Manisha Thakor

Today on the podcast, we welcome back author and financial educator, Manisha Thakor. Manisha’s new book is called MoneyZen: The Secret to Finding Your “Enough.” She is also the founder of MoneyZen, a financial education consultancy. In addition to her latest book, Manisha is the co-author of two books with Sharon Kedar: On My Own Two Feet, published in 2007 and updated in 2013, and Get Financially Naked, which came out in 2009. Prior to founding MoneyZen, Manisha was vice president of Financial Well-Being at Brighton Jones. Before that, she was director of Wealth Strategies for Women at Buckingham Strategic Wealth. Earlier in her career, Manisha held positions at several investment management firms, including Fayez Sarofim, Sands Capital Management, and Atalanta/Sosnoff Capital. Manisha is a chartered financial analyst and a certified financial planner. She received her bachelor’s degree in American Studies from Wellesley College and her MBA from Harvard Business School.BackgroundBioMoneyZenMoneyZen: The Secret to Finding Your “Enough,” by Manisha ThakorOn My Own Two Feet: A Modern Girl’s Guide to Personal Finance, by Manisha Thakor and Sharon KedarGet Financially Naked: How to Talk Money With Your Honey, by Manisha Thakor and Sharon KedarThe Cult of Never EnoughEnough: True Measures of Money, Business, and Life, by Jack BogleFayez SarofimDerek Thompson“Perfectionism Is Increasing, and That’s Not Good News,” by Thomas Curran and Andrew P. Hill, Harvard Business Review, Jan. 26, 2018.“Does More Money Correlate With Greater Happiness?” by Michele W. Berger, penntoday.upenn.edu, March 6, 2023.Other“Manisha Thakor: Beware of ‘Junk Personal Finance,’” The Long View podcast, Morningstar.com, July 20, 2021.MoneyzenquizMary LoVerde

Today on the podcast, we welcome back author and financial educator, Manisha Thakor. Manisha’s new book is called MoneyZen: The Secret to Finding Your “Enough.” She is also the founder of MoneyZen, a financial education consultancy. In addition to her latest book, Manisha is the co-author of two books with Sharon Kedar: On My Own Two Feet, published in 2007 and updated in 2013, and Get Financially Naked, which came out in 2009. Prior to founding MoneyZen, Manisha was vice president of Financial Well-Being at Brighton Jones. Before that, she was director of Wealth Strategies for Women at Buckingham Strategic Wealth. Earlier in her career, Manisha held positions at several investment management firms, including Fayez Sarofim, Sands Capital Management, and Atalanta/Sosnoff Capital. Manisha is a chartered financial analyst and a certified financial planner. She received her bachelor’s degree in American Studies from Wellesley College and her MBA from Harvard Business School.Background<a href="https://www.linkedin.com/in/manishathakor?original_referer=https%3A%2F%2Fwww.google.com%2F" rel="nofollow" target="_blank">Bio</a><a href="https://moneyzen.com/" rel="nofollow" target="_blank">MoneyZen</a><a href="https://moneyzen.com/moneyzen-book/" rel="nofollow" target="_blank">MoneyZen: The Secret to Finding Your “Enough,”</a> by Manisha Thakor<a href="https://www.simonandschuster.com/books/On-My-Own-Two-Feet/Manisha-Thakor/9781440570841" rel="nofollow" target="_blank">On My Own Two Feet: A Modern Girl’s Guide to Personal Finance</a>, by Manisha Thakor and Sharon Kedar<a href="https://www.amazon.com/Get-Financially-Naked-Money-Honey/dp/1440502013/ref=sr_1_1?crid=88HAZYXL7GYC&amp;keywords=How+to+get+financially+naked&amp;qid=1691435704&amp;sprefix=how+to+get+financially+naked%2Caps%2C163&amp;sr=8-1" rel="nofollow" target="_blank">Get Financially Naked: How to Talk Money With Your Honey</a>, by Manisha Thakor and Sharon KedarThe Cult of Never Enough<a href="https://www.wiley.com/en-us/Enough%3A+True+Measures+of+Money%2C+Business%2C+and+Life%2C+Revised+Edition-p-9780470524237" rel="nofollow" target="_blank">Enough: True Measures of Money, Business, and Life</a>, by Jack Bogle<a href="https://www.sarofim.com/about/our-founder/" rel="nofollow" target="_blank">Fayez Sarofim</a><a href="https://www.theatlantic.com/author/derek-thompson/" rel="nofollow" target="_blank">Derek Thompson</a>“<a href="https://hbr.org/2018/01/perfectionism-is-increasing-and-thats-not-good-news" rel="nofollow" target="_blank">Perfectionism Is Increasing, and That’s Not Good News</a>,” by Thomas Curran and Andrew P. Hill, Harvard Business Review, Jan. 26, 2018.“<a href="https://penntoday.upenn.edu/news/does-more-money-correlate-greater-happiness-Penn-Princeton-research" rel="nofollow" target="_blank">Does More Money Correlate With Greater Happiness?</a>” by Michele W. Berger, <a href="http://penntoday.upenn.edu/" rel="nofollow" target="_blank">penntoday.upenn.edu</a>, March 6, 2023.Other“<a href="https://www.morningstar.com/financial-advice/manisha-thakor-beware-junk-personal-finance" rel="nofollow" target="_blank">Manisha Thakor: Beware of ‘Junk Personal Finance</a>,’” The Long View podcast, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, July 20, 2021.<a href="https://quiz.tryinteract.com/#/646d1000fec8ca0014804a9e" rel="nofollow" target="_blank">Moneyzenquiz</a><a href="https://www.linkedin.com/in/maryloverde" rel="nofollow" target="_blank">Mary LoVerde</a>

Manisha Thakor: Finding Your Enough

Ilyce Glink

On the podcast today, we welcome back real estate expert and author Ilyce Glink. Ilyce writes a nationally syndicated column on real estate matters, and she has written more than a dozen books on real estate and homebuying, including 100 Questions Every First-Time Home Buyer Should Ask, which is now in its fourth edition. She is also a regular contributor to WGN Radio. In addition, she is founder and CEO of Best Money Moves, an award-winning financial wellness company that helps employees of more than 1,000 companies to improve their financial wellness and reduce financial stress. Ilyce received her bachelor’s degree in English literature from the University of Illinois at Urbana-Champaign.BackgroundBioWGN Radio100 Questions Every First-Time Home Buyer Should Ask, Fourth Edition, by Ilyce GlinkBest Money Moves“Ilyce Glink: The State of the U.S. Residential Real Estate Market,” The Long View podcast, Morningstar.com, June 28, 2022.State of the Housing Market“Home Prices, Rents Will Continue to Rise With Short Supply of Houses on Market, Analysis Finds,” by Ilyce Glink and Samuel J. Tamkin, Washingtonpost.com, July 28, 2021.“Homeowners Don’t Want to Sell, so the Market for Brand-New Homes Is Booming,” by Nicole Friedman, wsj.com, July 19, 2023.“Love, Money + Real Estate #014,” by Ilyce Glink, glink.stubstack.com, May 3, 2022.“2023 Home Buyer Resolutions,” by Ilyce Glink, thinkglink.com, Dec. 26, 2022.“Want to Buy a Home? Good Luck. We’re 4 Million Homes Short,” by Ilyce Glink, thinkglink.com, April 20, 2021.“Underbuilding Has Led to ‘Acute Shortage’ of Housing and ‘Affordability Crisis’ Study Says,” by Ilyce Glink and Samuel J. Tamkin, Washingtonpost.com, July 19, 2021.“Real Estate Trends for 2022,” by Ilyce Glink, thinkglink.com, Dec. 14, 2021.“Advice for a First-Time Homebuyer in 2023,” by Ilyce Glink and Samuel J. Tamkin, tribunecontentagency.com, Feb. 7, 2023.Rental Properties“Real Estate Matters: Homeowner Weighs Renting vs. Buying for Next Stage in Life,” by Ilyce Glink and Samuel J. Tamkin, heraldtribune.com, Aug. 8, 2021.“Is It Better to Rent or Own Your Home in Retirement?” by Ilyce Glink, thinkglink.com, Dec. 11, 2020.“Should Rental Income Be Part of Your Retirement?” by Chris Taylor, aarp.org, Aug. 1, 2022.The Home as an Investment“Capital Gains Tax on Inherited Property?” by Ilyce Glink, thinkglink.com, June 28, 2023.IRS Publication 523: Selling Your Home“Ramit Sethi: Investing Shouldn’t Be Your Identity,” The Long View podcast, Morningstar.com, June 6, 2023.“JL Collins: The Case for Simplicity,” The Long View podcast, Morningstar.com, April 5, 2022.(Please stay tuned for important disclosure information at the conclusion of this episode.)

On the podcast today, we welcome back real estate expert and author Ilyce Glink. Ilyce writes a nationally syndicated column on real estate matters, and she has written more than a dozen books on real estate and homebuying, including 100 Questions Every First-Time Home Buyer Should Ask, which is now in its fourth edition. She is also a regular contributor to WGN Radio. In addition, she is founder and CEO of Best Money Moves, an award-winning financial wellness company that helps employees of more than 1,000 companies to improve their financial wellness and reduce financial stress. Ilyce received her bachelor’s degree in English literature from the University of Illinois at Urbana-Champaign.Background<a href="https://www.linkedin.com/in/ilyceglink?challengeId=AQHslrC0CfB_nQAAAYmtMY6KEV9EvT9kM5b12cm2ClyikKzh2v2SNRxpzaAFA6JPm-j9xG4pfrQqwQQhYZFVqklPxpI1Zabqbw&amp;submissionId=6924e14a-f906-7717-afac-81d4f48ccc72&amp;challengeSource=AgEYbcy30eW_wgAAAYmtMcpxPK-paAQwfiK3gIeF5InyydD5BQT6T0fKV_FYsRo&amp;challegeType=AgEEJ40x1K5zNgAAAYmtMcp0E1TOcpFxg7hJqyM3f_mwENZKw7mVwu8&amp;memberId=AgEPGRLGp-VGWgAAAYmtMcp3f6DvomB1jy6F7Yv98ZQKqgo&amp;recognizeDevice=AgEEZCbyHqXFcgAAAYmtMcp7cIVaem2Tu9VoQnRS7y1S4Nb-5aBK" rel="nofollow" target="_blank">Bio</a><a href="https://wgnradio.com/" rel="nofollow" target="_blank">WGN Radio</a><a href="https://www.penguinrandomhouse.com/books/563904/100-questions-every-first-time-home-buyer-should-ask-fourth-edition-by-ilyce-r-glink/" rel="nofollow" target="_blank">100 Questions Every First-Time Home Buyer Should Ask, Fourth Edition</a>, by Ilyce Glink<a href="https://bestmoneymoves.com/#_home" rel="nofollow" target="_blank">Best Money Moves</a>“<a href="https://www.morningstar.com/stocks/ilyce-glink-state-us-residential-real-estate-market" rel="nofollow" target="_blank">Ilyce Glink: The State of the U.S. Residential Real Estate Market</a>,” The Long View podcast, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, June 28, 2022.State of the Housing Market“<a href="https://www.washingtonpost.com/business/2021/07/28/home-prices-rents-will-continue-rise-with-short-supply-houses-market-analysis-finds/" rel="nofollow" target="_blank">Home Prices, Rents Will Continue to Rise With Short Supply of Houses on Market, Analysis Finds</a>,” by Ilyce Glink and Samuel J. Tamkin, <a href="http://washingtonpost.com/" rel="nofollow" target="_blank">Washingtonpost.com</a>, July 28, 2021.“<a href="https://www.wsj.com/articles/new-home-sales-boom-builders-6c736630" rel="nofollow" target="_blank">Homeowners Don’t Want to Sell, so the Market for Brand-New Homes Is Booming</a>,” by Nicole Friedman, <a href="http://wsj.com/" rel="nofollow" target="_blank">wsj.com</a>, July 19, 2023.“<a href="https://glink.substack.com/p/love-money-real-estate-014" rel="nofollow" target="_blank">Love, Money + Real Estate #014</a>,” by Ilyce Glink, <a href="http://glink.stubstack.com" rel="nofollow" target="_blank">glink.stubstack.com</a>, May 3, 2022.“<a href="https://www.thinkglink.com/2022/12/26/2023-home-buyer-resolutions/" rel="nofollow" target="_blank">2023 Home Buyer Resolutions</a>,” by Ilyce Glink, <a href="http://thinkglink.com/" rel="nofollow" target="_blank">thinkglink.com</a>, Dec. 26, 2022.“<a href="https://www.thinkglink.com/2021/04/20/want-to-buy-a-home-good-luck-were-4-million-homes-short/" rel="nofollow" target="_blank">Want to Buy a Home? Good Luck. We’re 4 Million Homes Short</a>,” by Ilyce Glink, <a href="http://thinkglink.com/" rel="nofollow" target="_blank">thinkglink.com</a>, April 20, 2021.“<a href="https://www.washingtonpost.com/business/2021/07/19/underbuilding-has-led-acute-shortage-housing-affordability-crisis-study-says/" rel="nofollow" target="_blank">Underbuilding Has Led to ‘Acute Shortage’ of Housing and ‘Affordability Crisis’ Study Says</a>,” by Ilyce Glink and Samuel J. Tamkin, <a href="http://washingtonpost.com/" rel="nofollow" target="_blank">Washingtonpost.com</a>, July 19, 2021.“<a href="https://www.thinkglink.com/2021/12/14/real-estate-trends-for-2022/" rel="nofollow" target="_blank">Real Estate Trends for 2022</a>,” by Ilyce Glink, <a href="http://thinkglink.com/" rel="nofollow" target="_blank">thinkglink.com</a>, Dec. 14, 2021.“<a href="https://tribunecontentagency.com/article/advice-for-a-first-time-homebuyer-in-2023/" rel="nofollow" target="_blank">Advice for a First-Time Homebuyer in 2023</a>,” by Ilyce Glink and Samuel J. Tamkin, <a href="http://tribunecontentagency.com/" rel="nofollow" target="_blank">tribunecontentagency.com</a>, Feb. 7, 2023.Rental Properties“<a href="https://www.heraldtribune.com/story/business/real-estate/2021/08/08/real-estate-matters-homeowner-weighs-renting-vs-buying-new-place/5493970001/" rel="nofollow" target="_blank">Real Estate Matters: Homeowner Weighs Renting vs. Buying for Next Stage in Life</a>,” by Ilyce Glink and Samuel J. Tamkin, <a href="http://heraldtribune.com/" rel="nofollow" target="_blank">heraldtribune.com</a>, Aug. 8, 2021.“<a href="https://www.thinkglink.com/2020/12/11/is-it-better-to-rent-or-own-your-home-in-retirement/" rel="nofollow" target="_blank">Is It Better to Rent or Own Your Home in Retirement?</a>” by Ilyce Glink, <a href="http://thinkglink.com/" rel="nofollow" target="_blank">thinkglink.com</a>, Dec. 11, 2020.“<a href="https://www.aarp.org/home-family/your-home/info-2022/rental-property-income-pros-cons.html" rel="nofollow" target="_blank">Should Rental Income Be Part of Your Retirement?</a>” by Chris Taylor, <a href="http://aarp.org/" rel="nofollow" target="_blank">aarp.org</a>, Aug. 1, 2022.The Home as an Investment“<a href="https://www.thinkglink.com/2023/06/28/capital-gains-tax-on-inherited-property/?utm_source=rss&amp;utm_medium=rss&amp;utm_campaign=capital-gains-tax-on-inherited-property" rel="nofollow" target="_blank">Capital Gains Tax on Inherited Property?</a>” by Ilyce Glink, <a href="http://thinkglink.com/" rel="nofollow" target="_blank">thinkglink.com</a>, June 28, 2023.<a href="https://www.irs.gov/pub/irs-pdf/p523.pdf" rel="nofollow" target="_blank">IRS Publication 523: Selling Your Home</a>“<a href="https://www.morningstar.com/podcasts/the-long-view/7b0881e9-6c27-4e97-97dc-eb2210dee238" rel="nofollow" target="_blank">Ramit Sethi: Investing Shouldn’t Be Your Identity</a>,” The Long View podcast, <a href="http://morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, June 6, 2023.“<a href="https://www.morningstar.com/financial-advice/jl-collins-case-simplicity" rel="nofollow" target="_blank">JL Collins: The Case for Simplicity</a>,” The Long View podcast, <a href="http://morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, April 5, 2022.(Please stay tuned for important disclosure information at the conclusion of this episode.)

Ilyce Glink: The State of Real Estate Today

Joel Dickson

Our guest on the podcast today is Joel Dickson, global head of enterprise advice methodology for Vanguard. Joel oversees all investment methodology development for Vanguard’s advice programs, including Vanguard Personal Advisor and Vanguard Digital Advisor. Joel has worked at Vanguard for more than 25 years in a number of investment-related roles. He earned an A.B. from Washington University in St. Louis and a Ph.D. in economics from Stanford University. Joel can speak to a huge array of investment-related topics, but today he is here to discuss “How America Saves,” which is Vanguard’s annual report on the 401(k) plans it oversees and one of the best lenses into the state of American’s retirement preparedness.BackgroundBioHow America SavesHow America Saves 2023“401(k) Auto Enrollment,” by Kat Tretina, forbes.com, Dec. 30, 2022.“Target-Date Funds Have Normalized Workers’ Equity Allocations,” by Noah Zuss, plansponsor.com, April 10, 2023.“Positive Signs in a Challenging Economy,” Vanguard.com, Feb. 3, 2023.“A More Personalized Approach to Financial Advice,” by Joel Dickson, Vanguard.com, Sept. 23, 2022.“SECURE 2.0 Offers New Wealth-Boosting Opportunities,” by Joel Dickson, Vanguard.com, May 9, 2023.Other“Boys Will Be Boys: Gender, Overconfidence, and Common Stock Investment,” by Brad M. Barber and Terrance Odean, The Quarterly Journal of Economics, February 2001.

Our guest on the podcast today is Joel Dickson, global head of enterprise advice methodology for Vanguard. Joel oversees all investment methodology development for Vanguard’s advice programs, including Vanguard Personal Advisor and Vanguard Digital Advisor. Joel has worked at Vanguard for more than 25 years in a number of investment-related roles. He earned an A.B. from Washington University in St. Louis and a Ph.D. in economics from Stanford University. Joel can speak to a huge array of investment-related topics, but today he is here to discuss “How America Saves,” which is Vanguard’s annual report on the 401(k) plans it oversees and one of the best lenses into the state of American’s retirement preparedness.Background<a href="https://www.linkedin.com/in/joeldickson/" rel="nofollow" target="_blank">Bio</a>How America Saves<a href="https://institutional.vanguard.com/content/dam/inst/iig-transformation/has/2023/pdf/has-insights/how-america-saves-report-2023.pdf" rel="nofollow" target="_blank">How America Saves 2023</a>“<a href="https://www.forbes.com/advisor/retirement/401k-auto-enrollment/" rel="nofollow" target="_blank">401(k) Auto Enrollment</a>,” by Kat Tretina<a href="http://forbes.com/" rel="nofollow" target="_blank">, forbes.com</a>, Dec. 30, 2022.“<a href="https://www.plansponsor.com/target-date-funds-have-normalized-workers-equity-allocations/" rel="nofollow" target="_blank">Target-Date Funds Have Normalized Workers’ Equity Allocations</a>,” by Noah Zuss, <a href="http://plansponsor.com/" rel="nofollow" target="_blank">plansponsor.com</a>, April 10, 2023.“<a href="https://institutional.vanguard.com/insights-and-research/perspective/a-preview-of-how-america-saves-2023.html" rel="nofollow" target="_blank">Positive Signs in a Challenging Economy</a>,” <a href="http://vanguard.com/" rel="nofollow" target="_blank">Vanguard.com</a>, Feb. 3, 2023.“<a href="https://corporate.vanguard.com/content/corporatesite/us/en/corp/articles/personalized-approach-to-financial-advice.html" rel="nofollow" target="_blank">A More Personalized Approach to Financial Advice</a>,” by Joel Dickson, <a href="http://vanguard.com/" rel="nofollow" target="_blank">Vanguard.com</a>, Sept. 23, 2022.“<a href="https://corporate.vanguard.com/content/corporatesite/us/en/corp/articles/secure-2-offers-new-wealth-boosting-opportunities.html?sf266618486=1" rel="nofollow" target="_blank">SECURE 2.0 Offers New Wealth-Boosting Opportunities</a>,” by Joel Dickson, <a href="http://vanguard.com/" rel="nofollow" target="_blank">Vanguard.com</a>, May 9, 2023.Other“<a href="https://academic.oup.com/qje/article-abstract/116/1/261/1939000" rel="nofollow" target="_blank">Boys Will Be Boys: Gender, Overconfidence, and Common Stock Investment</a>,” by Brad M. Barber and Terrance Odean, The Quarterly Journal of Economics, February 2001.

Joel Dickson: How America Saves

Dave Sekera

Our guest this week is Dave Sekera. Dave is chief U.S. market strategist for Morningstar Research Services. In his role, Dave publishes research and commentary on the state of the markets and is a leading voice on Morningstar.com and other platforms. Before assuming his current role, Dave was a managing director for DBRS Morningstar. Prior to joining Morningstar in 2010, Dave worked in the alternative asset management field. Dave earned his bachelor’s degree in finance and decision sciences from Miami University and holds the Chartered Financial Analyst designation. You can follow him on Twitter at @MstarMarkets.BackgroundBioTwitter handle: @MstarMarketsStock Market and Market Concentration“The U.S. Stock Market Is Undervalued, but It Looks Like a Rough Road Ahead,” by Dave Sekera, Morningstar.com, March 3, 2023.“What to Expect From Stocks in 2023,” by Susan Dziubinski and Dave Sekera, Morningstar.com, Jan. 23, 2023.“How to Invest in 2023′s Uncertain Market,” by David Sekera, Morningstar.com, March 27, 2023.“Q3 Stock Market Update: Time to Batten Down the Hatches or Raise the Sail,” by Dave Sekera, Morningstar.com, June 30, 2023.“3 Cheap Stocks to Buy and Hold This Summer,” by Dave Sekera and Susan Dziubinski, Morningstar.com, July 10, 2023.“Markets Brief: The ‘Magnificent 7′ Stock Have Driven the Rally, but Are They Too Expensive Now?” by Caryl Anne Francia, Morningstar.com, June 23, 2023.“Despite Rally, Stock Market Remains Undervalued,” by Dave Sekera, Morningstar.com, May 8, 2023.Sector View“4 Stocks to Buy in Q3 2023,” by Dave Sekera and Susan Dziubinski, Morningstar.com, July 5, 2023.“33 Undervalued Stocks,” by Susan Dziubinski, Morningstar.com, July 3, 2023.“10 Top Small-Cap Stocks to Buy for the Long Term,” by Susan Dziubinski, Morningstar.com, June 20, 2023.“2 Big Tech Stocks to Buy,” by David Sekera, Ali Mogharabi, and Susan Dziubinski, Morningstar.com, May 8, 2023.Value and Quality“Markets Brief: Fading Recession Fears, Cheap Valuations Have Small-Cap Stocks Looking Attractive,” by Sandy Ward and Jakir Hossain, Morningstar.com, June 2, 2023.“4 Undervalued Wide-Moat Stocks With Defensive Traits,” by Susan Dziubinski and Dave Sekera, Morningstar.com, June 26, 2023.Macroeconomic EnvironmentPreston Caldwell“U.S. Leading Indicators,” The Conference Board, conference-board.org, June 22, 2023.Bonds and Credit and Risk“Markets Brief: There’s Good News for Investors in Rates Staying Higher for Longer,” by Tom Lauricella and Caryl Anne Francia, Morningstar.com, July 7, 2023.“5 Undervalued Stocks for a Sideways Market,” by David Sekera and Susan Dziubinski, Morningstar.com, May 22, 2023.“Where to Invest in Bonds in 2023,” by David Sekera, Morningstar.com, Dec. 14, 2022.Real Estate“5 Cheap Real Estate Stocks to Buy,” by David Sekera and Susan Dziubinski, Morningstar.com, March 6, 2023.“Markets Brief: 10th Straight Fed Rate Hike Rate on Tap,” by Sandy Ward and Jakir Hossain, Morningstar.com, April 28, 2023.

Our guest this week is Dave Sekera. Dave is chief U.S. market strategist for Morningstar Research Services. In his role, Dave publishes research and commentary on the state of the markets and is a leading voice on <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a> and other platforms. Before assuming his current role, Dave was a managing director for DBRS Morningstar. Prior to joining Morningstar in 2010, Dave worked in the alternative asset management field. Dave earned his bachelor’s degree in finance and decision sciences from Miami University and holds the Chartered Financial Analyst designation. You can follow him on Twitter at <a href="https://twitter.com/mstarmarkets?lang=en" rel="nofollow" target="_blank">@MstarMarkets</a>.Background<a href="https://www.morningstar.com/authors/1514/david-sekera" rel="nofollow" target="_blank">Bio</a>Twitter handle: <a href="https://twitter.com/mstarmarkets?lang=en" rel="nofollow" target="_blank">@MstarMarkets</a>Stock Market and Market Concentration“<a href="https://www.morningstar.com/markets/us-stock-market-is-undervalued-it-looks-like-rough-road-ahead" rel="nofollow" target="_blank">The U.S. Stock Market Is Undervalued, but It Looks Like a Rough Road Ahead</a>,” by Dave Sekera, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, March 3, 2023.“<a href="https://www.morningstar.com/stocks/what-expect-stocks-2023" rel="nofollow" target="_blank">What to Expect From Stocks in 2023</a>,” by Susan Dziubinski and Dave Sekera, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, Jan. 23, 2023.“<a href="https://www.morningstar.com/markets/how-invest-2023s-uncertain-market" rel="nofollow" target="_blank">How to Invest in 2023′s Uncertain Market</a>,” by David Sekera, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, March 27, 2023.“<a href="https://www.morningstar.com/markets/third-quarter-2023-stock-market-outlook-time-batten-down-hatches-or-raise-sail" rel="nofollow" target="_blank">Q3 Stock Market Update: Time to Batten Down the Hatches or Raise the Sail</a>,” by Dave Sekera, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, June 30, 2023.“<a href="https://www.morningstar.com/markets/3-cheap-stocks-buy-hold-this-summer" rel="nofollow" target="_blank">3 Cheap Stocks to Buy and Hold This Summer</a>,” by Dave Sekera and Susan Dziubinski, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, July 10, 2023.“<a href="https://www.morningstar.com/markets/markets-brief-magnificent-seven-stocks-have-driven-rally-are-they-too-expensive-now" rel="nofollow" target="_blank">Markets Brief: The ‘Magnificent 7′ Stock Have Driven the Rally, but Are They Too Expensive Now?</a>” by Caryl Anne Francia, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, June 23, 2023.“<a href="https://www.morningstar.com/markets/market-outlook-may-2023" rel="nofollow" target="_blank">Despite Rally, Stock Market Remains Undervalued</a>,” by Dave Sekera, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, May 8, 2023.Sector View“<a href="https://www.morningstar.com/markets/4-stocks-buy-3q-2023" rel="nofollow" target="_blank">4 Stocks to Buy in Q3 2023</a>,” by Dave Sekera and Susan Dziubinski, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, July 5, 2023.“<a href="https://www.morningstar.com/stocks/33-undervalued-stocks-2" rel="nofollow" target="_blank">33 Undervalued Stocks</a>,” by Susan Dziubinski, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, July 3, 2023.“<a href="https://www.morningstar.com/stocks/10-top-small-cap-stocks-buy-long-term" rel="nofollow" target="_blank">10 Top Small-Cap Stocks to Buy for the Long Term</a>,” by Susan Dziubinski, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, June 20, 2023.“<a href="https://www.morningstar.com/stocks/2-big-tech-stocks-buy-2" rel="nofollow" target="_blank">2 Big Tech Stocks to Buy</a>,” by David Sekera, Ali Mogharabi, and Susan Dziubinski, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, May 8, 2023.Value and Quality“<a href="https://www.morningstar.com/markets/fading-recession-fears-cheap-valuations-have-small-cap-stocks-looking-attractive" rel="nofollow" target="_blank">Markets Brief: Fading Recession Fears, Cheap Valuations Have Small-Cap Stocks Looking Attractive</a>,” by Sandy Ward and Jakir Hossain, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, June 2, 2023.“<a href="https://www.morningstar.com/markets/4-undervalued-wide-moat-stocks-with-defensive-traits" rel="nofollow" target="_blank">4 Undervalued Wide-Moat Stocks With Defensive Traits</a>,” by Susan Dziubinski and Dave Sekera, <a href="http://morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, June 26, 2023.Macroeconomic Environment<a href="https://www.morningstar.com/authors/2047/preston-caldwell" rel="nofollow" target="_blank">Preston Caldwell</a>“<a href="https://www.conference-board.org/topics/us-leading-indicators#:~:text=The%20ten%20components%20of%20The,new%20orders%20for%20nondefense%20capital" rel="nofollow" target="_blank">U.S. Leading Indicators</a>,” The Conference Board, <a href="http://conference-board.org/" rel="nofollow" target="_blank">conference-board.org</a>, June 22, 2023.Bonds and Credit and Risk“<a href="https://www.morningstar.com/markets/markets-brief-theres-good-news-investors-rates-staying-higher-longer" rel="nofollow" target="_blank">Markets Brief: There’s Good News for Investors in Rates Staying Higher for Longer</a>,” by Tom Lauricella and Caryl Anne Francia, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, July 7, 2023.“<a href="https://www.morningstar.com/stocks/5-undervalued-stocks-sideways-market-2" rel="nofollow" target="_blank">5 Undervalued Stocks for a Sideways Market</a>,” by David Sekera and Susan Dziubinski, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, May 22, 2023.“<a href="https://www.morningstar.com/portfolios/where-invest-bonds-2023" rel="nofollow" target="_blank">Where to Invest in Bonds in 2023</a>,” by David Sekera, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, Dec. 14, 2022.Real Estate“<a href="https://www.morningstar.com/markets/5-cheap-real-estate-stocks-buy" rel="nofollow" target="_blank">5 Cheap Real Estate Stocks to Buy</a>,” by David Sekera and Susan Dziubinski, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, March 6, 2023.“<a href="https://www.morningstar.com/markets/markets-brief-10th-straight-fed-rate-hike-tap" rel="nofollow" target="_blank">Markets Brief: 10th Straight Fed Rate Hike Rate on Tap</a>,” by Sandy Ward and Jakir Hossain, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, April 28, 2023.

Dave Sekera: Taking the Market’s Temperature

Bill Bernstein

On today’s episode of The Long View podcast, we welcome back William Bernstein. This is Bill’s third appearance on the podcast. In fact, he was our very first guest back when we started The Long View in 2019. Bill is a neurologist turned investment advisor. He is also the author of several books, including The Intelligent Asset Allocator, The Four Pillars of Investing, If You Can: How Millennials Can Get Rich Slowly, and The Delusion of Crowds. Bill has just come out with a new edition of The Four Pillars of Investing. So, we wanted to have him on to discuss the new book and what’s changed since that book’s original publication more than 20 years ago.BackgroundBioThe Four Pillars of Investing, Second EditionThe Intelligent Asset Allocator: How to Build Your Portfolio to Maximize Returns and Minimize RiskIf You Can: How Millennials Can Get Rich SlowlyThe Delusion of Crowds: Why People Go Mad in Groups“Bernstein: ‘I Don’t Think the System Needs Nudges. I Think the System Needs Dynamite,’” The Long View podcast, Morningstar.com, May 7, 2019.“Bill Bernstein: We’re Starting to See all of the Signs of a Bubble,” The Long View podcast, Morningstar.com, March 10, 2021.The Four Pillars of InvestingRobert KaplanWho Is Charlie Munger?Antti IlmanenExpected Returns: An Investor’s Guide to Harvesting Market Rewards, by Antti Ilmanen“Bernstein’s ‘4 Pillars of Investing’ &amp; How They Work To Boost Returns,” by Anupam Nagar, economictimes.indiatimes.com, July 31, 2021.“Are You Leaving Money on the Table From Your Funds’ Returns?” by Amy Arnott, Morningstar.com, July 12, 2022.“William Bernstein on Deep Risk, Shallow Risk, and Investing for the Long-Term,” by Larry Frank, Sr., betterfinancialeducation.com, Aug. 24, 2022.Where Are the Customers’ Yachts? Or a Good Hard Look at Wall Street, by Fred SchwedRetirement“Playing Inflation Russian Roulette in Retirement,” by William Bernstein, advisorperspectives.com, Nov. 29, 2022.“Riskless at Age 104,” by William Bernstein, advisorperspectives.com, March 20, 2023.“William Bernstein on Holding Both Treasury Bonds and TIPS (or Savings I Bonds),” by Jonathan Ping, mymoneyblog.com, April 16, 2023.

On today’s episode of The Long View podcast, we welcome back William Bernstein. This is Bill’s third appearance on the podcast. In fact, he was our very first guest back when we started The Long View in 2019. Bill is a neurologist turned investment advisor. He is also the author of several books, including The Intelligent Asset Allocator, The Four Pillars of Investing, If You Can: How Millennials Can Get Rich Slowly, and The Delusion of Crowds. Bill has just come out with a new edition of The Four Pillars of Investing. So, we wanted to have him on to discuss the new book and what’s changed since that book’s original publication more than 20 years ago.Background<a href="https://blogs.cfainstitute.org/investor/author/williamjbernstein/" rel="nofollow" target="_blank">Bio</a><a href="https://www.mhprofessional.com/the-four-pillars-of-investing-second-edition-lessons-for-building-a-winning-portfolio-9781264715916-usa" rel="nofollow" target="_blank">The Four Pillars of Investing, Second Edition</a><a href="https://www.amazon.com/Intelligent-Asset-Allocator-Portfolio-Maximize/dp/1260026647" rel="nofollow" target="_blank">The Intelligent Asset Allocator: How to Build Your Portfolio to Maximize Returns and Minimize Risk</a><a href="https://www.amazon.com/If-You-Can-Millennials-Slowly/dp/098878033X" rel="nofollow" target="_blank">If You Can: How Millennials Can Get Rich Slowly</a><a href="https://www.amazon.com/Delusions-Crowds-Why-People-Groups/dp/0802157092" rel="nofollow" target="_blank">The Delusion of Crowds: Why People Go Mad in Groups</a>“<a href="https://www.morningstar.com/retirement/bernstein-i-dont-think-system-needs-nudges-i-think-system-needs-dynamite" rel="nofollow" target="_blank">Bernstein: ‘I Don’t Think the System Needs Nudges. I Think the System Needs Dynamite,’”</a> The Long View podcast, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, May 7, 2019.“<a href="https://the-long-view.simplecast.com/episodes/bill-bernstein-were-starting-to-see-all-of-the-signs-of-a-bubble/transcript" rel="nofollow" target="_blank">Bill Bernstein: We’re Starting to See all of the Signs of a Bubble</a>,” The Long View podcast, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, March 10, 2021.The Four Pillars of Investing<a href="https://www.robertdkaplan.com/#:~:text=Geopolitics.,Coming%20Anarchy%2C%20and%20Balkan%20Ghosts." rel="nofollow" target="_blank">Robert Kaplan</a><a href="https://www.investopedia.com/terms/c/charlie-munger.asp" rel="nofollow" target="_blank">Who Is Charlie Munger?</a><a href="https://www.aqr.com/About-Us/OurFirm/Antti-Ilmanen" rel="nofollow" target="_blank">Antti Ilmanen</a><a href="https://www.wiley.com/en-us/Expected+Returns%3A+An+Investor%27s+Guide+to+Harvesting+Market+Rewards-p-9781119990772" rel="nofollow" target="_blank">Expected Returns: An Investor’s Guide to Harvesting Market Rewards</a>, by Antti Ilmanen“<a href="https://economictimes.indiatimes.com/markets/stocks/news/bernsteins-4-pillars-of-investing-how-they-work-to-boost-returns/articleshow/84918659.cms?from=mdr" rel="nofollow" target="_blank">Bernstein’s ‘4 Pillars of Investing’ &amp; How They Work To Boost Returns</a>,” by Anupam Nagar, <a href="http://economictimes.indiatimes.com/" rel="nofollow" target="_blank">economictimes.indiatimes.com</a>, July 31, 2021.“<a href="https://www.morningstar.com/funds/are-you-leaving-money-table-your-funds-returns" rel="nofollow" target="_blank">Are You Leaving Money on the Table From Your Funds’ Returns?</a>” by Amy Arnott, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, July 12, 2022.“<a href="https://blog.betterfinancialeducation.com/sustainable-retirement/william-bernstein-on-deep-risk-shallow-risk-and-investing-for-the-long-term/" rel="nofollow" target="_blank">William Bernstein on Deep Risk, Shallow Risk, and Investing for the Long-Term</a>,” by Larry Frank, Sr., <a href="http://betterfinancialeducation.com/" rel="nofollow" target="_blank">betterfinancialeducation.com</a>, Aug. 24, 2022.<a href="https://www.amazon.com/Where-Are-Customers-Yachts-Street/dp/0471770892" rel="nofollow" target="_blank">Where Are the Customers’ Yachts? Or a Good Hard Look at Wall Street</a>, by Fred SchwedRetirement“<a href="https://www.advisorperspectives.com/articles/2022/11/29/playing-inflation-russian-roulette-in-retirement" rel="nofollow" target="_blank">Playing Inflation Russian Roulette in Retirement</a>,” by William Bernstein, <a href="http://advisorperspectives.com/" rel="nofollow" target="_blank">advisorperspectives.com</a>, Nov. 29, 2022.“<a href="https://www.advisorperspectives.com/articles/2023/03/20/riskless-at-age-104" rel="nofollow" target="_blank">Riskless at Age 104</a>,” by William Bernstein, <a href="http://advisorperspectives.com/" rel="nofollow" target="_blank">advisorperspectives.com</a>, March 20, 2023.“<a href="https://www.mymoneyblog.com/william-bernstein-treasury-bills-tips.html" rel="nofollow" target="_blank">William Bernstein on Holding Both Treasury Bonds and TIPS (or Savings I Bonds)</a>,” by Jonathan Ping, <a href="http://mymoneyblog.com/" rel="nofollow" target="_blank">mymoneyblog.com</a>, April 16, 2023.

