Money For the Rest of Us

How using a deferred income annuity can increase retirement income compared to an immediate annuity or a bond ladder.Topics covered include:How immediate annuities and deferred income annuities workWhat are mortality credits, and why they are a key diversifierExamples of how mortality credits lead to a 1% to 1.5% higher annualized return over several decadesHow to decide whether an annuity is right for youEpisode SponsorsNetSuite LinkedIn Jobs – Use this link to post your job for free on LinkedIn JobsInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesPost: No, really. Deferred income annuities (DIAs) are superior to SPIAs in every way by Boglehead User "GoWithTheCashFlow"—BogleheadsActuarial Life Table—SSATIPSLadderSafety-First Retirement Planning: An Integrated Approach for a Worry-Free Retirement by Wade D. Pfau—Retirement ResearcherRelated Episodes464: More Ways to Lock in Higher Yields in Case Interest Rates Fall455: Easier Investing, Richer Life: TIPS Ladders to Annuities407: Worry-Free Retirement Investing279: Why All Retirees Should Consider an Income AnnuitySee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

02-19

30:11

The U.S. and the UK each announced they were establishing sovereign wealth funds. We explore the purposes and types of sovereign wealth funds, how they invest, and some concerns with the U.S. establishing one.Topics covered include:What are the four types of sovereign wealth funds, and why the U.S. doesn't fit the typical use caseHow sovereign wealth funds navigate between politics and generating high returnsWhy a U.S. sovereign wealth fund, depending on its size, could crowd out other investment capital, leading to lower investment returnsHow the U.S. federal government already invests in its economy without a sovereign wealth fundEpisode SponsorsDelete Me – Use code David20 to get 20% offLinkedIn Jobs – Use this link to post your job for free on LinkedIn JobsInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesFact Sheet: President Donald J. Trump Orders Plan for a United States Sovereign Wealth Fund—The White HouseA Plan For Establishing A United States Sovereign Wealth Fund—The White HouseInternational Forum of Sovereign Wealth FundsSovereign Wealth Funds: Past, Present and Future by Salman Bahooab, Ilan Alonb, and Andrea Paltrinieria—ScienceDirectGuardians releases 2024 Annual Report—NZ Super FundUK Wealth Fund Brings Government And Private Investment Together by Efraim Chalamish—Global Finance2024 Invesco Global Sovereign Asset Management Study—InvescoTop 100 Largest Sovereign Wealth Fund Rankings by Total Assets—Sovereign Wealth Fund InstituteThe Importance and Perspectives of Sovereign Wealth Funds in the Globalised Economy by Jan Černohorský and Kateřina Tesnerová—SHS ConferencesSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

02-12

23:54

This week on episode 510, we share a conversation between Ben Inker of GMO and Greg Dowling of FEG Investment Advisors on contrarian investing, deep value stocks, and the rise of passive investing. David introduces the episode by sharing his key takeaways from the discussion.FEG Investment Advisor is David's former institutional advisory firm, where he worked for 17 years, before founding Money for the Rest of Us. Greg Dowling is Chief Investment Officer of FEG, and David's former business partner and colleague.Topics discussed in the episode include:How experienced professionals can have a significant influence on one's career, such as the impact Jeremy Grantham and David Swenson had on Ben's careerThe impact of the rise of passive investingInvestment opportunities in quality and deep-value stocksThe distinct risks of the high concentration in large-cap tech stocksShow NotesFEG episode pageInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusRelated Episodes491: The Five Layers of Investing419: How to Make Portfolio and Asset Allocation Changes401: Why Diversifying Your Portfolio Feels AwfulSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

02-05

51:19

We explore what private credit, or direct lending, is and how to invest in it. We also show how it is similar and different from investing in leverage loans and CLOs.Topics covered include:Why more companies are staying privateHow private credit differs from the leverage loan marketWhy private credit is growing so rapidlyWhat are the benefits to private credit investingWhat are liquid and less liquid ways to invest in private creditSponsorsStawberry.me AcornsInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesThe Credit Markets Go Dark by Jared A. Ellias and Elisabeth de Fontenay—SSRNThe Lost Promise of Private Ordering by Cathy Hwang, Yaron Nili, and Jeremy McClane—SSRNInvestments MentionedVanEck BDC Income ETF (BIZD)Barings Corporate Investors Fund (MCI)Long AngleCliffwater Enhanced Lending FundBlackRock Private Credit Fund (BDEBT)BondBloxx Private Credit CLO ETF (PCMM)Virtus Seix AAA Private Credit CLO ETF (PCLO)See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

