How the current global recession differs from the Great Financial Crisis and why the recession is probably over.Topics covered include:Why the current recession has no debt and banking crisisWhy lower-income workers are disproportionally harmed by the current recessionHow the federal government and central bank responses differed between the current recession and the 2008-09 recession.Do increased unemployment benefits disincentivize workersWhy the recession is probably over, but it could take months or years to recover the lost outputWhat factors will determine the impact a Covid-19 vaccine will have on the economyThanks to Chili and Trends for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What are some investments that can generate a cash yield greater than inflation in an era when central bank policies keep government bond yields lower than the inflation rate.Topics covered include:How low are interest rates around the worldWhat have inflation rates been and what causes inflation and deflationWhat is financial repressionWhy are central banks keeping short-term interest rates so lowWhat determines interest ratesHow I-bonds workWhy active bond mutual funds can be helpfulThe pros and cons of preferred stockHow to harvest the volatility risk premiumHow dividend-paying stocks can help fight financial repressionThanks to NetSuite for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What is the cause of the current U.S. coin shortage and when have there been other shortages. Why is there a push to get rid of both the penny and the hundred dollar bill.Topics covered include:How many coins does the U.S. Mint produce each year and why hasn't it been enough to avert a coin shortage in 2020.How the U.S. coin shortage in the early 1960s differs from today.How much profit does the U.S. Mint make producing coins even though it loses money minting both pennies and nickels.How often and under what circumstances do U.S. consumers pay with cash.Why the U.S. penny should be discontinued.Why companies and individuals are hoarding cash, mostly in one hundred dollar bills.Why the existence of one hundred dollar bills would impede the effectiveness of negative interest rates in the U.S.Why has the U.S. mint sold 300% more ounces of gold coins in 2020 compared to last year.Thanks to Chili and Policygenius for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What are the pros and cons of income share agreements for partially funding higher education. Are investing in ISA's a viable opportunity?Topics covered include:How do income share agreements (ISAs) differ from student loans for funding higher education costs.Are ISA's really a partial form of slavery or indentured servitudeWhat are the components of an ISA contract.How adverse selection, differential pricing, moral hazard, and a lack of regulation pose challenges to income share agreements.What is an internal rate of return and why is it the best metric for estimating the return of investing in ISAs.How students should evaluate ISA's relative to loans.What are some pricing examples for specific ISAsWhat options exist for investing in ISAs.Thanks to LinkedIn Jobs and Trends.co for sponsoring the episodeFor show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What are the three primary ways to allocate assets and build a portfolio when saving for retirement or living in retirement.Topics covered include:How saving for retirement and living in retirement differ.What are the expected return and risk of the Permanent, Golden Butterfly, and All Season portfolios.What are the pros and cons of a role-based permanent portfolio.What are the pros and cons of a strategic portfolio mix, such as the Bogleheads Three Fund PortfolioWhat are the pros and cons of an adaptive asset garden portfolio.Thanks to NetSuite and The Great Courses Plus for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Is a bank collapse coming due to bank exposure to collateralized loan obligations as defaults increase?Topics covered include:What are collateralized loan obligations (CLOs), how are they structured, and what has been their historical default rates.How much exposure do banks have to CLOs and will it impact your bank savings and investments.What are bank capital ratios and how are they calculated.How banks are more conservatively run due to the adoption of the Basel III regulatory framework.What are bank stress tests and how have they performed.Why the Federal Reserve just capped dividends for the largest U.S. banks.How many U.S. banks have failed during the pandemic crisis compared to the Great Financial Crisis.Thanks to Simplifi and Policygenius for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

An analysis of the returns and risks of different lending platform options including asset-based lending, unsecured peer-to-peer lending, cryptocurrency lending and a cash advance company that promises to pay a 15% annual percentage yield.Topics covered include:U-haul Investors Club and other asset-based lending optionsDriverLoans Investor Club that promises a 15% guaranteed returnBlockFi - cryptocurrency lending with yields over 8%LendingClub and why returns are only 4% to 5%The economics of cash advance and payday loan lending businessesThanks to LinkedIn and Aspiration for sponsoring the episode. Text the word David to 64000 to open an Aspiration Save and Spend Account.