How is it the global economy still functions even though most individuals do not trust brands, public institutions or each other.

Topics covered in this episode include:

• The low level of interpersonal trust around the world
• What is social capital and how it facilitates a trust economy.
• What are the incentives that encourage individuals and businesses to produce goods and services rather than steal from each other.
• How does trust impact economic growth.
• Does traveling harm or help local residents.

Thanks to Masterworks and LinkedIn for sponsoring the episode.

For show notes and more information on this episode click here.

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How a safety-first retirement approach using income annuities is more predictable and takes less money than depending entirely on your investment portfolio to fund your retirement.

Topics covered include:

• The difference between a safety-first and probability-based approached to retirement.
• How income annuities work.
• Why setting a sustainable retirement withdrawal rates requires planning for below average market returns and above average life expectancy.
• How using an income annuity and other guaranteed income to fund basic living expenses means not having to set a sustainable withdrawal rate.
• How long can retirees expect to live.
• Why most retirement portfolios are not as liquid as retirees think.
• Why are retirees hesitant to use income annuities and how to overcome the fear of doing so.

Thanks to Policygenius and Vistaprint for sponsoring the episode. Use code David50 for Vistaprint.

For show notes and more information on this episode click here.

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Two Money For the Rest of Us podcast listeners are struggling with spending money. The first listener is 22 and lives in Canada. He feels as if his money is going everywhere such as saving for a house, car, and retirement, but very little goes to things he enjoys.

The second listener is 46 with a $2 million net worth, but in his case, he finds he doesn’t enjoy spending money on himself. He is willing to spend money on his wife and two children, but he still finds himself feeling tight, fearful and worried about money and his business, even though he has plenty of wealth and is close to his goal of financial freedom.

In this podcast episode, we consider the standard to use to determine how much to spend on ourselves.

Topics covered include:

• The most difficult part of figuring out how much is enough.
• What is the Voluntary Simplicity movement and how it can help us decide where to spend our money.
• What is the difference between comforts and luxuries.
• What is the difference between joy and pleasure.
• What is a simple filter we can use to determine where to spend money.

Thanks to Masterwork and NetSuite for sponsoring the episode.

For show notes and more information on this episode click here.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How regulatory changes could lead to a boom in new ETFs, including actively managed ETFs. Why ETFs continue to be one of the most innovative, cost effective and tax efficient investment vehicles.

Topic covered include:

• How big is the ETF market relative to mutual funds.
• What are the benefits of ETFs that have allowed them to gain market share from mutal funds.
• What are some of the negatives with ETFs.
• What has changed to make it easier for sponsors to launch new ETFs.
• How do non-transparent actively managed ETFs work.
• What are some examples of more complicated, outcome-based ETFs.

Thanks to LinkedIn and SleepNumber for sponsoring the episode.

For show notes and more information on this episode click here.

• [2:45] The benefits of ETFs
• [8:40] Challenges with ETFs
• [12:50] The rules that have changed
• [15:25] What is an AP Representative?
• [18:40] Should you invest in actively managed ETFs?
• [21:30] All about outcome Based ETFs
• [26:20] Understand what drives performance

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How to find your unique work that can bring satisfaction and income before and during the traditional retirement years.

Topics discussed in this episode include:

• What is settled work.
• Why you need time and space to find and do your best work.
• What is a commonplace book and why it can be helpful.
• How filters and saying no can help us control our time.
• The important role of serendipity in finding our path.

Thanks to The Great Courses Plus and Vistaprint (use code David50) for sponsoring the episode.

For show notes and more information on this episode click here.

• [0:20] An antique lamp store in Phoenix
• [3:10] The concept of “Settled Work”
• [5:30] How do we find our settled work?
• [7:40] David’s commonplace book
• [12:15] Why we need settled work
• [15:00] Take time to reflect
• [16:05] Take back control of your time
• [18:00] The art of saying “no”
• [21:00] Capturing Serendipity

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Is it possible to be too diversified and how can you tell? Why Warren Buffet thinks diversification is protection against ignorance.

Topics covered include:

• The skills you need to be able to select individual stocks.
• How have active managers outperformed relative to passive indexing products.
• How much diversification is too much and a test to determine if one is over diversified.
• What is factor investing and which factors have worked over the past 200 years.

Thanks to LinkedIn and Policygenius for sponsoring the episode.

For show notes and more information on this episode click here.

