The Long View

Our guest today is Dr. Mohamed El-Erian. Dr. El-Erian is Chief Economic Advisor at Allianz, the parent of PIMCO, where he formerly served as chief executive and co-chief investment officer, and President-Elect of Queens’ College, Cambridge University. He first joined PIMCO in 1999 and was a senior member of PIMCO’s portfolio management and investment strategy group. He rejoined the company at the end of 2007 after serving for two years as president and CEO of Harvard Management Company. 

Before coming to PIMCO, Dr. El-Erian was a managing director at Salomon Smith Barney/Citigroup in London and before that spent 15 years at the International Monetary Fund in Washington, D.C., where he served as Deputy Director. Dr. El-Erian has served on numerous boards and committees, including a stint as Chair of President Obama’s Global Development Council from Dec. 2012 to Jan. 2017. 

A much sought-after author, columnist, and speaker, Dr. El-Erian has published two best-selling and critically acclaimed books, When Markets Collide and The Only Game in Town: Central Banks, Instability, and Avoiding the Next Collapse. He also was named to _Foreign Policy _magazine's list of “Top 100 Global Thinkers” four years in a row, among other accolades.

Dr. El-Erian holds a master’s degree and doctorate in economics from Oxford University and received his undergraduate degree from Cambridge University.

Background
• Dr. Mohamed El-Erian bio
• Dr. El-Erian’s commentary
• Dr. El-Erian’s tv and radio interviews
• The Only Game in Town: Central Banks, Instability, and Avoiding the Next Collapse, by Mohamed El-Erian, January 2016. 
• When Markets Collide, by Mohamed El-Erian, June 2008. 
• “The FP Top 100 Global Thinkers," Foreign Policy, Nov. 26, 2012. 
• Dr. El-Erian’s Twitter handle @elerianm  

Dr. El-Erian’s Recent Comments on COVID-19

• “The Coming Coronavirus Recession: And the Uncharted Territory Beyond," Foreign Affairs, Mar. 17, 2020. 

• “The Federal Reserve Takes its Crisis Management Game Up Several Notches,” Yahoo Finance, Mar. 17, 2020, 

• “It Will Get Better But After We Feel Even More Unsettled,” Yahoo Finance, Mar. 13, 2020. 

• “Six Things Investors Should Remember Amid Extreme Stock Market Volatility,” Yahoo Finance; Mar. 8, 2020. 

• “El-Erian: We Shouldn’t Bail Out Every Industry Halted by Coronavirus Crisis,” CNBC, Mar. 19, 2020. 

• “El-Erian: Fed Should Have Been More ‘Laser-Focused’ on Market Failures,” CNBC, Mar. 16, 2020. 

• “El-Erian on Markets: ‘It’s Getting Less Scary Than It Has Been for a While," CNBC, Mar. 13, 2020. 

• “El-Erian: U.S. Stock Market Could End Up Dropping 20%-30% Before Bottom Is Finally Reached," CNBC, Mar. 9, 2020.

Shownotes (Note: We will add the interview transcript soon.)

Introduction
• Introducing Dr. El-Erian and bio (0:21)

High Level Macro
• The market and economic backdrop have changed drastically in what seems like no time. You’ve been prescient in foreseeing some of the impacts. But what has surprised you thus far? (1:48)
• We’ve heard you say that financial “sudden stops” are more addressable than economic “sudden stops”. Can you explain the difference between financial/economic “sudden stops," why the latter is harder to deal with, and how that relates to our current situation? (2:58)

Policy Response
• Public health concerns are trumping economic realities at the moment. For instance, entire states are being told to shelter in place. This is economically devastating. Do you think this is prudent policy without a stimulus package or backstop of some kind? (5:13)
• You’ve argued that interest-rate cuts and broad fiscal stimulus shouldn’t be emphasized during this initial phase of the crisis. That we should instead focus on containment and building immunity to COVID-19. That seems surprising considering the scores of those who have been abruptly laid off or seen business dry up. What are they supposed to do without a massive, immediate stimulus? (7:02)
• Can we talk about the impacts that you foresee for the private and public sectors and what you view as the correct policy response for addressing each? Let’s take them one by one: (9:29)
- The suddenly unemployed
- The small business owner
- The lender
- The airline and hospitality sectors
- The state or municipality

