspects that influence investing decisions, advocating for mindful, informed approaches to wealth.