Episodes

  • ETF Madness

    ETF Madness
    Jul 16 2025
    Don and Tom dive into the wild world of “speculative” ETFs inspired by Jason Zweig’s WSJ piece, mocking the absurdity of funds like the Icelandic stock market ETF (35 stocks, really?) and those tracking things like crude oil shipping futures. They debunk the myth that “ETF” means safe and highlight the rise of investing as entertainment. Later, they discuss disclaiming inherited assets, why tax planning and estate titling matter, and why deferred compensation plans should be part of a bigger strategy—not just a reaction. Listener calls from Maryland, Sammamish, Yelm, and Illinois round out the episode with smart, practical retirement planning questions. 0:17 ETFs as sport? Jason Zweig’s takedown of gimmicky, risky ETFs 1:29 Iceland ETF, HVAC stocks, and crude oil transport—this isn’t investing 3:35 GLCR: The Iceland ETF with a 1% fee and a chilly 35-stock portfolio 5:09 Diversification vs. “D-versification” and the illusion of ETF safety 5:40 Why investing shouldn’t feel exciting—and what that says about us 6:50 Zweig’s gambling metaphor and why “just 5%” is still real money 8:56 Listener Eugene on inheriting IRAs and disclaiming taxable accounts 12:25 Legal disclaimers: IRS Rule 2518, timing, and why PODs are cleaner 15:23 Estate attorney reminders and state law disclaiming quirks 17:24 Sammamish listener Jason on VXUS vs. VEA for international exposure 18:56 Tesla talk: Waiting for $400, fears, and the balance sheet debate 22:03 Listener Chris from Yelm: Deferred comp vs. dividend stocks 26:34 Chris needs a real plan, not just portfolio improvisation 29:40 Strategy: Spend from taxable, defer the deferred 33:03 Listener Joni from Illinois: Maxing contributions and Roth eligibility 35:58 Congress’ oddly specific 60–63 catch-up rules and K Street lobbying Learn more about your ad choices. Visit megaphone.fm/adchoices
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    45 mins
  • Melt-Up or Melt-Down?

    Melt-Up or Melt-Down?
    Jul 15 2025
    Don and Tom take on the ever-persistent phrase “This time it’s different,” as Bloomberg and NYT articles suggest AI, financial fragmentation, and inflation have permanently changed the investing game. The duo questions whether these changes actually warrant different investing behavior—or if they’re just the latest in a long line of panics dressed up as paradigm shifts. Along the way, they debate market melt-ups, the logic of diversification, and why equities pay more (hint: it’s not because they’re safe). Listeners call in with questions about ETFs in IRAs, Roth conversions later in life, and tax-savvy asset allocation across accounts. 0:04 Perspective from aging: we’ve heard “this time is different” before 1:58 AI panic, financial fragmentation, and inflation—Bloomberg’s argument 3:31 Don and Tom challenge claims of “new” market conditions 5:08 AI voice cameo: Cath makes her show debut 6:05 What should investors do if things are different? 9:00 NYT’s Jeff Sommer warns of a potential market “melt-up” 10:08 Irrational exuberance: unprofitable stocks soaring 12:57 Why risk still pays: stocks go up and down 15:02 Smooth ≠ profitable: bonds are boring, stocks reward fear 18:23 Listener asks: Why own international if U.S. wins? 20:34 Diversification vs. chasing past performance 23:42 Call: ETFs vs. mutual funds inside retirement accounts 29:36 Call: Should a 79-year-old convert to a Roth? 36:53 Call: Asset location strategy and inherited IRA cash flow 41:36 Don’s final advice: no tax tricks—just make a plan Learn more about your ad choices. Visit megaphone.fm/adchoices
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    48 mins
  • Income Generation