01-29

30:49

Natural disasters are becoming more severe and costly—who should bear the financial burden? We explore the tension between socialized risk and market-based insurance.Topics covered include:The surprisingly large percentage of natural disaster losses that are uninsuredWhy natural disaster severity is increasingA deep dive into the complexity of the home insurance market, including state-run home insurance plansHow California has tried to update its home insurance regulations, leading to potentially greater coverage but higher premiumsHow socialized insurance relieves the cost burden to consumers but can also lead to riskier behavior and adverse risk selectionEpisode SponsorsAsset CampNetSuite Insiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesCalifornia wildfires: What we know about L.A.-area fires, what caused them, who is affected and more by Tim Stelloh, Marlene Lenthang, Rebecca Cohen and Phil Helsel—NBC NewsClimate change is showing its claws: The world is getting hotter, resulting in severe hurricanes, thunderstorms and floods—Munich REShaping the Future of Wildfire Insurance in California: New Insights from the Most Comprehensive Wildfire Risk Model in the Market by Firas Saleh—Moody'sInsurers’ Rule Change Puts California Homeowners on the Hook for L.A. Fire by Jean Eaglesham and Sara Randazzo—The Wall Street JournalCommissioner Lara issues landmark regulation to expand insurance access for Californians amid growing climate risks—California Department of InsuranceCalifornia Was Already in Home-Insurance Crisis Before Los Angeles Infernos by Jean Eaglesham and Joe Flint—The Wall Street JournalThe World Is Getting Riskier. Americans Don’t Want to Pay for It. by Greg Ip—The Wall Street JournalReinsurers little exposed to LA fires after retreat from disaster risks by Lee Harris—The Financial TimesA Survey of Residual Market Plan Assessment and Recoupment Mechanisms by Nancy Watkins, Robert Lee, and Rehan Siddique—MillimanRelated Episodes481: How to Navigate the Crippling Home Insurance Crisis444: Natural Disasters: Are They Truly Increasing? Investments MentionedStone Ridge High Yield Reinsurance Risk Premium fund (SHRMX)See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

01-22

27:37

How geography contributes to economic growth and can increase or lower the cost of living.Topics covered include:Why living in a developing country like Costa Rica is still relatively expensiveHow Amazon and e-commerce platforms lower the cost of livingWhy we should consider slowing down our rate of consumptionHow geography is impacting the rollout of AIEpisode SponsorsLinkedIn Jobs – Use this link to post your job for free on LinkedIn JobsNetSuite Insiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesMarket Research in Costa Rica: Costa Rica is a strong market in Central America providing many benefits.—SIS International Research & StrategyWorld Data Country Comparison: Costa Rica & USAWhy is Gas so Expensive in Costa Rica? by Sarah Jordan—The Tico TimesThe Trailblazers: Inter-American Highway 1940 - 1957 by Norman Wood—U.S. Department of Transportation Federal Highway Administration Highway HistoryUnited States eCommerce Sales Growth (2018 to Q3 2024) by Jason—SellersCommerceThe Era of Finance CEOs Running Retailers Is Over by Amanda Mull—BloombergAI set to fuel surge in new US gas power plants by Amanda Chu and Jamie Smyth—The Financial TimesWhat happened to the artificial-intelligence revolution?—The EconomistLiebreich: Generative AI – The Power and the Glory by Michael Liebreich—BloombergNEFRelated Episodes444: Natural Disasters: Are They Truly Increasing? 413: What if the World Stopped Shopping?151: Amazon Impacts EverythingSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

01-15

30:16

In episode 506, Joshua shares the pros and cons of living outside of your home country. He convinces David why he needs more than one passport. Finally, Joshua makes a strong case for not retiring, and if one does, under what circumstances.Episode SponsorsDelete Me – Use code David20 to get 20% offAcornsInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow Noteshttps://www.radicalpersonalfinance.comRelated Episodes446: Die with Zero: Why You Should Start Spending Now437: How to Live Like You Are Already Retired371: Find Your Retirement Investing and Living StyleSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

01-08

44:16

In our final episode of the year, I converse with author and data scientist Coco Krumme about the benefits and costs of optimization in finance, industry, and our daily lives. We explore AI and its overlap with optimization. We also consider the pros and cons of life optimization and finally discuss the extreme challenge of opting out.Episode SponsorsNetSuite Delete Me – Use code David20 to get 20% offInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesOptimal Illusions: The False Promise of Optimization by Coco Krumme—Penguin Random Housecocofolio.comCoco Krumme—LinkedInRelated Episode480: Beyond Faster (T+1) Trade Settlement: The Hidden Costs of OptimizationSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