Bill Bernstein: Revisiting The Four Pillars of Investing

Andrew Lo

Hi everyone. We’re taking the week off for the 4th of July holiday, but we wanted to use this week’s episode to honor Nobel Prize-winning economist Harry Markowitz, who recently passed away at the age of 95. Professor Markowitz is a giant of finance, someone who put diversification and Modern Portfolio Theory on the map, with his research transforming the way we allocate and invest our assets. While we didn’t have the opportunity to interview Professor Markowitz for the podcast, we were able to chat recently with someone who had interviewed him: author and financial researcher Dr. Andrew Lo. Dr. Lo recently published a book titled “In Pursuit of the Perfect Portfolio,” in which he profiled some of the leading figures in academic research and finance. None stood taller than Professor Markowitz, whom Dr. Lo discusses at length in this interview we aired in February of 2022. We think you’ll enjoy it. Thanks so much for listening and see you in a week. Have a happy holiday.Our guest this week is Dr. Andrew Lo. Dr. Lo is the Charles E. &amp; Susan T. Harris Professor, a professor of finance, and the director of the Laboratory for Financial Engineering at the MIT Sloan School of Management. His current research spans five areas, including evolutionary models of investor behavior and adaptive markets, systemic risk, and financial regulation, among others. Dr. Lo has published extensively in academic journals and authored a number of books including In Pursuit of the Perfect Portfolio, which he cowrote with Stephen Foerster. He has received numerous awards for his work and contributions to modern finance research throughout his career. He holds a bachelor’s in economics from Yale University and an AM and Ph.D. in economics from Harvard University.BackgroundIn Pursuit of the Perfect Portfolio: The Stories, Voices, and Key Insights of the Pioneers Who Shaped the Way We Invest, by Andrew W. Lo and Stephen R. FoersterAdaptive Markets: Financial Evolution at the Speed of Thought, by Andrew W. LoHistory"Thirty Maidens of Geneva," the Tontine Coffee-House, thetch.blog.com, Aug. 5, 2019."Why 18th Century Swiss Bankers Bet on the Lives of Young Girls," by Stephen Foerster, sfoerster-5338.medium.com, Sept. 2, 2021.William F. Sharpe"Keynes the Stock Market Investor: A Quantitative Analysis," by David Chambers, Elroy Dimson, and Justin Foo, papers.ssrn.com, Sept. 26, 2013.Eugene F. Fama"Algorithmic Models of Investor Behavior," by Andrew Lo and Alexander Remorov, eqderivatives.com, 2021."In Pursuit of the Perfect Portfolio: Eugene Fama," Interview with Andrew Lo and Eugene Fama, youtube.com, Dec. 15, 2016."Why Artificial Intelligence May Not Be as Useful or as Challenging as Artificial Stupidity," by Andrew Lo, hdsr.mitpress.mit.edu, July 1, 2019.Charles D. Ellis"Charley Ellis: Why Active Investing Is Still a Loser's Game," The Long View podcast, Morningstar.com, May 27, 2020.Other"7 Principles to Help You Create Your Perfect Portfolio," by Robert Powell, marketwatch.com, Nov. 10, 2021.

Hi everyone. We’re taking the week off for the 4th of July holiday, but we wanted to use this week’s episode to honor Nobel Prize-winning economist Harry Markowitz, who recently passed away at the age of 95. Professor Markowitz is a giant of finance, someone who put diversification and Modern Portfolio Theory on the map, with his research transforming the way we allocate and invest our assets. While we didn’t have the opportunity to interview Professor Markowitz for the podcast, we were able to chat recently with someone who had interviewed him: author and financial researcher Dr. Andrew Lo. Dr. Lo recently published a book titled “In Pursuit of the Perfect Portfolio,” in which he profiled some of the leading figures in academic research and finance. None stood taller than Professor Markowitz, whom Dr. Lo discusses at length in this interview we aired in February of 2022. We think you’ll enjoy it. Thanks so much for listening and see you in a week. Have a happy holiday.Our guest this week is Dr. Andrew Lo. Dr. Lo is the Charles E. &amp; Susan T. Harris Professor, a professor of finance, and the director of the Laboratory for Financial Engineering at the MIT Sloan School of Management. His current research spans five areas, including evolutionary models of investor behavior and adaptive markets, systemic risk, and financial regulation, among others. Dr. Lo has published extensively in academic journals and authored a number of books including In Pursuit of the Perfect Portfolio, which he cowrote with Stephen Foerster. He has received numerous awards for his work and contributions to modern finance research throughout his career. He holds a bachelor’s in economics from Yale University and an AM and Ph.D. in economics from Harvard University.Background<a href="https://www.amazon.com/Pursuit-Perfect-Portfolio-Insights-Pioneers/dp/0691215200/ref=tmm_hrd_swatch_0?_encoding=UTF8&amp;qid=1643649744&amp;sr=1-1" rel="nofollow" target="_blank">In Pursuit of the Perfect Portfolio: The Stories, Voices, and Key Insights of the Pioneers Who Shaped the Way We Invest</a>, by Andrew W. Lo and Stephen R. Foerster<a href="https://www.amazon.com/Adaptive-Markets-Financial-Evolution-Thought/dp/0691135142/ref=tmm_hrd_swatch_0?_encoding=UTF8&amp;qid=&amp;sr=" rel="nofollow" target="_blank">Adaptive Markets: Financial Evolution at the Speed of Thought</a>, by Andrew W. LoHistory"<a href="https://thetchblog.com/2019/08/05/thirty-maidens-of-geneva/" rel="nofollow" target="_blank">Thirty Maidens of Geneva</a>," the Tontine Coffee-House, <a href="http://thetch.blog.com" rel="nofollow" target="_blank">thetch.blog.com</a>, Aug. 5, 2019."<a href="https://sfoerster-5338.medium.com/what-an-18th-century-swiss-scheme-teaches-us-about-diversification-and-financial-innovations-c3eb65755463" rel="nofollow" target="_blank">Why 18th Century Swiss Bankers Bet on the Lives of Young Girls</a>," by Stephen Foerster, <a href="http://sfoerster-5338.medium.com" rel="nofollow" target="_blank">sfoerster-5338.medium.com</a>, Sept. 2, 2021.William F. Sharpe"<a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2023011" rel="nofollow" target="_blank">Keynes the Stock Market Investor: A Quantitative Analysis</a>," by David Chambers, Elroy Dimson, and Justin Foo, <a href="http://papers.ssrn.com" rel="nofollow" target="_blank">papers.ssrn.com</a>, Sept. 26, 2013.Eugene F. Fama"<a href="https://alo.mit.edu/topic/hedge-funds-and-asset-market-dynamics/" rel="nofollow" target="_blank">Algorithmic Models of Investor Behavior</a>," by Andrew Lo and Alexander Remorov, <a href="http://eqderivatives.com" rel="nofollow" target="_blank">eqderivatives.com</a>, 2021. "<a href="https://www.youtube.com/watch?v=dj-RO4mh-wA" rel="nofollow" target="_blank">In Pursuit of the Perfect Portfolio: Eugene Fama</a>," Interview with Andrew Lo and Eugene Fama, <a href="http://youtube.com" rel="nofollow" target="_blank">youtube.com</a>, Dec. 15, 2016."<a href="https://hdsr.mitpress.mit.edu/pub/pjebp7io/release/4" rel="nofollow" target="_blank">Why Artificial Intelligence May Not Be as Useful or as Challenging as Artificial Stupidity</a>," by Andrew Lo, <a href="http://hdsr.mitpress.mit.edu" rel="nofollow" target="_blank">hdsr.mitpress.mit.edu</a>, July 1, 2019.Charles D. Ellis"<a href="https://www.morningstar.com/podcasts/the-long-view/58" rel="nofollow" target="_blank">Charley Ellis: Why Active Investing Is Still a Loser's Game</a>," The Long View podcast, <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a>, May 27, 2020.Other"<a href="https://www.marketwatch.com/story/yes-you-can-create-a-perfect-portfolio-heres-how-11636478871" rel="nofollow" target="_blank">7 Principles to Help You Create Your Perfect Portfolio</a>," by Robert Powell, <a href="http://marketwatch.com" rel="nofollow" target="_blank">marketwatch.com</a>, Nov. 10, 2021.

Andrew Lo: Finding the Perfect Portfolio--a ‘Never-Ending Journey’

Eric Weigel

Fritz Gilbert

Our guests on the podcast today are Eric Weigel and Fritz Gilbert. Fritz is a repeat guest on The Long View. He writes the popular Retirement Manifesto blog, and he also wrote a book about retirement called Keys to a Successful Retirement: Staying Happy, Active, and Productive in Your Retired Years. Eric Weigel is the founder of a retirement coaching firm called Retire With Possibilities, and he is also the author of a book on retirement called Reimagining Retirement: 9 Keys to True Wealth. Together they collaborated on a recent survey of retirees and preretirees to gauge their attitudes about retirement and to help flag potential blind spots about retirement planning.Listen Now: Listen and subscribe to Morningstar’s The Long View from your mobile device: Apple Podcasts | Spotify | Google Play | StitcherBackgroundEric Weigel BioFritz Gilbert BioRetirement Manifesto BlogKeys to a Successful Retirement: Staying Happy, Active, and Productive in Your Retired Years, by Fritz Gilbert“Fritz Gilbert: Early Retirement Made Simple,” The Long View podcast, morningstar.com, Oct. 26, 2021.Retire With PossibilitiesReimagining Retirement: 9 Keys to True Wealth, by Eric WeigelSurvey and Results“Retirement Perspectives and Attitudes Survey,” by Fritz Gilbert and Eric Weigel, retirewithpossibilities.com, May 2023.“Laura Carstensen: ‘I’m Suggesting We Change the Way We Work,’” The Long View podcast, Morningstar.com, Sept. 14, 2021.“7 Secrets to a Great Retirement,” by Fritz Gilbert, theretirementmanifesto.com, Feb. 2, 2023.80th Birthday—FranklinCovey video“The End of History Illusion,” by Jordi Quoidbach, Daniel Gilbert, and Timothy Wilson, science.org, Jan. 4, 2013.Blind Spots“Shining the Light on Retirement Blind Spots,” by Fritz Gilbert, theretirementmanifesto.com, May 18, 2023.“Introducing the 90/10 Rule of Retirement,” by Fritz Gilbert, theretirementmanifesto.com, Oct. 7, 2021.Chip ConleyHolmes-Rahe Scale“Longevity and the New Journey of Retirement,” EdwardJones study, agewave.com.Other“The Ten Commandments of Retirement,” by Fritz Gilbert, theretirementmanifesto.com, March 6, 2018.

Our guests on the podcast today are Eric Weigel and Fritz Gilbert. Fritz is a repeat guest on The Long View. He writes the popular Retirement Manifesto blog, and he also wrote a book about retirement called Keys to a Successful Retirement: Staying Happy, Active, and Productive in Your Retired Years. Eric Weigel is the founder of a retirement coaching firm called Retire With Possibilities, and he is also the author of a book on retirement called Reimagining Retirement: 9 Keys to True Wealth. Together they collaborated on a recent survey of retirees and preretirees to gauge their attitudes about retirement and to help flag potential blind spots about retirement planning.<a href="https://the-long-view.simplecast.com/episodes/eric-weigel-and-fritz-gilbert-uncovering-blind-spots-in-retirement-planning" rel="nofollow" target="_blank">Listen Now</a>: Listen and subscribe to Morningstar’s The Long View from your mobile device: <a href="https://podcasts.apple.com/us/podcast/the-long-view/id1462214964" rel="nofollow" target="_blank">Apple Podcasts</a> | <a href="https://open.spotify.com/show/21UMpSDjAl7HzyQ0M0wvLw" rel="nofollow" target="_blank">Spotify</a> | <a href="https://www.google.com/podcasts?feed=aHR0cHM6Ly9mZWVkcy5zaW1wbGVjYXN0LmNvbS81U0V3a0pZaQ%3D%3D" rel="nofollow" target="_blank">Google Play</a> | <a href="https://www.stitcher.com/s?fid=398637&amp;refid=stpr" rel="nofollow" target="_blank">Stitcher</a>Background<a href="https://www.linkedin.com/in/ejweigel?original_referer=https%3A%2F%2Fwww.google.com%2F" rel="nofollow" target="_blank">Eric Weigel Bio</a><a href="https://www.linkedin.com/in/fritzgilbert/" rel="nofollow" target="_blank">Fritz Gilbert Bio</a><a href="https://www.theretirementmanifesto.com/blog/" rel="nofollow" target="_blank">Retirement Manifesto Blog</a><a href="https://www.simonandschuster.com/books/Keys-to-a-Successful-Retirement/Fritz-Gilbert/9781646113392" rel="nofollow" target="_blank">Keys to a Successful Retirement: Staying Happy, Active, and Productive in Your Retired Years</a>, by Fritz Gilbert“<a href="https://www.morningstar.com/podcasts/the-long-view/e8b3c47b-0e67-4c00-b146-8b1060a5d604" rel="nofollow" target="_blank">Fritz Gilbert: Early Retirement Made Simple</a>,” The Long View podcast, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">morningstar.com</a>, Oct. 26, 2021.<a href="https://www.retirewithpossibilities.com/" rel="nofollow" target="_blank">Retire With Possibilities</a><a href="https://www.retirewithpossibilities.com/reimagine-retirement/" rel="nofollow" target="_blank">Reimagining Retirement: 9 Keys to True Wealth</a>, by Eric WeigelSurvey and Results“<a href="https://www.retirewithpossibilities.com/wp-content/uploads/2023/05/Retirement-Perspectives-and-Attitudes-Survey-May-2023.pdf" rel="nofollow" target="_blank">Retirement Perspectives and Attitudes Survey</a>,” by Fritz Gilbert and Eric Weigel, <a href="http://retirewithpossibilities.com/" rel="nofollow" target="_blank">retirewithpossibilities.com</a>, May 2023.“<a href="https://www.morningstar.com/podcasts/the-long-view/0ad88f54-46cb-49ef-9359-678c5b0165a8" rel="nofollow" target="_blank">Laura Carstensen: ‘I’m Suggesting We Change the Way We Work,’”</a> The Long View podcast, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, Sept. 14, 2021.“<a href="https://www.theretirementmanifesto.com/7-secrets-to-a-great-retirement/" rel="nofollow" target="_blank">7 Secrets to a Great Retirement</a>,” by Fritz Gilbert, <a href="http://theretirementmanifesto.com/" rel="nofollow" target="_blank">theretirementmanifesto.com</a>, Feb. 2, 2023.<a href="https://resources.franklincovey.com/mkt-7hv1/80th-birthday" rel="nofollow" target="_blank">80th Birthday</a>—FranklinCovey video“<a href="https://www.science.org/doi/10.1126/science.1229294" rel="nofollow" target="_blank">The End of History Illusion</a>,” by Jordi Quoidbach, Daniel Gilbert, and Timothy Wilson, <a href="http://science.org/" rel="nofollow" target="_blank">science.org</a>, Jan. 4, 2013.Blind Spots“<a href="https://www.theretirementmanifesto.com/shining-the-light-on-retirement-blind-spots/" rel="nofollow" target="_blank">Shining the Light on Retirement Blind Spots</a>,” by Fritz Gilbert, <a href="http://theretirementmanifesto.com/" rel="nofollow" target="_blank">theretirementmanifesto.com</a>, May 18, 2023.“<a href="https://www.theretirementmanifesto.com/introducing-the-90-10-rule-of-retirement/" rel="nofollow" target="_blank">Introducing the 90/10 Rule of Retirement</a>,” by Fritz Gilbert, <a href="http://theretirementmanifesto.com/" rel="nofollow" target="_blank">theretirementmanifesto.com</a>, Oct. 7, 2021.<a href="https://chipconley.com/" rel="nofollow" target="_blank">Chip Conley</a><a href="https://www.stress.org/holmes-rahe-stress-inventory" rel="nofollow" target="_blank">Holmes-Rahe Scale</a>“<a href="https://agewave.com/what-we-do/landmark-research-and-consulting/research-studies/longevity-and-the-new-journey-of-retirement/" rel="nofollow" target="_blank">Longevity and the New Journey of Retirement</a>,” EdwardJones study, <a href="http://agewave.com/" rel="nofollow" target="_blank">agewave.com</a>.Other“<a href="https://www.theretirementmanifesto.com/the-ten-commandments-of-retirement/" rel="nofollow" target="_blank">The Ten Commandments of Retirement</a>,” by Fritz Gilbert, <a href="http://theretirementmanifesto.com/" rel="nofollow" target="_blank">theretirementmanifesto.com</a>, March 6, 2018.

Eric Weigel and Fritz Gilbert: Uncovering Blind Spots in Retirement Planning

Talmon Smith

Our guest on the podcast today is New York Times economics reporter Talmon Smith. Before joining the Business desk, he was a staff editor for the Times Opinion section covering public policy, economics, and culture. He began his career as a researcher and visiting scholar at NYU’s Journalism Institute and was assistant to the editor in chief at GQ magazine. He graduated from Tufts University with a major in history.BackgroundBioTwitter handle: @talmonsmithEconomy, Inflation, and the Great Wealth Transfer“ ‘I’m in Hot Demand, Baby’: Nebraska Thrives (and Copes) With Low Unemployment,” By Talmon Joseph Smith, nytimes.com, April 1, 2022.“Job Openings Rose in April, Defying Cooling Trend,” by Talmon Joseph Smith, nytimes.com, May 31, 2023.“Companies Push Prices Higher, Protecting Profits but Adding to Inflation,” by Talmon Joseph Smith and Joe Rennison, nytimes.com, May 30, 2023.“Wages May Not Be Inflation’s Cause, but They’re the Focus of the Cure,” by Talmon Joseph Smith, seattletimes.com, April 7, 2023.“Even a Soft Landing for the Economy Might Be Uneven,” by Talmon Joseph Smith, buffalonews.com, Jan. 8, 2023.“As the Fed Raises Rates, Worries Grow About Corporate Bonds,” by Talmon Joseph Smith, nytimes.com, Nov. 11, 2022.“What Will Happen to Black Workers’ Gains if There’s a Recession?” by Talmon Joseph Smith, nytimes.com, Aug. 24, 2022.“Hiring Remains Strong Even as Fed Tries to Cool Economy,” by Talmon Joseph Smith, Lydia DePillis, and Jeanna Smialek, nytimes.com, June 3, 2022.“The Greatest Wealth Transfer in History Is Here, With Familiar (Rich) Winners,” by Talmon Joseph Smith, nytimes.com, May 14, 2023.

Our guest on the podcast today is New York Times economics reporter Talmon Smith. Before joining the Business desk, he was a staff editor for the Times Opinion section covering public policy, economics, and culture. He began his career as a researcher and visiting scholar at NYU’s Journalism Institute and was assistant to the editor in chief at GQ magazine. He graduated from Tufts University with a major in history.Background<a href="https://www.huffpost.com/author/talmon-smith-838" rel="nofollow" target="_blank">Bio</a>Twitter handle: <a href="https://twitter.com/talmonsmith?lang=en" rel="nofollow" target="_blank">@talmonsmith</a>Economy, Inflation, and the Great Wealth Transfer“ ‘<a href="https://www.nytimes.com/2022/04/01/business/economy/nebraska-economy-unemployment-labor.html" rel="nofollow" target="_blank">I’m in Hot Demand, Baby’: Nebraska Thrives (and Copes) With Low Unemployment</a>,” By Talmon Joseph Smith, <a href="http://nytimes.com/" rel="nofollow" target="_blank">nytimes.com</a>, April 1, 2022.“<a href="https://www.nytimes.com/2023/05/31/business/economy/jobs-layoffs-openings-jolts.html" rel="nofollow" target="_blank">Job Openings Rose in April, Defying Cooling Trend</a>,” by Talmon Joseph Smith, <a href="http://nytimes.com/" rel="nofollow" target="_blank">nytimes.com</a>, May 31, 2023.“<a href="https://www.nytimes.com/2023/05/30/business/economy/inflation-companies-profits-higher-prices.html" rel="nofollow" target="_blank">Companies Push Prices Higher, Protecting Profits but Adding to Inflation</a>,” by Talmon Joseph Smith and Joe Rennison, <a href="http://nytimes.com/" rel="nofollow" target="_blank">nytimes.com</a>, May 30, 2023.“<a href="https://www.seattletimes.com/business/wages-may-not-be-inflations-cause-but-theyre-the-focus-of-the-cure/" rel="nofollow" target="_blank">Wages May Not Be Inflation’s Cause, but They’re the Focus of the Cure</a>,” by Talmon Joseph Smith, <a href="http://seattletimes.com/" rel="nofollow" target="_blank">seattletimes.com</a>, April 7, 2023.“<a href="https://buffalonews.com/even-a-soft-landing-for-the-economy-might-be-uneven/article_7d71c036-fb47-581f-bc5e-d1c51b22be5f.html" rel="nofollow" target="_blank">Even a Soft Landing for the Economy Might Be Uneven</a>,” by Talmon Joseph Smith, <a href="http://buffalonews.com/" rel="nofollow" target="_blank">buffalonews.com</a>, Jan. 8, 2023.“<a href="https://www.nytimes.com/2022/11/10/business/economy/corporate-bonds-fed-interest-rates.html" rel="nofollow" target="_blank">As the Fed Raises Rates, Worries Grow About Corporate Bonds</a>,” by Talmon Joseph Smith, <a href="http://nytimes.com/" rel="nofollow" target="_blank">nytimes.com</a>, Nov. 11, 2022.“<a href="https://www.nytimes.com/2022/08/24/business/economy/black-workers-recession.html" rel="nofollow" target="_blank">What Will Happen to Black Workers’ Gains if There’s a Recession?</a>” by Talmon Joseph Smith, <a href="http://nytimes.com/" rel="nofollow" target="_blank">nytimes.com</a>, Aug. 24, 2022.“<a href="https://www.nytimes.com/2022/06/03/business/economy/forecasters-expect-job-gains-to-slow-yet-remain-solid.html" rel="nofollow" target="_blank">Hiring Remains Strong Even as Fed Tries to Cool Economy</a>,” by Talmon Joseph Smith, Lydia DePillis, and Jeanna Smialek, <a href="http://nytimes.com/" rel="nofollow" target="_blank">nytimes.com</a>, June 3, 2022.“<a href="https://www.nytimes.com/2023/05/14/business/economy/wealth-generations.html" rel="nofollow" target="_blank">The Greatest Wealth Transfer in History Is Here, With Familiar (Rich) Winners</a>,” by Talmon Joseph Smith, <a href="http://nytimes.com/" rel="nofollow" target="_blank">nytimes.com</a>, May 14, 2023.

Talmon Smith: Assessing the Greatest Wealth Transfer in History

Jeremy Schwartz

Our guest this week is Jeremy Schwartz. Jeremy is global chief investment officer for WisdomTree Investments. In that role, Jeremy leads the firm’s investment team and is responsible for constructing its equity indexes, quantitative active strategies, and model portfolios. Jeremy joined WisdomTree in May 2005 and previously held several posts at the firm, including serving as its global head of research. Prior to joining WisdomTree, Jeremy served as a research assistant for Professor Jeremy Siegel and is credited as Siegel’s co-author of the sixth edition of the book, Stocks for the Long Run. Jeremy received his bachelor’s degree from the Wharton School and is a CFA charterholder.BackgroundBioStocks for the Long Run: The Definitive Guide to Financial Market Returns &amp; Long-Term Investment Strategies, Sixth Edition, by Jeremy Siegel, with Jeremy SchwartzThe Future for Investors: Why the Tried and True Triumphs Over the Bold and the New, by Jeremy SiegelDo-Nothing Strategies“What Beat the S&amp;P 500 Over the Past Three Decades? Doing Nothing,” by Jeffrey Ptak, Morningstar.com, April 17, 2023.Creative Destruction: Why Companies That Are Built to Last Underperform the Market—and How to Successfully Transform Them, by Richard Foster and Sarah Kaplan“Wise Words in Warren’s Recent Letter,” by Jeremy Schwartz, wisdomtree.com, March 8, 2023.“Long-Term Returns on the Original S&amp;P 500 Companies,” by Jeremy Siegel and Jeremy Schwartz, jstor.org, 2006.Market Outlook“The Most Important Charts for 2023,” by Jeremy Schwartz and Brian Manby, caia.org, May 8, 2023.Risk and Return“A Surprise Influence in S&amp;P 500 Earnings? The Dollar,” by Jeremy Schwartz, wisdomtree.com, May 31, 2023.Fama and French Three Factor Model Definition: Formula and Interpretation, by Adam Hayes, www.investopedia.com, May 31, 2022.“A Deep Dive Into Growth &amp; Momentum,” by Jeremy Schwartz, wisdomtree.com, July 12, 2021.“A Surprising Rebalance Season for S&amp;P Style Indexes,” by Jeremy Schwartz, wisdomtree.com, Jan. 5, 2023.WisdomTree Index Performance AttributionInflation and Dividends“A New Regime for Commodities: An Update,” by Jeremy Schwartz, wisdomtree.com, May 31, 2022.“To Reveal Value, Start With Dividends,” Focus Points video series with Jeremy Schwartz, wisdomtree.com, Jan. 11, 2023.“Quality Dividend Growth Performance Viewed Through Venn by Two Sigma,” by Jeremy Schwartz and Christopher Carrano, wisdomtree.com, May 15, 2023.Foreign Stocks“Lowering Your China Risk,” by Jeremy Schwartz and Matt Wagner, wisdomtree.com, May 19, 2023.“Values Strong Run in Emerging Markets,” by Aneeka Gupta and Jeremy Schwartz, wisdomtree.com, May 5, 2023.“Don’t Layer Currency Risk on Top of Equity Exposure,” by Jeremy Schwartz and Christopher Gannatti, wisdomtree.com, 2019.ESG“Revisiting the WisdomTree ESG Model Portfolios,” by Scott Welch, wisdomtree.com, Oct. 14, 2022.“Aswath Damodaran: A Valuation Expert’s Take on Inflation, Stock Buybacks, ESG, and More,” The Long View podcast, Morningstar.com, May 16, 2023.

Our guest this week is Jeremy Schwartz. Jeremy is global chief investment officer for WisdomTree Investments. In that role, Jeremy leads the firm’s investment team and is responsible for constructing its equity indexes, quantitative active strategies, and model portfolios. Jeremy joined WisdomTree in May 2005 and previously held several posts at the firm, including serving as its global head of research. Prior to joining WisdomTree, Jeremy served as a research assistant for Professor Jeremy Siegel and is credited as Siegel’s co-author of the sixth edition of the book, Stocks for the Long Run. Jeremy received his bachelor’s degree from the Wharton School and is a CFA charterholder.Background<a href="https://www.wisdomtree.com/investments/jeremy-schwartz" rel="nofollow" target="_blank">Bio</a><a href="https://wsp.wharton.upenn.edu/book/stocks-for-the-long-run/" rel="nofollow" target="_blank">Stocks for the Long Run: The Definitive Guide to Financial Market Returns &amp; Long-Term Investment Strategies, Sixth Edition</a>, by Jeremy Siegel, with Jeremy Schwartz<a href="https://www.penguinrandomhouse.com/books/166741/the-future-for-investors-by-jeremy-j-siegel-author-of-stocks-for-the-long-run/" rel="nofollow" target="_blank">The Future for Investors: Why the Tried and True Triumphs Over the Bold and the New</a>, by Jeremy SiegelDo-Nothing Strategies“<a href="https://www.morningstar.com/stocks/what-beat-sp-500-over-past-three-decades-doing-nothing" rel="nofollow" target="_blank">What Beat the S&amp;P 500 Over the Past Three Decades? Doing Nothing</a>,” by Jeffrey Ptak, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, April 17, 2023.<a href="https://www.penguinrandomhouse.com/books/54982/creative-destruction-by-richard-foster-and-sarah-kaplan/" rel="nofollow" target="_blank">Creative Destruction: Why Companies That Are Built to Last Underperform the Market—and How to Successfully Transform Them</a>, by Richard Foster and Sarah Kaplan“<a href="https://www.wisdomtree.com/investments/blog/2023/03/08/wise-words-in-warrens-recent-letter" rel="nofollow" target="_blank">Wise Words in Warren’s Recent Letter</a>,” by Jeremy Schwartz, <a href="http://wisdomtree.com/" rel="nofollow" target="_blank">wisdomtree.com</a>, March 8, 2023.“<a href="https://www.jstor.org/stable/4480727" rel="nofollow" target="_blank">Long-Term Returns on the Original S&amp;P 500 Companies</a>,” by Jeremy Siegel and Jeremy Schwartz, <a href="http://jstor.org/" rel="nofollow" target="_blank">jstor.org</a>, 2006.Market Outlook“<a href="https://caia.org/blog/2023/05/08/most-important-charts-2023" rel="nofollow" target="_blank">The Most Important Charts for 2023</a>,” by Jeremy Schwartz and Brian Manby, <a href="http://caia.org/" rel="nofollow" target="_blank">caia.org</a>, May 8, 2023.Risk and Return“<a href="https://www.wisdomtree.com/api/sitecore/pdf/getblogpdf?id=3e6d5206-7e74-4c10-8ed7-c563bdb9a780" rel="nofollow" target="_blank">A Surprise Influence in S&amp;P 500 Earnings? The Dollar</a>,” by Jeremy Schwartz, <a href="http://wisdomtree.com/" rel="nofollow" target="_blank">wisdomtree.com</a>, May 31, 2023.<a href="https://www.investopedia.com/terms/f/famaandfrenchthreefactormodel.asp" rel="nofollow" target="_blank">Fama and French Three Factor Model Definition: Formula and Interpretation</a>, by Adam Hayes, <a href="https://www.investopedia.com/" rel="nofollow" target="_blank">www.investopedia.com</a>, May 31, 2022.“<a href="https://www.wisdomtree.com/investments/blog/2021/07/12/a-deep-dive-into-growth-,-a-,-momentum" rel="nofollow" target="_blank">A Deep Dive Into Growth &amp; Momentum</a>,” by Jeremy Schwartz, <a href="http://wisdomtree.com/" rel="nofollow" target="_blank">wisdomtree.com</a>, July 12, 2021.“<a href="https://www.wisdomtree.com/api/sitecore/pdf/getblogpdf?id=a2571ea9-d5c6-4926-8a21-7508081d0969" rel="nofollow" target="_blank">A Surprising Rebalance Season for S&amp;P Style Indexes</a>,” by Jeremy Schwartz, <a href="http://wisdomtree.com/" rel="nofollow" target="_blank">wisdomtree.com</a>, Jan. 5, 2023.<a href="https://www.wisdomtree.com/investments/index/index-performance-attribution" rel="nofollow" target="_blank">WisdomTree Index Performance Attribution</a>Inflation and Dividends“<a href="https://www.wisdomtree.com/investments/blog/2022/05/31/a-new-regime-for-commodities-an-update" rel="nofollow" target="_blank">A New Regime for Commodities: An Update</a>,” by Jeremy Schwartz, <a href="http://wisdomtree.com/" rel="nofollow" target="_blank">wisdomtree.com</a>, May 31, 2022.“<a href="https://www.wisdomtree.com/investments/multimedia/videos/to-reveal-value-start-with-dividends" rel="nofollow" target="_blank">To Reveal Value, Start With Dividends</a>,” Focus Points video series with Jeremy Schwartz, <a href="http://wisdomtree.com/" rel="nofollow" target="_blank">wisdomtree.com</a>, Jan. 11, 2023.“<a href="https://www.wisdomtree.com/investments/blog/2023/05/15/quality-dividend-growth-performance-viewed-through-venn-by-two-sigma" rel="nofollow" target="_blank">Quality Dividend Growth Performance Viewed Through Venn by Two Sigma</a>,” by Jeremy Schwartz and Christopher Carrano, <a href="http://wisdomtree.com/" rel="nofollow" target="_blank">wisdomtree.com</a>, May 15, 2023.Foreign Stocks“<a href="https://www.wisdomtree.com/investments/blog/2023/05/19/lowering-your-china-risk" rel="nofollow" target="_blank">Lowering Your China Risk</a>,” by Jeremy Schwartz and Matt Wagner, <a href="http://wisdomtree.com/" rel="nofollow" target="_blank">wisdomtree.com</a>, May 19, 2023.“<a href="https://www.wisdomtree.com/investments/blog/2023/05/05/values-strong-run-in-emerging-markets" rel="nofollow" target="_blank">Values Strong Run in Emerging Markets</a>,” by Aneeka Gupta and Jeremy Schwartz, <a href="http://wisdomtree.com/" rel="nofollow" target="_blank">wisdomtree.com</a>, May 5, 2023.“<a href="https://www.wisdomtree.com/-/media/us-media-files/documents/resource-library/whitepaper/currency-hedging_wp.pdf" rel="nofollow" target="_blank">Don’t Layer Currency Risk on Top of Equity Exposure</a>,” by Jeremy Schwartz and Christopher Gannatti, <a href="http://wisdomtree.com/" rel="nofollow" target="_blank">wisdomtree.com</a>, 2019.ESG“<a href="https://www.wisdomtree.com/investments/blog/2022/10/14/revisiting-the-wisdomtree-esg-model-portfolios" rel="nofollow" target="_blank">Revisiting the WisdomTree ESG Model Portfolios</a>,” by Scott Welch, <a href="http://wisdomtree.com/" rel="nofollow" target="_blank">wisdomtree.com</a>, Oct. 14, 2022.“<a href="https://www.morningstar.com/podcasts/the-long-view/e945c896-180e-45fc-9057-2b070a83c6fd" rel="nofollow" target="_blank">Aswath Damodaran: A Valuation Expert’s Take on Inflation, Stock Buybacks, ESG, and More</a>,” The Long View podcast, <a href="http://www.morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, May 16, 2023.

Jeremy Schwartz: Why Stocks Are Good Inflation Hedges

Ramit Sethi

Today we’re welcoming back Ramit Sethi. Ramit is a personal finance expert and author. And this year, he added a new line item to his resume: TV host. His series How to Get Rich debuted on Netflix in April. It features in-depth conversations with individuals about their financial lives. Ramit’s first book, I Will Teach You to Be Rich, published in 2009, was a bestseller; a second edition of the book came out in 2019. Ramit is the founder of iwillteachyoutoberich.com, and he’s also the host of a podcast called I Will Teach You To Be Rich, which features in-depth conversations with couples about money.BackgroundBioI Will Teach You To Be Rich, by Ramit SethiI Will Teach You To Be Rich podcastHow To Get Rich, Netflix seriesTwitter: @ramit“Ramit Sethi: ‘What Is Your Rich Life?’” The Long View podcast, Morningstar.com, Nov. 10, 2020.“Ramit Sethi: How Can Couples Make Peace Over Money?” The Long View podcast, Morningstar.com, Nov. 30, 2021.Rich Lives“10 Easy-to-Follow Money Rules to Improve Your Financial Health,” by Ramit Sethi, iwillteachyoutoberich.com, Nov. 23, 2020.“‘I Will Teach You to Be Rich’ Author: 3 Money Rules I Follow to Build Wealth and Enjoy Life—and How to Create Your Own,” by Kamaron McNair, cnbc.om, April 14, 2023.“How to Live a Rich Life (+Rules That Will Help You ACHIEVE It!),” by Ramit Sethi, iwillteachyoutoberich.com, Feb. 27, 2023.“Ramit Sethi—How to Play Offense With Money, Plan Bucket Lists, Build a Rich Life With Your Partner, and Take a Powerful $100 Challenge (#524),” The Tim Ferriss Show podcast, tim.blog.com, July 26, 2021.Budgeting and Conscious SpendingRamit’s Conscious Spending Plan“Conscious Spending Plan: How to Budget by Looking Into the Future,” by Ramit Sethi, iwillteachyoutoberich.com, Feb. 27, 2023.“How to Find all my Debts (&amp; Pay Them Off),” by Ramit Sethi, iwillteachyoutoberich.com, Oct. 3, 2022.“4 Ways to Get Out of Debt Fast (+Mistakes to Avoid),” by Ramit Sethi, iwillteachyoutoberich.com, Aug. 10, 2021.Jobs and Income“Finding the Right Money-Making Ideas (That Anyone Can Do),” by Ramit Sethi, iwillteachyoutoberich.com, March 28, 2023.Homeownership“3 Practical Things Every First-Time Homebuyer Should Know, According to the Star of Netflix’s ‘How To Get Rich,’” by Lee Aquino, businessinsider.com, April 25, 2023.“Buying a House in Recession: Pros, Cons, and Expert Advice,” by Ramit Sethi, iwillteachyoutoberich.com, March 20, 2023.“Should I Buy a House Now? (5 Guidelines and Perfect Timing Tips),” by Ramit Sethi, iwillteachyoutoberich.com, Sept. 15, 2021.Investing“How to Trade Stocks (and Find Out if Trading Is Right for You),” by Ramit Sethi, iwillteachyoutoberich.com, Feb. 27, 2023.“Here’s Our Take on Day Trading in 2023,” by Ramit Sethi, iwillteachyoutoberich.com, March 3, 2020.“How to Invest in Index Funds (Get Invested in 5 Min),” by Ramit Sethi, iwillteachyoutoberich.com, Feb. 27, 2023.“Diversified Investment Portfolios: How to Build One (+ Examples),” by Ramit Sethi, iwillteachyoutoberich.com, Oct. 27, 2021.“High Risk vs. Low Risk Investing (The Reality),” by Ramit Sethi, iwillteachyoutoberich.com, Dec. 16, 2022.Couples/Relationships“Love and Money: Combining Finances After Marriage,” by Ramit Sethi, iwillteachyoutoberich.com, Feb. 27, 2023.“I’ve Been Writing About Money for 15 Years, and I Can Tell You Too Many Couples Talk About Money All Wrong,” by Ramit Sethi, businessinsider.com, Feb. 27, 2019.“Episode 65. I Make $200k/Month. He Makes $2k. Who Pays for Dates? (Part 2),” I Will Teach You To Be Rich podcast, iwillteahyoutoberich.com, October 2022.Financial Advice“Do I Need a Financial Advisor? (The ONLY Guide You Need!),” by Ramit Sethi, iwillteachyoutoberich.com, July 7, 2021.(Please stay tuned for important disclosure information at the conclusion of this episode.)