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Why individuals should use a more agile approach to investing and financial planning.Topics covered include:How to incorporate low probability catastrophic events in your financial plans.How traditional financial planning differs from agile financial planning.Why we need to test-drive our financial plans.How too much efficiency can lead to a lack of resilience.How David's portfolio is allocated using a role-based flexible bucket approach.Thanks to Policygenius and The Great Courses Plus for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How successful investing requires judgment and humility not accurate forecasting ability.Topics covered include:Why pretending to know when you don't is harmful.Why true experts admit their limitations.Why David recently increased his allocation to stocks in his portfolio.How the number of new retail brokerage accounts has exploded.How the stock of the bankrupt company Hertz is a great example of how not to invest.What is privilege and what should we do about it.Thanks to NetSuite and Aspiration for sponsoring the episode. To open your Aspiration Spend and Save cash management account, text DAVID to 64-000For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How alternative investment opportunities, such as venture capital, private equity, real estate and real assets, are increasing for individuals. Why these opportunities differ from what is available to institutional investors and how to evaluate them like a pro.Topics covered include:What are alternative investments and how are they structured.What are 5 factors that determine alternative investment returns.Lessons from three recent alternative investment deals including one that defaulted.How to evaluate alternative investment opportunities.Thanks to Simplifi and Policygenius for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What are the forces that lead to the rise and fall of nations. Why does the U.S. appear to be in decline and what investors can do to prepare.Topics covered include:An overview of Ray Dalio and Bridgewater Associates' investment processWhy human productivity is the most powerful force for creating wealth.Additional forces that contribute to nations increasing in power and wealth.Why being the reserve currency is an exorbitant privilege.What are factors that indicate a nation's influence and power is in decline.What are 5 important monetary principles all investors should understand.What are the questions you should ask to gauge your economic well-being.What investments should you own to prepare for a changing world order.Thanks to LinkedIn Learning for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A look at growing patterns consumers and businesses are adopting as a result of the Covid-19 pandemic.Topics covered include:Two constants in a radically unpredictable worldHow removing things is more powerful than adding thingsHow airline travel will change, leading to more local travelWhy bicycle sales are soaringHow our social interactions are changingWhat is local maximaHow the forces of money, trust, technology, and climate change have played out in the aftermath of the pandemic.Thanks to The Great Courses Plus for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How the stock market differs from and can perform differently than the economy while remaining highly dependent on the economy for its success.Topics covered include:Why the stock markets in countries with lower economic growth performed better than the stock markets in countries with higher economic growth.How the top 5 stocks in the S&P 500 Index have the largest weighting in 30 years and what will it takes for these stocks to outperform the market.What are the largest contributors to U.S economic growth, most of which are not publicly traded.How the U.S. government and the Federal Reserve saved the stock market.How have stocks performed during economic recessions.Why it is risky for investors to be dependent on the financial prospects of the largest technology stocks.Thanks to Grammarly and Policygenius for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How to protect your savings from monetary threats like devaluation. Why high yield savings accounts exist, and are they worth it.Topics covered include:Why Lebanon defaulted on its national debt and announced it will devalue its currency by 57%.Why some depositors in Lebanon will probably lose some of their bank savings.What investors can do to protect themselves from currency devaluations.What are stablecoins and why are they useful.Why some online banks pay above-average interest rates on savings accounts.Why banks need to attract new deposits even though they create deposits when they make a loan.Thanks to Mint Mobile and Policygenius for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Why the oil price fell below zero and what are other examples of negative prices. What lessons can we learn from negative prices.Topics covered include:How oil futures work and why the oil future prices fell below zero for the first time ever.Why has the United States Oil ETF (USO) lost so much money.How ETF authorized participants create new shares only so they can be shorted.How storage problems for oil and electricity can lead to negative prices.How negative interest rates are another form of negative prices.Why sellers will pay buyers to deliver a service to them.What financial lessons can we learn from negative prices.Thanks to LinkedIn Learning and The Investor's Podcast for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How central banks can become insolvent and why it can lead to hyperinflation. What are four ways the Federal Reserve and the U.S. Treasury could monetize the national debt.Topics covered include:What are the major asset and liabilities of the Federal ReserveHow does the Federal Reserve make a profit and what happens if it suffers a loss.How has the Federal Reserve has significantly expanded the types of assets it will hold and what are the risks.What could cause the Federal Reserve and