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Episode 385: A Case Study on Pension Benefits vs. Commuted Values

27 november 2025 · 55 min
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In this episode, we feature two conversations that highlight PWL's culture, values, and intentional approach to advice. We first sit down with Trevor Daigle and Brett Watt, founders of EB Wealth in Halifax, to talk about why they chose to merge their thriving independent practice with PWL — PWL's first acquisition in Atlantic Canada. Trevor and Brett open up about what they saw in PWL's infrastructure, culture, and client-first philosophy, the internal hurdles they had to clear (including their own egos), and the moment they realized they "couldn't unsee" what PWL had built. Then, in the second half of the episode, PWL Portfolio Manager and Financial Planner Phil Briggs walks us through a remarkable real-world case. A podcast listener's father decided to take the commuted value of his defined benefit pension… and the family approached PWL to invest it. Rather than simply execute the plan, Phil stepped back to rigorously analyze whether that decision made sense at all. The result is one of the most compelling demonstrations of evidence-based financial planning we've featured on the show — covering risk pooling, tax implications, Monte Carlo results, survivor benefits, and the emotional side of decision-making. Lees meer

Key Points From This Episode:

(0:00:51) Welcoming Trevor and Brett — and why their practice, EB Wealth, aligned so closely with PWL's holistic philosophy.

(0:02:30) How long-term cultural fit, infrastructure, and research depth drove their decision to join PWL.

(0:04:57) "We can't unsee that": The moment a visit to Ottawa convinced them PWL's values were real at every level.

(0:07:45) Their biggest concern: giving up control after years of running an independent practice — and how that shifted.

(0:09:43) Setting aside ego: How thinking long-term and client-first changed their perspective on joining PWL.

(0:11:35) What excites them most about the future: growth, learning, and being surrounded by experts who prioritize client outcomes.

(0:13:17) Seeing P…
Episode 384: Mamdouh Medhat - A Profitability Retrospective, and Private Fund Performance

20 november 2025 · 1 uur 21 min
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In this episode, we're joined by Mamdouh Medhat, VP and Senior Researcher at Dimensional Fund Advisors, for an exceptionally deep, exceptionally nerdy exploration of factor investing—focusing on profitability, value, defensive equity, and the persistent misunderstandings that surround them. Mamdouh walks us through his retrospective paper (co-authored with Robert Novy-Marx) on the profitability premium, why profitability subsumes a wide range of quality metrics, and why it dramatically clarifies how we should think about defensive/low-volatility strategies. He also explains the role of profitability in value's US underperformance since 2007, why price-to-book remains a remarkably effective valuation metric, and how Dimensional incorporates these insights into portfolio construction. In the second half of the conversation, we shift to private markets. Mamdouh unpacks Dimensional's research on buyouts, venture capital, private credit, and private real estate—revealing what percentage of the global investable universe these funds actually represent, how to benchmark them properly, how much dispersion exists across managers, how fair-value accounting changed the game post-2007, and why many perceived diversification benefits are actually just return smoothing. Lees meer

Key Points From This Episode:

(0:04) Intro to Mamdouh Medhat and why his research fits the Rational Reminder "nerdy happy place."

(1:32) The story behind Mamdouh's retrospective paper with Robert Novy-Marx and the impact of the original profitability research on academia and practice.

(5:36) Three things the paper examines: quality investing, defensive/low-risk strategies, and value—unified through profitability.

(6:55) Why none of the 15 major academic and practitioner quality metrics add explanatory power beyond profitability.

(8:18) How spanning tests show profitability explains quality, but quality does not explain profitability.

(12:24) Quality measures largely load on profitability—they're noisier ve…
Episode 383: AMA #10 - Dollar cost averaging & mutual funds vs. ETFs

13 november 2025 · 1 uur 7 min
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In this episode of Rational Reminder, Ben Felix, Cameron Passmore, and Ben Wilson return with a classic AMA format—answering listener questions that dig deep into the behavioral and evidence-based foundations of sensible investing. From lump-sum investing to the psychology of advice, the trio blend data, humor, and clear thinking to demystify complex financial ideas. They discuss the behavioral logic behind dollar-cost averaging, why mutual funds might actually be more tax-efficient than ETFs in Canada, and whether technology could ever truly replace human financial advisors. Plus, they share their biggest investing mistakes (yes, Bitcoin makes an appearance), dissect the rise of "buffered" ETFs, and explain why chasing complexity usually costs investors more than it helps. Lees meer

Key Points From This Episode:

(0:00:05) Introduction – The first episode featuring all three hosts together: Ben Felix, Cameron Passmore, and Ben Wilson.
(0:44) OneDigital update: expanding evidence-based advice across Canada with new PWL partners in Halifax.
(2:36) The mission in motion – bringing the "markets work and planning matters" philosophy to more Canadians.
(5:29) "Finding and funding a good life" – how PWL integrates wellness and happiness into financial planning.
(6:16) AMA Question 1: Lump-sum vs. dollar-cost averaging — why lump-sum wins 65% of the time.
(10:05) Base rates, behavioral regret, and the real role of an advisor.
(12:22) The 2020 PWL paper results and how behavioral hedging fits in.
(16:10) If dollar-cost averaging feels safer, maybe your portfolio is too aggressive.
(18:08) AMA Question 2: Advice for smaller portfolios — how technology, AI, and fee-only planners can fill the gap.
(21:01) Can AI really replace advisors? Cameron's Waymo analogy sparks debate.
(23:33) AMA Question 3: Mutual funds vs. ETFs — why in Canada, mutual funds may actually be more tax-efficient.
(30:00) The Capital Gains Refund Mechanism (CGRM) explained — and why it matters.
(34:31) Dimensional…
Episode 382: Ted Cadsby - The Power of Index Funds, and Being Human

6 november 2025 · 1 uur 19 min
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In this episode, Ben, Cameron, and Dan are joined by Ted Cadsby, former executive at CIBC, author of The Power of Index Funds, Closing the Mind Gap, and Hard to Be Human. Ted brings a rare combination of experience in both finance and cognitive psychology, having helped introduce index investing to Canada before turning his attention to how human thinking itself often misleads us. Ted shares inside stories from his time at CIBC—how he tried to make the bank an indexing leader in the late 1990s, the pushback he faced, and why he still believes so deeply in indexing today. Then, the conversation turns to human cognition: why our brains evolved for simplicity, certainty, and emotion, and how those traits can sabotage both our portfolios and our peace of mind. From "greedy reductionism" and "certainty addiction" to emotional overreaction and competing selves, Ted unpacks the five cognitive design flaws that make it hard to be human—and how metacognition and mindfulness can help us overcome them. Lees meer

Key Points From This Episode:

(0:04) Introduction to the Rational Reminder Podcast and hosts.

(0:18) Cameron's story about rediscovering The Power of Index Funds and reconnecting with Ted Cadsby.

(2:21) How Ted brought index investing to CIBC and tried to make the bank a leader in indexing.

(5:58) Why assessing active managers taught Ted about randomness, noise, and the illusion of skill.

(8:42) The moment Ted "saw the light" on indexing—and why randomness, not market efficiency, is the real obstacle for active managers.

(12:54) How Ted tried to implement index investing at CIBC and the cultural resistance he faced.

(15:05) The goals of The Power of Index Funds (1999) and how he tied indexing to human behavior.

(18:49) How his indexing push created internal conflict at CIBC and ultimately led to his departure.

(23:23) The influence of John Bogle and Vanguard on Ted's mission to bring indexing to Canada.

(26:59) Why he's still passionate about indexing, and what worri…
Episode 381: Investing 101

30 oktober 2025 · 1 uur 25 min
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In this special Investing 101 episode, the Rational Reminder hosts—Ben Felix, Dan Bortolotti, and Ben Wilson—team up to revisit the fundamental concepts that every investor should understand before diving deep into portfolio construction or market theory. Drawing from Ben's original "Investing 101" presentation and years of client experience, the trio lay out why investing matters, how inflation shapes your future, what stocks and bonds really represent, and why a disciplined, evidence-based approach beats prediction and luck every time. They unpack core ideas like financial independence, risk versus volatility, global diversification, and market efficiency, then connect them to practical tools like ETFs and Vanguard's asset allocation funds. Lees meer

Key Points From This Episode:

(0:00:24) Why this episode revisits "Investing 101"—inspired by a listener still unsure how to begin.

(0:05:03) Why investing matters: inflation erodes purchasing power, investing fights back.

(0:06:33) The math of compounding: how a 7% return versus 2% changes your retirement entirely.

(0:10:57) Saving early and often: habit formation beats late-life catch-up.

(0:11:53) The trade-off between saving more and taking more investment risk.

(0:14:04) Utility theory and the psychology of saving when young.

(0:16:39) Marginal utility: when more money no longer adds happiness or purpose.

(0:20:47) Stocks and bonds explained: ownership versus lending and the role of each.

(0:23:11) The Japan story: a cautionary tale about chasing past winners.

(0:26:49) Narrative investing: why investors love stories and get burned by them.

(0:30:19) Market capitalization weighting—how global prices tell you what to own.

(0:33:42) The stock market is not the economy: why news headlines mislead investors.

(0:37:14) The power of diversification: why most individual stocks fail—and a few drive all returns.

(0:41:56) Bonds, volatility, and inflation risk—why "safe" assets aren't risk-free.

(0:44:41) Building y…
Episode 380: John Y. Campbell - Fixing Personal Finance

23 oktober 2025 · 1 uur 23 min
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What if capitalism itself is confusing your personal finance decisions? In this week's episode, Harvard economist John Y. Campbell joins us to unpack his new book, Fixed: Why Personal Finance Is Broken and How to Make It Work for Everyone, co-authored with Tarun Ramadorai. Lees meer

John argues that the financial system—while essential—is failing ordinary people through complexity, hidden costs, and misplaced incentives. Drawing on decades of research in household finance, he explains why products are too expensive, advice too conflicted, and decisions too difficult, and how policy and design can fix it.

Key Points From This Episode:

(0:04) Introduction – Rational Reminder's focus on sensible investing and decision-making.
(1:46) Why Canadian finance feels broken: complexity, branding, and lack of competition.
(4:53) Introducing John Y. Campbell and his new book Fixed.
(5:43) The role of the financial system in everyday life: smoothing income, enabling investment, and managing risk.
(7:14) The two main problems in modern finance—products are too complicated and too expensive.
(9:17) Why financial decisions are so hard: our brains didn't evolve for math, and temptation bias wins.
(11:36) How far financial literacy education really helps—and its limits for inequality.
(14:26) The "corruption of capitalism": how capitalists exploit consumer confusion and misperceived value.
(18:15) Cross-subsidies: how the mistakes of the poor often subsidize the wealthy.
(21:05) Competition only works when consumers can compare price and quality.
(22:15) Financial innovation—when technology helps vs. when it deceives.
(24:24) Conflicts of interest in advice: why "trusted" advisors often don't act in clients' best interests.
(26:26) Why loyal, long-term bank customers often get worse deals.
(27:20) The illusion of opting out: why avoiding finance (or choosing crypto) is "jumping out of the frying pan into the fire."
(30:24) The global emergency-savings problem—why volatility hits the poor ha…
Episode 379: AMA #9: Covered Call ETFs, Currency Hedging, and Bond Misconceptions

16 oktober 2025 · 1 uur 23 min
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In this AMA episode of the Rational Reminder Podcast, Ben Felix and Dan Bortolotti return to answer listener questions across a wide range of topics—from covered call ETFs and dividend tax credits to currency hedging, bond mechanics, leverage, and career reflections. They open with a striking quote from Harvard economist John Campbell on how markets cater to perceived benefits rather than real ones—a perfect setup for their recent discussions on the rise of covered call ETFs. Lees meer

Key Points From This Episode:

(0:59) John Campbell's quote on capitalism's tendency to meet perceived rather than rational needs—and how that perfectly describes the financial industry.

