This week Don tackles seven excellent listener questions covering everything from credit cards and emerging markets to covered-call ETFs, annuities, retirement buckets, and whether investors should worry about new additions to stock indexes.

00:51 Summer surge in listener questions

01:15 LitReading success and thanks

02:01 Are credit cards really evil?

05:09 Emerging markets inside international funds

07:44 Paying kids for chores to fund Roth IRAs

10:58 Covered-call ETFs (JEPI and others)

15:47 Helping a friend avoid an expensive annuity

19:40 Should index investors worry about SpaceX?

21:38 Bucket strategy and retirement portfolios

Questions? Comments? Click!

What exactly is a model portfolio—and should you trust one with your retirement?

Tom and Don explain why professionally designed model portfolios can improve consistency and reduce advisor bias, but also why investors should be wary as firms like Morningstar begin adding private equity, private credit, and other alternative investments to traditional portfolios.

00:12 What is a model portfolio?
02:11 Why advisors should use investment models
03:31 Morningstar’s new private market portfolios
05:20 Liquidity problems with private investments
07:27 The high cost of private equity
08:12 “Persistent inflation” claims examined
10:49 Why Wall Street wants retirement assets
12:23 Listener questions begin
14:17 AUM vs flat-fee vs hourly advisors
21:22 Do ETF expense ratios add together?
23:21 Roth IRA income limits and backdoor strategy
27:44 BrokerageLink inside a 401(k)
31:00 Costco, avocado oil, and gas prices

Questions? Comments? Click!

Can keeping up with financial news actually make you a better investor—or just make you more confident about making bad decisions? Don and Tom dig into research on how markets react to news, why investors tend to overreact to splashy stories and underreact to boring numbers, and whether sophisticated traders can actually exploit those inefficiencies. Then, a caller nearing retirement asks how to build a conservative brokerage account to bridge the years before Social Security. Plus, the guys compare Avantis global ETFs with Vanguard’s Total World Stock ETF, debate the value of factor tilts, and marvel at how quickly investors can pile billions into the latest hot investment idea.

• 00:05 Can financial news make you a better investor?
• 00:52 The illusion of being ahead of the market
• 01:44 Can investors profit from company news?
• 02:42 Are markets really efficient?
• 03:33 What 6.7 million Reuters articles reveal about news
• 04:40 How much financial news is actually predictable?
• 05:06 Why investing based on headlines is a fool’s errand
• 06:18 Bad news, numbers, and investor underreaction
• 07:06 Why investors overreact to ambiguous, high-attention news
• 08:10 Investment strategies that ordinary investors can’t realistically use
• 09:02 Be skeptical of your reaction to splashy news
• 09:36 Big news isn’t always new information
• 10:31 The factor zoo and the cost of complicated investing
• 11:04 Can expensive strategies overcome their fees?
• 12:28 Why diversified investors can mostly ignore the news
• 13:32 Soccer, summer football, and Orlando’s forgotten team
• 14:10 Listener call: Building a retirement bridge account
• 15:00 Retirement plans, Social Security, and a future inheritance
• 16:28 How soon will the retirement money be needed?
• 17:10 Matching asset allocation to short-term spending needs
• 18:04 Using bonds and cash for retirement stability
• 19:28 Is it okay to hold bonds in a taxable brokerage account?
• 20:43 A listener puts Don and Tom on his financial Mount Rushmore
• 22:02 Halloween in Celebration and 1,000 pieces of candy
• 22:46 Why did Avantis launch AVTM?
• 23:58 AVTM versus Vanguard Total World Stock ETF
• 24:06 Why Don and Tom prefer AVGE for a one-fund portfolio
• 25:29 The astonishing rise of a semiconductor ETF
• 26:45 Can VT plus AVGV replicate AVGE?
• 27:06 Why a 20% value tilt may not be enough
• 28:33 Factor investing, expenses, and expected returns
• 29:30 Tom returns from Greece and is ready for calls

Questions? Comments? Click!

Having a child later in life can change far more than your sleep schedule. It can completely rewrite your retirement plan.

Don and Tom explore the financial realities of becoming a parent in your late 40s or 50s, from college savings and life insurance to delayed retirement and the temptation to sacrifice your own financial future for your children. Tom brings some very personal experience to the conversation—and a few stories about being mistaken for his daughter’s grandfather.

Then, a listener asks about a simple three-fund retirement portfolio, international diversification, small-cap value, Roth asset location, and when an aggressive investor should finally consider adding bonds.

Plus, why the best retirement portfolio may be the one that keeps you from doing something stupid during the next bear market.