    Income Generation
    Jul 14 2025
    Tom returns from his surprise Canadian adventure and the duo dive into the age-old retirement question: How do I get my money out? They break down the three most common withdrawal strategies—dividends, total return, and hybrid—and make the case for why a well-managed total return strategy usually comes out on top. Listener questions cover Roth IRA gifts to a niece, inherited IRA distribution rules, Paul Merriman’s small-cap stance, and whether long-term care insurance is a smart bet or an emotional security blanket. 0:04 Tom’s Canadian re-entry, Uber tally, and chocolate croissant confessions 1:27 Intro to retirement income strategies: the great withdrawal confusion 2:52 Strategy #1: Living off dividends—why it’s flawed and risky 5:19 Strategy #2: Total return—rebalancing for sustainable income 8:07 Strategy #3: Hybrid approach—Don’s skeptical take 10:51 Listener Q&A: Best way to gift a Roth IRA to a 30-year-old niece 12:01 IRA inheritance rule: what happens if the inheritor dies 13:33 Paul Merriman’s international small-cap comment clarified 16:44 Federal retiree asks about withdrawal order; daughter’s international allocation 24:28 Long-term care insurance: practical planning or expensive gamble? 27:35 How to get a free, pressure-free portfolio review from the team Learn more about your ad choices. Visit megaphone.fm/adchoices
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    33 mins
  • Big Q&A DAY

    Big Q&A DAY
    Jul 11 2025
    Don tackles six listener questions in a rare full-stack Q&A Friday. He breaks down a shady universal life insurance pitch, dismantles the myth of “smart” market timing with limit orders, and offers clarity on Roth conversions, rebalancing strategies, and inherited IRA hacks. A master class in how to stop making dumb money moves. 0:04 Intro – Friday Q&A episode with a goal: 6 questions in one show 1:18 How to ask your questions (and why spoken questions get on air) 2:55 Rachel (NC): Friend sold a $7,000+/yr universal life policy — is it a scam? (Yes) 4:09 Breakdown of how much goes to commissions, costs, and investments in year one 6:44 Better choice: Buy term and invest the difference 8:47 Backdoor Roth IRA Timing: Can I convert a 2025 non-deductible IRA in 2026 and still have it count for 2025? (Sort of, but not really) 11:08 Andrew: Used a limit order during market dip to rebalance — did it work or just get lucky? 14:22 Why timing systems (even “disciplined” ones) fail over time 15:23 S&P 500 Addition Bump: Can you profit from companies added to the index? (Unlikely) 17:37 Tesla example and the dangers of trying to front-run institutional traders 18:22 Casey in Albuquerque: What does rebalancing really mean? (All of it—stocks/bonds, small/large, U.S./intl.) 21:21 Eric: Can you offset inherited IRA RMDs by making IRA/401(k) contributions with that income? (Yes, if within limits) Learn more about your ad choices. Visit megaphone.fm/adchoices
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    27 mins
  • Vanguard's Advisor Alpha

    Vanguard's Advisor Alpha
    Jul 10 2025
    Don is joined by Mike DeJoseph from Vanguard to unpack the meaning and real-world impact of Advisor’s Alpha—Vanguard’s research showing how good financial advisors can add up to 3% annually in net value to client portfolios. They break down the origins of the concept (internally coined back in 2001), clarify what alpha actually means, and dig into where that added value comes from: behavioral coaching, tax-efficient strategies, lower costs, smarter withdrawal planning, and disciplined asset allocation. Mike emphasizes that unlike investment alpha, which is a zero-sum game, advisor alpha is a positive-sum benefit rooted in planning and emotional guidance. They challenge misleading marketing from high-fee brokers, expose the damage of poor advisor behavior, and highlight what separates a “good” advisor from a truly great one—namely, those who align clients’ values with their money. The conversation ends with a forward look at AI’s role in advice: not replacing advisors, but augmenting their ability to listen, guide, and support clients like financial therapists. 0:04 Don introduces rare guest: Mike DeJoseph of Vanguard 0:35 The origin of Vanguard’s Advisor’s Alpha paper 1:27 What is alpha? And what makes it positive for advisors 2:49 Advisor value beyond investment products 3:36 Explaining alpha in terms of benchmarks and behavior 5:05 Why investment alpha is rare, but advisor alpha isn’t 6:25 Positive-sum vs. zero-sum advice outcomes 7:37 Misunderstanding the 3% alpha number 9:48 Behavior, taxes, and cost drag reduce investor returns 11:06 How advisors improve tax allocation and drawdown 11:55 3% does not include asset allocation or manager selection 12:06 Why active manager outperformance remains elusive 13:17 Vanguard’s history with active management and costs 14:45 Active equity vs. active bond management 16:14 What makes an advisor “great,” not just good 17:39 Helping clients align money with values 18:27 Behavioral coaching during market downturns 21:07 Holistic financial advice vs. performance promises 21:47 Why 100% fiduciary advisors are rare—and how to spot one 22:45 Advisor compensation models: from commission to fees 24:06 Shocking stat: commissions down from 80% to 10% since 2010 25:16 How smart investors forced the industry to change 26:44 What a 3% fee does to advisor alpha 28:34 Overcharging kills word-of-mouth trust 29:43 What bad advisor behavior looks like 31:45 Vanguard’s approach to advisor education and ethics 33:41 Where the industry goes next: better advice, better business 34:19 AI’s role in improving advice, not replacing it 36:36 Tech that enhances human connection and insight 37:22 The future: more therapist, less product-seller 37:55 Final advice: if they talk about returns, walk away 38:44 Mike reflects on working with great advisors—and Vanguard’s mission Learn more about your ad choices. Visit megaphone.fm/adchoices
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    42 mins
  • Burgers for Bitcoin