Today we’re welcoming back Ramit Sethi. Ramit is a personal finance expert and author. And this year, he added a new line item to his resume: TV host. His series How to Get Rich debuted on Netflix in April. It features in-depth conversations with individuals about their financial lives. Ramit’s first book, I Will Teach You to Be Rich, published in 2009, was a bestseller; a second edition of the book came out in 2019. Ramit is the founder of <a href="http://iwillteachyoutoberich.com/" rel="nofollow" target="_blank">iwillteachyoutoberich.com</a>, and he’s also the host of a podcast called I Will Teach You To Be Rich, which features in-depth conversations with couples about money.Background<a href="https://www.linkedin.com/in/ramitsethi/" rel="nofollow" target="_blank">Bio</a><a href="https://www.iwillteachyoutoberich.com/books/" rel="nofollow" target="_blank">I Will Teach You To Be Rich</a>, by Ramit Sethi<a href="https://www.iwillteachyoutoberich.com/podcast/" rel="nofollow" target="_blank">I Will Teach You To Be Rich</a> podcast<a href="https://www.iwillteachyoutoberich.com/netflix/" rel="nofollow" target="_blank">How To Get Rich</a>, Netflix seriesTwitter: <a href="https://twitter.com/ramit" rel="nofollow" target="_blank">@ramit</a>“<a href="https://www.morningstar.com/personal-finance/ramit-sethi-what-is-your-rich-life" rel="nofollow" target="_blank">Ramit Sethi: ‘What Is Your Rich Life?’”</a> The Long View podcast, <a href="http://morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, Nov. 10, 2020.“<a href="https://www.morningstar.com/personal-finance/ramit-sethi-how-can-couples-make-peace-over-money" rel="nofollow" target="_blank">Ramit Sethi: How Can Couples Make Peace Over Money?</a>” The Long View podcast, <a href="http://morningstar.com/" rel="nofollow" target="_blank">Morningstar.com</a>, Nov. 30, 2021.Rich Lives“<a href="https://www.iwillteachyoutoberich.com/money-rules/" rel="nofollow" target="_blank">10 Easy-to-Follow Money Rules to Improve Your Financial Health</a>,” by Ramit Sethi, <a href="http://iwillteachyoutoberich.com/" rel="nofollow" target="_blank">iwillteachyoutoberich.com</a>, Nov. 23, 2020.“‘<a href="https://www.cnbc.com/2023/04/14/3-money-rules-to-build-wealth-and-enjoy-life.html" rel="nofollow" target="_blank">I Will Teach You to Be Rich’ Author: 3 Money Rules I Follow to Build Wealth and Enjoy Life—and How to Create Your Own</a>,” by Kamaron McNair, <a href="http://cnbc.om/" rel="nofollow" target="_blank">cnbc.om</a>, April 14, 2023.“<a href="https://www.iwillteachyoutoberich.com/how-to-live-a-rich-life/" rel="nofollow" target="_blank">How to Live a Rich Life (+Rules That Will Help You ACHIEVE It!)</a>,” by Ramit Sethi, <a href="http://iwillteachyoutoberich.com/" rel="nofollow" target="_blank">iwillteachyoutoberich.com</a>, Feb. 27, 2023.“<a href="https://tim.blog/2021/07/26/ramit-sethi-2/" rel="nofollow" target="_blank">Ramit Sethi—How to Play Offense With Money, Plan Bucket Lists, Build a Rich Life With Your Partner, and Take a Powerful $100 Challenge (#524)</a>,” The Tim Ferriss Show podcast, <a href="http://tim.blog.com/" rel="nofollow" target="_blank">tim.blog.com</a>, July 26, 2021.Budgeting and Conscious Spending<a href="https://www.iwillteachyoutoberich.com/c-conscious-spending-plan/" rel="nofollow" target="_blank">Ramit’s Conscious Spending Plan</a>“<a href="https://www.iwillteachyoutoberich.com/conscious-spending-basics/" rel="nofollow" target="_blank">Conscious Spending Plan: How to Budget by Looking Into the Future</a>,” by Ramit Sethi, <a href="http://iwillteachyoutoberich.com/" rel="nofollow" target="_blank">iwillteachyoutoberich.com</a>, Feb. 27, 2023.“<a href="https://www.iwillteachyoutoberich.com/how-to-find-out-all-my-debt/" rel="nofollow" target="_blank">How to Find all my Debts (&amp; Pay Them Off)</a>,” by Ramit Sethi, <a href="http://iwillteachyoutoberich.com/" rel="nofollow" target="_blank">iwillteachyoutoberich.com</a>, Oct. 3, 2022.“<a href="https://www.iwillteachyoutoberich.com/how-to-get-out-of-debt-fast/" rel="nofollow" target="_blank">4 Ways to Get Out of Debt Fast (+Mistakes to Avoid)</a>,” by Ramit Sethi, <a href="http://iwillteachyoutoberich.com/" rel="nofollow" target="_blank">iwillteachyoutoberich.com</a>, Aug. 10, 2021.Jobs and Income“<a href="https://www.iwillteachyoutoberich.com/earning-money-finding-the-right-idea/" rel="nofollow" target="_blank">Finding the Right Money-Making Ideas (That Anyone Can Do)</a>,” by Ramit Sethi, <a href="http://iwillteachyoutoberich.com/" rel="nofollow" target="_blank">iwillteachyoutoberich.com</a>, March 28, 2023.Homeownership“<a href="https://www.businessinsider.com/personal-finance/ramit-sethi-first-time-homebuyer-tips-2022-10" rel="nofollow" target="_blank">3 Practical Things Every First-Time Homebuyer Should Know, According to the Star of Netflix’s ‘How To Get Rich,’”</a> by Lee Aquino, <a href="http://businessinsider.com/" rel="nofollow" target="_blank">businessinsider.com</a>, April 25, 2023.“<a href="https://www.iwillteachyoutoberich.com/buying-a-house-in-recession-advice/" rel="nofollow" target="_blank">Buying a House in Recession: Pros, Cons, and Expert Advice</a>,” by Ramit Sethi, <a href="http://iwillteachyoutoberich.com/" rel="nofollow" target="_blank">iwillteachyoutoberich.com</a>, March 20, 2023.“<a href="https://www.iwillteachyoutoberich.com/should-i-buy-a-house-now/" rel="nofollow" target="_blank">Should I Buy a House Now? (5 Guidelines and Perfect Timing Tips)</a>,” by Ramit Sethi, <a href="http://iwillteachyoutoberich.com/" rel="nofollow" target="_blank">iwillteachyoutoberich.com</a>, Sept. 15, 2021.Investing“<a href="https://www.iwillteachyoutoberich.com/how-to-trade-stocks/" rel="nofollow" target="_blank">How to Trade Stocks (and Find Out if Trading Is Right for You)</a>,” by Ramit Sethi, <a href="http://iwillteachyoutoberich.com/" rel="nofollow" target="_blank">iwillteachyoutoberich.com</a>, Feb. 27, 2023.“<a href="https://www.iwillteachyoutoberich.com/day-trading/" rel="nofollow" target="_blank">Here’s Our Take on Day Trading in 2023</a>,” by Ramit Sethi, <a href="http://iwillteachyoutoberich.com/" rel="nofollow" target="_blank">iwillteachyoutoberich.com</a>, March 3, 2020.“<a href="https://www.iwillteachyoutoberich.com/how-to-invest-in-index-funds/" rel="nofollow" target="_blank">How to Invest in Index Funds (Get Invested in 5 Min)</a>,” by Ramit Sethi, <a href="http://iwillteachyoutoberich.com/" rel="nofollow" target="_blank">iwillteachyoutoberich.com</a>, Feb. 27, 2023.“<a href="https://www.iwillteachyoutoberich.com/diversified-portfolio-examples/" rel="nofollow" target="_blank">Diversified Investment Portfolios: How to Build One (+ Examples)</a>,” by Ramit Sethi, <a href="http://iwillteachyoutoberich.com/" rel="nofollow" target="_blank">iwillteachyoutoberich.com</a>, Oct. 27, 2021.“<a href="https://www.iwillteachyoutoberich.com/high-risk-vs-low-risk-investing/" rel="nofollow" target="_blank">High Risk vs. Low Risk Investing (The Reality)</a>,” by Ramit Sethi, <a href="http://iwillteachyoutoberich.com/" rel="nofollow" target="_blank">iwillteachyoutoberich.com</a>, Dec. 16, 2022.Couples/Relationships“<a href="https://www.iwillteachyoutoberich.com/combining-finances-after-marriage/" rel="nofollow" target="_blank">Love and Money: Combining Finances After Marriage</a>,” by Ramit Sethi, <a href="http://iwillteachyoutoberich.com/" rel="nofollow" target="_blank">iwillteachyoutoberich.com</a>, Feb. 27, 2023.“<a href="https://www.businessinsider.com/talk-about-money-spouse-earning-more-2019-2" rel="nofollow" target="_blank">I’ve Been Writing About Money for 15 Years, and I Can Tell You Too Many Couples Talk About Money All Wrong</a>,” by Ramit Sethi, <a href="http://businessinsider.com/" rel="nofollow" target="_blank">businessinsider.com</a>, Feb. 27, 2019.“<a href="https://www.iwillteachyoutoberich.com/65-part-2/" rel="nofollow" target="_blank">Episode 65. I Make $200k/Month. He Makes $2k. Who Pays for Dates? (Part 2)</a>,” I Will Teach You To Be Rich podcast, <a href="http://iwillteahyoutoberich.com/" rel="nofollow" target="_blank">iwillteahyoutoberich.com</a>, October 2022.Financial Advice“<a href="https://www.iwillteachyoutoberich.com/do-you-need-a-financial-advisor/" rel="nofollow" target="_blank">Do I Need a Financial Advisor? (The ONLY Guide You Need!)</a>,” by Ramit Sethi, <a href="http://iwillteachyoutoberich.com/" rel="nofollow" target="_blank">iwillteachyoutoberich.com</a>, July 7, 2021.(Please stay tuned for important disclosure information at the conclusion of this episode.)

Ramit Sethi: Investing Shouldn’t Be Your Identity

Expand your investing horizons and look to the long term. Join hosts Christine Benz and Jeff Ptak as they talk to influential leaders in investing, advice, and personal finance about a wide-range of topics, such as asset allocation and balancing risk and return.

Very informative plus I liked listening to the personal edge.

Really Enjoyed the Podcast

Really liked the last episode with Gus Sauter and looking forward to the next show.

Good content keeps me coming back for more

The Long View

Jeffrey Brown

Our guest on the podcast today is Dr. Jeffrey Brown, the Josef and Margot Lakonishok Professor and the Dean of the University of Illinois Gies College of Business. A key focus of Dean Brown's research is how to create sustainable retirement income, including the role of annuities, Social Security, 401(k)s, pensions and long-term care planning. He's a research affiliate at the National Bureau of Economic Research, a faculty affiliate of the Institute on Government and Policy Affairs, and a fellow at the TIAA Institute. He also serves as a trustee for TIAA. In addition, he served on the Social Security Advisory Board under President George W. Bush and was also a senior economist at the White House Council of Economic Advisers. He has published extensively on the topic of retirement security and public and private insurance markets, and he has received numerous awards for his research as well. He holds a Ph.D. in economics from MIT, and a master's in public policy from Harvard.BackgroundJeffrey Brown bioJeffrey Brown C.V. Jeffrey Brown publications and working papers  Defined Contribution (DC) PlansDefined contribution plan definition Defined benefit plan definition “A Brief History of the 401(k), Which Changed How Americans Retire,” by Kathleen Elkins, CNBC.com, Jan. 4, 2017.“The Disappearing Defined Benefit Pension and Its Potential Impact on the Retirement Incomes of Baby Boomers,” by Barbara A. Butrica, Howard M. Iams, Karen E. Smith, and Eric J. Toder, Social Security Bulletin, Vol. 69, No. 3, 2009.“What Killed Pensions,” by Mary Beth Franklin, Kiplinger, Oct. 6, 2011.“Public Pensions Are Still Marching to Their Death,” by Jeffrey Dorfman, Forbes.com, Sept. 11, 2014.“House Passes SECURE Act to Ease 401(k) Compliance, Promote Savings,” by Stephen Miller, SHRM.org, May 23, 2019.“How the SECURE Act Would Impact Your 401(k),” by Simon Moore, Forbes.com, June 25, 2019.“Annuities in 401(k)s Won’t Solve the Retirement Crisis. Here’s Why,” by Mary Romano, Barron’s, June 28, 2019.“What Does It Mean to Annuitize?” by Justin Pritchard, Thebalance.com, Jan. 21, 2019.“Crash Course Needed: Four Out of Five Americans Fail When Quizzed on How to Make Their Nest Eggs Last,” by The American College for Financial Planning, Dec. 3, 2014.“401(k) Nudges and Course Corrections,” by Kimberly Blanton, Squared Away blog, Oct. 24, 2017.“Thank Richard Thaler for Your Retirement Savings,” by Ben Steverman, Bloomberg, Oct. 10, 2017.“Plan Quality Varies Significantly by Industry,” by John Manganaro, PlanAdviser, March 20, 2017.“Corporate Profits and 401(k) Plan Performance Go Hand in Hand: T. Rowe Price,” by Michael S. Fischer, ThinkAdvisor, Sept. 17, 2018.“The Conundrum of State-Run Retirement Plans,” by Terry Dunne, InvestmentNews, May 8, 2017.“Reasons to Be Wary of State-Run Retirement Plans,” by Jeffrey Brown, Forbes.com, Feb. 10, 2014.Multiple Employer Plan (MEP) definition“How Hard Should We Push the Poor to Save for Retirement?” by Andrew G. Biggs, The Journal of Retirement, Spring 2019.Thrift Savings Plan  Annuities“Use Annuities to Protect Yourself from Yourself,” by Jeffrey Brown, Forbes.com, May 22, 2014.“Income Annuities Provide Retirees Longevity Protection,” by Wade Pfau, Investment News, Sept. 28, 2019.“Why Don’t People Insure Late-Life Consumption? A Framing Explanation of the Under-Annuitization Puzzle,” by Jeffrey R. Brown, Jeffrey R. Kling, Sendhil Mullainathan, and Marian V. Wrobel, National Bureau of Economic Research, January 2008.Variable annuity definitionEquity-indexed annuity definitionDeferred payment annuity definition“The Main Types of Annuities Made Easy,” by Clair Boyte-White, Investopedia, July 27, 2019.“Annuities and Inflation Risk,” by Robert Bloink and William H. Byrnes, ThinkAdvisor, Sept. 3, 2011.“Lifetime Income for Women: A Financial Economist’s Perspective,” by David F. Babbel, Wharton Financial Institutions Center Policy Brief, Aug. 12, 2008.“Jeff Brown Tackles Tough Annuity Questions,” by Michael Finke, ThinkAdvisor, Sept. 29, 2014.“Annuities and Individual Welfare,” by Thomas Davidoff, Jeffrey Brown, and Peter Diamond, The Center for Retirement Research at Boston College, May 2003.“Behavioral Impediments to Valuing Annuities: Complexity and Choice Bracketing,” by Jeffrey R. Brown, Arie Kapteyn, Erzo F.P. Luttmer, Olivia S. Mitchell, and Anya Samek. National Bureau of Economic Research, Oct. 11, 2019.Intertemporal choice definition  Long-Term Care“Does Medicare Cover Long-Term Care?” Medicare.com"Insuring Long-Term Care in the U.S.," by Jeffrey Brown and Amy Finkelstein, National Bureau of Economic Research, September 2011.“The Interaction of Public and Private Insurance: Medicaid and the Long-Term Care Insurance Market,” by Jeffrey R. Brown and Amy Finkelstein, National Bureau of Economic Research, October 2004.“Can Increasing The Long-Term Care Insurance Elimination Period Make Coverage Appealing Again?” by Michael Kitces, Nerd’s Eye View, Jan. 7, 2015.Long-Term Care Financing Project“Hybrid Long-Term Care Policies,” by Wade Pfau, Forbes.com, Jan. 21, 2016.“Is the LTC Cost Guarantee of Today's Hybrid Life/LTC or Annuity/LTC Insurance Policies Just a Mirage?” by Michael Kitces, Nerd’s Eye View, Oct. 16, 2013.“Life-LTC Hybrid Sales Level Off: LIMRA,” by Allison Bell, ThinkAdvisor, July 22, 2019.  Social SecuritySocial Security Trustees’ Summary Report, 2019.“How Would You Fix Social Security?” The Center for Retirement Research at Boston College.“How the Latest Report on Social Security’s Solvency Changes Your Retirement Plan,” by Bob Carlson, Forbes.com, May 24, 2019.

Our guest on the podcast today is Dr. Jeffrey Brown, the Josef and Margot Lakonishok Professor and the Dean of the University of Illinois Gies College of Business. A key focus of Dean Brown's research is how to create sustainable retirement income, including the role of annuities, Social Security, 401(k)s, pensions and long-term care planning. He's a research affiliate at the National Bureau of Economic Research, a faculty affiliate of the Institute on Government and Policy Affairs, and a fellow at the TIAA Institute. He also serves as a trustee for TIAA. In addition, he served on the Social Security Advisory Board under President George W. Bush and was also a senior economist at the White House Council of Economic Advisers. He has published extensively on the topic of retirement security and public and private insurance markets, and he has received numerous awards for his research as well. He holds a Ph.D. in economics from MIT, and a master's in public policy from Harvard.Background<a href="https://www.business.illinois.edu/jbrown/biography.html" rel="nofollow" target="_blank">Jeffrey Brown bio</a> <a href="https://www.business.illinois.edu/jbrown/Brown-Full-CV.pdf" rel="nofollow" target="_blank">Jeffrey Brown C.V. </a> <a href="https://www.business.illinois.edu/jbrown/publications.html" rel="nofollow" target="_blank">Jeffrey Brown publications and working papers</a> Defined Contribution (DC) Plans<a href="https://www.investopedia.com/terms/d/definedcontributionplan.asp" rel="nofollow" target="_blank">Defined contribution plan definition</a> <a href="https://www.investopedia.com/terms/d/definedbenefitpensionplan.asp" rel="nofollow" target="_blank">Defined benefit plan definition</a> “<a href="https://www.cnbc.com/2017/01/04/a-brief-history-of-the-401k-which-changed-how-americans-retire.html" rel="nofollow" target="_blank">A Brief History of the 401(k), Which Changed How Americans Retire</a>,” by Kathleen Elkins, <a href="http://CNBC.com" rel="nofollow" target="_blank">CNBC.com</a>, Jan. 4, 2017.“<a href="https://www.ssa.gov/policy/docs/ssb/v69n3/v69n3p1.html" rel="nofollow" target="_blank">The Disappearing Defined Benefit Pension and Its Potential Impact on the Retirement Incomes of Baby Boomers</a>,” by Barbara A. Butrica, Howard M. Iams, Karen E. Smith, and Eric J. Toder, Social Security Bulletin, Vol. 69, No. 3, 2009.“<a href="https://www.kiplinger.com/article/retirement/T047-C022-S001-what-killed-pensions.html" rel="nofollow" target="_blank">What Killed Pensions</a>,” by Mary Beth Franklin, Kiplinger, Oct. 6, 2011.“<a href="https://www.forbes.com/sites/jeffreydorfman/2014/09/11/public-pensions-are-still-marching-to-their-death/#4" rel="nofollow" target="_blank">Public Pensions Are Still Marching to Their Death</a>,” by Jeffrey Dorfman, <a href="http://Forbes.com" rel="nofollow" target="_blank">Forbes.com</a>, Sept. 11, 2014.“<a href="https://www.shrm.org/ResourcesAndTools/hr-topics/benefits/Pages/House-passes-SECURE-Act-to-ease-401k-compliance-and-promote-savings.aspx" rel="nofollow" target="_blank">House Passes SECURE Act to Ease 401(k) Compliance, Promote Savings</a>,” by Stephen Miller, <a href="http://SHRM.org" rel="nofollow" target="_blank">SHRM.org</a>, May 23, 2019.“<a href="https://www.forbes.com/sites/simonmoore/2019/06/25/how-the-secure-act-would-impact-your-401k/#5e9c97e11548" rel="nofollow" target="_blank">How the SECURE Act Would Impact Your 401(k)</a>,” by Simon Moore, <a href="http://Forbes.com" rel="nofollow" target="_blank">Forbes.com</a>, June 25, 2019.“<a href="https://www.barrons.com/articles/annuities-401k-retirement-savings-51561692333" rel="nofollow" target="_blank">Annuities in 401(k)s Won’t Solve the Retirement Crisis. Here’s Why</a>,” by Mary Romano, Barron’s, June 28, 2019.“<a href="https://www.thebalance.com/annuitize-what-it-means-to-annuitize-315087" rel="nofollow" target="_blank">What Does It Mean to Annuitize?</a>” by Justin Pritchard, <a href="http://Thebalance.com" rel="nofollow" target="_blank">Thebalance.com</a>, Jan. 21, 2019.“<a href="https://www.theamericancollege.edu/crash-course-needed-four-out-five-americans-fail-when-quizzed-how-make-their-nest-eggs-last" rel="nofollow" target="_blank">Crash Course Needed: Four Out of Five Americans Fail When Quizzed on How to Make Their Nest Eggs Last</a>,” by The American College for Financial Planning, Dec. 3, 2014.“<a href="https://squaredawayblog.bc.edu/squared-away/401k-nudges-and-course-corrections/" rel="nofollow" target="_blank">401(k) Nudges and Course Corrections</a>,” by Kimberly Blanton, Squared Away blog, Oct. 24, 2017.“<a href="https://www.bloomberg.com/news/articles/2017-10-10/thank-richard-thaler-for-your-retirement-savings" rel="nofollow" target="_blank">Thank Richard Thaler for Your Retirement Savings</a>,” by Ben Steverman, Bloomberg, Oct. 10, 2017.“<a href="https://www.planadviser.com/plan-quality-varies-significantly-by-industry/" rel="nofollow" target="_blank">Plan Quality Varies Significantly by Industry</a>,” by John Manganaro, PlanAdviser, March 20, 2017. “<a href="https://www.thinkadvisor.com/2018/09/17/corporate-profits-and-401k-plan-performance-go-han/" rel="nofollow" target="_blank">Corporate Profits and 401(k) Plan Performance Go Hand in Hand: T. Rowe Price</a>,” by Michael S. Fischer, ThinkAdvisor, Sept. 17, 2018.<a href="https://www.investmentnews.com/article/20170508/BLOG09/170509938/the-conundrum-of-state-run-retirement-plans" rel="nofollow" target="_blank">“The Conundrum of State-Run Retirement Plans</a>,” by Terry Dunne, InvestmentNews, May 8, 2017.“<a href="https://www.forbes.com/sites/jeffreybrown/2014/02/10/state-run-retirement-plans/#339a0fd635d7" rel="nofollow" target="_blank">Reasons to Be Wary of State-Run Retirement Plans</a>,” by Jeffrey Brown, <a href="http://Forbes.com" rel="nofollow" target="_blank">Forbes.com</a>, Feb. 10, 2014.<a href="https://www.investopedia.com/multiple-employer-plan-mep-definition-4766937" rel="nofollow" target="_blank">Multiple Employer Plan (MEP) definition</a>“<a href="https://jor.pm-research.com/content/6/4/20" rel="nofollow" target="_blank">How Hard Should We Push the Poor to Save for Retirement?</a>” by Andrew G. Biggs, The Journal of Retirement, Spring 2019.<a href="https://www.tsp.gov/index.html" rel="nofollow" target="_blank">Thrift Savings Plan</a> Annuities“<a href="https://www.forbes.com/sites/jeffreybrown/2014/05/22/use-life-annuities-to-protect-your-future-self/#573d093d3403" rel="nofollow" target="_blank">Use Annuities to Protect Yourself from Yourself</a>,” by Jeffrey Brown, <a href="http://Forbes.com" rel="nofollow" target="_blank">Forbes.com</a>, May 22, 2014.“<a href="https://www.investmentnews.com/article/20190928/FREE/190929941/income-annuities-provide-retirees-longevity-protection" rel="nofollow" target="_blank">Income Annuities Provide Retirees Longevity Protection</a>,” by Wade Pfau, Investment News, Sept. 28, 2019.“<a href="https://www.nber.org/papers/w13748" rel="nofollow" target="_blank">Why Don’t People Insure Late-Life Consumption? A Framing Explanation of the Under-Annuitization Puzzle</a>,” by Jeffrey R. Brown, Jeffrey R. Kling, Sendhil Mullainathan, and Marian V. Wrobel, National Bureau of Economic Research, January 2008.<a href="https://www.investopedia.com/terms/v/variableannuity.asp" rel="nofollow" target="_blank">Variable annuity definition</a><a href="https://www.investopedia.com/terms/v/variableannuity.asp" rel="nofollow" target="_blank">Equity-indexed annuity definition</a><a href="https://www.investopedia.com/terms/d/deferred-payment-annuity.asp" rel="nofollow" target="_blank">Deferred payment annuity definition</a>“<a href="https://www.investopedia.com/ask/answers/093015/what-are-main-kinds-annuities.asp" rel="nofollow" target="_blank">The Main Types of Annuities Made Easy</a>,” by Clair Boyte-White, Investopedia, July 27, 2019.“<a href="https://www.thinkadvisor.com/2011/09/03/annuities-and-inflation-risk/" rel="nofollow" target="_blank">Annuities and Inflation Risk</a>,” by Robert Bloink and William H. Byrnes, ThinkAdvisor, Sept. 3, 2011.“<a href="https://www.annuityadvantage.com/lp/files/Lifetime-Income-for-Women.pdf" rel="nofollow" target="_blank">Lifetime Income for Women: A Financial Economist’s Perspective</a>,” by David F. Babbel, Wharton Financial Institutions Center Policy Brief, Aug. 12, 2008.“<a href="https://www.thinkadvisor.com/2014/09/29/jeff-brown-tackles-tough-annuity-questions/" rel="nofollow" target="_blank">Jeff Brown Tackles Tough Annuity Questions</a>,” by Michael Finke, ThinkAdvisor, Sept. 29, 2014.“<a href="https://crr.bc.edu/wp-content/uploads/2003/05/wp_2003-11.pdf" rel="nofollow" target="_blank">Annuities and Individual Welfare</a>,” by Thomas Davidoff, Jeffrey Brown, and Peter Diamond, The Center for Retirement Research at Boston College, May 2003.“<a href="https://users.nber.org/~luttmer/annuityexperiment.pdf" rel="nofollow" target="_blank">Behavioral Impediments to Valuing Annuities: Complexity and Choice Bracketing</a>,” by Jeffrey R. Brown, Arie Kapteyn, Erzo F.P. Luttmer, Olivia S. Mitchell, and Anya Samek. National Bureau of Economic Research, Oct. 11, 2019.<a href="https://www.investopedia.com/terms/i/intertemporalchoice.asp" rel="nofollow" target="_blank">Intertemporal choice definition</a> Long-Term Care“<a href="https://medicare.com/coverage/medicare-cover-long-term-care/" rel="nofollow" target="_blank">Does Medicare Cover Long-Term Care?</a>” <a href="http://Medicare.com" rel="nofollow" target="_blank">Medicare.com</a>"<a href="https://www.nber.org/papers/w17451.pdf" rel="nofollow" target="_blank">Insuring Long-Term Care in the U.S.</a>," by Jeffrey Brown and Amy Finkelstein, National Bureau of Economic Research, September 2011.“<a href="https://www.nber.org/papers/w10989" rel="nofollow" target="_blank">The Interaction of Public and Private Insurance: Medicaid and the Long-Term Care Insurance Market</a>,” by Jeffrey R. Brown and Amy Finkelstein, National Bureau of Economic Research, October 2004.“<a href="https://www.kitces.com/blog/can-increasing-the-long-term-care-insurance-elimination-period-make-coverage-appealing-again/" rel="nofollow" target="_blank">Can Increasing The Long-Term Care Insurance Elimination Period Make Coverage Appealing Again?</a>” by Michael Kitces, Nerd’s Eye View, Jan. 7, 2015.<a href="https://hpi.georgetown.edu/archive/ltc/papers/#Overview" rel="nofollow" target="_blank">Long-Term Care Financing Project</a>“<a href="https://www.forbes.com/sites/wadepfau/2016/01/21/hybrid-long-term-care-insurance-policies/#2969e7096bea" rel="nofollow" target="_blank">Hybrid Long-Term Care Policies</a>,” by Wade Pfau, <a href="http://Forbes.com" rel="nofollow" target="_blank">Forbes.com</a>, Jan. 21, 2016.“Is the LTC Cost <a href="https://www.kitces.com/blog/is-the-ltc-cost-guarantee-of-todays-hybrid-lifeltc-or-annuityltc-insurance-policies-just-a-mirage/ " rel="nofollow" target="_blank">Guarantee of Today's Hybrid Life/LTC or Annuity/LTC Insurance Policies Just a Mirage?</a>” by Michael Kitces, Nerd’s Eye View, Oct. 16, 2013.“<a href="https://www.thinkadvisor.com/2019/07/22/life-ltc-hybrid-sales-level-off-limra/" rel="nofollow" target="_blank">Life-LTC Hybrid Sales Level Off: LIMRA</a>,” by Allison Bell, ThinkAdvisor, July 22, 2019.  Social Security<a href="https://www.ssa.gov/OACT/TRSUM/index.html" rel="nofollow" target="_blank">Social Security Trustees’ Summary Report</a>, 2019. “<a href="https://www.washingtonpost.com/wp-srv/special/business/get-there/social-security-fix/" rel="nofollow" target="_blank">How Would You Fix Social Security?</a>” The Center for Retirement Research at Boston College.“<a href="https://www.forbes.com/sites/bobcarlson/2019/05/24/how-the-latest-report-on-social-securitys-solvency-changes-your-retirement-plan/#6763fb471233 " rel="nofollow" target="_blank">How the Latest Report on Social Security’s Solvency Changes Your Retirement Plan</a>,” by Bob Carlson, <a href="http://Forbes.com" rel="nofollow" target="_blank">Forbes.com</a>, May 24, 2019.

Jeffrey Brown: Saving for Retirement 'Only Half the Puzzle'

Our guest on the podcast this week is Charles de Vaulx. De Vaulx is chief investment officer and portfolio manager at International Value Advisers, where he is also a partner. With his colleague Chuck de Lardemelle, de Vaulx manages the IVA International and IVA Worldwide strategies. Before joining IVA in 2008, de Vaulx had been the portfolio manager of First Eagle Global, First Eagle Overseas, First Eagle U.S. Value, and First Eagle Variable. For his accomplishments, Morningstar has recognized de Vaulx several times in the past, awarding him and his comanager our International-Stock Manager of the Year Award in 2001 and nominating them for the same award in 2006. De Vaulx began his career at Societe Generale Bank as a credit analyst in 1985. He graduated from the Ecole Superieure de Commerce de Rouen and holds the French equivalent of a master's degree in finance. BackgroundCharles de Vaulx bio Charles de Lardemelle bio IVA Worldwide IVWIX  IVA International IVIOX  ReferencesModern monetary theory (MMT) definition Herfindahl-Hirschman Index (HHI) definition Creative destruction definition A History of Interest Rates, by Sidney Homer and Richard Sylla; 2007 "The Irresistible Charm of the Family Factor," by Credit Suisse, Sept. 27, 2017 Jean-Marie Eveillard bio "The Superinvestors of Graham-and -Doddsville," by Warren Buffett, Columbia Business School, May 17, 1984 Berkshire Hathaway 2013 shareholder letter, Page 20 Edward O. Thorp bio Superforecasting: The Art and Science of Prediction, by Philip E. Tetlock and Dan Gardner, 2016

Our guest on the podcast this week is Charles de Vaulx. De Vaulx is chief investment officer and portfolio manager at International Value Advisers, where he is also a partner. With his colleague Chuck de Lardemelle, de Vaulx manages the IVA International and IVA Worldwide strategies. Before joining IVA in 2008, de Vaulx had been the portfolio manager of First Eagle Global, First Eagle Overseas, First Eagle U.S. Value, and First Eagle Variable. For his accomplishments, Morningstar has recognized de Vaulx several times in the past, awarding him and his comanager our International-Stock Manager of the Year Award in 2001 and nominating them for the same award in 2006. De Vaulx began his career at Societe Generale Bank as a credit analyst in 1985. He graduated from the Ecole Superieure de Commerce de Rouen and holds the French equivalent of a master's degree in finance. Background <a href="https://www.ivafunds.com/about-us/our-team/portfolio-managers" rel="nofollow" target="_blank">Charles de Vaulx bio</a> <a href="https://www.ivafunds.com/about-us/our-team/portfolio-managers#Charles-de-Lardemelle" rel="nofollow" target="_blank">Charles de Lardemelle bio</a> IVA Worldwide IVWIX IVA International IVIOX References <a href="https://www.investopedia.com/modern-monetary-theory-mmt-4588060" rel="nofollow" target="_blank">Modern monetary theory (MMT) definition</a> <a href="https://www.investopedia.com/terms/h/hhi.asp" rel="nofollow" target="_blank">Herfindahl-Hirschman Index (HHI) definition</a> <a href="https://www.investopedia.com/terms/c/creativedestruction.asp" rel="nofollow" target="_blank">Creative destruction definition</a> <a href="https://www.amazon.com/History-Interest-Rates-Wiley-Finance-ebook/dp/B008L03UJE" rel="nofollow" target="_blank">A History of Interest Rates</a>, by Sidney Homer and Richard Sylla; 2007 "<a href="https://www.credit-suisse.com/about-us-news/en/articles/news-and-expertise/the-irresistible-charm-of-the-family-factor-201709.html" rel="nofollow" target="_blank">The Irresistible Charm of the Family Factor</a>," by Credit Suisse, Sept. 27, 2017 <a href="https://www.feim.com/biography/jean-marie-eveillard?attestation=1&amp;country=2505" rel="nofollow" target="_blank">Jean-Marie Eveillard bio</a> "<a href="https://www8.gsb.columbia.edu/articles/columbia-business/superinvestors" rel="nofollow" target="_blank">The Superinvestors of Graham-and -Doddsville</a>," by Warren Buffett, Columbia Business School, May 17, 1984 <a href="https://www.berkshirehathaway.com/letters/2013ltr.pdf" rel="nofollow" target="_blank">Berkshire Hathaway 2013 shareholder letter</a>, Page 20 <a href="https://en.wikipedia.org/wiki/Edward_O._Thorp#Bibliography" rel="nofollow" target="_blank">Edward O. Thorp bio</a> <a href="https://www.amazon.com/Superforecasting-Science-Prediction-Philip-Tetlock/dp/0804136718" rel="nofollow" target="_blank">Superforecasting: The Art and Science of Prediction</a>, by Philip E. Tetlock and Dan Gardner, 2016

Charles de Vaulx: Why Value Investing Has Slumped but Will Rebound

On this week’s episode of The Long View, we’ll recap some of our favorite moments from the podcast so far. Since the podcast’s launch in May 2019, we’ve had the chance to talk to some of the best portfolio managers, retirement researchers, and financial planners and advisors in the business. It’s been a treat to spend an hour each week chatting with them, and we’ve learned a great deal from each of the interviews. Last week’s episode included highlights from our interviews with portfolio managers. This week, we’ll feature some of our favorite clips from interviews with financial planners, advisors, and retirement researchers. William Bernstein: 'If You've Won the Game, Quit Playing'Jonathan Clements: 'It's in Wall Street's Interest to Make Everyday Investors Think That They Are Stupid'Allan Roth: 'I Embrace Dumb Beta'Josh Brown: 'Standardize the Process, Personalize the Advice'Carolyn McClanahan: 'There's More to Money Than Just Numbers'Sheryl Garrett: 'The Industry Thought I Was Nuts'David Blanchett: 'If You're Retiring Now You're in a Pretty Rough Spot'Michael Finke: Here's What Makes Retirees HappyArchive of all Long View episodes so far

On this week’s episode of The Long View, we’ll recap some of our favorite moments from the podcast so far. Since the podcast’s launch in May 2019, we’ve had the chance to talk to some of the best portfolio managers, retirement researchers, and financial planners and advisors in the business. It’s been a treat to spend an hour each week chatting with them, and we’ve learned a great deal from each of the interviews. Last week’s episode included highlights from our interviews with portfolio managers. This week, we’ll feature some of our favorite clips from interviews with financial planners, advisors, and retirement researchers. <a href="https://www.morningstar.com/podcasts/the-long-view/1" rel="nofollow" target="_blank">William Bernstein: 'If You've Won the Game, Quit Playing'</a><a href="https://www.morningstar.com/podcasts/the-long-view/14" rel="nofollow" target="_blank">Jonathan Clements: 'It's in Wall Street's Interest to Make Everyday Investors Think That They Are Stupid'</a><a href="https://www.morningstar.com/podcasts/the-long-view/19" rel="nofollow" target="_blank">Allan Roth: 'I Embrace Dumb Beta'</a><a href="https://www.morningstar.com/podcasts/the-long-view/9" rel="nofollow" target="_blank">Josh Brown: 'Standardize the Process, Personalize the Advice'</a><a href="https://www.morningstar.com/podcasts/the-long-view/5" rel="nofollow" target="_blank">Carolyn McClanahan: 'There's More to Money Than Just Numbers'</a><a href="https://www.morningstar.com/podcasts/the-long-view/12" rel="nofollow" target="_blank">Sheryl Garrett: 'The Industry Thought I Was Nuts'</a><a href="https://www.morningstar.com/podcasts/the-long-view/21" rel="nofollow" target="_blank">David Blanchett: 'If You're Retiring Now You're in a Pretty Rough Spot'</a><a href="https://www.morningstar.com/podcasts/the-long-view/23" rel="nofollow" target="_blank">Michael Finke: Here's What Makes Retirees Happy</a><a href="https://www.morningstar.com/podcasts/the-long-view" rel="nofollow" target="_blank">Archive of all Long View episodes so far</a>

The Best of The Long View Podcast: Conversations with Financial Advisors and Retirement Researchers

