For the first time as a host combination, Ben, Dan, and Cameron sit down to discuss the most controversial topics in personal finance. We begin with identity and how it informs decision-making. Then, we revisit the renting versus buying debate, why this remains a highly controversial topic, the ins and outs of income investing, and understating the fervor of dividend investing. We also unpack FIRE as a branch of self-help; how it informs happiness; and how personality influences one’s approach to the FIRE principle. To end, we closely examine Bill Bengen’s 4% rule, and the Aftershow encourages us to maintain high podcasting standards while revealing what you can look forward to in our latest Rational Reminder t-shirt release. 

Key Points From This Episode:

(0:01:25) Cameron’s positive LinkedIn experience regarding insurance. 

(0:08:10) How identity informs decision-making. 

(0:15:24) Why renting versus buying a home remains a controversial topic. 

(0:27:50) Income investing, covered calls, and the fervor of dividend investing.

(0:46:34) FIRE: Financial independence, retire early.

(0:54:36) Unpacking FIRE as a branch of self-help, and the role of FIRE in happiness. 

(1:07:07) How personality and identity inform one’s approach to FIRE.

(1:10:34) Addressing the 4% rule. 

(1:14:16) The Aftershow: Setting and keeping high standards, and Rational Reminder t-shirts. 

Links From Today’s Episode:

Meet with PWL Capital — https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — https://www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [email protected] 

Rational Reminder Merchandise — https://shop.rationalreminder.ca/ Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://pwlcapital.com/our-team/

Cameron on X — https://x.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ 

Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/ 

Episode 358: Eli Beracha: An Academic Perspective on Renting vs. Owning a Home — https://rationalreminder.ca/podcast/358 

Episode 214: Jay Van Bavel: Shared Identities and Decision Making — https://rationalreminder.ca/podcast/214  

Episode 260: Prof. James Choi: Practical Finance — https://rationalreminder.ca/podcast/260 

Episode 273: Professor Samuel Hartzmark: Asset Pricing, Behavioural Finance, and Sustainability Rankings — https://rationalreminder.ca/podcast/273  

Episode 95: Scott Rieckens (Playing with FIRE): Finding Financial Education, Perspective, and Freedom — https://rationalreminder.ca/podcast/95 

Episode 258: Prof. Meir Statman: Financial Decisions for Normal People — https://rationalreminder.ca/podcast/258  

Bonus Episode - Prof. Meir Statman: A Wealth of Well-Being — https://rationalreminder.ca/podcast/2024/4/18/bonus-episode-prof-meir-statman-a-wealth-of-well-being  

Episode 230: Prof. Robert Frank: Success, Luck, and Luxury — https://rationalreminder.ca/podcast/230  

Episode 135: William Bengen: The 5% Rule for Retirement Spending — https://rationalreminder.ca/podcast/135 

Episode 164: Comprehensive Overview: The 4% Rule — https://rationalreminder.ca/podcast/164  

Episode 357: AMA #6 — https://rationalreminder.ca/podcast/357 

Morgan Housel — https://www.morganhousel.com/  

‘Renting vs. Buying a Home: What People Get Wrong’ — https://www.youtube.com/watch?v=j4H9LL7A-nQ  

MobLand — https://www.imdb.com/title/tt31510819/ 

Ray Donovan — https://www.imdb.com/title/tt2249007/ 

Animal Kingdom — https://www.imdb.com/title/tt5574490/ 

Books From Today’s Episode: 

Rich Dad Poor Dad — https://www.amazon.com/Rich-Dad-Poor-Teach-Middle/dp/1612680194 

Self Help, Inc.: Makeover Culture in American Life — https://www.amazon.com/Self-Help-Inc-Makeover-American/dp/0195337263 

Papers From Today’s Episode: 

'Motivated Numeracy and Enlightened Self-Government' - https://www.cambridge.org/core/journals/behavioural-public-policy/article/abs/motivated-numeracy-and-enlightened-selfgovernment/EC9F2410D5562EF10B7A5E2539063806 

‘Nevertheless, They Persist: Cross-country differences in homeownership behavior’ — https://www.sciencedirect.com/science/article/abs/pii/S1051137721000590 

‘Rent or Buy? Inflation Experiences and Homeownership within and across Countries’ — https://www.researchgate.net/publication/379974645_Rent_or_Buy_Inflation_Experiences_and_Homeownership_within_and_across_Countries  

‘Dividend Policy, Growth, and the Valuation of Shares’ — https://www.researchgate.net/publication/24102112_Dividend_Policy_Growth_and_the_Valuation_Of_Shares 

‘Chapter 3 - Behavioral Household Finance*’ — https://www.sciencedirect.com/science/article/abs/pii/S2352239918300046 

‘Common Risk Factors in the Returns on Stocks and Bonds’ — https://www.sciencedirect.com/science/article/abs/pii/0304405X93900235  

‘The Dividend Disconnect’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2876373 

‘A Devil's Bargain: When Generating Income Undermines Investment Returns’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4580048 

‘The Financialization of Anti-Capitalism? The Case of the “Financial Independence Retire Early” Community’ — https://www.tandfonline.com/doi/full/10.1080/17530350.2021.1891951 