    Burgers for Bitcoin
    Jul 9 2025
    Don and Tom kick off this episode by responding to a one-star Apple Podcast reviewer who promised to upgrade to five stars—if they correct their allegedly false Bitcoin claims. Challenge accepted. Don clarifies his earlier “nobody uses Bitcoin” remark by digging into the actual numbers: only 15,000 businesses worldwide accept it, out of over 359 million—roughly 0.0004%, making it statistically more rare than a lightning strike. They also break down the real costs of converting Bitcoin to dollars: while some exchanges charge under 1%, Bitcoin ATMs routinely charge 5–25% in fees, with total costs sometimes exceeding 30%. Then, a listener calls in with a ChatGPT-generated portfolio featuring VUG, VEA, SMH, and AXON. Don tears it apart for being tech-heavy, overly concentrated, and missing broad market exposure—ironically, even ChatGPT agrees with him. Listeners also get advice on why ETFs are gradually replacing mutual funds, when (if ever) annuities make sense, and why indexed annuities are the financial industry’s version of timeshares: opaque, overpriced, and always sold, never bought. Despite the facts and the humor, Don doubts his five-star redemption is coming—but if Greg’s Mowing and Septic accepts Bitcoin, there’s still hope. 0:26 Don confronts repeat negative podcast reviewers 1:35 NavRep’s public offer: “Correct your Bitcoin lies and I’ll give 5 stars” 2:31 Bitcoin rebuttal: 15,000 businesses accept it—out of 359 million 5:13 Teaser: Bitcoin conversion fees part 2 coming up after the break 6:26 Don admits his imprecise “nobody accepts Bitcoin” claim 8:19 Clearing up the 8% Bitcoin conversion fee claim—context was ATMs 9:49 Bitcoin ATM fees average 17.5%, sometimes hit 30% 11:04 Exchange conversion under 1% is possible—but not for quick cash 13:10 Volatility and impracticality still make Bitcoin a poor currency 16:00 ChatGPT jokes: “Beer at a Baptist wedding” & “Greg the mower” 16:49 Caller Jason asks ChatGPT for a portfolio; Don and Tom cringe 17:46 ChatGPT suggested a tech-heavy, overly concentrated portfolio 20:40 Better suggestions: VT, AVGE, DFAW—not VUG/SMH/AXON 21:50 Don’s GPT criticizes Jason’s GPT: “No bonds, no value, no real estate” 23:43 Caller Scott nails TRM’s philosophy and nearly retires Don 26:12 The rare “pros” of annuities—and their bigger downsides 28:24 Indexed annuities: regular income taxed as ordinary income 30:02 Betting against the house: how annuity math favors insurers 31:44 Caller Jane asks if ETFs are better than mutual funds 32:05 ETF settlement is faster, but that’s not a reason to choose 33:30 Vanguard accounts support ETFs beyond their own funds 34:51 Updated: mutual funds now settle T+1, ETFs also T+1 36:26 Jane warned about National Life Group’s indexed annuity pitch 37:07 Why Don hates indexed annuities: high fees, low returns, opaque structure 39:27 Still selling like hotcakes: $27B in indexed annuities sold Q1 2025 40:35 Wrap-up: annuities remain unethical despite legality and popularity Learn more about your ad choices. Visit megaphone.fm/adchoices
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    46 mins
  • Annuity University