other central banks to become insolvent.What are the constraints central banks face.What are four ways the U.S. national debt could be monetized.How investors can protect themselves against central bank insolvency.Thanks to The Great Courses Plus and Policygenius for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How the stories we tell ourselves lead to economic change. What are current pandemic related narratives that are impacting financial markets and the economy.Topics covered include:Examples of mathematical models for epidemics.What are the risks when the global economy is opened again.Under what circumstances do individuals rely on anecdotal evidence rather than statistics.What are some propositions that underly how economic narratives spread.What are some examples of major narratives that impact the economy.How humans have a bias toward action and how to deal with that when the best course is to stay in place.Should investors be increasing their stock exposure now that the markets are rallying and central banks are taking aggressive action.Thanks to Policygenius and LinkedIn for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What is the difference between risk and uncertainty and how our decision making approach should differ under each scenario. Why pandemics are highly uncertain and should be treated as such.Topics covered include:How the coronavirus pandemic is far worse than other pandemics this century.How humans have a difficult time accepting that things won't return to normal.What is the difference between risk and uncertainty.How we make decisions should differ if something is uncertain versus risky.What is the minimax regret approach to making decisions under uncertainty.How stories help us deal with uncertainty.How the story driving financial markets has changed.What is the duration and severity of bear markets during a recession and how large have bear market stock rallies been.What will it take for the pandemic to end and to be more confident about the future.Thanks to Mint Mobile and Grammarly for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What central banks such as the Federal Reserve and federal governments are doing to counteract the negative impact of the pandemic related economic shutdown. What are the risks of this massive monetary and fiscal stimulus and how to mitigate those risks.Topics covered include:How central banks have the capacity to create an infinite amount of money.How the Federal Reserve is using its money-printing ability to stabilize the financial system and reduce the negative impact of the pandemic related economic shutdown.What are the mechanics of quantitative easing.What are examples of stimulus programs during the Great Depression that didn't work because they were too focused on social engineering. How massive central bank and government stimulus could lead to inflation or deflation.How inflation-indexed bonds such as Treasury Inflation Protection Securities can help reduce inflation risk, and why owning individual TIPs is particularly attractive right now.Why it's okay for investors with a long time horizon to ride out the current market turmoil without reducing risk.What are current and leading economic indicators suggesting about the severity of the economic shutdown and the potential for recovery.Thanks to LinkedIn Learning and Rad Power Bikes for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How to avoid ruin and help others avoid ruin as the economy shuts down to slow the spread of the coronavirus.Topics covered include:What is the precautionary principle and how can it help us make important decisions with regards to the coronavirus pandemic.How many people could be infected with Covid-19 in the next 30 to 60 days at the current daily growth rate.Why investment managers are selling assets to reduce their market exposure.Should individual investors be increasing or reducing their exposure to the stock market in the current market environment.How recent actions by the Federal Reserve suggest they think a U.S. recession is imminent.What can individuals locked down at home do to survive mentally and emotionally.What we can do to help businesses avoid ruin during the pandemic crisis. Thanks to Netsuite and Rad Power Bikes for sponsoring the episode. Text the word RAD to the number 64-000 to get a free accessory with the purchase of a bike.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Why closed-end funds are David's favorite investment vehicle, particularly during market panics. What are the unique characteristics of these funds and what are successful strategies for investing them.Topics covered include:How closed-end funds differ from open-end mutual funds and ETFs.Why most closed-end funds are bond funds and use leverage.Why closed-end funds can sell at large discounts and premiums.What are managed distribution programs.How to evaluate and select closed-end funds.What is the Income Factory approach to closed-end fund investing.Thanks to LinkedIn and The HPScast for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Why most investors practice both market timing and time in the market. Why it is okay to reduce stock exposure given the coronavirus pandemic threat.What would a stock portfolio return that misses the best or worst days and how likely is that.How do rolling 30-year stock returns differ depending on the starting point.Why are stocks likely to outperform bonds over the next 30 years.What is sequence of return risk. What is market timing.Why long-term investors should never move completely out of the stock market, but it is still okay to adjust stock exposure based on market conditions.What are some additional rules of thumb for market timing.How