‘High Income Improves Evaluation of Life But Not Emotional Well-Being’ — https://www.pnas.org/doi/10.1073/pnas.1011492107  

‘Income And Emotional Well-Being: A Conflict Resolved’ — https://www.pnas.org/doi/10.1073/pnas.2208661120 

Dr. Eli Beracha has recently been recognized by The Journal of Real Estate Literature as the world’s third best in research productivity, and today, we are honoured to be joined by this top industry expert to bring more clarity to the renting versus buying debate. We use Dr. Beracha’s ‘Lessons from Over 30 Years of Buy Versus Rent Decisions: Is the American Dream Always Wise?’ and ‘Housing Ownership Decision-Making in the Framework of Household Portfolio Choice’ papers as the basis for most of today’s conversation, beginning with why owning a home is deeply rooted in the perception of the American dream. Then, we discover how to measure the true price of home ownership, how the American dream and other psychological factors influence one’s decision-making, how hard assets perform compared to stocks and bonds, and why renting comes out ahead of buying nine times out of ten. We also learn why owning is for the inherently wealthy, the ins and outs of Dr. Beracha’s rent versus buy index, the rate of property appreciation versus stock appreciation, and how renting influences saving habits compared to owning a home. To end, we dive deeper into the risk-adjusted wealth accumulation of home ownership versus renting, and Dr. Beracha compares the efficiency of the real estate market to the stock market while detailing everything to take into account to be fully-equipped to make your decision to rent or buy.

Key Points From This Episode:

(0:00:00) Why Dr. Eli Beracha is one of the world’s best to discuss renting vs buying a home. 

(0:05:32) Understanding why owning a home is deeply entrenched in the American dream.

(0:06:10) The various aspects to consider when measuring the price of home ownership. 

(0:07:57) Weather Dr. Beracha agrees with the adage “renting is throwing money away.”

(0:09:36) What the price of a home should represent, and how psychology influences decisions. 

(0:16:48) Unpacking Dr. Beracha’s 2012 paper subtitled, ‘Is the American Dream Always Wise?’ 

(0:19:51) Hard assets versus stocks and bonds, and why renting pips buying most of the time. 

(0:26:00) Why many still choose to own a home despite long-term financial discrepancies.  

(0:30:53) The ins and outs of Dr. Beracha’s rent versus buy index. 

(0:39:46) Why homeowners are usually wealthier than renters even though renting is “cheaper.”

(0:42:03) Property appreciation, stock appreciation, and the renter’s savings rate.

(0:47:41) How home ownership influences saving habits compared to renting. 

(0:49:46) The risk-adjusted wealth accumulation of home ownership versus renting.

(0:58:40) Dr. Beracha compares the efficiency of the real estate market to the stock market. 

(1:03:22) Everything you need to take into account to make your decision to rent or buy.

Links From Today’s Episode:

Meet with PWL Capital — https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [email protected]Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/ 

Episode 325: Addressing 200+ Comments on Renting vs. Owning a Home — https://rationalreminder.ca/podcast/325  

Episode 196: Sebastien Betermier: Hedging, Sentiment, and the Cross-Section of Equity Premia — https://rationalreminder.ca/podcast/196 

Dr. Eli Beracha — https://www.theberachateam.com/ 

Dr. Eli Beracha on LinkedIn — https://www.linkedin.com/in/eli-beracha-b8082250/ 

Dr. Eli Beracha on Instagram — https://www.instagram.com/dreliberacha/ 

Tibor and Sheila Hollo School of Real Estate | FIU — https://business.fiu.edu/academics/departments/real-estate/  

KBIS Capital — https://kbiscapital.com/ 

Journal of Real Estate Literature — https://www.tandfonline.com/journals/rjel20 

Papers From Today’s Episode: 

‘Lessons from Over 30 Years of Buy Versus Rent Decisions: Is the American Dream Always Wise?’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1814227 

‘Housing Ownership Decision-Making in the Framework of Household Portfolio Choice’ — https://www.tandfonline.com/doi/abs/10.1080/10835547.2017.12091472 

‘Findings from a Cross-Sectional Housing Risk-Factor Model’ — https://www.researchgate.net/publication/236023682_Findings_from_a_Cross-Sectional_Housing_Risk-Factor_Model

Cameron joins Ben for his first AMA as we bring you the sixth edition of our Listener Questions and Investing Lessons mini-series. Diving right in, Ben and Cameron share their stance on the multi-host format of the Rational Reminder podcast before walking us through the new PWL Retirement Planning Tool. Then, we unpack our venture with OneDigital, recent changes at PWL Capital, how we make each episode of this show, and how we allocate our time across podcast and business responsibilities. We also examine our protocol regarding guests, why Cameron and Ben would never gamble with their own money, how the human condition prevents the full comprehension of investing as a principle, and smart money moves to make under current market conditions. To end, we discuss the effects of a capital gains tax increase, common mistakes to avoid in managing personal finances, programs and technologies for financial advisors, and the After Show, which ends with an important discussion on testicular cancer.       

Key Points From This Episode:

(0:00:00) How Ben and Cameron feel about the multi-host format of this podcast.

