Episode 286: Errol Morris: Tuning out the Noise

In this episode, we explore the intricate world of home-country bias in investment decision-making and learn the secret sauce to effective communication and writing. We start by discussing the definition and influence of home-country bias and explore why investors tend to overweight their portfolios with domestic equities despite global opportunities. We dissect the home bias puzzle, the rationality behind bias, and the conditions under which home-country bias makes sense. Then, Mark McGrath joins us to unpack the complexities of segregated funds and why it might not be the investment product you were hoping for. Following that, we sit down with  Todd Rogers, a prominent behavioural scientist and professor, to discover the science behind effective communication. He explains how we adapt to different communication styles and techniques over time, the foundations of effective communication, and much more. Be sure to tune in as we unravel the complexities of investing, navigate the world of behavioural science, and bring you the tools you need for financial success!

Key Points From This Episode:

(0:00:00) Episode introduction and what listeners can expect.

(0:01:30) Definition of home-country bias and its influence on investors.

(0:04:25) Unpack the home bias puzzle and Canadian home bias trends.

(0:08:27) Discover the conditions when home bias may make sense.

(0:13:10) Relative economic standing: an important aspect of home-country bias.

(0:15:00) Explore home-country bias through a quantitative lens.

(0:20:28) Common concerns of overweighting a small market cap.

(0:27:21) Mark to Market: the good, bad, and complicated side of segregated funds.

(0:31:24) Dissect the proposed benefits of segregated funds.

(0:39:07) Discover the drawbacks and pitfalls of segregated funds.

(0:44:05) Alternatives to segregated funds and Mark’s main takeaways.

(0:46:50) Highlights from our conversation with Professor Vanessa Bohns.

(0:49:38) Introducing today’sguest Todd Rogers, behavioural scientist and professor.

(0:51:37) Learn about the science behind effective writing and communication.

(0:53:48) Thedecision-making process when receiving new information.

(0:56:18) Todd shares thesix principles of effective writing.

(0:58:28) When to send a message, why less is more, and tips for effectively communicating.

(1:06:32) Advice for using emojis and hyperlinks and the impact of bolding and highlighting.

(1:12:35) The impact of AI on effective writing and the importance of good writing.

(1:19:45) Final takeaways, book recommendations, listener reviews, and more!

Links From Today’s Episode:

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — https://rationalreminder.ca/

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://twitter.com/RationalRemind

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/
Mark McGrath on X — https://twitter.com/MarkMcGrathCFP

Home-country Bias YouTube Video — https://www.youtube.com/watch?v=qYedjI03Q0g

Assuris — https://assuris.ca

Canadian Investor Protection Fund — https://www.cipf.ca/

The Money Scope Podcast — https://moneyscope.ca/

Professor Vanessa Bohns — https://www.vanessabohns.com/

Professor Vanessa Bohns on X — https://twitter.com/profbohns

Professor Vanessa Bohns on Instagram — https://www.instagram.com/profbohns/

Professor Vanessa Bohns on LinkedIn — https://www.linkedin.com/in/vanessa-bohns-33219710/

Professor Vanessa Bohns on Goodreads — https://www.goodreads.com/author/show/21035835.Vanessa_Bohns

Todd Rogers on LinkedIn — https://www.linkedin.com/in/todd-rogers-6ba447/

Todd Rogers on X — https://twitter.com/Todd_Rogers_

Harvard University — https://www.harvard.edu/

Analyst Institute — https://analystinstitute.org/

EveryDay Labs — https://www.everydaylabs.com/

The Behavioural Insights Team — https://www.bi.team/

Behavioral Science & Policy Association (BSPA) — https://behavioralpolicy.org/

Six Principles Checklist —

GPT-4 — https://openai.com/research/gpt-4

Women's Wealth: Investing Basics for Women Webinar —

Books From Today’s Episode:

You Have More Influence Than You Think — https://www.amazon.com/dp/1324005718/

Writing for Busy Readers — https://www.amazon.com/Writing-Busy-Readers-Communicate-Effectively/dp/0593187482

Index Funds: The 12-Step Recovery Program for Active Investors — https://www.amazon.com/Index-Funds-12-Step-Recovery-Investors-ebook/dp/B0CL2Z23CT/

The Elements of Style — https://www.amazon.com/Elements-Style-Fourth-William-Strunk/dp/020530902X

The Psychology of Money — https://www.amazon.com/Psychology-Money-Timeless-lessons-happiness/dp/0857197681

The Fund — https://www.amazon.com/Fund-Bridgewater-Associates-Unraveling-Street/dp/1250276934

Anatomy of a Breakthrough — https://www.amazon.com/Anatomy-Breakthrough-Unstuck-When-Matters/dp/1982182962

The Score That Matters — https://www.amazon.com/Score-That-Matters-Excellence-Yourself-ebook/dp/B0CGZ8HRXD

The Algebra of Wealth — https://www.amazon.com/Algebra-Wealth-Formula-Financial-Security/dp/0593714024

Papers From Today’s Episode:

‘Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice’ — https://dx.doi.org/10.2139/ssrn.4590406

‘Global equity investing: The benefits of diversification and sizing your allocation’ — https://corporate.vanguard.com/content/dam/corp/research/pdf/Global-equity-investing-The-benefits-of-diversification-and-sizing-your-allocation-US-ISGGEB_042021_Online.pdf

