Don and Tom tackle the universal truths of investing — namely, that most investors underperform the market due to their own behavior. They discuss the persistence of emotional decision-making, the dangers of market timing, and the importance of diversification and sticking to a plan. Listener calls cover UGMA accounts, bond allocation in IRAs, downsizing for assisted living, robo-investing, annuities, and advisor ethics. The show mixes data-driven insight with classic Real Money humor and real-world financial guidance.
0:04 Universal truths of investing and investor behavior
2:07 Why investors underperform their own funds (Morningstar “Mind the Gap”)
3:30 Market sentiment, cash levels, and memories of 2000 and 2008
4:31 Peter Lynch on market corrections and investor overconfidence
5:40 The danger of timing the market and trusting stocks too much
6:40 “Financial Flinch Reflex” parody PSA (Appella Wealth ad)
7:41 Listener: diversifying a Vanguard UGMA for grandson’s education
12:14 Listener: TSP rollover, age-based bond allocation, and risk tolerance
14:40 The right asset mix for long-term investors in their 40s
15:48 Listener: selling condo for assisted living — planning for late-life care
18:45 Spending vs. inheritance — why it’s okay to use your own money
20:27 Producer’s question: is SoFi robo-investing safe for beginners?
22:56 Emergency funds vs. long-term investing; debt priorities
26:03 Listener: spouse investing in individual stocks — handling differences
28:32 Listener: total market vs. S&P 500 core fund; AVGE and DFAW explained
30:17 Listener: 8% annuity “crediting rate” myth and why it’s misleading
35:42 Real internal rate of return on annuities and risk comfort
37:12 Listener: following advisor from Ameriprise to a bank — fiduciary warning
39:36 Why commissioned products persist and how fiduciary rules differ
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