(0:01:12) The new PWL Retirement Planning Tool, developed by Braden Warwick. 

(0:03:13) Joining OneDigital and other PWL changes from the past four months. 

(0:09:05) Behind the scenes: Making a Rational Reminder podcast episode.

(0:12:38) Allocating time for research, preparation, creating content, and business.

(0:17:27) How guests inform our approach to research and preparation. 

(0:19:29) The reasons why we’re not risk-averse but have no appetite for gambling.

(0:24:26) Why investing has been largely solved, except for the human aspect. 

(0:30:13) The most “rational” investing practices under current market conditions. 

(0:34:25) How to approach a capital gains tax increase, and why banks do what they do.

(0:38:03) The most costly mistakes when it comes to managing personal finances.

(0:40:12) Why we don't offer advice-only planning for DIY investors.

(0:44:07) Financial app tips and tricks and programs and technologies to be aware of. 

(0:48:23) The After Show: Alternate personalities, noise filtering, and testicular cancer.  

Links From Today’s Episode:

Meet with PWL Capital — https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [email protected]Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://pwlcapital.com/our-team/

Cameron on X — https://x.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Braden Warwick on LinkedIn — https://www.linkedin.com/in/braden-warwick-a40b48a3 

PWL Capital Retirement Planning Tool — https://research-tools.pwlcapital.com/research/retirement 

OneDigital — https://www.onedigital.com/  

Episode 341: PWL's Next Chapter — https://rationalreminder.ca/podcast/341 

Episode 355: Do Index Funds Incur Adverse Selection Costs? — https://rationalreminder.ca/podcast/355  

Episode 200: Prof. Eugene Fama — https://rationalreminder.ca/podcast/200 

Episode 100: Prof. Kenneth French: Expect the Unexpected — https://rationalreminder.ca/podcast/100 

Episode 93: Cliff Asness from AQR: The Impact of Stories, Behaviour and Risk — https://rationalreminder.ca/podcast/93 

Episode 270: What Happened to All the Billionaires? with Victor Haghani and James White — https://rationalreminder.ca/podcast/270  

Episode 11: Robb Engen: Simple vs. Complex — https://rationalreminder.ca/podcast/11 

Episode 203: S*** (Misguided) Financial Advisors Say — https://rationalreminder.ca/podcast/203 

The Money Scope Podcast — https://moneyscope.ca/  

Financial Advisor Success Ep 433: When You 10X Your Advisory Firm to over $20M of Revenue…And Want to 10X Again, with Cameron Passmore — https://www.kitces.com/blog/cameron-passmore-pwl-capital-10x-revenue-growth-advisory-firm/ 

The Podcast Consultant — https://thepodcastconsultant.com/   

The Long View — https://www.morningstar.com/podcasts/the-long-view  

Eli Beracha on LinkedIn — https://www.linkedin.com/in/eli-beracha-b8082250/  

CIBC Mutual Funds — https://www.cibc.com/en/personal-banking/investments/mutual-funds.html 

Microsoft Excel — https://www.microsoft.com/microsoft-365/excel 

Python — https://www.python.org/ 

Monte Carlo — https://www.montecarlodata.com/ 

ChatGPT — https://chatgpt.com/ 

Papers From Today’s Episode: 

‘The Arithmetic of Active Management’ — https://www.jstor.org/stable/4479386 

‘Lifetime Portfolio Selection under Uncertainty: The Continuous-Time Case’ — https://www.jstor.org/stable/1926560  

How do we make the most important decisions in life with intention rather than impulse? In this episode, we are joined by Abby Davisson to unpack her practical framework for better decision-making. Abby is a Yale and Stanford alumnus, a former executive at Gap Inc., and the co-author of Money and Love. She is also the founder of the Money and Love Institute, which is dedicated to helping individuals and professionals navigate life’s most significant decisions. In today’s conversation, Abby unpacks her practical, research-backed “5Cs Framework” for decision-making and demonstrates how it can guide all the decisions couples need to make through life. We explore the idea of financial transparency, progressive pooling of finances, equitable division of housework, deciding when to outsource help, and navigating career pauses or transitions. Abby also shares how she applied the framework in her own life and offers an honest perspective for individuals navigating change. Join us to learn how to approach choices and the “life stuff” that doesn’t always show up in spreadsheets with Abby Davisson. Tune in now!

Key Points From This Episode:

(0:04:16) Myra Strober’s Work and Family course and how it led to writing Money and Love.

(0:07:21) The drivers of poor decisions and the five Cs in Abby’s decision-making framework.

(0:11:15) Discover the four big topics every couple should discuss and how to approach them.

(0:15:09) Learn the fundamentals of how couples should handle and combine money.

(0:17:49) Why division of housework is vital, how to approach it, and the role of gender norms. 

(0:21:49) Outsourcing tasks and the impacts of not taking the division of housework seriously.

(0:24:27) How to decide where to live as a couple, and whether to rent or buy a house.

(0:29:08) A real-life example of how to apply to 5C Framework for decision-making. 

(0:33:34) Navigating career ambitions, division of childcare, and stay-at-home parenting.