Michael Kitces

Our guest on this week's podcast is Michael Kitces. Michael is a partner and the director of wealth management for Pinnacle Advisory Group, a Columbia, Maryland-based wealth management firm that advises on about $1.8 billion of assets. In addition, he is a co-founder of the XY Planning Network. As the host of the Financial Advisor Success podcast and the publisher of the popular financial planning industry blog Nerd's Eye View, Michael has established himself as one of the most prolific and insightful commentators on the financial advice business. A fixture on the speaking circuit and in the media, Michael often addresses key trends and innovations in the way advisors serve their clients; our interview with him focused on the future of the financial advice business.  Show Notes and References Background and Professional Development Michael’s formative years: “The only thing I really think I figured out by the end of college was … that I didn’t want to do psychology, theater, or medicine” (0:59-2:51)   Michael’s bio Pinnacle Advisory Group XY Planning Network  Financial Advisor Success podcast  Nerd’s Eye View blog  Dad’s old life insurance policy: How a wedding gift led Michael down a path to a career in the financial services industry (2:52-4:21)   Michael’s background and entry-path into finance   “He was just a really different guy than everybody else”: Michael’s recounts his breakthrough realization that he wanted to be a financial planner (4:22-6:07) ·   Certified financial planner designation   How Michael used his pre-med training to overcome a crisis of confidence that he didn’t know what he was doing: “I probably shouldn’t be giving them advice; I’m going to hurt someone” (6:08-7:31)   Hippocratic oath   Going deep to differentiate: “I’m going to get really good at these annuity benefit riders” (7:32-8:45)  Leveraging a Mini-Specialization to Gain Experience and Get More Client Referrals” by Michael Kitces (Aug. 16, 2018; Nerd’s Eye View blog)  Variable universal life insurance—a short explainer The Advisor’s Guide to Annuities (5th Edition) by Michael E. Kitces and John L. Olsen  Behavioral Finance in Practice Where behavioral finance falls short: Practicality (8:46-11:40)    Recency bias: A brief explainer   Persuasion: Using psychology and coaching to help clients overcome their biases (11:41-13:01)  “Why Evolutionary Psychology May Be Better Than Behavioral Finance Research to Understand Financial Behaviors” by Dr. Derek Tharp, lead researcher for Kitces.com (Jan. 16, 2019; Nerd’s Eye View blog)  Influence: Science and Practice (5th Edition) by Robert Cialdini   Advice that Sticks by Dr. Moira Somers   “Most of us just don’t want to say that about ourselves”: Clients don’t hire us to save them from themselves, but to get on a better path and save time (13:02-16:37)  “Do Clients Really Value Getting Help Managing Their Behavior Gap?”; transcript of episode 5 of “Kitces and Carl” video series   “Zoom the camera out a little bit”: The key to helping clients through difficult times is being available, clearly communicating, and setting context (16:38-18:18) “There’s very little research at all about what you’re actually supposed to do about this stuff” (18:19-19:56) Financial Advice: Evolution and Great Leaps “Disturbingly like clockwork”: Technology’s role in propelling financial-advice from stock-brokering to the mutual-fund era to asset-allocation models (19:57-22:14)  “How May Day Remade Wall Street” by Jason Zweig (May 1, 2015; Wall Street Journal; Total Return Blog)  “So Easy a Baby Could Do It” E-trade commercial   Computers disrupted the stock-broker model and the internet disrupted the mutual-fund model. Michael on why he thinks software will disrupt the fee-based asset-allocation model (22:15-24:06) An S&amp;P 500 index fund just for you: “Technology is going to allow us to completely disintermediate not just mutual funds but most of the ETF complex as well” (24:07-25:36)  “Indexing 2.0: How Declining Transaction Costs and Robo-Indexing Could Disintermediate Index Mutual Funds and ETFs” by Michael Kitces (May 28, 2014; Nerd’s Eye View blog)  “Global Fund Flows Report” by Morningstar   The Future of Advice “If we can do that with medicine and we can do this with clothing, we can do this with at least large portion of financial advice as well”: Michael on delivering advice virtually (25:37-30:25)  “How Video Conferencing Can Put the Face-to-Face (Back) into Distance Financial Planning Client Relationships” by Michael Kitces (July 27, 2015; Nerd’s Eye View blog)  “(Saying) ‘Oh no one’s ever going to want to work with an advisor virtually; it’s all in person’ … is like clothing stores insisting that Amazon was no threat to them 20 years ago” (30:26-32:56)  “The Future of Financial Planning in the Digital Age,” a presentation by Michael Kitces to FPA Georgia (May 24, 2017)  “Is Digital Search About to Replace Referrals for Finding a Good Financial Advisor” by Michael Kitces (June 3, 2013; Nerd’s Eye View blog)   Technology leaps like robo-advice are less of a threat to the financial advisor than to the the back- and middle-office that supports them (32:57-33:54)  “The Advisory Firm Jobs That Robots Really Do Threaten” by Michael Kitces (May 10, 2018; Nerd’s Eye View blog)   The great inversion: In the future, advisors will charge for financial-planning services and give away investment management for free (vs. today where the opposite often holds true) (33:55-35:36)  “Pricing Models for Financial Adviosrs and the Power of 'Free' Financial Planning” by Michael Kitces (Aug. 10, 2015; Nerd’s Eye View blog)   Best Practices for Delivering and Paying for Advice “We still have a huge industry gap”: Not even 30% of financial advisors have achieved a baseline financial-planning designation—the CFP mark (35:37-39:20)  “3 Reasons Why the Financial Advisor Market Size Isn’t Actually Shrinking” by Michael Kitces (Nov. 15, 2018; Nerd’s Eye View blog)  “The Long Tail, the Big Head, and the Dangerous Middle of Financial Advisory Firms” by Michael Kitces (Aug. 27, 2018; Nerd’s Eye View blog)  FINRA Series 6 exam  FINRA Series 63 exam  FINRA Series 7 exam FINRA Series 65 exam   A question of when, not if, more exacting financial-advice standards will arrive: “The U.S. has become a laggard on fiduciary and competency standards” (39:21-43:21)  Australia’s Financial Adviser Standards and Ethics Authority (FASEA)  The Fiduciary Standard  “Is Financial Planning an Industry or a Profession?” by Michael Kitces (Dec. 15, 2016; Nerd’s Eye View blog)   We can’t do financial advice for young people? Michael on why that’s ridiculous and how flat-fee or subscription-based advice will come to fill that void (43:22-46:51)  “How the Financial Planning Process Differs for Young Clients: Not Simpler, but Different Complexities” by Michael Kitces (Apr. 17, 2019; Nerd’s Eye View blog)  “Introducing AdvicePay and the Automation of Billing Financial Planning Fees (without Custody)” by Michael Kitces (Jan. 22, 2018; Nerd’s Eye View blog)  “The New 1% Advisory Fee: 1% of Income, Instead of 1% of Assets” by Michael Kitces (Feb. 11, 2019; Nerd’s Eye View blog)   “I don’t … see anything wrong with the AUM model”: Why charging a percentage of assets-under-advisement makes sense for some clients, but will become less common in the future (46:52-48:56)  “How to Profitably Price Fee-for-Service Financial Planning” by Alan Moore, co-founder XY Planning Network (May 21, 2018; Nerd’s Eye View blog)   When it does and doesn’t makes sense to pay for financial advice by the hour (48:57:51:47)  “The Opportunities in Providing Hourly As-Needed Financial Advice for the Middle Market with Sheryl Garrett” by Michael Kitces (Jan. 23, 2018; Financial Advisor Success podcast)   About the Podcast: The Long View  is a podcast from Morningstar. Each week, hosts Christine Benz and Jeff Ptak conduct an in-depth discussion with a thought leader from the world of investing or personal finance. The podcast is produced by George Castady and Scott Halver. About the Hosts: Christine Benz and Jeff Ptak have been analysts and commentators on investments and the investment industry for many years. Christine is Morningstar's director of personal finance and senior columnist for Morningstar.com. Jeff is head of global manager research in Morningstar Research Services, overseeing Morningstar's team of 120 manager research analysts in the U.S. and overseas.  To Share Feedback or a Guest Idea: Write us at TheLongView@morningstar.com

Our guest on this week's podcast is Michael Kitces. Michael is a partner and the director of wealth management for Pinnacle Advisory Group, a Columbia, Maryland-based wealth management firm that advises on about $1.8 billion of assets. In addition, he is a co-founder of the XY Planning Network. As the host of the <a href="https://www.kitces.com/blog/category/21-financial-advisor-success-podcast/" rel="nofollow" target="_blank">Financial Advisor Success podcast</a> and the publisher of the popular financial planning industry blog <a href="https://www.kitces.com/" rel="nofollow" target="_blank">Nerd's Eye View</a>, Michael has established himself as one of the most prolific and insightful commentators on the financial advice business. A fixture on the speaking circuit and in the media, Michael often addresses key trends and innovations in the way advisors serve their clients; our interview with him focused on the future of the financial advice business.  Show Notes and References Background and Professional Development Michael’s formative years: “The only thing I really think I figured out by the end of college was … that I didn’t want to do psychology, theater, or medicine” (0:59-2:51)  <ul> <li><a href="https://www.pinnacleadvisory.com/team/mkitces/?nabe=6040736886947840:1 " rel="nofollow" target="_blank">Michael’s bio</a></li> <li><a href="https://www.pinnacleadvisory.com/" rel="nofollow" target="_blank">Pinnacle Advisory Group</a></li> <li><a href="https://www.xyplanningnetwork.com/" rel="nofollow" target="_blank">XY Planning Network </a></li> <li><a href="https://www.kitces.com/blog/category/21-financial-advisor-success-podcast/" rel="nofollow" target="_blank">Financial Advisor Success podcast </a></li> <li><a href="https://www.kitces.com/blog/category/17-nerds-eye-view/" rel="nofollow" target="_blank">Nerd’s Eye View blo</a><a href="https://www.kitces.com/blog/category/17-nerds-eye-view/" rel="nofollow" target="_blank">g</a></li> </ul> Dad’s old life insurance policy: How a wedding gift led Michael down a path to a career in the financial services industry (2:52-4:21)  <ul> <li><a href="https://www.kitces.com/about-michael/" rel="nofollow" target="_blank">Michael’s background and entry-path into finance</a> </li> </ul> “He was just a really different guy than everybody else”: Michael’s recounts his breakthrough realization that he wanted to be a financial planner (4:22-6:07) ·  <ul> <li><a href="https://www.cfp.net/become-a-cfp-professional/cfp-certification-requirements" rel="nofollow" target="_blank">Certified financial planner designation</a> </li> </ul> How Michael used his pre-med training to overcome a crisis of confidence that he didn’t know what he was doing: “I probably shouldn’t be giving them advice; I’m going to hurt someone” (6:08-7:31)  <ul> <li><a href="https://en.wikipedia.org/wiki/Hippocratic_Oath" rel="nofollow" target="_blank">Hippocratic oath</a> </li> </ul> Going deep to differentiate: “I’m going to get really good at these annuity benefit riders” (7:32-8:45) <ul> <li><a href="https://www.kitces.com/blog/mini-specialization-more-referrals-leverage-expertise-narrowcasting/" rel="nofollow" target="_blank">Leveraging a Mini-Specialization to Gain Experience and Get More Client Referrals</a>” by Michael Kitces (Aug. 16, 2018; Nerd’s Eye View blog) </li> <li><a href="https://www.investopedia.com/terms/v/variableuniversallife.asp" rel="nofollow" target="_blank">Variable universal life insurance—a short explainer</a></li> <li><a href="https://www.amazon.com/Advisors-Guide-Annuities-5th/dp/1945424532/ref=pd_cp_14_1?pd_rd_w=zM5Fw&amp;pf_rd_p=ef4dc990-a9ca-4945-ae0b-f8d549198ed6&amp;pf_rd_r=WC3KE72M3N6X481PMVDG&amp;pd_rd_r=08e7e67e-8603-11e9-a9ce-814cf5dd9e62&amp;pd_rd_wg=IIVhr&amp;pd_rd_i=1945424532&amp;psc=1&amp;refRID=WC3KE72M3N6X481PMVDG" rel="nofollow" target="_blank">The Advisor’s Guide to Annuities (5th Edition</a><a href="https://www.amazon.com/Advisors-Guide-Annuities-5th/dp/1945424532/ref=pd_cp_14_1?pd_rd_w=zM5Fw&amp;pf_rd_p=ef4dc990-a9ca-4945-ae0b-f8d549198ed6&amp;pf_rd_r=WC3KE72M3N6X481PMVDG&amp;pd_rd_r=08e7e67e-8603-11e9-a9ce-814cf5dd9e62&amp;pd_rd_wg=IIVhr&amp;pd_rd_i=1945424532&amp;psc=1&amp;refRID=WC3KE72M3N6X481PMVDG" rel="nofollow" target="_blank">)</a> by Michael E. Kitces and John L. Olsen </li> Behavioral Finance in Practice Where behavioral finance falls short: Practicality (8:46-11:40)  </ul> <ul> <li><a href="https://en.wikipedia.org/wiki/Recency_illusion · Familiarity bias: A brief explainer https://en.wikipedia.org/wiki/Familiarity_heuristic" rel="nofollow" target="_blank">Recency bias: A brief explainer</a> </li> </ul> Persuasion: Using psychology and coaching to help clients overcome their biases (11:41-13:01) <ul> <li>“<a href="https://www.kitces.com/blog/evolutionary-psychology-behavioral-finance-research-theoretical-framework-friedman-leeson/" rel="nofollow" target="_blank">Why Evolutionary Psychology May Be Better Than Behavioral Finance Research to Understand Financial Behaviors</a>” by Dr. Derek Tharp, lead researcher for <a href="http://Kitces.com" rel="nofollow" target="_blank">Kitces.com</a> (Jan. 16, 2019; Nerd’s Eye View blog) </li> <li><a href="https://www.amazon.com/Influence-Practice-Robert-B-Cialdini/dp/0205609996" rel="nofollow" target="_blank">Influence: Science and Practice (5th Edition)</a> by Robert Cialdini  </li> <li><a href="https://www.amazon.com/Advice-That-Sticks-financial-advice/dp/1788600142" rel="nofollow" target="_blank">Advice that Sticks</a> by Dr. Moira Somers </li> </ul> “Most of us just don’t want to say that about ourselves”: Clients don’t hire us to save them from themselves, but to get on a better path and save time (13:02-16:37) <ul> <li>“<a href="https://www.kitces.com/blog/kitces-carl-richards-behavior-gap-morningstar-advisor-value-investor-emotions/" rel="nofollow" target="_blank">Do Clients Really Value Getting Help Managing Their Behavior Gap</a>?”; transcript of episode 5 of “Kitces and Carl” video series </li> </ul> “Zoom the camera out a little bit”: The key to helping clients through difficult times is being available, clearly communicating, and setting context (16:38-18:18) “There’s very little research at all about what you’re actually supposed to do about this stuff” (18:19-19:56) Financial Advice: Evolution and Great Leaps “Disturbingly like clockwork”: Technology’s role in propelling financial-advice from stock-brokering to the mutual-fund era to asset-allocation models (19:57-22:14) <ul> <li>“<a href="http://jasonzweig.com/how-may-day-remade-wall-street/ · Charles Schwab: Company history https://www.aboutschwab.com/history" rel="nofollow" target="_blank">How May Day Remade Wall Street</a>” by Jason Zweig (May 1, 2015; Wall Street Journal; Total Return Blog) </li> <li>“<a href="https://www.youtube.com/watch?v=X4GZfvXx9Js" rel="nofollow" target="_blank">So Easy a Baby Could Do It</a>” E-trade commercial </li> </ul> Computers disrupted the stock-broker model and the internet disrupted the mutual-fund model. Michael on why he thinks software will disrupt the fee-based asset-allocation model (22:15-24:06) An S&amp;P 500 index fund just for you: “Technology is going to allow us to completely disintermediate not just mutual funds but most of the ETF complex as well” (24:07-25:36) <ul> <li>“<a href="https://www.kitces.com/blog/indexing-2-0-how-declining-transaction-costs-and-robo-indexing-could-disintermediate-index-mutual-funds-and-etfs/ " rel="nofollow" target="_blank">Indexing 2.0: How Declining Transaction Costs and Robo-Indexing Could Disintermediate Index Mutual Funds and ETFs</a>” by Michael Kitces (May 28, 2014; Nerd’s Eye View blog) </li> <li>“<a href="https://www.morningstar.com/lp/global-asset-flows-report" rel="nofollow" target="_blank">Global Fund Flows Report</a>” by Morningstar </li> </ul> The Future of Advice “If we can do that with medicine and we can do this with clothing, we can do this with at least large portion of financial advice as well”: Michael on delivering advice virtually (25:37-30:25) <ul> <li>“<a href="https://www.kitces.com/blog/financial-planning-profession-requirements-vs-financial-services-industry/" rel="nofollow" target="_blank">How Video Conferencing Can Put the Face-to-Face (Back) into Distance Financial Planning Client Relationships</a>” by Michael Kitces (July 27, 2015; Nerd’s Eye View blog)</li> </ul> “(Saying) ‘Oh no one’s ever going to want to work with an advisor virtually; it’s all in person’ … is like clothing stores insisting that Amazon was no threat to them 20 years ago” (30:26-32:56) <ul> <li>“<a href="https://fpaga.org/images/meeting/052417/2017_Regional_Presentations/future_of_financial_planning_in_the_digital_age_fpa_georgia_may_24_2017_handouts.pdf" rel="nofollow" target="_blank">The Future of Financial Planning in the Digital Age</a>,” a presentation by Michael Kitces to FPA Georgia (May 24, 2017) </li> <li>“<a href="https://www.kitces.com/blog/is-digital-search-about-to-replace-referrals-for-finding-a-good-financial-advisor/" rel="nofollow" target="_blank">Is Digital Search About to Replace Referrals for Finding a Good Financial Advisor</a>” by Michael Kitces (June 3, 2013; Nerd’s Eye View blog) </li> </ul> Technology leaps like robo-advice are less of a threat to the financial advisor than to the the back- and middle-office that supports them (32:57-33:54) <ul> <li>“<a href="https://www.kitces.com/blog/back-office-jobs-threatened-by-robo-advisors-not-front-office-financial-advisors/" rel="nofollow" target="_blank">The Advisory Firm Jobs That Robots Really Do Threaten</a>” by Michael Kitces (May 10, 2018; Nerd’s Eye View blog) </li> </ul> The great inversion: In the future, advisors will charge for financial-planning services and give away investment management for free (vs. today where the opposite often holds true) (33:55-35:36) <ul> <li>“<a href="https://www.kitces.com/blog/business-and-pricing-models-for-financial-advisors-and-the-power-of-free-financial-planning/" rel="nofollow" target="_blank">Pricing Models for Financial Adviosrs and the Power of 'Free' Financial Planning</a>” by Michael Kitces (Aug. 10, 2015; Nerd’s Eye View blog) </li> </ul> Best Practices for Delivering and Paying for Advice “We still have a huge industry gap”: Not even 30% of financial advisors have achieved a baseline financial-planning designation—the CFP mark (35:37-39:20) <ul> <li>“<a href="https://www.kitces.com/blog/financial-advisor-headcount-total-addressable-market-tam-technology-hiring-growth/ · CFP Professional Demographics https://www.cfp.net/news-events/research-facts-figures/cfp-professional-demographics" rel="nofollow" target="_blank">3 Reasons Why the Financial Advisor Market Size Isn’t Actually Shrinking</a>” by Michael Kitces (Nov. 15, 2018; Nerd’s Eye View blog) </li> <li>“<a href="https://www.kitces.com/blog/dangerous-middle-long-tail-big-head-financial-advisory-firms/ " rel="nofollow" target="_blank">The Long Tail, the Big Head, and the Dangerous Middle of Financial Advisory Firms</a>” by Michael Kitces (Aug. 27, 2018; Nerd’s Eye View blog) </li> <li><a href="https://www.finra.org/industry/series6 " rel="nofollow" target="_blank">FINRA Series 6 exam</a> </li> <li><a href="https://www.finra.org/industry/series63" rel="nofollow" target="_blank">FINRA Series 63 exam</a> </li> <li><a href="https://www.finra.org/industry/series7" rel="nofollow" target="_blank">FINRA Series 7 exam</a></li> <li><a href="https://www.finra.org/industry/series65" rel="nofollow" target="_blank">FINRA Series 65 exam</a> </li> </ul> A question of when, not if, more exacting financial-advice standards will arrive: “The U.S. has become a laggard on fiduciary and competency standards” (39:21-43:21) <ul> <li><a href="https://www.fasea.gov.au/standards/" rel="nofollow" target="_blank">Australia’s Financial Adviser Standards and Ethics Authority (FASEA)</a> </li> <li><a href="https://www.cfp.net/public-policy/public-policy-issues/fiduciary-standard" rel="nofollow" target="_blank">The Fiduciary Standard</a> </li> <li>“<a href="https://www.kitces.com/blog/financial-planning-profession-requirements-vs-financial-services-industry/" rel="nofollow" target="_blank">Is Financial Planning an Industry or a Profession?</a>” by Michael Kitces (Dec. 15, 2016; Nerd’s Eye View blog) </li> </ul> We can’t do financial advice for young people? Michael on why that’s ridiculous and how flat-fee or subscription-based advice will come to fill that void (43:22-46:51) <ul> <li>“<a href="https://www.kitces.com/blog/next-generation-client-financial-planning-different-complex-not-simpler/" rel="nofollow" target="_blank">How the Financial Planning Process Differs for Young Clients: Not Simpler, but Different Complexities</a>” by Michael Kitces (Apr. 17, 2019; Nerd’s Eye View blog) </li> <li>“<a href="https://www.kitces.com/blog/advicepay-review-sec-custody-compliant-fee-for-service-financial-planning-payment-processor/" rel="nofollow" target="_blank">Introducing AdvicePay and the Automation of Billing Financial Planning Fees (without Custody)</a>” by Michael Kitces (Jan. 22, 2018; Nerd’s Eye View blog) </li> <li>“<a href="https://www.kitces.com/blog/the-new-1-advisory-fee-1-of-income-instead-of-1-of-assets/" rel="nofollow" target="_blank">The New 1% Advisory Fee: 1% of Income, Instead of 1% of Assets</a>” by Michael Kitces (Feb. 11, 2019; Nerd’s Eye View blog) </li> </ul> “I don’t … see anything wrong with the AUM model”: Why charging a percentage of assets-under-advisement makes sense for some clients, but will become less common in the future (46:52-48:56) <ul> <li>“<a href="https://www.kitces.com/blog/pricing-cost-fee-for-service-financial-planning/" rel="nofollow" target="_blank">How to Profitably Price Fee-for-Service Financial Planning</a>” by Alan Moore, co-founder XY Planning Network (May 21, 2018; Nerd’s Eye View blog) </li> </ul> When it does and doesn’t makes sense to pay for financial advice by the hour (48:57:51:47) <ul> <li>“<a href="https://www.kitces.com/blog/sheryl-garrett-planning-network-podcast-hourly-fee-only-financial-planning-middle-market/" rel="nofollow" target="_blank">The Opportunities in Providing Hourly As-Needed Financial Advice for the Middle Market with Sheryl Garrett</a>” by Michael Kitces (Jan. 23, 2018; Financial Advisor Success podcast) </li> </ul> About the Podcast: The Long View is a podcast from Morningstar. Each week, hosts Christine Benz and Jeff Ptak conduct an in-depth discussion with a thought leader from the world of investing or personal finance. The podcast is produced by George Castady and Scott Halver. About the Hosts: Christine Benz and Jeff Ptak have been analysts and commentators on investments and the investment industry for many years. Christine is Morningstar's director of personal finance and senior columnist for <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a>. Jeff is head of global manager research in Morningstar Research Services, overseeing Morningstar's team of 120 manager research analysts in the U.S. and overseas. To Share Feedback or a Guest Idea: Write us at <a href="mailto:thelongview@morningstar.com?subject=Feedback - The Long View Podcast">TheLongView@morningstar.com</a>

Michael Kitces: The Model Has to Change Again

On this week’s episode of The Long View, we recap some of our favorite moments from the podcast so far.Since the podcast’s launch in May 2019, we’ve had the chance to talk to some of the best portfolio managers, retirement researchers, and financial planners and advisors in the business. It’s been a treat to spend an hour each week chatting with them, and we’ve learned a great deal from each of the interviews.  This week’s episode includes highlights from our interviews with portfolio managers and investment strategists. Next week, we’ll feature some of our favorite clips from interviews with financial planners, advisors, and retirement researchers.Bill Nygren: 'A Stock That Doesn't Look Cheap on the Surface Might Be One of the Cheapest' Rob Arnott: Don't Sleep on Value Investing (Especially Emerging-Markets Value) Rupal Bhansali: FAANG Stocks Are 'Extremely Risky' Dan Ivascyn: Building a Portfolio to Bend but Not Break Ben Johnson: Index Funds Are Not 'Zombie Investors' Dana Emery: You're Not Getting a Valuation Discount for Free Dennis Lynch: 'Have a Growth Mindset and Be Willing to Learn New Things' Charles de Vaulx: Why Value Investing Has Slumped but Will Rebound

On this week’s episode of The Long View, we recap some of our favorite moments from the podcast so far.Since the podcast’s launch in May 2019, we’ve had the chance to talk to some of the best portfolio managers, retirement researchers, and financial planners and advisors in the business. It’s been a treat to spend an hour each week chatting with them, and we’ve learned a great deal from each of the interviews.  This week’s episode includes highlights from our interviews with portfolio managers and investment strategists. Next week, we’ll feature some of our favorite clips from interviews with financial planners, advisors, and retirement researchers.<a href="https://www.morningstar.com/podcasts/the-long-view/11&gt; James Montier: 'How Do I Get Paid for Owning This Asset?'&lt;/a&gt;&lt;/p&gt;&lt;/p&gt;&lt;p&gt;&lt;p&gt;&lt;a href=" rel="nofollow" target="_blank"></a><a href="https://www.morningstar.com/podcasts/the-long-view/11&gt; James Montier: 'How Do I Get Paid for Owning This Asset?'&lt;/a&gt;&lt;/p&gt;&lt;/p&gt;&lt;p&gt;&lt;p&gt;&lt;a href=" rel="nofollow" target="_blank">Bill Nygren: 'A Stock That Doesn't Look Cheap on the Surface Might Be One of the Cheapest'</a><a href="https://www.morningstar.com/podcasts/the-long-view/17" rel="nofollow" target="_blank"> Rob Arnott: Don't Sleep on Value Investing (Especially Emerging-Markets Value)</a><a href="https://www.morningstar.com/podcasts/the-long-view/18" rel="nofollow" target="_blank"> Rupal Bhansali: FAANG Stocks Are 'Extremely Risky'</a><a href="https://www.morningstar.com/podcasts/the-long-view/20" rel="nofollow" target="_blank"> Dan Ivascyn: Building a Portfolio to Bend but Not Break</a><a href="https://www.morningstar.com/podcasts/the-long-view/25" rel="nofollow" target="_blank"> Ben Johnson: Index Funds Are Not 'Zombie Investors'</a><a href="https://www.morningstar.com/podcasts/the-long-view/26" rel="nofollow" target="_blank"> Dana Emery: You're Not Getting a Valuation Discount for Free</a><a href="https://www.morningstar.com/podcasts/the-long-view/28" rel="nofollow" target="_blank"> Dennis Lynch: 'Have a Growth Mindset and Be Willing to Learn New Things'</a><a href="https://www.morningstar.com/podcasts/the-long-view/30" rel="nofollow" target="_blank"> Charles de Vaulx: Why Value Investing Has Slumped but Will Rebound</a>

The Best of The Long View Podcast: Conversations with Portfolio Managers

Maria Bruno

Our guests for the latest installment of "The Long View," Maria Bruno and Joel Dickson, are both veterans of investment behemoth Vanguard.  Bruno is the head of U.S. wealth planning research at Vanguard, leading a team responsible for conducting research and analysis on a wide range of retirement, wealth planning, and portfolio construction topics. She also contributes to the oversight of the investment philosophy, methodology, and wealth management strategies supporting Vanguard's advisory products and services. Bruno is a Certified Financial Planner, and she's a fount of wisdom on many subjects, but especially retirement planning.  Dickson has worn many hats at Vanguard during his long career there. In his current position as Vanguard's global head of advice methodology, he oversees all investment methodology development for Vanguard's advice programs whose end consumers are individual investors.  The transcript for this podcast can be found here. Background Information  Maria Bruno bio Joel Dickson bio  "The Planner and the Geek" podcast series Vanguard Research and Commentary Archive  How Retirement Savers Can Play Catch-Up "It's the 'how much?' But then also how do you actually direct those savings?" (1:30-2:56) "It's such an idiosyncratic or individual sort of consideration from a planning standpoint; there are plenty of people that have little wealth but high income." Whether traditional tax-deferred accounts are automatically better than Roth for people playing catch-up on retirement savings. (2:57-5:53)  "It's a little bit simpler when you're younger and accumulating." How basic savings and investing habits, combined with plan defaults, make the accumulation period much simpler than decumulation. (5:54-8:24) 'Off-Label Uses': Ways Supersavers Can Maximize Their Investments Aftertax  401(k): What it is and how heavy savers can take advantage of it. (10:41-12:55)  After-Tax 401(k), Bogleheads Wiki entry "Should You Make Aftertax Contributions to Your 401(k)?" Morningstar.com article "Aftertax 401(k) vs. Taxable Account? Evaluating Options for High-Income Savers," Morningstar.com article "Heavy Savers, Meet the Mega-Backdoor Roth," Morningstar.com article  Backdoor Roth IRA: How it works, who should consider, and potential pitfalls to be aware of. (12:56-16:34)  "IRA Insights: The Benefits of a Backdoor Roth," Vanguard research "Backdoor IRAs: What You Need to Know," Morningstar.com article  "There's  more and more focus on minimizing income taxes during one's life than there is about avoiding estate taxes." Using a 529 as an additional tax-advantaged savings vehicle. (16:35-21:26)  Navigating College Savings episode from The Planner and The Geek podcast  Decumulation  "How do I meet my goals today but then also make sure that I'm protecting myself down the road?" Why setting spending rates can be so tricky. (21:27-24:26)  "Determining Withdrawal Rates Using Historical Data," research paper by William Bengen  William Bengen bio "How to Put a Dynamic Retirement Spending Strategy in Place," Vanguard research "Spending Trends Boost Safe Withdrawal Rate for Retirees," Morningstar.com video "The 4 Percent Rule Is Not Safe in a Low-Yield World," research paper by Michael Finke, David Blanchett, and Wade Pfau   "We're telling people to, on average, oversave and underspend." Balancing longevity, sequence risk with spending and quality of life. (24:27-28:35)  "Is There an Upside to Sequence of Return Risk?" Morningstar.com video  Exploring the Retirement Consumption Puzzle, research paper by David Blanchett   "At the end of the day you still kind of get to the same end result." How bucket portfolios may not look very different from traditionally allocated retirement portfolios. (28:36-31:30)  "The Bucket Approach to Retirement Portfolio Allocation," Morningstar.com article       "Retirees could be overexposed to equity risk." Whether retirees aren't derisking their portfolios. (31:31-32:41)  "Best Practices for Portfolio Rebalancing," Vanguard research paper      "Generations: Key Drivers of Investor Behavior," Vanguard research paper  "The rules of thumb just don't work as well." Why managing taxes during retirement is necessarily an individualized process. (32:42-36:24)  "Spending from a Portfolio: Implications of Withdrawal Order for Taxable Investors," Vanguard research paper  "Here you're actually looking at strategies that could accelerate income taxes." How the post-retirement/pre-RMD years are a prime time to control future tax bills. (36:25-39:41) • "An IRA Conversion Sweet Spot," Morningstar.com video  • "Age Is Just a Number: Start Thinking About RMDs Now," Vanguard blog post • "Strategies for Annual Roth Conversions," Vanguard research • "But What If I Don't Want My RMD?," Vanguard research • "What to Do With RMDs You Don't Need," Morningstar.com article  Building Portfolios "You have human capital risk at the same time you have investment risk." How investors should think holistically about risk when building their portfolios. (39:42-44:37)  "Vanguard ETF Strategic Model Portfolios," Vanguard research paper "Global Equity Investing: The Benefits of Diversification and Sizing Your Allocation," Vanguard research paper       "Focus on the things that you can control." What to do if investment returns are muted in the future. (44:38-46:23)  "What Fed Projections May Mean for Longer-Term Stock Returns," Vanguard research "Vanguard Economic and Market Outlook for 2019: Down but not Out," Vanguard research "Experts Forecast Long-Term Stock and Bond Returns: 2019 Edition," Morningstar.com article       ETF Landscape "Investors that were more likely to trade chose the ETF." Are ETFs being used for long-term investing or trading? (46:24-49:28)  "ETFs: For the Better or Bettor?," Vanguard research paper "Morningstar's 2018 Fee Study Finds That Prices Continue to Decline," Morningstar.com article  "98% of the DNA is the same." Whether the benefits of ETFs relative to traditional index funds been overstated. (49:29-51:27)  "ETFs Versus Mutual Funds: A Comparison," Vanguard research "Traditional Index Fund vs. ETF Cage Match," Morningstar.com article  Vanguard's Personal Advisor Service  "The most important part of the financial planning process is the goal discovery." Why Vanguard's service offers a combination of human and automated advice. (51:28-56:17)  "Helping Vanguard Personal Advisor Service Clients Understand the Anatomy of Our Methodology," Vanguard research The Robo-Advice Market Is Growing, but Changing, InvestmentNews article     About the Podcast: The Long View  is a podcast from Morningstar. Each week, hosts Christine Benz and Jeff Ptak conduct an in-depth discussion with a thought leader from the world of investing or personal finance. The podcast is produced by George Castady and Scott Halver. About the Hosts: Christine Benz and Jeff Ptak have been analysts and commentators on investments and the investment industry for many years. Christine is Morningstar's director of personal finance and senior columnist for Morningstar.com. Jeff is head of global manager research for Morningstar Research Services, overseeing Morningstar's team of 120 manager research analysts in the U.S. and overseas. To Share Feedback or a Guest Idea: Write us at TheLongView@morningstar.com

Our guests for the latest installment of "The Long View," Maria Bruno and Joel Dickson, are both veterans of investment behemoth Vanguard.  Bruno is the head of U.S. wealth planning research at Vanguard, leading a team responsible for conducting research and analysis on a wide range of retirement, wealth planning, and portfolio construction topics. She also contributes to the oversight of the investment philosophy, methodology, and wealth management strategies supporting Vanguard's advisory products and services. Bruno is a Certified Financial Planner, and she's a fount of wisdom on many subjects, but especially retirement planning.  Dickson has worn many hats at Vanguard during his long career there. In his current position as Vanguard's global head of advice methodology, he oversees all investment methodology development for Vanguard's advice programs whose end consumers are individual investors.  The transcript for this podcast can be found <a href="http://news.morningstar.com/PDFs/072419lv.pdf" rel="nofollow" target="_blank">here</a>. Background Information <ul> <li><a href="https://vanguardblog.com/author/maria-bruno/" rel="nofollow" target="_blank">Maria Bruno bio</a></li> <li><a href="https://vanguardblog.com/author/joel-dickson/" rel="nofollow" target="_blank">Joel Dickson bio</a> </li> <li>"<a href="https://podcasts.apple.com/us/podcast/the-planner-and-the-geek/id1358335676" rel="nofollow" target="_blank">The Planner and the Geek" podcast series</a></li> <li><a href="https://institutional.vanguard.com/web/c1/inst-investor-researchcommentary/" rel="nofollow" target="_blank">Vanguard Research and Commentary Archive</a></li> </ul> How Retirement Savers Can Play Catch-Up "It's the 'how much?' But then also how do you actually direct those savings?" (1:30-2:56) "It's such an idiosyncratic or individual sort of consideration from a planning standpoint; there are plenty of people that have little wealth but high income." Whether traditional tax-deferred accounts are automatically better than Roth for people playing catch-up on retirement savings. (2:57-5:53) "It's a little bit simpler when you're younger and accumulating." How basic savings and investing habits, combined with plan defaults, make the accumulation period much simpler than decumulation. (5:54-8:24) 'Off-Label Uses': Ways Supersavers Can Maximize Their Investments Aftertax 401(k): What it is and how heavy savers can take advantage of it. (10:41-12:55) <ul> <li><a href="https://www.bogleheads.org/wiki/After-tax_401(k)" rel="nofollow" target="_blank">After-Tax 401(k)</a>, Bogleheads Wiki entry</li> <li>"<a href="https://www.morningstar.com/articles/682209/should-you-make-aftertax-contributions-to-your-401k" rel="nofollow" target="_blank">Should You Make Aftertax Contributions to Your 401(k)?</a>" <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a> article</li> <li>"<a href="https://www.morningstar.com/articles/821405/aftertax-401k-vs-taxable-account-evaluating-options-for-high-income-savers" rel="nofollow" target="_blank">Aftertax 401(k) vs. Taxable Account? Evaluating Options for High-Income Savers</a>," <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a> article</li> <li>"<a href="https://www.morningstar.com/articles/932374/heavy-savers-meet-the-mega-backdoor-roth" rel="nofollow" target="_blank">Heavy Savers, Meet the Mega-Backdoor Roth</a>," <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a> article</li> </ul> Backdoor Roth IRA: How it works, who should consider, and potential pitfalls to be aware of. (12:56-16:34) <ul> <li>"<a href="https://www.vanguard.com/pdf/ISGIRA9.pdf" rel="nofollow" target="_blank">IRA Insights: The Benefits of a Backdoor Roth</a>," Vanguard research</li> <li>"<a href="https://www.morningstar.com/articles/795899/backdoor-roth-iras-what-you-need-to-know" rel="nofollow" target="_blank">Backdoor IRAs: What You Need to Know</a>," <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a> article</li> </ul> "There's more and more focus on minimizing income taxes during one's life than there is about avoiding estate taxes." Using a 529 as an additional tax-advantaged savings vehicle. (16:35-21:26) <ul> <li><a href="https://investornews.vanguard/navigating-college-savings-part-1/" rel="nofollow" target="_blank">Navigating College Savings</a> episode from The Planner and The Geek podcast</li> </ul> Decumulation "How do I meet my goals today but then also make sure that I'm protecting myself down the road?" Why setting spending rates can be so tricky. (21:27-24:26) <ul> <li>"<a href="http://www.retailinvestor.org/pdf/Bengen1.pdf" rel="nofollow" target="_blank">Determining Withdrawal Rates Using Historical Data</a>," research paper by William Bengen </li> <li><a href="https://en.wikipedia.org/wiki/William_Bengen" rel="nofollow" target="_blank">William Bengen bio</a></li> <li>"<a href="https://vanguardblog.com/2017/09/07/how-to-put-a-dynamic-retirement-spending-strategy-in-place/" rel="nofollow" target="_blank">How to Put a Dynamic Retirement Spending Strategy in Place</a>," Vanguard research</li> <li>"<a href="https://www.morningstar.com/articles/800273/spending-trends-boost-safe-withdrawal-rate-for-retirees" rel="nofollow" target="_blank">Spending Trends Boost Safe Withdrawal Rate for Retirees</a>," <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a> video</li> <li>"<a href="https://www.onefpa.org/journal/Pages/The%204%20Percent%20Rule%20Is%20Not%20Safe%20in%20a%20Low-Yield%20World.aspx" rel="nofollow" target="_blank">The 4 Percent Rule Is Not Safe in a Low-Yield World</a>," research paper by Michael Finke, David Blanchett, and Wade Pfau</li> </ul> "We're telling people to, on average, oversave and underspend." Balancing longevity, sequence risk with spending and quality of life. (24:27-28:35) <ul> <li>"<a href="https://www.morningstar.com/articles/922515/is-there-an-upside-to-sequence-of-return-risk" rel="nofollow" target="_blank">Is There an Upside to Sequence of Return Risk?</a>" <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a> video </li> <li><a href="https://www.onefpa.org/journal/pages/may14-exploring-the-retirement-consumption-puzzle-.aspx" rel="nofollow" target="_blank">Exploring the Retirement Consumption Puzzle</a>, research paper by David Blanchett </li> </ul> "At the end of the day you still kind of get to the same end result." How bucket portfolios may not look very different from traditionally allocated retirement portfolios. (28:36-31:30) <ul> <li>"<a href="https://www.morningstar.com/articles/714223/the-bucket-approach-to-retirement-allocation" rel="nofollow" target="_blank">The Bucket Approach to Retirement Portfolio Allocation</a>," <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a> article </li> </ul> "Retirees could be overexposed to equity risk." Whether retirees aren't derisking their portfolios. (31:31-32:41) <ul> <li>"<a href="https://personal.vanguard.com/pdf/ISGPORE.pdf" rel="nofollow" target="_blank">Best Practices for Portfolio Rebalancing</a>," Vanguard research paper </li> <li>"<a href="https://institutional.vanguard.com/iam/pdf/TRFTLC.pdf" rel="nofollow" target="_blank">Generations: Key Drivers of Investor Behavior</a>," Vanguard research paper</li> </ul> "The rules of thumb just don't work as well." Why managing taxes during retirement is necessarily an individualized process. (32:42-36:24) <ul> <li>"<a href="https://www.vanguard.com/pdf/icrsp.pdf" rel="nofollow" target="_blank">Spending from a Portfolio: Implications of Withdrawal Order for Taxable Investors</a>," Vanguard research paper</li> </ul> "Here you're actually looking at strategies that could accelerate income taxes." How the post-retirement/pre-RMD years are a prime time to control future tax bills. (36:25-39:41) • "<a href="https://www.morningstar.com/articles/722581/an-ira-conversion-sweet-spot" rel="nofollow" target="_blank">An IRA Conversion Sweet Spot</a>," <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a> video  • "<a href="https://vanguardblog.com/2018/06/25/age-is-just-a-number-start-thinking-about-rmds-now/comment-page-2/" rel="nofollow" target="_blank">Age Is Just a Number: Start Thinking About RMDs Now</a>," Vanguard blog post • "<a href="https://advisors.vanguard.com/VGApp/iip/site/advisor/researchcommentary/article/IWE_InvComStrgsFrAnnlRthCnvrsns" rel="nofollow" target="_blank">Strategies for Annual Roth Conversions</a>," Vanguard research • "<a href="https://www.vanguard.com/pdf/ISGIRA7.pdf" rel="nofollow" target="_blank">But What If I Don't Want My RMD?</a>," Vanguard research • "<a href="https://www.morningstar.com/articles/671306/retirees-what-to-do-with-rmds-you-dont-need" rel="nofollow" target="_blank">What to Do With RMDs You Don't Need</a>," <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a> article  Building Portfolios "You have human capital risk at the same time you have investment risk." How investors should think holistically about risk when building their portfolios. (39:42-44:37) <ul> <li>"<a href="https://advisors.vanguard.com/iwe/pdf/FASINVMP.pdf" rel="nofollow" target="_blank">Vanguard ETF Strategic Model Portfolios</a>," Vanguard research paper</li> <li>"<a href="https://www.vanguard.com/pdf/ISGGEB.pdf" rel="nofollow" target="_blank">Global Equity Investing: The Benefits of Diversification and Sizing Your Allocation</a>," Vanguard research paper </li> </ul> "Focus on the things that you can control." What to do if investment returns are muted in the future. (44:38-46:23) <ul> <li>"<a href="https://vanguardblog.com/2019/03/13/what-fed-projections-may-mean-for-longer-term-stock-returns/" rel="nofollow" target="_blank">What Fed Projections May Mean for Longer-Term Stock Returns</a>," Vanguard research</li> <li>"<a href="https://personal.vanguard.com/pdf/ISGVEMO.pdf" rel="nofollow" target="_blank">Vanguard Economic and Market Outlook for 2019: Down but not Out</a>," Vanguard research</li> <li>"<a href="https://www.morningstar.com/articles/907378/experts-forecast-longterm-stock-and-bond-returns-2" rel="nofollow" target="_blank">Experts Forecast Long-Term Stock and Bond Returns: 2019 Edition</a>," <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a> article </li> </ul> ETF Landscape "Investors that were more likely to trade chose the ETF." Are ETFs being used for long-term investing or trading? (46:24-49:28) <ul> <li>"<a href="https://personal.vanguard.com/pdf/s318.pdf" rel="nofollow" target="_blank">ETFs: For the Better or Bettor?</a>," Vanguard research paper</li> <li>"<a href="https://www.morningstar.com/articles/925303/2018-morningstar-fee-study-finds-that-fund-prices-" rel="nofollow" target="_blank">Morningstar's 2018 Fee Study Finds That Prices Continue to Decline</a>," <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a> article</li> </ul> "98% of the DNA is the same." Whether the benefits of ETFs relative to traditional index funds been overstated. (49:29-51:27) <ul> <li>"<a href="https://investor.vanguard.com/etf/etf-vs-mutual-fund" rel="nofollow" target="_blank">ETFs Versus Mutual Funds: A Comparison</a>," Vanguard research</li> <li>"<a href="https://www.morningstar.com/articles/859328/traditional-index-fund-vs-etf-cage-match" rel="nofollow" target="_blank">Traditional Index Fund vs. ETF Cage Match</a>," <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a> article</li> </ul> Vanguard's Personal Advisor Service "The most important part of the financial planning process is the goal discovery." Why Vanguard's service offers a combination of human and automated advice. (51:28-56:17) <ul> <li>"<a href="https://investornews.vanguard/helping-vanguard-personal-advisor-clients-understand-the-anatomy-of-our-methodology/" rel="nofollow" target="_blank">Helping Vanguard Personal Advisor Service Clients Understand the Anatomy of Our Methodology</a>," Vanguard research</li> <li><a href="https://www.investmentnews.com/article/20190530/FREE/190539991/the-robo-advice-market-is-growing-but-changing" rel="nofollow" target="_blank">The Robo-Advice Market Is Growing, but Changing</a>, InvestmentNews article </li> </ul> About the Podcast: The Long View is a podcast from Morningstar. Each week, hosts Christine Benz and Jeff Ptak conduct an in-depth discussion with a thought leader from the world of investing or personal finance. The podcast is produced by George Castady and Scott Halver. About the Hosts: Christine Benz and Jeff Ptak have been analysts and commentators on investments and the investment industry for many years. Christine is Morningstar's director of personal finance and senior columnist for <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a>. Jeff is head of global manager research for Morningstar Research Services, overseeing Morningstar's team of 120 manager research analysts in the U.S. and overseas. To Share Feedback or a Guest Idea: Write us at <a href="mailto:thelongview@morningstar.com?subject=Feedback - The Long View Podcast">TheLongView@morningstar.com</a>