(3:44) Covered calls as the perfect example: products that respond to investor demand for yield, not what's actually in their best interest.

(4:49) Dan compares income-chasing in covered call ETFs to Apple's marketing genius—except in finance, the benefits flow mostly to issuers, not investors.

(5:48) Why dividend bias was relatively harmless, but the covered call craze is not—and how new ETFs "multiply like rabbits."

(7:46) Ben's analysis: in every example studied, covered call investors ended up with less wealth than those holding the underlying equities.

(8:13) The hidden trade-off: holding covered call ETFs is like keeping 25–30% of your portfolio in cash for a decade.

(9:33) Lighter interlude: Dan teases Ben about his lentil (and later cabbage) lunches.

(9:59) First AMA question: Are domestic dividend tax credits already priced into stock valuations? (Short answer: partially, depending on investor composition.)

(12:13) Why even if tax benefits are "priced in," Canadians with favorable tax rates still come out ahead.

(15:58) Hedging currencies in commodity economies like Canada and Australia—when it helps, when it hurts, and why there's no perfect answer.

(18:48) Dan explains why unhedged portfolios can actually be less volatile for Canadians and why most hedging is imprecise and costly in pract…
Episode 378: Learning from Market History

9 oktober 2025 · 52 min
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In this episode, we are joined by Mark Higgins, an award-winning author and institutional investment advisor, to discuss the power and importance of studying US financial history. Mark brings his wealth of knowledge as a financial historian to the show as he shares the value of studying financial history, the role the financial system plays in the overall success of the US, and the impact Alexander Hamilton made on the country. We unpack government debt, the concerning levels of it in America, and the impact of having a central bank before discussing what happens, historically, when a bank is unregulated. Mark describes some early warning signs of a bubble, touches on the historical origins of flawed financial practices, and shares some important lessons we can learn from the history of the US financial system. Hear all about alternative asset classes, evergreen funds, and red flags in the private market. Finally, our guest tells us how he defines his own personal and professional success. This conversation sheds light on the history of finance in the USA and how we can learn from it, so be sure to tune in now! Lees meer

Key Points From This Episode:

(0:00:00) An introduction to Mark Higgins and an overview of today's topics of discussion.

(0:04:16) The value of studying financial history and the role the financial system plays in the USA as a whole.

(0:06:33) Why Alexander Hamilton stands out in US financial history and the importance of government debt.

(0:09:29) Mark discusses the concerning debt levels in America and the impact of having a central bank.

(0:12:29) What happens when banking is unregulated, and key themes across major US financial depressions.

(0:16:48) Some early warning signs of a bubble and the problematic nature of speculation and comparison.

(0:19:42) Historical parallels for crypto and meme stocks and the historical origin of flawed practices in the investment industry.

(0:24:27) Mark shares some of the most important lessons we can learn fro…
Episode 377: Investing in Your Health

2 oktober 2025 · 1 uur 16 min
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Your health may well be the most important investment you ever make, and the earlier you start, the better your outcomes are likely to be. In this episode, Ben Felix is joined by Ben Wilson, Portfolio Manager and Head of M&A at PWL Capital, who steps in as today's co-host to unpack why decisions about exercise, nutrition, sleep, and mental well-being matter just as much as financial ones. They draw clear parallels between compounding wealth and compounding health, showing how small, consistent habits can add up to lasting benefits. Lees meer

Choosing an exercise routine, healthy diet, or financial plan is less about quick fixes and more about finding an evidence-based approach you can stick with over time. Along the way, Ben Felix shares his personal health story with cancer, and the two Bens break down the four pillars of health before reflecting on how relationships and resilience play into long-term happiness. The episode also tackles an essential financial planning topic: the questions every client should ask about their advisor's succession plan. Listen in for a thoughtful conversation that connects the dots between living well and planning wisely!

Key Points From This Episode:

(0:00:00) An introduction to Ben Wilson and an overview of today's topics.

(0:02:01) Breaking down OneDigital's $7 billion recapitalization (and why it's a good thing).

(0:08:26) Recapitalizations explained: liquidity, valuations, and continuity.

(0:15:08) Introducing the main theme: investing in health like investing in wealth.

(0:19:30) An update on Ben Felix's cancer story and the importance of early health checks.

(0:21:13) Investing in your lifespan and your healthspan by building healthy habits.

(0:29:35) Four pillars of health: exercise, nutrition, sleep, and mental well-being.

(0:33:39) Similarities between strength training and saving for retirement: both build reserves.

(0:39:34) Debates surrounding nutrition and enduring principles that are broadly agreed on.

(0:44:44) The …
Episode 376: Climbing The Wealth Ladder

25 september 2025 · 57 min
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Are your financial decisions evolving as your wealth grows? In this episode of the Rational Reminder Podcast, we welcome back Nick Maggiulli to unpack his approach to climbing the wealth ladder and creating the life you want. Nick is the Chief Operating Officer at Ritholtz Wealth Management, the author of The Wealth Ladder and Just Keep Buying, and creator of the blog Of Dollars and Data. He is renowned for his ability to take the complexity out of finance and for his deep knowledge of investing. In our conversation, Nick explains his new framework for building wealth in his new book, The Wealth Ladder, and he unpacks how spending, income, and investing should change from one level to the next. He breaks down his .01% and 1% rules for spending and income, how the opportunity cost of time changes with wealth, and what the data reveals about income, wealth, and asset composition between different levels. Nick also shares strategies to progress between levels, insights on the challenges of extreme wealth, and why focusing on non-financial forms of wealth is important. Join us for a practical, data-driven framework for thinking about financial decisions and what truly constitutes 'enough' with Nick Maggiulli! Lees meer

Key Points From This Episode:

(0:00:00) Nick Maggiull, his new book, and his background at Ritholtz Wealth Management.

(0:03:48) The Wealth Ladder, its different levels, and why he thinks the concept is important.

(0:06:59) Hear about the 0.01% rule for spending, and examples of The Wealth Ladder levels.

(0:12:09) Unpack the 1% rule and how the opportunity cost of time changes up the ladder.

(0:15:00) Explore how income determines wealth and how to move up and down the ladder.

(0:19:47) Which level is the most common to fall, and how wealth changes up the ladder.

(0:22:34) What shifting wealth composition indicates and how to move from level one to two.

(0:25:48) When education should be the focus, and what it takes to move out of level three.

(0:29:41) …
Episode 375: Covered Calls: A Devil's Bargain

18 september 2025 · 1 uur 14 min
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In this episode, Ben and Dan take a deep dive into covered call strategies—popular ETFs often marketed on their eye-catching distribution yields. While these products promise steady "income," the reality is more complicated. Drawing on recent research from the Journal of Alternative Investments ("A Devil's Bargain: When Generating Income Undermines Investment Returns"), Ben and Dan unpack why covered calls often reduce expected returns, cap the upside of equities, and leave investors fully exposed to the downside. They explain how covered calls work, why yields are misleadingly presented as "income," and why long-term investors may find themselves worse off over time compared to simply holding equities or combining equities with cash. The conversation covers live fund performance, behavioral biases that drive demand for yield, and the rise of extreme products like single-stock covered call ETFs with 40%+ "yields." While covered calls may offer psychological appeal for investors who crave distributions, the evidence shows they often deliver lower total returns, higher costs, and asymmetric risk. If it sounds too good to be true, it probably is—and nowhere is that clearer than in the world of covered call ETFs. Lees meer

Key Points From This Episode:

(0:01:09) Why "14% yield" claims on covered call funds are misleading.

(0:02:35) Revisiting covered calls: "A Devil's Bargain" and new research insights.

(0:05:24) The deep-seated investor preference for income—and how fund companies exploit it.

(0:10:10) What a call option is and how it caps upside while leaving downside intact.

(0:14:53) Why selling calls lowers expected returns and distorts stock return patterns.

(0:20:25) The volatility risk premium: theory versus retail investor reality.

(0:22:17) How crowded trades since 2011 erased much of the benefit of covered calls.

(0:24:56) Why stocks' mean reversion makes covered calls especially damaging for long-term investors.

(0:28:11) The illusion of "income": distribut…
Episode 374: The Underperformance of Target Date Funds

11 september 2025 · 56 min
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In this episode, we're joined by David C. Brown, Associate Professor of Finance at the University of Arizona, for a deep dive into the mechanics, performance, and pitfalls of target date funds (TDFs)—the most common investment vehicle in U.S. retirement accounts. David has spent years researching glide paths, benchmarking methods, and industry practices to uncover whether these "set it and forget it" funds actually serve investors well. We unpack why benchmarking TDFs is so difficult, what really drives their underperformance, and how tactical deviations from strategic glide paths often harm investors. David explains how fees, active management, and fund structure combine to create persistent drag—and why dispersion across TDF providers is shockingly wide. We also discuss behavioral challenges, the influence of glide path design, and whether innovations like "indexing the indexers" could improve outcomes. David also shares insights on his side project, the Microsoft Excel Collegiate Challenge, where students compete in gamified problem-solving competitions (yes, Excel on ESPN!), and reflects on his own definition of success. This conversation sheds light on a massively important—but often misunderstood—corner of the retirement landscape, giving investors and plan sponsors practical tools to demand better. Lees meer

Key Points From This Episode:

(0:05:20) What a Qualified Default Investment Alternative (QDIA) is and why TDFs became the default in 2006.

(0:05:50) How target date funds work as "one-stop shops" for retirement savings.

(0:07:12) The glide path concept: why equity allocations decrease with age.

(0:08:04) Why comparing TDFs is hard—fund families design glide paths differently.

(0:10:37) David's benchmarking approach: replicating TDFs with index funds.

(0:15:13) The performance gap: ~1% annual underperformance versus replicating benchmarks.

(0:15:50) Main culprits: higher fees (~55 bps) and poor active management (~45 bps).

(0:18:20) Good news: costs have d…
Episode 373: Asset Allocation in Practice

4 september 2025 · 1 uur 22 min
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What if choosing your asset allocation was as personal as your life story—and as consequential as your retirement? In this episode, we are joined by PWL Capital's Louai Bibi and Ben Wilson for a deep dive into how advisors guide clients through the most important portfolio decision they'll ever make. Louai walks us through the research, psychology, and planning frameworks behind determining the right stock/bond mix, while Ben shares real-world insights from client cases where risk tolerance, pensions, and life events shifted the balance. We explore how Monte Carlo simulations stress-test financial plans, why spouses often disagree on risk, and how pensions act as "bond-like assets" in the bigger picture. Ben Wilson also takes us behind the scenes of PWL's post-OneDigital acquisition journey, revealing why advisors are drawn to join the firm, how succession planning shapes their choices, and why a unified evidence-based philosophy matters in Canada's wealth management landscape. The episode wraps with a fascinating look at surprising stock return outliers—like Build-A-Bear outperforming Nvidia—and what that teaches us about the futility of stock-picking versus the power of diversification. Lees meer

Key Points From This Episode:

(0:01:00) Introducing PWL's Louai Bibi and Ben Wilson—today's topics: asset allocation, advisor succession, and surprising stock return data.

(0:03:35) Louai explains the asset allocation decision: balancing stocks vs. bonds and why it's the biggest choice investors make.

(0:05:12) Why asset allocation matters: inflation erodes purchasing power, and stocks/bonds help investors keep up or outpace it.

(0:06:50) Historical lessons: $1 invested since 1970—outcomes for bonds, balanced portfolios, and 100% equities.