• 00:12 Old guys, act your age—and other financial lessons
• 01:14 Disagree with Don and Tom? Send in your argument
• 01:57 The financial reality of becoming a parent later in life
• 03:17 Tom became a father at 50
• 04:11 The dangers of grocery shopping with your daughter
• 05:21 Are older parents actually better parents?
• 06:10 How a late child can completely change retirement plans
• 07:28 Why retirement should come before college savings
• 08:48 A $36,000-a-year whole life insurance quote
• 09:08 How long does a parent really need term life insurance?
• 10:42 Fertility costs and the financial price of parenthood
• 11:28 Your retirement must remain the financial priority
• 12:50 Having a child at 50 may mean working until 68
• 13:42 What are you actually going to do in retirement?
• 15:19 Tom reflects on raising his youngest daughter
• 16:02 Don and Tom need more listener questions
• 17:17 Listener portfolio review: FZROX, FZILX, and AVUV
• 18:49 Is 50% U.S., 30% international, and 20% small value reasonable?
• 20:01 Should high-growth assets go in a Roth IRA?
• 20:43 When should an aggressive investor start adding bonds?
• 21:25 Bonds may keep you from doing something stupid
• 22:53 Remembering investor panic after 9/11
• 23:21 How to get a free Talking Real Money portfolio analysis
• 25:16 Why Talking Real Money is different

Questions? Comments? Click!

Money Monday has arrived, and Don kicks off a new weekly series based on his book Financial Fysics. The first “law” may surprise you: according to Don, every dollar ever earned comes from just three sources—luck, theft, or work. He and Tom debate where investing belongs, why entrepreneurship remains one of the best paths to wealth, and how much luck really contributes to financial success.

Then they answer a listener’s retirement planning question about whether to finance a Florida townhouse or withdraw money from a Roth IRA. Along the way they discuss Roth conversion strategy, Florida HOA reserve funds, special assessments, and why building a retirement plan should always come before deciding where the money comes from.

00:00 Welcome to Money Monday
00:12 A new weekly Financial Fysics series begins
01:35 Why anonymous two-star book reviews are so frustrating
02:40 Free Financial Fysics book giveaway
03:50 Rule #1: There are only three ways to make money
04:45 Luck—including investing, lotteries, and inheritance
06:35 Theft, fraud, and unethical financial products
07:55 Why successful investing combines work and luck
10:30 How most great fortunes are actually built
12:10 Entrepreneurship, risk, and creating wealth
13:35 Understanding just how large a trillion dollars really is
15:50 The biggest takeaway from Rule #1
17:15 Preview of next week’s rule: Supply and Demand
18:15 Why listener questions slow down during the summer
19:15 Listener Question: Should a retiree finance a Florida townhouse or withdraw money from a Roth IRA?
21:10 Florida HOA reserves and avoiding expensive surprises
24:30 Why retirement planning comes before choosing an account
26:00 Why the Roth IRA is probably the last account to tap

Questions? Comments? Click!

Tom’s on vacation, but the listener questions are not. In this packed Q&A episode, Don tackles one of the most common retirement dilemmas: if your Social Security and annuity income already cover your expenses, do you still need a traditional emergency fund?

From there, the questions keep coming. Don weighs in on what to do with “lazy money” earning only 3%, whether a MYGA is really a better deal than a CD ladder, how to structure a taxable brokerage account for long-term growth, and where to keep nearly $300,000 set aside for a home purchase in the next two to three years.

He also takes on a thoughtful question about managing a taxable portfolio for elderly in-laws who need additional income for memory care, and wraps up with a step-by-step explanation of how inherited IRA money can potentially be used to fund backdoor Roth contributions.

Along the way, you’ll hear why “guaranteed” doesn’t always mean what insurance companies want you to think it means, why simplicity often beats ETF overengineering, and why liquidity still matters—even in retirement.

0:05 – Intro and why Tom is getting buried in listener questions while on vacation
1:14 – Don thanks listeners and mentions Apple featuring Litreading
1:58 – How to send recorded questions at TalkingRealMoney.com
2:16 – Question 1: Do retired investors still need a six-month emergency fund if Social Security and annuities cover expenses?
3:14 – Why Don still favors stable, liquid emergency money even in retirement
4:30 – Question 2: What should retirees do with “lazy money” that’s earning only about 3%?
5:28 – Don’s preference for CD ladders over MYGAs and why “guaranteed” doesn’t mean risk-free
7:33 – Question 3: How should a high-income investor build a long-term taxable portfolio at Vanguard?
10:03 – Don’s case for simplifying with AVGE or DFAW instead of mixing multiple ETFs
11:24 – Question 4: Is a five-year MYGA better than a five-year CD ladder?
12:01 – Why Don still leans toward CDs despite the higher MYGA yield and tax deferral pitch
14:16 – Question 5: Best place to keep $291,000 earmarked for a home purchase in two to three years
14:46 – Money market vs. high-yield savings vs. CDs vs. BND for short-term house money
17:04 – Question 6: How to structure a $300,000 taxable portfolio for elderly in-laws who need extra monthly income for memory care
18:37 – Why Don would keep lots of liquidity, use only a little equity, and skip muni bonds in a 22% bracket
20:50 – Question 7: Can inherited IRA proceeds be used to fund a backdoor Roth for both spouses?
22:40 – Don’s step-by-step answer, including opening new IRAs and watching out for the pro-rata rule
25:07 – Don plugs The Line Uncrossed and offers a free one-hour advisor meeting
25:42 – Reminder to send questions and be patient while Tom is on vacation