    Annuity University
    Jul 8 2025
    In this hard-hitting episode, Don and Tom expose “Retirement Planning University”—a slick, misleading marketing operation posing as a legitimate educational program. Despite hosting seminars at respected universities, the organization isn’t accredited and exists primarily to funnel attendees into high-commission indexed annuities sold by Strategic Wealth Investment Group. The duo break down the tangled relationships, the legal gray zones (including a likely violation of Florida law), and the wildly under-disclosed conflicts buried deep in Form ADV filings. Plus: a call from a skeptical listener about global diversification, a backdoor Roth update in response to H.R.1, a heartwarming tribute to Tom’s mother-in-law, and a brutal real-world annuity pitch targeting grieving beneficiaries. This one hits hard. 0:04 Thunder and fireworks, then a storm of a different kind: fake financial education 1:20 “Retirement Planning University” is not accredited—possibly illegal in Florida 2:38 Florida law: using “university” in a name can be a crime 4:21 Strategic Wealth Investment Group funnels money into their “nonprofit” 6:27 Don breaks down Form 990 and discovers $6.3M in funding with 1.8% used for education 8:50 A never-before-seen conflict disclosure: over a page of indexed annuity conflicts 11:02 Universities that rent space to these events—should they be ashamed? 13:56 Don confesses: used ChatGPT to surface filings, laws, and charity reports faster 15:40 Final verdict: it’s not education—it’s a sophisticated lead funnel 17:18 Caller Jack: Is VT too concentrated in tech megacaps like Apple and Nvidia? 19:22 Don: It’s still globally diversified, but yes, value/small tilts help 21:57 A heartfelt tribute to Tom’s mother-in-law and her one smart money move: LTC insurance 23:01 Caller Mark: Does the new tax bill kill backdoor Roths? 27:18 Don runs the full 900-page bill through GPT—no mention of Roth changes 28:56 Sidebar: elderly elephant tourists and Romanian bear selfies 30:36 Caller Mary: Advisor pitching a 1035 annuity swap to dodge IRMA 34:42 Don and Tom: Just pay the IRMA bump—don’t buy another bad annuity 36:44 The IRMA fear is way overblown; it’s just one year 39:18 Why aren’t these practices banned? Because regulators are stretched thin 40:12 Don taught real adult education classes—but the next “educator” was a broker Learn more about your ad choices. Visit megaphone.fm/adchoices
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    47 mins
  • Brokers and Models

    Brokers and Models
    Jul 7 2025
    Is your portfolio built by a broker or a model? Don and Tom break down the surprisingly persistent patterns of old-school broker portfolios—loaded with local stocks, overpriced “index” funds, and actively managed everything—versus the growing adoption of model portfolios based on actual research (not just a hunch and a handshake). Along the way, they torch high-fee index fund imposters, answer smart listener questions on global diversification, CD ladders, tax traps in variable annuities, and even debate whether a Japanese WWII bomber should really be called “Jill.” Oh, and Tom reads a brutal Apple Podcast review… and takes it like a champ. 0:04 Dumb money habits and the rise of model portfolios 1:23 Bellevue vs Florida weather showdown 2:34 Classic broker-built portfolio ingredients 3:55 Sprinkling in overpriced “index” funds 5:50 What a model portfolio is (and isn’t) 6:53 Structure vs speculation: why models matter 8:31 Global diversification as a simple model 9:18 The difference between advice and product-pushing 10:24 When “index” doesn’t mean cheap: top offender list 11:55 The 2.33% RIDEX fund shame parade 13:02 The Jill bomber sidetrack takes flight 13:54 Listener Laura’s AVDE allocation dilemma 15:40 Two-fund model: Avantis U.S. + international 17:00 Logistical pronunciation issues and Bolden software 18:42 Rate assumptions for planning software 19:35 Tom’s humor gets roasted in a 5-star review 20:52 Listener Carol’s CD ladder tax question 22:38 Timing vs safety: the truth about “dry powder” 24:36 Mitchell’s $550K variable annuity dilemma 26:10 Why annuity gains aren’t capital gains 27:01 Low-cost annuity, but still no step-up 28:11 The opaque, intentionally confusing nature of insurance 29:41 Scheduling complaints and Don’s one-day-off fantasy 32:12 Programming note: no podcast on market holidays 34:04 Calls, questions, and Jill Bomber sign-off chaos Learn more about your ad choices. Visit megaphone.fm/adchoices
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    37 mins