In this episode, we delve into the world of mindfulness and meditation with renowned author and meditation advocate, Dan Harris. In our conversation, Dan shares his personal journey from a high-stress career in the news to discovering the transformative power of mindfulness meditation. We explore Dan's best-selling book, 10% Happier which chronicles his exploration into mindfulness practices after experiencing a panic attack on live television. We discuss how Dan's quest for inner peace led him to explore meditation, the core principles of Dan's 10% Happier philosophy, and how mindfulness can lead to incremental but significant improvements in happiness. Discover why Buddhism is a religion that skeptics can line up behind, the intersection of mindfulness and financial decision-making, and the importance of empathy and self-awareness for financial advisors. Gain insights into applying mindfulness principles to everyday life, strategies for building the skill of happiness, the basic steps to start meditating, and much more! Join us on this insightful journey as we explore how mindfulness can truly transform lives and empower individuals to live with greater purpose, happiness, and fulfillment with Dan Harris!

Key Points From This Episode:

(0:04:49) Dan shares his journey from a high-stress career in news to discovering mindfulness meditation.

(0:06:48) What mediation is, why he initially thought it was nonsense, and why he changed his mind.

(0:09:11) Unpack the idea of mindfulness and the science that backs up the claims.

(0:11:22) The main thesis of Buddhism and its link to meditation. 

(0:14:02) How mindfulness can help manage emotions, improve focus, and enhance relationships in everyday life. 

(0:15:48) He shares how difficult it was for him to embrace the concept of meditation. 

(0:21:12) Discover what motivated him to explore meditation and mindfulness practices. 

(0:21:12) Recommendations to start meditating and how long it takes to form a habit of it.

(0:26:56) Insights on applying mindfulness principles to financial decision-making. 

(0:28:29) Explore the benefits of meditation for the comparing mind and the wanting mind. 

(0:30:59) How mindfulness meditation has influenced his financial decision-making. 

(0:33:20) The principles of 10% Happier from the perspectives of a client and advisor. 

(0:35:45) Strategies for making your own happiness and cultivating contentment. 

(0:41:03) Transitioning from a career in news to focusing on mindfulness advocacy and podcasting. 

(0:42:32) His biggest lessons since writing the book and his most influential podcast guest. 

(0:48:26) Hear about Dan’s version of success and happiness.

Links From Today’s Episode:

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://twitter.com/RationalRemind

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Dan Harris — https://danbharris.komi.io/

Dan Harris on X — https://twitter.com/danbharris

Dan Harris on Instagram — https://www.instagram.com/danharris/

Dan Harris on Facebook — https://www.facebook.com/DanHarrisABC

Dan Harris on YouTube — https://www.youtube.com/c/TenPercentHappier

Dan Harris on TikTok — https://www.tiktok.com/@danbharris

10% Happier — https://www.tenpercent.com/

Ten Percent Happier Podcast — https://www.tenpercent.com/podcast

‘Finding and Funding a Good Life’ — https://www.pwlcapital.com/finding-and-funding-a-good-life/

Dan Harris: Celebrating 10 Years of 10% Happier — https://www.symphonyspace.org/events/vp-dan-harris-10-happier-10-year-anniversary

Emma Seppälä — https://www.emmaseppala.com/

Dalai Lama — https://www.dalailama.com/

Joseph Goldstein — https://www.dharma.org/teacher/joseph-goldstein/

Books From Today’s Episode:

10% Happier — https://www.goodreads.com/en/book/show/18505796

After a year and a half hiatus from discussing Bitcoin, we felt compelled to explore the implications of the US Securities and Exchange Commission's approval of 10 spot Bitcoin ETFs for trading. In this episode, we dive into the recent news surrounding Bitcoin and its entry into the mainstream investment landscape through spot Bitcoin ETFs. To help us unpack this topic is Eric Balchunas, a seasoned ETF analyst at Bloomberg Intelligence and host of the Trillions Podcast. Eric brings a wealth of knowledge on ETFs and offers valuable insights into the intersection between traditional financial markets and the cryptocurrency space. Join us as we discuss the implications of Bitcoin ETFs trading on regulated exchanges and the impact on its overall anti-establishment identity, the intricacies of approved cash creation and redemption limitations, what Bitcoin ETFs are backed by, the transparency and potential vulnerabilities of Bitwise, and the complexities of navigating anti-money laundering aspects within Bitcoin transactions. You’ll learn how financial advisors are likely to leverage spot Bitcoin ETFs, who stands to benefit the most from Bitcoin ETFs, the broader implications for the investment landscape, why Bitcoin is like Tabasco sauce, and more! Tune in for a captivating exploration of Bitcoin's journey into the mainstream investment arena, with Eric Balchunas.