(0:37:16) Hear how the 5C Framework helps deal with separation and family dynamics.

(0:40:31) Ways the concept of retirement has changed and why families should discuss it.

(0:44:12) Find out how involved adult children should be in their parents' retirement planning.

(0:47:02) Advice for finding the right life partner and how to stress-test a relationship.

(0:52:05) What to consider before getting married and having children, and why.

(0:55:37) Abby’s biggest lessons from writing the book and her definition of success.

Links From Today’s Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [email protected]Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://pwlcapital.com/our-team/

Cameron on X — https://x.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Abby Davisson — https://www.abbydavisson.com/

Abby Davisson — https://linkedin.com/in/abbydavisson/

Money and Love Institute — https://moneyloveinstitute.com/

Practically Deliberate Newsletter — https://abbydavisson.substack.com/

Gap Inc. — https://www.gapinc.com

Myra Strober on LinkedIn — https://linkedin.com/in/myra-strober-a8b2846a/

Eve Rodsky — https://www.everodsky.com/

Carefull — https://getcarefull.com/

Baba Shiv — https://linkedin.com/in/baba-shiv-a859882/

Books From Today’s Episode:

Money and Love — https://www.moneylovebook.com/

Marco Sammon joins Ben and Dan to unpack his latest paper, ‘Index Rebalancing and Stock Market Composition’, beginning with how Marco’s work (co-written by John Shim) compares to the Nobel Prize-winner Bill Sharpe’s paper, ‘Arithmetic of Active Management.’ We investigate the missing links in Sharpe’s logic before defining “the market” and ascertaining the main objectives of index funds. Then, we dive deeper into the mechanics of Marco’s paper, index and market tracking errors, why delayed rebalancing is more beneficial than instant rebalancing, and the role of technology in the modern tracking error obsession. We also assess the passive-active spectrum of index funds in portfolio management and learn how investors should choose their optimal excess return. To end, Marco shares practical applications for improving performance benchmarked against traditional indexes, and The Aftershow is all about bridging the gap between PWL Capital and you, our listeners.

Key Points From This Episode:

(0:00:00) Key takeaways from Marco Sammon’s latest paper and how it compares to Bill Sharpe’s ‘Arithmetic of Active Management.’

(0:08:10) Marco describes what’s missing from the ‘Arithmetic of Active Management’ logic.

(0:09:11) Defining ‘the market’, the main objective of an index fund, and how index funds track the market.

(0:15:57) The mechanics of Marco’s paper, ‘Index Rebalancing and Stock Market Composition.’

(0:18:38) Factor exposure, index and market tracking errors, and how often index funds trade.

(0:26:28) Rebalancing less frequently; why delayed does better than instant rebalancing.

(0:31:59) The tech run-up and lazy rebalancing, and the modern tracking error obsession. 

(0:36:51) Assessing the passive-active spectrum of index funds in portfolio management.

(0:41:02) Exploring how investors should decide on their optimal excess return. 

(0:45:14) How the rising index fund ownership of stocks impacts the implicit cost of indexing

(0:46:58) Practical ways to improve performance benchmarked against traditional indexes.

(0:52:30) The Aftershow: Canadian finances, more airtime for Cameron, and PWL – OneDigital. 

Links From Today’s Episode:

Meet with PWL Capital — https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [email protected]Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/

Episode 322: Prof. Marco Sammon: How are Passive Investors Affecting the Stock Market? — https://rationalreminder.ca/podcast/322

Episode 200: Prof. Eugene Fama — https://rationalreminder.ca/podcast/200 

Episode 268: Itzhak Ben-David: ETFs, Investor Behavior, and Hedge Fund Fees — https://rationalreminder.ca/podcast/268 

Episode 112: Michael Kitces: Retirement Research and the Business of Financial Advice — https://rationalreminder.ca/podcast/112 

Marco Sammon — https://marcosammon.com/ 

Marco Sammon on LinkedIn — https://www.linkedin.com/in/marco-sammon-b3b81456/ 

Marco Sammon on X — https://x.com/mcsammon19 

Marco Sammon | Harvard Business School — https://www.hbs.edu/faculty/Pages/profile.aspx?facId=1326895 

Marco Sammon Email — [email protected] 

John Shim on LinkedIn — https://www.linkedin.com/in/john-shim-2931271b/ 

Vanguard — https://global.vanguard.com/ 

Sheridan Titman on LinkedIn — https://www.linkedin.com/in/sheridan-titman-226b0811/ 

Alex Chinko — https://alexchinco.com/ 

Erik Stafford | Harvard Business School — https://www.hbs.edu/faculty/Pages/profile.aspx?facId=6625 

Itzhak (Zahi) Ben-David on LinkedIn — https://www.linkedin.com/in/ibendavi/ 

Bill Ackman on X — https://x.com/billackman  

‘Millennium Loses $900 Million on Strategy Roiled by Market Chaos’ — https://www.bloomberg.com/news/articles/2025-03-08/millennium-loses-900-million-on-strategy-roiled-by-market-chaos  

Bogleheads — https://www.bogleheads.org/  

The Money Scope Podcast Episode 8: Canadian Investment Accounts — https://moneyscope.ca/2024/03/01/episode-8-canadian-investment-accounts/ 

