Episodios

  • Leverage: Fast Fortune of Failure

    Leverage: Fast Fortune of Failure
    Apr 28 2025
    Don and Tom dive into the seductive but dangerous world of leverage, starting with real estate and quickly moving into the even riskier territory of leveraged ETFs. They explain how leverage magnifies both gains and devastating losses, using real-world examples like the Direction 3X Treasury Bull and Bear funds, which either crushed or annihilated investor money. They caution listeners that these “extra touchy” funds are pure speculation, not investing, and explain why most people should stay far away. The episode wraps with smart listener questions on direct indexing, Roth rollovers, and the hidden risks in trying to beat the market on your own. 0:04 How leverage props up real estate and investing myths1:32 The dark side: Leveraged funds and massive losses2:49 Triple leverage dangers: 90% losses vs. 266% gains5:38 Long-term performance: both leveraged bulls and bears lose7:52 Even treasuries show wild volatility with leverage9:57 Why leveraged funds are pure speculation, not investing11:44 Risk explained through standard deviation comparisons14:16 Listener question: Direct indexing vs. S&P 500 returns17:44 Listener question: Roth 401k rollover to Roth IRA tips Learn more about your ad choices. Visit megaphone.fm/adchoices
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    22 m
  • More Raised Hands

    More Raised Hands
    Apr 25 2025
    In this listener Q&A episode, Don dives into some powerful topics—from calling out the sales-driven heart of the financial services industry to explaining how bond index funds are built and breaking down the tax realities of non-retirement brokerage accounts. A caller wrestles with guilt over a bad annuity recommendation for a dying relative, prompting a raw conversation about the system’s moral middle ground. Don shares his own early days as a product peddler, highlights red flags to look for in firm ADVs, and walks through the Medicare vs. FEHB decision matrix. If you’re seeking peace, clarity, or just a solid tax lesson, this one delivers. 0:04 Opening reflection on aging, money, and why this show matters 1:17 Reminder to send questions via TalkingRealMoney.com or call live on Saturdays 2:38 Listener shares regret over a bad annuity recommendation from a familiar advisor 4:02 Don’s early days as a top-tier salesman turned financial “advisor” 5:21 Why most advisors aren’t fiduciaries—and why it matters 6:29 MarketWatch study reveals only ~1% of advisors are true fiduciaries 7:58 Never trust financial advice based on friendship or affinity 8:49 Next caller: How are bond index funds weighted? 9:15 Explanation: Bond indexes are also market value weighted 10:37 Why bond ETFs are mostly U.S. Treasury securities 11:34 Should a retired federal employee with FEHB skip Medicare Part B? 13:12 Don’s personal Medicare math and “if it ain’t broke…” approach 13:41 New CFP asks: What should I look for in a firm’s ADV as a job seeker? 15:02 Red flags: Conflicts of interest, broker registrations, insurance licenses 17:18 Align your investment beliefs with the firm’s philosophy 17:31 Last question: How is a taxable brokerage account taxed? 18:42 Explanation of interest, dividends, and potential capital gains 20:31 Don reiterates that real help—not a sales pitch—is always the goal Learn more about your ad choices. Visit megaphone.fm/adchoices
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    23 m
  • Gold Doesn't Work–Your Money Should