Key Points From This Episode:

• (0:04:29) Reasons that Canada officially embraced Bitcoin sooner than the USA. 
• (0:05:55) Why spot Bitcoin ETFs took longer to be approved by the SEC than futures ETFs. 
• (0:07:54) Which ETF regulations have changed to allow a spot Bitcoin ETF. 
• (0:09:42) Approved cash creation and redemption limitations.
• (0:12:46) What spot Bitcoin EFTs are backed by. 
• (0:17:15) Bitwise: how it demonstrates transparency and the potential for sabotage. 
• (0:19:38) How authorized participants will deal with anti-money laundering aspects of Bitcoin transactions. 
• (0:21:31) How spot Bitcoin ETFs have been trading relative to their net asset value. 
• (0:22:42) The amount of value flowing into Bitcoin ETFs. 
• (0:27:23) Differentiating Newborn Nine ETFs from one another. 
• (0:31:57) Benefits of Bitcoin being made available through an ETF. 
• (0:34:21) The impact spot Bitcoin ETFs have had on Bitcoin's identity. 
• (0:38:04) Who has benefited the most from the adoption of spot Bitcoin ETFs.
• (0:40:36) Comparing spot ETFs starting trade to what was predicted by crypto enthusiasts. 
• (0:44:36) Vanguard's decision to not allow the spot Bitcoin ETFs on their platform. 
• (0:48:19)How financial advisors will leverage spot Bitcoin ETFs. 
  
  

Links From Today’s Episode:

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://twitter.com/RationalRemind

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Eric Balchunas on LinkedIn — https://www.linkedin.com/in/ericbalchunas/

Eric Balchunas on X — https://twitter.com/EricBalchunas

Bloomberg — https://www.bloomberg.com/

Trillions — https://www.bloomberg.com/podcasts/series/trillions

U.S. Securities and Exchange Commission — https://www.sec.gov/

Bitwise — https://bitwiseinvestments.com/

Bitwise Bitcoin ETF — https://www.sec.gov/Archives/edgar/data/1763415/000199937124000346/bitcoin-424b3_011024.htm

Coinbase — https://www.coinbase.com

BlackRock — https://www.blackrock.com

Grayscale Bitcoin Trust ETF (GBTC) — https://etfs.grayscale.com/gbtc

Vanguard — https://investor.vanguard.com/

Bitcoin — https://bitcoin.org

Books From Today’s Episode:

The Bogle Effect — https://www.amazon.com/Bogle-Effect-Vanguard-Investors-Trillions/dp/1637740719

In this episode, we welcome Rob Copeland, author of the recently released book The Fund: Ray Dalio, Bridgewater Associates, and the Unraveling of a Wall Street Legend. Rob, a finance reporter for The New York Times, provides a gripping account of the rise and unravelling of Ray Dalio and Bridgewater Associates. Bridgewater Associates, one of the prominent hedge funds on the planet, is synonymous with the legendary investor Ray Dalio. In our conversation, we delve into the intricacies of the company's investment portfolio, shedding light on the details that contribute to its success, and dissect Ray's supposedly revolutionary model of economic cycles. Discover the unconventional principles that shape Bridgewater's culture, from believability to radical transparency, and get a sneak peek into the bizarre Dot Collector app that fuels the company's operations. Gain insights into employee experiences at the company, the secret sauce to Ray’s success, the company’s track record in predicting market crashes, undisclosed aspects of Ray’s success story, and much more! Tune in now!

Key Points From This Episode:

• Details about the company’s investment management portfolio. (0:06:38)
• Dalio's model of economic cycles’ influence on the company’s investment approach. (0:09:13)
• Exploring the criticism toward Dalio's model of economic cycles. (0:10:13)
• How successful Dalio has been at predicting market crashes. (0:12:21)
• Bridgewater’s investment success track record. (0:14:40)
• Unpacking Dalio's principles and how he developed them. (0:16:16)
• Uncovering how Dalio's principles are perceived within Bridgewater and how they made the company successful. (0:18:56)
• Learn how believability and radical transparency work within Bridgewater. (0:20:58)
• The bizarre Dot Collector app and how the company leverages it. (0:24:57)
• Employees’ experiences of working at Bridgewater. (0:28:02)
• Rob’s opinion about Ray and how he compares to other hedge fund managers. (0:29:38)
• Hear about undisclosed aspects of Ray's success story. (0:34:52)
• Dalio and readers’ reactions since publishing the book. (0:37:17)
• Delving into the nuance factors explaining Bridgewater's success as a business. (0:40:18)
• How the company will continue to function post-Ray Dalio. (0:43:06)
• What Rob hopes readers will take away after reading the book. (0:44:55)

Links From Today’s Episode:

Rob Copeland on LinkedIn — https://www.linkedin.com/in/real-rob-copeland/

Rob Copeland on X — https://twitter.com/realrobcopeland

The New York Times — https://www.nytimes.com/

The Fund — https://static.macmillan.com/static/smp/the-fund/

Bridgewater Associates — https://www.bridgewater.com/

Principles — https://www.amazon.com/Principles-Life-Work-Ray-Dalio/dp/1501124021

Doom: The Politics of Catastrophe — https://www.amazon.com/Doom-Politics-Catastrophe-Niall-Ferguson/dp/0593297377

The Dot Collector — https://www.principles.com/principles/3290232e-6bca-4585-a4f6-66874aefce30/

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://twitter.com/RationalRemind

