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457 afleveringen, van nieuw naar oud
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Breaking Down Our Investment Portfolios
5 november 2026 · 1 uur 30 min
In this episode, we begin with our first client story, featuring Dr. Simon Bérubé, an interventional cardiologist and professor at the Université de Sherbrooke. Simon shares how listening to Rational Reminder helped him approach personal finance with the same evidence-based mindset he brings to medicine. He discusses why financial planning extends far beyond investing, what led him to work with PWL Capital, and how expertise, integration, and oversight can become increasingly valuable as family finances grow more complex. He also reflects on the importance of transparency, intellectual honesty, and using money as a tool to support a meaningful life. Lees meer
Sources From Today's Episode — https://zbib.org/94305cdbe966456384180c72fc89f2f7
Then, Ben Felix and Dan Bortolotti take a personal turn, discussing how they came to their investment philosophies and how they invest their own money. They trace their paths into evidence-based investing, explore how childhood experiences and research on happiness have shaped their views about wealth, and explain the reasoning behind their personal portfolios. From global equities and fixed income to private company ownership, homeownership, and cash reserves, they discuss the trade-offs behind decisions that may not be theoretically optimal but can still make sense for an individual. The conversation is a reminder that a good financial plan is about more than building the perfect portfolio—it is about understanding risk, opportunity cost, and what matters most in life.
Key Points From This Episode:
(0:33:00) First Rational Reminder client story: Why people hire financial advisors.
(2:38:00) Meet Dr. Simon Bérubé, interventional cardiologist and longtime listener.
(4:28:00) Applying evidence-based medicine principles to personal finance.
(5:30:00) Financial planning is broader than investing alone.
(7:43:00) Building an investment philosophy around diversification and low costs.
(12:20:00) Focus on processes, not outcomes.
(15:04…
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A Conversation With The Wealthy Barber (Dave Chilton) | #433
29 oktober 2026 · 1 uur 21 min
In this episode, we welcome back Dave Chilton, author of The Wealthy Barber and one of Canada's most influential voices in personal finance. With his retirement approaching, Dave joins Ben Felix and Cameron Passmore for a wide-ranging conversation about the success of The Wealthy Barber Podcast, the evolution of financial advice in Canada, and the lessons he's learned from decades of helping people navigate their financial lives. Lees meer
We explore why retirement income planning remains an underserved area of financial advice, how to evaluate different advisor fee models, and why strategies like the RRSP meltdown can be valuable for some people but inappropriate for others. Dave also shares his concerns about rising living costs, high investment fees, and the potential economic disruption from AI, while explaining why he remains optimistic about the future of financial planning. Along the way, he reflects on the importance of saving consistently, the challenges of communicating complex financial ideas, and why the best advice starts with understanding the individual.
As Dave prepares to step away from The Wealthy Barber, he also opens up about what retirement means to him, the importance of spending time with family and friends, and the habits that contribute to a happier life. It's a thoughtful, funny, and practical conversation about financial advice, personal finance education, and making the most of the time we have.
Sources From Today's Episode — https://zbib.org/bfd0e870f53f49f7beae3ef7975e60ff
Key Points From This Episode:
(0:02:02) The unexpected success of The Wealthy Barber Podcast and how carefully chosen guests helped build a loyal audience.
(0:04:38) Why retirement income planning and estate planning became two of the most popular topics, and where financial advice has often fallen short.
(0:06:22) How podcasts create a unique connection through storytelling, conversation, and answering real audience questions.
(0:08:15) How the demographics of The Wea…
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How Leveraged ETFs Really Work (Marco Sammon & Chris Murray) | #432
22 oktober 2026 · 1 uur 41 min
In this episode, we are joined by Chris Murray, quantitative researcher and former equity quant and trader, and Marco Sammon, Assistant Professor of Finance at Harvard Business School, for an exceptionally nerdy deep dive into leveraged exchange-traded funds (ETFs). Drawing on their research, Chris and Marco challenge common assumptions about daily rebalancing, volatility drag, and the long-term performance of leveraged products, offering a more rigorous framework for understanding how these investments actually work. Lees meer
We explore the mathematics of compounding, the surprising relationship between leverage and long-term returns, and the competing effects of what Chris and Marco call the "convexity bonus" and volatility drag. They explain why leveraged ETFs don't simply deliver a multiple of an underlying asset's long-term return, how financing costs and fund fees compound over time, and why a stock can rise substantially while its leveraged ETF still underperforms. We also examine how daily rebalancing can affect underlying stock prices, why these effects are more pronounced in volatile, less liquid markets, and how to assess the break-even return required
for leveraged ETFs to outperform their underlying assets.
Finally, we discuss what these findings mean for investors considering leverage as part of a portfolio, the distinction between modest leverage on diversified indexes and speculative single-stock products, and why the right benchmark matters when evaluating investment performance. This conversation challenges some long-held beliefs about leveraged ETFs while offering a clearer framework for understanding their risks, costs, and potential uses.
Sources for this episode - https://zbib.org/123d8b5649124244b85a4f43846a1fb4
Key Points From This Episode:
(0:02:07) How leveraged ETFs target daily returns rather than long‑term multiples.
(0:03:37) Growth of leveraged ETFs, especially single‑stock and crypto products.
(0:04:09) Lottery‑like payoffs and specul…
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The Madness of Markets (Alex Edmans) | #431
15 oktober 2026 · 1 uur 7 min
In this episode, we welcome back Alex Edmans, Professor of Finance at London Business School and author of Grow the Pie, May Contain Lies, and The Madness of Markets. Drawing on academic research and real-world market examples, Alex explores how emotions, social influence, and psychological biases shape investor behavior—and why even apparently irrational markets can be difficult to beat. Lees meer
We examine how a country's stock market can react to a football loss, why investors overreact to exciting stories and underreact to less visible information, and how identical assets can trade at different prices. Alex also unpacks the evidence behind reversal, value, and momentum strategies, the challenges of exploiting market anomalies, and why skewed stock returns make diversification so important. The conversation ultimately returns to a fundamental investing question: even if you can identify market inefficiencies, do you have the edge, patience, and cost advantage needed to benefit from them?
Sources From Today's Episode — https://zbib.org/7d62d23b5efc45f7b0b908b769cbfa92
Key Points From This Episode:
(0:01:49) How losing a World Cup match can affect a country's stock market—and what this reveals about emotion‑driven trading.
(0:03:01) The relationship between weather, sunlight, and market sentiment.
(0:03:49) Spurious correlations and data mining: why an apparent relationship needs a plausible economic explanation and out‑of‑sample testing.
(0:06:42) Wisdom versus madness of crowds: when collective judgments can be useful and when social influence leads investors astray.
(0:09:44) Overreaction in markets, from the pandemic‑era rise of Zoom to the dramatic response to Allbirds' AI rebranding.
(0:12:06) The reversal effect: why past losers can outperform past winners when investors overreact.
(0:12:53) Underreaction to long‑term information, including research linking strong workplace cultures with better stock performance.
(0:14:57) Misreaction and anchoring: how …
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The Truth About Leveraged ETFs | #430
8 oktober 2026 · 1 uur 6 min
In this episode, Ben Felix, Dan Bortolotti, and Kelly Thomas revisit some of the blind spots from their recent discussion about the finances of marriage before diving into a deeply nerdy discussion about leveraged ETFs. Kelly brings a different perspective to questions around spending roles, career sacrifices, financial autonomy, and the mental load of managing household finances. Lees meer
The main discussion explores leverage, human capital, volatility drag, and the long-held belief that daily resets make leveraged ETFs poor long-term investments. Ben explains how his own thinking changed after feedback from the Rational Reminder community and a growing body of research, arguing that daily resets themselves do not cause volatility drag—volatility does. The conversation examines when leverage might make theoretical sense, why the safety of human capital is a critical assumption, and why what looks optimal in a model may be difficult to stick with in real life.
They also examine the practical risks and costs of leveraged ETFs, including financing costs, swap counterparty risk, extreme drawdowns, and the very different experience of leveraged index ETFs versus single-stock leveraged ETFs. The episode ultimately comes back to a broader financial planning question: if your financial goals can be achieved without leverage, do you actually need the additional risk?
Key Points From This Episode:
(0:04:00) Kelly Thomas joins to discuss marriage and money.
(2:33:00) Household roles and mental load complicate "spendthrift vs. tightwad" labels.
(4:32:00) Career sacrifices (leave, reduced hours, missed promotions) carry lasting financial costs.
(5:37:00) Financial autonomy vs. infidelity—transparency doesn't mean loss of independence.
(6:52:00) Financial control can cross into abuse; independent access to money is essential.
(9:19:00) Ben revisits leveraged ETFs, challenging the idea that daily resets inherently cause decay.
(13:26:00) Historical performance of 3X S&P ETFs sh…
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Who Causes Stock Market Anomalies? (w/ Victor Haghani) | #429
1 oktober 2026 · 1 uur 8 min
In this episode, we're joined by Victor Haghani, founder of Elm Wealth and co-author of The Missing Billionaires, for a wide-ranging conversation about how different types of investors shape financial markets. Victor explains the framework behind his forthcoming paper, Who Killed the Random Walk?, and how fundamental investors, static investors, and extrapolators interact to produce momentum, excess volatility, and other market anomalies. Lees meer
We explore why return chasing is different from momentum investing, how investor flows and inelastic demand can move markets, and how the Merton share connects expected returns and risk to portfolio allocation. Victor also discusses long-short direct indexing and tax-loss harvesting, his experiment giving investors tomorrow's Wall Street Journal today, how AI performed in the same trading game, the role of leverage in financial markets, and when borrowing to invest might make sense. We finish with Victor's advice to his younger self: be intentional about financial planning, build financial literacy, and make a plan.
Key Points From This Episode:
(0:01:20) Lessons from The Missing Billionaires—practical insights on sizing and the Kelly criterion.
(0:03:13) Who Killed the Random Walk?—persistent puzzles in stock returns: excess volatility, momentum, fat tails, booms, and busts.
(0:05:06) Victor's three investor types: fundamental value investors, static investors, and extrapolators.
(0:07:54) How static investors amplify market movements through inelastic demand.
(0:11:11) How investor types interact to shape volatility, momentum, and equilibrium.
(0:14:02) Wealth flows between investor types and how they create instability in simulations.
(0:18:15) Distinguishing extrapolative return chasing from systematic momentum strategies.
(0:20:34) How extrapolators create price trends that momentum investors exploit.
(0:23:46) The Merton share—risk premiums, volatility, and risk aversion in determining equity exposure.
(0:26:39) …
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Wealthy People Are Hiding in Plain Sight (ft. Owen Zidar) | #428
24 september 2026 · 1 uur 5 min
What happens when a small group of exceptionally wealthy people holds a growing share of a country's income and wealth? And what can economics tell us about the forces behind that concentration? Lees meer
In this episode, we are joined by Owen Zidar, professor of economics and public affairs at Princeton University and coauthor of the forthcoming book The Everywhere Millionaire. We explore the rise of the millionaire class, how tax policy shapes inequality, and why the geography of wealth matters when trying to understand the economic landscape.