    Gold Doesn't Work–Your Money Should
    Apr 24 2025
    Gold is back in the headlines, but should it be in your portfolio? Don and Tom take a fresh (and frequently hilarious) look at the shiny metal that never seems to deliver. From Fort Knox to Costco’s gold bar rush, they trace gold’s lackluster long-term returns and its overhyped reputation as a hedge. They break down why physical gold fails as an investment, why GLD is better (but still meh), and why long-term investors might already have enough exposure through diversified funds. Plus: a Medicare premium surprise fix, the case of the copper penny, and a brief but loud murder of crows. 0:04 Gilded White House jokes lead into a serious look at gold 1:00 Don and Tom reunite—same page, same side, same skepticism on gold 1:57 Yahoo Finance: gold’s biggest quarter since 1986 2:34 Gold’s ancient history and the Second Boer War detour 3:48 What’s a hedge, really? Gold vs. inflation 4:21 15-year performance: gold vs. S&P 500 5:40 1980 to 2024: gold’s long climb back to break even 7:10 110 years of gold prices—brief spikes, long plateaus 8:54 The emotional allure of physical gold (and why it’s irrational) 9:44 Physical gold: storage, insurance, and Armageddon prep 11:10 GLD: a better, but still limited, gold investment 12:49 Gold’s chart pattern: flat, spike, crash, repeat 13:26 Why gold isn’t a real investment—it doesn’t grow 14:16 Gold mining stocks as an indirect investment 15:02 Surprise! Taiwan Semi uses gold in chip production 15:34 Crypto vs. gold: at least gold is pretty 16:07 Atomic number nerdiness and family science failures 16:39 Q&A: Will one-year income spike raise Part B premiums? 18:06 IRMAA form and exceptions for life-changing events 20:02 Medicare Part B premium ranges and adjustments 21:10 Listener Perry wonders: if pennies go away, can we melt them? 22:34 Today's pennies: mostly zinc, not a copper mine in your jar 23:56 Will the penny ever die? Bureaucratic inertia says no 24:14 DIY penny production? Just don’t. 25:16 Podcast etymology: Apple vs. The Guardian debate 26:51 Outro chaos: crows, jokes, and how to ask your questions Learn more about your ad choices. Visit megaphone.fm/adchoices
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    29 m
  • The Best New Strategy is Old

    The Best New Strategy is Old
    Apr 23 2025
    When markets get bumpy, emotions take the wheel—and that’s exactly why Don spends this solo episode reminding listeners that logic, evidence, and simplicity still win in the long run. He digs into why private investments aren't the magic they claim to be (even when Vanguard jumps in), why diversification still beats sexy strategies, and how the best “alternative” to bad investing is simply building a solid plan and sticking to it. Listener calls explore structured products, the Sharpe ratio, reverse mortgages, and how to spot a real fiduciary in the wild. 0:04 Money mistakes, solo hosting, and listener calls 1:17 Market volatility and emotional reactions 2:07 Logic and evidence beat financial “magic” 3:11 Vanguard’s alt fund and private asset hype 4:28 Private equity: opaque pricing, no liquidity 6:16 High-cost alternatives underdeliver 7:41 Vanguard alt fund: high fees, weak returns 9:13 Caller: staying long-term with S&P 500 10:20 Don: diversify beyond S&P with VT 11:30 Sharpe ratio explained; structured product skepticism 13:08 Structured notes: high fees, poor transparency 15:00 Fama quote: Few new ideas ever work 16:03 Caller: What does Berkshire Hathaway actually do? 17:23 Buffett builds value—why you can’t replicate it 20:08 You already own Berkshire in index funds 21:37 Caller: does currency manipulation matter? 23:32 Short answer: not really 25:45 Ignore most financial news—it’s just noise 27:22 Don flying solo this week 27:57 Caller: how to find a real fiduciary 31:16 Why Don doesn’t do meetings, and where to get help 36:12 Caller: reverse mortgages and property financing 39:55 Trusts and protecting assets—call a lawyer Learn more about your ad choices. Visit megaphone.fm/adchoices
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    46 m
  • Less Risk Can Cost More