(0:08:35) The risks of downturns: 2008 as a case study in how stocks vs. bonds shape losses and recovery times.

(0:11:39) Risk tolerance questionnaires: how PWL uses surveys to gauge willingness vs. capacity to take risk.

(0:13:45) When …
Episode 372: Elie Hassenfeld - (Approximately) Optimal Philanthropy

28 augustus 2025 · 1 uur 7 min
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In this episode, we are joined by Elie Hassenfeld, Co-Founder and CEO of GiveWell to discuss how data, transparency, and moral trade-offs can guide charitable giving with maximum impact. Elie brings his background in finance and philosophy to the world of global philanthropy—explaining how GiveWell rigorously evaluates programs to determine which ones save or improve lives most effectively. We explore how GiveWell assesses cost-effectiveness, why transparency is a core organizational value, and how moral weights shape grantmaking priorities. Elie also opens up about the challenges of running a high-stakes nonprofit that directs nearly $400 million annually, why global health interventions are often overlooked by traditional donors, and how they navigate philosophical dilemmas like saving a life versus doubling someone's income. This conversation blends finance, ethics, and effective altruism into a compelling framework for anyone who wants to do the most good with their giving. Lees meer

Key Points From This Episode:

(0:01:00) Why charitable giving is a financial decision—and why it deserves evidence-based thinking.

(0:02:20) GiveWell's mission: Using rigorous research to direct donor funds where they'll do the most good.

(0:03:44) How Elie's frustration with vague charity claims led him to co-found GiveWell in 2007.

(0:08:35) The scope of impact: GiveWell's 80-person team now directs ~$395M annually.

(0:10:43) The weight of responsibility: Why directing hundreds of millions of dollars is both gratifying and stressful.

(0:12:22) Radical transparency: Publishing internal debates and mistakes as a matter of principle.

(0:13:06) GiveWell's core values: Maximize impact, transparency, truth-seeking, and deep consideration.

(0:16:25) How GiveWell differs from traditional charity evaluators (like those focused on overhead ratios).

(0:18:15) The business model: GiveWell is a nonprofit funded by donors—no cut taken from giving funds.

(0:21:20) Who gives: A mix of finance a…
Episode 371: Banks Sell Products, Not Advice

21 augustus 2025 · 56 min
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In this episode, Ben Felix and Cameron Passmore take a critical look at the Canadian banking system's mutual fund advice model. A newly released study by the Ontario Securities Commission (OSC) and the Canadian Investment Regulatory Organization (CIRO) confirms what many already suspected: Canadian bank branches aren't in the business of giving impartial advice—they're selling financial products. Ben breaks down the implications of this study, which surveyed nearly 3,000 bank-affiliated mutual fund representatives, uncovering troubling statistics about sales pressure, lack of credentials, misaligned incentives, and poor client outcomes. From limited product shelves and high-fee mutual funds to representatives with minimal financial education, the findings expose systemic flaws in the bank advice model. The second half of the episode is a conversation with Connor and Taylor Hewson, who recently joined PWL Capital after operating their own multigenerational advisory firm. They reflect on the decision-making process, their practice's evolution, and how joining PWL aligned with their mission to deliver better, evidence-based advice to clients. Their story illustrates the professionalization of financial advice in Canada and what's possible when advisors choose client outcomes over product sales. Lees meer

Key Points From This Episode:

(0:02:33) Introducing Connor and Taylor Hewson and their firm's integration with PWL Capital.

(0:03:55) Why Canadians' loyalty to banks puts them at risk of poor financial advice.

(0:06:22) Bank branch "advisors" often lack credentials and act as commissioned salespeople.

(0:08:08) Overview of CBC's 2024 investigation into bank sales practices.

(0:10:11) The OSC and CIRO's comprehensive 2024 survey of bank mutual fund reps.

(0:11:47) One-third of bank reps agree their pay structure prioritizes sales over advice.

(0:13:17) 35% of reps experience sales pressure "often" or "always."

(0:16:32) Almost half of bank reps believe clients would ben…
Episode 370: Dave Chilton (The Wealthy Barber): Timeless Financial Advice

14 augustus 2025 · 1 uur 32 min
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What if the most impactful financial advice isn't about picking the right investment—but about understanding human behaviour, simplifying your life, and laughing along the way? In this episode of the Rational Reminder podcast, we're joined by none other than David Chilton, author of the legendary personal finance book The Wealthy Barber. David shares insights from decades of experience helping Canadians improve their financial well-being through simplicity, frugality, and clarity. We dig into the enduring lessons of his 1989 classic, why the new edition took even longer to write, and what's changed (and what hasn't) in the personal finance landscape. From his views on insurance and home ownership to the psychology of spending, his entertaining yet practical approach makes complex ideas feel surprisingly accessible. We also explore the challenges of dollar-cost averaging, the role of financial advisors, and what it really costs to own a home. And yes, you'll also hear how his mom helped launch Canada's most successful cookbook series. Lees meer

Key Points From This Episode:

(0:20) Introducing David Chilton and his impact on the PWL team

(3:22) Why Dave believes the original Wealthy Barber still holds up

(6:44) His enduring belief in term life insurance and investing the difference

(8:08) What he got wrong: mutual funds, high fees, and underestimating behavioural traps

(11:16) How the book's success changed his life—and what stayed the same

(13:32) The unexpected tipping point that drove its breakout popularity

(15:13) Why he wrote The Wealthy Barber Returns after a long break

(16:41) What excites him most about the new revision and who it's for

(18:29) His kids, Rob Carrick, and the housing crisis: why now was the time

(20:13) Transitioning to videos and podcasts to reach modern audiences

(22:41) The best part of being "The Wealthy Barber"—and what he's learned from readers

(25:34) The surprising volume of portfolios people send him—and why he still reviews them
…
Episode 369: The Most Important Quotes in Investing

7 augustus 2025 · 1 uur 14 min
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In this episode of the Rational Reminder Podcast, Ben Felix and Dan Bortolotti celebrate the show's 7th anniversary with a conversation centered around timeless investing wisdom. Drawing from a vibrant thread in the Rational Reminder community, they unpack dozens of quotes that distill decades of financial insight into actionable mantras. What begins as a curated list of one-liners quickly evolves into a masterclass on the behavioral and practical realities of long-term investing. From "pay yourself first" to "diversification is the only free lunch," Ben and Dan explore how psychological resilience, humility, and clear planning matter more than predictive genius. The quotes spark deep discussions on topics ranging from portfolio construction and risk perception to fees, fear, and investor behavior—each one contextualized with real-world examples. Lees meer

Key Points From This Episode:

(0:04) Celebrating 7 years of the podcast and its growing impact across video and audio platforms.

(1:33) Reflecting on PWL's evolution and the value-aligned advisors looking to join.

(8:00) Introducing the main topic: timeless investing quotes from the Rational Reminder community.

(10:24) "Pay yourself first": Why savings matter more than returns early on.

(14:06) The flaws in one-size-fits-all savings rules like "save 10% of your income."

(15:07) "The investor's worst enemy is himself": Behavioral finance and investor psychology.

(17:17) "This time is different": Templeton's warning against market narratives and FOMO.

(20:31) "Have a philosophy you can stick with": Why strategy persistence matters more than perfection.

(23:59) ARK as a case study: Conviction versus performance-chasing.

(26:38) Buffett on risk: Be ready for 50% drawdowns—even in diversified portfolios.

(28:58) The global market portfolio: Sharpe and Fama's starting point for asset allocation.

(31:50) "Far more money is lost preparing for corrections": Lynch on market timing mistakes.

(35:18) Volatility is emotio…
Episode 368: Jim Rowley & Andy Maack - Implementing Index Funds at Vanguard

31 juli 2025 · 1 uur 13 min
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What if index funds weren't as "passive" as you think? In this episode of the Rational Reminder, we are joined by Jim Rowley, Global Head of Investment Implementation Research, and Andy Mack, Head of US Equity Portfolio Management at Vanguard. These two experts offer a rare, behind-the-scenes look into what it really takes to run some of the world's largest index funds—and it's far from "set it and forget it." From real-time trading decisions to managing $7 trillion globally, Jim and Andy walk us through how Vanguard implements index strategies with a precision that rivals any active manager. They challenge the traditional labels of passive versus active and show how thoughtful implementation, securities lending, FX execution, and IPO participation can add real value for investors—even in low-cost index products. Lees meer

Key Points From This Episode:

(0:04) Why Vanguard's team was the ideal follow-up to Marco Sammon's index research

(1:55) Why index funds aren't as simple as they seem: rebalancing, risk, and strategy

(2:50) "Passive" is a misnomer: why index fund management involves active decisions

(4:42) What excites Jim and Andy about index fund implementation

(7:16) Risk-managed opportunities: how Vanguard adds value during secondary offerings

(8:02) Debunking the active vs. passive label—think in terms of strategy characteristics

(9:41) The subjective calls behind index construction and market definitions

(12:00) The goal of a market-cap weighted index fund and how Vanguard tracks it

(13:28) Why tracking error matters—and when it becomes a business risk

(15:48) Indexing's advantage: predictable relative performance for portfolio construction

(16:15) The real complexity of daily index fund trading and execution strategy

(17:16) Vanguard's unique approach: PMs and traders are the same person in equities

(18:52) The scale of VTI: how 24 global PMs manage trillions across time zones

(20:48) Why Vanguard's culture treats every trade like it's client money

(…
Episode 367: AMA #8 + Insurance Needs Analysis with Louai Bibi

24 juli 2025 · 1 uur 7 min
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What if early RRSP withdrawals aren't always the tax-smart move they're made out to be? In this special AMA edition of the Rational Reminder podcast, Ben and Cameron are joined by PWL Financial Planner Louai Bibi for a wide-ranging discussion on RRSP decumulation strategies, insurance planning, and the practical complexities that real clients face when theory meets reality. Ben walks through a listener's case study and shares insights from colleague Melissa on why early RRSP withdrawals (a.k.a. "meltdown" strategies) are not always beneficial—especially when viewed through a present-value lens. Louai contributes in-the-trenches experience, highlighting how client goals (estate vs. living net worth) and asset allocation can significantly influence what makes sense. In the second half, Louai delivers a comprehensive walkthrough of how PWL approaches life, disability, and critical illness insurance planning—not as salespeople, but as fiduciaries. You'll hear why the right coverage isn't one-size-fits-all, how survivor models are used to project financial impacts, and why the smallest, cheapest policy can still make a life-changing difference. Lees meer

Key Points From This Episode:

(0:00:04) Introduction and full-circle moment: Louai Bibi joins the show.

(0:01:48) Reflections on the first PWL employee summit and One Digital integration.

(0:06:30) Upcoming Rational Reminder meetups in Victoria and Vancouver.

(0:07:40) Steve's question: Should he be melting down his growing RRSP?

(0:09:15) Ben outlines a detailed client case where early withdrawals had minimal benefit.

(0:12:10) Key takeaway: Present value of taxes matters more than total lifetime taxes.

(0:13:50) Melissa's advice: Model your specific situation, not just follow YouTube tips.

(0:15:56) Louai adds: The impact on future investment growth and taxable account drag.

(0:17:28) Systematically reviewing RRSP strategies annually in November.