12-18

38:26

How asset class returns move in cycles with periods of above-average returns followed by periods of lower returns. How has the rise of passive indexing led to higher stock valuations, and what does that mean for markets?SponsorsNetSuite - Download the CFO’s Guide to AI and Machine LearningLegalZoom - Use code David10 to 10% offInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesThe Equity Risk Premium: Nine Myths (JPM Series) by Rob Arnott—Research AffiliatesThe Greatest Scourge in Factorland: Revaluation Alpha = Fake Alpha (JPM Series) by Rob Arnott—Research AffiliatesPASSIVE INVESTING AND THE RISE OF MEGA-FIRMS by Hao Jiang, Dimitri Vayanos, and Lu Zheng—NBERLimits to Diversification: Passive Investing and Market Risk by Lily H. Fang, et al.—SSRNRelated Episodes503: U.S. Stocks Have Never Been This Overhyped or Expensive500: The S&P 500 Index and the Decade Ahead468: Lessons from Japan’s 34 Years of Stock Market Underperformance390: Are BlackRock and Vanguard Too Big and Powerful?234: Index But Don’t HerdSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

12-11

34:24

What are the tangible and intangible factors that have contributed to long-term U.S. stock market outperformance compared to the rest of the world? Despite these advantages, why might we still want to continue to be globally diversified?SponsorsDelete Me – Use code David20 to get 20% offLegalZoom - Use code David10 to 10% offInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesAmerican productivity still leads the world—The EconomistThe Outlook for Long-Term Economic Growth by Charles I. Jones—Federal Reserve Bank of Kansas CityHow Much Will Global Warming Cool Global Growth? by Ishan B. Nath, Valerie A. Ramey, and Peter J. Klenow—UC San DiegoTechnology and demand drivers of productivity dynamics in developed and emerging market economies by Alistair Dieppe, Neville Francis, and Gene Kindberg-Hanlon—European Central BankCapitalism is in worse shape in Europe by Ruchir Sharma—The Financial TimesThe Mother of All Bubbles by Ruchir Sharma—The Financial TimesThe Curious Incident of the Elevated Profit Margins by James Montier—GMOFederal Surplus or Deficit [-] as Percent of Gross Domestic Product - FREDEuro area government deficit at 3.6% and EU at 3.5% of GDP—eurostatEnd of an era: The coming long-run slowdown in corporate profit growth and stock returns by Michael Smolyansky—Federal Reserve BoardShould investors just give up on stocks outside America?—The EconomistRelated Episodes500: The S&P 500 Index and the Decade Ahead499: What Makes an Economy Prosperous? Spotlight on Cuba and Argentina343: Why the Productivity Slowdown Could Lead to Lower Living StandardsSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

12-04

28:10

Why has there been renewed interest in nuclear power generation in the last couple of years, and how can we invest in it?Topics covered include:Why did Microsoft sign an agreement to reopen a nuclear reactor at the infamous Three Mile Island nuclear facilityHow much does nuclear energy contribute to global power generationWhy is demand for electricity acceleratingWhat are the advantages and challenges with nuclear energyWhat investment vehicles individuals can use to invest in nuclear energyEpisode SponsorsNetSuite Delete Me – Use code David20 to get 20% offInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesMicrosoft in deal for Three Mile Island nuclear power to meet AI demand by Myles McCormick and Jamie Smyth—The Financial TimesNuclear Power Was Once Shunned at Climate Talks. Now, It’s a Rising Star. by Brad Plumer—The New York TimesInside Diablo Canyon Nuclear Power Plant | BG2 w/ Bill Gurley & Brad Gerstner—YouTubeQ&A - Germany’s nuclear exit: One year after—Clean Energy WireFukushima Daiichi Accident—World Nuclear AssociationChernobyl Accident 1986—World Nuclear AssociationNuclear Energy in a Low-Carbon Energy Future—NEIElectricity Mid-Year Update - July 2024—IEAWhat is U.S. electricity generation by energy source?—U.S. Energy Information AdministrationHow old are U.S. nuclear power plants, and when was the newest one built?—U.S. Energy Information AdministrationGlobal price of Uranium—FREDInvestments MentionedPelican Energy PartnersSprott Physical Uranium Trust Performance (SRUUF)GlobalX Uranium ETF (URA)VanEck Uranium and Nuclear ETF (NLR)Sprott Uranium Miners ETF (URNM)Sprott Junior Uranium Miners ETF (URNJ)Related Episodes469: Which Will Perform Better: Berkshire Hathaway or Utility Stocks?384: Has a Commodities Bull Market Supercycle Started? If So, How Do You Invest in It?See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