    Less Risk Can Cost More
    Apr 22 2025
    Don flies solo on this episode of Talking Real Money, fielding calls and calling out the nonsense in fancy investment gimmicks. From market-neutral funds to buffered ETFs, he lays out the case for simplicity, diversification, and discipline over complexity and high fees. Along the way, he compares real-world returns of flashy funds to the humble Vanguard Balanced Index, explains the math behind risk and reward, and gently teases listeners dabbling in covered calls and premium farming. With real estate worries, Schwab steak dinners, and Tesla bulls turned cautious, this episode is classic Don: blunt, funny, and laser-focused on keeping it real… money. 0:04 Friendly welcome and a call for co-hosting help as Don flies solo 1:16 Call-in number shared, and Don apologizes for occasionally sounding political 3:01 Markets are volatile—skip the politics, let’s talk practical moves 3:59 Media fear-mongering and the pitch for “alternatives” 5:13 Barron's & WSJ pitch fancy stuff—Don calls it gimmickry 7:15 Long-term market history shows why patience wins 8:54 The Campbell Systematic Macro Fund vs Vanguard Balanced Index 11:20 Comparing performance, risk, and costs—spoiler: Vanguard wins 12:45 Complexity benefits salespeople, not investors 13:33 Jim from Tacoma asks about “buffered ETFs” 14:02 Don explains buffered ETFs, costs, and gimmick risk 16:23 The danger of complex products with little upside 17:41 Expense ratios and risk in buffered funds vs Vanguard again 19:34 Greg from Florida gets pitched “Schwab Personalized Indexing” over grouper 22:15 Direct indexing: useful, but only for big portfolios 23:20 Planning is more powerful than piecemeal strategies 25:58 High costs, tax strategies, and why a real plan matters 28:00 Laura in Olympia asks about selling her home to retire 29:24 Market timing fears and the power of diversification 30:59 Passive income myth and the burden of managing property 31:56 Adjusting risk with age and leaning on fiduciary advice 33:14 Real estate market is strong—Don gives Laura confidence 34:34 Jason from Sammamish—the “Tesla Bull”—asks about premium farming 36:01 Writing covered calls to buy into VONG—Don offers cautious perspective 37:51 Don’s stockbroker days and every strategy eventually failing 39:09 Covered calls as fun, not a serious strategy—Don doesn’t want copycats 39:52 Don signs off with a reminder: invest simply, plan wisely, and stop guessing Learn more about your ad choices. Visit megaphone.fm/adchoices
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    46 m
  • Wall Street Wants You Scared

    Wall Street Wants You Scared
    Apr 21 2025
    In this episode of Talking Real Money, Don McDonald and Tom Cock discuss practical strategies for navigating recessions without panic or unnecessary market timing. They critique the constant, fear-driven speculation around economic downturns and emphasize maintaining a disciplined, long-term approach. Highlighting actual investor behavior from Dalbar studies, they explain why market timing almost always results in poorer returns. Tom humorously criticizes aggressive pickup truck drivers and touches on avoiding common recession-investing mistakes, advocating instead for careful asset allocation, understanding emotional risk tolerance, and maintaining a sensible emergency fund. Listener questions prompt discussions on treasury ladders versus bond funds, the impact of expense ratios, and effective short-term cash management. 0:10 Surviving and thriving during recessions 0:26 Probability of recession discussions 1:04 Don criticizes recession scare tactics 1:46 Humorous digression about pickup trucks 2:49 Audience wants solutions, not problems 3:48 Avoiding common recession investing mistakes 4:39 Wall Street Journal example of market timing errors 5:29 Importance of emergency cash for retirees 6:04 Risk versus loss in investing 6:28 Understanding emotional risk tolerance 8:01 Critique of Wall Street's short-term focus 8:36 Long-term investing approach regardless of recession 9:01 Dalbar study reveals poor market-timing results 10:51 Long-term Dalbar investor returns vs. market returns 13:09 Humorous tangent on global population 13:44 Listener questions segment begins 14:33 Discussing asset allocation and bond fund concerns 16:18 Bond ladder vs. bond fund debate 17:20 Examining long-term bond fund returns 18:09 Benefits and drawbacks of bond funds 19:28 Comparing money market fund options (DTAXX) 21:06 Expense ratios significantly impact returns Learn more about your ad choices. Visit megaphone.fm/adchoices
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    26 m
  • Your Proper Risk