(0:21:12) Taxes and portfolio construction: Home country bias, withhold…
Episode 366 - Avoiding Investment Scams

17 juli 2025 · 53 min
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What happens when your favourite financial educator's identity is hijacked by scammers? In this episode, Ben and Cameron pull back the curtain on a disturbing but increasingly common reality: sophisticated scammers using Ben's name, voice, and online content to steal from unsuspecting investors. Ben breaks down exactly how these scams work—everything from fake WhatsApp investment groups and cloned emails to AI-generated voice notes and "pig butchering" scams that promise guaranteed returns. You'll hear about pump-and-dump operations, shady PDFs full of financial nonsense, and how scammers prey on optimism, credibility, and fear of missing out. Lees meer

Key Points From This Episode:

(0:04) Why the Rational Reminder podcast builds connections—and unintended consequences of trust

(1:58) The hidden value of the podcast's reach: referrals and relationships that can't be measured

(4:03) How a last-minute topic pivot turned into an urgent discussion on scams

(5:24) Why investment scams are more sophisticated—and dangerous—than ever

(6:16) AI voice clones and impersonation: How deepfakes make scams harder to spot

(9:26) Why specific scam education works better than general warnings

(12:29) Source credibility: Why scammers use trusted names to win trust fast

(15:23) Ben's firsthand story of infiltrating a fake "Ben Felix" WhatsApp trading group

(19:57) Pump-and-dump in real time: How Ben tracked a fraudulent stock scam

(23:39) The email scam that used Ben's name to pitch "secret" investments

(25:08) YouTube comment scams: the "fake advisor" trap and pig butchering explained

(31:15) How scammers use financial jargon that sounds smart—but means nothing

(34:52) The classic red flag: promises of guaranteed, high returns with zero risk

(41:23) Financial planning hot takes: unconventional views from the Rational Reminder Community

(49:44) Upcoming road trips and community meetups for Rational Reminder listeners

Papers From Today's Episode:

https://zbib.org/e42750e4157e46…
Episode 365 – Rob Carrick's Eight Lessons Learned in 27 Years of Covering Personal Finance

10 juli 2025 · 58 min
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In this episode, we welcome back Rob Carrick—one of Canada's most trusted personal finance journalists—for his third appearance on the Rational Reminder podcast. Rob recently retired after an incredible 27-year career at The Globe and Mail, where he shaped how millions of Canadians think about investing, advice, and their money habits. Rob joins Ben, Cameron, and Dan to reflect on the biggest lessons from his decades-long career, the state of Canadian financial advice today, and why young Canadians face headwinds unlike any previous generation. From the shift from mutual funds to ETFs and the rise of DIY investing to the dangers of overestimating stock returns and underestimating inflation's bite—Rob shares practical, timeless wisdom for every generation of investor. We also hear Rob's frank thoughts on how the financial industry fails seniors, why Canadians stick with the big banks despite better options, and what stay the course really means when markets inevitably crash again. Lees meer

Key Points From This Episode:

(0:00:04) Rob Carrick returns for his third appearance, marking his retirement from The Globe and Mail

(0:06:39) Why it's harder than ever to be good with money in the social media age

(0:08:19) How longer lifespans are reshaping traditional retirement timelines

(0:09:51) The evolution of financial advice: from mutual fund sales to real planning

(0:11:45) How regulation, ETFs, and self-interest changed the advisory industry

(0:12:45) The rise of DIY investing in Canada: from brokers to discount online platforms
(0:14:51) Why some investors still struggle to embrace ETFs

(0:17:11) The flip side of frictionless DIY investing—when simplicity fuels speculation

(0:18:19) How realistic are today's stock return expectations?

(0:20:03) The true challenge isn't average returns—it's enduring the volatility

(0:24:01) Why staying the course should really mean buying the dip

(0:26:04) The generational reality check: how boomers bought homes and why today's youn…
Episode 364 – Martijn Cremers: Is the Conventional Wisdom on Active Management Wrong?

3 juli 2025 · 1 uur 1 min
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In this episode, we're joined by Martijn Cremers, Dean of the Mendoza College of Business at the University of Notre Dame and co-author of the groundbreaking 2009 paper that introduced the concept of Active Share. Martijn brings fresh nuance to the long-standing debate over active versus passive management, challenging decades of conventional wisdom built on the foundational 1997 Carhart paper. With his comprehensive research, Martijn argues that dismissing active management may be overly simplistic—especially in less efficient markets like bonds, small-cap equities, or emerging markets. Together, we explore how empirical support for passive superiority has softened in recent decades, the overlooked structural flaws in performance benchmarks, and how closet indexing quietly undermines the active management space. Martijn outlines the three pillars of active success—skill, conviction, and opportunity—and makes a compelling case for patient, high active share strategies that persist over time. Lees meer

Key Points From This Episode:

(0:01:24) Introduction to Martijn Cremers and his influential work on Active Share

(0:04:15) Breaking down the "conventional wisdom" on active management post-Carhart

(0:07:19) Why passive benchmarks like Fama-French factors may create misleading comparisons

(0:09:38) Reviewing persistence of outperformance in high active share funds

(0:12:40) Evaluating Sharpe's arithmetic and how market evolution challenges zero-sum assumptions

(0:15:58) The long-term decline of active funds and the influence of concentrated indexes

(0:18:30) The paradox of skill, ETFs with high active share, and the survival of active managers

(0:21:18) Revisiting active management in underexplored asset classes: bonds, small caps, emerging markets

(0:23:20) The definition and calculation of Active Share

(0:25:01) Active Share vs. Tracking Error: complementary tools, not substitutes

(0:27:22) What level of active share signals closet indexing? Why 60–70% is the key t…
Episode 363 - The (Underappreciated) Risk of Individual Stocks

26 juni 2025 · 49 min
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What if holding just a few "winning" stocks is riskier than it seems? In this episode, Ben and Cameron explore the hidden dangers of concentrated portfolios and unpack the data that makes a strong case for diversification. Drawing from research by Hendrik Bessembinder, J.P. Morgan, and others, Ben lays out the harsh reality behind individual stock returns: the odds are stacked against long-term success. From skewed return distributions and catastrophic losses to behavioral traps like the endowment effect and familiarity bias, this conversation breaks down why most stock pickers lose—and why diversification remains the only "free lunch" in investing. Whether you're holding onto a single stock for tax reasons, overconfidence, or just inertia, this episode is a must-listen reality check on portfolio risk. They also share thoughts on advisor adoption of indexing, the slow shift in Canada, and how a Rational Reminder YouTube video sparked debate between stock pickers and indexers in the comments section. For anyone navigating concentrated positions—voluntarily or otherwise—this episode is packed with data-driven insight and real-world takeaways. Lees meer

Key Points From This Episode:

(0:00) Welcome to Episode 363: catching up in person and the value of working together in-office.

(1:07) Why advisors are slow to adopt indexing—and how culture, compensation, and inertia play a role.

(2:58) Demand is rising: indexing awareness among young advisors and investors continues to grow.

(4:08) Main topic: The hidden risks of individual stock concentration.

(5:40) The Nortel example: taxes, timing, and the illusion of "free" stock.

(6:51) Individual stocks are far riskier than most people realize—especially recent winners.

(9:09) Most investors hold between 3–7 stocks. Why that's a problem.

(11:29) Portfolio concentration = fugu prepared by an amateur chef.

(12:45) Diversification reduces risk without reducing expected return.

(14:04) JP Morgan's "Agony & Ecstasy" report: 44% of…
Episode 362 – AMA #7

19 juni 2025 · 1 uur 12 min
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What if the hardest part of investing isn't building a portfolio—but sticking to it? In this AMA edition of the Rational Reminder podcast, Ben Felix and Dan Bortolotti tackle listener questions ranging from sustainable retirement withdrawals to the dangers of structured products, with plenty of philosophical insights on risk, behavior, and financial planning. The episode opens with a deep dive into the 4% rule, exploring how time horizon, asset allocation, and global data can shift the definition of "safe." They also explore the behavioral challenges of the "boring middle" of investing and why consistency may be the greatest alpha. Other standout segments include a sharp critique of bank-sold structured notes, an evidence-based takedown of trend following, and a fascinating discussion on the long-term impact of demographic shifts and index investing. Throughout, Ben and Dan blend technical insight with practical wisdom and academic research, delivering a thoughtful and entertaining conversation for both DIY investors and those working with advisors. Lees meer

Key Points From This Episode:

(0:01:07) What the latest data says about safe withdrawal rates, especially for early retirees with 100% equity exposure.

(0:08:45) How variable vs. fixed withdrawals affect outcomes—and the trade-offs retirees must consider.

(0:17:01) The behavioral risks of the "boring middle" and how automation or advice helps investors stay disciplined.

(0:26:13) Reflections on market crashes—why hindsight downplays the emotional reality of volatility.

(0:33:27) Commission conflicts: Why bank advisors push structured notes and the incentives behind them.

(0:44:22) Education vs. malice: Are bad financial advisors untrained, conflicted, or both?

(0:49:08) Are structured notes ever justified? (Spoiler: very rarely.)

(0:56:44) Trend following: Legitimate strategy or fancy market timing? Examining the live track records.

(1:02:52) Diversifying your life like a portfolio: Applying the PERMA model to…
Episode 361: Alex Edmans - Finding "The Truth" in Economics, Finance, and Life

12 juni 2025 · 1 uur 5 min
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Today, Ben plays lone host for the first time as we welcome Alex Edmans to the show. Alex is a Professor of Finance at London Business School as well as an accomplished speaker, author, investment banker, and financial advisor. To start, Alex describes his involvement in the formation of a new law in the UK before defining 'misinformation' and where confirmation bias fits in. Then, we assess the impact severity of confirmation bias, biased search versus biased interpretation, the role of generative AI in confirmation bias, and the levels of susceptibility within confirmation bias. We also explore the role of black-and-white thinking in concealing the truth, Alex's Ladder of Misinference as seen in May Contain Lies, the 10,000-hour rule and other famous statements of misinformation, and how the idea of a narrative may influence how people interpret and misinterpret facts. We end with how to guard against the plague of data mining in research, data as evidence and what this implies for evidence in financial economics, and Alex shares helpful advice for determining truth in any circumstance. Lees meer

Key Points From This Episode:

(0:03:27) Alex Edmans walks us through the erroneous evidence that influenced a new UK law.

(0:07:13) Misinformation; living in a post-truth world; and where confirmation bias fits in.

(0:12:06) The severity of confirmation bias, and biased search versus biased interpretation.

(0:18:19) Unpacking generative AI and the susceptibility thresholds of confirmation bias.

(0:21:25) How black-and-white thinking makes the truth more elusive.

(0:25:40) Understanding Alex's Ladder of Misinference as seen in May Contain Lies.

(0:28:17) Debunking the 10,000-hour rule and other enduring statements of misinformation.

(0:38:10) The second step on the Ladder of Misinference: Why facts are not data.

(0:42:42) How the idea of a narrative influences how people interpret or misinterpret facts.

(0:44:25) Why data is not evidence, and examining the plague of data…
Episode 360 – Gerard O'Reilly: The Components of Net Returns

5 juni 2025 · 1 uur 16 min
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What if "just buying the market" isn't the end of the story? In this episode, we are joined by Gerard O'Reilly, Co-CEO and Co-CIO of Dimensional Fund Advisors, for a deep dive into what really drives net investment returns. Gerard returns to the Rational Reminder podcast to explain the key principles that differentiate Dimensional's approach from traditional indexing—and why implementation, flexibility, and detail matter so much more than investors might think. We explore the concept of hidden costs in index investing, how index reconstitution and trading frictions erode returns, and the nuanced decisions that shape a market portfolio: defining the market, excluding low-returning stocks, optimizing tax efficiency, and more. Gerard breaks down how Dimensional's rules-based, evidence-backed process improves outcomes through smart exclusions (like IPOs and high asset-growth firms), precise trading, securities lending, and better handling of corporate actions. From the dangers of chasing low fees to the surprising benefits of thoughtful execution, this conversation is a masterclass in next-level investing. Lees meer

Key Points From This Episode:

(0:01:07) Why Gerard was invited back: Dimensional's approach to hidden costs and net returns.