The Wealthy Barber Podcast — https://thewealthybarber.com/podcast/  

Financial Advisor Success Podcast — https://www.kitces.com/blog/category/21-financial-advisor-success-podcast/ 

Financial Advisor Success Podcast Episode 433: When You 10X Your Advisory Firm To Over $20M Of Revenue…And Want To 10X Again, With Cameron Passmore — https://www.kitces.com/blog/cameron-passmore-pwl-capital-10x-revenue-growth-advisory-firm/  

OneDigital — https://www.onedigital.com/ 

The Longview Podcast: Ben Felix

Papers From Today’s Episode: 

‘The Arithmetic of Active Management’ — https://www.jstor.org/stable/4479386 

‘Index Rebalancing and Stock Market Composition: Do Index Funds Incur Adverse Selection Costs?’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5080459  

‘Luck versus Skill in the Cross-Section of Mutual Fund Returns’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1356021 

‘The Passive-Ownership Share Is Double What You Think It Is’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4188052 

‘Long-Term Returns on the Original S&P 500 Companies’ — https://www.researchgate.net/publication/247884354_Long-Term_Returns_on_the_Original_SP_500_Companies  

‘The Price of Immediacy’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1001762

‘Competition for Attention in the ETF Space’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3765063 

‘Passive in Name Only: Delegated Management and “Index” Investing’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3244991   

Jeremy Stein — “Unanchored” Strategy

Beyond the sales pitches, acronyms, and product talk, what does it mean to be a financial planner? In this episode of the Rational Reminder Podcast, we sit down with long-time industry leader and advocate Jason Pereira. Jason is a Canadian financial planner with over 20 years of experience, dual CFP certification (Canada and US), and a passion for professionalizing the field. In our conversation, Jason shares details about his client-centred investment philosophy, explains why fiduciary duty is foundational, and unpacks the complexities of index fund adoption in Canada. We also delve into the barriers to transparent, evidence-based advice, the true role of a financial planner, the impact of the Fintech revolution, and the pros and cons of mortality pooling. He also challenges common myths surrounding financial planning, shares best practices for vetting financial advisors, and explains why the industry is long overdue for a transformation. Join us for career insights, cautionary tales, and forward-looking ideas that challenge the conventional thinking of what financial planning is, with Jason Pereira!

Key Points From This Episode:

(0:05:13) Jason’s core investment philosophy and perspective on factor-based indexing.

(0:07:15) Environmental, Social, and Governance (ESG) trends and client conversations.

(0:12:36) What fiduciary duty means, why it matters, and why some institutions fight against it. 

(0:18:09) Unpack the complexities of why Canada is behind the US in index fund adoption.

(0:20:52) Learn about the true role and common misconceptions of a financial planner.

(0:24:30) Explore how technology and the rise of generative AI are changing financial planning.

(0:31:55) How advisors can maintain strong personal relationships with clients in a digital world.

(0:37:00) Find out what a high-quality financial plan looks like and what it covers.

(0:39:44) His favourite financial planning-related argument to get into on the internet.

(0:41:20) Uncover how mortality and annuities should influence financial planning.

(0:48:06) Permanent life insurance explained: best use cases and when to avoid.

(0:50:48) Jason shares his nerdiest and most broadly applicable financial planning advice.

(0:53:29) He explains the best practices for estimating a client’s life expectancy. 

(0:56:48) A breakdown of financial planner designations and how to vet a financial planner.

(1:03:59) Hear about his expert witness work and the costs of bad advice.

(1:08:55) Discover why Jason chooses to fight against financial misinformation online.

(1:11:18) The origins and vision of FPAC and Jason’s definition of success. 

Links From Today’s Episode:

Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.

Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemind

Rational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [email protected]

Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://pwlcapital.com/our-team/

Cameron on X — https://x.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/`

Jason Pereira — https://jasonpereira.ca/

Jason Pereira on Facebook — https://facebook.com/jasonpereirafinancialplanner/

Jason Pereira on X — https://x.com/jasonpereira

Jason Pereira on LinkedIn — https://linkedin.com/in/pereirajm

Jason Pereira on YouTube — https://youtube.com/@jasonperieraFP

The Fintech Impact Podcast — https://jasonpereira.ca/the-fintech-impact-podcast-jason-pereira

Conquest Planning — https://conquestplanning.com/en-ca/home

Replit — https://replit.com/

FP Canada — https://fpcanada.ca/

Financial Planning Association of Canada (FPAC) — https://fpassociation.ca/

Episode 188: Prof. Ayelet Fishbach — https://rationalreminder.ca/podcast/188

Episode 236: Harold Geller — https://rationalreminder.ca/podcast/236

Papers From Today’s Episode: 

‘Current Practices for Risk Profiling in Canada and Review of Global Best Practices’ — https://osc.ca/sites/default/files/2021-02/iap_20151112_risk-profiling-report.pdf

‘Financial Risk Tolerance: A Psychometric Review’ — https://dx.doi.org/10.2139/ssrn.3088292

The fifth installment of our Ask Me Anything sessions begins with the inevitable volatility of the stock market as we urge investors to remain calm amidst recent US stock declines. Similarly, we unpack the historical resilience of stock markets and offer advice for dealing with market crashes before discussing why bonds are not the best strategy for boosting returns. We examine the proposed Alberta Pension Plan, the Rational Reminder Podcast guests whose impact still ripples across PWL, how to be a PWL-style advisor, and we revisit the DFA versus Vanguard debate. We also explain why spending rules aren’t for us at PWL, the relationship between the amount to withdraw and the stock/bond allocation, and alternatives for short-term horizon investing, saving, and equities. To end, we hear feedback from Atti Ilmanen as well as reviews from listeners, but before all that, Mark McGrath shares bittersweet news! Stay tuned for an episode full of reflection, strategy, and insight.