• [2:22] Exploring the concept of over-diversification
• [5:25] Should you pay for an investment advisor to select individual stocks?
• [8:05] An individual investor should choose index funds
• [11:10] Determining how much diversification is enough?
• [13:37] Weighing the cost against the benefits
• [16:10] When being over diversified is possible
• [17:05] Analyzing the listener question regarding over-diversification
• [20:20] A Fascinating study analyzing 200 years of factors
• [25:08] Layer on additional value factor

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David's book Money for the Rest of Us: 10 Questions to Master Successful Investing is now available (at least the e-book version). To celebrate, here is a bonus episode with excerpts from the forthcoming audiobook.

Please enjoy the Introduction and Chapter One.

Also, as part of the book launch, David will be hosting an Ask Me Anything (AMA) on Reddit on Wednesday, October 30, 2019 at 1PM Eastern time. Please join us.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What are the timeless principles we can follow in order to become better investors. 

Topics covered in this episode include:

• How a book's permanence makes it different from a podcast.
• How David's book got written and published and why his publisher just recalled the hardcover version of the book.
• What are the 10 questions we should answer before we invest in anything.

Thanks to NetSuite and The Great Courses Plus for sponsoring the episode.

For show notes and more information on this episode click here.

• [0:20] How David decided to write a book.
• [3:00?] The right book can change your life.
• [4:20] The art of writing a book.
• [7:00] The extensive process of writing a book.
• [9:57] Recording the audiobook.
• [11:32] Question 1: What is it?
• [13:36] Question 2: Is it investing, speculating, or gambling?
• [14:32] Question 3: What is the upside?
• [15:54] Question 4: What is the downside?
• [16:42] Question 5: Who is on the other side of the trade?
• [18:06] Question 6: What is the investment vehicle?
• [18:58] Question 7: What does it take to be successful?
• [20:20] Question 8: Who is getting a cut?
• [21:03] Question 9: How does it impact your portfolio?
• [22:05] Question 10: Should you invest?
• [23:06] What happened to the book launch

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What are the benefits and risks of investing in exchange-traded notes (ETNs) compared with ETFs.

Topics covered include:

• How big is the market for ETNs compared with ETFs.
• How ETNs can do a better job tracking their target index than ETFs.
• Why ETNs can be more tax-efficient than ETFs..
• How ETNs have counterparty risk, pricing risk, and liquidity risk.
• Under what circumstances would an ETN be preferred over an ETF.

Thanks to WIX and Policygenius for sponsoring the episode.

For show notes and more information on this episode click here.

• [0:21] ETPs, ETFs, and ETNs—which is the most popular?
• [3:10] Exchange-Traded Notes exhibit low tracking error.
• [5:28] ETNs are vastly more tax-efficient than ETFs.
• [6:14] Examples of Exchange Traded Notes.
• [10:16] Should there be a default-risk discount on ETNs?
• [13:34] Why there is issuance and closure risk with ETNs.
• [17:21] Clarification on the term “Net Asset Value” when referring to ETNs.
• [17:58] The issues of illiquidity risks and high fees.
• [20:46] Exchange Traded Notes are a niche product.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Why some analysts believe the Consumer Price Index formula understates inflation while others believe the CPI formula overstates inflation. What really matters to us individually when it comes to inflation.

Topics covered in this episode include:

• What is inflation and what causes it.
• How is the Consumer Price Index calculated and how has the CPI formula changed over time.
• What are examples of different CPI measures.
• Why do some analysts believe U.S. inflation is higher than what CPI states while others believe inflation is lower than what the Consumer Price Index shows.
• How inflation calculations impact the measurement of other economic data such as the rate of poverty and the growth in real wages.
• What are consumer attitudes toward inflation and why do central banks worry about changes in household and business inflation expectations.
• How individuals can monitor and improve their cost of living.

Thanks to Sleep Number and Money For the Rest of Us Plus for sponsoring the episode.

For show notes and more information on this episode click here.

• [0:18] Traditional methods of measuring inflation.
• [4:00] The CPI has changed from a fixed-basket approach to a consumer-representative approach.
• [6:39] The controversy concerning the accuracy of CPI measurement.
• [9:11] Is inflation overstated because of how the CPI-U is calculated?
• [11:23] Rwanda case study: the connection between inflation and poverty.
• [15:17] Why governments care so greatly about the public’s view of inflation.
• [17:31] How inflation expectations are measured.
• [18:52] How do we calculate the desired standard of living?
• [20:41] The CPI isn’t an accurate depiction of the standard of living.
• [24:20] Are you satisfied with how you spend your money?

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.