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Are you ready for a deep dive into quantitative investing, the private credit trend, and the Canada Pension Plan (CPP)? Then this episode is for you! Joining us today is Robin Wigglesworth, The Financial Times’ global finance correspondent, and author of Trillions: How a Band of Wall Street Renegades Invented the Index Fund and Changed Finance Forever, a groundbreaking book about the past, present, and future of passive investing. We talk with Robin about quantitative investing and the ideas he lays out in his article ‘A Quant Winter’s Tale’, before hearing his insights on the private credit trend and his intriguing new book titled Bonds, all about the history of the bond market. Today’s episode also features our Mark to Market segment, where Mark McGrath joins us to talk about the Canada Pension Plan (CPP), providing a comprehensive overview of its inner workings, his response to the criticisms levelled against it, and why he believes it’s of huge benefit to a great many Canadians. Next, we take a look back at our conversation with Alexandra Macqueen on annuities before sharing our thoughts on its relevance to today’s discussion and why it’s worth revisiting. Be sure to stay tuned for our after-show segment where we share our book, blog, and viewing recommendations, plus our favourite reviews, followed by a sneak peek of some of the exciting guests we have coming up. Press play now for a deep dive into quant investing, the hype around private credit, saving for retirement, and a whole lot more!

Key Points From This Episode:

• An introduction to today’s guest, Robin Wigglesworth, followed by his breakdown of quantitative investing. (0:04:05)
• Theories on what happened to factor investing between 2018 and 2020; what is meant by the quant winter and why we are now in a quant summer. (0:09:59)
• How investor sentiment regarding factor investing changed after the quant winter and how the algorithm aversion phenomenon impacted it. (0:15:13)
• The collapse of value; the impact of the COVID-19 pandemic (plus its role in the quant winter), and where we are right now. (0:20:14)
• An overview of quant investing products, and why many of them are too expensive. (0:23:24)
• Breaking down the noisy-ness in factor data and Robin’s predictions for where factor investing will go from here. (0:25:51)
• Unpacking the hype around private credit: indications that it’s in a bubble, how it could impact broader trends, and who stands to benefit most.  (0:36:36)
• We hear about the fascinating book that Robin is currently working on about the history of the bond market. (0:40:22)
• Our Mark to Market segment on the complicated (and divisive) Canada Pension Plan (CPP); how it works, its profound benefits, and responding to the criticism it has received. (0:41:50)
• A look back at our conversation with Alexandra Macqueen on annuities and how it links in with today’s discussion. (01:01:31)
• Our after-show section: an update on the Money Scope Podcast, reading recommendations, reviews from our listeners, and some of the incredible guests we have coming up! (01:04:33)
  
  

Links From Today’s Episode:

Robin Wigglesworth — https://robinwigglesworth.com/

Robin Wigglesworth on LinkedIn — https://www.linkedin.com/in/robin-wigglesworth-17101722

Financial Times — https://www.ft.com/

Trillions: How a Band of Wall Street Renegades Invented the Index Fund and Changed Finance Forever — https://www.amazon.com/Trillions-Renegades-Invented-Changed-Finance/dp/0593087682

‘Quant Winter's Tale’ — https://www.ft.com/content/e0f98278-432e-4ece-b170-2c40e40d2835

Episode 184: Robin Wigglesworth — https://rationalreminder.ca/podcast/184

Episode 93: Cliff Asness from AQR — https://rationalreminder.ca/podcast/93

Cliff Asness — https://www.aqr.com/About-Us/OurFirm/Cliff-Asness-Bio

AQR — https://www.aqr.com/

Two Sigma — https://www.twosigma.com/

D.E Shaw — https://www.deshaw.com/

CPP Investments — https://www.cppinvestments.com/

StatsCan — https://www.statcan.gc.ca/en/start

Financial Planning for Canadian Business Owners Episode 116: True Cost of CPP with Aravind Sithamparapillai — https://jasonpereira.ca/all-content-jason-pereira-toronto/true-cost-of-cpp-with-aravind-sithamparapillai-e116

Episode 59: Alexandra Macqueen — https://rationalreminder.ca/podcast/59

Pensionize Your Nest Egg — https://www.amazon.com/Pensionize-Your-Nest-Egg-Allocation/dp/1119025257
Griselda Blanco — https://www.imdb.com/title/tt15837600/

Cocaine Cowboys — https://www.imdb.com/title/tt0380268/

Queen of the South — https://www.imdb.com/title/tt1064899/

Fortune's Children: The Fall of the House of Vanderbilt — https://www.amazon.com/Fortunes-Children-Fall-House-Vanderbilt/dp/0062224069

Farnam Street — https://fs.blog/

24 in 24 Reading Challenge — https://rationalreminder.ca/24in24

The Money Scope Podcast — https://moneyscope.ca/

The Money Scope Podcast on YouTube — https://www.youtube.com/@moneyscopepod

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://twitter.com/RationalRemind

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/

Mark McGrath on X — https://twitter.com/MarkMcGrathCFP

In this episode, we are joined, for the third time, by renowned author and commentator Morgan Housel. Many of you are familiar with Morgan's bestseller, The Psychology of Money, and he is back to discuss his latest book, Same as Ever: A Guide to What Never Changes. He is also the partner at The Collaboration Fund, a network of fund managers investing across asset classes while identifying and supporting companies at the intersection of for-profit and for-good. In our conversation, we delve into the timeless principles that shape our perspectives of the world and why things are the Same as Ever. We discuss the importance of holding cash, challenging traditional analytical approaches and encouraging a broader reflection on life beyond numbers. Discover the recurrent nature of once-in-a-lifetime events, the pitfalls associated with the insatiable desire for certainty, the value and power of storytelling, and the complex interplay between incentives and expectations. Gain insights into the value of forecasting behaviours instead of market dynamics, why pessimism is more common and more captivating than optimism, embracing slight inefficiencies on the path to success, and much more! Don't miss this engaging discussion with a master storyteller and gain new perspectives on finance, human behaviour, and the principles that remain the Same as Ever with Morgan Housel. Tune in now!