Capital Markets
• Turning to capital markets, we’ve obviously seen stocks enter a steep sell-off. But the bond market has also broken down. Can you describe for some of our listeners--who might not be as familiar with the inner workings or dynamics of the bond market--what has happened there, why, and what will stem it? (11:29)
• The Fed stepped in to backstop money market funds in recent days. Have you seen signs that is succeeding in stabilizing corporate funding markets like the commercial paper market? (15:05)
• What will be point of equilibrium at which fiscal and monetary policy relief overtakes fear to stabilize markets and the economy? (16:57)

Aftermath
• You wrote that one of the lasting consequences of novel coronavirus will be accelerating deglobalization and deregionalization. Global supply-chain management and trade interconnection has been the dominant trend in recent decades. Why would we retreat from that, and how will that be felt in the real economy and daily life? (19:12)
• To this point, while COVID-19 has been deemed a global pandemic, its impacts have been mostly northern hemispheric. What do you think the implications of the virus spreading to the southern hemisphere over the balance of this year will be on trade, markets, etc.? (21:18)

Outlook
• About a week ago you said you expected the stock market to decline 30% from its highs. At that time it was down around 19%, and we’ve seen the market fall another 10 percentage points since then, putting it down almost 30% from the high. Have you revised your view or do you feel the sell-off has largely played itself out? (23:40)
• Most of our listeners are individual investors or advisors who diversify their assets widely across asset classes and styles, often using index funds and ETFs. Do you think this episode warrants a re-think of how they’ve approached asset allocation and investment selection? (27:03)

Closing
• Closing, disclosures, and outro (32:03)

(Disclaimer: This recording is for informational purposes only and should not be considered investment advice. Opinions expressed are as of the date of recording. Such opinions are subject to change. The views and opinions of guests on this program are not necessarily those of Morningstar, Inc. and its affiliates. Morningstar and its affiliates are not affiliated with this guest or his or her business affiliates unless otherwise stated. Morningstar does not guarantee the accuracy, or the completeness of the data presented herein. Jeff Ptak is an employee of Morningstar Research Services LLC. Morningstar Research Services is a subsidiary of Morningstar, Inc. and is registered with and governed by the U.S. Securities and Exchange Commission. Morningstar Research Services shall not be responsible for any trading decisions, damages or other losses resulting from or related to the information, data analysis or opinions or their use. Past performance is not a guarantee of future results. All investments are subject to investment risk, including possible loss of principal. Individuals should seriously consider if an investment is suitable for them by referencing their own financial position, investment objectives and risk profile before making any investment decision.)

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Editor's Note: The following interview with Chuck Bath, comanager of Diamond Hill Large Cap, was recorded on March 4, 2020. As such, it doesn't incorporate recent market volatility, and the manager's views and positions may have changed since the recording.

Our guest on the podcast is Chuck Bath, a portfolio manager who has logged a tremendous record over nearly 40 years. Since 2002, Bath has been manager of Diamond Hill Large Cap, a $6 billion fund that earns a Morningstar Analyst Rating of Gold. He is assistant portfolio manager for Bronze-rated Diamond Hill Long-Short.

Prior to joining Diamond Hill, he steered Nationwide Fund to outstanding returns during 17 years at the helm. An accountant by training, Bath uses a patient value-oriented approach, seeking out companies with above-average returns on capital that are trading below his estimates of intrinsic value.

Background
Chuck Bath bio

Diamond Hill Large Cap DHLAX

Diamond Hill Long-Short DIAMX 

Diamond Hill blog

"Diamond Hill: Accounting for Taste," by Lawrence Strauss, Barron's, Dec. 12, 2015. 
 

Strategy and Portfolio 

"Permanent Change Versus Long-Term Fundamentals," by Chuck Bath, March 10, 2020. 

Diamond Hill Intrinsic Value Estimator

Security Analysis, by Benjamin Graham and David Dodd. 

Warren Buffett on Durable Competitive Advantage, April 21, 2018. 

"Valuing U.S. Equities: A Historical Perspective," by Chuck Bath, Austin Hawley, and Nate Palmer, as presented at the CFA Institute Financial Analysts Seminar in Chicago, Sept. 26, 2014. 