the coronavirus pandemic has increased financial and economic risks and what to do about it.Thanks to Policygenius and Mint Mobile for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Almost half of Millennials want to retire early. Will that hurt economic growth? There were similar concerns in the 1920s that early retirement would wreck the economy. In fact, there was significant pushback against retiring at all due to fears retirements would destroy the economy. Yet, the Great Depression still came. In this episode, we consider what ended the Roaring Twenties, caused the Great Depression, and how early retirements impact the economy. Topics covered include:What is the paradox of thrift and how does it apply to early retirement.Why the 1920s were called the Roaring Twenties.Why the work culture in the 1920s was for workers to not retire, but "die in the harness."What caused the Great Depression.How economies and job markets adapt over time.How waves of early retirements could change the economy.Thanks to LinkedIn Learning and Vistaprint for sponsoring the episode. Use promo code David to get free shipping from Vistaprint.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What factors lead to hyperinflation, why it is so devastating, how hyperinflation can be overcome and what can individuals do to be prepared for hyperinflation.Topics covered include:What causes inflation and how do central banks manage it.How the causes of hyperinflation differ from more normal levels of inflation.What is the biggest challenge of living in a country with hyperinflation.How Zimbabwe and other countries were able to overcome hyperinflation and how Venezuela is slowly taking steps to combat hyperinflation.Why Zimbabwe is again experiencing high inflation.How individuals can protect against inflation.What individuals can do to prepare for hyperinflation in case it comes.Thanks to Netsuite and Policygenius for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How pandemics have impacted the economy and financial markets. Where does the coronavirus rank in severity compared to other pandemics. What portfolio changes, if any, should investors make in response to the coronavirus pandemic.Topics covered include:Definition of a pandemicThe worst pandemics in the 20th and 21st centuriesWhat are the factors in determining the severity of the coronavirus' impactWhat are the economic ramifications of the coronavirus.How did financial markets perform during previous pandemic episodes.Are there portfolio changes investors should make in response to the coronavirusThanks to Policygenius and LinkedIn Jobs for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How most money, such as currency, bank deposits, money market mutual funds, and repurchase agreements, is really short-term debt, often backed by other debt. As a result, money is subject to runs when investors lose confidence and don't want to own it. That can lead to financial crises.Topics covered in this episode include:How counterfeiting currency works.Why most money is debt backed by debt.How a loss of confidence in money leads to bank runs and other financial crises.How demand for U.S. Treasuries as collateral is keeping interest rates low even though the U.S. federal budget deficit is growing.Why the Federal Reserve is considering capping interest rate yields on U.S. Treasuries and what are the risks of doing so.What can individuals do to protect themselves against financial crisis caused by runs on banks and financial securities.Thanks to Vistaprint for sponsoring the episode. Use promo code: "david" to get free shipping. Also thank you to The Bouqs Company for sponsoring the show. Use promo code: "david" to get 25% off.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How to protect against financial hardship and assist others who are struggling financially.Topics covered include:Why are so many families leaving Central America and seeking to enter the United States.How have U.S. immigration patterns changed.Why immigration leads to higher economic growth.Why unsheltered homelessness is increasing around the world and what strategies have been effective in reducing homelessness.What can individuals do to assist the homeless and others who are in financial distress.Note: The original audio file stated that "oftentimes they [the ayslum seekers] wouldn't ever show up for their court case." That is an inaccurate statement. Most asylum seekers attend their court hearing. The audio has been modified to remove the inaccuracy.Thanks to The Bouqs Co. for sponsoring the episode. Use code: david. Also thanks to Policygenius for being a long-time sponsor of the show.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How investors make money with carry trades, how central banks encourage such trades, and what are the dangers to financial markets and the economy when carry trades get too big.Topics covered include:What are the attributes and examples of carry trades.Why do carry trades exist even though investors can suffer massive losses.What was Volmageddeon and Francogeddan.How central banks are the largest carry traders and their actions encourage even more carry trades.Why carry trades are deflationary and lead to systemic risk.What should individual investors do about carry trades and how to take advantage of carry crashes.Thanks to Robinhood and NetSuite for sponsoring the episodeFor show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What factors determine the well-being of an individual or nation and why gross domestic product is an inadequate measure of prosperity.Topics covered include:Evidence many Americans are poorer than before the Great Recession.Why life expectancy in the U.S. is falling.How