We also discuss the role of entrepreneurship, industry-specific knowledge, and concentrated ownership in building wealth. Owen shares insights from extensive Treasury data, interviews with business owners, and research into the paths taken by millions of entrepreneurs. The conversation examines why access to capital may be less important than practical experience, how private equity can help or hurt business owners, and how local business consolidation can affect both consumers and workers.
Finally, we explore the influence of "everywhere millionaires" on public policy, the impact of interest rates on wealth valuations, and possible ways to expand access to entrepreneurial opportunities without undermining economic growth.
Sources From Today's Episode — https://zbib.org/75a6ae2e79a34ba8b5fb632f54816447
Books From Today's Episode — The Everywhere Millionaire: Who Is Really Rich in America and How They Got There
by Owen ZidarKey Points From This Episode:
(0:01:15) Why the typical wealthy American is more likely to be a business owner than a celebrity or Wall Street executive.
(0:02:12) How "everywhere millionaires" can provide a roadmap for building wealth and understanding inequality.
(0:03:33) The rise of entrepreneurial income among the top 0.1% over the past several decades.
(0:04:48) Why the inequality debate often overlooks wealth generated by private businesses.
(0:05:48) Why the typical millionaire is more likely to …
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What to Know Before (and After) You Hire an Advisor (w/ Matthew Taylor) | #427
17 september 2026 · 1 uur 18 min
In this episode, we're joined by Matthew Taylor, a litigation lawyer with Sotos Class Actions in Toronto who represents retail investors and pension funds in securities class actions. We take a deep dive into what makes a successful negligence claim against a financial advisor, how courts assess fiduciary relationships in Canada, and what investors should look for when evaluating the people managing their money. Lees meer
We explore the evidence that can strengthen or weaken a negligence claim, from one-size-fits-all portfolios and unexplained trades to poor communication and failures to account for changing life circumstances. Matthew also explains the distinction between suitability and fiduciary standards, the factors courts consider when determining whether a fiduciary relationship exists, and why professional affiliations and explicit fiduciary commitments can matter.
The conversation then turns to class actions, including how securities claims differ from individual negligence lawsuits, what makes a claim suitable for class proceedings, and why regulatory investigations, specialist law firms, litigation funding, and parallel U.S. proceedings can provide important signals. We also discuss pension funds, their role as plaintiffs, and why monitoring potential claims and settlements can be part of managing beneficiaries' assets.
Finally, we examine the growing retailization of private assets and the risks created by limited information, complex structures, opaque fees, illiquidity, and manager-determined valuations. Matthew explains what advisors and clients should consider before investing in private funds—and why he expects more litigation in this area. We close with the legal and regulatory challenges created by financial influencers, and how investors and advisors can build greater resilience against misleading financial content.
Key Points From This Episode:
(0:01:04) Advisor errors leading to negligence claims—KYC, KYP, suitability failures, plus warning signs l…
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The Finances of Marriage | #426
10 september 2026 · 1 uur 8 min
In this episode, Ben Felix, Dan Bortolotti, and Ben Wilson take a research-driven look at the finances of marriage, from spending personalities and prenuptial agreements to wedding costs, joint accounts, financial infidelity, and household decision-making. The conversation explores how the way couples think about and manage money can affect both financial outcomes and relationship satisfaction. Lees meer
We unpack the difference between being frugal and being a "tightwad," why tightwads and spendthrifts may be drawn to each other despite having more conflict later, and how simply understanding your partner's spending tendencies can improve financial conversations. We also examine the case for prenups, the role of optimism bias in avoiding them, and how couples can use legal agreements to deliberately design their financial arrangements.
The discussion then turns to wedding spending, including the marketing forces behind engagement-ring conventions and research linking higher spending on rings and weddings with greater divorce risk in some samples. Finally, we look at the evidence for managing money jointly, the risks of financial infidelity, and why both partners should be involved in household financial decisions. The central theme throughout is simple: couples tend to be better served when they approach their finances as a team and communicate openly.
The Tightwad-Spendthrift Scale Quiz — https://umich.qualtrics.com/jfe/form/SV_55xxAQrYK0WRlY2
Sources — https://zbib.org/e8fec478786b4176b5011418f27a3fa4
Key Points From This Episode:
(0:01:00) Why who you marry can be one of the most consequential financial decisions of your life.
(0:04:24) Why marriage changes both the emotional and legal nature of a couple's financial relationship.
(0:07:53) Tightwads vs. spendthrifts: the psychology of the "anticipatory pain of paying."
(0:09:52) Why spending personality has little to do with how much money someone actually spends.
(0:11:34) How understanding your spending tende…
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The Ethics Problem in Financial Services (Dr. Moira Somers & Philippa Hann) | #425
3 september 2026 · 1 uur 24 min
In this episode, we're joined by Philippa Hann and Dr. Moira Somers, co-authors of The Fault Lines of Finance: Understanding and Preventing Financial Misconduct, for a deep dive into why good people can do bad things with other people's money. Philippa brings two decades of experience suing financial advisors, wealth managers, and banks, while Moira brings her expertise as a clinical neuropsychologist working with financial professionals, families, and the human side of money. Lees meer
We explore the psychology and systems that can allow financial misconduct to happen, from financial stress, incentives, and information asymmetry to workplace culture, poor training, exhaustion, and the pressure to please. Philippa and Moira explain why ethical behavior is not simply about knowing right from wrong, and why developing "ethical health" requires understanding your own vulnerabilities, building a moral operating system, and having people you can turn to when doing the right thing becomes difficult.
We also discuss how investors can evaluate financial professionals, why complexity and exciting financial products deserve extra scrutiny, the role of regulators and insurers, and why financial sophistication doesn't necessarily protect people from being exploited. Along the way, Philippa and Moira share case studies illustrating ethical drift, confirmation bias, and the ways seemingly small decisions can compound into serious misconduct. The conversation ultimately makes the case for moral humility, strong relationships, healthy organizational cultures, and the willingness to tolerate discomfort when something doesn't feel right.
Key Points From This Episode:
(0:00:00) Introduction.
(0:02:02) What financial misconduct means and why "other people's money" matters.
(0:02:35) Philippa's 20 years in litigation and the core question: why do good people do bad things?
(0:05:02) Moving beyond harm prevention toward promoting positive change in financial services.
(0:07:36) Why financ…
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50 Years of Evidence-Based Investing (w/ David Booth) | #424
27 augustus 2026 · 1 uur 5 min
In this episode, we welcome back David Booth, Co-Founder of Dimensional Fund Advisors and author of Stay Calm: Learn to Embrace Uncertainty in Investing and Life. David reflects on his remarkable career at the center of the evidence-based investing revolution, from studying under Eugene Fama at the University of Chicago to helping build investment strategies around decades of financial research. Lees meer
We explore what the data revealed about markets and professional money management, why implementation matters as much as great ideas, and how investors can make better decisions without trying to predict the unpredictable. David also shares his views on trust, financial advice, public versus private markets, human ingenuity, and the meaning of true wealth. Along the way, he explains why staying calm, having a process, and staying invested can matter far more than finding the next winning forecast.
Key Points From This Episode:
(0:00:04) Introducing David Booth and his new book, Stay Calm: Learn to Embrace Uncertainty in Investing and Life.
(0:01:15) What David learned as a commission-based shoe salesman: Do the right thing and be upfront with people.
(0:03:35) The gift of being an outsider and how financial science changed the investing experience for ordinary investors.
(0:05:38) Why outsiders are often willing to challenge assumptions—and how data changed the debate.
(0:06:53) David's experience arriving at the University of Chicago and studying under Eugene Fama.
(0:07:49) Inside Chicago's rigorous research culture and the lessons David learned from presenting his work.
(0:10:03) The empirical challenge behind efficient markets and why data mattered more than beliefs.
(0:11:41) How Fama and French approach research by trying to prove their own conclusions wrong.
(0:12:05) The two-fish joke and the challenge of understanding the environment we are immersed in.
(0:12:45) How Jim Lorie and Lawrence Fisher helped provide the historical market data that transforme…
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The Future of AI in the Workplace | Special Episode (Mike Sullivan and Vinay Gidwaney)
25 augustus 2026 · 1 uur 24 min
In this special episode, we are joined by Mike Sullivan, Co-Founder and Chief Growth Officer at OneDigital, and Vinay Gidwaney, OneDigital's Chief Product Officer, to discuss their new book, Workforce Intelligence: The People-First Playbook for Leading Your Company Through AI Transformation. Together, they offer a practical, pro-human framework for navigating a future where artificial intelligence becomes deeply embedded in how organizations operate. Lees meer
We explore why leaders should focus on tasks rather than headcount, how AI can amplify uniquely human capabilities, and why companies may need to rethink how they manage their workforce. Mike and Vinay explain their concepts of reducible and irreducible skills, AI coworkers, workforce intelligence, collaborative AI use, and the importance of building an organizational intelligence layer. They also share practical lessons from OneDigital's own AI transformation—including why leadership activation, trust, reskilling, and a partnership between technical and non-technical leaders are essential.
This conversation offers an alternative to the prevailing narrative of AI-driven job elimination. Instead, it asks a bigger question: if AI can take on more of the work we currently do, what might humans become capable of doing next?
Key Points From This Episode:
(0:00:00) Highlights.
(0:00:25) Introduction.
(0:01:23) Why AI adoption affects employers, employees, and financial markets—and why the conversation is relevant far beyond technology.
(0:02:27) Two possible paths for companies: replacing people with AI or using AI to amplify human capabilities.
(0:03:53) How PWL is already using AI to help financial planners and portfolio managers work more strategically and serve clients better.
(0:06:22) Mike and Vinay's five-year partnership around deploying AI inside OneDigital.
(0:09:07) The "radiating red dot": Why Mike's analysis suggested that up to 25% of OneDigital's workforce could be disrupted by AI.
(0:11:09) "See fa…
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The Biggest Myths in Personal Finance
20 augustus 2026 · 1 uur 14 min
In this episode, Ben Felix and Dan Bortolotti take on 10 of the biggest myths in personal finance and investing. From the idea that young people should save every possible dollar to benefit from compounding, to assumptions about economic growth, dividends, index funds, valuation ratios, stock picking, bonds, gold, and homeownership, they examine the subtle details that can make conventional wisdom misleading. Lees meer
Ben and Dan explore why personal finance is often about balance rather than absolute rules, why spending decisions can be just as important as saving decisions, and how investors can confuse familiar stories with useful financial principles. Along the way, they discuss consumption smoothing, marginal utility, total returns, diversification, valuation, risk, inflation, and the trade-offs between renting and owning.
They also announce a new podcast initiative: future episodes featuring PWL clients discussing their experiences and the impact that financial planning has had on their lives.
Key Points From This Episode:
(0:00:00) Highlights.
(0:00:35) Ben and Dan return to the podcast and discuss recording from PWL's Montreal office.
(0:01:09) A new podcast initiative: PWL clients will join future episodes to discuss their experiences with financial planning.
(0:01:43) A new podcast initiative: PWL clients will join future episodes to discuss their experiences with financial planning.
(0:02:18) How greater clarity about their finances can affect clients' important life decisions.
(0:05:30) Introducing the main topic: 10 of the biggest myths in personal finance.