Key Points From This Episode:

(0:03:28) Why it is important to understand the aspects that never change, with examples. 

(0:05:58) Morgan explains the value of random and seemingly inconsequential events.

(0:07:43) Discover the most persistent characteristic of risk and the ways expectations impact behaviour and decision-making. 

(0:13:04) How he has been dealing with the success of his book, Psychology of Money. 

(0:15:11) What makes once-in-a-lifetime events more common than expected and the problems that a desire for certainty brings with it. 

(0:19:16) Leveraging storytelling to understand the world and how to filter out the good information from the bad information. 

(0:25:41) Explore the role of incentives in influencing expectations and how calm can turn into crazy. 

(0:31:06) Learn how success can develop into failure and the problems that stem from investors trying to squeeze too much too soon from their investments. 

(0:37:13) Advice for understanding the normal ‘growth rate’ and what motivates innovation. 

(0:42:29) Balancing stress and adversity and why being slightly inefficient is a good thing. 

(0:46:46) Navigating hassle and nonsense on the path to success. 

(0:48:30) The time scale differences in materializing good news and bad news. 

(0:50:31) Strategies for combining optimism and pessimism to make informed and effective long-term decisions. 

(0:53:03) Examine the challenges of predicting the impact of future innovations. 

(0:55:43) The tendency for people to perceive others or businesses as better. 

(0:58:38) Hear about the difference between permanent and expiring information. 

(1:00:36) Reasons why complexity and length are appealing and how personal experiences shape perspectives. 

(1:05:00) Morgan shares the biggest takeaways from his books. 

Links From Today’s Episode:

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582
Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://twitter.com/RationalRemind

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Morgan Housel — https://www.morganhousel.com/

Morgan Housel on LinkedIn— https://www.linkedin.com/in/morgan-housel-5b473821/

Morgan Housel on X — https://twitter.com/morganhousel

Morgan Housel on Instagram — https://www.instagram.com/morganhousel/

The Morgan Housel Podcast — https://podcasts.apple.com/us/podcast/the-morgan-housel-podcast/id1675310669

Collaborative Fund — https://collabfund.com/

Collab Blog — https://collabfund.com/blog/

Episode 128: Morgan Housel — https://rationalreminder.ca/podcast/128

Episode 191: Emerging Markets — https://rationalreminder.ca/podcast/191

Episode 224: Scott Cederburg — https://rationalreminder.ca/podcast/224

Books From Today’s Episode:

Sapiens — https://www.amazon.com/Sapiens-Humankind-Yuval-Noah-Harari/dp/0062316095

Seinfeldia — https://www.amazon.com/Seinfeldia-About-Nothing-Changed-Everything/dp/1476756112

The Snowball — https://www.amazon.com/Snowball-Warren-Buffett-Business-Life/dp/0553384619

Same as Ever — https://www.amazon.com/Same-Ever-Guide-Never-Changes/dp/0593332709

The Psychology of Money — https://www.amazon.com/Psychology-Money-Timeless-lessons-happiness/dp/0857197681

Does the 4% rule still work? In this episode, we welcome three esteemed experts to counter a recent controversial claim made on the Dave Ramsey Show regarding the validity of the 4% rule in retirement planning. Joining us is David Blanchett; the Managing Director and Head of Retirement Research for PGIM DC Solutions, Michael Finke; a distinguished professor of wealth management at the American College of Financial Services, and Wade Pfau; Director of Retirement Research at McLean Asset Management. In our conversation, these experts shed light on the intricate world of retirement income planning, dispelling misconceptions and advocating for a more nuanced approach. Discover the flaws in Ramsey's assertion and explore the dynamics of sequence of return risk in retirement planning. Unpack the complexities of investing in bonds for retirees and the evolving risk profiles of stocks over varying investment horizons. We also uncover the significance of variable spending rates, debunk the fallacies behind aggressive withdrawal suggestions, a safety-first approach in retirement finance, and much more. Tune in for an enlightening journey through retirement planning and equip yourself with expert insights to pave a secure path for your financial future!

Key Points From This Episode:

• The motivation for addressing Dave Ramsey’s 8% retirement spending rate claim. (0:07:26)
• Unpack the holes in Dave Ramsey’s 8% claim. (0:09:48)
• How important sequence of return risk is for retirement planning. (0:15:08)
• Discover if investing in bonds is risky for a retiree. (0:17:57)
• Learn how the risk of holding stocks changes for longer versus shorter investment horizons. (0:21:55)
• Subjective risk tolerance and how it is influenced by market fluctuations. (0:24:04)
• Going all-in on stocks compared to strategies that involve both bonds and stocks in your investment portfolio. (0:30:10)
• They share their thoughts on Dave Ramsey’s notion that the 4% rule is depressing. (0:35:23)
• Overview of the issues and misconceptions surrounding the 4% rule. (0:37:28)
• Alternative approaches to spending money from a riskier investment portfolio. (0:40:06)
• Dynamic spending strategies to improve the initial withdrawal rate from investments. (0:43:01)
• Explore other financial products, like annuities, for retirement planning. (0:50:05)
• Mindset hurdles and adjusting expectations for financial planning. (0:58:46)
• Dissect the concept of delaying government pensions and its impact on investors. (1:02:24)
• Insights into the pros and cons of delaying social security for higher-earning women. (1:07:52)
• Final words of wisdom the guests have for listeners. (1:09:30)

