Don and Tom take a sharp look at Vanguard’s surprising new direction, especially the decision to fold annuities into 401(k) target-date funds through lightly regulated collective trusts. They contrast Vanguard’s historical simplicity with today’s trend toward complexity, comparing costs, structure, and risk across major providers. Listeners call in with questions about Roth conversions, Schwab target-date funds, entering the market after a forced delay, and whether TIPS or buffered ETFs are worth owning. Throughout, Don and Tom hammer home the fundamentals: low costs matter, complexity harms investors, active management rarely pays, and your stock/bond mix—not gimmicks—drives long-term success.

0:04 Opening and setup: Vanguard’s recent drift toward complex products

1:03 Vanguard’s dominance in target-date funds and why simplicity used to be the point

1:58 Vanguard adding annuities into 401(k) target-date funds — is this helping anyone?

3:11 What does an annuity inside a target-date fund even mean?

4:03 The 25% annuity allocation example and the misleading “8% payout” illusion

5:03 TIAA’s role and why annuity costs remain unclear

6:28 Are annuities inside retirement plans a solution in search of a problem?

7:38 The fine print: Vanguard’s new collective trusts and weak disclosure requirements

8:20 Why collective investment trusts are lightly regulated and potentially concerning

9:07 Caller: Roth conversions when you’re withdrawing to live on — should you stop?

11:32 When Roth conversions lose their benefit and why you need cash for taxes

12:21 Caller: Are Schwab target-date funds worth it in a Roth? (Short answer: No.)

13:31 Why Schwab’s higher fees and low international allocation are a problem

14:52 Active management inside target-date funds — unnecessary and risky

16:12 Risk vs. return: Schwab’s higher volatility and lower historical performance

16:41 Caller: Missed market gains while transferring funds — how to get back in

18:49 When market discomfort signals a stock/bond misalignment

20:16 Comparing Schwab vs. Vanguard target-date funds over 15 years

21:37 Why lower cost + lower volatility + better return makes Vanguard the clear win

22:02 Should you fear future gimmicks like private credit inside target-date funds?

23:29 Caller PSA: Realizing capital gains in a low-income year

24:06 ETF explosion — 908 new ETFs this year, most using leverage or derivatives

25:29 Why “ETF” doesn’t mean good; junk ETFs equal junk mutual funds

26:05 Structural benefits of ETFs and why the market prefers them

27:29 Soccer vs. NFL detour, then back to phone calls

29:07 Listener question from Colorado: Should you buy a TIPS fund?

31:01 Why TIPS rarely add value in diversified portfolios

33:22 TIPS behave more like inflation bets than true inflation protection

34:34 Why simple, short/intermediate, high-quality bonds—and CDs—often do the job

36:17 Caller: What is a buffered ETF, and why does it sound like an annuity?

37:29 Buffered ETFs explained: expensive, complicated, and unnecessary

38:30 Why gimmicks dominate product launches and how they hurt investors

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