International Business Machines

Microsoft

Walmart

Amazon.com

Abbott Laboratories

Procter & Gamble

Eastman Chemical

Alphabet

"State AGs, Justice Department Discuss Google Antitrust Probe," by Diane Bartz, Reuters, Feb. 4, 2020.

Chevron

Norfolk Southern

Parker Hannifin

Peter Lynch

Jeffrey Vinik

John Neff

Robert Sanborn

Citigroup

Charles Schwab Corp

"The Charles Schwab-TD Ameritrade Merger Shocked Wall Street. Why It Had to Happen," by Lisa Beilfuss and Daren Fonda, Barron's, Dec. 16, 2019. 

Organization/Succession

"Diamond Hill Announces Addition of Austin Hawley as Co-Portfolio Manager on Large-Cap Strategy," Dec. 18, 2017. 

"Channeling His Inner Buffett," by Marla Brill, Financial Advisor, Dec. 2, 2019. 

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Our guest this week is Lawrence Hamtil. Lawrence is a principal at Fortune Financial Advisors, an independent Registered Investment Advisor firm he co-founded in 2008. He provides financial advice and investment management services to the firm’s high-net-worth clients. Lawrence came to our attention on social media, where he can be found on twitter at @lhamtil. A prolific researcher and excellent writer, Lawrence frequently publishes investments research and commentary on Fortune Financial’s blog. His research has covered a lot of ground, but a few topics have gained him a following, including his work on the role of sectors and industries in explaining stocks returns; the low-volatility phenomenon; sin stocks; equal-weighted portfolios; and more. Lawrence is a graduate of Rockhurst University..

Background and Influences

Lawrence Hamtil bio 

Fortune Financial advisor blog 

Lawrence Hamtil’s twitter account @lhamtil 

“Contrarian Investment Ideas” by David Dreman; May 18, 1998

“Common Stocks and Uncommon Profits” by Phil Fisher; Jan. 1, 1960 

Value Investing and Inflation

“Who Killed Value?” by William Bernstein; Efficient Frontier blog

“How Inflation Makes the Value Factor a Sector Bet” by Lawrence Hamtil; Fortune Financial blog; May 14, 2019

Equal-Weighting and Inflation

“The Inflation Advantage of Equal Weight” by Lawrence Hamtil; Fortune Financial blog; Aug. 28, 2018  

Sectors and Industries: Importance to Stock Returns

“Hedge Fund Contagion and Liquidity Shocks” by Nicole Boyson, Christof Stahel, and Rene Stulz; Journal of Finance, Volume 55, No. 5. October 2010.

Financial Advisor Conflicts

“Breaking Down 50 Years of Industry Data” by Lawrence Hamtil; Fortune Financial blog; Jan. 17, 2020 

“Is Risk a Function of Sector or Size?” by Lawrence Hamtil; Fortune Financial blog; Jan. 22, 2019 

“Is Risk a Function of Sector or Size? Part II” by Lawrence Hamtil; Fortune Financial blog; July 24, 2019 

“The Perils of Sector Bias” by Lawrence Hamtil; Fortune Financial blog; Oct. 29, 2018

“The Compelling Case for Mid Cap Stocks” by Lawrence Hamtil; Fortune Financial blog; June 27, 2019 

“Compendium of Posts on Investing in Emerging Markets” by Lawrence Hamtil; Fortune Financial blog; Aug. 15, 2019  

Low-Volatility Factor

“Compendium of Low Volatility Articles” by Lawrence Hamtil; Fortune Financial blog; July 22, 2019 

Andrew Miller’s Twitter account @millerak42  

Sin Stocks

“Casino Stocks and the Missing Sin Premium” by Lawrence Hamtil; Fortune Financial blog; Feb. 18, 2019 

“Virtue Is Its Own Reward: Or, One Man’s Ceiling Is Another Man’s Floor” by Cliff Asness; AQR; May 18, 2017

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Our guest this week is  Nicole Boyson. Boyson is the Patrick F. and Helen C. Walsh Research Professor at Northeastern University's D’Amore-McKim School of Business, where she teaches and conducts research in the areas of investments and corporate finance. Professor Boyson has authored numerous publications and referee journals, with a focus on regulatory arbitrage, hedge fund management, and hedge fund activism. She also recently published a provocative working paper on financial advisor conflicts of interest entitled, "The Worst of Both Worlds? Dual-Registered Investment Advisers." A certified public accountant, Professor Boyson serves on the Editorial Board of the Financial Analysts Journal. She received her bachelor's degree from Kent State University, her MBA from Case Western Reserve University, and her Ph.D. in Finance from Ohio State University. Professor Boyson is active on social media, where she can be found on Twitter at @nikir1.