Maria Bruno and Joel Dickson: 'Building a Better Retirement'

Josh Brown

Our guest on this week's episode of the Long View is none other than Josh Brown, CEO of Ritholtz Wealth Management. Brown's story is unique and inspiring. He began his career as a broker but grew disillusioned with the industry's skewed incentives and practices, eventually pursuing a career as an independent Registered Investment Advisor. Along the way, Brown managed to author an acclaimed book, Backstage Wall Street, and build an enormous following around his blog, "The Reformed Broker," as well as his twitter handle, @reformedbroker. Now he oversees Ritholtz's day-to-day operations in addition to his other duties, which include serving as a regular contributor on CNBC, as a member of fintech firm BrightScope's advisory board, and most recently as a technical advisor on the Showtime hedge fund drama Billions.  Introduction and Background   Ritholtz Wealth Management Josh Brown bio The Reformed Broker Josh Brown @reformedbroker  Backstage Wall Street: An Insider’s Guide to Knowing Who to Trust, Who to Run From, and How to Maximize Your Investments by Josh Brown  BrightScope Brown's appearance on Showtime's Billions   Origin Story "A personal crisis." Josh describes the epiphany he had in leaving the brokerage industry for the advice business after 10 years (1:20-3:41).  "It worked immediately." How the Reformed Broker blog was born and led to a chance meeting with Barry Ritholtz, which gave rise to an RIA (3:42-5:21).   Barry Ritholtz bio Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy by Barry Ritholtz  "How I Met Barry" by Josh Brown, The Reformed Broker blog   The Advice Business "If they haven’t figured it out by now, they probably don’t want to." Observations on how the advice business has changed (5:22-7:29).  "Understanding Mutual Fund Classes" by Finra   SEC Regulation Best Interest Definition of a nontraded REIT   "Brokerages in name only." Why wirehouse clients aren't necessarily being ill-served by the system (7:30-8:09).   Morgan Stanley First Quarter 2019 Earnings Results  James P. Gorman, chairman and CEO of Morgan Stanley   Lending: The key difference between a fee-based account at a Wall Street wirehouse and a fee-based account at a traditional RIA (8:10-10:34).  "The Rise of Rich Man's Subprime" by Josh Brown, Fortune magazine  Securities-based lending, explained   How to Provide Financial Advice Telling the client "no." The difference between pushing product and offering advice (10:35-12:16).  "When Fund Companies Pay to Play, So Do You" by Leslie Norton, Barron's   "It's recreation; it's not a necessity." Helping clients to scratch an itch without putting their financial plans at risk (12:17-14:53). "Financial planning is the highest calling within our profession." Ensuring clients get past the firm's public persona and truly buy into its plan and approach (14:54-16:46). An ensemble approach to delivering advice to clients: The anti "eat what you kill." (16:47-18:58).  Michael Batnick bio Michael Batnick's "The Irrelevant Investor" blog  Ben Carlson bio  Ben Carlson's "A Wealth of Common Sense" blog  Blair duQuesnay bio Blair duQuesnay's "The Belle Curve" blog "Consider Firing Your Male Broker" by Blair duQuesnay, The New York Times op-ed   How to Build an Advice Firm "Barry and I don't spread out a map like Napoleon and start sticking thumb-tacks in it." How Brown thinks about strategically expanding the firm (19:04-20:45). "If somebody comes to us in a rush, it's probably a bad situation, and we don't want anything to do with it." The advisor recruitment and weeding-out process (20:46-24:23).  Kris Venne bio Bill Sweet bio   Portfolio Construction and Asset Allocation "You're going to lose money. It's gonna happen. There's no way around it." The firm's approach to allocating assets and setting client expectations (24:24-27:33). Tactical asset allocation's role in their process: "We don't believe in investment alpha using tactical." (27:34-29:33)   Sequence-of-return risk   "What if you had a tactical model that almost never did anything?" How they built their tactical-asset-allocation overlay to help manage client behavior (29:34-33:13). "I hope it underperforms, because most of our clients' money is not invested in tactical." (33:14-35:03) "Every client is different, but their needs are not." Implementing a scalable asset allocation (35:04-37:08). "You want to be wrong in such a way that it's not going to be catastrophic for the end client." How Ritholtz sets capital-markets expectations (37:09-38:41). Managing Client Assets How Ritholtz approaches assets that clients bring in with them: "You've got a human being with their own issues." (38:42-40:58)   Mark Tibergien bio   "The longer I'm doing this, the more stuff I want to take out, not add." Brown explains why they err on the side of excluding various types of investments from client portfolios (40:59-42:33). "Our clients are here because they want us." Brown says fee pressure hasn't been an issue for the firm (42:34-44:22).   Wealth/Stack Conference  Nerd's Eye View blog (Michael Kitces)   The Future of Advice "You're being judged on the portfolio, you should get paid on the portfolio you recommend." Brown is dubious of clients who aren't willing to pay for advice as a percentage of assets under advisement (44:23-46:50).  "What People Will Pay For" by Josh Brown, Reformed Broker blog   How a chocolatier's success reinforced the importance of consistency in client interactions: "Standardize the process, personalize the advice." (46:51-50:25)   Hershey Park Hershey Museum  

Our guest on this week's episode of the Long View is none other than Josh Brown, CEO of Ritholtz Wealth Management. Brown's story is unique and inspiring. He began his career as a broker but grew disillusioned with the industry's skewed incentives and practices, eventually pursuing a career as an independent Registered Investment Advisor. Along the way, Brown managed to author an acclaimed book, Backstage Wall Street, and build an enormous following around his blog, "The Reformed Broker," as well as his twitter handle, @reformedbroker. Now he oversees Ritholtz's day-to-day operations in addition to his other duties, which include serving as a regular contributor on CNBC, as a member of fintech firm BrightScope's advisory board, and most recently as a technical advisor on the Showtime hedge fund drama Billions. Introduction and Background <ul> <li><a href="https://ritholtzwealth.com/" rel="nofollow" target="_blank">Ritholtz Wealth Management</a></li> <li><a href="https://ritholtzwealth.com/team/josh-brown/" rel="nofollow" target="_blank">Josh Brown bio</a></li> <li><a href="https://thereformedbroker.com/" rel="nofollow" target="_blank">The Reformed Broker</a></li> <li>Josh Brown <a href="https://twitter.com/ReformedBroker" rel="nofollow" target="_blank">@reformedbroker</a> </li> <li><a href="https://www.amazon.com/dp/B007F8EZ9M/ref=dp-kindle-redirect?_encoding=UTF8&amp;btkr=1" rel="nofollow" target="_blank">Backstage Wall Street: An Insider’s Guide to Knowing Who to Trust, Who to Run From, and How to Maximize Your Investments</a> by Josh Brown </li> <li><a href="https://www.brightscope.com/" rel="nofollow" target="_blank">BrightScope</a></li> <li><a href="https://www.imdb.com/title/tt9261368/?ref_=ttfc_fc_cl_i515" rel="nofollow" target="_blank">Brown's appearance on Showtime's Billions</a> </li> </ul> Origin Story "A personal crisis." Josh describes the epiphany he had in leaving the brokerage industry for the advice business after 10 years (1:20-3:41). "It worked immediately." How the Reformed Broker blog was born and led to a chance meeting with Barry Ritholtz, which gave rise to an RIA (3:42-5:21).  <ul> <li><a href="https://ritholtzwealth.com/team/barry-ritholtz/" rel="nofollow" target="_blank">Barry Ritholtz bio</a></li> <li><a href="https://www.amazon.com/dp/B002JMV6Y6/ref=dp-kindle-redirect?_encoding=UTF8&amp;btkr=1" rel="nofollow" target="_blank">Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy</a> by Barry Ritholtz </li> <li>"<a href="https://thereformedbroker.com/2018/09/09/how-i-met-barry/" rel="nofollow" target="_blank">How I Met Barry</a>" by Josh Brown, The Reformed Broker blog </li> </ul> The Advice Business "If they haven’t figured it out by now, they probably don’t want to." Observations on how the advice business has changed (5:22-7:29). <ul> <li>"<a href="https://www.finra.org/investors/alerts/understanding-mutual-fund-classes" rel="nofollow" target="_blank">Understanding Mutual Fund Classes</a>" by Finra  </li> <li><a href="https://www.sec.gov/rules/final/2019/34-86031.pdf" rel="nofollow" target="_blank">SEC Regulation Best Interest</a></li> <li><a href="https://www.investopedia.com/terms/n/non-traded-reit.asp" rel="nofollow" target="_blank">Definition of a nontraded REIT</a> </li> </ul> "Brokerages in name only." Why wirehouse clients aren't necessarily being ill-served by the system (7:30-8:09).  <ul> <li><a href="https://www.morganstanley.com/about-us-ir/shareholder/1q2019.pdf" rel="nofollow" target="_blank">Morgan Stanley First Quarter 2019 Earnings Results</a> </li> <li><a href="https://www.morganstanley.com/about-us-governance/board.html?cid=ppc-71700000045105692:700000001808142:58700004651441411:p39243780956&amp;gclid=CjwKCAjwxrzoBRBBEiwAbtX1n22cc6VyS2pvnAfjv098lvIu5WUoGooVOV9vs4GpxKWDA4abjq60SBoCQyUQAvD_BwE&amp;gclsrc=aw.ds" rel="nofollow" target="_blank">James P. Gorman, chairman and CEO of Morgan Stanley</a> </li> </ul> Lending: The key difference between a fee-based account at a Wall Street wirehouse and a fee-based account at a traditional RIA (8:10-10:34). <ul> <li>"<a href="http://fortune.com/2014/12/10/securities-based-lending-banks/" rel="nofollow" target="_blank">The Rise of Rich Man's Subprime</a>" by Josh Brown, Fortune magazine </li> <li><a href="https://www.investopedia.com/terms/s/securitiesbased-lending.asp" rel="nofollow" target="_blank">Securities-based lending, explained</a> </li> </ul> How to Provide Financial Advice Telling the client "no." The difference between pushing product and offering advice (10:35-12:16). <ul> <li>"<a href="https://www.barrons.com/articles/when-fund-companies-pay-to-play-so-do-you-1397284700" rel="nofollow" target="_blank">When Fund Companies Pay to Play, So Do You</a>" by Leslie Norton, Barron's </li> </ul> "It's recreation; it's not a necessity." Helping clients to scratch an itch without putting their financial plans at risk (12:17-14:53). "Financial planning is the highest calling within our profession." Ensuring clients get past the firm's public persona and truly buy into its plan and approach (14:54-16:46). An ensemble approach to delivering advice to clients: The anti "eat what you kill." (16:47-18:58). <ul> <li><a href="https://ritholtzwealth.com/team/michael-batnick-cfa/" rel="nofollow" target="_blank">Michael Batnick bio</a></li> <li>Michael Batnick's "<a href="https://theirrelevantinvestor.com/" rel="nofollow" target="_blank">The Irrelevant Investor</a>" blog </li> <li><a href="https://ritholtzwealth.com/team/ben-carlson-cfa/" rel="nofollow" target="_blank">Ben Carlson bio</a> </li> <li>Ben Carlson's "<a href="http://awealthofcommonsense.com/" rel="nofollow" target="_blank">A Wealth of Common Sense</a>" blog </li> <li><a href="https://ritholtzwealth.com/team/blair-duquesnay/" rel="nofollow" target="_blank">Blair duQuesnay bio</a></li> <li>Blair duQuesnay's "<a href="https://blairbellecurve.com/" rel="nofollow" target="_blank">The Belle Curve</a>" blog</li> <li>"<a href="https://www.nytimes.com/2019/01/14/opinion/business-economics/new-year-resolution-investor-gende-gap.html" rel="nofollow" target="_blank">Consider Firing Your Male Broker</a>" by Blair duQuesnay, The New York Times op-ed </li> </ul> How to Build an Advice Firm "Barry and I don't spread out a map like Napoleon and start sticking thumb-tacks in it." How Brown thinks about strategically expanding the firm (19:04-20:45). "If somebody comes to us in a rush, it's probably a bad situation, and we don't want anything to do with it." The advisor recruitment and weeding-out process (20:46-24:23). <ul> <li><a href="https://ritholtzwealth.com/team/kris-venne-cfp/" rel="nofollow" target="_blank">Kris Venne bio</a></li> <li><a href="https://ritholtzwealth.com/team/bill-sweet-cfp/" rel="nofollow" target="_blank">Bill Sweet bio</a> </li> </ul> Portfolio Construction and Asset Allocation "You're going to lose money. It's gonna happen. There's no way around it." The firm's approach to allocating assets and setting client expectations (24:24-27:33). Tactical asset allocation's role in their process: "We don't believe in investment alpha using tactical." (27:34-29:33)  <ul> <li><a href="https://www.investopedia.com/terms/s/sequence-risk.asp" rel="nofollow" target="_blank">Sequence-of-return risk</a> </li> </ul> "What if you had a tactical model that almost never did anything?" How they built their tactical-asset-allocation overlay to help manage client behavior (29:34-33:13). "I hope it underperforms, because most of our clients' money is not invested in tactical." (33:14-35:03) "Every client is different, but their needs are not." Implementing a scalable asset allocation (35:04-37:08). "You want to be wrong in such a way that it's not going to be catastrophic for the end client." How Ritholtz sets capital-markets expectations (37:09-38:41). Managing Client Assets How Ritholtz approaches assets that clients bring in with them: "You've got a human being with their own issues." (38:42-40:58)  <ul> <li><a href="https://www.pershing.com/biographies/mark-tibergien" rel="nofollow" target="_blank">Mark Tibergien bio</a> </li> </ul> "The longer I'm doing this, the more stuff I want to take out, not add." Brown explains why they err on the side of excluding various types of investments from client portfolios (40:59-42:33). "Our clients are here because they want us." Brown says fee pressure hasn't been an issue for the firm (42:34-44:22).  <ul> <li><a href="https://finance.knect365.com/wealth-stack/ " rel="nofollow" target="_blank">Wealth/Stack Conference</a> </li> <li><a href="https://www.kitces.com/" rel="nofollow" target="_blank">Nerd's Eye View blog</a> (Michael Kitces) </li> </ul> The Future of Advice "You're being judged on the portfolio, you should get paid on the portfolio you recommend." Brown is dubious of clients who aren't willing to pay for advice as a percentage of assets under advisement (44:23-46:50). <ul> <li>"<a href="https://thereformedbroker.com/2018/08/09/what-people-will-pay-for/" rel="nofollow" target="_blank">What People Will Pay For</a>" by Josh Brown, Reformed Broker blog </li> </ul> How a chocolatier's success reinforced the importance of consistency in client interactions: "Standardize the process, personalize the advice." (46:51-50:25)  <ul> <li><a href="https://www.hersheypark.com/" rel="nofollow" target="_blank">Hershey Park</a></li> <li><a href="https://hersheystory.org/" rel="nofollow" target="_blank">Hershey Museum</a> </li> </ul>

Josh Brown: 'Standardize the Process, Personalize the Advice'

Jeff Levine

Our guest this week is tax and retirement planning expert, Jeffrey Levine. Jeff is director of advisor education at Kitces.com, home of the popular Nerd's Eye View blog. He's also the CEO and director of financial planning for BluePrint Wealth Alliance. Previously, Jeff served as chief retirement strategist at Ed Slott and Company. He has authored several books including, The Baby Boomer's Guide to Savvy IRA Planning, The Financial Advisor's Guide to Savvy IRA Planning, and The Definitive Guide to Required Minimum Distributions for Baby Boomers. Jeff is a frequent public speaker and media commentator, and he maintains a high profile on social media and on the Nerd's Eye View blog, where he readily shares tax and retirement planning insights. BackgroundJeffrey Levine bio Kitces.com Blueprint Wealth Alliance Jeffrey Levine on Twitter: @CPAPlannerSECURE Act: Stretch IRASECURE Act text  Stretch IRA definition  “SECURE Act And Tax Extenders Creates Retirement Planning Opportunities and Challenges,” by Jeffrey Levine, Kitces.com, Dec. 23, 2019. “Navigating the Secure Act: What Retirement Savers Need to Know to Optimize Their 401(k)s and IRAs,” by Reshma Kapadia, Barron’s, Dec. 20, 2019. “New Retirement Law Throws IRA Heirs a Curveball,” by Mark Miller, Morningstar.com, Jan. 21, 2020. “Inheriting a Parent’s IRA or 401(k)? Here’s How the Secure Act Could Create a Disaster,” by Alessandra Malito, MarketWatch, Jan. 9, 2020. “Who Should Consider a Roth Conversion Under the SECURE Act?,” by Liz Weston, MarketWatch, Feb. 1, 2020. “The Stretch IRA Strategy Is Largely Gone. Here Are 5 Alternatives to Consider,” by Cheryl Winokur Munk, Barron’s, Feb. 8, 2020. Charitable trust definition SECURE Act: RMD Age ChangeRequired minimum distribution definition IRA Required Minimum Distribution Worksheet  “How Required Minimum Distribution (RMD) Changes Under The SECURE Act Impact Retirement Accounts,” by Jeffrey Levine, Kitces.com, Jan. 8, 2020.   “Why the SECURE Act Makes 2020 the Year of Missed RMDs from IRAs,” by Jamie Hopkins, Forbes.com, Dec. 18, 2019. “Could Later RMDs Lower Your Tax Bill?” by Christine Benz, Morningstar.com, Feb. 3, 2020. “Updated Life Expectancy and Distribution Period Tables Used for Purposes of Determining Minimum Required Distributions,” (proposed rule by the IRS), IRS.gov, Nov. 8, 2019.  SECURE Act: Qualified Charitable Distributions“How to Reduce Your Taxes and AGI by Giving to Charity,” by Mark P. Cussen, Investopedia.com, Jan. 16, 2020. “Coordinating QCDs with Post 70 1/2 IRA Contributions Under the SECURE Act,” by Jeffrey Levine, Kitces.com, Jan. 22, 2020. Tax Cuts and Jobs Act of 2017 Adjusted gross income definition SECURE Act: Traditional IRA Contributions After 72“The Kaye Bailey Hutchison Spousal IRA Receives Congressional Agreement,” by Beverly DeVeny, irahelp.com, Aug. 9, 2013. SECURE Act: Open MEPs“Could Multiple-Employer Plans Be a Game Changer for Retirement Security?” by Aron Szapiro, Morningstar.com, Dec. 19, 2019. “Secure Act’s MEP Changes Are a Game Changer for 2020,” by Robert Bloink and William H. Byrnes, ThinkAdvisor, Jan. 8, 2020. “The New American Retirement Plan,” by John Rekenthaler, Morningstar.com, Jan. 14, 2020. “Replacing 401(k) Plans: Further Thoughts,” by John Rekenthaler, Morningstar.com, Jan. 21, 2020.  SECURE Act: Annuities in Company Retirement Plans"What the SECURE Act Means for Annuities," by Jamie Hopkins, InvestmentNews, Dec. 17, 2019. “Security Act’s 401(k) Annuity Options: The Pros and Cons,” by William H. Byrnes and Robert Bloink, ThinkAdvisor, Jan. 14, 2020.  

Our guest this week is tax and retirement planning expert, Jeffrey Levine. Jeff is director of advisor education at <a href="https://www.kitces.com/" rel="nofollow" target="_blank">Kitces.com</a>, home of the popular Nerd's Eye View blog. He's also the CEO and director of financial planning for BluePrint Wealth Alliance. Previously, Jeff served as chief retirement strategist at Ed Slott and Company. He has authored several books including, The Baby Boomer's Guide to Savvy IRA Planning, The Financial Advisor's Guide to Savvy IRA Planning, and The Definitive Guide to Required Minimum Distributions for Baby Boomers. Jeff is a frequent public speaker and media commentator, and he maintains a high profile on social media and on the Nerd's Eye View blog, where he readily shares tax and retirement planning insights. Background <a href="https://fullyvestedadvice.com/about/" rel="nofollow" target="_blank">Jeffrey Levine bio</a> <a href="https://www.kitces.com/" rel="nofollow" target="_blank">Kitces.com</a> <a href="https://www.bpwalliance.com/" rel="nofollow" target="_blank">Blueprint Wealth Alliance</a> Jeffrey Levine on Twitter: <a href="https://twitter.com/CPAPlanner" rel="nofollow" target="_blank">@CPAPlanner</a> SECURE Act: Stretch IRA <a href="https://www.congress.gov/bill/116th-congress/house-bill/1865" rel="nofollow" target="_blank">SECURE Act text</a> <a href="https://www.investopedia.com/terms/s/stretch-ira.asp" rel="nofollow" target="_blank">Stretch IRA definition</a> “<a href="https://www.kitces.com/blog/secure-act-2019-stretch-ira-rmd-effective-date-mep-auto-enrollment/" rel="nofollow" target="_blank">SECURE Act And Tax Extenders Creates Retirement Planning Opportunities and Challenges</a>,” by Jeffrey Levine, <a href="http://Kitces.com" rel="nofollow" target="_blank">Kitces.com</a>, Dec. 23, 2019.  “<a href="https://www.barrons.com/articles/navigating-the-secure-act-what-retirement-savers-need-to-know-to-optimize-their-401-k-s-and-iras-51576886142" rel="nofollow" target="_blank">Navigating the Secure Act: What Retirement Savers Need to Know to Optimize Their 401(k)s and IRAs</a>,” by Reshma Kapadia, Barron’s, Dec. 20, 2019.  “New Retirement Law Throws IRA Heirs a Curveball,” by Mark Miller, <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a>, Jan. 21, 2020.  “<a href="https://www.marketwatch.com/story/inheriting-a-parents-ira-or-401k-heres-how-the-secure-act-could-create-a-disaster-2019-12-26" rel="nofollow" target="_blank">Inheriting a Parent’s IRA or 401(k)? Here’s How the Secure Act Could Create a Disaster</a>,” by Alessandra Malito, MarketWatch, Jan. 9, 2020.  “<a href="https://www.marketwatch.com/story/who-should-consider-a-roth-conversion-under-the-secure-act-2020-01-28" rel="nofollow" target="_blank">Who Should Consider a Roth Conversion Under the SECURE Act</a><a href="https://www.marketwatch.com/story/who-should-consider-a-roth-conversion-under-the-secure-act-2020-01-28" rel="nofollow" target="_blank">?</a>,” by Liz Weston, MarketWatch, Feb. 1, 2020.  “<a href="https://www.barrons.com/articles/the-stretch-ira-strategy-is-largely-gone-here-are-5-alternatives-to-consider-51581168601" rel="nofollow" target="_blank">The Stretch IRA Strategy Is Largely Gone. Here Are 5 Alternatives to Consider</a>,” by Cheryl Winokur Munk, Barron’s, Feb. 8, 2020.  <a href="https://en.wikipedia.org/wiki/Charitable_trust" rel="nofollow" target="_blank">Charitable trust definition</a> SECURE Act: RMD Age Change <a href="https://www.investopedia.com/terms/r/requiredminimumdistribution.asp" rel="nofollow" target="_blank">Required minimum distribution definition</a> <a href="https://www.irs.gov/pub/irs-tege/uniform_rmd_wksht.pdf" rel="nofollow" target="_blank">IRA Required Minimum Distribution Worksheet</a> “<a href="https://www.kitces.com/blog/secure-act-age-72-required-minimum-distribution-rmd-age-70-1-2-qcd-2020/" rel="nofollow" target="_blank">How Required Minimum Distribution (RMD) Changes Under The SECURE Act Impact Retirement Accounts</a>,” by Jeffrey Levine, <a href="http://Kitces.com" rel="nofollow" target="_blank">Kitces.com</a>, Jan. 8, 2020.  “<a href="https://www.forbes.com/sites/jamiehopkins/2019/12/18/why-the-secure-act-makes-2020-the-year-of-missed-rmds-from-iras/#5254eba04827" rel="nofollow" target="_blank">Why the SECURE Act Makes 2020 the Year of Missed RMDs from IRAs</a>,” by Jamie Hopkins, <a href="http://Forbes.com" rel="nofollow" target="_blank">Forbes.com</a>, Dec. 18, 2019.  “Could Later RMDs Lower Your Tax Bill?” by Christine Benz, <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a>, Feb. 3, 2020.  “<a href="https://www.federalregister.gov/documents/2019/11/08/2019-24065/updated-life-expectancy-and-distribution-period-tables-used-for-purposes-of-determining-minimum" rel="nofollow" target="_blank">Updated Life Expectancy and Distribution Period Tables Used for Purposes of Determining Minimum Required Distributions</a>,” (proposed rule by the IRS), <a href="http://IRS.gov" rel="nofollow" target="_blank">IRS.gov</a>, Nov. 8, 2019. SECURE Act: Qualified Charitable Distributions “<a href="https://www.investopedia.com/articles/financial-advisors/032116/how-use-qcd-rule-reduce-your-taxes.asp" rel="nofollow" target="_blank">How to Reduce Your Taxes and AGI by Giving to Charity</a>,” by Mark P. Cussen, <a href="http://Investopedia.com" rel="nofollow" target="_blank">Investopedia.com</a>, Jan. 16, 2020. “<a href="https://www.kitces.com/blog/secure-act-qualified-charitable-distributions-qcd-ira-contribution-age-repeal-70-1-2-anti-abuse-reduction/" rel="nofollow" target="_blank">Coordinating QCDs with Post 70 1/2 IRA Contributions Under the SECURE Act</a>,” by Jeffrey Levine, <a href="http://Kitces.com" rel="nofollow" target="_blank">Kitces.com</a>, Jan. 22, 2020.  <a href="https://en.wikipedia.org/wiki/Tax_Cuts_and_Jobs_Act_of_2017" rel="nofollow" target="_blank">Tax Cuts and Jobs Act of 2017</a> <a href="https://www.irs.gov/e-file-providers/definition-of-adjusted-gross-income" rel="nofollow" target="_blank">Adjusted gross income definition</a> SECURE Act: Traditional IRA Contributions After 72 “<a href="https://www.irahelp.com/slottreport/kay-bailey-hutchison-spousal-ira-receives-congressional-agreement " rel="nofollow" target="_blank">The Kaye Bailey Hutchison Spousal IRA Receives Congressional Agreement</a>,” by Beverly DeVeny, <a href="http://irahelp.com" rel="nofollow" target="_blank">irahelp.com</a>, Aug. 9, 2013.  SECURE Act: Open MEPs “<a href="https://www.morningstar.com/insights/2019/12/19/mep-retirement" rel="nofollow" target="_blank">Could Multiple-Employer Plans Be a Game Changer for Retirement Security?</a>” by Aron Szapiro, <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a>, Dec. 19, 2019.  “<a href="https://www.thinkadvisor.com/2020/01/08/are-secure-acts-meps-changes-a-game-changer-for-2020/" rel="nofollow" target="_blank">Secure Act’s MEP Changes Are a Game Changer for 2020</a>,” by Robert Bloink and William H. Byrnes, ThinkAdvisor, Jan. 8, 2020.  “The New American Retirement Plan,” by John Rekenthaler, <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a>, Jan. 14, 2020.  “Replacing 401(k) Plans: Further Thoughts,” by John Rekenthaler, <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a>, Jan. 21, 2020.  SECURE Act: Annuities in Company Retirement Plans "<a href="https://www.investmentnews.com/what-the-secure-act-means-for-annuities-175655" rel="nofollow" target="_blank">What the SECURE Act Means for Annuities</a>," by Jamie Hopkins, InvestmentNews, Dec. 17, 2019. “<a href="https://www.thinkadvisor.com/2020/01/14/secure-acts-401k-annuity-options-what-to-know/" rel="nofollow" target="_blank">Security Act’s 401(k) Annuity Options: The Pros and Cons</a>,” by William H. Byrnes and Robert Bloink, ThinkAdvisor, Jan. 14, 2020.