(0:02:38) Looking beyond "index good, fees bad"—why investors should dig deeper.

(0:04:21) Gerard's background: From Caltech rocket scientist to Dimensional co-CEO.

(0:06:22) How Dimensional differs from market-cap weighted index funds.

(0:08:42) Four components of net returns: Two increase returns, two decrease them.

(0:12:45) Defining the market: Free float, liquidity thresholds, and dynamic inclusion.

(0:17:52) How small-cap index definitions can create return differentials as high as 10%.

(0:22:03) What securities Dimensional excludes—and why: low-profitability growth, high asset growth, IPOs, and REITs.

(0:29:26) Why IPOs are excluded for 6–12 months and the mechanics behind inclusion.

(0:33:16) Why Dimensional's exclusions aren…
Episode 359 - The Most Controversial Topics in Personal Finance

29 mei 2025 · 1 uur 18 min
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For the first time as a host combination, Ben, Dan, and Cameron sit down to discuss the most controversial topics in personal finance. We begin with identity and how it informs decision-making. Then, we revisit the renting versus buying debate, why this remains a highly controversial topic, the ins and outs of income investing, and understating the fervor of dividend investing. We also unpack FIRE as a branch of self-help; how it informs happiness; and how personality influences one's approach to the FIRE principle. To end, we closely examine Bill Bengen's 4% rule, and the Aftershow encourages us to maintain high podcasting standards while revealing what you can look forward to in our latest Rational Reminder t-shirt release. Lees meer

Key Points From This Episode:

(0:01:25) Cameron's positive LinkedIn experience regarding insurance.

(0:08:10) How identity informs decision-making.

(0:15:24) Why renting versus buying a home remains a controversial topic.

(0:27:50) Income investing, covered calls, and the fervor of dividend investing.

(0:46:34) FIRE: Financial independence, retire early.

(0:54:36) Unpacking FIRE as a branch of self-help, and the role of FIRE in happiness.

(1:07:07) How personality and identity inform one's approach to FIRE.

(1:10:34) Addressing the 4% rule.

(1:14:16) The Aftershow: Setting and keeping high standards, and Rational Reminder t-shirts.

Links From Today's Episode:

Meet with PWL Capital — https://calendly.com/d/3vm-t2j-h3p

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

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

Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on TikTok — https://www.tiktok.com/@rationalreminder

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

Rational Reminder Email — info@rationalreminder.ca

Rational Reminder Merchandise — ht…
Episode 358 – Dr. Eli Beracha: Renting versus Buying a Home

22 mei 2025 · 1 uur 7 min
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Dr. Eli Beracha has recently been recognized by The Journal of Real Estate Literature as the world's third best in research productivity, and today, we are honoured to be joined by this top industry expert to bring more clarity to the renting versus buying debate. We use Dr. Beracha's 'Lessons from Over 30 Years of Buy Versus Rent Decisions: Is the American Dream Always Wise?' and 'Housing Ownership Decision-Making in the Framework of Household Portfolio Choice' papers as the basis for most of today's conversation, beginning with why owning a home is deeply rooted in the perception of the American dream. Then, we discover how to measure the true price of home ownership, how the American dream and other psychological factors influence one's decision-making, how hard assets perform compared to stocks and bonds, and why renting comes out ahead of buying nine times out of ten. We also learn why owning is for the inherently wealthy, the ins and outs of Dr. Beracha's rent versus buy index, the rate of property appreciation versus stock appreciation, and how renting influences saving habits compared to owning a home. To end, we dive deeper into the risk-adjusted wealth accumulation of home ownership versus renting, and Dr. Beracha compares the efficiency of the real estate market to the stock market while detailing everything to take into account to be fully-equipped to make your decision to rent or buy. Lees meer

Key Points From This Episode:

(0:00:00) Why Dr. Eli Beracha is one of the world's best to discuss renting vs buying a home.

(0:05:32) Understanding why owning a home is deeply entrenched in the American dream.

(0:06:10) The various aspects to consider when measuring the price of home ownership.

(0:07:57) Weather Dr. Beracha agrees with the adage "renting is throwing money away."

(0:09:36) What the price of a home should represent, and how psychology influences decisions.

(0:16:48) Unpacking Dr. Beracha's 2012 paper subtitled, 'Is the American Dream Always Wise?'

(…
Episode 357 – AMA #6

15 mei 2025 · 56 min
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Cameron joins Ben for his first AMA as we bring you the sixth edition of our Listener Questions and Investing Lessons mini-series. Diving right in, Ben and Cameron share their stance on the multi-host format of the Rational Reminder podcast before walking us through the new PWL Retirement Planning Tool. Then, we unpack our venture with OneDigital, recent changes at PWL Capital, how we make each episode of this show, and how we allocate our time across podcast and business responsibilities. We also examine our protocol regarding guests, why Cameron and Ben would never gamble with their own money, how the human condition prevents the full comprehension of investing as a principle, and smart money moves to make under current market conditions. To end, we discuss the effects of a capital gains tax increase, common mistakes to avoid in managing personal finances, programs and technologies for financial advisors, and the After Show, which ends with an important discussion on testicular cancer. Lees meer

Key Points From This Episode:

(0:00:00) How Ben and Cameron feel about the multi-host format of this podcast.

(0:01:12) The new PWL Retirement Planning Tool, developed by Braden Warwick.

(0:03:13) Joining OneDigital and other PWL changes from the past four months.

(0:09:05) Behind the scenes: Making a Rational Reminder podcast episode.

(0:12:38) Allocating time for research, preparation, creating content, and business.

(0:17:27) How guests inform our approach to research and preparation.

(0:19:29) The reasons why we're not risk-averse but have no appetite for gambling.

(0:24:26) Why investing has been largely solved, except for the human aspect.

(0:30:13) The most "rational" investing practices under current market conditions.

(0:34:25) How to approach a capital gains tax increase, and why banks do what they do.

(0:38:03) The most costly mistakes when it comes to managing personal finances.

(0:40:12) Why we don't offer advice-only planning for DIY investors.

(0:44:07)…
Episode 356 – Abby Davisson: How to Make Decisions About Money and Love

8 mei 2025 · 59 min
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How do we make the most important decisions in life with intention rather than impulse? In this episode, we are joined by Abby Davisson to unpack her practical framework for better decision-making. Abby is a Yale and Stanford alumnus, a former executive at Gap Inc., and the co-author of Money and Love. She is also the founder of the Money and Love Institute, which is dedicated to helping individuals and professionals navigate life's most significant decisions. In today's conversation, Abby unpacks her practical, research-backed "5Cs Framework" for decision-making and demonstrates how it can guide all the decisions couples need to make through life. We explore the idea of financial transparency, progressive pooling of finances, equitable division of housework, deciding when to outsource help, and navigating career pauses or transitions. Abby also shares how she applied the framework in her own life and offers an honest perspective for individuals navigating change. Join us to learn how to approach choices and the "life stuff" that doesn't always show up in spreadsheets with Abby Davisson. Tune in now! Lees meer

Key Points From This Episode:

(0:04:16) Myra Strober's Work and Family course and how it led to writing Money and Love.

(0:07:21) The drivers of poor decisions and the five Cs in Abby's decision-making framework.

(0:11:15) Discover the four big topics every couple should discuss and how to approach them.

(0:15:09) Learn the fundamentals of how couples should handle and combine money.

(0:17:49) Why division of housework is vital, how to approach it, and the role of gender norms.

(0:21:49) Outsourcing tasks and the impacts of not taking the division of housework seriously.

(0:24:27) How to decide where to live as a couple, and whether to rent or buy a house.

(0:29:08) A real-life example of how to apply to 5C Framework for decision-making.

(0:33:34) Navigating career ambitions, division of childcare, and stay-at-home parenting.

(0:37:16) Hear how the 5C Framew…
Episode 355 – Do Index Funds Incur Adverse Selection Costs?

1 mei 2025 · 1 uur 3 min
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Marco Sammon joins Ben and Dan to unpack his latest paper, 'Index Rebalancing and Stock Market Composition', beginning with how Marco's work (co-written by John Shim) compares to the Nobel Prize-winner Bill Sharpe's paper, 'Arithmetic of Active Management.' We investigate the missing links in Sharpe's logic before defining "the market" and ascertaining the main objectives of index funds. Then, we dive deeper into the mechanics of Marco's paper, index and market tracking errors, why delayed rebalancing is more beneficial than instant rebalancing, and the role of technology in the modern tracking error obsession. We also assess the passive-active spectrum of index funds in portfolio management and learn how investors should choose their optimal excess return. To end, Marco shares practical applications for improving performance benchmarked against traditional indexes, and The Aftershow is all about bridging the gap between PWL Capital and you, our listeners. Lees meer

Key Points From This Episode:

(0:00:00) Key takeaways from Marco Sammon's latest paper and how it compares to Bill Sharpe's 'Arithmetic of Active Management.'

(0:08:10) Marco describes what's missing from the 'Arithmetic of Active Management' logic.

(0:09:11) Defining 'the market', the main objective of an index fund, and how index funds track the market.

(0:15:57) The mechanics of Marco's paper, 'Index Rebalancing and Stock Market Composition.'

(0:18:38) Factor exposure, index and market tracking errors, and how often index funds trade.

(0:26:28) Rebalancing less frequently; why delayed does better than instant rebalancing.

(0:31:59) The tech run-up and lazy rebalancing, and the modern tracking error obsession.

(0:36:51) Assessing the passive-active spectrum of index funds in portfolio management.

(0:41:02) Exploring how investors should decide on their optimal excess return.

(0:45:14) How the rising index fund ownership of stocks impacts the implicit cost of indexing

(0:46:58) Practical ways to impr…
Episode 354 - Jason Pereira: Expert Financial Planning

24 april 2025 · 1 uur 17 min
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Beyond the sales pitches, acronyms, and product talk, what does it mean to be a financial planner? In this episode of the Rational Reminder Podcast, we sit down with long-time industry leader and advocate Jason Pereira. Jason is a Canadian financial planner with over 20 years of experience, dual CFP certification (Canada and US), and a passion for professionalizing the field. In our conversation, Jason shares details about his client-centred investment philosophy, explains why fiduciary duty is foundational, and unpacks the complexities of index fund adoption in Canada. We also delve into the barriers to transparent, evidence-based advice, the true role of a financial planner, the impact of the Fintech revolution, and the pros and cons of mortality pooling. He also challenges common myths surrounding financial planning, shares best practices for vetting financial advisors, and explains why the industry is long overdue for a transformation. Join us for career insights, cautionary tales, and forward-looking ideas that challenge the conventional thinking of what financial planning is, with Jason Pereira! Lees meer

Key Points From This Episode:

(0:05:13) Jason's core investment philosophy and perspective on factor-based indexing.

(0:07:15) Environmental, Social, and Governance (ESG) trends and client conversations.

(0:12:36) What fiduciary duty means, why it matters, and why some institutions fight against it.

(0:18:09) Unpack the complexities of why Canada is behind the US in index fund adoption.

(0:20:52) Learn about the true role and common misconceptions of a financial planner.

(0:24:30) Explore how technology and the rise of generative AI are changing financial planning.

(0:31:55) How advisors can maintain strong personal relationships with clients in a digital world.

(0:37:00) Find out what a high-quality financial plan looks like and what it covers.

(0:39:44) His favourite financial planning-related argument to get into on the internet.