Background and Influences

Nicole Boyson’s home page

Nicole Boyson’s Twitter profile @nikir1

Josh Brown’s Twitter profile @reformedbroker

Wes Gray’s Twitter profile @alphaarchitect

Max Schatzow’s Twitter profile @advisercounsel

Investment Company Institute (ICI) Fact Books  

Published Research: Hedge Fund Activism

“Corporate Governance and Hedge Fund Activism” by Nicole Boyson and Robert Mooradian; Review of Derivates Research, volume 14, no. 2, 2011  

“Activism Mergers” by Nicole Boyson, Nickolay Gantchev, and Anil Shivdasani; Journal of Financial Economics; Oct. 23, 2015  

Published Research: Female Hedge Fund Managers

“The Performance of Female Hedge Fund Managers” by Rajesh Aggarwal and Nicole Boyson; Review of Financial Economics; Feb. 3, 2016

Published Research: Hedge Funds and Contagion

“Hedge Fund Contagion and Liquidity Shocks” by Nicole Boyson, Christof Stahel, and Rene Stulz; Journal of Finance, volume 55, no. 5; October 2010

Financial Advisor Conflicts

Working Paper: “The Worst of Both Worlds? Dual-Registered Investment Advisers” by Nicole Boyson

“Report of the Committee on Compensation Practices” dated April 10, 1995

SEC Final Rule “Certain Broker-Dealers Deemed Not to Be Investment Advisers”

Rick Ferri’s website

“Ferri: There are No Average Investors,” The Long View podcast, July 3, 2019

SEC Investment Adviser Public Disclosure (IAPD) website

Financial Planning Association v. Securities and Exchange Commission

SEC Final Rule: “Regulation Best Interest: The Broker-Dealer Standard of Conduct”

SEC Share Class Selection Disclosure Initiative

“SEC Share Class Initiative Returning More Than $125 Million to Investors”  

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Our guest on the podcast today been called one of the most powerful women in finance. Sallie Krawcheck started her career as an equity analyst at Sanford C. Bernstein, where her reputation for impartial advice and criticism of conflicts of advice in the financial-services sector prompted Fortune magazine to call her the last honest analyst. She later moved to Citigroup, where she served as CEO of the firm's Smith Barney unit, Citi's chief financial officer, and CEO of Citi's, Wealth Management Business. In the latter role, she was an early advocate of a fiduciary standard for the brokerage industry. She went on to Bank of America where she served as president of the firm's wealth management unit. Sallie is currently the CEO and co-founder of Ellevest, a digital financial advisor for women launched in 2016. She is also owner and chair of Ellevate Network, a global network of women committed to promoting gender equality in the workplace.

In the spirit of full disclosure, Morningstar Inc. invested in Ellevest in 2015 and 2019, and Morningstar Investment Management LLC, a subsidiary of Morningstar Inc. provides consulting services to Ellevest for their core portfolios.

Background

Sallie Krawcheck bio 

Ellevest 

Ellevate Network 

“In Search of the Last Honest Analyst,” by David Rynecki, Fortune, June 10, 2002. 

“BofA’s Krawcheck Backs a Fiduciary Standard,” InvestmentNews, April 20, 2010. 

“When Citi Lost Sallie,” by Geraldine Fabrikant, The New York Times, Nov. 15, 2008. 

“Sallie Krawcheck Wants to Take Women to the Top of Business,” by Abigail Jones, Newsweek, Dec. 23, 2014. 

Gender Pay Gap/Lifetime Earnings

“The Narrowing, But Persistent, Gender Gap in Pay,” by Nikki Graf, Anna Brown, and Eileen Patten, Pew Research Center, March 20, 2019. 