satisifiedare U.S. citizens.What is GDP and why is the U.S. Bureau of Economics developing a new methodologyWhat are the flaws with GDP and why does it fall short in measuring well-being.Which countries around the world are the most and least happy and what are the factors that contribute to that happiness.Why were U.S. founding fathers worried about too many luxuries.How the U.S. in the 19th century followed the same manufacturing model that China does today.Thanks to Policygenius and LinkedIn for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How climate change, money, trust and technology will interact to impact financial markets and the economy in the coming decade.Topics covered include:Why we change much more over a decade's time than we predict.What is the best approach for transitioning to a new career.What have stocks and bonds returned over the past decade and what are reasonable return expectations for the decade ahead.Examples of how the impact of climate change is being priced into financial transactions.Why Ray Dalio thinks the world has gone mad and the system is broken.Why uncertainties regarding the creation, use and borrowing of money will be reflected in interest rates.How trust and technology will impact global trade and productivity growth.Thanks to Cove and Sleep Number for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How is it the global economy still functions even though most individuals do not trust brands, public institutions or each other.Topics covered in this episode include:The low level of interpersonal trust around the worldWhat is social capital and how it facilitates a trust economy.What are the incentives that encourage individuals and businesses to produce goods and services rather than steal from each other.How does trust impact economic growth.Does traveling harm or help local residents.Thanks to Masterworks and LinkedIn for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How a safety-first retirement approach using income annuities is more predictable and takes less money than depending entirely on your investment portfolio to fund your retirement.Topics covered include:The difference between a safety-first and probability-based approached to retirement.How income annuities work.Why setting a sustainable retirement withdrawal rates requires planning for below average market returns and above average life expectancy.How using an income annuity and other guaranteed income to fund basic living expenses means not having to set a sustainable withdrawal rate.How long can retirees expect to live.Why most retirement portfolios are not as liquid as retirees think.Why are retirees hesitant to use income annuities and how to overcome the fear of doing so.Thanks to Policygenius and Vistaprint for sponsoring the episode. Use code David50 for Vistaprint.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Two Money For the Rest of Us podcast listeners are struggling with spending money. The first listener is 22 and lives in Canada. He feels as if his money is going everywhere such as saving for a house, car, and retirement, but very little goes to things he enjoys.The second listener is 46 with a $2 million net worth, but in his case, he finds he doesn’t enjoy spending money on himself. He is willing to spend money on his wife and two children, but he still finds himself feeling tight, fearful and worried about money and his business, even though he has plenty of wealth and is close to his goal of financial freedom.In this podcast episode, we consider the standard to use to determine how much to spend on ourselves.Topics covered include:The most difficult part of figuring out how much is enough.What is the Voluntary Simplicity movement and how it can help us decide where to spend our money.What is the difference between comforts and luxuries.What is the difference between joy and pleasure.What is a simple filter we can use to determine where to spend money.Thanks to Masterwork and NetSuite for sponsoring the episode.For show notes and more information on this episode click here.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How regulatory changes could lead to a boom in new ETFs, including actively managed ETFs. Why ETFs continue to be one of the most innovative, cost effective and tax efficient investment vehicles.Topic covered include:How big is the ETF market relative to mutual funds.What are the benefits of ETFs that have allowed them to gain market share from mutal funds.What are some of the negatives with ETFs.What has changed to make it easier for sponsors to launch new ETFs.How do non-transparent actively managed ETFs work.What are some examples of more complicated, outcome-based ETFs.Thanks to LinkedIn and SleepNumber for sponsoring the episode.For show notes and more information on this episode click here.[2:45] The benefits of ETFs[8:40] Challenges with ETFs[12:50] The rules that have changed[15:25] What is an AP Representative?[18:40] Should you invest in actively managed ETFs?[21:30] All about outcome Based ETFs[26:20] Understand what drives performanceSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How to find your unique work that can bring satisfaction and income before and during the traditional retirement years.Topics discussed in this episode include:What is settled work.Why you need time and space to find and do your best work.What is a commonplace book and why it can be helpful.How filters and saying no can help us control our time.The important role of serendipity in finding our path.Thanks to The Great Courses Plus and Vistaprint (use code David50) for sponsoring the episode.For show notes and more information on this episode click here.