Key Points From This Episode:

(0:01:13) The inevitability of market volatility and the historical resilience of stock markets.

(0:13:04) How to approach a volatile market and advice for dealing with a market crash. 

(0:18:06) Why bonds are not a return-enhancing strategy.

(0:21:04) A brief examination of the proposed Alberta Pension Plan.

(0:25:02) Impactful guests who have influenced how we work at PWL Capital.

(0:33:25) How to be a PWL-style advisor.

(0:35:37) Weighing Dimensional funds (DFA) against Vanguard and others. 

(0:41:57) Why spending rules aren’t really our thing. 

(0:44:56) The relationship between the amount to withdraw and the stock/bond allocation.

(0:49:50) Exploring alternatives for short-term horizon investing, saving, and equities.

(0:57:00) An important announcement from Mark!

(1:02:51) The Aftershow: feedback from Antti Ilmanen, listener reviews, and final thoughts. 

Links From Today’s Episode:

Meet with PWL Capital — https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [email protected]Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/

Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP

Episode 248: Prof. William Goetzmann: Learning from Financial Market History — https://rationalreminder.ca/podcast/248  

Episode 100: Prof. Kenneth French: Expect the Unexpected — https://rationalreminder.ca/podcast/100 

Episode 352: Jessica Moorhouse: Everything But Money — https://rationalreminder.ca/podcast/352  

Episode 316: Andrew Chen: "Is everything I was taught about cross-sectional asset pricing wrong?!" — https://rationalreminder.ca/podcast/316 

Episode 224: Prof. Scott Cederburg: Long-Horizon Losses in Stocks, Bonds, and Bills — https://rationalreminder.ca/podcast/224 

Episode 284: Prof. Scott Cederburg: Challenging the Status Quo on Lifecycle Asset Allocation — https://rationalreminder.ca/podcast/284 

Episode 350: Scott Cederburg: A Critical Assessment of Lifecycle Investment Advice — https://rationalreminder.ca/podcast/350 

Episode 89: Wade Pfau: Safety-First: A Sensible Approach to Retirement Income Planning — https://rationalreminder.ca/podcast/89 

Episode 289: Retiring Retirement Income Myths with the Retirement Income Dream Team — https://rationalreminder.ca/podcast/289 

Episode 122: Prof. Moshe Milevsky: Solving the Retirement Equation — https://rationalreminder.ca/podcast/122 

Episode 59: Alexandra Macqueen: Financial Economics and Annuities: Rational Planning for Retirement — https://rationalreminder.ca/podcast/59 

Episode 283: When Volatility is Risk, and Introducing The Money Scope Podcast — https://rationalreminder.ca/podcast/283 

Episode 351: DFA vs. Vanguard — https://rationalreminder.ca/podcast/351 

Episode 254: David Blanchett: Regret Optimized Portfolios, and Optimal Retirement Income — https://rationalreminder.ca/podcast/254 

Episode 152: Evaluating Systematic Equity Strategies — https://rationalreminder.ca/podcast/152 

Episode 347: The Case for Index Funds — https://rationalreminder.ca/podcast/347 

Episode 281: Lifecycle Asset Allocation, and Retiring Successfully with Justin King — https://rationalreminder.ca/podcast/281 

Episode 315: An Update from Avantis with Eduardo Repetto — https://rationalreminder.ca/podcast/315 

Alberta Pension Plan — https://www.albertapensionplan.ca/ 

Financial Planning Association of Canada — https://www.fpassociation.ca/ 

Hook — https://www.imdb.com/title/tt0102057/ 

Antti Ilmanen | AQR — https://www.aqr.com/About-Us/OurFirm/Antti-Ilmanen 

Books From Today’s Episode: 

The Great Depression: A Diary — https://www.amazon.com/dp/1586489011 

Narrative Economics: How Stories Go Viral and Drive — https://www.amazon.com/dp/0691182299 

Papers From Today’s Episode: 

‘Negative Bubbles: What Happens after a Crash’ — https://ssrn.com/abstract=3038658 

‘Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice’ — https://ssrn.com/abstract=4590406  

‘Financially Sound Households Use Financial Planners, Not Transactional Advisers’ — https://www.financialplanningassociation.org/sites/default/files/2023-01/APR19%20Blanchett.pdf 

‘Finding and Funding a Good Life’ — https://pwlcapital.com/finding-and-funding-a-good-life/ 