“How a Common Interview Question Hurts Women,” by Claire Cain Miller, The New York Times, May 1, 2018. 

Salary History Bans: A Running List of States and Localities That Have Outlawed Pay History Questions, HRdive.com, 2020.

“Unlocking the Full Potential of Women in the U.S. Economy,” McKinsey & Company, 2011. 

Education and Lifetime Earnings, Social Security Administration. 

Women and Caregiving, Facts and Figures, Family Caregiver Alliance. 

“The Trickle-Down Effect of Caregiving on Women,” by Kathleen Fitfield, AARP.org, Nov. 29, 2018. 

“Older Women Workers and Economic Security,” U.S. Department of Labor Issue Brief. 

“How to Stand Up for Paid Family Leave,” Ellevest.com, May 14, 2018.

“How to Afford Parental Leave and Some Time Off,” by Sallie Krawcheck, Ellevest.com, Oct. 10, 2016.

Diversity in the Workplace/Gender Lens Investing

Gender lens investing definition 

“Gender and Diversity Funds: Intentional Or Not?,” by Madison Sargis, Morningstar.com, April 15, 2019.

"2 Options for Gender-Lens Investing," by Jon Hale, Morningstar.com, March 2, 2017. 

Pax Ellevate Global Women’s Leadership Fund 

“Why Diverse Teams Are Smarter,” by David Rock and Heidi Grant, Harvard Business Review, Nov. 4, 2016. 

“Diverse Teams Feel Less Comfortable—And That’s Why They Perform Better,” by David Rock, Heidi Grant, and Jacqui Gray, Harvard Business Review, Sept. 22, 2016. 

“New Research: Diversity + Inclusion = Better Decision-Making at Work,” by Erik Larson, Sept. 21, 2017. 

Women and Investing

“Why Women Invest 40 Percent Less Than Men (and How We Can Change It),” by Jean Chatzky, Nbcnews.com, Sept. 25, 2018. 

“Boys Will Be Boys: Gender, Overconfidence, and Common Stock Investment,” by Brad Barber and Terrence Odean, The Quarterly Journal of Economics, February 2001.  

“What Does It Mean to Invest Intentionally?” by Sallie Krawcheck, Ellevest.com, Nov. 19, 2019.

“Women Reach Their Peak Salaries 10 Years Sooner Than Men,” by Patricia Nilsson and Hannah Murphy, Financial Times, Sept. 19, 2018. 

Benefits Planner/Life Expectancy, Social Security Adminstration. 

“Do Women Take As Many Risks As Men?,” by Doug Sundheim, Harvard Business Review, Feb. 27, 2013.

"Sallie Krawcheck: The Retirement Crisis Is a Gender Crisis, Too," Morningstar.com, July 11, 2015.

“For Some Widows, Breaking Up with An Advisor Is Easy to Do,” by Ilana Polyak, Oct. 11, 2014. 

“Women Put Financial Security at Risk by Deferring Long-Term Financial Decisions to Spouses, UBS Research Reveals,” UBS.com. 

“What Women Want in  a Financial Advisor,” by Kerry Hannon, Forbes.com, May 13, 2018. 

“Female Fund Manager Performance: What Does Gender Have to Do with It?” by Madison Sargis and Kathryn Wing, Morningstar.com, March 8, 2018. 

“Fund Managers By Gender: The Global Landscape,” Morningstar. 

Fiduciary definition 

“Let’s Demand Better from the Financial Services Industry,” by Sallie Krawcheck, Ellevest.com, Sept. 20, 2019. 

“How Wall Street Keeps #MeToo Claims Out of the Spotlight,” by Rob Copeland, Liz Hoffman, and Rachel Louise Ensign, The Wall Street Journal, Jan. 19. 2018. 

“Wall Street Has Been Unscathed by MeToo. Until Now,” by David Gelles, The New York Times, March 16, 2019. 

“My Best Career Advice ... Isn’t Career Advice,” by Sallie Krawcheck, Ellevest.com, Nov. 12, 2019. 