[0:20] An antique lamp store in Phoenix[3:10] The concept of “Settled Work”[5:30] How do we find our settled work?[7:40] David’s commonplace book[12:15] Why we need settled work[15:00] Take time to reflect[16:05] Take back control of your time[18:00] The art of saying “no”[21:00] Capturing SerendipitySee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Is it possible to be too diversified and how can you tell? Why Warren Buffet thinks diversification is protection against ignorance.Topics covered include:The skills you need to be able to select individual stocks.How have active managers outperformed relative to passive indexing products.How much diversification is too much and a test to determine if one is over diversified.What is factor investing and which factors have worked over the past 200 years.Thanks to LinkedIn and Policygenius for sponsoring the episode.For show notes and more information on this episode click here.[2:22] Exploring the concept of over-diversification[5:25] Should you pay for an investment advisor to select individual stocks?[8:05] An individual investor should choose index funds[11:10] Determining how much diversification is enough?[13:37] Weighing the cost against the benefits[16:10] When being over diversified is possible[17:05] Analyzing the listener question regarding over-diversification[20:20] A Fascinating study analyzing 200 years of factors[25:08] Layer on additional value factorSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

David's book Money for the Rest of Us: 10 Questions to Master Successful Investing is now available (at least the e-book version). To celebrate, here is a bonus episode with excerpts from the forthcoming audiobook.Please enjoy the Introduction and Chapter One.Also, as part of the book launch, David will be hosting an Ask Me Anything (AMA) on Reddit on Wednesday, October 30, 2019 at 1PM Eastern time. Please join us.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What are the timeless principles we can follow in order to become better investors. Topics covered in this episode include:How a book's permanence makes it different from a podcast.How David's book got written and published and why his publisher just recalled the hardcover version of the book.What are the 10 questions we should answer before we invest in anything.Thanks to NetSuite and The Great Courses Plus for sponsoring the episode.For show notes and more information on this episode click here.[0:20] How David decided to write a book.[3:00?] The right book can change your life.[4:20] The art of writing a book.[7:00] The extensive process of writing a book.[9:57] Recording the audiobook.[11:32] Question 1: What is it?[13:36] Question 2: Is it investing, speculating, or gambling?[14:32] Question 3: What is the upside?[15:54] Question 4: What is the downside?[16:42] Question 5: Who is on the other side of the trade?[18:06] Question 6: What is the investment vehicle?[18:58] Question 7: What does it take to be successful?[20:20] Question 8: Who is getting a cut?[21:03] Question 9: How does it impact your portfolio?[22:05] Question 10: Should you invest?[23:06] What happened to the book launchSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What are the benefits and risks of investing in exchange-traded notes (ETNs) compared with ETFs.Topics covered include:How big is the market for ETNs compared with ETFs.How ETNs can do a better job tracking their target index than ETFs.Why ETNs can be more tax-efficient than ETFs..How ETNs have counterparty risk, pricing risk, and liquidity risk.Under what circumstances would an ETN be preferred over an ETF.Thanks to WIX and Policygenius for sponsoring the episode.For show notes and more information on this episode click here.[0:21] ETPs, ETFs, and ETNs—which is the most popular?[3:10] Exchange-Traded Notes exhibit low tracking error.[5:28] ETNs are vastly more tax-efficient than ETFs.[6:14] Examples of Exchange Traded Notes.[10:16] Should there be a default-risk discount on ETNs?[13:34] Why there is issuance and closure risk with ETNs.[17:21] Clarification on the term “Net Asset Value” when referring to ETNs.[17:58] The issues of illiquidity risks and high fees.[20:46] Exchange Traded Notes are a niche product.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Why some analysts believe the Consumer Price Index formula understates inflation while others believe the CPI formula overstates inflation. What really matters to us individually when it comes to inflation.Topics covered in this episode include:What is inflation and what causes it.How is the Consumer Price Index calculated and how has the CPI formula changed over time.What are examples of different CPI measures.Why do some analysts believe U.S. inflation is higher than what CPI states while others believe inflation is lower than what the Consumer Price Index shows.How inflation calculations impact the measurement of other economic data such as the rate of poverty and the growth in real wages.What are consumer attitudes toward inflation and why do central banks worry about changes in household and business inflation expectations.How individuals can monitor and improve their cost of living.Thanks to Sleep Number and Money For the Rest of Us Plus for sponsoring the episode.For show notes and more information on this episode click here.[0:18] Traditional methods of measuring inflation.[4:00] The CPI has changed from a fixed-basket approach to a consumer-representative approach.[6:39] The controversy concerning the accuracy of CPI measurement.[9:11] Is inflation overstated because of how the CPI-U is calculated?[11:23] Rwanda case study: the connection between inflation and poverty.[15:17] Why governments care so greatly about the public’s view of inflation.