Links From Today’s Episode:

Michael Finke — http://www.michaelfinke.com/home.html

Michael Finke on X — https://twitter.com/finkeonfinance

Michael Finke on Facebook — https://www.facebook.com/mfinke

The American College of Financial Services — https://www.theamericancollege.edu/

David Blanchett — https://www.davidmblanchett.com/

David Blanchett on X — https://twitter.com/davidmblanchett

David Blanchett on LinkedIn — https://www.linkedin.com/in/david-blanchett-b0b0aa2/

PGIM DC Solutions — https://www.pgim.com/dc-solutions/

Wealth, Managed Podcast — https://www.theamericancollege.edu/knowledge-hub/wealth-managed-podcast

Wade Pfau — https://retirementresearcher.com/wade-pfau/

Wade Pfau on LinkedIn — https://www.linkedin.com/in/wpfau/

Wade Pfau on X — https://twitter.com/WadePfau

McLean Asset Management — https://www.mcleanam.com/

Retire With Style Podcast — https://risaprofile.com/retire-with-style/

Alliance for Lifetime Income — https://www.protectedincome.org/

Episode 89: Wade Pfau: Safety-First: A Sensible Approach to Retirement Income Planning — https://rationalreminder.ca/podcast/89

Episode 137: David Blanchett: Researching Retirement — https://rationalreminder.ca/podcast/137

Episode 254: David Blanchett: Regret Optimized Portfolios and Optimal Retirement Income — https://rationalreminder.ca/podcast/254

The Ramsey Show — https://www.youtube.com/@TheRamseyShowEpisodes

The Ramsey Show: You Can’t Win With Money if You Don’t Know Where Your Money Is — https://www.youtube.com/watch?v=Xg4Z8EQY3Ao

‘Supernerds Unite Against Dave Ramsey’s 8% Safe Withdrawal Rate Guidance’ — https://www.thinkadvisor.com/2023/11/13/supernerds-unite-against-dave-ramseys-8-safe-withdrawal-rate-guidance/

RISA profiler — risaprofile.com/rationalreminder

‘Quasi-empirical bootstrap sampling paper’ —

Jason Fichtner — https://bipartisanpolicy.org/person/jason-j-fichtner/

‘The Value of Delayed Social Security Claiming for Higher-Earning Women’ — https://dx.doi.org/10.2139/ssrn.3849653

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://twitter.com/RationalRemind

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Tightwads are more likely to hold onto their money even when there is more than enough to spend, whilst spendthrifts will drain their bank account of its very last cent. So, which one are you, and how does that impact your relationships? Joining us today is the remarkable Marketing Professor and Author, Scott Rick. Scott has just penned a new book, Tightwads and Spendthrifts: Navigating the Money Minefield in Real Relationships, which serves as a guide for finding happiness while steering through money and love. To kick-start our conversation, Scott summarizes the relationship that people generally have with money, followed by a deeper exploration of the terms “tightwad” and “spendthrift”. We break down the psychology of tightwad and spendthrift behaviours, how these two personality types interact with one another in relationships, the myths of financial infidelity and transparency, and how bank account structures (joint and individual accounts) dictate how money flows in a relationship. We also assess the roles of financial advisors and gift-giving within relationships before Scott shares his thoughts on marrying for money versus marrying for love, how to give your kids the best financial education, and what he hopes every reader will gain from the truly fascinating and informative, Tightwads and Spendthrifts! 

Key Points From This Episode:

(0:00:33) Introducing the incredible Marketing Professor and Author, Scott Rick. 

(0:03:08) Scott’s summation of the relationship that people have with money. 

(0:04:47)Diving into his latest book: Tightwads and Spendthrifts, and exploring each term.

(0:13:16) Assessing the psychology behind tightwad and spendthrift behaviours. 

(0:18:58) The role of financial advisors. 

(0:21:15) What spendthrifts and tightwads can do to balance their money scales. 

(0:23:34) How tightwads and spendthrifts interact in romantic relationships. 

(0:32:10) The way bank account structures affect how money flows in a relationship. 

(0:35:39) Debunking financial infidelity and the downsides of total financial transparency. 

(0:41:04) The ins and outs of joint bank accounts versus individual accounts in relationships. 

(0:42:20) Gift-giving and relationships. 

(0:47:08) How kids can learn about money from their parents. 

(0:52:15) Scott shares his thoughts on marrying for love versus marrying for money. 

(0:55:09) What he hopes people will learn from reading Tightwads and Spendthrifts.