Questions? Comments? Click!

In what may be our last quiz, ever, Tom turns the tables and puts Don in the hot seat with a Wall Street Journal high-school personal finance quiz—covering the Magnificent Seven, Roth IRAs, TIPS, efficient markets, yield curves, market risk, and dollar-cost averaging. Don does reasonably well, but not without protesting a dubious “debt avalanche” question and getting tangled up in a couple of accounting and risk terms. After the quiz-show nonsense, the guys tackle a listener question from Joseph in Pennsylvania: should your stock/bond allocation be based on a fixed percentage of your portfolio, or should it be driven by how many years of spending you want buffered in safer assets? Tom and Don explain why the answer depends on more than just income needs—it also depends on your emotional tolerance for volatility, your need for growth, and the role fixed income plays in helping you stay invested when markets get ugly.

0:22 Tom becomes quizmaster and introduces the Wall Street Journal high-school personal finance quiz
2:12 Question 1: Which stock is not part of the Magnificent Seven?
3:47 Question 2: Which retirement account does not require withdrawals at a certain age?
5:09 Question 3: TIPS, STRIPS, Series I bonds, and inflation-adjusted principal
6:58 Question 4: Debt payoff strategies and the disputed “debt avalanche” answer
9:13 Question 5: Efficient market hypothesis
10:12 Question 6: What an inverted/downward-sloping yield curve says about future rates
11:25 Question 7: Return on equity math and a heavily leveraged company
12:56 Question 8: What it means when net present value equals zero
14:44 Question 9: Why putting your emergency fund in stocks creates market risk
16:52 Question 10: Unsystematic risk versus broad market risk
18:57 Question 11: Dollar-cost averaging
20:06 Tom and Don wrap up the quiz and revisit the “debt avalanche” controversy
21:11 Listener question from Joseph in State College, Pennsylvania
21:34 Should bond allocation be based on a fixed percentage or on years of spending?
22:07 Risk tolerance vs. risk profile: why income needs are only part of the equation
23:26 Why a 5-year spending buffer in safer assets can make sense in retirement
24:13 The emotional role of bonds and fixed income during market declines

Questions? Comments? Click!

Tom and Don tackle one of retirement’s hardest questions: how much can you safely spend from your portfolio without blowing up the rest of your life? They walk through the familiar 4% rule, flexible withdrawal strategies, why a flat 10% withdrawal is usually fantasyland, and why the “right” spending rate depends heavily on your age, timeline, and tolerance for adjusting in bad markets. They also answer a listener question about a 22-year-old’s investment allocation and close with a timely discussion of the latest Social Security trust fund warning, what it actually means, and the only real ways Congress can fix it.

00:12 — How much can you safely spend in retirement? Tom and Don tee up the big question: 4% rule, 5% flexible rule, or something more personalized.
02:08 — Survey shocker: many people think they need 30 years of income saved before retiring comfortably.
03:03 — Longevity math: how long retirement might actually last, and why that matters for withdrawal rates.
04:40 — Can you really withdraw 10% a year? Tom and Don push back on overly aggressive retirement spending assumptions.
05:59 — Why generic withdrawal rules fall apart in real-life retirement planning.
06:25 — Every retiree needs a personalized withdrawal strategy based on their own timeline and circumstances.
07:17 — Retiring at 60 vs. 70: why earlier retirement makes even “safe” withdrawal rates riskier.
09:04 — Why it’s worth having a professional review your retirement withdrawal plan, even if you’ve used calculators.
09:58 — The case for flexible withdrawals: spending more in strong markets and less in weak ones.
10:20 — Three common retirement planning mistakes: not saving enough, not knowing your needed return, and taking the wrong amount of risk.
12:16 — Listener question: a 22-year-old with $28,500 invested wants to know if his allocation makes sense.
13:28 — Breaking down DFAW, VT, and VTI: overlap, diversification, and whether the portfolio is too complicated.
16:21 — The bigger story: a 22-year-old already has a terrific head start on retirement savings.
17:56 — Social Security update: the trust fund could run short in 2032 if nothing changes.
18:37 — The only real ways to fix Social Security: raise taxes, cut benefits, or some combination of both.
19:52 — Why scary Social Security headlines should not automatically push people to file early.
21:22 — One possible fix: raising or removing the payroll tax cap.
23:27 — The demographic problem under Social Security: too few workers supporting too many retirees.