(0:41:20) Uncover how mo…
Episode 353 – AMA #5

17 april 2025 · 1 uur 8 min
Afspelen

The fifth installment of our Ask Me Anything sessions begins with the inevitable volatility of the stock market as we urge investors to remain calm amidst recent US stock declines. Similarly, we unpack the historical resilience of stock markets and offer advice for dealing with market crashes before discussing why bonds are not the best strategy for boosting returns. We examine the proposed Alberta Pension Plan, the Rational Reminder Podcast guests whose impact still ripples across PWL, how to be a PWL-style advisor, and we revisit the DFA versus Vanguard debate. We also explain why spending rules aren't for us at PWL, the relationship between the amount to withdraw and the stock/bond allocation, and alternatives for short-term horizon investing, saving, and equities. To end, we hear feedback from Atti Ilmanen as well as reviews from listeners, but before all that, Mark McGrath shares bittersweet news! Stay tuned for an episode full of reflection, strategy, and insight. Lees meer

Key Points From This Episode:

(0:01:13) The inevitability of market volatility and the historical resilience of stock markets.

(0:13:04) How to approach a volatile market and advice for dealing with a market crash.

(0:18:06) Why bonds are not a return-enhancing strategy.

(0:21:04) A brief examination of the proposed Alberta Pension Plan.

(0:25:02) Impactful guests who have influenced how we work at PWL Capital.

(0:33:25) How to be a PWL-style advisor.

(0:35:37) Weighing Dimensional funds (DFA) against Vanguard and others.

(0:41:57) Why spending rules aren't really our thing.

(0:44:56) The relationship between the amount to withdraw and the stock/bond allocation.

(0:49:50) Exploring alternatives for short-term horizon investing, saving, and equities.

(0:57:00) An important announcement from Mark!

(1:02:51) The Aftershow: feedback from Antti Ilmanen, listener reviews, and final thoughts.

Links From Today's Episode:

Meet with PWL Capital — https://calendly.com/d/3vm-t2j-h3p

Rational Rem…
Episode 352 – Jessica Moorhouse: Everything But Money

10 april 2025 · 1 uur 8 min
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What if the key to financial success isn't just a better budget, but a better understanding of your relationship with money? In this episode of the Rational Reminder Podcast, Ben and Dan sit down with Jessica Moorhouse to delve into the ins and outs of personal finance. Jessica is a money expert, Accredited Financial Counsellor Canada®, speaker, and bestselling author of Everything but Money. She is also the host of the More Money Podcast, one of Canada's leading personal finance shows. During today's conversation, Jessica unpacks the difference between a financial planner and a counsellor and why empathy is the missing piece in personal finance. Find out how different emotions and early memories of money can influence our perspective on personal finance, hear why understanding your relationship with money is so important, and learn about common financial behaviours to avoid. Jessica also delves into the value of understanding past traumas, the power of intergenerational money experiences, and whether mental health or a financial foundation is more important. Tune in now! Lees meer

Key Points From This Episode:

(0:02:50) Uncover the difference between a financial counsellor and a financial planner.

(0:05:55) Her approach to working with clients and meeting their non-financial needs.

(0:09:15) Find out what is missing in personal finance and why it is essential.

(0:11:39) How shame impacts financial decision-making and common sources of shame.

(0:14:50) Ways relative financial well-being and privilege shape our perspective of money.

(0:19:46) Hear how to overcome financial shame and how it differs from feelings of guilt.

(0:22:35) Rational versus irrational guilt and how fear affects financial decisions.

(0:25:46) Learn about jealousy and envy as well as their impact on personal finance.

(0:27:31) Early money memories and pragmatic money exercises to help frame your mindset.

(0:36:54) Explore the power of understanding your money story for better financial decision…
Episode 351 – DFA vs Vanguard

3 april 2025 · 55 min
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Dimensional Fund Advisors (DFA) and Vanguard have intersecting histories rooted in the development of the first-ever index fund. Vanguard's market-cap weighted index funds have been nothing short of revolutionary and they became synonymous with sensible investing for many good reasons, but Dimensional took implementing the ideas from academic finance a few steps further, leading to their own deserved acclaim. In today's episode, Ben and Dan analyze over 30 years of history between DFA and Vanguard, from their founding and relationship to their rise as global leaders in asset management. We discover how their approaches to foundational finance theory differ, whether diversification is mostly semantics, and how DFA and Vanguard compare to one another over 25 years of matched US-domiciled mutual funds. We also discuss which approach is easier to implement, essential insights for fund advisors, DFA's downsides despite its long-term outperformance of the Vanguard 500, and an uplifting cancer update from Ben in today's After Show. For practical investment takeaways, tune in today! Lees meer

Key Points From This Episode:

(0:01:14) Unpacking DFA and Vanguard's history and relationship.

(0:03:10) Mac McQuown and the birth of index funds at Wells Fargo in 1964.

(0:07:48) How DFA and Vanguard became global leaders in asset management.

(0:10:43) Understanding DFA and Vanguard's approach to foundational finance theory.

(0:19:34) The semantics of diversification.

(0:22:22) Comparing 25 years of matched Dimensional and Vanguard US mutual funds.

(0:33:36) Which fund advisor's approach is easier for others to implement and why.

(0:39:30) How DFA has outperformed Vanguard in the long run (with downsides to consider).

(0:43:09) Recapping today's conversation: what every fund advisor needs to know.

(0:46:41) The After Show: Ben's cancer update, Dan as co-host, and listener reviews.

Links From Today's Episode:

Meet with PWL Capital — https://calendly.com/d/3vm-t2j-h3p

Rational Remi…
Episode 350: Scott Cederburg: A Critical Assessment of Lifecycle Investment Advice

27 maart 2025 · 1 uur 12 min
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Our conversations with Professor Scott Cederburg from Eller College of Management have led to the most heated debates among our listeners! Today, Prof. Cederburg returns to discuss the changes he's made to his paper that was the foundation of previous conversations - 'Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice'. We begin with the data setup and headline findings of the paper before Prof. Cederburg defines "domestic" and "international" as they appear in his paper, why the block bootstrap approach is vital to his work, how and why the results of his paper differ from the status quo, and the evaluation metrics he uses to compare different investment strategies. Then, we explore his optimal base portfolio, the strategy he uses to derive it, how it performs in simulated worst-case scenarios, and how it changes when ditching the bootstrap approach or changing strategies from constant spending to proportional spending. To end, we learn of the importance of including the US in international stock portfolios, how it changes when the US is viewed as special above others, the correlation between labor income and domestic stock returns, and how the reviews of academics and practitioners have changed since the first iteration of the paper until this latest edition. Lees meer

Key Points From This Episode:

(0:00:00) What to look forward to in today's conversation with Prof. Scott Cederburg

(0:04:49) The data setup and headline findings from his paper, 'Beyond the Status Quo.'

(0:07:01) Defining "domestic" and "international" as they appear in Prof. Cederburg's paper.

(0:08:34) Why the bootstrap approach is necessary for his work.

(0:12:17) How and why the results of his paper differ from the status quo.

(0:15:11) Unpacking the evaluation metrics he uses to compare different investment strategies.

(0:16:05) Exploring his optimal base case portfolio and strategy, and how it performs in worst-case simulations.

(0:23:05) How the optimal allocation cha…
Episode 349 – AMA #4

20 maart 2025 · 1 uur 22 min
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In this episode, Ben, Dan, and Mark tackle another Ask Me Anything (AMA) session, covering a wide range of investing and financial planning topics. They begin with a highly requested debate on factor investing versus market cap-weighted portfolios and unpack the theory, research, and practical considerations behind both strategies. Ben explains why he prefers factor tilts when managing client portfolios, while Dan shares his perspective on why a simple market cap-weighted approach is more practical and sustainable. Then, they delve into the drivers of investor behaviour, common mistakes investors make, and powerful strategies to help investors overcome biases and improve their decision-making abilities. They also discuss the role of bonds in a portfolio, whether international bonds offer additional benefits, key retirement planning strategies, and the impact of sequence-of-returns risk. Join the conversation to discover how large corporations manage cash reserves, unpack the SPIVA Canada 2024 report findings, and explore the continued struggles of active management. Tune in now! Lees meer

Key Points From This Episode:

(0:01:06) Ben explains why market cap weighting is a valid strategy but prefers factor tilting.

(0:06:58) Dan shares why he prefers market cap weighting approaches over factor tilting.

(0:13:45) Hear how client expectations shape their investment approaches.

(0:18:12) How to overcome the psychological challenges of investing and reframe your mindset.

(0:22:02) The role of bonds and fixed income in a portfolio and sequence of withdrawal risk.

(0:36:19) Recommendations for factor ETFs and the home biases associated with them.

(0:39:48) Unpack the 4% rule for retirement planning and amortization-based withdrawals.

(0:47:47) Expected returns for a "millennial" portfolio and why 10% annualized is unrealistic.

(0:52:38) Find out if PWL would ever open a branch in the US and about their US partnerships.

(0:53:20) Explore how corporate cash management differ…
Episode 348 - Andrew Barclay (StatCan): Measuring Inflation

13 maart 2025 · 1 uur 7 min
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Is the government manipulating inflation data? Why do so many people feel like their personal costs are rising faster than official inflation numbers suggest? In this episode of the Rational Reminder Podcast, we dive deep into one of the most debated and misunderstood economic topics: inflation. Today, we are joined by Andrew Barclay, an economist and senior analyst in the Consumer Price Division at Statistics Canada, to discuss everything you need to know about inflation and the Consumer Price Index (CPI). Statistics Canada is Canada's national statistical agency dedicated to producing accurate, relevant, and timely data to help Canadians better understand their country. In our conversation, we unpack how inflation and the CPI are calculated and why it is so important. We explore the controversy around CPI calculations and the influence of inflation on government benefits, tax brackets, and the overall economy. Andrew also addresses scepticism and conspiracy theories about government inflation reporting, uncovers drivers of the perception gap, and explains how Statistics Canada ensures the accuracy and integrity of its data. Join us to hear the real story behind CPI and inflation with Andrew Barclay! Lees meer

Key Points From This Episode:

(0:00:00) Background about Andrew and what inspired today's topic.

(0:05:33) Find out why measuring inflation is important and how the CPI is calculated.

(0:10:08) What goes into the CPI basket and how frequently the contents are updated.

(0:12:42) How consumer choices impact inflation and how 'shrinkflation' is accounted for.

(0:15:43) Learn how quality adjustments are accounted for in the CPI and why they matter.

(0:19:01) Scepticism surrounding quality adjustments and how the CPI adapts to crises.

(0:25:21) The role of grocery price tracking and why Canada uses a single CPI measure.

(0:28:08) Explore the idea of personal inflation and why it is usually different to the CPI.

(0:31:10) The difference between home prices and hou…
Episode 347 - The Case for Index Funds

6 maart 2025 · 1 uur 16 min
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Are index funds the best investment strategy for most investors? In this episode of Rational Reminder, Benjamin Felix, Dan Bortolotti, and Mark McGrath explore why low-cost index funds should be the primary investment strategy for most people. They explain how index funds evolved from a niche concept to a widely accepted strategy and outline their six key benefits. Learn about the fees associated with index funds, why index funds outperform most actively managed funds, and how to avoid the risks of picking individual stocks. They also explore academic research on long-term mutual fund performance, the persistence (or lack thereof) in active management, and the dangers of alternative indexing schemes. Discover how behaviour impacts investment decisions and why a globally diversified portfolio is crucial. Finally, in the aftershow, Ben shares an update regarding his health and listener feedback from the Rational Reminder community. Join the conversation and uncover why index funds are the best investment strategy and how to leverage them effectively to maximize your portfolio for long-term gains. Tune in now! Lees meer

Key Points From This Episode:

(0:01:58) Outline of today's topic and why index funds should be everyone's main investment strategy.