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Our guest on the podcast is Annamaria Lusardi, an authority on financial literacy and financial education. Lusardi is the Denit Trust Distinguished Scholar and Professor of Economics and Accountancy at the George Washington University School of Business, where she also serves as the academic director of the Global Financial Literacy Excellence Center. Prior to joining George Washington University, she taught at Dartmouth College for 20 years. She has also taught at Princeton University, the University of Chicago Harris School of Public Policy, the University of Chicago Booth School of Business, and Columbia Business School. She received her doctorate from Princeton.

Background

Annamaria Lusardi bio 

Annamaria Lusardi curriculum vitae 

Annamaria Lusardi publications 

Financial Literacy

"The Economic Importance of Financial Literacy: Theory and Evidence," by Annamaria Lusardi and Olivia S. Mitchell, Journal of Economic Literature, 2014. 

"A Financial Literacy Test That Works," by Annamaria Lusardi and Olivia S. Mitchell, Forbes, Dec. 14, 2017. 

The 2019 TIAA Institute-GFLEC Personal Finance Index 

"Financial Literacy and Wellness Among African-Americans," by Paul J. Yakoboski,  Annamaria Lusardi, and Andrea Hasler, Global Financial Literacy Excellence Center. 

"Financial Literacy and Retirement Planning in the United States," by Annamaria Lusardi and Olivia S. Mitchell, Journal of Pension Economics & Finance, October 2011. 

“Financial Literacy Around the World: An Overview," by Annamaria Lusardi and Olivia S. Mitchell, Journal of Pension Economics and Finance, October 2011. 

Implications of Financial Illiteracy

"Optimal Financial Knowledge and Wealth Inequality," by Annamaria Lusardi, Pierre-Carl Michaud, and Olivia S. Mitchell, The National Bureau of Economic Research, January 2013. 

"Financial Literacy and Stock Market Participation," by Maarten van Rooij, Annamaria Lusardi, and Rob Alessie, The National Bureau of Economic Research, October 2007. 

"National Financial Capability Study," Finra Investor Education Foundation, December 2019. 

“Financially Fragile Households: Evidence and Implications,” by Annamaria Lusardi, Daniel J. Schneider, and Peter Tufano, The National Bureau of Economic Research, May 2011. 

"Financial Literacy and Planning: Implications for Retirement Wellbeing," The National Bureau of Economic Research, by Annamaria Lusardi and Olivia S. Mitchell, May 2011.

Financial Education

"Are States Providing Adequate Financial Literacy Education?" by Matt Kasman, Benjamin Heuberger, and Ross A. Hammond, Brookings, Oct. 3, 2018.  

"Five Steps to Planning Success. Experimental Evidence From U.S. Households," by Aileen Heinberg, Angela A. Hung, Arie Kapteyn, Annamaria Lusardi, Anya Savikhin Samek, and Joanne Yoong, The National Bureau of Economic Research, June 2014. 

"John Lynch: Rethinking Financial Education," The Long View podcast, Morningstar.com, Dec. 11, 2019. 

"Financial Literacy, Financial Education, and Downstream Financial Behaviors," by Daniel Fernandes, John G. Lynch, and Richard G. Netemeyer, Management Science, Jan. 6, 2014. 

"Ariel Community Academy Students Are Investing on Wall Street by Fourth Grade," by Rodney Brooks, The Undefeated, Oct. 18, 2017.  

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Our guest this week is tax and retirement planning expert, Jeffrey Levine. Jeff is director of advisor education at Kitces.com, home of the popular Nerd's Eye View blog. He's also the CEO and director of financial planning for BluePrint Wealth Alliance. Previously, Jeff served as chief retirement strategist at Ed Slott and Company. He has authored several books including, The Baby Boomer's Guide to Savvy IRA Planning, The Financial Advisor's Guide to Savvy IRA Planning, and The Definitive Guide to Required Minimum Distributions for Baby Boomers. Jeff is a frequent public speaker and media commentator, and he maintains a high profile on social media and on the Nerd's Eye View blog, where he readily shares tax and retirement planning insights.

Background

Jeffrey Levine bio 

Kitces.com 

Blueprint Wealth Alliance 

Jeffrey Levine on Twitter: @CPAPlanner

SECURE Act: Stretch IRA

SECURE Act text 

Stretch IRA definition 

“SECURE Act And Tax Extenders Creates Retirement Planning Opportunities and Challenges,” by Jeffrey Levine, Kitces.com, Dec. 23, 2019. 