Jeff Levine: Cracking the New Retirement Code

Our guest for this week's installment of The Long View podcast is Morgan Housel. Morgan is a partner at the Collaborative Fund, a venture capital firm that makes investments in firms that in its words are "at the intersection of for-profit and for-good." A former columnist at The Motley Fool and The Wall Street Journal, Morgan has become one of the most prolific and insightful writers on the investment decision-making process, as evidenced by his impressive body of work on the Collaborative Fund website's blog.  Morgan joined us in this live recording of The Long View from the 31st annual Morningstar Investment Conference in Chicago. Our interview covered a lot of ground, from how Morgan found his way into the finance world, to the role he plays at Collaborative Fund, to a host of other personal and behavioral finance topics that draw on his work. Show Notes The accidental writer: Morgan's background and how he came to write about financial topics (0:55-3:04) "The ability to write a check is no longer a competitive advantage": What Collaborative Fund does, why Morgan was drawn to it, and the role content plays in its strategy (3:05-5:05)  Authorial license: "It's really important to write what … you yourself would find interesting" (5:06-5:58)  Transparency and impact: "We're looking for companies whose ability to do good is their competitive economic advantage" (5:59-8:21)  Public vs. private investing: "If I made a Venn diagram of public and privates, the overlap is much greater than I ever thought it would be" (8:22-9:19)  Theory vs. practice: How private-market "lock-ups" can make sense for individual investors but are still inappropriate for the vast majority (9:20-10:24)  The future of public-private investing: "There's some liquidity in private markets but it’s not very efficient" (10:25-11:16)  Be honest with yourself: Don't try to fight behavioral biases which can't be eliminated anyway; work around them (11:17-13:13)  "That's what works for me": How Morgan reckons with his own behavioral biases (13:14-13:44)  Financial advisors' job one? Don't allow events or emotions to interrupt compounding (13:45-15:52)  History and psychology: "The most important intersection in investing" (15:53-18:24)  Scarred, not complacent: Investors are still licking their wounds from the global financial crisis (18:25-20:12)  You can't shake investors out of their experiences; it takes a new generation to come along (20-13-21:17)   "There’s no other industry in the world where the rewards are as big as in finance": How big paydays can distract focus from everyday work (21:18-23:42)  How fee arrangements can impact portfolio managers' risk and reward calculations (23:43-24:26)  Avoiding confirmation bias and bringing in diverse perspectives: "Find someone who you admire their thought process in one aspect of thinking … but you disagree with them about something else" (24:27-26:10)  A crank whose views Morgan respects--"Jake" on financial Twitter (@econompic) (26:11-26:45)  "No one hires a luck manager": Morgan explains how investors tend to account for risk, but not luck, in their decisions (26:46-29:17)  "Investing isn't the study of finance. Investing is the study of how people behave with money." Morgan explains why he doesn't read investing books (29:18-30:03)  How people deal with uncertainty and opportunity: The importance of content aggregators and of ditching bad books (30:04-31:14)  Perishable: Morgan's favorite non-investing book of the last few years is about how much things can change, on average, in everyday life (31:15-33:03)  "You're not proven until you've survived a calamity": Why it’s so hard to distinguish skill from luck (33:04-35:16)  Good advice (that Morgan doesn't follow himself): Carry a little bit of debt to hone your focus (35:17-36:56)  "You have to pay the fee": How thinking of volatility as an ongoing price for the opportunity to grow capital can help investors put risk in the right context (36:57-38:56)  Are investors giving up on investment skill? Yes, but that’s probably OK (38:57-40:41)  The importance of financial planning: Telling clients the truth (i.e., that they're not on a path to a secure, comfortable retirement, not matter how much they want to believe otherwise) (40:42-43:09)  On Jack Bogle: "The biggest undercover philanthropist of all time." (43:10-44:48)  What matters is how well you behave: The psychology of investing (44:49-45:41) References The Collaborative Fund blog Morgan Housel’s collected works Morgan Housel, bio  “You Played Yourself” by Morgan Housel (Apr. 24, 2019)  “You Have to Live it to Believe It” by Morgan Housel (Apr. 9, 2019)  “Useful and Overlooked Skills” by Morgan Housel (May 1, 2019)  Jake (@econompic) and Econompic Patrick O’Shaughnessy, “The Investor’s Field Guide”  Abnormal Returns  “The Big Change: America Transforms Itself 1900-1950” by Frederick Lewis Allen Books recommended by Charlie Munger “Origins of Greed and Fear” by Morgan Housel (Jan. 31, 2019) George Soros  “A Man in the Mirror” by William H. Gross (April 2013) 10-year Treasury Rate “Counterintuitive Competitive Advantages” by Morgan Housel (Mar. 13, 2019)  “Fees vs. Fines” by Morgan Housel (Apr. 2, 2019)  “Statement of Principles” by Jason Zweig  “When You’ll Believe Anything” by Morgan Housel (Apr. 15, 2019) Jack Bogle Morgan Housel’s tweet about Jack Bogle  About the Podcast: The Long View is a podcast from Morningstar. Each week, hosts Christine Benz and Jeff Ptak conduct an in-depth discussion with a thought leader from the world of investing or personal finance. The podcast is produced by George Castady and Scott Halver. About the Hosts: Christine Benz and Jeff Ptak have been analysts and commentators on investments and the investment industry for many years. Christine is Morningstar's director of personal finance and senior columnist for Morningstar.com. Jeff is head of global manager research in Morningstar Research Services, overseeing Morningstar's team of 120 manager research analysts in the U.S. and overseas.  To Share Feedback or a Guest Idea: Write us at TheLongView@morningstar.com

Our guest for this week's installment of The Long View podcast is Morgan Housel. Morgan is a partner at the Collaborative Fund, a venture capital firm that makes investments in firms that in its words are "at the intersection of for-profit and for-good." A former columnist at The Motley Fool and The Wall Street Journal, Morgan has become one of the most prolific and insightful writers on the investment decision-making process, as evidenced by his impressive body of work on <a href="https://www.collaborativefund.com/blog/" rel="nofollow" target="_blank">the Collaborative Fund website's blog</a>. Morgan joined us in this live recording of The Long View from the 31st annual Morningstar Investment Conference in Chicago. Our interview covered a lot of ground, from how Morgan found his way into the finance world, to the role he plays at Collaborative Fund, to a host of other personal and behavioral finance topics that draw on his work. Show Notes The accidental writer: Morgan's background and how he came to write about financial topics (0:55-3:04) "The ability to write a check is no longer a competitive advantage": What Collaborative Fund does, why Morgan was drawn to it, and the role content plays in its strategy (3:05-5:05) Authorial license: "It's really important to write what … you yourself would find interesting" (5:06-5:58) Transparency and impact: "We're looking for companies whose ability to do good is their competitive economic advantage" (5:59-8:21) Public vs. private investing: "If I made a Venn diagram of public and privates, the overlap is much greater than I ever thought it would be" (8:22-9:19) Theory vs. practice: How private-market "lock-ups" can make sense for individual investors but are still inappropriate for the vast majority (9:20-10:24) The future of public-private investing: "There's some liquidity in private markets but it’s not very efficient" (10:25-11:16) Be honest with yourself: Don't try to fight behavioral biases which can't be eliminated anyway; work around them (11:17-13:13) "That's what works for me": How Morgan reckons with his own behavioral biases (13:14-13:44) Financial advisors' job one? Don't allow events or emotions to interrupt compounding (13:45-15:52) History and psychology: "The most important intersection in investing" (15:53-18:24) Scarred, not complacent: Investors are still licking their wounds from the global financial crisis (18:25-20:12) You can't shake investors out of their experiences; it takes a new generation to come along (20-13-21:17) "There’s no other industry in the world where the rewards are as big as in finance": How big paydays can distract focus from everyday work (21:18-23:42) How fee arrangements can impact portfolio managers' risk and reward calculations (23:43-24:26) Avoiding confirmation bias and bringing in diverse perspectives: "Find someone who you admire their thought process in one aspect of thinking … but you disagree with them about something else" (24:27-26:10) A crank whose views Morgan respects--"Jake" on financial Twitter (@econompic) (26:11-26:45) "No one hires a luck manager": Morgan explains how investors tend to account for risk, but not luck, in their decisions (26:46-29:17) "Investing isn't the study of finance. Investing is the study of how people behave with money." Morgan explains why he doesn't read investing books (29:18-30:03) How people deal with uncertainty and opportunity: The importance of content aggregators and of ditching bad books (30:04-31:14) Perishable: Morgan's favorite non-investing book of the last few years is about how much things can change, on average, in everyday life (31:15-33:03) "You're not proven until you've survived a calamity": Why it’s so hard to distinguish skill from luck (33:04-35:16) Good advice (that Morgan doesn't follow himself): Carry a little bit of debt to hone your focus (35:17-36:56) "You have to pay the fee": How thinking of volatility as an ongoing price for the opportunity to grow capital can help investors put risk in the right context (36:57-38:56) Are investors giving up on investment skill? Yes, but that’s probably OK (38:57-40:41) The importance of financial planning: Telling clients the truth (i.e., that they're not on a path to a secure, comfortable retirement, not matter how much they want to believe otherwise) (40:42-43:09) On Jack Bogle: "The biggest undercover philanthropist of all time." (43:10-44:48) What matters is how well you behave: The psychology of investing (44:49-45:41) References <a href="https://www.collaborativefund.com/blog/" rel="nofollow" target="_blank">The Collaborative Fund blog</a> <a href="https://www.collaborativefund.com/blog/authors/morgan/" rel="nofollow" target="_blank">Morgan Housel’s collected works</a> <a href="http://www.morganhousel.com/" rel="nofollow" target="_blank">Morgan Housel, bio</a> <a href="https://www.collaborativefund.com/blog/you-played-yourself/" rel="nofollow" target="_blank">“You Played Yourself” by Morgan Housel (Apr. 24, 2019)</a> <a href="https://www.collaborativefund.com/blog/you-have-to-live-it-to-believe-it/" rel="nofollow" target="_blank">“You Have to Live it to Believe It” by Morgan Housel (Apr. 9, 2019) </a> <a href="https://www.collaborativefund.com/blog/useful-and-overlooked-skills/" rel="nofollow" target="_blank">“Useful and Overlooked Skills” by Morgan Housel (May 1, 2019) </a> <a href="https://twitter.com/EconomPic" rel="nofollow" target="_blank">Jake (@econompic)</a> and <a href="http://econompicdata.blogspot.com/" rel="nofollow" target="_blank">Econompic</a> <a href="http://investorfieldguide.com/about/" rel="nofollow" target="_blank">Patrick O’Shaughnessy, “The Investor’s Field Guide” </a> <a href="https://abnormalreturns.com/" rel="nofollow" target="_blank">Abnormal Returns </a> <a href="https://www.amazon.com/Big-Change-America-Transforms-1900-1950/dp/1560006390" rel="nofollow" target="_blank">“The Big Change: America Transforms Itself 1900-1950” by Frederick Lewis Allen</a> <a href="http://https://www.goodreads.com/list/show/21480.Books_Recommended_by_Charlie_Munger" rel="nofollow" target="_blank">Books recommended by Charlie Munger</a> <a href="http://https://www.collaborativefund.com/blog/origins-of-greed-and-fear/" rel="nofollow" target="_blank">“Origins of Greed and Fear” by Morgan Housel (Jan. 31, 2019) </a><a href="https://www.georgesoros.com/" rel="nofollow" target="_blank">George Soros </a><a href="http://https://www.pimco.com/en-us/insights/economic-and-market-commentary/investment-outlook/a-man-in-the-mirror/" rel="nofollow" target="_blank">“A Man in the Mirror” by William H. Gross (April 2013) </a><a href="http://https://www.multpl.com/10-year-treasury-rate" rel="nofollow" target="_blank">10-year Treasury Rate </a><a href="https://www.collaborativefund.com/blog/counterintuitive-competitive-advantages/" rel="nofollow" target="_blank">“Counterintuitive Competitive Advantages” by Morgan Housel (Mar. 13, 2019) </a><a href="https://www.collaborativefund.com/blog/fees-vs-fines/" rel="nofollow" target="_blank">“Fees vs. Fines” by Morgan Housel (Apr. 2, 2019) </a><a href="http://jasonzweig.com/about/statement-of-principles/" rel="nofollow" target="_blank">“Statement of Principles” by Jason Zweig </a><a href="https://www.collaborativefund.com/blog/when-youll-believe-anything/" rel="nofollow" target="_blank">“When You’ll Believe Anything” by Morgan Housel (Apr. 15, 2019) </a><a href="https://about.vanguard.com/who-we-are/a-remarkable-history/founder-Jack-Bogle-tribute/" rel="nofollow" target="_blank">Jack Bogle </a><a href="https://twitter.com/morganhousel/status/1085664243259600896?s=20" rel="nofollow" target="_blank">Morgan Housel’s tweet about Jack Bogle</a> <a href="https://twitter.com/morganhousel/status/1085664243259600896?s=20" rel="nofollow" target="_blank"></a> About the Podcast: The Long View is a podcast from Morningstar. Each week, hosts Christine Benz and Jeff Ptak conduct an in-depth discussion with a thought leader from the world of investing or personal finance. The podcast is produced by George Castady and Scott Halver. About the Hosts: Christine Benz and Jeff Ptak have been analysts and commentators on investments and the investment industry for many years. Christine is Morningstar's director of personal finance and senior columnist for <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a>. Jeff is head of global manager research in Morningstar Research Services, overseeing Morningstar's team of 120 manager research analysts in the U.S. and overseas. To Share Feedback or a Guest Idea: Write us at <a href="mailto:thelongview@morningstar.com?subject=Feedback - The Long View Podcast">TheLongView@morningstar.com</a>

Morgan Housel: No One Hires a Luck Manager

Michael Finke

Our guest on this week’s episode of The Long View podcast is nationally renowned retirement researcher Dr. Michael Finke. Michael is Professor of Wealth Management and Frank M. Engle Distinguished Chair in Economic Security at The American College of Financial Services. He joined the College in June 2016 having served since 2006 as a professor and PhD coordinator in the department of personal financial planning at Texas Tech University. From 1999 through 2006, he served as the Director of Graduate Studies at the University of Missouri. Michael has published more than 50 peer review articles with a focus on the value of financial advice, financial planning regulation, investments and individual investor behavior. He was named to the 2012 Investment Advisor IA 25 list and the 2013 and 2014 Investment News Power 20. His research conducted with Wade Pfau, questioning the 4% rule was published in the Journal of Financial Planning and won the 2014 Montgomery-Warschauer award for the most influential article in the publication. He had previously won the award with Thomas Langdon in 2013. He was also selected to present his research on financial literacy and aging at the 2015 MIT Center for Finance and Policy Conference.BackgroundMichael Finke, PhD, CFP bio Finke CV 2013 Investment Advisor IA 25 profile 2013 Investment news Power 20 profileMontgomery-Warshauer AwardWithdrawal Rates“The 4% Rule is Not Safe in a Low-Yield World” by Michael Finke, Ph.D., CFP; Wade D. Pfau Ph.D., CFP; David M. Blanchett CFP, CFA; Journal of Financial Planning; June 2013“Determining Withdrawal Rates Using Historical Data” by William ​Bengen; Journal of Financial Planning; October 1994 “Low Bond Yields and Safe Portfolio Withdrawal Rates” by David Blanchett, CFP, CFA; Michael Finke, Ph.D., CFP, and Wade Pfau, Ph.D., CFP; Morningstar Investment Management; January 2013“Reduce Retirement Costs with Deferred Income Annuities Purchased before Retirement” by Michael Finke, Ph.D., CFP  and Wade Pfau, Ph.D., CFP; Journal of Financial Planning; July 2015 “Why Advisors Should Use Deferred-Income Annuities” by Michael Finke, Ph.D., CFP; Advisor Perspectives; November 2015“Retirement Income for Life; Here’s a New Way to Get It” by Michael Finke, Ph.D., CFP; Bottom-line Personal; July 2016“Lifetime Income Solutions as a Qualified Default Investment Alternative (QDIA) Focus on Decumulation and Rollover”; Written Testimony of Michael Finke, Chief Academic Officer, The American College of Financial Services; 2018 ERISA Advisory Council, August 2018 Health and Cognitive Decline“Old Age and the Decline in Financial Literacy” presented by Michael Finke at the MIT Center for Finance &amp; Policy; September 2015  “Health and Retirement Study”; National Institute on Aging, Social Security Administration; University of Michigan’s Institute for Social Research “Managing Long-term Care Spending Risks in Retirement” by Michael Finke Ph.D., CFP and Wade Pfau Ph.D., CFP; 2017  “Old Age and the Decline in Financial Literacy” by Michael Finke, Ph.D., CFP, John Howe, Sandra Huston; Management Science; August 2011 “Wealth Shocks and Health Outcomes: Evidence from Stock Market Fluctuations” by Hannes Schwandt; American Economic Journal; October 2018&gt;Retiree Spending“Spending, Relationship Quality, and Life Satisfaction in Retirement” by Michael Finke, Nhat Ho, Sandra J. Huston; 2018 Academic Research Colloquium for Financial Planning &amp; Related Disciplines; September 2017 “Spending in Retirement: Determining the Consumption Gap” by Chris Browning, Ph.D., Tao Guo, Ph.D., Yuanshan Cheng, and Michael Finke, Ph.D., CFP; Journal of Financial Planning “Estimating the True Cost of Retirement” by David Blanchett, CFP, CFA; Morningstar Investment Management; 2013Asset Allocation in Retirement“An Old Friend: The Stock Market's Shiller P/E” by Cliff Asness; AQR; November 2012 Daily Treasury U.S. Real Yield Curve Rates; U.S. Department of the Treasury “Reducing Retirement Income Risk with a Rising Equity Glide-Path” by Wade Pfau and Michael Kitces; SSRN; September 2013  “The Effect of Advanced Age and Equity Value on Risk Preferences” by David Blanchett, Michael Finke, and Michael Guillemette; Journal of Behavioral Finance; January 2018  Equity risk premium data; website of professor Aswath Damodaran; Stern School of Business at New York University Other“The Impact of the Broker-Dealer Fiduciary Standard on Financial Advice” by Michael Finke, Ph.D., CFP, and Thomas P. Langdon, J.D., LL.M., CFP, CFA; Journal of Financial Planning; July 2012

Our guest on this week’s episode of The Long View podcast is nationally renowned retirement researcher Dr. Michael Finke. Michael is Professor of Wealth Management and Frank M. Engle Distinguished Chair in Economic Security at The American College of Financial Services. He joined the College in June 2016 having served since 2006 as a professor and PhD coordinator in the department of personal financial planning at Texas Tech University. From 1999 through 2006, he served as the Director of Graduate Studies at the University of Missouri. Michael has published more than 50 peer review articles with a focus on the value of financial advice, financial planning regulation, investments and individual investor behavior. He was named to the 2012 Investment Advisor IA 25 list and the 2013 and 2014 Investment News Power 20. His research conducted with Wade Pfau, questioning the 4% rule was published in the Journal of Financial Planning and won the 2014 Montgomery-Warschauer award for the most influential article in the publication. He had previously won the award with Thomas Langdon in 2013. He was also selected to present his research on financial literacy and aging at the 2015 MIT Center for Finance and Policy Conference.Background<a href="https://www.troweprice.com/financial-intermediary/us/en/search.html/biokey/bcf10e78-4e70-46f8-9dd6-33c492e7a78b" rel="nofollow" target="_blank"></a><a href="https://www.theamericancollege.edu/our-people/faculty/michael-finke" rel="nofollow" target="_blank">Michael Finke, PhD, CFP bio</a> <a href="http://nebula.wsimg.com/ae6ae65c62cc730283530449e57b7e07?AccessKeyId=7EABAE55F7A7C68BDCF9&amp;disposition=0&amp;alloworigin=1" rel="nofollow" target="_blank">Finke CV</a> <a href="https://www.thinkadvisor.com/2013/05/21/dr-michael-finke-the-2013-ia-25-extended-profile/" rel="nofollow" target="_blank">2013 Investment Advisor IA 25 profile</a> <a href="https://www.investmentnews.com/gallery/20121215/FREE/121309998/PH&amp;Params=Itemnr=12" rel="nofollow" target="_blank">2013 Investment news Power 20 profile</a> <a>Montgomery-Warshauer Award</a>Withdrawal Rates<a href="http://https://www.onefpa.org/journal/Pages/The%204%20Percent%20Rule%20Is%20Not%20Safe%20in%20a%20Low-Yield%20World.aspx?_ga=1.121353480.1655500304.1424735774" rel="nofollow" target="_blank">“The 4% Rule is Not Safe in a Low-Yield World” by Michael Finke, Ph.D., CFP; Wade D. Pfau Ph.D., CFP; David M. Blanchett CFP, CFA; Journal of Financial Planning; June 2013</a><a href="https://www.onefpa.org/journal/Pages/OCT94-Determining-Withdrawal-Rates-Using-Historical-Data.aspx" rel="nofollow" target="_blank">“Determining Withdrawal Rates Using Historical Data” by William ​Bengen; Journal of Financial Planning; October 1994 </a><a href="https://news.morningstar.com/pdfs/blanchett_lowbondyield_1301291.pdf" rel="nofollow" target="_blank">“Low Bond Yields and Safe Portfolio Withdrawal Rates” by David Blanchett, CFP, CFA; Michael Finke, Ph.D., CFP, and Wade Pfau, Ph.D., CFP; Morningstar Investment Management; January 2013</a><a href="http://https://www.onefpa.org/journal/Pages/JUL15-Reduce-Retirement-Costs-with-Deferred-Income-Annuities-Purchased-before-Retirement.aspx" rel="nofollow" target="_blank">“Reduce Retirement Costs with Deferred Income Annuities Purchased before Retirement” by Michael Finke, Ph.D., CFP and Wade Pfau, Ph.D., CFP; Journal of Financial Planning; July 2015 </a><a href="https://www.advisorperspectives.com/articles/2015/11/24/why-advisors-should-use-deferred-income-annuities" rel="nofollow" target="_blank">“Why Advisors Should Use Deferred-Income Annuities” by Michael Finke, Ph.D., CFP; Advisor Perspectives; November 2015</a><a href="https://bottomlineinc.com/money/retirement-planning/retirement-income-life" rel="nofollow" target="_blank">“Retirement Income for Life; Here’s a New Way to Get It” by Michael Finke, Ph.D., CFP; Bottom-line Personal; July 2016</a><a href="https://www.dol.gov/sites/dolgov/files/ebsa/about-ebsa/about-us/erisa-advisory-council/2018-lifetime-income-solutions-as-a-qdia-finke-written-statement-08-15.pdf" rel="nofollow" target="_blank">“Lifetime Income Solutions as a Qualified Default Investment Alternative (QDIA) Focus on Decumulation and Rollover”; Written Testimony of Michael Finke, Chief Academic Officer, The American College of Financial Services; 2018 ERISA Advisory Council, August 2018 </a>Health and Cognitive Decline<a href="https://www.youtube.com/watch?v=vQVgTiTBk2E&amp;feature=youtu.be" rel="nofollow" target="_blank">“Old Age and the Decline in Financial Literacy” presented by Michael Finke at the MIT Center for Finance &amp; Policy; September 2015</a> <a href="http://hrsonline.isr.umich.edu/" rel="nofollow" target="_blank">“Health and Retirement Study”; National Institute on Aging, Social Security Administration; University of Michigan’s Institute for Social Research</a> <a href="http://https://www.lifehealth.com/managing-long-term-care-spending-risks-retirement/" rel="nofollow" target="_blank">“Managing Long-term Care Spending Risks in Retirement” by Michael Finke Ph.D., CFP and Wade Pfau Ph.D., CFP; 2017 </a> <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1948627" rel="nofollow" target="_blank">“Old Age and the Decline in Financial Literacy” by Michael Finke, Ph.D., CFP, John Howe, Sandra Huston; Management Science; August 2011</a> <a href="http://https://www.aeaweb.org/articles?id=10.1257/app.20140499" rel="nofollow" target="_blank">“Wealth Shocks and Health Outcomes: Evidence from Stock Market Fluctuations” by Hannes Schwandt; American Economic Journal; October 2018&gt;</a>Retiree Spending<a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3041761" rel="nofollow" target="_blank">“Spending, Relationship Quality, and Life Satisfaction in Retirement” by Michael Finke, Nhat Ho, Sandra J. Huston; 2018 Academic Research Colloquium for Financial Planning &amp; Related Disciplines; September 2017 </a><a href="https://www.onefpa.org/journal/Pages/FEB16-Spending-in-Retirement-Determining-the-Consumption-Gap.aspx" rel="nofollow" target="_blank">“Spending in Retirement: Determining the Consumption Gap” by Chris Browning, Ph.D., Tao Guo, Ph.D., Yuanshan Cheng, and Michael Finke, Ph.D., CFP; Journal of Financial Planning</a> <a href="https://www.morningstar.com/content/dam/marketing/shared/research/foundational/677785-EstimatingTrueCostRetirement.pdf" rel="nofollow" target="_blank">“Estimating the True Cost of Retirement” by David Blanchett, CFP, CFA; Morningstar Investment Management; 2013</a>Asset Allocation in Retirement<a href="https://www.aqr.com/Insights/Research/White-Papers/An-Old-Friend-The-Stock-Markets-Shiller-PE" rel="nofollow" target="_blank">“An Old Friend: The Stock Market's Shiller P/E” by Cliff Asness; AQR; November 2012</a> <a href="https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield" rel="nofollow" target="_blank">Daily Treasury U.S. Real Yield Curve Rates; U.S. Department of the Treasury</a> <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2324930" rel="nofollow" target="_blank">“Reducing Retirement Income Risk with a Rising Equity Glide-Path” by Wade Pfau and Michael Kitces; SSRN; September 2013 </a> <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2961481" rel="nofollow" target="_blank">“The Effect of Advanced Age and Equity Value on Risk Preferences” by David Blanchett, Michael Finke, and Michael Guillemette; Journal of Behavioral Finance; January 2018 </a> <a href="http://pages.stern.nyu.edu/~adamodar/" rel="nofollow" target="_blank">Equity risk premium data; website of professor Aswath Damodaran; Stern School of Business at New York University </a>Other <a href="https://www.onefpa.org/journal/Pages/The%20Impact%20of%20the%20Broker-Dealer%20Fiduciary%20Standard%20on%20Financial%20Advice.aspx" rel="nofollow" target="_blank">“The Impact of the Broker-Dealer Fiduciary Standard on Financial Advice” by Michael Finke, Ph.D., CFP, and Thomas P. Langdon, J.D., LL.M., CFP, CFA; Journal of Financial Planning; July 2012</a>

Michael Finke: Here’s What Makes Retirees Happy

Rob Arnott

Our guest on the podcast today is Rob Arnott. Arnott is partner and chairman of the board of Research Affiliates, a firm he established in 2002, following stints at First Quadrant and Salomon Brothers. He also runs several prominent mutual funds, including PIMCO All Asset. In addition to these duties, Arnott is an accomplished thought leader, having published more than 100 articles in professional journals. Among other plaudits for his work, he has received seven Graham and Dodd Scrolls, awarded by the CFA Institute to the top financial analyst journal articles of the year. An innovator, Arnott popularized the concept of fundamental indexation, which some refer to as smart beta.  Background Information  Rob Arnott bio  Research Affiliates website  Research Affiliates smart-beta interactive tool Research Affiliates asset-allocation interactive tool Financial Analysts Journal website  PIMCO All Asset PAAIX   "Fundamental Indexation," by Robert D. Arnott, Jason Hsu, and Philip Moore (2005, Financial Analysts Journal)  Related Links Research Affiliates Forecasts     Value strategy  High-dividend strategy Emerging-markets equity Low-volatility strategy  Research Affiliates Research  "Are Valuations Now Irrelevant?" by Rob Arnott (2019 Research Affiliates Advisor Symposium)      "If Factor Returns are Predictable, Why Is There an Investor Return Gap?" by Jason Hsu (November 2015, Research Affiliates)         "Buy High and Sell Low With Index Funds!" by Rob Arnott, Vitali Kalesnik, and Lillian Wu (June 2018, Research Affiliates)     "Too Big to Succeed," by Rob Arnott (June 2010, Research Affiliates) "The Incredible Shrinking Factor Return," by Rob Arnott, Vitali Kalesnik, and Lillian Wu (April 2017, Research Affiliates)  "How Can 'Smart Beta' Go Terribly Wrong?" by Rob Arnott, Noah Beck, Vitali Kalesnik, and John West (February 2016, Research Affiliates) "To Win With 'Smart Beta' Ask if the Price Is Right," by Rob Arnott, Noah Beck, and Vitali Kalesnik (June 2016, Research Affiliates) "Rob Arnott: 'I Want the Quant Community to Get Its Act Together," by Alex Steger (Feb. 28, 2019, Citywire)  "What Risk Matters? A Call for Papers!" by Rob Arnott (September/October 2003, Financial Analysts Journal)  "Who Is on the Other Side of the Trade?" by Jason Hsu (December 2013, Research Affiliates)  Other Research Referenced      "Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk," by William F. Sharpe (September 1964, The Journal of Finance) "Mind the Gap 2019," by Russel Kinnel (Aug. 15, 2019, Morningstar) "Alpha and the Paradox of Skill," by Michael J. Mauboussin and Dan Callahan (July 15, 2013, Credit Suisse)   About the Podcast: The Long View  is a podcast from Morningstar. Each week, hosts Christine Benz and Jeff Ptak conduct an in-depth discussion with a thought leader from the world of investing or personal finance. The podcast is produced by George Castady and Scott Halver. About the Hosts: Christine Benz and Jeff Ptak have been analysts and commentators on investments and the investment industry for many years. Christine is Morningstar's director of personal finance and senior columnist for Morningstar.com. Jeff is head of global manager research for Morningstar Research Services, overseeing Morningstar's team of 120 manager research analysts in the U.S. and overseas. To Share Feedback or a Guest Idea: Write us at TheLongView@morningstar.com (Disclaimer: This recording is for informational purposes only and should not be considered investment advice. Opinions expressed are as of the date of recording. Such opinions are subject to change. The views and opinions of guests on this program are not necessarily those of Morningstar, Inc. and its affiliates. Morningstar and its affiliates are not affiliated with this guest or his or her business affiliates unless otherwise stated. Morningstar does not guarantee the accuracy, or the completeness of the data presented herein. Jeff Ptak is an employee of Morningstar Research Services LLC. Morningstar Research Services is a subsidiary of Morningstar, Inc. and is registered with and governed by the U.S. Securities and Exchange Commission. Morningstar Research Services shall not be responsible for any trading decisions, damages or other losses resulting from or related to the information, data analysis or opinions or their use. Past performance is not a guarantee of future results. All investments are subject to investment risk, including possible loss of principal. Individuals should seriously consider if an investment is suitable for them by referencing their own financial position, investment objectives and risk profile before making any investment decisions.)

Our guest on the podcast today is Rob Arnott. Arnott is partner and chairman of the board of Research Affiliates, a firm he established in 2002, following stints at First Quadrant and Salomon Brothers. He also runs several prominent mutual funds, including PIMCO All Asset. In addition to these duties, Arnott is an accomplished thought leader, having published more than 100 articles in professional journals. Among other plaudits for his work, he has received seven Graham and Dodd Scrolls, awarded by the CFA Institute to the top financial analyst journal articles of the year. An innovator, Arnott popularized the concept of fundamental indexation, which some refer to as smart beta.  Background Information <ul> <li><a href="https://www.researchaffiliates.com/en_us/about-us/our-team/rob-arnott.html" rel="nofollow" target="_blank">Rob Arnott bio</a> </li> <li><a href="https://www.researchaffiliates.com/en_us/home.html" rel="nofollow" target="_blank">Research Affiliates website</a> </li> <li><a href="https://interactive.researchaffiliates.com/smart-beta#!/strategies" rel="nofollow" target="_blank">Research Affiliates smart-beta interactive tool</a></li> <li><a href="https://interactive.researchaffiliates.com/asset-allocation#!/?currency=USD&amp;model=ER&amp;scale=LINEAR&amp;terms=REAL" rel="nofollow" target="_blank">Research Affiliates asset-allocation interactive tool</a></li> <li><a href="https://www.cfainstitute.org/en/research/financial-analysts-journal" rel="nofollow" target="_blank">Financial Analysts Journal website</a> </li> <li>PIMCO All Asset PAAIX  </li> <li>"<a href="https://www.researchaffiliates.com/documents/FAJ_Mar_Apr_2005_Fundamental_Indexation.pdf" rel="nofollow" target="_blank">Fundamental Indexation</a>," by Robert D. Arnott, Jason Hsu, and Philip Moore (2005, Financial Analysts Journal)</li> </ul> Related Links Research Affiliates Forecasts <a> </a> <ul><a> </a> <li><a></a><a>Value strategy</a> </li> <li><a href="https://interactive.researchaffiliates.com/smart-beta#!/strategies?category=Income&amp;selected=income-high-dividend" rel="nofollow" target="_blank">High-dividend strategy</a></li> <li><a href="https://interactive.researchaffiliates.com/asset-allocation#!/?category=Multi-Country¤cy=USD&amp;model=ER&amp;scale=LINEAR&amp;selected=33&amp;terms=REAL&amp;type=Equities" rel="nofollow" target="_blank">Emerging-markets equity</a></li> <li><a>Low-volatility strategy</a></li> </ul> Research Affiliates Research <ul> <li>"<a href="https://www.researchaffiliates.com/documents/events/2019-advisor-symposium/researchaffiliates-are-valuations-irrelevant-advisor-symposium-mar-2019.pdf" rel="nofollow" target="_blank">Are Valuations Now Irrelevant?</a>" by Rob Arnott (2019 Research Affiliates Advisor Symposium) </li> <li> "<a href="https://www.researchaffiliates.com/en_us/publications/articles/488_if_factor_returns_are_predictable_why_is_there_an_investor_return_gap.html" rel="nofollow" target="_blank">If Factor Returns are Predictable, Why Is There an Investor Return Gap?</a>" by Jason Hsu (November 2015, Research Affiliates) </li> <li> "<a href="https://www.researchaffiliates.com/en_us/publications/articles/674-buy-high-and-sell-low-with-index-funds.html" rel="nofollow" target="_blank">Buy High and Sell Low With Index Funds!</a>" by Rob Arnott, Vitali Kalesnik, and Lillian Wu (June 2018, Research Affiliates) </li> <li>"<a href="https://www.researchaffiliates.com/en_us/publications/articles/f_2010_june_too_big_to_succeed.html" rel="nofollow" target="_blank">Too Big to Succeed</a>," by Rob Arnott (June 2010, Research Affiliates)</li> <li>"<a href="https://www.researchaffiliates.com/documents/604-The%20Incredible%20Shrinking%20Factor%20Return%20Unabridged.pdf" rel="nofollow" target="_blank">The Incredible Shrinking Factor Return</a>," by Rob Arnott, Vitali Kalesnik, and Lillian Wu (April 2017, Research Affiliates) </li> <li>"<a href="https://www.researchaffiliates.com/en_us/publications/articles/442_how_can_smart_beta_go_horribly_wrong.html" rel="nofollow" target="_blank">How Can 'Smart Beta' Go Terribly Wrong?</a>" by Rob Arnott, Noah Beck, Vitali Kalesnik, and John West (February 2016, Research Affiliates)</li> <li>"<a href="https://www.researchaffiliates.com/en_us/publications/articles/540_to_win_with_smart_beta_ask_if_the_price_is_right.html" rel="nofollow" target="_blank">To Win With 'Smart Beta' Ask if the Price Is Right</a>," by Rob Arnott, Noah Beck, and Vitali Kalesnik (June 2016, Research Affiliates)</li> <li>"<a href="https://citywireusa.com/professional-buyer/news/rob-arnott-i-want-the-quant-community-to-get-its-act-together/a1202187" rel="nofollow" target="_blank">Rob Arnott: 'I Want the Quant Community to Get Its Act Together</a>," by Alex Steger (Feb. 28, 2019, Citywire) </li> <li>"<a href="https://www.researchaffiliates.com/content/dam/ra/documents/FAJ_Sep_Oct_2003_What_Risk_Matters_A_Call_for_Papers.pdf" rel="nofollow" target="_blank">What Risk Matters? A Call for Papers!</a>" by Rob Arnott (September/October 2003, Financial Analysts Journal) </li> <li>"<a href="https://www.researchaffiliates.com/en_us/publications/articles/6-who-is-on-other-side.html" rel="nofollow" target="_blank">Who Is on the Other Side of the Trade?</a>" by Jason Hsu (December 2013, Research Affiliates)</li> </ul> Other Research Referenced <ul> <li> "<a href="http://efinance.org.cn/cn/fm/Capital%20Asset%20Prices%20A%20Theory%20of%20Market%20Equilibrium%20under%20Conditions%20of%20Risk.pdf" rel="nofollow" target="_blank">Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk</a>," by William F. Sharpe (September 1964, The Journal of Finance)</li> <li>"Mind the Gap 2019," by Russel Kinnel (Aug. 15, 2019, Morningstar)</li> <li>"<a href="https://research-doc.credit-suisse.com/docView?language=ENG&amp;format=PDF&amp;source_id=em&amp;document_id=805456950&amp;serialid=LsvBuE4wt3XNGE0V%2B3ec251NK9soTQqcMVQ9q2QuF2I%3D" rel="nofollow" target="_blank">Alpha and the Paradox of Skill</a>," by Michael J. Mauboussin and Dan Callahan (July 15, 2013, Credit Suisse) </li> </ul> About the Podcast: The Long View is a podcast from Morningstar. Each week, hosts Christine Benz and Jeff Ptak conduct an in-depth discussion with a thought leader from the world of investing or personal finance. The podcast is produced by George Castady and Scott Halver. About the Hosts: Christine Benz and Jeff Ptak have been analysts and commentators on investments and the investment industry for many years. Christine is Morningstar's director of personal finance and senior columnist for <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a>. Jeff is head of global manager research for Morningstar Research Services, overseeing Morningstar's team of 120 manager research analysts in the U.S. and overseas. To Share Feedback or a Guest Idea: Write us at <a href="mailto:thelongview@morningstar.com?subject=Feedback - The Long View Podcast">TheLongView@morningstar.com</a> (Disclaimer: This recording is for informational purposes only and should not be considered investment advice. Opinions expressed are as of the date of recording. Such opinions are subject to change. The views and opinions of guests on this program are not necessarily those of Morningstar, Inc. and its affiliates. Morningstar and its affiliates are not affiliated with this guest or his or her business affiliates unless otherwise stated. Morningstar does not guarantee the accuracy, or the completeness of the data presented herein. Jeff Ptak is an employee of Morningstar Research Services LLC. Morningstar Research Services is a subsidiary of Morningstar, Inc. and is registered with and governed by the U.S. Securities and Exchange Commission. Morningstar Research Services shall not be responsible for any trading decisions, damages or other losses resulting from or related to the information, data analysis or opinions or their use. Past performance is not a guarantee of future results. All investments are subject to investment risk, including possible loss of principal. Individuals should seriously consider if an investment is suitable for them by referencing their own financial position, investment objectives and risk profile before making any investment decisions.)