(0:06:24) Myth #1: You should save as much as possible when you're young to maximize the benefits of compounding.
(0:08:54) Why the marginal utility of consumption may be highest when income and living standards are comparatively low.
(0:11:26) How health, skills, and experiences can also compound over time.
(0:12:31) Why aggressive saving habits can sometimes lead to an inability to spend accum…
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80 Years of Financial Knowledge in 53 Minutes | #422 (Bill Bernstein)
13 augustus 2026 · 54 min
In this episode, we welcome back William Bernstein to discuss the final book of his longtime friend Jonathan Clements, Money and Me. Bill reflects on Jonathan's ideas about spending, happiness, retirement, investing, inheritance, and the psychology of financial decision-making, while sharing personal stories that bring those ideas to life. Lees meer
We explore why material purchases often lose their appeal quickly, why autonomy can be one of the best things money can buy, and how worrying about money can be a greater problem than spending it. Bill also discusses the four horsemen of financial disaster—inflation, deflation, confiscation, and destruction—why diversification matters, and why investors should be skeptical of assumptions about future returns and market forecasts.
The conversation also examines what it means to "win the game" financially, why retirement should be thought of as a verb rather than a destination, and the three foundations of well-being: connection, competence, and autonomy. Bill shares Jonathan's approach to teaching children about money, the concept of "Omega" as a way to think about spending versus saving, and why the people around us can have an enormous influence on our expectations and consumption.
Key Points From This Episode:
(4:56) Why success can contain the seeds of its own destruction—and the role of competition, organizational hubris, and luck.
(6:15) Why dynastic wealth is so difficult to preserve across generations.
(8:28) A hierarchy of spending: material purchases, experiences, autonomy, and the relief from worrying about money.
(10:54) Why some people continue worrying about money no matter how much they have.
(11:44) Why we are poor at predicting what purchases and lifestyle changes will actually make us happy.
(13:36) How to pressure-test large purchases by considering their downsides and their effect on your time.
(14:20) Why the happiness generated by spending does not necessarily scale with the price of a purchase.
(1…
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Barry Ritholtz: "90% of financial products are crap" | #421
6 augustus 2026 · 1 uur 29 min
Barry Ritholtz returns to the Rational Reminder podcast to discuss the biggest mistakes investors make—and why avoiding them may matter more than finding the next great investment. Drawing on decades of experience in markets, wealth management, and financial media, Barry explains why forecasting consistently fails, how investors can distinguish good advice from noise, and why humility, probabilistic thinking, and disciplined behavior are among the most valuable investing skills. Lees meer
Throughout the conversation, Barry shares lessons from his new book, How Not to Invest, covering everything from media consumption and behavioral biases to index investing, portfolio concentration, market cycles, and choosing a financial advisor. He explains why experts are often better at providing context than making predictions, why social media amplifies poor financial advice, and how investors can build processes that help them stay disciplined through uncertainty. The discussion blends academic research, practical experience, and memorable stories into a comprehensive guide for becoming a better long-term investor.
Key Points From This Episode:
(0:04) Cameron and Ben welcome Barry Ritholtz back to the podcast and discuss his new book, How Not to Invest.
(4:12) Why successful billionaires often make poor economic forecasters and how the halo effect leads people to overestimate expertise.
(6:39) Why Wall Street professionals are generally poor at forecasting future market returns despite their domain expertise.
(7:42) What experts are actually good at: providing context, historical perspective, and nuanced analysis rather than predicting the future.
(8:47) Barry's checklist for identifying bad financial advice, including emotional appeals, false certainty, and conflicts of interest.
(10:35) How social media algorithms reward outrage and overconfidence instead of thoughtful investing.
(11:21) Why 24/7 financial news encourages unnecessary action that often hurts long-term invest…
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Answering Your Financial Questions | #420
30 juli 2026 · 1 uur 36 min
In this Ask Me Anything episode, Ben Felix, Ben Wilson, and Louai Bibi tackle a wide-ranging collection of listener questions spanning investing, retirement, family finance, and financial planning. Along the way, they combine academic research, practical experience, and thoughtful discussion to separate evidence-based decisions from intuition. Lees meer
The conversation explores everything from teaching children healthy money habits and the long-term behavioral challenges of value investing to sequence of returns risk, retirement spending strategies, and global portfolio construction. The episode concludes with an in-depth discussion of Louai Bibi's National Financial Planning Award-winning financial plan, highlighting the importance of holistic advice, evidence-based planning, and continuous improvement through client feedback.
Key Points From This Episode:
(00:00:00) Introduction
(0:05:30) Advice for aspiring financial planners: Building skills, credentials, networks, and mentorship early in your career.
(0:07:35) Why young advisors should be "a sponge" and learn from both good and bad professional experiences.
(0:09:41) Ben Felix on completing the CFA, CIM, and CFP early—and why creating content accelerated his learning.
(0:11:51) Why getting large numbers of client-facing "reps" can dramatically improve an advisor's ability to communicate advice.
(0:15:44) Choosing the right firm, team, and mentors—and how networking helped Ben Felix ultimately join PWL.
(0:18:53) Should a young physician borrow from a professional line of credit to invest?
(0:24:55) Robert Merton's perspective on leverage for young investors and the risks of implementing leverage through margin borrowing.
(0:28:21) Why the psychological experience of investing borrowed money can be very different from owning an unleveraged portfolio.
(0:30:35) How much leverage is needed before it meaningfully changes a long-term financial plan.
(0:31:36) Should investors increase their equity allocation be…
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The State of Retirement Research | #419 (Jean-Pierre Aubry)
23 juli 2026 · 1 uur 2 min
In this episode, we are joined by Jean-Pierre Aubry, Associate Director of Retirement Plans and Finance at the Center for Retirement Research at Boston College, for a research-driven conversation about retirement investing, financial advice, pension fund management, and inflation. Drawing from years of empirical research, Jean-Pierre shares insights into how households actually invest, how financial advisors shape portfolio decisions, and why investors often hold asset allocations that differ from their own stated preferences. Lees meer
We also examine the investment strategies of public pension plans, why their increasing reliance on alternative assets has largely failed to deliver superior performance, and the institutional forces driving those decisions. Finally, Jean-Pierre explains how inflation disproportionately affects retirees, why many households overreact during inflationary periods, and why understanding retirement risks—from market volatility to sequence of returns—is critical for long-term financial security.
Key Points From This Episode:
(0:06) Introduction to Jean-Pierre Aubry and the Center for Retirement Research at Boston College.
(6:29) The Center's mission: producing objective, accessible retirement policy research.
(7:03) Why investors' actual stock allocations are higher than their stated ideal allocations.
(9:31) Defaults and target-date funds may explain the gap between desired and actual portfolios.
(10:46) Investors tend to underestimate long-term stock returns and overestimate market risk.
(11:22) Financial advisors generally encourage higher equity allocations by reducing investor pessimism.
(12:06) How advisor compensation can create incentives to recommend higher stock exposure.
(13:42) Research showing advisor recommendations vary more across advisors than across client profiles.
(16:56) The "advisor fixed effect": advisors largely recommend portfolios consistent with their own philosophy.
(18:57) Why working with an advisor often …
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"I Sold 50% of My Portfolio. What Now?" | #418 (AMA)
16 juli 2026 · 1 uur 6 min
In this AMA episode, Ben Felix, Dan Bortolotti, and Ben Wilson tackle a wide range of practical investing questions submitted by listeners. They begin by discussing one of the most common investing mistakes—market timing—and explain why getting back into the market is often harder than getting out. From there, they explore the evidence behind lump sum investing versus dollar-cost averaging, why high valuations rarely justify sitting in cash, and how your discomfort with investing may reveal a mismatch between your portfolio and your true risk tolerance. Lees meer
The conversation also pulls back the curtain on PWL Capital's investment committee, detailing how new investment products are evaluated, how due diligence is conducted, and why even seemingly simple index funds require ongoing scrutiny. They then examine whether any recent Canadian ETF innovations are genuinely useful, discuss retirement-focused T-Series asset allocation ETFs, debate whether gamified trading creates opportunities for active management, and respond to questions about inflation, currency debasement, and the real drivers of long-term stock returns. As always, the episode closes with a lighter listener question before reading a review from the audience.
Key Points From This Episode:
(0:04) Introduction and why AMA episodes continue to resonate with listeners.
(0:55) A listener asks how to reinvest after selling half their portfolio over bubble concerns.
(2:00) Why successful market timing requires being right twice.
(3:04) Why all-time market highs are normal and poor signals for investment decisions.
(4:00) What market valuations can—and cannot—tell us about future returns.
(5:00) The evidence comparing lump sum investing with dollar-cost averaging.
(6:34) Why even the worst historical entry points rarely favor dollar-cost averaging.
(9:07) How investment anxiety often points to an overly aggressive asset allocation.
(11:37) The psychology of buying after market crashes and why investors rar…
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A Financial Plan For Your Entire Life | #417 (Dr. Paul Kaplan)
9 juli 2026 · 1 uur
In this episode, we are joined by Dr. Paul Kaplan, economist, CFA charterholder, former Director of Research at Morningstar Canada, and co-author of Lifetime Financial Advice, for a fascinating exploration of life cycle finance. Drawing on decades of research in economics, portfolio construction, and asset allocation, Paul explains how financial planning should be grounded in optimizing lifetime consumption rather than relying on disconnected rules of thumb. Lees meer
We explore how life cycle finance integrates consumption, saving, investing, and retirement spending into a single framework, why risk tolerance and risk capacity are fundamentally different concepts, and how human capital should be treated as part of an investor's balance sheet. Paul also walks through the life cycle model he and Tom Idzorek developed, explains why traditional retirement rules like the 4% rule lack theoretical foundations, and demonstrates an open-source spreadsheet that allows anyone to experiment with the model for themselves. This conversation brings together economics, portfolio theory, and financial planning into a practical framework for making better lifetime financial decisions.
Key Points From This Episode:
(0:04) Introduction to Dr. Paul Kaplan and the topic of life cycle finance.
(4:38) What life cycle finance is and why consumption smoothing is its central objective.
(5:20) How life cycle models optimize saving, investing, retirement spending, insurance, and annuities.
(6:36) Linking life cycle finance with Harry Markowitz's mean-variance optimization.
(8:38) Why consumption—not wealth accumulation—is the true focus of financial planning.
(9:56) The concept of an economic balance sheet: financial assets, human capital, liabilities, and net worth.
(10:59) Holistic investor profiling beyond traditional risk tolerance questionnaires.
(13:23) Why risk tolerance and risk capacity should never be combined into a single score.
(16:48) Assessing the risk characteristics of human…
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Is VEQT Costing You? (& Other Questions) | #416
2 juli 2026 · 59 min
In this AMA episode, Benjamin Felix, Dan Bortolotti, and Ben Wilson tackle a wide range of listener questions covering portfolio construction, diversification, active management, pensions, fiduciary duty, and short-term investing decisions. They examine whether breaking apart all-in-one ETFs is worth the complexity, why global diversification remains the default despite long stretches of underperformance, and how investors should think about risk when they have defined benefit pensions or short-term financial goals. Along the way, they discuss the limits of active management, why simplicity often beats optimization, and even reveal their favorite board games. Lees meer
Key Points From This Episode:
(0:01:12) Whether investors should replace asset allocation ETFs with individual component ETFs to save on management fees.