(0:05:10) Index fund fundamentals, market cap weighting, and why not all ETFs are index funds.

(0:10:03) Learn about the transition of index funds into mainstream finance and their low-fee advantages.

(0:13:30) Linking fees to index performance and why lower fees gives them an advantage over managed funds.

(0:19:50) The general awareness about index funds and what impact the lack of diversification has on actively managed funds.

(0:26:35) Explore critical research comparing the returns on investment between index funds and actively managed funds.

(0:33:32) Unpack why the size of the active management industry matters and common misconceptions surrounding the long-term returns of mutual funds.

(0:42:26) Discover why some fun…
Episode 346 - Hendrik Bessembinder: Why It's So Hard to Beat the Market

27 februari 2025 · 1 uur 3 min
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Did you know that just a handful of stocks drive nearly all of the stock market's long-term gains? In this episode, we sit down with Hendrik Bessembinder to discuss his groundbreaking research on why most stocks fail to outperform Treasury bills and how a small fraction of stocks generate the most long-term market returns. Hendrik is a Professor in the Department of Finance at Arizona State University whose research focuses on market design, trading, and long-term investment performance across stock, foreign exchange, fixed income, futures, and energy markets. In addition to his academic contributions, Professor Bessembinder has over 25 years of consulting experience, advising major firms, financial markets, and government agencies. In our conversation, we delve into the findings of his research and find out how a small fraction of stocks generate the majority of long-term returns. We explore why traditional investment strategies often overlook the impact of skewness, the impacts of broad diversification and passive investing, and why active fund managers struggle to beat the market. Discover why chasing past returns can lead to costly mistakes, his latest research on 'sustainable returns', what type of industries have the highest stock returns, common investing mistakes, and more. Join us to uncover the surprising realities of stock market returns and how you can build a portfolio that stands the test of time with Professor Hendrik Bessembinder. Lees meer

Key Points From This Episode:

(0:03:54) Explore Hendrik's research on long-term stock returns and how most returns come from a small group of stocks.

(0:08:30) Learn how company size interacts with the skewness in stock returns and what it means for individual investors.

(0:11:39) Considering fundamentals in stock returns and the implications of skewness for measuring portfolio performance.

(0:15:42) Unpack how he used bootstrap simulations in his paper and the performance of stock returns versus Treasury bills.

(0:1…
Episode 345 - AMA #3

20 februari 2025 · 1 uur 14 min
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As we continue to answer your questions from our most recent AMA, Ben, Mark, and Dan begin today's episode with Bitcoin and how its value as an investment has changed over the years. Then, after briefly explaining how to find short clips of this podcast online, we discuss why many companies choose not to list directly on the TXS, how to implement factor investing without factor EFTS, the best way to invest if you could only make one EFT investment in your lifetime, and, and understanding buffered EFTs and market-linked GICs. We also cover expected returns in a corrupt market, return stacking for individuals, academia versus real-world applications, and why stock valuations will never be the same as they were in the past. To end, we look at lump sum investing versus dollar-cost averaging, what to remember regarding asset allocation, how we rebalance portfolios here at PWL Capital, and we wish Ben well as he awaits his diagnosis. Lees meer

Key Points From This Episode:

(0:03:30) Unpacking the value of Bitcoin as an investment; past, present, and future.

(0:09:58) Why we don't use YouTube Shorts anymore and how to find our bite-sized clips.

(0:10:29) Understanding why many companies refrain from directly listing on the TXS.

(0:11:29) An interlude on how we take care of our bodies.

(0:14:22) Implementing factor investing without factor ETFs, and Manulife's multifactor ETFs.

(0:19:21) What we would do if we could only invest in one ETF until retirement.

(0:22:23) Buffered EFTs and market-linked GICs.

(0:26:15) Market efficiency and expected returns in a low transparency/high corruption market.

(0:29:50) Whether return stacking is a good idea for individuals, and unpacking leverage.

(0:40:44) Balancing proven business philosophies with academic thinking.

(0:47:39) The Shiller PE Ratio; why stock valuations are permanently higher than in the past.

(0:54:58) Lump sum investing versus dollar-cost averaging.

(1:00:09) Asset allocation and how to know which assets to sell…
Episode 344 - Michael Mauboussin: The One Job of an Equity Investor

13 februari 2025 · 1 uur 5 min
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What if the key to successful investing is about understanding how market expectations, intangible assets, and even your own biases shape the outcome? In this episode, Cameron sits down with Michael Mauboussin, a renowned expert in investment strategies and behavioural finance, to explore how the evolving dynamics of investing influence valuation, investor decision-making, and market efficiency. Michael is the head of Consilient Research at Counterpoint Global, part of Morgan Stanley Investment Management, and an adjunct professor at Columbia Business School, where he teaches courses on investing and decision-making. His work focuses on behavioural biases, skill versus luck, complex adaptive systems, and valuation. In our conversation, we discuss the core principles of equity investing, unpack the evolution of intangible assets, and explore how market dynamics are influenced by index funds. You'll learn about capital allocation strategies, the shifting landscape of private equity, accounting challenges with intangibles, and how traditional investment frameworks are being redefined. Michael also provides insight into the "free dividend" fallacy, the importance of understanding the basic unit of analysis, the paradox of skill in active management, and more. Join us to learn about market and investing fundamentals to improve your strategy with Michael Mauboussin. Tune in now! Lees meer

Key Points From This Episode:

(0:03:08) What the primary job of an equity investor is and the origin of stock returns.

(0:05:37) Why dividends are less critical to total shareholder return unless fully reinvested.

(0:08:43) Dissect the behaviour of investors in dividend stocks and the "free dividend fallacy."

(0:10:01) Value versus growth classifications and how intangible assets impact valuations.

(0:16:39) Learn about the potential advantages for companies investing in intangible assets.

(0:20:20) How to determine a company's position in the competitive advantage life cycle.

(0:24:42) T…
Episode 343 - How to Choose an Asset Allocation

6 februari 2025 · 1 uur 16 min
Afspelen

Choosing an asset allocation is a crucial investment decision, as it determines expected returns and risk exposure. During this episode, we uncover what this means, exploring topics such as why risk may not always be the best assessment method. We unpack the three factors that John Grable's risk profiling framework considers: behavioural loss tolerance, the ability to take risk (which assesses the financial capacity to withstand losses without affecting lifestyle), and the need to take risk. Many investors sabotage their returns by selling after losses and buying after gains, and we discuss the reasons behind this. We also explore why stocks tend to become less risky over long horizons, while bonds can be vulnerable to inflation and interest rate changes, before explaining why investors should focus on compensated risks. In the aftershow, we address listener comments on absolute returns, XEQT, why we have made certain sponsorship decisions, and more. To gain a deeper understanding of risk and avoid common pitfalls that can undermine your returns, tune in today! Lees meer

Key Points From This Episode:

(0:05:10) The critical importance of choosing an asset allocation and understanding risk.

(0:08:35) How behavioural loss tolerance impacts asset allocation.

(0:18:42) Psychological theory on risk tolerance and willingness to engage in financial behavior.

(0:30:48) Assessing your need to take risks.

(0:39:24) Why market volatility is not where the true risks lie.

(0:47:42) Private credit, other portfolio alternatives, and GICs.

(0:53:03) The aftershow: demystifying the AMA controversy.

(1:00:20) Absolute returns, XEQT, and sponsorship on the Rational Reminder.
(1:12:05) An update on Ben's health and what he has learned from this experience.

Links From Today's Episode:

Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — https:/…
Episode 342 - Matthew Ringgenberg: When Do Anomaly Returns Happen?

30 januari 2025 · 42 min
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Today we are joined by the Professor of Finance at the University of Utah, Matt Ringgenberg to discuss everything related to anomaly returns. Matt's research – mainly centred on the actions of short sellers – has been published in all the major journals including the Journal of Finance, the Journal of Financial Economics, and the Review of Financial Studies. We begin with the definition of an asset pricing anomaly before learning about the anomalies that Matt's research is primarily focused on. Then, we unpack anomaly returns and how they relate to anomaly signal information, what causes anomalies, the risk versus mispricing debate, and the barriers to accessing financial data that allow anomalies to persist. We also weigh Matt's research against its anomaly-denying counterparts, assess anomaly behaviour before and after publicly available signal information, explore models that help to predict future anomalies, and learn more about the economic mechanism underlying asset pricing anomalies. To end, we dive into Matt's paper, 'The Loan Fee Anomaly' and explore the relationship between cross-sectional predictors and market returns, and Matt explains why long-term happiness is the only true marker of success. Lees meer

Key Points From This Episode:

(0:05:07) Matt Ringgenberg defines an asset pricing anomaly and describes the anomalies his research is focused on.

(0:06:27) When anomaly returns appear relative to the release of anomaly signal information.

(0:07:57) How the annual forming of portfolios in June affects anomaly returns.

(0:08:50) The cause of anomalies, and the risk versus mispricing debate on anomaly returns.

(0:10:35) Unpacking the barriers to accessing financial data that allow anomalies to persist.

(0:13:41) How Matt's rebalancing approach could affect anomaly-denying research.

(0:14:37) Applying his work to valuation-based anomalies and to investors capturing anomaly returns in live-traded portfolios.

(0:16:04) How anomalies behave before anomaly signa…
Episode 341 - PWL's Next Chapter

23 januari 2025 · 1 uur 3 min
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PWL Capital is undergoing an exciting change that will help the company bring a greater positive impact to the Canadian Wealth Management space and serve more clients effectively. In this episode, Ben Felix and Cameron Passmore welcome Mike Sullivan, co-founder of OneDigital, to share the inside story behind PWL Capital's recent decision to join forces with OneDigital. With nearly 25 years of experience in growth through acquisitions, Mike explains how their unique culture and strategic vision led to this exciting collaboration. We discuss Mike's role in driving OneDigital's expansion and how the company's values align with PWL's mission to offer low-cost, client-centric, systematic investing. He provides insights into why this partnership represents more than just a business transaction by amplifying a shared vision for Canadian investors. Our conversation also delves into the dynamics of mergers and acquisitions and examines the importance of culture and purpose in making these critical decisions. Today's episode offers a rare inside look at an M&A transaction with key players that many listeners will already be well-acquainted with. Tune in now to hear it all! Lees meer

Key Points From This Episode:

(0:00:16) Details on PWL Capital's decision to partner with OneDigital.

(0:14:31) An introduction to co-founder Mike Sullivan and OneDigital.

(0:16:38) How Mike knows when an acquisition will be a good fit.

(0:19:13) The opportunities for building a different kind of wealth management firm in Canada.

(0:21:14) What attracted Mike to PWL as a potential OneDigital partner.

(0:34:05) Mike's insights on applying what's worked to the Canadian marketplace.

(0:36:14) How being part of OneDigital will make PWL better.

(0:37:59) Mike and his co-founder Adam Bruckman's objectives for OneDigital.

(0:40:20) Why you shouldn't expect changes to PWL's service offerings or teams.

(0:45:02) How being part of OneDigital will help PWL assist other like-minded advisors.

(0:46:36) The …
Episode 340 - Ben Mathew: The Lifecycle Model vs. Safe Withdrawal Rates (SWR)

16 januari 2025 · 1 uur 23 min
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What drives the best financial planning decisions? In this episode, Ben Felix and Mark McGrath sit down with Ben Mathew, a PhD in economics from the University of Chicago and author of Economics: The Remarkable Story of How the Economy Works. The discussion explores the lifecycle model of economics, a powerful yet underutilized framework for financial planning, and contrasts it with traditional approaches like safe withdrawal rates (SWR). Ben Mathew shares insights into the lifecycle model, its origins, and its practical applications in aligning financial decisions with personal goals over a lifetime. We also dig into Ben's innovative financial planning tool, TPAW (Total Portfolio Allocation and Withdrawal) Planner, designed to bring the lifecycle model into practice. While the discussion delves into the complexities of financial planning, it's packed with actionable insights for listeners seeking smarter, evidence-based strategies. Join us for a deep dive into the lifecycle model and discover how it compares to traditional safe withdrawal rates. Lees meer

Key Points From This Episode:

(0:02:31) Identifying the main problem financial planning aims to solve and the biggest challenges in creating a plan for saving and spending across a lifetime.