Links From Today’s Episode:

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://twitter.com/RationalRemind

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Scott Rick — https://scottrick.com/ 

Scott Rick on LinkedIn — https://www.linkedin.com/in/scottianrick/  

Scott Rick on X — https://twitter.com/scottianrick 

Michigan Ross — https://michiganross.umich.edu/  

Hal Hershfield — https://www.halhershfield.com/  

‘Episode 282: Dr. Jim Grubman: The Psychology of Wealth’ — https://rationalreminder.ca/podcast/282  

Books From Today’s Episode:

Tightwads and Spendthrifts — https://www.amazon.com/Tightwads-Spendthrifts-Navigating-Minefield-Relationships/dp/1250280079 

Retail Therapy Blog — https://www.psychologytoday.com/intl/blog/retail-therapy  

Damon Young — https://www.nytimes.com/column/damon-young  

The Great Gatsby — https://www.amazon.com/Great-Gatsby-Original-Fitzgerald-Classic/dp/B0BF3P5XZS 

‘The 36 Questions That lead To Love’ — https://www.nytimes.com/2015/01/09/style/no-37-big-wedding-or-small.html 

It’s the start of a new year and with it comes an opportunity to re-evaluate your trajectory and set your goals for the months to come, whether they be financial, personal, or all of the above. Kicking things off for today’s episode is our conversation with Steve Balaban, a private equity insider with a refreshingly realistic and practical perspective on private equity. We talk with Steve about investing in private equity, the benefits and drawbacks every investor should know about, why due diligence is essential, how private equity interacts with investor psychology, and much more. Tuning in you’ll also learn about the Private Equity Certificate offered by CFA Society Toronto in collaboration with Mink Learning and how listeners can gain special access to these training tools. Next, we take a look back at our conversation with Ayelet Fishbach from the Booth School of Business on the science of motivation and goal setting and the contents of her new TEDxChicago Talk The Science of Getting Motivated. We wrap things up with a review of Justin Breen’s book titled, Epic Life: How to Build Collaborative Global Companies While Putting Your Loved Ones First, followed by our conversation with the author on the transformational power of naming your year, the power of networking, and other key lessons from his book. For all this and much more, be sure to tune in and start 2024 armed with insights from some of the best thinkers around!

Key Points From This Episode:

(0:01:26) Use discount code RATIONAL to watch the award-winning documentary Tune Out The Noise, free of charge (valid until the end of January 2024, so make sure you don’t miss out!) 

(0:03:44) An introduction to Steve Balaban and Mink Learning, a private equity education company he founded in 2019. 

(0:07:29) Steve’s insights on aggregate public market equivalent (PME) benchmarking and key issues that arise when using Internal Rate of Return (IRR) to benchmark private equity. 

(0:17:58) The best arguments in favour of private equity, the downsides you need to know about, and a rundown of the fees involved. 

(0:23:38) Top reasons Steve has come across for why people want to invest in private equity, and what he considers to be the right reasons. 

(0:29:38) How private equity interacts with investor psychology and the importance of having different vintages in your portfolio. 

(0:35:15) Why private equity is typically illiquid, how liquid private equity works, and the tradeoffs for investors with liquid private equity as opposed to more direct illiquid approaches. 

(0:42:59) The differences between private and public equity; advice on how investors should interpret private equity marketing materials and the importance of doing due diligence. 

(0:51:59) Trends in the industry towards permanent equity, rather than rolling over every few years.  

(0:59:55) Details on the Private Equity Certificate offered by CFA Society Toronto in collaboration with Mink Learning and how to use the discount code RationalReminderPEC. 

(01:02:21) A look back at our conversation with Professor Ayelet Fishbach and her newly released TEDxChicago Talk The Science of Getting Motivated. 

(01:03:58) Our book review of Epic Life: How to Build Collaborative Global Companies While Putting Your Loved Ones First, and our conversation with the author, Justin Breen. 

(01:07:12) The transformational impact of naming your year, finding your purpose, and the power of networking. 

(01:25:47) An update on our new podcast Money Scope, the content you can expect from it, and its success on the Canadian Apple Podcast charts. 

(01:28:43) What we’ve been experiencing on LinkedIn, book recommendations for the start of 2024, and exciting upcoming guests! 

Links From Today’s Episode:

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://twitter.com/RationalRemind

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Tune Out The Noise — https://film.dimensional.com/podcast/login?redirect=%2Fpodcast

Discount Code for Tune Out The Noise — RATIONAL

Steve Balaban — https://www.stevebalaban.com/

Steve Balaban on LinkedIn — https://training.minklearning.com/

Mink Learning — https://training.minklearning.com/

Private Equity Certificate offered by CFA Society Toronto in collaboration with Mink Learning — https://web.cvent.com/event/10af7f03-e05c-465a-803e-3e8ac3864120/summary

Discount Code for Private Equity Certificate — RationalReminderPEC

Justin Breen on LinkedIn — https://www.linkedin.com/in/justinbreen1/

BrEpic Communications LLC — https://www.brepicllc.com/

BrEpic Network — https://brepicnetwork.org/

Episode 188: Prof. Ayelet Fishbach — https://rationalreminder.ca/podcast/188

Professor Ayelet Fishbach's TEDxChicago Talk, The Science of Getting Motivated — https://www.youtube.com/watch?v=T8CegN1xssY

Episode 286: Errol Morris — https://rationalreminder.ca/podcast/286

Episode 210: Prof. Ludovic Phalippou — https://rationalreminder.ca/podcast/210

Episode 237: Who are you, and who do you want to be? — https://rationalreminder.ca/podcast/237

