Making Money

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.

Vicky Reynal, a financial psychotherapist and author of 'Money on Your Mind', delves into the emotional intricacies of our relationship with money. She highlights how feelings of shame and guilt can lead to financial anorexia and self-sabotage. The conversation navigates the challenges of financial success, particularly for those from working-class backgrounds, and emphasizes the importance of open discussions about money. Vicky also discusses the impact of emotional health on financial behaviors and the significance of teaching children about money management.

Sara Jane Maxwell, a financial coach and founder of Wealth Coach, shares her expertise on navigating financial disagreements in relationships. She emphasizes the importance of open communication about spending and saving habits. The podcast discusses emotional challenges couples face regarding money, including differing financial backgrounds and contributions. Sara advocates for structured 'money dates' to enhance financial harmony and understanding. She also introduces visualization techniques to reflect on personal financial relationships and promotes celebrating financial achievements.

Rob Dix, Co-founder of Property Hub and an experienced landlord and tenant, dives into the changing landscape of buy-to-let investments. He discusses the declining number of landlords and the impact of government policies on the market. The conversation highlights the complex dynamics between landlords and tenants amidst rising rental costs. Rob shares insights into navigating compliance challenges and the ethical nuances of property investment, leaving listeners with a nuanced perspective on the future of buy-to-let in the UK.

Dimitri Vayanos, a Professor of Finance at the London School of Economics, dives into the impacts of passive investing, now dominating 60% of US stock funds. He discusses its role in driving up company valuations and potential market volatility. The conversation contrasts passive and active strategies, emphasizing how individual investors may be swayed by trends. Vayanos also explores the risks of over-reliance on major firms and the need for diversification in today’s financial landscape.

Join financial advisor Peter Lawlor, with over 30 years of experience in defined benefit pensions, as he demystifies the complexities of these schemes. He explains how DB pensions guarantee income and the implications of recent regulatory changes, particularly in the NHS. Peter discusses the risks and rewards of transferring out of DB schemes, emphasizing the importance of understanding pension rules. Listeners will learn to navigate the financial landscape, make informed retirement decisions, and avoid potential scams effectively.

Ursula Danagher, a seasoned family lawyer with over 30 years of experience in divorce and prenuptial law, shares invaluable insights on financial planning for couples. She argues that getting a prenup isn't just for the wealthy; it's smart for everyone. Ursula discusses the necessity of open financial conversations in relationships and the importance of prenuptial agreements to protect individual assets. She highlights the often-overlooked contributions of partners and stresses that transparency can prevent conflicts down the line.

Dan Neidle, a tax expert and former lawyer who leads Tax Policy Associates, argues against wealth taxes as a solution to tax fairness. He highlights the inefficiencies of current tax systems and suggests that a land tax could be a more equitable option. The conversation includes critiques of common tax narratives, the challenges of political reform, and misconceptions about taxing the wealthy. Neidle's insights draw from his extensive experience to advocate for simpler, evidence-based tax policies that foster productivity and address systemic inequalities.

Anatole Kaletsky, Chief Economist at Gavekal and author of Capitalism 4.0, dives into today's economic turmoil. He warns of a looming recession in the U.S. and potential fiscal crises in the UK, pointing out that both countries cling to outdated economic ideologies. Kaletsky critiques current financial strategies and advocates for new frameworks tailored to today’s realities. He also highlights the power of narrative in economics, urging a fresh perspective on fiscal policies as political landscapes shift globally.

Russell Napier, a financial historian and author of The Anatomy of the Bear, dives into the lessons that history offers for today’s investors. He humorously reflects on major financial blunders from institutions, emphasizing the importance of understanding human behavior in economics. The discussion also tackles the balance between active and passive investment strategies and the role of index funds in making markets more accessible. Napier stresses humility, long-term strategies, and the need to adapt to inflation and technological changes in our investment approaches.