(0:01:40) Why simplicity has real economic value—and how small fee savings compare to behavioral costs.
(0:05:38) Portfolio drift, rebalancing discipline, and the hidden costs of managing multiple ETFs.
(0:06:08) How recent fee reductions narrowed the cost gap between VEQT and its component funds.
(0:06:51) When using individual ETF components may make sense for larger portfolios or asset location strategies.
(0:11:16) The hosts share their favorite board games—and why poker has surprising parallels to investing.
(0:15:01) What true diversification actually means beyond simply owning the S&P 500.
(0:16:07) Why the global market portfolio remains the logical starting point for most investors.
(0:19:46) Addressing claims that modern index funds have become "too concentrated."
(0:21:52) Why active managers tend to lose their edge as assets under management grow.
(0:22:15) Diminishing returns to scale and the efficient market for manager skill.
(0:27:03) How defined benefit pensions should factor into portfolio construction and risk capacity.
(0:33:53) Understanding fiduciary duty for Canadian portfolio managers and financial advisors.
(0:37:17) Wh…
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Shannon Lee Simmons: How To Stop Feeling Broke | #415
25 juni 2026 · 1 uur 20 min
In this episode, we are joined by Shannon Lee Simmons—Certified Financial Planner, Chartered Investment Manager, bestselling author, and founder of the New School of Finance—for a wide-ranging conversation about the emotional side of money. Drawing on more than two decades of working directly with Canadians, Shannon explains why financial stress has become so pervasive, how social comparison shapes spending habits, and why a well-built financial plan can be one of the most powerful antidotes to money anxiety. Lees meer
We also explore decision-making during financial crises, the psychology of regret, why traditional budgeting often fails, and how couples navigate money differently—particularly in retirement. Shannon shares practical frameworks for aligning spending with personal values, avoiding emotional financial mistakes, and helping households make confident decisions through life's biggest transitions.
Key Points From This Episode:
(0:03:56) Why people worry about money—and why financial uncertainty often feels like uncertainty about life itself.
(0:04:24) Why so many middle- and upper-income Canadians still feel broke despite earning good incomes.
(0:05:18) The importance of having a financial plan and reducing harmful social comparison.
(0:06:55) How social media fuels overspending, comparison, and "financial dysmorphia."
(0:08:35) Why cashless spending has fundamentally changed our relationship with money.
(0:11:52) How perceived life milestones—especially home ownership—shape financial decisions and expectations.
(0:13:36) Practical ways to manage financial stress, restore confidence, and build resilience.
(0:15:55) The growing "spending arms race" and how rising expectations have redefined what's considered normal.
(0:18:09) Why Shannon dislikes traditional budgeting—and what to do instead.
(0:20:32) Her four-bucket framework for worry-free spending and maintaining financial flexibility.
(0:22:35) A practical test for deciding whether a large purchase …
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Answering Your Financial Questions | #414
18 juni 2026 · 1 uur 15 min
In this episode, Ben Felix and Ben Wilson tackle a wide range of listener questions covering portfolio construction, home-country bias, currency exposure, ETF selection, retirement decumulation, leasing versus buying a car, discounted cash flow valuations, and the real work of portfolio management. Along the way, they revisit the Rational Reminder model portfolios, discuss how new products like CAGE have changed the DIY investing landscape, and explore whether Warren Buffett's long-term record still provides evidence that active management can outperform. Lees meer
The conversation also offers a behind-the-scenes look at PWL Capital's planning-centric approach to wealth management and why helping clients make better financial decisions often matters more than portfolio construction itself.
Key Points From This Episode:
(0:28) Why AMA episodes have become less frequent despite hundreds of listener questions waiting to be answered.
(2:07) Ben shares observations from PWL's growing institutional investment business and why low-cost, planning-focused institutional advice remains surprisingly rare.
(6:37) Revisiting the original Rational Reminder model portfolios and how newer products have simplified implementation.
(10:09) Should U.S. investors underweight the U.S. market relative to global market-cap weights?
(11:07) Research, home-country bias, and Ken French's arguments for overweighting domestic stocks.
(18:11) Asset-allocation ETFs in retirement: Is there any benefit to separating stocks and bonds during withdrawals?
(21:03) Leasing versus buying a vehicle, opportunity costs, depreciation, and convenience.
(26:13) Currency exposure, RRSPs, withholding taxes, and common misconceptions about USD-denominated ETFs.
(30:30) If Dimensional funds were unavailable, what would Ben choose instead?
(31:26) Are there any popular ETFs investors should avoid? A look at Canada's largest ETF holdings.
(38:28) Why discounted cash flow models often produce wildly different valu…
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How Canadian ETFs Actually Work | #413 (Morley Conn)
11 juni 2026 · 1 uur 8 min
In this episode, we are joined by Morley Conn, Director of Sales and Strategy, ETF Services at Scotia Global Banking and Markets, for a deep dive into the mechanics of the ETF ecosystem. With more than 30 years of experience across equities, foreign exchange, and money markets, Morley pulls back the curtain on the creation and redemption process, ETF liquidity, block trading, market making, and the often-overlooked infrastructure that allows ETFs to trade efficiently every day. Lees meer
We explore how authorized participants and market makers facilitate liquidity, why ETF liquidity is driven by the underlying holdings rather than trading volume, and how large institutional ETF trades are executed. Morley also explains the differences between Canadian and U.S. ETF markets, discusses common misconceptions investors have about ETF trading, and shares practical advice for retail investors seeking better execution. This conversation offers a rare look at the operational machinery behind one of the most important innovations in modern investing.
Key Points From This Episode:
(0:04) Introduction to Morley Conn and his role in ETF market making.
(4:29) The key participants in the ETF ecosystem: issuers, custodians, market makers, advisors, and dealers.
(5:53) What market makers and authorized participants actually do.
(7:03) How ETF creation and redemption works and why it matters for liquidity.
(10:58) How ETF portfolio management differs from traditional mutual fund management.
(12:44) Why ETF trading volume often greatly exceeds primary-market creations and redemptions.
(13:35) The capital gains refund mechanism and its relationship to ETF trading activity.
(16:04) What happens when ETF market prices diverge from net asset value (NAV).
(18:24) Lessons from the March 2020 bond ETF dislocations and what they revealed about market pricing.
(19:16) How market makers price ETFs when underlying securities are illiquid or difficult to value.
(20:38) Managing ETF market-mak…
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Ben Carlson: Investing at All-Time Highs | #412
4 juni 2026 · 50 min
In this episode, we are joined by Ben Carlson, Director of Institutional Asset Management at Ritholtz Wealth Management and author of Risk & Reward, for a wide-ranging conversation about market history, investor psychology, and the realities of long-term investing. Ben brings his trademark blend of data-driven thinking and plainspoken storytelling to topics like market crashes, inflation, diversification, and why investors are so tempted to time the market. Lees meer
We explore the lessons from Japan's historic asset bubble, the lingering impact of the Great Depression, and why diversification remains one of the few true free lunches in investing. Ben also explains the difference between volatility and risk, why the stock market is not the economy, and how investor behavior—not market performance—is often the biggest determinant of success. Along the way, we discuss inflation hedges, lost decades, speculative behavior, and the psychological challenge of staying invested through inevitable downturns.
Key Points From This Episode:
(0:00:20) Introducing Ben Carlson, his new book Risk & Reward, and his long-running blog A Wealth of Common Sense.
(0:03:16) Why investors shouldn't panic about investing at all-time highs.
(0:03:58) The Japanese bubble and crash as one of history's biggest market anomalies.
(0:05:39) Why Japan's long-term returns look very different when viewed over 50 years.
(0:06:27) Lessons from the Great Depression and the worst stock market crash in U.S. history.
(0:07:43) Why the best long-term returns often follow the worst crashes.
(0:08:53) The role of diversification and self-awareness in managing portfolio risk.
(0:09:55) Defining investment success by achieving personal goals—not beating benchmarks.
(0:10:42) Why inflation feels so painful psychologically for investors and households.
(0:11:42) Ben's three favorite long-term inflation hedges: human capital, housing, and stocks.
(0:13:47) Why market timing is psychologically seductive—and so …
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Market Simulations & Financial Planning | #411 (John Yang)
28 mei 2026 · 1 uur 17 min
In this episode, Ben Felix and Braden Warwick unpack the surprisingly complex world of expected return modeling and why it matters so much for retirement projections, portfolio construction, and financial advice. They explain how PWL Capital currently estimates expected returns across asset classes, why traditional Monte Carlo methods relying on Gaussian distributions may miss important market behaviors, and how new research could improve the realism of long-term financial planning simulations. Lees meer
The conversation also explores a fascinating collaboration between PWL and Columbia Engineering student John Yang, who worked with Professor Michael Robbins on a project to build more realistic synthetic return data for financial planning. John explains how his team used empirical distributions, t-copulas, and Extreme Value Theory to better capture market crashes, fat tails, and asset co-movements during periods of stress. Ben and Braden then analyze how these improved simulation methods affect financial planning outcomes, sustainable spending estimates, and projections for long-term wealth accumulation.
Key Points From This Episode:
(0:00:00) Introduction to expected return modeling and why it matters for financial planning.
(0:00:25) The importance of volatility, correlations, distribution shape, and time-series behavior in portfolio projections.
(0:01:26) How Scott Cederburg's research on block bootstrapping influenced PWL's thinking on simulations.
(0:02:03) Introduction to Columbia Engineering student John Yang and the industry research collaboration.
(0:03:30) How Conquest Planning allows PWL to upload custom return simulations.
(0:04:05) A new PWL client's detailed reasoning for moving from DIY investing to working with an advisor.
(0:06:22) Why financial planning and Monte Carlo simulations were central to the client's decision.
(0:07:22) Cross-border financial complexity and the value of professional advice.
(0:08:03) Estate planning, cognitive decline, a…
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Episode 410: The State of Investing in 2026
21 mei 2026 · 58 min
In this episode, we are joined by Shelly Antoniewicz, Chief Economist at the Investment Company Institute (ICI), for a data-rich exploration of the modern fund industry. Shelly walks us through the staggering scale of global regulated funds, how ETFs and mutual funds shape capital allocation, and why the rise of indexing may not be as disruptive as critics fear. Lees meer
We discuss the growth of ETFs versus mutual funds, increasing concentration among large fund sponsors, and how financial advisors are reshaping portfolios around low-cost investment products. Shelly also explains why fund fees keep falling, how 401(k) plans have democratized investing for middle-class households, and why investor choice remains central to healthy capital markets. Along the way, we unpack active ETFs, intraday liquidity, interval funds, private credit exposure, and the evolving role of retail investors in financial markets.
Key Points From This Episode:
(0:00:00) Introducing Shelly Antoniewicz and the role of the Investment Company Institute.
(0:01:14) The Investment Company Fact Book and why it has become a foundational resource for fund industry data.
(0:03:31) Regulated funds globally now account for roughly $88 trillion in assets.
(0:04:47) The U.S. market contains nearly 17,000 investment companies across mutual funds, ETFs, and related structures.