Episode 224: Prof. Scott Cederburg — https://rationalreminder.ca/podcast/224

Episode 284: Prof. Scott Cederburg — https://rationalreminder.ca/podcast/284

Money Scope Podcast — https://moneyscope.ca/

Books From Today’s Episode:

Epic Life: How to Build Collaborative Global Companies While Putting Your Loved Ones First — https://www.amazon.com/Epic-Life-Collaborative-Companies-Putting/dp/1544532555

Same as Ever: A Guide to What Never Changes — https://www.amazon.com/Same-Ever-Guide-Never-Changes/dp/0593332709

The Geek Way — https://www.amazon.com/Geek-Way-Radical-Transforming-Business/dp/0316436704

Tightwads and Spendthrifts: Navigating the Money Minefield in Real Relationships — https://www.amazon.com/Tightwads-Spendthrifts-Navigating-Minefield-Relationships/dp/1250280079

Flow: The Psychology of Optimal Experience — https://www.amazon.com/Flow-Psychology-Experience-Perennial-Classics/dp/0061339202

Get It Done: Surprising Lessons from the Science of Motivation — https://www.amazon.com/Get-Done-Surprising-Lessons-Motivation/dp/0316538345

Rational Reminder listeners get exclusive first access to Tune Out the Noise, a documentary directed by Academy Award-winner Errol Morris until January 31.

 Tune Out The Noise Access URL:  film.dimensional.com/podcast

Access Code (available until Jan 31): RATIONAL

In today’s episode, Errol Morris, Academy Award-winning film director and author, joins us to talk about his recently released documentary called Tune Out the Noise. The documentary focuses on the revolution that's happened in the financial system, how the markets work, and why the advancements made are so vital. Errol is an acclaimed figure in film and literature, boasting an impressive array of accolades, notably securing an Oscar for his renowned documentary The Fog of War. His work spans various arenas, encompassing short films for prestigious events and many charitable and political organizations. In our conversation, we delve into the significance of storytelling in communicating complex subjects, the power of serendipity, the evolution of finance, and the enigmatic nature of truth. We discuss the necessity of storytelling, the unexpected occurrences that influenced finance, the importance of empirical data in understanding truth, the central story of Tune Out the Noise, and much more. He also provides insights into the amazing economists, many of whom are past guests, who helped shape the financial landscape. Discover how chance, humility, and the pursuit of truth intertwine in this captivating episode, where the intriguing art of storytelling converges with the complexities of the financial world. Tune in now!

Rational Reminder listeners get exclusive first access to Tune Out the Noise, a documentary directed by Academy Award-winner Errol Morris until January 31.

 Tune Out The Noise Access URL:  film.dimensional.com/podcast

Access Code (available until Jan 31): RATIONAL

Key Points From This Episode:

• Introduction and background about our special guest, Errol Morris. (0:00:18)

• The central story of his new documentary, Tune Out the Noise, and why it is important for the average person to see. (0:07:33)

• Hear his personal thoughts on investing before the documentary and how his investment philosophy has evolved. (0:12:38)

• A brief history of the documentary and initial concerns surrounding the project. (0:16:10)

• Motivation for making it an “Errol Morris film” as opposed to a typical commercial project. (0:18:21)

• The moment he had an epiphany about making the documentary and telling the story of the financial revolution. (0:20:27)

• He shares his personal investment experience in the early days of Apple. (0:23:19)

• Errol’s skepticism about beating the market and the interviewees that had the biggest impact on him. (0:24:23)

• Iconic influencers of the overall financial revolution story that were not in the film. (0:27:50)

• The importance of storytelling for conveying complex financial concepts. (0:31:31)

• Unexpected revelations about the financial system and investing after making the documentary. (0:34:52)

• Explore the role of chance and serendipity in the financial revolution. (0:36:56)

• Aspects of the financial revolution story that are underappreciated by investors. (0:40:40)

• How the approach to making Tune Out the Noise differed from his previous projects. (0:44:30)

• Ben and Cameron share their opinions about the documentary. (0:50:09)

• Discover his “shut-up school” approach to interviewing and the fundamentals of a good interview. (0:52:13)

• Essential advice to become a better storyteller and Errol’s definition of success. (0:58:07)

Links From Today’s Episode:

Errol Morris — https://errolmorris.com

Errol Morris Email — info@errolmorris.com

Tune Out the Noise — https://www.austinfilm.org/films/test-screening-tune-out-the-noise/

The Fog of War — https://www.imdb.com/title/tt0317910/

The Thin Blue Line — https://www.imdb.com/title/tt0096257/

Believing Is Seeing — https://www.amazon.com/Believing-Seeing-Observations-Mysteries-Photography/dp/1594203016/

A Wilderness of Error — https://www.amazon.com/Wilderness-Error-Trials-Jeffrey-MacDonald/dp/B009GKGSEC/

Gates of Heaven — https://www.imdb.com/title/tt0077598

Dimensional Fund Advisors — https://www.dimensional.com/

The Art of Controversy — https://www.amazon.com/Art-Controversy-Arthur-Schopenhauer/dp/160459571X

The Pigeon Tunnel — https://www.imdb.com/title/tt28486633/

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://twitter.com/RationalRemind

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/