What if the key to financial success isn’t just a better budget, but a better understanding of your relationship with money? In this episode of the Rational Reminder Podcast, Ben and Dan sit down with Jessica Moorhouse to delve into the ins and outs of personal finance. Jessica is a money expert, Accredited Financial Counsellor Canada®, speaker, and bestselling author of Everything but Money. She is also the host of the More Money Podcast, one of Canada’s leading personal finance shows. During today’s conversation, Jessica unpacks the difference between a financial planner and a counsellor and why empathy is the missing piece in personal finance. Find out how different emotions and early memories of money can influence our perspective on personal finance, hear why understanding your relationship with money is so important, and learn about common financial behaviours to avoid. Jessica also delves into the value of understanding past traumas, the power of intergenerational money experiences, and whether mental health or a financial foundation is more important. Tune in now!

Key Points From This Episode:

(0:02:50) Uncover the difference between a financial counsellor and a financial planner.

(0:05:55) Her approach to working with clients and meeting their non-financial needs.

(0:09:15) Find out what is missing in personal finance and why it is essential.

(0:11:39) How shame impacts financial decision-making and common sources of shame.

(0:14:50) Ways relative financial well-being and privilege shape our perspective of money.

(0:19:46) Hear how to overcome financial shame and how it differs from feelings of guilt.

(0:22:35) Rational versus irrational guilt and how fear affects financial decisions.

(0:25:46) Learn about jealousy and envy as well as their impact on personal finance.

(0:27:31) Early money memories and pragmatic money exercises to help frame your mindset.

(0:36:54) Explore the power of understanding your money story for better financial decisions.

(0:39:04) Unpack the common money habits to break and examples of toxic behaviours.

(0:43:34) The interconnection between trauma and money and why it is important.

(0:48:01) Jessica shares how learning about trauma informed her counselling approach.

(0:53:05) Navigating mental health challenges and intergenerational money experiences.

(0:58:11) Discover why spending money will not lead to long-term happiness.

(1:02:33) Tips to begin rewriting your money story and Jessica's definition of success.

Links From Today’s Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [email protected]Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/

Canadian Couch Potato — https://canadiancouchpotato.com/

Jessica Moorhouse — https://jessicamoorhouse.com/

Jessica Moorhouse on LinkedIn — https://www.linkedin.com/in/jessicaimoorhouse/

Jessica Moorhouse on YouTube — https://www.youtube.com/c/jessicamoorhouse1

Jessica Moorhouse on TikTok — https://www.tiktok.com/@jessicaimoorhouse

Jessica Moorhouse on Facebook — https://www.facebook.com/jessicaimoorhouse

Jessica Moorhouse on Instagram — https://www.instagram.com/jessicaimoorhouse/

More Money Podcast — https://podcasts.apple.com/za/podcast/more-money-podcast/id996219697

Everything but Money — https://www.amazon.com/Everything-but-Money-Barriers-Financial/dp/1443472174

Dimensional Fund Advisors (DFA) and Vanguard have intersecting histories rooted in the development of the first-ever index fund. Vanguard's market-cap weighted index funds have been nothing short of revolutionary and they became synonymous with sensible investing for many good reasons, but Dimensional took implementing the ideas from academic finance a few steps further, leading to their own deserved acclaim. In today’s episode, Ben and Dan analyze over 30 years of history between DFA and Vanguard, from their founding and relationship to their rise as global leaders in asset management. We discover how their approaches to foundational finance theory differ, whether diversification is mostly semantics, and how DFA and Vanguard compare to one another over 25 years of matched US-domiciled mutual funds. We also discuss which approach is easier to implement, essential insights for fund advisors, DFA’s downsides despite its long-term outperformance of the Vanguard 500, and an uplifting cancer update from Ben in today’s After Show. For practical investment takeaways, tune in today!

Key Points From This Episode:

(0:01:14) Unpacking DFA and Vanguard’s history and relationship.

(0:03:10) Mac McQuown and the birth of index funds at Wells Fargo in 1964. 

(0:07:48) How DFA and Vanguard became global leaders in asset management.

(0:10:43) Understanding DFA and Vanguard’s approach to foundational finance theory.

(0:19:34) The semantics of diversification. 

(0:22:22) Comparing 25 years of matched Dimensional and Vanguard US mutual funds.

(0:33:36) Which fund advisor’s approach is easier for others to implement and why.  

(0:39:30) How DFA has outperformed Vanguard in the long run (with downsides to consider). 

(0:43:09) Recapping today’s conversation: what every fund advisor needs to know.

(0:46:41) The After Show: Ben’s cancer update, Dan as co-host, and listener reviews.