(0:05:40) U.S. equity funds alone hold roughly $27 trillion in assets.
(0:06:52) More than half of mutual fund and ETF assets are now in index strategies.
(0:07:40) Why index funds still represent only a minority share of the overall U.S. stock market.
(0:09:48) What academic research says about indexing's impact on price discovery and market efficiency.
(0:13:10) There are nearly 770 fund sponsors in the U.S., though industry concentration continues to rise.
(0:13:42) ETF sponsors experienced enormous inflows in 2025, with 90% receiving net new cash.
(0:15:23) Why the largest fund complexes now control a much larger share of ind…
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Episode 409: Investment Banker - What Private Equity Doesn't Tell You
14 mei 2026 · 1 uur 16 min
In this episode, we are joined by Jeff Hooke, former investment banking, private equity, and private debt executive turned academic critic of alternative investments, for a rigorous and provocative examination of private equity, private credit, and institutional investing. Jeff draws on decades of experience in finance and years of academic research to challenge many of the assumptions driving institutional and retail allocations to private markets. We discuss why pension plans and endowments continue pouring capital into alternatives despite evidence of underperformance, how private market valuations can obscure true risk, and why the fee structures embedded in private funds create enormous hurdles for investors. Jeff explains the methodological challenges of benchmarking private investments, the role of investment consultants and industry incentives, and why illiquidity and opaque reporting make private assets especially difficult for retail investors to evaluate. Along the way, we explore survivorship bias, public market equivalents, unrealized valuations, and the growing push to bring private assets into retirement portfolios. This conversation is an in-depth look at the incentives, risks, and realities shaping the modern alternatives industry. Lees meer
Key Points From This Episode:
(0:00:18) Introduction to Jeff Hooke and the focus on private equity, private credit, and alternative investments.
(0:04:21) Why institutions and retail investors continue allocating heavily to alternatives.
(0:04:33) What institutional investors are and how pension plans and endowments operate.
(0:05:52) Why institutional staff may prefer complexity over simple index investing.
(0:07:55) How early private equity outperformance fueled lasting enthusiasm for alternatives.
(0:08:47) Why trustees often rely heavily on staff and consultants for investment decisions.
(0:09:29) The social and psychological appeal of "exotic" investments.
(0:10:28) Why institutional investors often resist …
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Episode 408: Elroy Dimson – Investing & Optimism
7 mei 2026 · 1 uur 14 min
In this episode, we are joined by Elroy Dimson, Professor of Finance at Cambridge Judge Business School and co-creator of the Dimson-Marsh-Staunton (DMS) dataset, for a sweeping and deeply insightful conversation on financial history, market behavior, and the evolution of global investing. Elroy walks us through the origins of the groundbreaking Triumph of the Optimists, the challenges of assembling over 100 years of global return data, and the critical biases that once shaped our understanding of markets. We explore how expanding beyond U.S.-centric data reshaped expectations for the equity risk premium, why economic growth doesn't necessarily translate into higher stock returns, and what history reveals about diversification, factor investing, and investor behavior. Elroy also shares lessons from his work with major institutions like Norway's sovereign wealth fund, discusses the surprising long-term outperformance of railways, and offers a grounded perspective on future expected returns. This episode is a masterclass in using history to inform better financial decisions. Lees meer
Key Points From This Episode:
(0:04:00) Introduction to Elroy Dimson and the significance of the DMS dataset.
(0:05:07) Why understanding financial history is essential for thinking about the future.
(0:05:24) The origin story of Triumph of the Optimists and assembling global return data.
(0:09:06) How long-term datasets are built from academic and commercial sources.
(0:11:33) Survivorship bias in historical indices and why it matters.
(0:13:35) "Easy data bias" and how it leads to overstated historical returns.
(0:15:32) Accounting for failed markets and geopolitical disruptions in global data.
(0:18:33) How global data changed expectations for the equity risk premium.
(0:21:09) Why 20th-century equity returns were a "pleasant surprise."
(0:22:17) U.S. market dominance and the challenge of extrapolating its success.
(0:24:11) Market composition in 1900 and the dominance of railway s…
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Episode 407: Michael Kothakota - The Shape of Financial Planning
30 april 2026 · 1 uur 19 min
In this episode, we are joined by Michael Kothakota for a deeply technical and thought-provoking conversation on interdependent integrative financial planning theory. Drawing from his background in academic research and real-world advisory practice, Michael introduces a mathematical framework designed to capture the full complexity of financial planning—where decisions across domains like taxes, investments, and estate planning are interconnected and constantly evolving. Lees meer
We explore why traditional economic models fall short in capturing the individualized and multi-dimensional nature of financial planning, and how Michael's approach uses tools like multi-objective optimization and dynamic programming to better reflect reality. He explains how client preferences, time-varying priorities, and uncertainty all interact within the model—and why even identical financial situations can lead to very different optimal decisions. This episode is a deep dive into the mechanics of financial advice, offering a new lens on how planners can create value by integrating decisions across domains and aligning them with what clients truly care about.
Key Points From This Episode:
(0:04:00) Introduction to the episode and why this topic leans heavily into financial planning complexity.
(1:04:00) The core takeaway: integrating all financial planning domains leads to better outcomes than siloed advice.
(5:35:00) What interdependent integrative financial planning theory is—and why interdependencies matter.
(7:16:00) Why traditional economic theories like portfolio optimization and consumption smoothing fall short.
(9:37:00) The central insight: financial planning must account for structure, preferences, and time.
(12:12:00) Modeling financial planning as a complex, preference-weighted system over time.
(14:25:00) Why identical financial situations can still lead to different optimal advice.
(17:50:00) Multi-objective optimization and the competing goals within financial planning…
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Episode 406: When Massive Private Companies Go Public
23 april 2026 · 1 uur 11 min
In this episode, the Rational Reminder team unpacks the mechanics and implications of mega IPOs like SpaceX, OpenAI, and Anthropic potentially entering public indices. They explore how index funds handle IPO inclusion, why newly public stocks tend to underperform, and how structural features of indexing can lead to systematically buying high and selling low. The conversation dives into academic research on IPO returns, the role of free float in index construction, and how evolving market dynamics are forcing index providers to reconsider long-standing rules. They also examine alternative approaches from firms like Dimensional and Avantis, and whether investors are truly missing out by not accessing private markets. This episode blends market structure, empirical evidence, and investor behaviour into a nuanced look at one of the most talked-about investing topics today. Lees meer
Key Points From This Episode:
(0:00:04) Introduction to the Rational Reminder Podcast and hosts.
(0:00:19) PWL Capital expands to Vancouver through partnership with Macdonald Shymko & Company.
(0:03:45) Main topic: "Mega IPOs" and concerns about index fund exposure.
(0:05:00) Why large private companies going public matters for index investors.
(0:06:55) Index funds aim to represent markets—not optimize returns.
(0:08:41) Massive scale of index funds and implications for IPO demand.
(0:10:19) Why IPOs tend to have low expected returns.
(0:12:39) How index inclusion rules differ (S&P 500 vs total market indices).
(0:15:53) Research on "fast-track" IPO inclusion and front-running effects.
(0:18:59) Why mega IPOs may amplify existing inefficiencies.
(0:20:39) Important reminder: indexing trade-offs are small and structural—not fatal.
(0:21:29) Potential solutions like pre-allocating IPO shares to index funds.
(0:23:24) The role of free float in determining index weight.
(0:25:00) NASDAQ rule changes and implications for low-float mega IPOs.
(0:27:40) Conflict of interest concerns in inde…
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Episode 405: Timothy Edwards - Inside S&P DJ Indices
16 april 2026 · 1 uur 4 min
What if the decades-long debate between active and passive investing wasn't really a debate—but a data problem? Lees meer
In this episode, Ben Felix and Cameron Passmore are joined by Tim Edwards, Managing Director and Global Head of Index Investment Strategy at S&P Dow Jones Indices, for a deep dive into the SPIVA Scorecard—the industry's most enduring and data-driven comparison of active versus passive investing.
Tim explains how SPIVA has evolved over 25 years, why survivorship bias matters more than most investors realize, and what the data consistently shows across markets: most active funds underperform their benchmarks—especially over longer time horizons.
The conversation goes beyond the headline results, exploring persistence (or lack thereof) in manager performance, why bond funds don't escape the same fate, and whether combining active funds improves outcomes (spoiler: not really). They also tackle common critiques of indexing, including index rebalancing costs, IPO inclusion concerns, and the role of index funds in market concentration.
Key Points From This Episode:
(0:00:17) Introduction to the SPIVA report and its long-standing role in the indexing vs. active debate
(0:01:18) Overview of the episode: SPIVA, index behavior, IPOs, and market concentration
(0:03:30) What SPIVA is and how it measures active fund performance versus benchmarks
(0:04:14) Why SPIVA was created: to inform—not settle—the active vs. passive debate
(0:05:20) How SPIVA has evolved across regions, asset classes, and research dimensions
(0:06:59) Controlling for survivorship bias and why it materially affects results
(0:08:57) Real-world survivorship rates: ~50–60% of funds survive over 10 years
(0:10:12) Core finding: most active funds underperform, especially over longer horizons
(0:10:57) Comparison of equity vs. bond funds: slightly better outcomes in bonds, but still mostly underperformance
(0:13:44) Structural differences in equity vs. bond markets (e.g., skewness, dispersion)
(0:1… -
Episode 404: The Finance Paper that Changed Everything
9 april 2026 · 1 uur 3 min
What if the way we think about investing—and expected returns—was fundamentally incomplete? Lees meer
In this episode, Ben Felix and Dan Bortolotti take a deep dive into one of the most influential papers in financial economics: Fama and French (1993). With nearly 15,000 citations, this research reshaped how we understand asset pricing by showing that market beta alone isn't enough to explain returns. Instead, multiple factors—specifically size and value—play a critical role.
Ben and Dan unpack how this paper challenged the dominance of CAPM, introduced the now-famous Three-Factor Model, and laid the foundation for decades of empirical asset pricing research. They explore how factor investing evolved, why anomalies may not be anomalies at all, and what this means for evaluating portfolios and active managers today.
The conversation also connects theory to practice—highlighting how modern fund providers implement factor strategies and what it means for investors trying to improve expected returns without abandoning diversification.
Key Points From This Episode:
(0:00:00) Introduction to the episode and why this is a long-awaited deep dive into factor investing.
(0:01:12) Overview of Fama and French (1993) and its massive impact on finance and portfolio management.
(0:03:55) Origins of factor investing and how it connects to index investing and academic research.
(0:04:46) Core premise: multiple factors drive expected returns and asset prices.
(0:06:08) He explains why different assets can have different expected returns, and why that matters for investors.
(0:07:24) Ben introduces the CAPM as the dominant model that linked expected return to market beta.
(0:08:53) Dan reflects on how revolutionary CAPM and portfolio theory were when they were first introduced.
(0:10:51) Ben describes today as a "golden age of investing," where theory and implementation tools are widely accessible.
(0:11:17) He explains how anomalies emerged that CAPM could not explain.