[17:31] How inflation expectations are measured.[18:52] How do we calculate the desired standard of living?[20:41] The CPI isn’t an accurate depiction of the standard of living.[24:20] Are you satisfied with how you spend your money?See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Why true financial independence means eliminating financial vulnerability including not being overly reliant on stock market appreciation.Topics covered in this episode include:What does it mean to be financially vulnerable.What are the two paths to financial independence.Why we shouldn’t stake our financial independence and early retirement on the historical performance of stocks and bonds.What are the rules of thumb we can use to develop reasonable assumptions for stocks and bonds and how those assumptions will lead to lower portfolio balances compared to using historical returns.What has historical earnings growth been for U.S. stocks.Why stock buybacks will be less in the future due to high debt balances unless companies grow their revenues and overall earnings.How are actions lead to financial independence even when it is difficult.Thanks to Vistaprint and WIX for sponsoring the episode.For show notes and more information on this episode click here.[0:17] Being financially independent begins with a decision. [2:33] Protecting yourself against financial vulnerability. [4:14] Should you solely rely on investment returns for financial stability?  [7:52] Estimating the returns of asset classes. [13:40] Earnings per share drives the returns of the stock market. [17:31] Build an active and flexible strategy for financial stability. [22:49] Uncertainty doesn’t negate the positive effect of small actions.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How a liquidity crunch in the short-term lending markets sent interest rates soaring. Why this is a huge blunder on the part of the Federal Reserve, and what it means for us as individual investors.Topics covered in this episode include:What are repurchase agreements and how are they used to finance U.S Treasuries.How outflows from money market funds and hoarding by banks led to a liquidity crunch that caused repo rates to spike to 10%.Why banks are hoarding reserves held at the central bank even though there are over $1.4 trillion of them, up from $20 billion in 2007.How quantitive easing increases reserves and quantitative tightening reduces reserves.How the Federal Reserve was able to stop the disruption in the repo market, even though the central bank was caught off guard and could have prevented it.How individual investors can protect themselves from unintended consequences arising from the unconventional policies and experiments being conducted by the Federal Reserve and other central banks.Thanks to The Great Courses Plus and LinkedIn for sponsoring the episode.For show notes and more information on this episode click here.[0:20] The Fed loses control over policy rates, and repo interest rates soar.[2:19] What is a repurchase agreement (repo)?[5:02] Why the big players in repos pulled back on Sept. 16th.[8:38] Banks need more liquidity because of regulations.[12:53] Why reserves have fallen so low.[17:43] How does the reserve balance get reduced?[19:23] The Fed may have shrunk it’s balance too far.[21:36] What can be done about the reserve shortage?[24:17] What can we learn from the repo rate raise?See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Why most state and municipal pension plans are underfunded and why that could lead to higher taxes and reduced government services. Why participants in state government retirement systems have greater protection against benefit cuts than participants in municipal retirement systems.Topics covered include:How defined benefit plans work.Why there is more subjectivity regarding valuing a pension plan's liabilities compared with its assets.What does it mean for a pension plan to be underfunded, and why are so many public sector pension plans in that situation.Under what circumstances can a pension plan cut benefits to beneficiaries.Why underfunded pension plans will most likely lead to higher taxes and reduced government services.Thanks to WIX and Peloton for sponsoring the episode.For show notes and more information on this episode click here.[0:18] The crisis of underfunded defined-benefit state and city pension plans.[2:32] Calculating the financial value of a public pension plan.[4:46] What rate of return should public pension plans use?[8:44] Why public pension plans are highly underfunded.[11:34] Kentucky’s 13%-funded pension plan raises red flags.[13:37] Failing to meet the needs upfront causes a funding crisis down the road.[15:33] Why states cannot go bankrupt but cities can.[17:52] How do public sector pension plans affect tax-payers?[20:18] How states and cities are trying to solve the crisis.[21:45] Considering underfunding when deciding what to invest in or where to live.[24:09] How private-sector pension plans could possibly affect tax-payers.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What are the three steps to better manage risk and get what you really want.Topics covered in this episode include:Why goods and services that lessen risk tend to cost more.What is the three-step process for assessing and managing risk.Why defining the risk-free option or asset is critical to managing risk.Why immediate annuities are the retirement risk-free option rather than a conservative investment portfolio.What are the two types of risk and how do we mitigate them.What is the difference between hedging and insuring against risk.Thanks to Dashlane and The Great Courses Plus for sponsoring the episode.For show notes and more information on this episode click here.