“Navigating the Secure Act: What Retirement Savers Need to Know to Optimize Their 401(k)s and IRAs,” by Reshma Kapadia, Barron’s, Dec. 20, 2019. 

“New Retirement Law Throws IRA Heirs a Curveball,” by Mark Miller, Morningstar.com, Jan. 21, 2020. 

“Inheriting a Parent’s IRA or 401(k)? Here’s How the Secure Act Could Create a Disaster,” by Alessandra Malito, MarketWatch, Jan. 9, 2020. 

“Who Should Consider a Roth Conversion Under the SECURE Act?,” by Liz Weston, MarketWatch, Feb. 1, 2020. 

“The Stretch IRA Strategy Is Largely Gone. Here Are 5 Alternatives to Consider,” by Cheryl Winokur Munk, Barron’s, Feb. 8, 2020. 

Charitable trust definition 

SECURE Act: RMD Age Change

Required minimum distribution definition  

IRA Required Minimum Distribution Worksheet 

“How Required Minimum Distribution (RMD) Changes Under The SECURE Act Impact Retirement Accounts,” by Jeffrey Levine, Kitces.com, Jan. 8, 2020. 

“Why the SECURE Act Makes 2020 the Year of Missed RMDs from IRAs,” by Jamie Hopkins, Forbes.com, Dec. 18, 2019. 

“Could Later RMDs Lower Your Tax Bill?” by Christine Benz, Morningstar.com, Feb. 3, 2020. 

“Updated Life Expectancy and Distribution Period Tables Used for Purposes of Determining Minimum Required Distributions,” (proposed rule by the IRS), IRS.gov, Nov. 8, 2019.

SECURE Act: Qualified Charitable Distributions

“How to Reduce Your Taxes and AGI by Giving to Charity,” by Mark P. Cussen, Investopedia.com, Jan. 16, 2020.

“Coordinating QCDs with Post 70 1/2 IRA Contributions Under the SECURE Act,” by Jeffrey Levine, Kitces.com, Jan. 22, 2020. 

Tax Cuts and Jobs Act of 2017 

Adjusted gross income definition 

SECURE Act: Traditional IRA Contributions After 72

“The Kaye Bailey Hutchison Spousal IRA Receives Congressional Agreement,” by Beverly DeVeny, irahelp.com, Aug. 9, 2013. 

SECURE Act: Open MEPs

“Could Multiple-Employer Plans Be a Game Changer for Retirement Security?” by Aron Szapiro, Morningstar.com, Dec. 19, 2019. 

“Secure Act’s MEP Changes Are a Game Changer for 2020,” by Robert Bloink and William H. Byrnes, ThinkAdvisor, Jan. 8, 2020. 

“The New American Retirement Plan,” by John Rekenthaler, Morningstar.com, Jan. 14, 2020. 

“Replacing 401(k) Plans: Further Thoughts,” by John Rekenthaler, Morningstar.com, Jan. 21, 2020. 

SECURE Act: Annuities in Company Retirement Plans

"What the SECURE Act Means for Annuities," by Jamie Hopkins, InvestmentNews, Dec. 17, 2019.

“Security Act’s 401(k) Annuity Options: The Pros and Cons,” by William H. Byrnes and Robert Bloink, ThinkAdvisor, Jan. 14, 2020.  

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Our guest this week is Ben Carlson, the director of institutional asset management at Ritholtz Wealth Management. A prolific and insightful writer, Carlson frequently publishes pieces on investing, personal finance, and other topics on his popular blog, A Wealth of Common Sense. In addition, he co-hosts the Animal Spirits podcast with his colleague Michael Batnick and is active on social media, including Twitter, where he can be found @awealthofcs. A CFA charterholder and graduate of Grand Valley State University, Carlson has authored several books, including A Wealth of Common Sense and Organizational Alpha. In today's episode, we'll be discussing Carlson's most recently published book, Don't Fall for It: A Short History of Financial Scams.