(0:12:10)…
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Episode 403: Patrick Adams - When Stock Crashes Matter for Long-Term Investors
2 april 2026 · 1 uur 4 min
What if your biggest investment risk isn't the stock market—but your own income? Lees meer
In this episode, we are joined by Patrick Adams, a PhD candidate at MIT, for a fascinating deep dive into how income risk, spending commitments, and liquidity constraints reshape what "optimal" investing actually looks like. Drawing on large-scale administrative tax data, Patrick challenges the conventional wisdom that young investors should be heavily—or even fully—invested in equities.
We explore why stocks appear safe over long horizons but become risky when real-world constraints force investors to sell at the worst possible times. Patrick explains how high-income households behave during market downturns, why their income risk is closely tied to stock market performance, and how consumption commitments like mortgages and childcare create hidden financial leverage. The conversation also introduces a new life-cycle model that incorporates these frictions—leading to surprisingly conservative optimal equity allocations for working-age investors. This episode reframes asset allocation as a problem of liquidity and risk management, not just return maximization.
Key Points From This Episode:
(0:00:00) Introduction to the podcast and overview of the episode's focus on asset allocation and new research.
(0:01:18) Patrick Adams' background, MIT PhD research, and how the paper was discovered.
(0:07:08) Why stocks are considered safe for long-term investors based on historical returns.
(0:08:37) When the "stocks for the long run" logic breaks down—forced selling during downturns.
(0:10:35) Evidence: High-income households sell stocks during crashes instead of buying.
(0:12:24) Data source: Administrative U.S. tax return data and its advantages/limitations.
(0:14:23) Investors shift into fixed income during crashes rather than staying invested.
(0:16:52) Financial reality: High wealth, but low liquid assets relative to income.
(0:18:00) Human capital: Income is risky and correlated…
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Episode 402: The Problem with Private Markets
26 maart 2026 · 1 uur 2 min
In this episode, we unpack the growing tension in private markets—private equity, private credit, and private real estate—and examine whether their long-standing appeal holds up under scrutiny. With increasing pressure to bring these investments to retail investors, the discussion explores how illiquidity, valuation opacity, and complex fee structures may be masking risks rather than reducing them. We break down how private assets are marketed, why their "smooth" returns may be misleading, and what recent events—like gated funds and forced asset sales—reveal about their true risk profile. Lees meer
Key Points From This Episode:
(0:00:00) Introduction to the episode and overview of private markets as the main topic.
(0:00:39) Clarifying PWL Capital's full-service wealth management approach beyond asset management.
(0:03:24) Why private markets are under scrutiny and recent negative developments across asset classes.
(0:06:36) The seductive sales pitch: higher returns, lower risk, and low correlation to public markets.
(0:08:32) Private assets explained: what they are and why they appear less volatile.
(0:10:06) "Volatility laundering" and the illusion of stability in private market valuations.
(0:13:51) Retail investors entering private markets and the risk of adverse selection.
(0:15:09) Liquidity challenges and the growing issue of gated funds.
(0:18:33) Why illiquidity is especially problematic for retail investors with uncertain cash needs.
(0:20:41) The debate over whether an illiquidity premium actually exists.
(0:23:56) Trade-offs between liquidity and volatility in portfolio construction.
(0:30:41) Evidence on private equity performance vs. public markets and the role of fees.
(0:31:39) High dispersion in private equity returns and challenges of manager selection.
(0:33:00) Continuation funds and evergreen structures raising valuation concerns.
(0:36:00) Secondary market sales, NAV manipulation concerns, and "NAV squeezing."
(0:40:00) Private credit r…
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Episode 401: Eduardo Repetto & Caitlin Ebanks - Opening the Avantis CAGE
19 maart 2026 · 56 min
What if factor investing in Canada became as simple—and affordable—as buying a single ETF? Lees meer
In this episode, we are joined by Eduardo Repetto, CIO of Avantis Investors, and Caitlin Ebanks, Director of ETF Strategy at CIBC, to unpack the long-awaited launch of Avantis ETFs in Canada. This conversation explores how a partnership built on client-first principles and fee discipline is bringing sophisticated, evidence-based investing strategies to Canadian investors in a dramatically more accessible way.
We dive into the structure and philosophy behind the new ETF lineup, including how Avantis applies factor tilts, why implementation details like direct security ownership and low turnover matter, and how the new asset allocation ETF (CAGE) could simplify portfolio construction for DIY investors. Eduardo also shares insights into Avantis' research process, expected premiums, and the realities of tracking error, while Caitlin explains how CIBC is positioning these products within the Canadian ETF landscape.
This episode is a deep dive into the evolution of factor investing—covering product design, pricing, portfolio construction, and the broader shift toward low-cost, transparent investment solutions.
Key Points From This Episode:
(0:00:00) Introduction to the episode and the significance of Avantis launching ETFs in Canada.
(0:00:42) Why this launch marks a major step forward in accessibility for Canadian factor investors.
(0:02:52) Lower fees and simplified implementation remove key barriers to factor investing.
(0:04:55) Background on Eduardo Repetto and Caitlin Ebanks.
(0:08:12) Avantis surpasses $125B AUM and the drivers behind its rapid growth.
(0:10:20) How the Avantis–CIBC partnership came together and aligned on client-first pricing.
(0:13:04) CIBC's ETF strategy and rationale for partnering with Avantis.
(0:14:49) Overview of the Avantis ETF lineup launching in Canada.
(0:19:33) Fee structure, competitiveness, and expected MER approach.
(0:21:25) El…
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Episode 400: The Evolution of Index Fund Investing
12 maart 2026 · 1 uur 23 min
In this special 400th episode, the Rational Reminder hosts reflect on 50 years of index investing and the profound impact it has had on financial markets, investor behavior, and the cost of investing. The episode features a panel moderated by Ben Felix at the New York Stock Exchange—hosted by Vanguard and S&P Dow Jones Indices—bringing together leading voices in the indexing world to explore how passive investing evolved and what it means for the future of capital markets. Ben is joined on the panel by Tim Edwards (S&P Dow Jones Indices), Jim Rowley (Vanguard), and Shelly Antoniewicz (Investment Company Institute) to discuss the mechanics of indexing, the myths surrounding passive investing, and the evidence on how index funds affect markets. They unpack questions about market concentration, price discovery, and whether indexing is changing the structure of capital markets. Lees meer
Key Points From This Episode:
(0:00:04) Introduction to the Rational Reminder podcast and the hosts from PWL Capital.
(0:00:24) Celebrating the 400th episode and reflecting on nearly eight years of podcasting.
(0:01:09) Dan Bortolotti discusses the early days of podcasting and the transition from the Couch Potato podcast.
(0:02:11) The rise of podcasts and YouTube as major sources of financial education for investors.
(0:02:49) How Rational Reminder grew after Dan ended his previous podcast and the demand for Canadian investing content.
(0:03:47) The podcast reaches a record audience with over 384,000 views and downloads in January 2026.
(0:04:19) Institutional investors—foundations, endowments, and unions—show increasing interest in PWL's low-cost index approach.
(0:06:20) Why indexing can still be a difficult sell for institutional investment committees.
(0:08:25) Peer effects in institutional investing: committees often hesitate to adopt strategies that seem unconventional.
(0:09:11) 2026 marks 50 years since Vanguard launched the first retail index fund in 1976.
(0:10:08) Ben mod…
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Episode 399: James Choi - Portfolio Theory in a Spreadsheet
5 maart 2026 · 1 uur 14 min
In this episode, we welcome back James Choi, Professor of Finance at the Yale School of Management, to unpack one of the most important—and misunderstood—questions in personal finance: How much of your portfolio should be in stocks? Drawing on his new paper, Practical Finance: An Approximate Solution to Lifecycle Portfolio Choice, James walks us through the classic portfolio choice problem first solved by Robert C. Merton, later extended by Francisco Gomes and co-authors, and now made dramatically more usable through a spreadsheet-based approximation. We explore how risk aversion, wealth, labor income risk, and expected returns shape optimal asset allocation, why simple rules like "100 minus your age" aren't terrible but still costly, and how James and his co-authors managed to approximate a complex dynamic optimization model with an error of less than 0.1% in lifetime welfare. Lees meer
Key Points From This Episode:
(0:04) Introduction and why this episode delivers on "mathy roots."
(1:10) James Choi's new paper: Making lifecycle portfolio choice solvable in a spreadsheet.
(5:15) The portfolio choice problem: How much should you allocate to stocks versus risk-free assets?
(6:09) The classic Merton (1969, 1971) solution and the "Merton share."
(8:00) The equity premium formula: Expected excess return ÷ (risk aversion × variance).
(11:20) Extending the model to risky labor income (Cocco, Gomes, and Maenhout).
(14:27) Why labor income behaves bond-like—even when it's risky.
(16:33) How wealth, risk aversion, and labor income characteristics affect optimal equity allocation.
(20:52) Transitory vs. permanent labor income risk—and why permanent risk matters more.
(23:04) Solving thousands of parameter sets to approximate optimal lifecycle allocations.
(27:09) How close is the approximation? ~3–4 percentage points on average, with <0.1% lifetime welfare loss.
(29:56) Comparing to rules of thumb: 100 minus age and 60/40.
(32:08) Why 0% equities is often far worse than…
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Episode 398: Tom Hardin - Ethics, Financial Crime, and Redemption
26 februari 2026 · 59 min
In this episode, we sit down with Tom Hardin, also known as "Tipper X," the former hedge fund analyst who became one of the most prolific informants in the largest insider trading crackdown in U.S. history. Tom walks us through his journey from rule-following soccer referee in Georgia to Ivy League graduate and rising Wall Street analyst—before crossing the line into insider trading at age 29. What makes this conversation so compelling is not just the crime, but how ordinary it felt at the time. Tom explains how small rationalizations, cultural pressures, ambition, and the normalization of questionable behavior gradually eroded his ethical boundaries. After being arrested and recruited by the FBI, he wore a wire 48 times and helped build over 20 cases in Operation Perfect Hedge, exposing widespread misconduct across the hedge fund industry. We explore the psychology of ethical failure, the "fraud triangle," moral licensing, and the difference between ethics in the classroom and ethics in the real world. Tom also reflects on redemption, forgiveness, mentorship, and how he now defines success after losing his finance career. Lees meer
Key Points From This Episode:
(0:04) Introduction to Tom Hardin, former hedge fund analyst turned FBI informant.
(5:15) Tom's conviction: One count of securities fraud and one count of conspiracy after four illegal trades netting $46,000.
(6:11) Early life as a rule-following soccer referee and how ambition shaped his identity.
(8:07) The hedge fund world as a meritocracy—high pressure, high stakes, and performance-driven culture.
(9:13) How insider trading networks operated openly in certain hedge fund circles.
(12:21) The legal definition of insider trading: material non-public information and breach of fiduciary duty.
(15:25) How difficult it is to consistently generate returns without some form of edge.
(16:26) The first insider tip—and the rationalizations that followed.