(0:05:49) Exploring the effectiveness of simple rules of thumb, like the 4% rule, and the economic models available to analyze financial planning problems.

(0:09:16) Why the lifecycle model isn't more widely adopted.

(0:12:06) The basic premise of the lifecycle model.

(0:16:45) How withdrawals in the lifecycle model relate to amortization and how risk affects amortization-based withdrawals.

(0:21:12) Examining how amortization-based variable spending aligns with consumption smoothing and responds to portfolio drops.

(0:25:25) How updating expected return assumptions mitigates behavioural worry during market drops.

(0:26:37) The variability in spending seen in historical simulations, how variable spending can be tailored to ind…
Episode 339 - 2024 Year-End AMA Pt 2

9 januari 2025 · 1 uur 25 min
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In our second episode of 2025, Ben, Mark, and Dan continue to work through the listener questions we received in our 2024 AMA. We begin with home country biases and how to continue to grow your money from an already diversified portfolio before comparing the benefits of stock trading strategies and EFT portfolio strategies. Then, we discuss the impact of volatile blockchains on the wider securities market, whether you need to adjust your investment strategy when new tariffs are imposed, the ins and outs of terminal wealth management, the benefits of focusing on a total market index, and the personal finance perspective of renting versus buying in Canada. To end, we explore the best practices for increasing risk exposure, take a closer look at FIRE (financial impendence, retire early), assess investing behavioural biases and misconceptions that still pose a threat to even literate investors, and learn about how the Rational Reminder podcast is changing the lives of our listeners. Lees meer

Key Points From This Episode:

(0:01:59) Whether owning a home affects your home country bias and financial asset portfolio.

(0:02:43) The correlation between the economic risks of housing and the local stock market.

(0:07:21) How to keep growing your money if you already have a diversified portfolio.

(0:14:16) When to split your portfolio, and stock trading strategy versus EFT portfolio strategy.

(0:22:20) The impact of Bitcoin and volatile blockchains on the wider securities market.

(0:24:46) Adapting your investment strategy after the introduction or increase of trading tariffs.

(0:26:20) Maxing out tax-free savings accounts for non-incorporated high-income professionals.

(0:33:22) Switching to a total market index to avoid index funds that overvalue the market.

(0:37:48) Renting versus buying in Canada, from a personal finance perspective.

(0:42:39) The best practices for increasing risk exposure.

(0:51:19) Unpacking FIRE – financial independence, retire early.

(0:56:05) Bal…
Episode 338 - Peter Mladina: Factor Betas and ICAPM in Practice

2 januari 2025 · 1 uur 9 min
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In today's episode, we unpack how rigorous research translates into actionable strategies for wealth management. Ben and Mark are joined by Peter Mladina, Executive Director of Portfolio Research at Northern Trust Wealth Management and professor at UCLA. With an impressive body of published work and practical innovations like his goals-based asset allocation software, Peter offers a unique perspective on bridging the gap between theory and practice. The conversation delves into foundational topics like asset allocation and factor models, with a special focus on practical applications of research in wealth management. Peter shares insights from his research, including intriguing findings on factor investing and joint tests of market efficiency. From real estate investment trusts to the nuances of the Intertemporal Capital Asset Pricing Model (ICAPM), the discussion covers how these concepts can directly inform financial planning and portfolio construction. Tune in to explore the intersection of academic insight and everyday financial decision-making! Lees meer

Key Points From This Episode:

(0:00:17) Introducing Peter Mladina and his wealth management research.

(0:04:00) Theoretical and practical shortcomings of Markowitz's Modern Portfolio Theory (MPT).

(0:05:24) How the Capital Asset Pricing Model (CAPM) resolves MPT's shortcomings, and how the Intertemporal CAPM (ICAPM) resolves the CAPM and MPT's shortcomings.

(0:10:16) Key distinctions between an optimal ICAPM portfolio and an optimal CAPM portfolio.

(0:15:33) Allocating between liability hedge assets and risky assets, and when it's sensible for individual investors to try to fully hedge consumption liabilities.

(0:20:14) The role of Monte Carlo simulation and human capital in building ICAPM portfolios.

(0:24:15) Steps for practitioners starting with ICAPM and how to advise their clients.

(0:37:18) Insights from Peter's papers on factor models: why common risk factors should explain returns across most asset clas…
Episode 337 - 2024 Year-End AMA

26 december 2024 · 1 uur 34 min
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As the year draws to a close, the Rational Reminder Podcast team delivers an engaging year-end special with a unique twist. Rather than curating clips from previous episodes, Ben Felix, Dan Bortolotti, and Mark McGrath dive into an AMA-style episode, answering listener-submitted questions. They share reflections on lessons learned, highlight impactful community discussions, and provide thoughtful takes on investing strategies, personal growth, and financial planning. They discuss their evolving views on human capital integration, portfolio diversification, and the importance of behavioural finance in long-term planning. They also revisit key themes from earlier episodes and offer heartfelt thank-yous to their team and audience for a remarkable year. Join us for a mix of practical insights, entertaining banter, and a glimpse into what's ahead for the Rational Reminder Podcast. Don't miss this memorable year-end wrap-up! Lees meer

Key Points From This Episode:

(0:00:00) Episode format and a thank you to the PWL Capital team, producers, and audience.

(0:05:14) Influential community discussions and their insights on efficient ETF design.

(0:10:14) Hear the reason behind Ben's decision to shave his head for so long.

(0:13:51) How to integrate human capital into useful financial planning and strategy.

(0:19:33) They share their thoughts on the evolving definition of success in life and work.

(0:23:33) Their top finance and investment book recommendations for retail investors.

(0:28:50) Uncover the nuances of assessing a value premium within an ETF.

(0:30:46) How real-life events shaped their approach to providing guidance and financial advice.

(0:37:18) Return stacking and a comparison of Dimensional's and Avantis' vector portfolios.

(0:41:05) Risks of bonds, bills, and credit and why past returns do not guarantee future results.

(0:48:27) Explore the complexities of tax-efficient ETFs and Thrift Savings Plan (TSP) options.

(0:56:50) Balancing long-term investment ass…
Episode 336 - Steve Utkus: Investor Beliefs and Financial Advice

19 december 2024 · 1 uur 22 min
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What shapes investor beliefs and behaviours? Steve Utkus, a leading expert in investor behaviour and former Global Head of Investor and Retirement Research at Vanguard, brings decades of groundbreaking insights to this episode. Drawing on exclusive access to Vanguard's anonymized client data and investor surveys, Steve uncovers the intricate links between what people believe and how they invest. In the first half, he reveals surprising findings from his research into investor beliefs and portfolio decisions. The second half dives into the impact of financial advisors, both human and robotic, on improving investor outcomes. Steve's reflections, enriched by years of collaboration with academic leaders and personal conversations with Vanguard founder Jack Bogle, offer a rare window into the world of data-driven financial research. Join us today for this fascinating conversation as we unpack fresh perspectives on investor behaviour and the evolving role of financial advice! Lees meer

Key Points From This Episode:

(0:00:20) The importance of understanding investor belief, Steve's unique approach to studying it, and the benefits of using survey data.

(0:08:37) Understanding the effects of individual beliefs on portfolio equity shares.

(0:13:40) How equity sensitivity varies with things like trading frequency and how observed sensitivity compares with predictions of an asset pricing model.

(0:17:27) The variation of beliefs across different groups and the strong effect of being a pessimist, optimist, or having a middle-of-the-road perspective.

(0:21:29) Investor cash flow expectations, how it affects stock return expectations, and how it aligns with models of equilibrium.

(0:24:35) The impact of stock market disaster expectations on future stock returns and the effect of COVID-19 on investor expectations.

(0:33:37) ESG investing motives, portfolio impact, and the role of financial returns.

(0:38:35) Unpacking the impact of robo-advisors on previously DIY investors and who …

Alle afleveringen

Episode 385: A Case Study on Pension Benefits vs. Commuted Values

Episode 384: Mamdouh Medhat - A Profitability Retrospective, and Private Fund Performance

Episode 383: AMA #10 - Dollar cost averaging & mutual funds vs. ETFs

Episode 382: Ted Cadsby - The Power of Index Funds, and Being Human

Episode 381: Investing 101

Episode 380: John Y. Campbell - Fixing Personal Finance

Episode 379: AMA #9: Covered Call ETFs, Currency Hedging, and Bond Misconceptions

Episode 378: Learning from Market History

Episode 377: Investing in Your Health

Episode 376: Climbing The Wealth Ladder

Episode 375: Covered Calls: A Devil's Bargain

Episode 374: The Underperformance of Target Date Funds

Episode 373: Asset Allocation in Practice

Episode 372: Elie Hassenfeld - (Approximately) Optimal Philanthropy

Episode 371: Banks Sell Products, Not Advice

Episode 370: Dave Chilton (The Wealthy Barber): Timeless Financial Advice

Episode 369: The Most Important Quotes in Investing

Episode 368: Jim Rowley & Andy Maack - Implementing Index Funds at Vanguard

Episode 367: AMA #8 + Insurance Needs Analysis with Louai Bibi

Episode 366 - Avoiding Investment Scams

Episode 365 – Rob Carrick's Eight Lessons Learned in 27 Years of Covering Personal Finance

Episode 364 – Martijn Cremers: Is the Conventional Wisdom on Active Management Wrong?

Episode 363 - The (Underappreciated) Risk of Individual Stocks

Episode 362 – AMA #7

Episode 361: Alex Edmans - Finding "The Truth" in Economics, Finance, and Life

Episode 360 – Gerard O'Reilly: The Components of Net Returns

Episode 359 - The Most Controversial Topics in Personal Finance

Episode 358 – Dr. Eli Beracha: Renting versus Buying a Home

Episode 357 – AMA #6

Episode 356 – Abby Davisson: How to Make Decisions About Money and Love

Episode 355 – Do Index Funds Incur Adverse Selection Costs?

Episode 354 - Jason Pereira: Expert Financial Planning

Episode 353 – AMA #5

Episode 352 – Jessica Moorhouse: Everything But Money

Episode 351 – DFA vs Vanguard

Episode 350: Scott Cederburg: A Critical Assessment of Lifecycle Investment Advice

Episode 349 – AMA #4

Episode 348 - Andrew Barclay (StatCan): Measuring Inflation

Episode 347 - The Case for Index Funds

Episode 346 - Hendrik Bessembinder: Why It's So Hard to Beat the Market

Episode 345 - AMA #3

Episode 344 - Michael Mauboussin: The One Job of an Equity Investor

Episode 343 - How to Choose an Asset Allocation

Episode 342 - Matthew Ringgenberg: When Do Anomaly Returns Happen?

Episode 341 - PWL's Next Chapter

Episode 340 - Ben Mathew: The Lifecycle Model vs. Safe Withdrawal Rates (SWR)

Episode 339 - 2024 Year-End AMA Pt 2

Episode 338 - Peter Mladina: Factor Betas and ICAPM in Practice

Episode 337 - 2024 Year-End AMA

Episode 336 - Steve Utkus: Investor Beliefs and Financial Advice