    Your Proper Risk
    Apr 16 2025
    Don and Tom explore the role of risk, resilience, and rational investing as they tackle stock market uncertainty, Roth conversion confusion, and Robinhood’s attempt to lure new users. They mix in practical advice with plenty of caller questions—plus a detour into air-dried laundry, social media skepticism, and an appreciation for the film Tune Out the Noise. It's Talking Real Money in its purest form: smart, skeptical, and occasionally funny. 0:04 Intro: Making money more understandable 1:09 Tom’s tech issues and growing role of the stock market 2:11 When you should sell stocks in retirement 3:31 Risk capacity vs risk tolerance explained 5:14 Funny promo: Financial Flinch Reflex (FFR) 6:32 Stock market participation then vs now 7:04 Caller: Gratitude for 'Tune Out the Noise' documentary 8:16 The real goal of the show: Tuning out the noise 10:45 Caller Paul on clothesline nostalgia and laundry talk 13:05 Documentary's backstory, David Booth’s art & Dimensional’s origins 14:30 Why market timing makes you crazy and poor 15:57 Caller Tom sees a Facebook Roth ad—what gives? 17:46 Breaking down legitimate Roth conversion strategies 19:31 Don’s rant on Facebook, Tom’s retreat to LinkedIn 20:39 Caller Roger: Can you convert RMDs into Roth? (Spoiler: no) 21:37 Clarifying RMDs vs Roth conversions—rules & misunderstandings 24:14 Direct 401(k) to Roth IRA conversion—confirmed 25:59 Q: Why add bonds if you're 20 years from retirement? 28:03 How real people react to 50% portfolio drops 29:16 The truth about emotional investing and loss tolerance 31:08 Why Robinhood’s "free money" comes at a cost 32:56 Custodians vs Gamifiers: Schwab, Fidelity, and the Robinhood trap Learn more about your ad choices. Visit megaphone.fm/adchoices
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    46 m
  • A Wild Ride

    A Wild Ride
    Apr 15 2025
    Wild market swings, political chaos, and investor confusion set the stage for this episode. Don and Tom break down the emotional impact of volatility, the myths of market timing, and the wisdom in sticking to long-term plans. With insights from Jason Zweig and some smart listener Q&A, they remind us that discipline—not prediction—is what builds wealth, even in uncertain times. 0:01 Intro with the 'interesting times' curse and the current market confusion 0:48 S&P 500 drops 10.5% in two days, bounces back 9.5%—market whiplash 1:33 How volatility overloads the brain and leads to bad decisions 2:28 Few people understand tariffs—uncertainty drives market instability 3:24 The idea of the market as a fourth branch of government 3:38 Why owning stocks long-term still makes sense 5:03 Investor panic: emotional decisions vs. rational plans 6:27 Jason Zweig's four questions for investors—clarity through chaos 8:13 Why you own stocks: not trade stability, but long-term growth 9:08 What's changed? Trust, tariffs, and long-term resilience 10:27 You earn the premium by enduring market fear 10:31 The emotional trap of anchoring and chasing returns 11:44 The fantasy of upside-only investing—and the danger of chasing it 13:04 Caller Jeff: Should I dollar-cost into ETFs or sell and buy all at once? 14:27 Advice: In a retirement account, just make the shift—it’s lateral 16:04 Caller Bill: Accidental portfolio drift and how to rebalance to 50/50 19:05 Simple ETF plan vs. target-date funds for retiring investors 20:37 Caller Joe: Real estate success and why stocks aren’t for everyone 27:09 The overlooked danger of foreign countries selling U.S. debt 30:24 Bond prices, interest rates, and currency impacts explained 32:04 U.S. credit rating vs. the world—and why diversification still matters 33:28 Tariff risks, political uncertainty, and long-term investing perspective 35:25 If you’ve invested right, you don’t need to react 39:04 Tom’s "work trip" vacation and Don flying solo next week Learn more about your ad choices. Visit megaphone.fm/adchoices
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    45 m
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