Links From Today’s Episode:

Meet with PWL Capital — https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582 Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [email protected]Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/ 

Canadian Couch Potato — https://canadiancouchpotato.com/ 

Dimensional — https://www.dimensional.com/ 

Vanguard — https://investor.vanguard.com/  

‘Remembering John “Mac” McQuown, Whose Curiosity Drove a Life of Innovation’ — https://www.dimensional.com/dk-en/insights/remembering-john-mac-mcquown-whose-curiosity-drove-a-life-of-innovation  

‘Episode 182: John “Mac” McQuown: The Data Will Sort That Out’ — https://rationalreminder.ca/podcast/182 

Wells Fargo — https://www.wellsfargo.com/ 

‘Episode 131: David Booth: The First Index Fund, Competing Fiercely, and Keeping it Simple’ — https://rationalreminder.ca/podcast/131 

William F. Sharpe | Stanford University — http://web.stanford.edu/~wfsharpe/bio/bio.htm 

‘Episode 316 - Andrew Chen: "Is everything I was taught about cross-sectional asset pricing wrong?!"’ — https://rationalreminder.ca/podcast/316  

Marco Salmon on LinkedIn — https://www.linkedin.com/in/marco-a-salmon-a63512284  

Books From Today’s Episode: 

The Incredible Shrinking Alpha — https://www.amazon.com/dp/0857198246 

Papers From Today’s Episode: 

‘The relationship between return and market value of common stocks’ — https://doi.org/10.1016/0304-405X(81)90018-0  

‘Market Efficiency’ — https://www.jstor.org/stable/246460 

‘The Cross-Section of Expected Stock Returns’ — https://doi.org/10.2307/2329112 

‘A Five-Factor Asset Pricing Model’ — https://dx.doi.org/10.2139/ssrn.2287202 

‘The Performance of Mutual Funds in the Period 1945-1964’ — https://dx.doi.org/10.2139/ssrn.244153  

‘The Death of Diversification Has Been Greatly Exaggerated’ — https://ssrn.com/abstract=2998754 

Our conversations with Professor Scott Cederburg from Eller College of Management have led to the most heated debates among our listeners! Today, Prof. Cederburg returns to discuss the changes he’s made to his paper that was the foundation of previous conversations - ‘Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice’. We begin with the data setup and headline findings of the paper before Prof. Cederburg defines “domestic” and “international” as they appear in his paper, why the block bootstrap approach is vital to his work, how and why the results of his paper differ from the status quo, and the evaluation metrics he uses to compare different investment strategies. Then, we explore his optimal base portfolio, the strategy he uses to derive it, how it performs in simulated worst-case scenarios, and how it changes when ditching the bootstrap approach or changing strategies from constant spending to proportional spending. To end, we learn of the importance of including the US in international stock portfolios, how it changes when the US is viewed as special above others, the correlation between labor income and domestic stock returns, and how the reviews of academics and practitioners have changed since the first iteration of the paper until this latest edition.  

Key Points From This Episode:

(0:00:00) What to look forward to in today’s conversation with Prof. Scott Cederburg

(0:04:49) The data setup and headline findings from his paper, ‘Beyond the Status Quo.’

(0:07:01) Defining “domestic” and “international” as they appear in Prof. Cederburg’s paper.

(0:08:34) Why the bootstrap approach is necessary for his work. 

(0:12:17) How and why the results of his paper differ from the status quo. 

(0:15:11) Unpacking the evaluation metrics he uses to compare different investment strategies.

(0:16:05) Exploring his optimal base case portfolio and strategy, and how it performs in worst-case simulations.

(0:23:05) How the optimal allocation changes when households vary their portfolio weights.

(0:27:13) What to consider when ditching the block bootstrap in time-varying optimal portfolios. 

(0:29:46) Constant spending versus proportional spending: How the optimal portfolio changes.

(0:30:49) Examining the sequence of returns risk. 

(0:42:14) The importance of including the US market in international stock portfolios. 

(0:43:40) Why the US is treated the same as any other domestic country in the paper, and how the data changes if it’s viewed as special. 

(0:51:40) The extent of the relationship between labor income and domestic stock returns. 

(0:53:01) How leverage affects optimal portfolio results. 

(1:05:20) Assessing how sensitive the paper’s results are to risk aversion. 

(1:06:35) How academics and practitioners have responded to this paper across all iterations.

Links From Today’s Episode:

Meet with PWL Capital — https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [email protected]Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://pwlcapital.com/our-team/

Cameron on X — https://x.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP 

Professor Scott Cederburg — https://eller.arizona.edu/people/scott-cederburg 

Professor Scott Cederburg on LinkedIn — https://www.linkedin.com/in/scott-cederburg-0917b0121/ 

Professor Scott Cederburg on Google Scholar — https://scholar.google.com/citations?user=CZKf3WEAAAAJ 

Eller College of Management — https://eller.arizona.edu/  

Episode 224: Prof. Scott Cederburg: Long-Horizon Losses in Stocks, Bonds, and Bills — https://rationalreminder.ca/podcast/224 

Episode 284: Prof. Scott Cederburg: Challenging the Status Quo on Lifecycle Asset Allocation — https://rationalreminder.ca/podcast/284  

Vanguard — https://investor.vanguard.com/  

‘The Portfolio Size Effect and Using a Bond Tent to Navigate the Retirement Danger Zone’ — https://www.kitces.com/blog/managing-portfolio-size-effect-with-bond-tent-in-retirement-red-zone/ 

Papers From Today’s Episode: 

‘Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4590406  

‘Is The United States a Lucky Survivor: A Hierarchical Bayesian Approach’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3689958 

‘Risk-Free Interest Rates’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3242836