Background

Ben Carlson bio 

A Wealth of Common Sense blog 

Michael Batnick bio 

Animal Spirits podcast 

Ritholtz Wealth Management 

Don't Fall for It: A Short History of Financial Scams, by Ben Carlson

Scams: Victims and Perpetrators

Nigerian prince scam 

Annals of Gullibility: Why We Get Duped and How to Avoid It, by Stephen Greenspan 

Charles Ponzi bio 

Bernie Madoff bio 

John R. Brinkley bio 

The Wisdom of Psychopaths: What Saints, Spies, and Serial Killers Can Teach Us About Success, by Kevin Dutton

"Troubles at Atlanta Hedge Fund Snare Doctors, Football Players" by Ian McDonald and Valerie Bauerlein, The Wall Street Journal, March 9, 2006.

William J. Bernstein: "The wealthy are different than you and I: They have many more ways of having their wealth stripped away." The Four Pillars of Investing: Lessons for Building a Winning Portfolio, Chapter 7, Page 179.

"How Did Spike Lee Convince Michael Jordan to Help Fund His Malcolm X Film?" by Gene Marks, Entrepreneur, Feb. 28, 2019.

"Johnny Depp Spends $200,000 a Month on a Private Jet and $30,000 on Wine--Here's How Else He Blows His Fortune," by Emmie Martin, CNBC.com, Aug. 31, 2017. 

Enough: True Measures of Money, Business, and Life, by John C. Bogle

"South Sea Bubble Short History," Harvard Business School

Railway mania 

"Fraudster Poses as Jason Statham to Steal Victim's Money," by Andy Bell and Dan Box, BBC News, April 29, 2019. 

Ulysses S. Grant bio 

"Lessons From the General," by Michael Batnick, The Irrelevant Investor, Dec. 12, 2017. 

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Our guest this week is Will Danoff. Will runs a number of Fidelity equity strategies, best known of which is Fidelity Contrafund, a mutual fund he has been managing since September 1990. During his nearly three-decade tenure at Contrafund, Will has trounced the market indexes and, even more remarkably, managed to maintain the fund's performance at scale. Indeed, Contrafund was recently home to more than $120 billion in assets and has ranked among the world's largest funds for many years. For his accomplishments, Morningstar named Will its Domestic-Stock Manager of the Year in 2007. Prior to becoming a portfolio manager, Will served as a retail analyst at Fidelity and for a time as assistant portfolio manager at Fidelity Magellan. He's a graduate of Harvard University and earned his MBA at the Wharton School of the University of Pennsylvania. We're thrilled to have him as our guest.

Background

Will Danoff bio

Fidelity Contrafund

Inspirations

“Letters”, Fidelity Investments TV commercial 

Peter Lynch bio

Meetings with Management

Nelson Peltz bio

Idea Generation

Salesforce Dreamforce conference

Joel Tillinghast

Fidelity Low-Priced Stock

Circle of Competence

Michael O’Leary, Michael Cawley bios

Portfolio Construction

Corporate profit margins

Investing in Private Firms

Securities and Exchange Commission’s “Investment Company Liquidity Risk Management Program” 

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Our guest this week is Jon Hale, Morningstar's head of sustainability research. In that role, he directs our research into the environmental, social, and governance investing practices of mutual funds and exchange-traded funds. An incisive analyst and writer, Hale authors the biweekly "Sustainability Matters" column on Morningstar.com. He's regularly quoted by the media on ESG matters and speaks often on sustainable investing at industry conferences and other events. Prior to assuming his current role, Hale held a number of other leadership positions in Morningstar's research and investment management divisions, most recently serving as head of manager research in North America. Hale, who holds the Chartered Financial Analyst designation, earned his undergraduate degree at the University of Oklahoma and his doctorate at Indiana University. We're pleased to have him as our guest.

Background

Jon Hale bio 

"Sustainability Matters" columns

Hale's "The ESG Advisor" blog 

Morningstar's Approach to Assessing ESG

Morningstar Sustainability Rating methodology

Sustainalytics 

Investor Interest and Demand

"Sustainable Fund Flows in 2019 Smash Previous Records," by Jon Hale, Morningstar.com, Jan. 10, 2020.

Morgan Stanley's "Sustainable Signals" survey

Other

Sustainability Accounting Standards Board (SASB)

TIAA-CREF Social Choice Bond TSBRX

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