11-20

24:48

We explore what strategy and systems are and how we craft and change them. We consider how investment strategies and financial systems have changed over the decades and why this matters to your financial decisions.SponsorsLinkedIn Jobs – Use this link to post your job for free on LinkedIn JobsDelete Me – Use code David20 to get 20% offInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesRuminating on Asset Allocation by Howard Marks—Oaktree CapitalMichael E. Porter—Harvard Business SchoolThis Is Strategy by Seth Godin—Simon & SchusterVictor Meets the Boglehead by Victor Haghani & James White—VettaFi Advisor PerspectivesStatic vs Dynamic Asset Allocation; Victor Meets the Boglehead—Bogleheads.orgTim Cook on Why Apple’s Huge Bets Will Pay Off By Ben Cohen—The Wall Street JournalRelated Episodes491: The Five Layers of Investing451: How Much Should You Invest in Stocks? The Art of Position Sizing in a Volatile Market420: Does a 60/40 Balanced Portfolio Still Work?397: How To Invest Based on CyclesSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

11-13

32:03

In the 500th episode of Money for the Rest of Us, we focus on the S&P 500 Index. How has the index changed, and why have U.S. stocks performed so well? Will U.S. stocks only return 3% in the next decade, as Goldman Sachs predicts.We also discuss major themes covered on Money for the Rest of Us over 500 episodes and what are our plans for the future. Thanks for being a part of Money for the Rest of Us over the past decade.SponsorsNetSuite - Download the CFO’s Guide to AI and Machine LearningShopify - Sign up for a $1 per month trial periodInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesSelect Sector Indices Consultation on Constituent Weightings Calculations – Results—S&P GlobalWhat Does an Election Year Mean for the Market?—S&P GlobalThe Great Rotation: A potential unwinding of hyper-concentration in the US may favor balanced global portfolios by Brian Chingono—VerdadThe Great Rotation (Part 2): The United States’ outsize weighting in commercial indices appears unjustified by its share of global GDP by Brian Chingono—VerdadDecade of Big S&P 500 Gains Is Over, Goldman Strategists Say by Sagarika Jaisinghani—BloombergDavid Stein LinkedIn Post—LinkedInVanguard warns investors over company stake limits by Steve Johnson, Will Schmitt, and Brooke Masters—The Financial TimesSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

11-06

30:57

We explore eight things that contribute to a healthy, growing economy and where Cuba and Argentina have fallen short.Topics covered include:Why Cuba continues to have rolling energy blackoutsWhy economic sanctions frequently don't workHow Argentina's President Millei is taking a "chainsaw" to the nation's economyWhy emerging markets will need to change their export-oriented growth trajectoryWhat are the risks to the long-term health of the U.S. economySponsorsMonarch Money – Get an extended 30-day free trialLegalZoom - Use code David10 to 10% offInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesCuba is out of supplies and out of ideas—The EconomistCuba plunged into crisis by long power blackouts by Ed Augustin—The Financial Times Power Outage Plunges All of Cuba Into Darkness by Frances Robles—The New York TimesWhy Economic Sanctions Backfire: The Role of Emigration in the Venezuelan Case by Nicolás Idrobo—SSRNThe Impact of the Cuban Adjustment Act on Cuban Immigrants in the US by Tamarys Bahamonde—SSRNHow is Javier Milei performing after nearly 11 months in office? by Michael Stott and Ciara Nugent—The Financial TimesThe weakest links in the global economy are on the mend by Ruchir Sharma—The Financial TimesArgentina’s poverty rate soars above 50% under Javier Milei by Ciara Nugent—The Financial TimesArgentina Inflation Slows to 2021 Levels in Win For Milei by Manuela Tobias—BloombergArgentina’s economy minister strikes defiant note on default risk by Ciara Nugent and Michael Stott—The Financial TimesArgentine Debt Rises Out of Distress Territory on Milei Reforms by Kevin Simauchi—BloombergArgentina Scrapped Its Rent Controls. Now the Market Is Thriving. by Ryan Dubé—The Wall Street JournalDeveloping Countries Can’t Count on Manufacturing to Supercharge Growth by Kai Schultz and Shruti Srivastava—BloombergRelated Episodes411: Is Emerging and Frontier Markets Investing Still Worth It? – With Asha Mehta409: What Is the IMF and Why Is It Controversial?233: Is An Emerging Markets Crisis Imminent?93: Capitalism, Complexity and CubaSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

10-30

26:19

In episode 498, David shares how his investing has changed over the past ten years and lessons you can apply to your portfolio.Document Your JourneyKeep ExperimentingBe Willing to Adopt New Asset ClassesBe Very PatientTrade Less, Focus On Long-term DriversMonetary DiversificationDon't Focus on Relative PerformanceIgnore the NoiseTake Your TimeThere Is No Right Way to InvestSponsorsNetSuite Delete Me – Use code David20 to get 20% offInsiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletterOur Premium ProductsAsset CampMoney for the Rest of Us PlusShow NotesThe Investor Podcast 668: What I Learned About Investing w/ Stig BrodersenRelated Episodes454: How To Invest – Ten Rules of Thumb for Individual Investors423: A “Safe” 6% Yield: The Case for Investment Grade CLOs372: When Should You Sell An Investment?336: Own What Is RealSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.