(19:03) The "fraud triangle": pressure, opportunity, and rati…
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Episode 397: Hendrik Bessembinder - Constant Leverage & Measuring Investor Outcomes
19 februari 2026 · 1 uur 6 min
In this episode, we welcome back return guest Hank Bessembinder for a deeply analytical conversation spanning leveraged ETFs, volatility, and the future of performance measurement. Hank walks us through his latest research on leveraged single-stock ETFs, clarifying the misunderstood concept of "volatility decay" and decomposing returns into rebalancing effects and frictions. The results are striking: meaningful underperformance relative to simple levered benchmarks, driven by both embedded costs and the mechanics of daily resets. In the second half, we shift gears to a more foundational question: What is a return, really? Hank challenges the dominance of arithmetic averages and even geometric means, arguing that neither truly captures the long-term investor experience. He introduces the concept of the sustainable return—a measure based on the cash flows an investment can support without depleting capital—and outlines how it could reshape academic finance and real-world financial planning. Lees meer
Key Points From This Episode:
(0:01:03) Welcome back to Hank Bessembinder and overview of his recent research.
(0:06:16) What "volatility decay" really means—and why the term may be misleading.
(0:09:16) Why volatility does not necessarily reduce mean returns in constant leverage ETFs.
(0:10:11) Ex-ante decision-making and the wedge between mean and median outcomes.
(0:11:26) Single-stock vs. index leveraged ETFs: Similar mechanics, different magnitudes.
(0:12:52) Why past research has been so cautionary about long-term use of leveraged ETFs.
(0:15:53) How rebalancing costs differ for long and short leveraged products.
(0:16:57) The benchmark: Levered buy-and-hold versus constant daily rebalancing.
(0:19:46) Empirical results: Long funds underperform by ~0.8% per month; short funds by ~1% per month.
(0:21:10) Decomposing underperformance into rebalancing effects and frictions.
(0:24:15) The real (though rare) possibility of returns below –100% in leveraged products.
(…
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Episode 396: Theresa Ebden - Protecting Investors at the OSC
12 februari 2026 · 1 uur 5 min
In this episode of the Rational Reminder Podcast, we are joined by Theresa Ebden, Vice President of the Investor Office at the Ontario Securities Commission, for a deep dive into how regulators are thinking about modern investor risks—from AI-powered scams to finfluencers and the gamification of investing apps. Theresa explains how the OSC works to protect investors through policy, education, behavioral research, and direct engagement with the public, and why investor education is one of the most powerful tools regulators have. Lees meer
Key Points From This Episode:
(0:01:55) Overview of the OSC and why its investor research and education work matters.
(5:42) What the Ontario Securities Commission does and its mandate to protect investors and capital markets.
(6:25) Inside the OSC Investor Office: policy, education and outreach, and the investor contact centre.
(9:28) How the Investor Office identifies priority issues using inquiry data, behavioral insights, and global collaboration.
(12:11) The nature of investor inquiries: fraud, crypto confusion, complaints, and recovery room scams.
(14:01) How contact-centre data feeds into education, outreach, and policy responses.
(16:07) Overview of GetSmarterAboutMoney.ca and its role in investor education.
(20:43) Major retail investor risks today: AI-enhanced scams, finfluencers, dark patterns, and gamification.
(24:43) What to do if you're impersonated by AI in scam advertisements.
(29:28) What a "finfluencer" is and the different categories they fall into.
(31:01) Research findings on how strongly finfluencers influence investor decisions.
(32:55) Why non-investors are especially vulnerable to finfluencer advice and social-media scams.
(36:11) How investors can evaluate online financial advice and check credentials.
(38:02) Regulatory challenges in overseeing finfluencers and online financial content.
(41:04) How AI magnifies traditional scams and why AI-enhanced fraud is more effective.
(43:42) Mitigation strat…
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Episode 395: Charles Chaffin - The Psychology of Financial Planning
5 februari 2026 · 1 uur 21 min
Ben Felix and Braden Warwick are joined by Dr. Charles Chaffin, a leading voice in financial psychology, to explore why investors so often act against their own best interests—and how better tools and frameworks can help bridge the gap between rational plans and real human behavior. The conversation blends behavioral finance, goal setting, and risk profiling, while also introducing a new evidence-based risk tolerance questionnaire now being made publicly available to listeners. The episode digs into why humans are wired for short-term survival rather than long-term optimization, how biases and environment shape financial decisions, and why coaching—not transactions—is becoming the advisor's most important role. Charles explains concepts like money scripts, financial flashpoints, identity-based goals, and financial self-efficacy, tying them directly to investing behavior and client outcomes. The discussion also goes deep on financial risk tolerance: what it really is, why people consistently misjudge it, and why psychometric tools outperform traditional questionnaires. Lees meer
Key Points From This Episode:
(0:00:00) Introduction to Episode 395 and guest Dr. Charles Chaffin
(0:01:15) Charles' background in financial planning psychology and authorship
(0:02:30) Why PWL wanted to move beyond the Grable–Lytton Risk Tolerance Scale
(0:03:40) Introduction to the Money and Risk Inventory (MRI) and full disclosure
(0:04:55) Announcement: Public access to a psychometric risk tolerance questionnaire
(0:05:10) Risk tolerance vs. risk capacity—and how PWL combines both
(0:06:43) Why firms must map risk scores to asset allocations themselves
(0:08:35) The role of psychology in financial planning beyond technical advice
(0:10:17) The Klontz–Chaffin model of financial psychology
(0:12:05) Why humans are "bad with money": survival brains and emotions
(0:13:30) How heuristics and biases derail long-term planning
(0:15:42) Tools for overcoming bias: automation, pre-commitment, a…
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Episode 394: Equal Weight vs. Market Cap Weight Index Funds
29 januari 2026 · 1 uur 6 min
Equal-weighted index funds sound like an elegant solution to some of today's biggest investor anxieties: high market concentration, elevated valuations, and outsized influence from a handful of mega-cap stocks. In this episode of the Rational Reminder Podcast, Ben Felix, Dan Bortolotti, and Ben Wilson take a deep, evidence-based look at whether equal weighting actually improves portfolios—or simply introduces new risks under a different name. The discussion breaks down how equal-weighted indices differ fundamentally from traditional market-cap-weighted indexes, why equal weighting has historically outperformed in certain periods, and what's really driving those results beneath the surface. The team explains how equal weighting tilts portfolios toward smaller, cheaper, and more volatile stocks, while also systematically trading against momentum due to frequent rebalancing. Lees meer
Key Points From This Episode:
(0:01:10) Introduction to Episode 394 and discussion about declining enthusiasm over long podcast runs.
(0:02:00) PWL Capital's growing work with institutional clients and why index-based approaches are rare in that space.
(0:05:12) Episode topic introduced: equal-weighted index funds and why listeners keep asking about them.
(0:06:00) Definition of market-cap-weighted vs. equal-weighted indexes using the S&P 500 as the main example.
(0:07:14) Historical outperformance of equal-weighted S&P 500 indexes and why start dates matter.
(0:09:00) Equal weight vs. cap weight performance over the last decade: meaningful recent underperformance.
(0:10:21) Market concentration concerns and why equal weighting appears attractive during periods of high valuations.
(0:12:00) Why market-cap-weighted indexes do not mechanically buy more overvalued stocks as prices rise.
(0:16:14) Trading costs explained: explicit vs. implicit costs and why turnover matters more than TER.
(0:19:16) Capital gains, tax efficiency, and reporting differences between Canadian and U.S. funds.
(0…
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Episode 393: Engineering Financial Outcomes
22 januari 2026 · 1 uur 15 min
What if financial planning were approached the same way engineers design aircraft, medical treatments, or complex systems—with clearly defined objectives, constraints, and rigorous trade-off analysis? In this episode, Benjamin Felix is joined by Braden Warwick for a deep dive into what it means to engineer financial outcomes. Drawing on Braden's background as a PhD-trained mechanical engineer and his work building financial planning software at PWL Capital, the conversation reframes financial planning as a design problem rather than a speculative exercise. They explore the critical distinction between a financial plan and a financial projection, why uncertainty does not invalidate good planning, and how professional communication under uncertainty can build trust with clients—especially those from technical backgrounds. The discussion highlights the importance of goals-based planning, sensitivity analysis, and explicitly quantifying trade-offs when clients have multiple competing objectives. Lees meer
Key Points From This Episode:
(0:00:04) Introduction to Episode 393 and the return of Braden Warwick
(0:02:50) Braden's role at PWL and his experience deploying Conquest Planning software
(0:05:46) The tension between low industry entry barriers and professional standards in financial planning
(0:07:54) Braden's background in mechanical engineering and academia
0:09:33) Financial plans vs. financial projections: why uncertainty doesn't make a plan "wrong"
(0:12:59) Lessons from medicine and engineering on communicating decisions under uncertainty
(0:15:15) An engineering framework for financial planning: objectives first, then solutions
(0:18:42) Why surface-level goals like "minimize tax" or "maximize returns" often miss what really matters
(0:21:19) Evaluating plans against goals using projections, scenario analysis, and sensitivity analysis
(0:24:28) Why sensitivity analysis helps planners focus on what actually drives outcomes
(0:29:27) Handling multiple competing goals u… -
Episode 392: The Rise of ETF Slop
15 januari 2026 · 1 uur 15 min
ETFs were once almost synonymous with low-cost, sensible investing. But that era is changing fast. In this episode, Ben Felix, Dan Bortolotti, and Ben Wilson introduce and unpack the concept of "ETF slop"—the explosion of complex, high-fee, behaviorally engineered ETFs that are designed to attract assets rather than improve investor outcomes. The trio traces how ETFs evolved from simple index-building tools into wrappers for increasingly speculative strategies. They discuss how the ETF "halo effect" can mislead investors into equating structure with quality, and why innovation in financial products often benefits manufacturers more than end investors. From thematic hype to downside "protection" that isn't what it seems, the episode offers a clear framework for thinking critically about modern ETF offerings. Lees meer
Key Points From This Episode:
(0:00:04) Introduction to the Rational Reminder Podcast and the hosts.
(0:00:39) Ben introduces the idea of "ETF slop" and why ETFs are no longer synonymous with sensible investing.
(2:20) More actively managed ETFs now exist than index-tracking ETFs in the U.S.
(3:30) ETFs increasingly engineered to attract assets rather than improve investor outcomes.
(4:04) Record ETF launches in 2025: over 1,000 in the U.S. and 300+ in Canada.
(6:43) Average management fees on newly launched ETFs rival traditional active mutual funds.
(7:47) The ETF "halo effect" and why structure is mistaken for quality.
(10:31) What an ETF actually is—and why it's just a wrapper for a strategy.
(11:13) The first ETF was launched in Canada and still exists today.
(14:40) ETFs as tools for speculation versus long-term investing.
(17:08) Evidence that simpler allocation funds reduce harmful investor behavior.
(20:35) Why too much product choice can make good investing harder.
(21:40) Four categories of ETF slop introduced: thematic, buffer, covered call, and single-stock ETFs.
(22:16) Why thematic ETFs appeal to optimism and extrapolation bias.