Rob Arnott: Don't Sleep on Value Investing (Especially Emerging-Markets Value)

John Rekenthaler

Our guest this week is John Rekenthaler. Rekenthaler is a director in Morningstar Research Services and a feature contributor to our platforms, including Morningstar.com. A lucid thinker and brilliant writer, his popular "Rekenthaler Report" column has become a must read among investors, financial advisors, fund industry participants, and beyond. Rekenthaler began his career at Morningstar in 1988 and has worn a number of hats, including leadership roles in our research and investment management divisions. Among other achievements, Rekenthaler has been a key player in developing some of Morningstar's best-known tools, including the Morningstar Rating for funds and the Morningstar Style Box. He holds a bachelor's degree in English from the University of Pennsylvania and a master's degree in business administration from the University of Chicago Graduate School of Business. BackgroundThe Rekenthaler Report Morningstar Rating for funds methodology Morningstar Style Box methodology Investor Behavior Morningstar's Mind the Gap study  Rekenthaler Report: "Mutual Funds: Where Fun Came to Die" Rekenthaler Report: "3 Reasons Index Investors Deserve Perdition (or Not)" Rekenthaler Report: "Up-Front Investment Fees Are (Almost) No More" IncentivesRekenthaler Report: "Give Performance Fees a Chance" How John InvestsRekenthaler Report: "What's in My Portfolio?" Most and Least Popular ColumnsRekenthaler Report: "Enough with Revenue Sharing!" Rekenthaler Report: "About that Rigging Claim" Flash Boys: A Wall Street Revolt, by Michael Lewis, March 2014. Compelling Academic ResearchRekenthaler Report: "Predicting Mutual Fund Returns With the Ownership Lens" "Judging Fund Managers by the Company They Keep," by Randolph Cohen, Joshua Coval, and Lubos Pastor; NBER Working Paper No. 9359, December 2002. The State of RetirementRekenthaler Report: "The Retirement Crisis That Isn't?" Teresa Ghilarducci "A Perplexing Tale About 401(k)s," by Scott Cooley; Morningstar.com, Nov. 26, 2015. Rekenthaler Report: "The British Show How to Improve 401(k)s" Best and Worst InnovationsRekenthaler Report: "Why ETFs Succeeded for Retail Investors" Rekenthaler Report: "Tactical-Allocation Funds: Even Worse Than Expected" Jack BogleRekenthaler Report: "Jack Bogle Strikes Back!" Rekenthaler Report: "Jack Bogle's (Somewhat) Accidental Legacy" Corporate Governance"Anticompetitive Effects of Common Ownership," by Jose Azar, Martin Schmalz, and Isabel Tecu; Journal of Finance, May 2018. Rekenthaler Report: "Are Index Funds Too Soft on CEOs?" Rekenthaler Report: "The Latest Salvo Against Indexing" Rekenthaler Report: "The Doctrine of Shareholder Value Has Indeed Helped Shareholders" Albert J. "Chainsaw Al" Dunlap  bio What John ReadsBerkshire Hathaway shareholder letters Joe Mansueto bio Reflections on InvestingRekenthaler Report: "My Investment Howler"

Our guest this week is John Rekenthaler. Rekenthaler is a director in Morningstar Research Services and a feature contributor to our platforms, including <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a>. A lucid thinker and brilliant writer, his popular "Rekenthaler Report" column has become a must read among investors, financial advisors, fund industry participants, and beyond. Rekenthaler began his career at Morningstar in 1988 and has worn a number of hats, including leadership roles in our research and investment management divisions. Among other achievements, Rekenthaler has been a key player in developing some of Morningstar's best-known tools, including the Morningstar Rating for funds and the Morningstar Style Box. He holds a bachelor's degree in English from the University of Pennsylvania and a master's degree in business administration from the University of Chicago Graduate School of Business. Background <a href="https://www.morningstar.com/authors/208/john-rekenthaler" rel="nofollow" target="_blank">The Rekenthaler Report</a> <a href="https://www.morningstar.com/content/dam/marketing/shared/research/methodology/771945_Morningstar_Rating_for_Funds_Methodology.pdf" rel="nofollow" target="_blank">Morningstar Rating for funds methodology</a> <a href="https://www.morningstar.com/content/dam/marketing/shared/research/methodology/678263-StyleBoxMethodolgy.pdf" rel="nofollow" target="_blank">Morningstar Style Box methodology</a> Investor Behavior Morningstar's Mind the Gap study Rekenthaler Report: "Mutual Funds: Where Fun Came to Die" Rekenthaler Report: "3 Reasons Index Investors Deserve Perdition (or Not)" Rekenthaler Report: "Up-Front Investment Fees Are (Almost) No More" Incentives Rekenthaler Report: "Give Performance Fees a Chance" How John Invests Rekenthaler Report: "What's in My Portfolio?" Most and Least Popular Columns Rekenthaler Report: "Enough with Revenue Sharing!" Rekenthaler Report: "About that Rigging Claim" <a href="Up-Front Investment Fees Are Almost No More" rel="nofollow" target="_blank"></a><a href="https://www.amazon.com/Flash-Boys-Wall-Street-Revolt/dp/0393244660" rel="nofollow" target="_blank">Flash Boys: A Wall Street Revolt</a>, by Michael Lewis, March 2014. Compelling Academic Research Rekenthaler Report: "Predicting Mutual Fund Returns With the Ownership Lens" <a href="https://faculty.chicagobooth.edu/lubos.pastor/research/judging5.pdf" rel="nofollow" target="_blank">"Judging Fund Managers by the Company They Keep</a>," by Randolph Cohen, Joshua Coval, and Lubos Pastor; NBER Working Paper No. 9359, December 2002. The State of Retirement Rekenthaler Report: "The Retirement Crisis That Isn't?" <a href="http://teresaghilarducci.org/" rel="nofollow" target="_blank">Teresa Ghilarducci</a> "A Perplexing Tale About 401(k)s," by Scott Cooley; <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a>, Nov. 26, 2015. Rekenthaler Report: "The British Show How to Improve 401(k)s" Best and Worst Innovations Rekenthaler Report: "Why ETFs Succeeded for Retail Investors" Rekenthaler Report: "Tactical-Allocation Funds: Even Worse Than Expected" Jack Bogle Rekenthaler Report: "Jack Bogle Strikes Back!" Rekenthaler Report: "Jack Bogle's (Somewhat) Accidental Legacy" Corporate Governance "<a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2427345" rel="nofollow" target="_blank">Anticompetitive Effects of Common Ownership</a>," by Jose Azar, Martin Schmalz, and Isabel Tecu; Journal of Finance, May 2018. Rekenthaler Report: "Are Index Funds Too Soft on CEOs?" Rekenthaler Report: "The Latest Salvo Against Indexing" Rekenthaler Report: "The Doctrine of Shareholder Value Has Indeed Helped Shareholders" <a href="https://en.wikipedia.org/wiki/Albert_J._Dunlap" rel="nofollow" target="_blank">Albert J. "Chainsaw Al" Dunlap  bio</a> What John Reads <a href="https://www.berkshirehathaway.com/letters/letters.html" rel="nofollow" target="_blank">Berkshire Hathaway shareholder letters</a> <a href="https://www.morningstar.com/company/about-us/joe" rel="nofollow" target="_blank">Joe Mansueto bio</a> Reflections on Investing Rekenthaler Report: "My Investment Howler"

John Rekenthaler: Fund Manager Financial Incentives Are Irrelevant

Rick Ferri

Our guest today on The Long View podcast is Rick Ferri. Ferri is an hourly fee-only investment consultant at Ferri Investment Solutions; he's also a CFA charterholder. Prior to starting his new firm in April 2019, he was the founder and head of investing at a $1.5 billion advisory firm that specialized in low-fee asset management using index funds and exchange-traded funds. Prior to that, he worked for a brokerage firm, where he was an early adopter of inexpensive index products for client portfolios. Ferri is a Marine Corps officer and retired fighter pilot.  Ferri has written several books on low-fee investing, including All About Asset Allocation, The ETF Book, All About Index Funds, and The Power of Passive Investing. He has also authored numerous investment-related articles and research papers, including a research paper on index investing that won S&amp;P Dow Jones Indices' third-annual SPIVA Award. 	 Introduction and Background  Rick Ferri's bio  Ferri's philosophy  Ferri Investment Solutions  Ferri's books Ferri's Forbes column "Bogleheads on Investing" podcast hosted by Rick Ferri "Ferri: 3 Keys to a Successful Investment Strategy," Morningstar.com video  "The conversation about asset allocation comes later, and the conversation about investments comes after that." Ferri discusses how his definition of value-add has changed over the past 10-15 years. (0:55-3:24) "I've been through the whole gantlet." Transitioning from broker to Registered Investment Advisor. (3:25-5:14) On clients who have needs that go beyond investment management. (5:15-5:56) "You get the work done, you pay for the work." Why Ferri's new advisory practice charges clients by the hour, not by their assets under management. (5:57-9:44)  "Rick Ferri, Back in Business, Drops Bomb on AUM Model," ThinkAdvisor article "Move Over 1% Advisor Fee: Change Is Here," Ferri's blog post on Forbes   "Advisors talk about how they add value behaviorally; I think a lot of that is created by the advisor and not so much by the client." The role of advisors in managing client behavior. (9:45-11:12) Asset Allocation  "Ferri: 3-Fund Portfolio the Simplest Way to Best Return," Morningstar.com video Ferri's Core-4 Portfolios   "There are no average investors." How investors of the same age can vary widely in their appetite for equity risk. (11:13-15:03) "Those are the things that are going to add value to a client's portfolio." Focusing on keeping taxes and investment costs down, not trying to play factors. (15:03-18:21)  "There seem to be a lot of factor renters, rather than factor owners." Ferri is skeptical that factor investing will outperform in the future. (18:23-20:44)  Factor investing defined Dr. Wesley Gray interview on factor investing, "Bogleheads on Investing" podcast    "I don't use anything that doesn't have an expected real return." Why Ferri sticks with plain-vanilla asset classes. (20:45-21:56) How to go about making return assumptions for the major asset classes. (21:57-24:14) "It depends on how much money the client has." A total bond market index as a one-stop option for fixed-income exposure. (24:15-27:20) International bonds as a core asset class. (27:21-28:46)   "Global Fixed Income: Considerations for U.S. Investors," Vanguard research paper "Six Advisors on Investing in International Bonds," OregonLive article  "I don't think they're pivotal." REITs as a direct allocation.  (28:47-31:45)  "REITs and Your Portfolio," Ferri's Forbes blog post  Decumulation   "The software doesn't seem to be very good at this." Decumulation is inherently more complicated and customized than accumulation. (31:46-34:19) "There seem to be better ways of doing it than the classic way in which we've been taught." On whether the traditional declining equity glide path makes sense. (34:20-39:28) Indexing and the Legacy of Jack Bogle "It's been around forever." Direct indexing: the wave of the future? (39:29-42:09)  "Could Direct Indexing Help Your Portfolio?" Forbes blog post by Simon Moore  "I don't see it as big of a threat as other people do." Should investors be worried about concentration in very few ETFs, and do index funds and ETFs own too much of the market? (42:10-44:07) "I was having a real moral dilemma." How influential Jack Bogle was in shaping Ferri's career path. (44:08-46:08)  "The Worth of a Man: A Tribute to John C. Bogle," Forbes blog post Ferri's interview with Bogle, "Bogleheads on Investing" podcast "Vanguard Founder Jack Bogle Passes Away," Morningstar.com article 

Our guest today on The Long View podcast is Rick Ferri. Ferri is an hourly fee-only investment consultant at Ferri Investment Solutions; he's also a CFA charterholder. Prior to starting his new firm in April 2019, he was the founder and head of investing at a $1.5 billion advisory firm that specialized in low-fee asset management using index funds and exchange-traded funds. Prior to that, he worked for a brokerage firm, where he was an early adopter of inexpensive index products for client portfolios. Ferri is a Marine Corps officer and retired fighter pilot. Ferri has written several books on low-fee investing, including All About Asset Allocation, The ETF Book, All About Index Funds, and The Power of Passive Investing. He has also authored numerous investment-related articles and research papers, including a research paper on index investing that won S&amp;P Dow Jones Indices' third-annual SPIVA Award. 	 Introduction and Background <ul> <li><a href="https://rickferri.com/about-rick/" rel="nofollow" target="_blank">Rick Ferri's bio</a> </li> <li><a href="https://rickferri.com/investment-philosophy/" rel="nofollow" target="_blank">Ferri's philosophy</a> </li> <li><a href="https://rickferri.com/investors/" rel="nofollow" target="_blank">Ferri Investment Solutions</a> </li> <li><a href="https://www.amazon.com/rick-ferri-Books/s?k=rick+ferri&amp;rh=n%3A283155" rel="nofollow" target="_blank">Ferri's books</a></li> <li><a href="https://www.forbes.com/sites/rickferri/#3b479e585413" rel="nofollow" target="_blank">Ferri's Forbes column</a></li> <li>"<a href="https://rickferri.com/podcast/bogleheads/" rel="nofollow" target="_blank">Bogleheads on Investing</a>" podcast hosted by Rick Ferri</li> <li>"<a href="https://www.morningstar.com/videos/575446/ferri-3-keys-to-a-successful-investment-strategy.html" rel="nofollow" target="_blank">Ferri: 3 Keys to a Successful Investment Strategy</a>," <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a> video</li> </ul> "The conversation about asset allocation comes later, and the conversation about investments comes after that." Ferri discusses how his definition of value-add has changed over the past 10-15 years. (0:55-3:24) "I've been through the whole gantlet." Transitioning from broker to Registered Investment Advisor. (3:25-5:14) On clients who have needs that go beyond investment management. (5:15-5:56) "You get the work done, you pay for the work." Why Ferri's new advisory practice charges clients by the hour, not by their assets under management. (5:57-9:44) <ul> <li>"<a href="https://www.thinkadvisor.com/2019/04/12/rick-ferri-is-back-in-business-challenging-the-aum-fee-model/" rel="nofollow" target="_blank">Rick Ferri, Back in Business, Drops Bomb on AUM Model</a>," ThinkAdvisor article</li> <li>"<a href="https://www.forbes.com/sites/rickferri/2019/03/28/move-over-1-percent-adviser-fee-change-is-here/#a8e5a8d755ef" rel="nofollow" target="_blank">Move Over 1% Advisor Fee: Change Is Here</a>," Ferri's blog post on Forbes </li> </ul> "Advisors talk about how they add value behaviorally; I think a lot of that is created by the advisor and not so much by the client." The role of advisors in managing client behavior. (9:45-11:12) Asset Allocation <ul> <li>"<a href="https://www.morningstar.com/videos/615577/ferri-3fund-portfolio-the-simplest-way-to-best-ret.html" rel="nofollow" target="_blank">Ferri: 3-Fund Portfolio the Simplest Way to Best Return</a>," <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a> video</li> <li><a href="https://core-4.com/" rel="nofollow" target="_blank">Ferri's Core-4 Portfolios</a> </li> </ul> "There are no average investors." How investors of the same age can vary widely in their appetite for equity risk. (11:13-15:03) "Those are the things that are going to add value to a client's portfolio." Focusing on keeping taxes and investment costs down, not trying to play factors. (15:03-18:21)  "There seem to be a lot of factor renters, rather than factor owners." Ferri is skeptical that factor investing will outperform in the future. (18:23-20:44) <ul> <li><a href="https://www.investopedia.com/terms/f/factor-investing.asp" rel="nofollow" target="_blank">Factor investing defined</a></li> <li><a href="https://rickferri.com/podcast/episode-009-bogleheads-on-investing-guest-dr-wesley-gray-host-rick-ferri/" rel="nofollow" target="_blank">Dr. Wesley Gray interview on factor investing</a>, "Bogleheads on Investing" podcast </li> </ul>  "I don't use anything that doesn't have an expected real return." Why Ferri sticks with plain-vanilla asset classes. (20:45-21:56) How to go about making return assumptions for the major asset classes. (21:57-24:14) "It depends on how much money the client has." A total bond market index as a one-stop option for fixed-income exposure. (24:15-27:20) International bonds as a core asset class. (27:21-28:46)  <ul> <li>"<a href="https://personal.vanguard.com/pdf/icrifi.pdf" rel="nofollow" target="_blank">Global Fixed Income: Considerations for U.S. Investors</a>," Vanguard research paper</li> <li>"<a href="https://www.oregonlive.com/finance/2013/06/five_advisers_on_whether_to_in.html" rel="nofollow" target="_blank">Six Advisors on Investing in International Bonds</a>," OregonLive article</li> </ul> "I don't think they're pivotal." REITs as a direct allocation.  (28:47-31:45) <ul> <li>"<a href="https://www.forbes.com/sites/rickferri/2014/01/07/reits-and-your-portfolio/#47e29c7b71ac" rel="nofollow" target="_blank">REITs and Your Portfolio</a>," Ferri's Forbes blog post</li> </ul> Decumulation  "The software doesn't seem to be very good at this." Decumulation is inherently more complicated and customized than accumulation. (31:46-34:19) "There seem to be better ways of doing it than the classic way in which we've been taught." On whether the traditional declining equity glide path makes sense. (34:20-39:28) Indexing and the Legacy of Jack Bogle "It's been around forever." Direct indexing: the wave of the future? (39:29-42:09) <ul> <li>"<a href="https://www.forbes.com/sites/simonmoore/2019/04/28/what-is-direct-indexing/#6ab66bb7efa9" rel="nofollow" target="_blank">Could Direct Indexing Help Your Portfolio?</a>" Forbes blog post by Simon Moore</li> </ul> "I don't see it as big of a threat as other people do." Should investors be worried about concentration in very few ETFs, and do index funds and ETFs own too much of the market? (42:10-44:07) "I was having a real moral dilemma." How influential Jack Bogle was in shaping Ferri's career path. (44:08-46:08) <ul> <li>"<a href="https://www.forbes.com/sites/rickferri/2019/01/16/the-worth-of-a-man-a-tribute-to-john-c-bogle/#3948b3126451" rel="nofollow" target="_blank">The Worth of a Man: A Tribute to John C. Bogle</a>," Forbes blog post</li> <li><a href="https://rickferri.com/podcast/bogleheads/" rel="nofollow" target="_blank">Ferri's interview with Bogle</a>, "Bogleheads on Investing" podcast</li> <li>"Vanguard Founder Jack Bogle Passes Away," <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a> article</li> </ul>

Rick Ferri: 'There Are No Average Investors'

David Blanchett

Our guest this week is David Blanchett, head of retirement research for Morningstar Investment Management. In his role at Morningstar, Blanchett works to enhance the Investment Management group's consulting and investment services and conducts research primarily in the areas of financial planning, tax planning, annuities, and retirement. He's also adjunct professor of wealth management at The American College of Financial Services.Blanchett's research has been published in a variety of academic and industry journals, such as the Financial Analysts Journal, the Journal of Financial Planning, The Journal of Portfolio Management, The Journal of Retirement, and The Journal of Wealth Management. His research won the Journal of Financial Planning's 2007 Financial Frontiers Award, the Retirement Income Industry Association's 2012 Thought Leadership Award, the Journal of Financial Planning's 2014 and 2015 Montgomery-Warschauer Awards, and the Financial Analysts Journal's 2015 Graham &amp; Dodd Scroll Award.BackgroundDavid Blanchett's bioDavid Blanchett's research archiveQuantifying the Value of AdviceAlpha, Beta, and Now ... GammaThe Value of a Gamma-Efficient PortfolioVanguard Advisor's AlphaCapital Sigma: The Advisor AdvantageReducing Wealth Volatility: The Value of Financial Advice as Measured by ZetaRetirementAnnuities are Likely Coming to Your 401(k). Should You Use Them?A Safe Harbor for Annuities Could Help Retirement SaversSave More Today: Improving Retirement Savings Rates With Carrots, Advice, and NudgesNudge, by Richard Thaler and Cass SunsteinBehavioral Nudges for Goals-Based Financial PlanningYou Can't Fix What You Can't Measure, Aron Szapiro on The Long View podcastI Don't Think the System Needs Nudges. I Think the System Needs Dynamite, William Bernstein on The Long View podcastMan Bites Dog! Congress Is Writing Retirement Legislation!Retiree Survey: Nearly All Say They Are Happy Though Many Are Financially InsecureEstimating the True Cost of RetirementExploring the Retirement Consumption Puzzle75 Must-Know Statistics About Long-Term Care: 2018 EditionThe 4% Rule Is Not Safe in a Low-Yield WorldSimple Formulas to Implement Complex Withdrawal StrategiesReducing Retirement Risk With a Rising Equity Glide-PathRevisiting the Optimal Distribution Glide PathAnnuitized Income and Optimal Asset AllocationShould Annuities Be Purchased From Tax-Sheltered Assets?The Home as a Risky AssetCareful With That Company StockAbout the Podcast: The Long View is a podcast from Morningstar. Each week, hosts Christine Benz and Jeff Ptak conduct an in-depth discussion with a thought leader from the world of investing or personal finance. The podcast is produced by George Castady and Scott Halver.About the Hosts: Christine Benz and Jeff Ptak have been analysts and commentators on investments and the investment industry for many years. Christine is Morningstar's director of personal finance and senior columnist for Morningstar.com. Jeff is head of global manager research for Morningstar Research Services, overseeing Morningstar's team of 120 manager research analysts in the U.S. and overseas.To Share Feedback or a Guest Idea: Write us at TheLongView@morningstar.com(Disclaimer: This recording is for informational purposes only and should not be considered investment advice. Opinions expressed are as of the date of recording. Such opinions are subject to change. The views and opinions of guests on this program are not necessarily those of Morningstar, Inc. and its affiliates. Morningstar and its affiliates are not affiliated with this guest or his or her business affiliates unless otherwise stated. Morningstar does not guarantee the accuracy, or the completeness of the data presented herein. Jeff Ptak is an employee of Morningstar Research Services LLC. Morningstar Research Services is a subsidiary of Morningstar, Inc. and is registered with and governed by the U.S. Securities and Exchange Commission. Morningstar Research Services shall not be responsible for any trading decisions, damages or other losses resulting from or related to the information, data analysis or opinions or their use. Past performance is not a guarantee of future results. All investments are subject to investment risk, including possible loss of principal. Individuals should seriously consider if an investment is suitable for them by referencing their own financial position, investment objectives and risk profile before making any investment decisions.)

Our guest this week is David Blanchett, head of retirement research for Morningstar Investment Management. In his role at Morningstar, Blanchett works to enhance the Investment Management group's consulting and investment services and conducts research primarily in the areas of financial planning, tax planning, annuities, and retirement. He's also adjunct professor of wealth management at The American College of Financial Services.Blanchett's research has been published in a variety of academic and industry journals, such as the Financial Analysts Journal, the Journal of Financial Planning, The Journal of Portfolio Management, The Journal of Retirement, and The Journal of Wealth Management. His research won the Journal of Financial Planning's 2007 Financial Frontiers Award, the Retirement Income Industry Association's 2012 Thought Leadership Award, the Journal of Financial Planning's 2014 and 2015 Montgomery-Warschauer Awards, and the Financial Analysts Journal's 2015 Graham &amp; Dodd Scroll Award.Background <a href="http://www.davidmblanchett.com/professional" rel="nofollow" target="_blank">David Blanchett's bio</a><a href="http://www.davidmblanchett.com/research" rel="nofollow" target="_blank">David Blanchett's research archive</a>Quantifying the Value of Advice <a href="https://jor.pm-research.com/content/1/2/29.abstract" rel="nofollow" target="_blank">Alpha, Beta, and Now ... Gamma</a><a href="https://www.morningstar.com/content/dam/marketing/shared/research/foundational/831611-GammaEfficientPortfolio.pdf" rel="nofollow" target="_blank">The Value of a Gamma-Efficient Portfolio</a><a href="https://personal.vanguard.com/pdf/ISGAA.pdf" rel="nofollow" target="_blank">Vanguard Advisor's Alpha</a><a href="https://www.investpmc.com/insights/white-papers/capital-sigma-advisor-advantage" rel="nofollow" target="_blank">Capital Sigma: The Advisor Advantage</a><a href="https://www.onefpa.org/journal/Pages/AUG14-Reducing-Wealth-Volatility-The-Value-of-Financial-Advice-as-Measured-by-Zeta.aspx" rel="nofollow" target="_blank">Reducing Wealth Volatility: The Value of Financial Advice as Measured by Zeta</a>Retirement <a href="https://blogs.wsj.com/experts/2019/04/22/annuities-are-likely-coming-to-your-401k-should-you-use-them/" rel="nofollow" target="_blank">Annuities are Likely Coming to Your 401(k). Should You Use Them?</a><a href="https://www.morningstar.com/blog/2018/10/18/safe-harbor-annuity.html?%20utm_source=mstarcom_content&amp;utm_medium=referral&amp;utm_content=article" rel="nofollow" target="_blank">A Safe Harbor for Annuities Could Help Retirement Savers</a><a href="https://jor.pm-research.com/content/5/1/69" rel="nofollow" target="_blank">Save More Today: Improving Retirement Savings Rates With Carrots, Advice, and Nudges</a><a href="https://en.m.wikipedia.org/wiki/Nudge_(book)" rel="nofollow" target="_blank">Nudge</a>, by Richard Thaler and Cass Sunstein<a href="https://www.morningstar.com/blog/2018/12/12/goals-based-planning.html?%20utm_source=mstarcom_content&amp;utm_medium=referral&amp;utm_content=article" rel="nofollow" target="_blank">Behavioral Nudges for Goals-Based Financial Planning</a><a href="https://www.morningstar.com/articles/932976/szapiro-you-cant-fix-what-you-cant-measure" rel="nofollow" target="_blank">You Can't Fix What You Can't Measure</a>, Aron Szapiro on The Long View podcast<a href="https://www.morningstar.com/articles/927414/bernstein-i-dont-think-the-system-needs-nudges-i-think-the-system-needs-dynamite" rel="nofollow" target="_blank">I Don't Think the System Needs Nudges. I Think the System Needs Dynamite</a>, William Bernstein on The Long View podcast<a href="https://www.morningstar.com/articles/922196/man-bites-dog-congress-is-writing-retirement-legislation" rel="nofollow" target="_blank">Man Bites Dog! Congress Is Writing Retirement Legislation!</a><a href="https://www.forbes.com/search/?q=Retiree%20Survey:%20Nearly%20All%20Say%20They%20Are%20Happy%20Though%20Many%20Are%20Financially%20Insecure#5d65496b279f" rel="nofollow" target="_blank">Retiree Survey: Nearly All Say They Are Happy Though Many Are Financially Insecure</a><a href="https://www.morningstar.com/content/dam/marketing/shared/research/foundational/677785-EstimatingTrueCostRetirement.pdf" rel="nofollow" target="_blank">Estimating the True Cost of Retirement</a><a href="https://www.onefpa.org/journal/Pages/MAY14-Exploring-the-Retirement-Consumption-Puzzle-.aspx" rel="nofollow" target="_blank">Exploring the Retirement Consumption Puzzle</a><a href="https://www.morningstar.com/articles/879494/75-must-know-statistics-about-long-term-care-2018-edition" rel="nofollow" target="_blank">75 Must-Know Statistics About Long-Term Care: 2018 Edition</a><a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2201323" rel="nofollow" target="_blank">The 4% Rule Is Not Safe in a Low-Yield World</a><a href="https://www.onefpa.org/journal/Pages/Simple%20Formulas%20to%20Implement%20Complex%20Withdrawal%20Strategies.aspx" rel="nofollow" target="_blank">Simple Formulas to Implement Complex Withdrawal Strategies</a><a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2324930" rel="nofollow" target="_blank">Reducing Retirement Risk With a Rising Equity Glide-Path</a><a href="https://www.onefpa.org/journal/Pages/FEB15-Revisiting-the-Optimal-Distribution-Glide-Path.aspx" rel="nofollow" target="_blank">Revisiting the Optimal Distribution Glide Path</a><a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3041717" rel="nofollow" target="_blank">Annuitized Income and Optimal Asset Allocation</a><a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3431206" rel="nofollow" target="_blank">Should Annuities Be Purchased From Tax-Sheltered Assets?</a><a href="https://www.englishforum.ch/attachments/housing-general/126675d1498605699-parametric-analysis-rent-v-buy-home-risky-asset.pdf" rel="nofollow" target="_blank">The Home as a Risky Asset</a><a href="https://www.morningstar.com/articles/567741/careful-with-that-company-stock" rel="nofollow" target="_blank">Careful With That Company Stock</a>About the Podcast: <a href="https://www.morningstar.com/podcasts/the-long-view" rel="nofollow" target="_blank">The Long View</a> is a podcast from Morningstar. Each week, hosts Christine Benz and Jeff Ptak conduct an in-depth discussion with a thought leader from the world of investing or personal finance. The podcast is produced by George Castady and Scott Halver.About the Hosts: Christine Benz and Jeff Ptak have been analysts and commentators on investments and the investment industry for many years. Christine is Morningstar's director of personal finance and senior columnist for <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a>. Jeff is head of global manager research for Morningstar Research Services, overseeing Morningstar's team of 120 manager research analysts in the U.S. and overseas.To Share Feedback or a Guest Idea: Write us at <a href="mailto:thelongview@morningstar.com?subject=Feedback%20-%20The%20Long%20View%20Podcast">TheLongView@morningstar.com</a>(Disclaimer: This recording is for informational purposes only and should not be considered investment advice. Opinions expressed are as of the date of recording. Such opinions are subject to change. The views and opinions of guests on this program are not necessarily those of Morningstar, Inc. and its affiliates. Morningstar and its affiliates are not affiliated with this guest or his or her business affiliates unless otherwise stated. Morningstar does not guarantee the accuracy, or the completeness of the data presented herein. Jeff Ptak is an employee of Morningstar Research Services LLC. Morningstar Research Services is a subsidiary of Morningstar, Inc. and is registered with and governed by the U.S. Securities and Exchange Commission. Morningstar Research Services shall not be responsible for any trading decisions, damages or other losses resulting from or related to the information, data analysis or opinions or their use. Past performance is not a guarantee of future results. All investments are subject to investment risk, including possible loss of principal. Individuals should seriously consider if an investment is suitable for them by referencing their own financial position, investment objectives and risk profile before making any investment decisions.)

David Blanchett: If You're Retiring Now, You're in a Pretty Rough Spot

Gus Sauter

BackgroundGus Sauter bio    Gus Sauter retirement announcement   Fast Facts About Vanguard    Council on University of Chicago Booth School of Business Jack Bogle bio https://en.wikipedia.org/wiki/John_C._Bogle Jack Brennan bio  Search for Alpha “Alpha and the Paradox of Skill” by Michael J. Mauboussin and Dan Callahan. Credit Suisse, July 15, 2013.    Growth, and Limits, of IndexingCharles Ellis bio    Charles Ellis books    Burton Malkiel bio    Burton Malkiel books    Indexing and Price Discovery“Setting the Record Straight: Truths About Indexing” by James J. Rowley, Joshua M. Hirt, and Haifeng Wang. The Vanguard Group, January 2018.   Indexing and Corporate Governance“Vanguard CEO Jack Brennan Makes His Demands Heard” by Aaron Lucchetti. The Wall Street Journal, February 2003.   Private Markets and AlternativesDavid Swensen bio  David Swensen books    The Case for IndexingWilliam Sharpe bio “The Arithmetic of Active Management” by William Sharpe; The Financial Analysts Journal, Volume 47, No. 1; January/February 1991.   Innovation“Nudge: Improving Decisions About Health, Wealth, and Happiness” by Richard Thaler and Cass Sunstein, February 2009. 

Background <a href="https://www.bogleheads.org/wiki/George_Upham_Sauter" rel="nofollow" target="_blank">Gus Sauter bio</a> <a href="https://pressroom.vanguard.com/news/cio_guss_sauter_announces_retirement.html" rel="nofollow" target="_blank">Gus Sauter retirement announcement</a> <a href="https://about.vanguard.com/who-we-are/fast-facts/" rel="nofollow" target="_blank">Fast Facts About Vanguard</a> <a href="https://www.chicagobooth.edu/about/leadership/council" rel="nofollow" target="_blank">Council on University of Chicago Booth School of Business</a> Jack Bogle bio <a href="https://en.wikipedia.org/wiki/John_C._Bogle" rel="nofollow" target="_blank">https://en.wikipedia.org/wiki/John_C._Bogle</a> <a href="https://en.wikipedia.org/wiki/John_J._Brennan_(businessman)" rel="nofollow" target="_blank">Jack Brennan bio</a> Search for Alpha  <a href="https://research-doc.credit-suisse.com/docView?language=ENG&amp;format=PDF&amp;source_id=em&amp;document_id=805456950&amp;serialid=LsvBuE4wt3XNGE0V%2B3ec251NK9soTQqcMVQ9q2QuF2I%3D" rel="nofollow" target="_blank">“Alpha and the Paradox of Skill” by Michael J. Mauboussin and Dan Callahan. Credit Suisse, July 15, 2013.</a> Growth, and Limits, of Indexing <a href="https://en.wikipedia.org/wiki/Charles_D._Ellis" rel="nofollow" target="_blank">Charles Ellis bio</a> <a href="https://www.amazon.com/Charles-D-Ellis/e/B000APHL7A?ref=sr_ntt_srch_lnk_1&amp;qid=1574652337&amp;sr=1-1" rel="nofollow" target="_blank">Charles Ellis books</a> <a href="https://dof.princeton.edu/about/clerk-faculty/emeritus/burton-gordon-malkiel" rel="nofollow" target="_blank">Burton Malkiel bio</a> <a href="https://www.amazon.com/Burton-G-Malkiel/e/B000APY0PG?ref=sr_ntt_srch_lnk_1&amp;qid=1574652364&amp;sr=1-1" rel="nofollow" target="_blank">Burton Malkiel books</a> Indexing and Price Discovery <a href="https://personal.vanguard.com/pdf/ISGBEL.pdf" rel="nofollow" target="_blank">“Setting the Record Straight: Truths About Indexing” by James J. Rowley, Joshua M. Hirt, and Haifeng Wang. The Vanguard Group, January 2018</a>. Indexing and Corporate Governance <a href="https://www.wsj.com/articles/SB1044486263746207213" rel="nofollow" target="_blank">“Vanguard CEO Jack Brennan Makes His Demands Heard” by Aaron Lucchetti. The Wall Street Journal, February 2003.</a> Private Markets and Alternatives <a href="https://www.yale.edu/about-yale/leadership-organization/david-swensen" rel="nofollow" target="_blank">David Swensen bio</a> <a href="https://www.amazon.com/David-F.-Swensen/e/B001H6NC42%3Fref=dbs_a_mng_rwt_scns_share" rel="nofollow" target="_blank">David Swensen books</a> The Case for Indexing <a href="https://web.stanford.edu/~wfsharpe/bio/bio.htm" rel="nofollow" target="_blank">William Sharpe bio</a> <a href="https://web.stanford.edu/~wfsharpe/art/active/active.htm" rel="nofollow" target="_blank">“The Arithmetic of Active Management” by William Sharpe; The Financial Analysts Journal, Volume 47, No. 1; January/February 1991.</a> Innovation <a href="https://www.amazon.com/Nudge-Improving-Decisions-Health-Happiness/dp/014311526X" rel="nofollow" target="_blank">“Nudge: Improving Decisions About Health, Wealth, and Happiness” by Richard Thaler and Cass Sunstein, February 2009.</a>

Gus Sauter: Efficient Markets Are a Good Thing

Meir Statman

Our guest in the podcast today is Meir Statman, the Glenn Klimek Professor of Finance at Santa Clara University and a specialist in behavioral finance. Meir's research focuses on how investors and managers make financial decisions and how these decisions are reflected in financial markets. His work has been published in The Journal of Finance, The Financial Analysts Journal, The Journal of Portfolio Management, and many other publications. Meir has also received numerous awards for his research, including three Graham and Dodd Awards and the Matthew R. McArthur Industry Pioneer Award. His latest book, Finance For Normal People, was just released in paperback.BackgroundMeir Statman bioFinance for Normal People by Meir Statman, Oxford University Press, 2017 What Investors Really Want: Know What Drives Investor Behavior and Make Smarter Financial Decisions by Meir Statman,McGraw-Hill Education, 2010.  Investor Behavior“The Expressive Nature of Socially Responsible Investors” by Meir Statman, January 2008. “Money Flowed to the Cheapest Funds in the Third Quarter” by Tom Lauricella and Gabriel Dibenedetto, Morningstar.com, Oct. 2019. “Morningstar Fund Flows Commentary” by Morningstar, August 2019. Retirement HappinessFIRE movement “Michael Finke: Here’s What Makes Retirees Happy” by Morningstar, The Long View podcast, episode 23, October 2019. “To Compete with Robos, Advisors Must Become Financial Physicians” by Lauren Foster, CFA Institute blog, April 2017. Retirement Spending“Carolyn McClanahan: There’s More to Money Than Just the Numbers” by Morningstar, The Long View podcast, episode 5, June 2019. “The Mental Mistakes We Make with Retirement Spending” by Meir Statman, Wall Street Journal, April 2017. “The Bucket Approach to Retirement Allocation” by Christine Benz, Morningstar.com, February 2019.

Our guest in the podcast today is Meir Statman, the Glenn Klimek Professor of Finance at Santa Clara University and a specialist in behavioral finance. Meir's research focuses on how investors and managers make financial decisions and how these decisions are reflected in financial markets. His work has been published in The Journal of Finance, The Financial Analysts Journal, The Journal of Portfolio Management, and many other publications. Meir has also received numerous awards for his research, including three Graham and Dodd Awards and the Matthew R. McArthur Industry Pioneer Award. His latest book, Finance For Normal People, was just released in paperback.Background <a href=" https://www.scu.edu/business/finance/faculty/statman/" rel="nofollow" target="_blank">Meir Statman bio</a><a href="https://www.amazon.com/Finance-Normal-People-Investors-Markets/dp/019062647X" rel="nofollow" target="_blank">Finance for Normal People</a> by Meir Statman, Oxford University Press, 2017 <a href="https://www.amazon.com/What-Investors-Really-Want-Financial/dp/0071741658" rel="nofollow" target="_blank">What Investors Really Want: Know What Drives Investor Behavior and Make Smarter Financial Decisions</a> by Meir Statman,McGraw-Hill Education, 2010.   Investor Behavior “<a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1094068" rel="nofollow" target="_blank">The Expressive Nature of Socially Responsible Investors</a>” by Meir Statman, January 2008. “<a href="https://www.morningstar.com/articles/949842/money-flowed-to-the-cheapest-funds-in-the-third-quarter" rel="nofollow" target="_blank">Money Flowed to the Cheapest Funds in the Third Quarter</a>” by Tom Lauricella and Gabriel Dibenedetto, <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a>, Oct. 2019. “<a href="https://www.morningstar.com/lp/fund-flows-direct?con=19262?utm_source=mstarcom_content&amp;utm_medium=referral&amp;utm_content=article" rel="nofollow" target="_blank">Morningstar Fund Flows Commentary</a>” by Morningstar, August 2019.  Retirement Happiness <a href="https://en.wikipedia.org/wiki/FIRE_movement" rel="nofollow" target="_blank">FIRE movement</a> “<a href="https://www.morningstar.com/podcasts/the-long-view/23" rel="nofollow" target="_blank">Michael Finke: Here’s What Makes Retirees Happy</a>” by Morningstar, The Long View podcast, episode 23, October 2019. “<a href="https://blogs.cfainstitute.org/investor/2017/04/13/to-compete-with-robos-advisers-must-become-financial-physicians/" rel="nofollow" target="_blank">To Compete with Robos, Advisors Must Become Financial Physicians</a>” by Lauren Foster, CFA Institute blog, April 2017.  Retirement Spending “<a href="https://www.morningstar.com/articles/931521/mcclanahan-theres-more-to-money-than-just-the-numbers" rel="nofollow" target="_blank">Carolyn McClanahan: There’s More to Money Than Just the Numbers</a>” by Morningstar, The Long View podcast, episode 5, June 2019. “<a href="https://www.wsj.com/articles/the-mental-mistakes-we-make-with-retirement-spending-1492999921" rel="nofollow" target="_blank">The Mental Mistakes We Make with Retirement Spending</a>” by Meir Statman, Wall Street Journal, April 2017. “<a href="https://www.morningstar.com/articles/840177/the-bucket-approach-to-retirement-allocation" rel="nofollow" target="_blank">The Bucket Approach to Retirement Allocation</a>” by Christine Benz, <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a>, February 2019.