[0:17] Weighing the risk and knowing how to make a decision under uncertainty.[5:00] Three steps for assessing and managing risk.[9:11] Finding the risk-free asset in a retirement plan.[14:36] Idiosyncratic & systemic risk.[16:40] De-risking and using hedges to create a risk buffer.[20:22] Identifying a sound insurance operation.[23:36] Using flexibility as a risk management strategy.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How inequitable business models like those in the gig economy can lead to a financial crisis, more regulation, and doubts about the viability of the free-market system.Topics covered in this episode include:What is the expanded role of corporations according to leading chief executive officers.What is the gig economy.Takeaways from David’s recent experience delivering restaurant meals for Doordash including the huge liability many independent delivery drivers are unaware of.Who covers the shortfall when the cost of operating a business is less than what consumers are willing to pay for the goods and services the businesses offer.How more regulation results from businesses unfairly passing on costs to others.How income inequality and debt can lead to a financial crisis.Thanks to Policygenius and Sleep Number for sponsoring the episode.For show notes and more information on this episode click here.[0:18] Is Capitalism still working for everyone?[2:12] David’s disappointing gig economy experience.[6:53] The hidden cost of insurance in gig jobs.[9:04] Who pays to close the financial gap created by gigs?[14:27] The pitfalls of the gig economy.[16:17] What makes capitalism work?[19:29] Income inequality is a drag on the economy.[23:09] The importance of calculating the entire cost.[25:36] How your decisions can impact the health of the capitalist economy.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How momentum investing works, what are some of the challenges in implementing it, and how can individuals use momentum in their investment portfolios.Topics covered in this episode include:What is momentum investing and why does it theoretically deliver excess return.Why do momentum strategies suffer through periods of horrendous losses.Why high trading costs and selling a position can be challenges to successfully implementing momentum strategies.What are examples of momentum oriented funds and ETFs.How momentum can be used for making asset allocation decisions and adjusting portfolio risk.Thanks to The Great Courses Plus and Netsuite for sponsoring the episode.For show notes and more information on this episode click here.[0:18] Momentum investing consistently outperforms the market.[5:04] Why does momentum investing work?[7:31] The three challenges of the momentum investing phenomena.[12:50] What happens if investor behavior changes?[14:24] Tactics for implementing momentum into your own portfolio.[20:02] Using dual momentum to move in and out of asset classes.[23:55] Utilizing momentum investing as a swing vote.[28:01] How David uses momentum investing in his portfolio.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How the composition of Tesla's autopilot software gives clues to how we should invest, recognizing there are no perfect algorithms for driving or investing.In this episode you will learn:Why Americans are afraid of self-driving cars.How autonomous automobile software works.Why people reject even the best possible algorithms.What are examples of safety features and rules of thumb we should build into our investing process.Why does everyone think a recession is coming soon even though there is little evidence currently.Thanks to WIX and Dashlane for sponsoring the episode.For show notes and more information on this episode click here.[0:17] The pervading fear of self-driving cars, despite their safety features.[3:33] Why do people fear algorithms and prefer human decision-making?[7:45] Algorithmic decision-making has proven to be most accurate.[10:10] Automating your investing is like choosing an automated vehicle.[12:06] Keeping within the guardrails of investing strategy.[15:44] How to diversify your portfolio as an additional guardrail.[17:31] Is a recession really looming on the horizon?[20:16] Don’t maximize for perfect answers.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What are negative interest rates, why they could come to the U.S. and what investors can do about it.In this episode you will learn:How negative interest rates are even possible.How longer life spans, central bank actions, changing time preferences and the FIRE movement are contributing to negative interest rates.What is the paradox of thrift.How investors can earn a positive return on bonds even if interest rates are negative.What are some indicators to watch for that could signal imminent negative interest rates in the U.S.How individuals need to adjust their lifestyles in an era of negative interest rates.Thanks to Peloton and The Great Courses Plus for sponsoring the episode.For show notes and more information on this episode click here.[0:20] Germany government bonds go negative for the first time.[2:38] Understanding savings: the paradox of thrift. [6:35] The concept of the individual choice and the perceived expense of saving. [11:05] The savings glut could lead to negative interest rates in the U.S.[14:40] Three reasons one would invest in negative-yielding bonds. [18:38] Central banks are influencing the spread of negative-yielding bonds.[20:29] What could happen to the U.S. economy if interest rates fell.[22:11] Three factors David is looking at for an indication of falling interest rates.[25:49] What we can do if U.S. interest rates go negative. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.