(24:04) Evidence… -
Episode 391: How Assumptions Shape Financial Planning Outcomes
8 januari 2026 · 1 uur 16 min
Financial planning is built on assumptions — about markets, inflation, longevity, human behaviour, and even the questions clients bring into the room. In this episode, Ben and Braden welcome a diverse panel that originally came together at the FP Canada Conference to explore how those assumptions influence planning outcomes in practice. Joining them are Adam Chapman, a retirement-focused planner who helps clients turn their money into memories; Joe Nunes, an actuary with decades of pension and longevity experience; and Aaron Theilade, Director of Continuing Education at FP Canada. Together, the panel unpacks how to make assumptions credible, how to stress-test them, how to navigate client bias, and how planners can blend math with humanity to create better client outcomes. Lees meer
Key Points From This Episode:
(0:00:04) Why this episode: recreating a conference panel on planning assumptions.
(0:01:03) Braden on the panel's value for planners and DIY investors.
(0:02:32) Meet the guests: Adam, Joe, Aaron, and Braden.
(0:06:04) Assumptions matter: directional accuracy > prediction.
(0:07:47) Actuarial view: start with inflation, bond yields, and risk capacity.
(0:09:38) Engineering mindset: plan for expected and unexpected outcomes.
(0:13:21) Client pushback: longevity surprises and hidden assumptions.
(0:16:59) Asset allocation: strategic, goal-based, informed by behaviour.
(0:20:57) Software limits: life is too variable for perfect modeling.
(0:22:01) Behaviour gap: retirees spend less over time despite inflation.
(0:25:18) Software guides; planners interpret and humanize outputs.
(0:28:48) Use assumptions based on the specific question (e.g., withdrawals).
(0:30:31) Always ask: "Why are we modeling this?"
(0:34:15) Handling bias: reframe assumptions to reveal inconsistencies.
(0:38:19) Assumptions evolve: returns, spending, and research all change.
(0:42:38) Longevity beliefs: explore "why," not just the data.
(0:50:38) Core truth: every plan is wrong — …
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Episode 390: The "AI Bubble" and Stock Market Concentration
1 januari 2026 · 1 uur 10 min
In this first episode of 2026, we sit down for a deep dive into one of the hottest concerns coming from clients and listeners lately: Is the U.S. stock market dangerously concentrated—and are we in an AI bubble? Ben, Dan, and Ben unpack the data, the history, and the psychology behind today's valuations, drawing lessons from past episodes of market euphoria such as Nortel in Canada, the dot-com boom, and Japan's 1989 peak. They explain why high market valuations—not concentration—pose the bigger challenge, how bubbles historically fuel real economic innovation while hurting investors, and why diversification continues to offer the only reliable protection against unknowable futures. Along the way, they revisit examples of how value stocks, small-cap value, and global diversification have fared across different market regimes. Lees meer
Key Points From This Episode:
(0:00:40) What RR is about: evidence-based insights, synthesis episodes, expert interviews, and long-form inquiry — not debates.
(0:04:20) Why listeners value RR: transparency, friendly inquiry, returning to topics over time, and the hosts' dynamic.
(0:09:25) Rising concern: clients asking whether U.S. market concentration and an AI bubble mean it's time to exit stocks.
(0:11:10) Advisors echo similar worries: U.S. politics, all-time highs, and emotional decision-making.
(0:14:20) Today's data point: Top seven U.S. stocks = 36% of S&P 500; 32% of the total U.S. market — highest on record.
(0:16:10) Why people fear concentration: a decline in the Magnificent Seven could meaningfully drag down the index.
(0:17:30) Canada's cautionary tale: Nortel once hit 36% of the TSX — collapsed to zero — but the market recovered by 2005.
(0:21:20) Bubbles through history: canals, railways, fiber optics, dot-coms — innovation funded by speculation.
(0:25:30) Dot-com parallels: huge ideas, low cost of capital, lots of failures — but lasting infrastructure remained.
(0:28:40) AI dominance: Since ChatGPT, AI-linked compan…
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Episode 389: How the Rational Reminder Podcast is Made
25 december 2025 · 1 uur 17 min
In this special year-end episode, Ben and Cameron turn the spotlight inward for a behind-the-scenes look at the Rational Reminder podcast. They're joined by the extended team that keeps the show running—from compliance to editing to marketing—to reflect on a landmark year in the podcast's evolution. We hear from Multimedia Specialist Matt Gambino, Compliance Reviewer Ross Brayton, long-time Marketing Lead Angelica Montagano, and others who share their roles, personal stories, and what the show means to them. Ben and Cameron also discuss the podcast's growth trajectory, the impact of joining OneDigital, standout market events from 2025, and what's ahead for 2026. It's a thoughtful, personal, and often funny conversation that celebrates community, nerdiness, and meaningful work. Lees meer
Key Points From This Episode:
(0:01:00) Behind the scenes: Why the entire Rational Reminder team joined the mic for this special episode.
(0:01:40) Meet the production crew: From video editing to compliance and marketing.
(0:02:54) From 767 to 334,000: How the podcast grew since August 2018.
(0:04:40) YouTube's rising role: Now 33% of all podcast consumption.
(0:07:24) AMA evolution: How listener Q&As became a regular series in 2025.
(0:08:45) Bringing in PWL advisors: Sharing real-world financial planning experience on the pod.
(0:10:05) 12,500 members: Rational Reminder Community continues to thrive.
(0:11:30) OneDigital acquisition reflections—one year later, no pressure to cut costs or change values.
(0:14:23) Compliance-free growth: Maintaining service levels while scaling the firm.
(0:15:06) Market surprise of 2025: Canadian small caps up 35%+ year-to-date.
(0:16:55) Real estate rewind: National average home prices down 20% since 2022 peak.
(0:19:24) Rent declines too: Down 7% YoY in Toronto, 4.4% in Vancouver.
(0:20:39) Looking back: A wild year of unexpected returns and market resilience.
(0:21:00) A different kind of year-end episode: No highlight reel—just team storyt…
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Episode 388: AMA #11 - Your Parents' Advisor, 100% Equity Portfolios, and Investing $10 Billion
18 december 2025 · 1 uur 21 min
In this special year-end AMA, the full PWL crew — Ben Felix, Cameron Passmore, Ben Wilson, and Dan Bortolotti — sit down together for the first time on the podcast to reflect on the roller-coaster that was 2025 and to tackle a wide range of thoughtful listener questions. The episode begins with reflections on a year that included wild market swings, an extraordinary rally few predicted, major changes within PWL, and personal milestones. From there, the team dives deep into the psychology of staying invested, the real risks of inexperienced investors going 100% equities, the complexity of asset location and pre-tax vs. after-tax allocation, and how to talk to family members who are paying too much in investment fees. Lees meer
Key Points From This Episode:
(0:04) Introduction — first-ever full-team recording and setup for the year-end AMA.
(1:12) Why not all AMA questions could be answered — over 400 submissions and many not suited to the format.
(1:48) 2024 market recap — from early-year panic to strong double-digit global equity returns.
(3:59) The speed of recoveries — why missing a quick rebound can permanently derail returns.
(5:34) Cameron's lessons from 2024 — unpredictability, growing adoption of evidence-based investing, joining a bigger organization, and driverless-car optimism.
(7:41) Ben Wilson becomes a co-host — an unplanned evolution shaped by listener feedback.
(9:51) Dan on humility in forecasting and reconnecting with theoretical research.
(11:18) Ben's personal year — firm acquisition, equity value jump, and navigating his cancer diagnosis.
(12:32) Talking to parents about high fees — emotional dynamics, non-confrontational questions, and the danger of implied judgment.
(23:01) Should beginners hold 100% equities? Behavioral risk, volatility blindness, and why it shouldn't be the default allocation.
(30:35) Pre-tax vs. after-tax asset allocation — why RRSP dollars aren't equal to TFSA dollars and how that changes true risk exposure.
(36:09) Why…
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Episode 387: Lessons from The Wealthy Barber (2025)
11 december 2025 · 1 uur 26 min
In this episode, the team digs into the newly updated 2025 edition of The Wealthy Barber — Dave Chilton's iconic Canadian personal finance book that helped shape millions of financial journeys. Ben, Dan, and Ben walk through the biggest lessons Dave has reworked for a world of high housing costs, social-media-fueled spending pressure, new tax-sheltered accounts, and the ever-present noise of investing advice. This discussion explores why the book remains so effective: it blends timeless principles with approachable storytelling, humor, and deeply practical guidance. The conversation also highlights Dave's real-world insights from reviewing thousands of personal financial situations across Canada. You'll hear how the book explains foundational habits like paying yourself first, why simple investing beats stock picking, how renters can build wealth, and why understanding your own spending is the key to unlocking both financial progress and happiness. Whether you're brand new to money or a seasoned investor, the updated lessons hit harder in 2025 than ever before. Lees meer
Key Points From This Episode:
(0:04) Introduction — recording early and setting up a deep dive into the updated Wealthy Barber.
(0:53) Why the new 2025 edition lands so well: humor, modern references, and timeless lessons.
(1:30) Dave Chilton's real-world insight from reviewing thousands of Canadians' financial situations.
(2:23) Why the storytelling works — characters, humor, and accessible teaching.
(3:45) Inside the narrative: Roy the barber, Matt, Maddie, Jess, Kyle, and the barbershop regulars.
(7:53) Lesson 1: "You can do this" — personal finance isn't about math, it's about simple principles.
(12:08) Lesson 2: Save 10% and pay yourself first — habit beats theory, compounding does the rest.
(14:29) Why saving is hard today: algorithms, FOMO, lifestyle creep, and rising costs.
(16:57) The behavioral case for saving early, even if economists say otherwise.
(18:52) Lesson 3: Be an owner, not a …
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Episode 386: Is anyone doing dd? with Aravind Sithamparapillai
4 december 2025 · 1 uur 16 min
What happens when alternative investments shift from niche products to the industry's go-to value proposition? In this episode, we're joined by financial planner and self-described "pathological nerd" Aravind Sithamparapillai for a rigorous exploration of private markets, product due diligence, advisor incentives, and the narratives driving the surging popularity of alts. Aravind has become known in advisor circles for asking the uncomfortable questions at conferences—the ones that expose gaps in explanations, shaky assumptions, and in some cases, outright contradictions. In this conversation, he shares the stories and analytical frameworks behind his deep dives into mortgage funds, private credit, private real estate, IRR-based marketing, vintage stacking, stale pricing, operational risk, and why even large professional allocators get burned. We explore how advisors are selling alts, how funds are pitching them, what due diligence actually requires, how expected returns can be decomposed, and why illiquidity and "low correlation" benefits rarely play out in practice. Aravind also explains how some funds maintain stable NAVs through "extend and pretend," how gating works, why audited financials aren't a safety blanket, and why even top-tier firms miss red flags. Lees meer
Key Points From This Episode:
(0:00:38) Aravind's introduction and reputation for deep, "pathological" research
(0:02:23) Why alts have become embedded in Toronto's planning culture
(0:03:38) Client pressure, advisor FOMO, and the belief that 60/40 is "broken"
(0:05:31) Aravind's personal path into indexing, factors, and Dimensional
(0:10:46) Why he started digging into alts: curiosity, client conversations, and advisor narratives
(0:13:47) The "conference meme": why he asks questions others avoid
(16:58) The role of intellectual honesty vs. industry narratives
(20:19) The pivotal 2023 mortgage fund story: duration, turnover, and a major contradiction
(22:51) "Extend and pretend": how stable NAVs …