Meir Statman: 'We Are All Normal'

James Montier

Our guest on this week's installment of "The Long View" podcast is James Montier. Montier is a member of the asset-allocation team at Grantham, Mayo, Van Otterloo &amp; Co. Before joining GMO in 2009, he was co-head of global strategy at Societe Generale. A prolific and incisive writer, Montier has authored several books, including Behavioural Investing: A Practitioner's Guide to Applying Behavioural Finance; Value Investing: Tools and Techniques for Intelligent Investment; and The Little Book of Behavioral Investing. He's also a regular contributor to GMO's library of white papers and research studies on topics ranging from productivity, strategic asset allocation, contrarianism, and more. In addition to his duties at GMO, Montier is also a visiting fellow at the University of Durham and a fellow of the Royal Society of Arts.  Background  Grantham, Mayo, Van Otterloo &amp; Co. Behavioural Investing: A Practitioner's Guide to Applying Behavioural Finance by James Montier  Value Investing: Tools and Techniques for Intelligent Investment by James Montier  The Little Book of Behavioral Investing: How Not to Be Your Own Worst Enemy by James Montier  GMO's research library Montier's articles in GMO's research library  Montier's Role at GMO "My role is essentially to be difficult, and it turns out I'm quite good at that." Montier describes his role at GMO and how his contributions to the firm are measured. (1:10-3:11)  Ben Inker bio   Fostering Debate at GMO "We have never had a house view." Why debate and constructive devil's advocacy is welcome at GMO. (3:12-4:31) "Investing is one of those fields where there is almost constant evidence that we are all wrong." How to foster humility and a diversity of views. (4:32-7:38) Debating Jeremy Grantham on mean reversion: Montier gives an example of an issue the team has debated recently--how long it takes for markets to revert to their long-term averages. (7:39-9:36)  Jeremy Grantham bio  "This Time Seems Very, Very Different" by Jeremy Grantham (GMO Quarterly Letter, 1Q 2017)   "The S&amp;P 500: Just Say No" by Matt Kadnar and James Montier (Aug. 15, 2017)   Forecasting and Portfolio Construction How the debate over mean reversion informs GMO's asset-class forecasts. (9:37-10:09)  GMO 7-Year Asset Class Forecast (May 2019)   Corporate concentration and low interest rates: How GMO is reconsidering these variables and their impact on the asset-class forecasts it makes. (10:10-11:38) "The Idolatry of Interest Rates, Part II: Financial Heresy and Potential Utility in an ERP Framework" by James Montier and Ben Inker (Aug. 11, 2015) How GMO incorporates its asset-class forecasts into the multi-asset strategies it manages. (11:39-12:37)  GMO Benchmark-Free Allocation III GBMFX    The appeal of a "robust" forecast that's meant to help portfolios withstand various potential outcomes. (12:38-14:15) "Our portfolios look a little freakish." Montier explains why GMO is U.S.-stock-phobic and, conversely, why the firm is finding value in alternatives. (14:16-18:04)  GMO Benchmark-Free Allocation II Fund's asset allocation  Sir John Templeton: "If you want to have a better performance than the crowd, you must do things differently from the crowd."  Career risk: Where individual investors hold an edge over institutions. (18:05-18:55)  "Career Risk Is Likely to Always Dominate Investing" by Jeremy Grantham (Dec. 24, 2014, Finanz and Wirtschaft)   Alternatives Montier defines "alternatives." Different ways of owning standard risks--depression risk, inflation risk, and liquidity. (18:56-21:49)  "The General Theory of Employment, Interest, and Money" by John Maynard Keynes   Montier presents two examples of alternative strategies that GMO employs--merger arbitrage and put-selling--to own standard risks in different ways. (21:50-25:49)   Merger-arbitrage definition Put-selling definition  "Is This Purgatory, or Is It Hell?" by Ben Inker (GMO Quarterly Letter, 3Q 2014)   "We should size them such that they cannot hurt the overall fund should we get something wrong." How GMO sizes its positions in alternative strategies. (25:50-27:33)   GMO Systematic Global Macro Trust   Alpha, beta, and decay: How GMO assesses an alternative strategy's vulnerability to being arbitraged away. (27:34-29:57) GMO's Bearish U.S. Equity Forecast "How do I get paid for owning this asset?" Key inputs to GMO's U.S. equity forecast--multiple, margin, yield, and growth. (29:58-32:08)  "Back to Basics: Six Questions to Consider Before Investing" by Ben Inker (Nov. 8, 2010)   "A behavioral self-defense mechanism." How GMO's approach to forecasting helps to structure its thinking and anchors decision-making. (32:09-34:54) "It's really valuation where we've been most wrong." Where GMO's U.S. equity forecast erred in recent years. (34:55-36:01) "We have to wear that. We have to own it." Montier on steps that GMO has taken to introspect on its forecasting error and how that expresses itself in the way it makes decisions and manages money. (36:02-39:45) Planning Amid a Dearth of Value "A reach for yield in any way, shape, or form." Explaining the dearth of value. (39:46-41:43)  "The Deep Causes of Secular Stagnation and the Rise of Populism" by James Montier and Philip Pilkington (March 22, 2017)   "We have always been pretty bad at (forecasting), and it's unlikely we're going to get a lot better." (41:44-44:37) How should investors and advisors forecast asset-class returns and plan for the future? (44:38-47:25)  "Investing for Retirement: The Defined Contribution Challenge" by Ben Inker and Martin Tarlie (April 5, 2014)  Capital Allocation Montier on the folly of firms borrowing to repurchase shares: "The more stable the environment, the easier it is to take on leverage, but the greater the danger that taking leverage creates further down the line when you get some random shock." (47:26-50:49)   "The Late Cycle Lament: The Dual Economy, Minsky Moments, and Other Concerns" by James Montier (Dec. 17, 2018)   "The Financial Instability Hypothesis" by Hyman P. Minsky (May 1992; The Jerome Levy Economics Institute of Bard College)  

Our guest on this week's installment of "The Long View" podcast is James Montier. Montier is a member of the asset-allocation team at Grantham, Mayo, Van Otterloo &amp; Co. Before joining GMO in 2009, he was co-head of global strategy at Societe Generale. A prolific and incisive writer, Montier has authored several books, including Behavioural Investing: A Practitioner's Guide to Applying Behavioural Finance; Value Investing: Tools and Techniques for Intelligent Investment; and The Little Book of Behavioral Investing. He's also a regular contributor to GMO's library of white papers and research studies on topics ranging from productivity, strategic asset allocation, contrarianism, and more. In addition to his duties at GMO, Montier is also a visiting fellow at the University of Durham and a fellow of the Royal Society of Arts. Background  <a href="https://www.gmo.com/americas/" rel="nofollow" target="_blank">Grantham, Mayo, Van Otterloo &amp; Co.</a> <a href="https://www.amazon.com/gp/product/B004D4YO2O/ref=dbs_a_def_rwt_bibl_vppi_i1" rel="nofollow" target="_blank">Behavioural Investing: A Practitioner's Guide to Applying Behavioural Finance</a> by James Montier  <a href="https://www.amazon.com/gp/product/0470683597/ref=dbs_a_def_rwt_bibl_vppi_i2" rel="nofollow" target="_blank">Value Investing: Tools and Techniques for Intelligent Investment</a> by James Montier  <a href="https://www.amazon.com/gp/product/0470686022/ref=dbs_a_def_rwt_bibl_vppi_i0 " rel="nofollow" target="_blank">The Little Book of Behavioral Investing: How Not to Be Your Own Worst Enemy</a> by James Montier  <a href="https://www.gmo.com/americas/research-library/" rel="nofollow" target="_blank">GMO's research library</a> <a href="https://www.gmo.com/americas/research-library/?author=5d74cbfb-60a4-4fae-a578-9542221d34eb" rel="nofollow" target="_blank">Montier's articles in GMO's research library</a> Montier's Role at GMO "My role is essentially to be difficult, and it turns out I'm quite good at that." Montier describes his role at GMO and how his contributions to the firm are measured. (1:10-3:11) <ul> <li><a href="https://www.wellsfargofunds.com/ind/biographies/inker-ben.html" rel="nofollow" target="_blank">Ben Inker bio</a> </li> </ul> Fostering Debate at GMO "We have never had a house view." Why debate and constructive devil's advocacy is welcome at GMO. (3:12-4:31) "Investing is one of those fields where there is almost constant evidence that we are all wrong." How to foster humility and a diversity of views. (4:32-7:38) Debating Jeremy Grantham on mean reversion: Montier gives an example of an issue the team has debated recently--how long it takes for markets to revert to their long-term averages. (7:39-9:36) <ul> <li><a href="https://en.wikipedia.org/wiki/Jeremy_Grantham" rel="nofollow" target="_blank">Jeremy Grantham bio</a> </li> <li>"<a href="https://www.gmo.com/americas/research-library/this-time-seems-very-very-different/" rel="nofollow" target="_blank">This Time Seems Very, Very Different</a>" by Jeremy Grantham (GMO Quarterly Letter, 1Q 2017) </li> <li> "<a href="https://www.gmo.com/americas/research-library/the-sp-500-just-say-no/" rel="nofollow" target="_blank">The S&amp;P 500: Just Say No</a>" by Matt Kadnar and James Montier (Aug. 15, 2017) </li> </ul> Forecasting and Portfolio Construction How the debate over mean reversion informs GMO's asset-class forecasts. (9:37-10:09) <ul> <li><a href="https://www.gmo.com/globalassets/articles/gmo-7-year-asset-class-forecast/2019/gmo_7yrforecasts_5-19.pdf" rel="nofollow" target="_blank">GMO 7-Year Asset Class Forecast</a> (May 2019) </li> </ul> Corporate concentration and low interest rates: How GMO is reconsidering these variables and their impact on the asset-class forecasts it makes. (10:10-11:38) "<a href="https://www.gmo.com/americas/research-library/the-idolatry-of-interest-rates-part-ii-financial-heresy-and-potential-utility-in-an-erp-framework/" rel="nofollow" target="_blank">The Idolatry of Interest Rates, Part II: Financial Heresy and Potential Utility in an ERP Framework</a>" by James Montier and Ben Inker (Aug. 11, 2015) How GMO incorporates its asset-class forecasts into the multi-asset strategies it manages. (11:39-12:37) <ul> <li>GMO Benchmark-Free Allocation III GBMFX  </li> </ul> The appeal of a "robust" forecast that's meant to help portfolios withstand various potential outcomes. (12:38-14:15) "Our portfolios look a little freakish." Montier explains why GMO is U.S.-stock-phobic and, conversely, why the firm is finding value in alternatives. (14:16-18:04) <ul> <li><a href="http://portfolios.morningstar.com/fund/summary?t=GBMFX®ion=usa&amp;culture=en_US" rel="nofollow" target="_blank">GMO Benchmark-Free Allocation II Fund's asset allocation</a> </li> <li>Sir John Templeton: "If you want to have a better performance than the crowd, you must do things differently from the crowd."</li> </ul> Career risk: Where individual investors hold an edge over institutions. (18:05-18:55) <ul> <li>"<a href="https://www.fuw.ch/article/jeremy-grantham-career-risk-is-likely-to-always-dominate-investing/" rel="nofollow" target="_blank">Career Risk Is Likely to Always Dominate Investing</a>" by Jeremy Grantham (Dec. 24, 2014, Finanz and Wirtschaft) </li> </ul> Alternatives Montier defines "alternatives." Different ways of owning standard risks--depression risk, inflation risk, and liquidity. (18:56-21:49) <ul> <li>"<a href="https://cas2.umkc.edu/economics/people/facultypages/kregel/courses/econ645/winter2011/generaltheory.pdf" rel="nofollow" target="_blank">The General Theory of Employment, Interest, and Money</a>" by John Maynard Keynes </li> </ul> Montier presents two examples of alternative strategies that GMO employs--merger arbitrage and put-selling--to own standard risks in different ways. (21:50-25:49)  <ul> <li><a href="https://www.investopedia.com/terms/m/mergerarbitrage.asp" rel="nofollow" target="_blank">Merger-arbitrage definition</a></li> <li><a href="https://www.investopedia.com/articles/optioninvestor/10/sell-puts-benefit-any-market.asp" rel="nofollow" target="_blank">Put-selling definition</a> </li> <li>"<a href="https://www.gmo.com/americas/research-library/is-this-purgatory-or-is-it-hell/" rel="nofollow" target="_blank">Is This Purgatory, or Is It Hell</a>?" by Ben Inker (GMO Quarterly Letter, 3Q 2014) </li> </ul> "We should size them such that they cannot hurt the overall fund should we get something wrong." How GMO sizes its positions in alternative strategies. (25:50-27:33)  <ul> <li><a href="https://www.gmo.com/asia-pacific/product-index-page/alternatives/systematic-global-macro-strategy/systematic-global-macro-trust---sgmt/?accept=Funds" rel="nofollow" target="_blank">GMO Systematic Global Macro Trust</a> </li> </ul> Alpha, beta, and decay: How GMO assesses an alternative strategy's vulnerability to being arbitraged away. (27:34-29:57) GMO's Bearish U.S. Equity Forecast "How do I get paid for owning this asset?" Key inputs to GMO's U.S. equity forecast--multiple, margin, yield, and growth. (29:58-32:08) <ul> <li>"<a href="https://www.gmo.com/americas/research-library/back-to-basics-six-questions-to-consider-before-investing/" rel="nofollow" target="_blank">Back to Basics: Six Questions to Consider Before Investing</a>" by Ben Inker (Nov. 8, 2010) </li> </ul> "A behavioral self-defense mechanism." How GMO's approach to forecasting helps to structure its thinking and anchors decision-making. (32:09-34:54) "It's really valuation where we've been most wrong." Where GMO's U.S. equity forecast erred in recent years. (34:55-36:01) "We have to wear that. We have to own it." Montier on steps that GMO has taken to introspect on its forecasting error and how that expresses itself in the way it makes decisions and manages money. (36:02-39:45) Planning Amid a Dearth of Value "A reach for yield in any way, shape, or form." Explaining the dearth of value. (39:46-41:43) <ul> <li>"<a href="https://www.gmo.com/europe/research-library/the-deep-causes-of-secular-stagnation-and-the-rise-of-populism/" rel="nofollow" target="_blank">The Deep Causes of Secular Stagnation and the Rise of Populism</a>" by James Montier and Philip Pilkington (March 22, 2017) </li> </ul> "We have always been pretty bad at (forecasting), and it's unlikely we're going to get a lot better." (41:44-44:37) How should investors and advisors forecast asset-class returns and plan for the future? (44:38-47:25) <ul> <li>"<a href="https://www.gmo.com/americas/research-library/investing-for-retirement-the-defined-contribution-challenge/" rel="nofollow" target="_blank">Investing for Retirement: The Defined Contribution Challenge</a>" by Ben Inker and Martin Tarlie (April 5, 2014)</li> </ul> Capital Allocation Montier on the folly of firms borrowing to repurchase shares: "The more stable the environment, the easier it is to take on leverage, but the greater the danger that taking leverage creates further down the line when you get some random shock." (47:26-50:49) <ul> <li>"<a href="https://www.gmo.com/americas/research-library/the-late-cycle-lament-the-dual-economy-minsky-moments-and-other-concerns/" rel="nofollow" target="_blank">The Late Cycle Lament: The Dual Economy, Minsky Moments, and Other Concerns</a>" by James Montier (Dec. 17, 2018) </li> <li> "<a href="http://www.levyinstitute.org/pubs/wp74.pdf" rel="nofollow" target="_blank">The Financial Instability Hypothesis</a>" by Hyman P. Minsky (May 1992; The Jerome Levy Economics Institute of Bard College) </li> </ul>

James Montier: 'How Do I Get Paid for Owning This Asset?'

Chris Mamula

Our guest on the podcast today is Chris Mamula. Chris blogs on the website, "Can I Retire Yet?" and he has also cowritten a book called Choose FI: Your Blueprint to Financial Independence, which was published in 2019. Chris is loosely part of the FIRE, or Financial Independence Retire Early, movement, but he brings a fresh perspective to the concept. He retired from a career as a physical therapist at age 41. After poor experiences with the financial industry early in his professional life, he educated himself on investing and tax planning. Now he draws on his experience to write about wealth building, do-it-yourself investing, financial planning, early retirement, and lifestyle design.BackgroundCan I Retire Yet?Choose FI: Your Blueprint to Financial Independence, by Chris Mamula, Brad Barrett, and Jonathan Mendonsa. FIRE MovementFIRE Movement"Your Questions about FIRE, Answered," by Steven Kurutz, The New York Times, Sept. 11, 2018. Lifestyle and Personal Considerations "Nearly 2 Years into Early Retirement, Here’s All That I’ve Gotten Wrong," by Chris Mamula, marketwatch.com, Aug. 19, 2019.  “A Strong Marriage in Retirement,” by Darrow Kirkpatrick, Can I Retire Yet?, March 19, 2017. "Does Fire Make Life Harder?," by Chris Mamula, Can I Retire Yet?, Dec. 10, 2018. “A Week in the Life of a Fire Household,” by Chris Mamula, Can I Retire Yet?, Sept. 17, 2018. Healthcare Coverage for Early Retirees“Navigating ACA Tax Credits to Purchase Affordable Health Insurance,” by Chris Mamula, Can I Retire Yet?, Nov. 12, 2018.  “How to Qualify for Affordable Care Act (‘Obamacare’) Premium Subsidies,” by Mike Piper, Oblivious Investor.  “Are Health Care Sharing Ministries a Viable Alternative to Health Insurance for Early Retirement?” by Chris Mamula, Can I Retire Yet?, Nov. 19, 2018.  Health care sharing ministry, Wikipedia. “Do You Plan to Retire by 50? Great, But Can You Cover Your Health Care?” by Janna Herron, USA Today, June 4, 2019. Investing and Withdrawal Rates Bogleheads website  Jim Collins blog"The Safe Withdrawal Rate Series: A Guide for First-Time Readers," Early Retirement Now.  Stock Series, jlcollinsnh.com  The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life, by J.L. Collins.“Retirement Saving and the Empty Nest Transition,” by Michael Kitces, kitces.com, May 25, 2016. "The Stages of Financial Independence," by Chris Mamula, Can I Retire Yet?, Sept. 23, 2019,“The Problem with FIREing at 4% and the Need for Flexible Spending Rules,” by Michael Kitces, Kitces.com, July 23, 2019. “The 25X Rule to Early Retirement,” by Rob Berger, Forbes.com, Feb. 23, 2017.  Human capital definition, Investopedia “Going Back to Work,” by Chris Mamula, Can I Retire Yet?, July 22, 2019. Mr. Money Mustache

Our guest on the podcast today is Chris Mamula. Chris blogs on the website, "<a href="https://www.caniretireyet.com/" rel="nofollow" target="_blank">Can I Retire Yet?</a>" and he has also cowritten a book called <a href="https://www.choosefi.com/book/" rel="nofollow" target="_blank">Choose FI: Your Blueprint to Financial Independence</a>, which was published in 2019. Chris is loosely part of the FIRE, or Financial Independence Retire Early, movement, but he brings a fresh perspective to the concept. He retired from a career as a physical therapist at age 41. After poor experiences with the financial industry early in his professional life, he educated himself on investing and tax planning. Now he draws on his experience to write about wealth building, do-it-yourself investing, financial planning, early retirement, and lifestyle design. Background <a href="https://www.caniretireyet.com/" rel="nofollow" target="_blank">Can I Retire Yet?</a> <a href="https://www.choosefi.com/book/" rel="nofollow" target="_blank">Choose FI: Your Blueprint to Financial Independence</a>, by Chris Mamula, Brad Barrett, and Jonathan Mendonsa.  FIRE Movement <a href="https://en.wikipedia.org/wiki/FIRE_movement" rel="nofollow" target="_blank">FIRE Movement</a> "<a href="https://www.nytimes.com/2018/09/11/style/what-is-fire-financial-independence-retire-early.html" rel="nofollow" target="_blank">Your Questions about FIRE, Answered</a>," by Steven Kurutz, The New York Times, Sept. 11, 2018.  Lifestyle and Personal Considerations "<a href="https://www.marketwatch.com/story/nearly-2-years-into-early-retirement-heres-all-that-ive-gotten-wrong-2019-08-19" rel="nofollow" target="_blank">Nearly 2 Years into Early Retirement, Here’s All That I’ve Gotten Wrong</a>," by Chris Mamula, <a href="http://marketwatch.com" rel="nofollow" target="_blank">marketwatch.com</a>, Aug. 19, 2019.   “<a href="https://www.caniretireyet.com/a-strong-marriage-in-retirement/" rel="nofollow" target="_blank">A Strong Marriage in Retirement</a>,” by Darrow Kirkpatrick, Can I Retire Yet?, March 19, 2017.  "<a href="https://www.caniretireyet.com/fire-make-life-harder/" rel="nofollow" target="_blank">Does Fire Make Life Harder</a><a href="https://www.caniretireyet.com/fire-make-life-harder/" rel="nofollow" target="_blank">?</a>," by Chris Mamula, Can I Retire Yet?, Dec. 10, 2018.  “<a href="https://www.caniretireyet.com/week-life-fire-household/" rel="nofollow" target="_blank">A Week in the Life of a Fire Household</a>,” by Chris Mamula, Can I Retire Yet?, Sept. 17, 2018.  Healthcare Coverage for Early Retirees “<a href="https://www.caniretireyet.com/aca-subsidies-affordable-health-insurance/" rel="nofollow" target="_blank">Navigating ACA Tax Credits to Purchase Affordable Health Insurance</a>,” by Chris Mamula, Can I Retire Yet?, Nov. 12, 2018. “<a href="https://obliviousinvestor.com/how-to-qualify-for-affordable-care-act-obamacare-premium-subsidies/" rel="nofollow" target="_blank">How to Qualify for Affordable Care Act (‘Obamacare’) Premium Subsidies</a>,” by Mike Piper, Oblivious Investor. “<a href="https://www.caniretireyet.com/health-care-sharing-ministries-early-retirement/" rel="nofollow" target="_blank">Are Health Care Sharing Ministries a Viable Alternative to Health Insurance for Early Retirement?</a>” by Chris Mamula, Can I Retire Yet?, Nov. 19, 2018. <a href="https://en.wikipedia.org/wiki/Health_care_sharing_ministry" rel="nofollow" target="_blank">Health care sharing ministry</a>, Wikipedia.  “<a href="https://www.usatoday.com/story/money/2019/06/04/early-retirement-how-afford-health-insurance/1333554001/" rel="nofollow" target="_blank">Do You Plan to Retire by 50? Great, But Can You Cover Your Health Care?</a>” by Janna Herron, USA Today, June 4, 2019.  Investing and Withdrawal Rates  <a href="https://rpsui.morningstar.com/Editors/Documents/Bogleheads.org" rel="nofollow" target="_blank">Bogleheads website</a> <a href="https://jlcollinsnh.com/" rel="nofollow" target="_blank">Jim Collins blog</a> "<a href="https://earlyretirementnow.com/safe-withdrawal-rate-series/" rel="nofollow" target="_blank">The Safe Withdrawal Rate Series: A Guide for First-Time Readers</a>," Early Retirement Now. <a href="https://jlcollinsnh.com/stock-series/" rel="nofollow" target="_blank">Stock Series</a>, <a href="http://jlcollinsnh.com" rel="nofollow" target="_blank">jlcollinsnh.com</a> <a href="https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926" rel="nofollow" target="_blank">The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life</a>, by J.L. Collins. “<a href="https://www.kitces.com/blog/empty-nest-red-zone-catch-up-saving-for-retirement/" rel="nofollow" target="_blank">Retirement Saving and the Empty Nest Transition</a>,” by Michael Kitces, <a href="http://kitces.com" rel="nofollow" target="_blank">kitces.com</a>, May 25, 2016.  "<a href="https://www.caniretireyet.com/stages-financial-independence/" rel="nofollow" target="_blank">The Stages of Financial Independence</a>," by Chris Mamula, Can I Retire Yet?, Sept. 23, 2019, “<a href="https://www.kitces.com/blog/the-problem-with-fireing-at-4-and-the-need-for-flexible-spending-rules/" rel="nofollow" target="_blank">The Problem with FIREing at 4% and the Need for Flexible Spending Rules</a>,” by Michael Kitces, <a href="http://Kitces.com" rel="nofollow" target="_blank">Kitces.com</a>, July 23, 2019.  “<a href="https://www.forbes.com/sites/robertberger/2017/02/23/the-25x-rule-to-early-retirement/#7aa678156faf" rel="nofollow" target="_blank">The 25X Rule to Early Retirement</a>,” by Rob Berger, <a href="http://Forbes.com" rel="nofollow" target="_blank">Forbes.com</a>, Feb. 23, 2017.  <a href="https://www.investopedia.com/terms/h/humancapital.asp" rel="nofollow" target="_blank">Human capital definition</a>, Investopedia  “<a href="https://www.caniretireyet.com/going-back-to-work/" rel="nofollow" target="_blank">Going Back to Work</a>,” by Chris Mamula, Can I Retire Yet?, July 22, 2019.  <a href="https://duckduckgo.com/?q=mr.+money+mustache&amp;atb=v145-1&amp;ia=web" rel="nofollow" target="_blank">Mr. Money Mustache</a>

Chris Mamula: What Young Retirees Need to Know

Moira Somers

Our guest on the podcast today is Dr. Moira Somers,  a clinical neuropsychologist and professor. She’s also author of the book Advice That Sticks: How to Give Financial Advice That People Will Follow, published in 2018. Dr Somers’ expertise is in brain functioning, behavior change, and mental health, topics that she often discusses in the context of financial advice. She’s a frequent public speaker and also consults with advisors on improving their client outcomes. Dr. Somers is a senior faculty member with the Sudden Money Institute, where she trains advisors and conducts research into the psychological factors at play during major life transitions. BackgroundMoira Somers' biography Moira Somers' website Somers, M. 2018. Advice That Sticks: How to Give Financial Advice That People Will Follow (London: Practical Inspiration Publishing).Improving Client AdherenceBehavioral finance definition Martin, L., Williams, S.L., Haskard, K.B., et al. 2005. “The Challenge of Patient Adherence.” Therapeutics and Clinical Risk Management, Vol. 1, No. 3, P. 189. Somers, M. “Does Your Advice Stick?” Journal of Financial Planning, May 2018. Stone, G.C. 1979. “Patient Compliance and the Role of the Expert.” Journal of Social Issues, Winter. “Financial Jargon Your Advisor May Throw at You,” CNBC.com, Oct. 8, 2012. Beerens, M. 2019. “Listening, Empathy and Personal Attention Go A Long Way in Client Acquisition and Retention.” Investors Business Daily, Nov. 4, 2019. Lee, B.Y. 2018. “11 Seconds: How Long Your Doctor Waits Before Interrupting You." Forbes.com, July 22, 2018. Jung, D. 2019. “Nudge Action: Overcoming Decision Inertia in Financial Planning Tools.” BehavioralEconomics.com, March 12, 2019.Benartzi, S. 2017. “How Digital Tools and Behavioral Economics Will Save Retirement.” Harvard Business Review, Dec. 7, 2017.Raihani, N. 2013. “Nudge Politics: Efficacy and Ethics.” Frontiers in Psychology, Vol. 4, P. 972. Eisenberg, R. 2013. “To Solve the U.S. Retirement Crisis, Look to Australia,” Forbes.com, Aug. 19, 2013. Frankenfield, J. 2019. “What Is a Robo-Advisor?” Investopedia.com, Oct. 1, 2019. Knudge.com Touchstone Pathway Gamification definition Kahneman, D. 2011. Thinking, Fast and Slow.

Our guest on the podcast today is Dr. Moira Somers,  a clinical neuropsychologist and professor. She’s also author of the book Advice That Sticks: How to Give Financial Advice That People Will Follow, published in 2018. Dr Somers’ expertise is in brain functioning, behavior change, and mental health, topics that she often discusses in the context of financial advice. She’s a frequent public speaker and also consults with advisors on improving their client outcomes. Dr. Somers is a senior faculty member with the Sudden Money Institute, where she trains advisors and conducts research into the psychological factors at play during major life transitions. Background <a href="https://moneymindandmeaning.com/about-moira/" rel="nofollow" target="_blank">Moira Somers' biography</a> <a href="https://moneymindandmeaning.com/" rel="nofollow" target="_blank">Moira Somers' website</a> Somers, M. 2018. <a href="https://www.amazon.com/Advice-That-Sticks-financial-advice/dp/1788600142" rel="nofollow" target="_blank">Advice That Sticks: How to Give Financial Advice That People Will Follow</a> (London: Practical Inspiration Publishing).Improving Client Adherence <a href="https://psychologydictionary.org/nonadherence/" rel="nofollow" target="_blank">Behavioral finance definition</a> Martin, L., Williams, S.L., Haskard, K.B., et al. 2005. “<a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1661624/" rel="nofollow" target="_blank">The Challenge of Patient Adherence</a>.” Therapeutics and Clinical Risk Management, Vol. 1, No. 3, P. 189. Somers, M. “<a href="https://www.onefpa.org/journal/Pages/MAY18-Does-Your-Advice-Stick.aspx" rel="nofollow" target="_blank">Does Your Advice Stick?</a>” Journal of Financial Planning, May 2018. Stone, G.C. 1979. “<a href="https://spssi.onlinelibrary.wiley.com/doi/abs/10.1111/j.1540-4560.1979.tb00788.x" rel="nofollow" target="_blank">Patient Compliance and the Role of the Expert</a>.” Journal of Social Issues, Winter. “<a href="https://www.cnbc.com/2012/10/08/Financial-Jargon-Your-Adviser-May-Throw-at-You.html" rel="nofollow" target="_blank">Financial Jargon Your Advisor May Throw at You</a>,” <a href="http://CNBC.com" rel="nofollow" target="_blank">CNBC.com</a>, Oct. 8, 2012. Beerens, M. 2019. “<a href="https://www.investors.com/financial-advisors/how-to-get-clients-as-a-financial-advisor-listening-empathy-personal-attention/" rel="nofollow" target="_blank">Listening, Empathy and Personal Attention Go A Long Way in Client Acquisition and Retention</a>.” Investors Business Daily, Nov. 4, 2019. Lee, B.Y. 2018. “<a href="https://www.forbes.com/sites/brucelee/2018/07/22/how-long-you-can-talk-before-your-doctor-interrupts-you/#3faaae7a1443" rel="nofollow" target="_blank">11 Seconds: How Long Your Doctor Waits Before Interrupting You</a>." <a href="http://Forbes.com" rel="nofollow" target="_blank">Forbes.com</a>, July 22, 2018. Jung, D. 2019. “<a href="https://www.behavioraleconomics.com/nudge-action-overcoming-decision-inertia-in-financial-planning-tools/" rel="nofollow" target="_blank">Nudge Action: Overcoming Decision Inertia in Financial Planning Tools</a>.” <a href="http://BehavioralEconomics.com" rel="nofollow" target="_blank">BehavioralEconomics.com</a>, March 12, 2019.Benartzi, S. 2017. “<a href="https://hbr.org/2017/12/how-digital-tools-and-behavioral-economics-will-save-retirement" rel="nofollow" target="_blank">How Digital Tools and Behavioral Economics Will Save Retirement</a>.” Harvard Business Review, Dec. 7, 2017.Raihani, N. 2013. “<a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3867635/" rel="nofollow" target="_blank">Nudge Politics: Efficacy and Ethics</a>.” Frontiers in Psychology, Vol. 4, P. 972. Eisenberg, R. 2013. “<a href="https://www.forbes.com/sites/nextavenue/2013/08/19/to-solve-the-u-s-retirement-crisis-look-to-australia/#13b4f99347b5" rel="nofollow" target="_blank">To Solve the U.S. Retirement Crisis, Look to Australia</a>,” <a href="http://Forbes.com" rel="nofollow" target="_blank">Forbes.com</a>, Aug. 19, 2013. Frankenfield, J. 2019. “<a href="https://www.investopedia.com/terms/r/roboadvisor-roboadviser.asp" rel="nofollow" target="_blank">What Is a Robo-Advisor?</a>” <a href="http://Investopedia.com" rel="nofollow" target="_blank">Investopedia.com</a>, Oct. 1, 2019. <a href="https://knudge.com/" rel="nofollow" target="_blank">Knudge.com</a> <a href="https://www.touchstonepathway.com/about-touchstone-pathway/" rel="nofollow" target="_blank">Touchstone Pathway</a> <a href="https://www.investopedia.com/terms/g/gamification.asp" rel="nofollow" target="_blank">Gamification definition</a> <a href="https://en.wikipedia.org/wiki/Thinking,_Fast_and_Slow" rel="nofollow" target="_blank">Kahneman, D. 2011. Thinking, Fast and Slow</a>.

Moira Somers: How to Give Financial Advice That People Will Actually Take

Bill Nygren

Our guest on this week's installment of The Long View is noted portfolio manager Bill Nygren. Nygren joined Chicago-based Harris Associates as an analyst in 1983 and later served as the firm's director of research. He has managed Oakmark Select OAKLX since 1996 and Oakmark Fund OAKMX since 2000 and has comanaged Oakmark Global Select OAKWX since 2006. In addition to these duties, Nygren serves as Harris' chief investment officer for U.S. equities. For his investing achievements, Morningstar recognized Nygren as its Domestic-Stock Manager of the Year in 2001, and his funds remain highly rated by Morningstar's manager research analysts. A frequent and insightful commentator on investing and markets, Nygren's shareholder letters are a must-read on the Street and beyond. In this far-ranging conversation, he discusses how his team's competitive edge has evolved, how traditional value metrics won't cut it in today's evolving economy, and the lasting lessons of the financial crisis.  Background Information  Bill Nygren bio Bill Nygren's Commentary and Shareholder Letters  Oakmark's Philosophy and Process  Morningstar Analyst Report for Oakmark Fund Morningstar Analyst Report for Oakmark Select  Morningstar Analyst Report for Oakmark Global Select "Morningstar Fund Managers of the Year 2001," by Russ Kinnel (Jan. 4, 2002, Morningstar.com)  Related Links How Stock-Picking Has Changed and What Defines Value  "Value Investors Are Vexed," by Ben Johnson (April 10, 2019, Morningstar.com) "Value Stocks Haven't Traded This Low Since the Dot-Com Bubble," by Justina Lee (July 23, 2019, Bloomberg) Generally Accepted Accounting Principles (GAAP)  Shiller P/E Ratio   Portfolio/Risk Management  "Do Concentrated Funds Outperform?" Alex Bryan and Christine Benz (May 8, 2019, Morningstar.com) "The World Cup and Investing," by Win Murray (July 16, 2018, Oakmark.com)   Portfolio and Holdings   Oakmark Fund portfolio, June 30, 2019 Oakmark Select portfolio, June 30, 2019 Oakmark Global Select portfolio, June 30, 2019 "Bank of America Plans to Boost Dividend 20%, Increase Pace of Stock Buybacks" (July 17, 2019, Marketwatch) "Famed Value Investor Bill Nygren on His New Stock Picks" (April 25, 2019, CNBC) "Value Investor Bill Nygren Gets Bullish on Tech" (Feb. 25, 2019, CNBC)   "Value Investor Bill Nygren Likes Netflix, Saying It Won't Lose Subscribers on Price Hike" (Jan. 15, 2019, CNBC) "Nygren: A Lot of Value Still Out There" (May 28, 2009, Morningstar)  About the Podcast: The Long View  is a podcast from Morningstar. Each week, hosts Christine Benz and Jeff Ptak conduct an in-depth discussion with a thought leader from the world of investing or personal finance. The podcast is produced by George Castady and Scott Halver. About the Hosts: Christine Benz and Jeff Ptak have been analysts and commentators on investments and the investment industry for many years. Christine is Morningstar's director of personal finance and senior columnist for Morningstar.com. Jeff is head of global manager research for Morningstar Research Services, overseeing Morningstar's team of 120 manager research analysts in the U.S. and overseas. To Share Feedback or a Guest Idea: Write us at TheLongView@morningstar.com

Our guest on this week's installment of The Long View is noted portfolio manager Bill Nygren. Nygren joined Chicago-based Harris Associates as an analyst in 1983 and later served as the firm's director of research. He has managed Oakmark Select OAKLX since 1996 and Oakmark Fund OAKMX since 2000 and has comanaged Oakmark Global Select OAKWX since 2006. In addition to these duties, Nygren serves as Harris' chief investment officer for U.S. equities. For his investing achievements, Morningstar recognized Nygren as its Domestic-Stock Manager of the Year in 2001, and his funds remain highly rated by Morningstar's manager research analysts. A frequent and insightful commentator on investing and markets, Nygren's shareholder letters are a must-read on the Street and beyond. In this far-ranging conversation, he discusses how his team's competitive edge has evolved, how traditional value metrics won't cut it in today's evolving economy, and the lasting lessons of the financial crisis. Background Information <ul> <li><a href="https://www.harrisassoc.com/About-Us/Portfolio-Managers/William-C.-Nygren-CFA.htm" rel="nofollow" target="_blank">Bill Nygren bio</a></li> <li><a href="https://www.oakmark.com/Commentary/Commentary-Archives.htm?FB_Values=F1_C13_A1 " rel="nofollow" target="_blank">Bill Nygren's Commentary and Shareholder Letters</a> </li> <li><a href="https://www.oakmark.com/About-Oakmark/Philosophy--Process.htm" rel="nofollow" target="_blank">Oakmark's Philosophy and Process </a></li> <li><a href="https://www.morningstar.com/funds/xnas/oakmx/analysis" rel="nofollow" target="_blank">Morningstar Analyst Report for Oakmark Fund</a></li> <li><a href="https://www.morningstar.com/funds/xnas/oaklx/analysis" rel="nofollow" target="_blank">Morningstar Analyst Report for Oakmark Select</a> </li> <li><a href="https://www.morningstar.com/funds/xnas/oakwx/analysis" rel="nofollow" target="_blank">Morningstar Analyst Report for Oakmark Global Select</a></li> <li>"<a href="https://www.morningstar.com/articles/11729/morningstar-fund-managers-of-the-year-2001" rel="nofollow" target="_blank">Morningstar Fund Managers of the Year 2001</a>," by Russ Kinnel (Jan. 4, 2002, <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a>)</li> </ul> Related Links How Stock-Picking Has Changed and What Defines Value <ul> <li>"<a href="https://www.morningstar.com/articles/922787/value-investors-are-vexed" rel="nofollow" target="_blank">Value Investors Are Vexed</a>," by Ben Johnson (April 10, 2019, <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a>)</li> <li>"<a href="https://www.bloombergquint.com/markets/value-stocks-haven-t-traded-this-low-in-nearly-half-a-century" rel="nofollow" target="_blank">Value Stocks Haven't Traded This Low Since the Dot-Com Bubble</a>," by Justina Lee (July 23, 2019, Bloomberg)</li> <li><a href="https://en.wikipedia.org/wiki/Generally_Accepted_Accounting_Principles_(United_States)" rel="nofollow" target="_blank">Generally Accepted Accounting Principles (GAAP)</a> </li> <li><a href="https://www.multpl.com/shiller-pe" rel="nofollow" target="_blank">Shiller P/E Ratio</a> </li> </ul> Portfolio/Risk Management <ul> <li>"Do Concentrated Funds Outperform?" Alex Bryan and Christine Benz (May 8, 2019, <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a>)</li> <li>"<a href="https://www.oakmark.com/News/The-World-Cup-and-Investing.htm" rel="nofollow" target="_blank">The World Cup and Investing</a>," by Win Murray (July 16, 2018, <a href="http://Oakmark.com" rel="nofollow" target="_blank">Oakmark.com</a>) </li> </ul> Portfolio and Holdings <ul> <li><a href="https://www.morningstar.com/funds/xnas/oakmx/portfolio" rel="nofollow" target="_blank">Oakmark Fund portfolio</a>, June 30, 2019</li> <li><a href="https://www.morningstar.com/funds/xnas/oaklx/portfolio" rel="nofollow" target="_blank">Oakmark Select portfolio</a>, June 30, 2019</li> <li><a href="https://www.morningstar.com/funds/xnas/oakwx/portfolio" rel="nofollow" target="_blank">Oakmark Global Select portfolio</a>, June 30, 2019</li> <li>"<a href="https://www.morningstar.com/news/marketwatch/2019071783/bank-of-america-plans-to-boost-dividend-20-increase-pace-of-stock-buybacks" rel="nofollow" target="_blank">Bank of America Plans to Boost Dividend 20%, Increase Pace of Stock Buybacks</a>" (July 17, 2019, Marketwatch)</li> <li>"<a href="https://www.cnbc.com/video/2019/04/25/famed-value-investor-bill-nygren-on-his-new-stock-picks.html" rel="nofollow" target="_blank">Famed Value Investor Bill Nygren on His New Stock Picks</a>" (April 25, 2019, CNBC)</li> <li>"<a href="https://www.cnbc.com/video/2019/02/25/value-investor-bill-nygren-gets-bullish-on-tech.html" rel="nofollow" target="_blank">Value Investor Bill Nygren Gets Bullish on Tech</a>" (Feb. 25, 2019, CNBC)</li> </ul> <ul> <li>"<a href="https://www.cnbc.com/2019/01/15/bill-nygren-likes-netflix-says-price-hike-wont-scare-subscribers.html" rel="nofollow" target="_blank">Value Investor Bill Nygren Likes Netflix, Saying It Won't Lose Subscribers on Price Hike</a>" (Jan. 15, 2019, CNBC)</li> <li>"<a href="https://www.morningstar.com/articles/293337/nygren-a-lot-of-value-still-out-there" rel="nofollow" target="_blank">Nygren: A Lot of Value Still Out There</a>" (May 28, 2009, Morningstar)</li> </ul> About the Podcast: The Long View is a podcast from Morningstar. Each week, hosts Christine Benz and Jeff Ptak conduct an in-depth discussion with a thought leader from the world of investing or personal finance. The podcast is produced by George Castady and Scott Halver. About the Hosts: Christine Benz and Jeff Ptak have been analysts and commentators on investments and the investment industry for many years. Christine is Morningstar's director of personal finance and senior columnist for <a href="http://Morningstar.com" rel="nofollow" target="_blank">Morningstar.com</a>. Jeff is head of global manager research for Morningstar Research Services, overseeing Morningstar's team of 120 manager research analysts in the U.S. and overseas. To Share Feedback or a Guest Idea: Write us at <a href="mailto:thelongview@morningstar.com?subject=Feedback - The Long View Podcast">TheLongView@morningstar.com</a>

Bill Nygren: 'A Stock That Doesn't Look Cheap on the Surface Might Be One of the Cheapest'

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