Questions? Comments? Click!

As parents age, money can get more complicated—bill paying, account access, healthcare decisions, investment management, and eventually the possibility that someone else may need to step in. In this episode, Don and Tom walk through how families can start that conversation before a crisis hits. They cover when to begin talking, what adult children should know about accounts and spending, why durable powers of attorney need to be checked with custodians in advance, and the importance of reviewing wills, beneficiaries, and backup decision-makers. They also talk about the emotional side of these transitions, including independence, trust, and the danger of children projecting their own investing preferences—or financial self-interest—onto aging parents.

Then they answer two listener questions: one about whether it’s time to fire an evasive advisor charging 1% plus expensive funds, and another about alternative career paths in financial planning beyond the traditional CFP route.

0:05 – Intro: the hard conversation families need to have about aging and money
1:00 – When parents—or you—reach the point where financial help may be needed
1:56 – Tom’s family experience and the challenge of stepping in gracefully
3:17 – Why families should talk early about money, spending, and where accounts are held
5:24 – Account access, passwords, and why digital organization matters more than ever
7:38 – Durable power of attorney: why you need one and why custodians should review it in advance
9:01 – Backups for everything: POAs, wills, beneficiaries, and successor decision-makers
10:02 – Why adult children should meet their parents’ financial advisor before a crisis
11:07 – When a trusted advisor can help if parents don’t want children directly involved
11:28 – How to approach the conversation as an adult child without expecting instant control
12:28 – Don’t project your own investing style onto your parents’ retirement portfolio
13:28 – The uncomfortable reality of greed and inheritance influencing family decisions
13:40 – Why this belongs at the top of the planning checklist for older families
14:07 – How to send your own questions to Talking Real Money
14:58 – Listener question: Is it time to fire a wealth manager who won’t answer basic questions?
17:15 – Don and Tom’s verdict on an advisor charging 1% while dodging accountability
18:48 – Listener question: Are there good financial-planning career paths besides becoming a CFP?
20:41 – The regulatory reality of giving investment advice for a fee
22:32 – Relationship roles, planning roles, and the growing specialization inside advisory firms

Questions? Comments? Click!

Don and Tom take on the latest crypto hype cycle, arguing that Bitcoin remains speculation—not a reliable store of wealth—and that putting crypto inside retirement accounts is especially dangerous. They discuss a new self-directed IRA crypto platform, the risks of private equity and alternative assets in retirement plans, and why “get rich quickly” pitches should set off alarm bells.

Then they answer two listener questions. First, Mark from Ohio asks how to prepare a retirement portfolio for a likely market downturn and how withdrawals and rebalancing should work once retirement begins. Later, Doug from Utah asks whether market-linked CDs make sense compared with Treasuries and whether the “no downside” promise is worth the tradeoffs. Don and Tom explain why they dislike market-linked CDs, how bank brokers get paid to sell them, and why simpler fixed-income tools often make more sense.

They wrap up with a warning about growing bank-related scam tactics and a publishing scam Don has been seeing aimed at authors.

0:05 – Intro: one-star Bitcoin review and why crypto losses are hard to ignore
1:16 – Bitcoin’s drop, crypto volatility, and retirement-account crypto pitches
2:42 – Self-directed IRAs, IRA Financial, and the “get rich quick” problem
5:27 – Why crypto, private equity, and alternative assets can be dangerous in retirement plans
6:58 – Why most people bought Bitcoin: speculation, not currency utility
10:29 – Hot money shifts: crypto, gold, semiconductors, and chasing momentum
12:20 – Don’s bottom line on crypto as speculation vs. wealth storage
13:16 – Listener question from Mark: preparing for a market downturn before retirement
15:32 – Is an 80/20-ish portfolio too aggressive with retirement four years away?
17:13 – Bonds vs. cash/CDs: what fixed income should do near retirement
18:56 – Withdrawal strategy during a downturn and how rebalancing fits in
20:46 – Listener question from Doug: market-linked CDs vs. Treasuries
23:47 – Why Don and Tom dislike market-linked CDs
26:42 – The danger of taking investment advice from a bank salesperson
29:18 – Building Treasury and CD ladders through a brokerage instead
31:23 – Banks training tellers to spot scam victims before money is lost
34:04 – Don’s author scam warning: fake book clubs and fake promotional offers

Questions? Comments? Click!