330 episodi

A weekly reality check on sensible investing and financial decision-making, from two Canadians. Hosted by Benjamin Felix and Cameron Passmore, Portfolio Managers at PWL Capital.

The Rational Reminder Podcast Benjamin Felix & Cameron Passmore

    • Economia
    • 5,0 • 5 valutazioni

A weekly reality check on sensible investing and financial decision-making, from two Canadians. Hosted by Benjamin Felix and Cameron Passmore, Portfolio Managers at PWL Capital.

    Episode 308 - Dan Bortolotti: The Canadian Couch Potato

    Episode 308 - Dan Bortolotti: The Canadian Couch Potato

    When it comes to DIY investing, there’s always a temptation to make things more complicated than they need to be. But, in reality, embracing simplicity is one of the best ways to ensure good investment outcomes. Today’s episode features an exceptional conversation with our long-time friend and colleague, Dan Bortolotti, who has worked alongside us as an Portfolio Manager at PWL Capital for over ten years. Some of our Canadian listeners might recognize Dan as the man behind the Canadian Couch Potato blog (one of the most popular resources for Canadian investors) and the voice behind the Canadian Couch Potato podcast. Dan is a consummate communicator, both on paper and in person; beyond his extensive blogging, he has also written a number of books, both fiction and non-fiction, the most recent of which includes Reboot Your Portfolio: 9 Steps to Successful Investing with ETFs. Dan has played a pivotal role in making PWL Capital what it is today, and in this episode, we learn about his surprising journey to becoming an advisor, before hearing his wide-ranging insights on DIY investing. Dan breaks down key components for investors, from how to approach your asset allocation and picking index funds to navigating fees, taxes, and performance. We also discuss how the investing landscape has changed since Dan started writing and essential lessons he has learned over the years. To hear all about investing from the Canadian Couch Potato himself, be sure to tune in for this expansive conversation!
     
    Key Points From This Episode:
     
    (0:03:52) The origin story of the Canadian Couch Potato blog, by Dan Bortolotti.
    (0:08:17) How the availability of index funds in Canada has changed since Dan started writing about them in 2010, and his role in the index fund revolution.
    (0:10:01) Why Canadians have been slower to adopt index funds than Americans.
    (0:12:09) How the model portfolios on his site have changed over time.
    (0:14:20) Why simplicity is so important to a good investment outcome.
    (0:16:38) The biggest obstacle Dan has observed when it comes to successful investing.
    (0:19:40) Advice on how to approach decisions around stocks, bonds, and asset allocation.
    (0:24:34) How to select the ideal ETF or index fund to express your asset allocation.
    (0:27:22) Some of the ways that Dan’s views have changed since starting the Couch Potato portfolio, and the evolution of his blog.
    (0:31:46) Why you should be clear on your financial goals before investing and the importance of saving rate relative to fees and performance.
    (0:37:32) Understanding the value of financial advice if we consider investing to be effectively solved by low-cost ETF mutual funds.
    (0:40:23) Why it’s so important to close the gap between providing a financial plan and implementing it.
    (0:43:25) What surprised Dan about his clients during his transition from blogger to advisor, and what he has learned about earning his clients’s trust.
    (0:48:22) Dan’s thoughts on how people should make the decision between DIY investing or hiring an advisor, and what people should look for in a financial advisor.
    (0:55:46) The story of how Dan connected with PWL Capital and the key ways he has helped shape the company.
     
    Links From Today’s Episode:


    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://twitter.com/RationalRemind
    Rational Reminder on YouTube — https://www.youtube.com/channel/
    Rational Reminder Email — info@rationalreminder.ca
    Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 
    Benjamin on X — https://twitter.com/benjaminwfelix
    Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/
    Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/
    Camero

    • 1h 4 min
    How Much Life Insurance Do You Need?

    How Much Life Insurance Do You Need?

    Are you confident about the amount of life insurance coverage you have? Are you maximizing your tax savings with the principal residence exemption? In this episode, we delve into life insurance and optimizing capital gains to answer these essential questions. In our conversation, we unpack the nuanced topic of life insurance, what people get wrong about it, and how to effectively calculate your life insurance policy needs. Using his own experience as the lens for the conversation, Mark shares how he calculated his life insurance and incorporated costs such as funeral cover, emergency funds, short-term expenses, and income replacement. Learn about using the safe withdrawal rate shortcut, free resources for calculating life insurance costs, and the best financial tools for getting the most out of your policy. He also delves into capital gains and how to use a lesser-known exemption to reduce the amount owed significantly. Mark walks listeners through how the principal residence exemption works and how it impacted the sale of his rental properties. Then, jumping to a brand new segment on the Rational Reminder Podcast, Ben introduces his financial decision-making iteration of the game of ‘Would you rather’. Finally, we share listener reviews and feedback on previous episodes and debate whether to lease or buy a car in our after-show segment. Tune in now!
     
    Key Points From This Episode:
     
    (0:03:13) Mark explains how he and his wife calculated their life insurance needs.
    (0:06:55) Learn how to plan for income replacement and why it is so complicated.
    (0:12:10) Ben’s perspective on Mark’s approach to calculating his life insurance coverage.
    (0:13:54) Find out why there are differences between Ben and Mark’s calculations.
    (0:18:17) How Mark factored in retirement costs into his life insurance calculations.
    (0:22:30) Free resources and tips to accurately calculate your life insurance needs.
    (0:27:04) Why Mark considers whole life insurance as a separate asset class.
    (0:31:25) The principal residence exemption and how Mark applied it to his situation.
    (0:39:19) How we would choose to invest $1 billion in today’s market.
    (0:42:26) Would You Rather segment: only life insurance versus only disability insurance.
    (0:45:02) The exciting development of a tool for realizing capital gains in a corporation.
    (0:51:06) Trends in the awareness of corporate notional accounts and tax planning intricacies.
    (0:54:12) Listener reviews, episode feedback, and leasing a car instead of buying.
     
    Links From Today’s Episode:


    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 YouTube — https://www.youtube.com/channel/
    Rational Reminder Email — info@rationalreminder.ca
    Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 
    Benjamin on X — https://x.com/benjaminwfelix
    Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/
    Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/
    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
    ‘How Much Life Insurance Do You Need?’ — https://www.linkedin.com/pulse/how-much-life-insurance-do-you-need-mark-mcgrath-cfp-cim-clu--tjwwe/
    InsureRight — https://www.insureright.ca/
    Episode 65: Dr. Wendall Mascarenhas — https://rationalreminder.ca/podcast/65
    Dimensional Fund Advisors — https://www.dimensional.com/
    Money Scope Podcast — https://moneyscope.ca/
    Braden Financial Services — https://www.bradenfinancialservices.com/
    Hendry Warren on

    • 1h 7 min
    Wei Dai: Fighting for Every Basis Point

    Wei Dai: Fighting for Every Basis Point

    Designing a robust portfolio requires considerable expertise, data, and experience. And while there are plenty of published articles that can guide how you build your portfolio, they are not investment solutions by themselves. Wei Dai is the Head of Investment Research and Vice President at Dimensional Fund Advisors, and she joins us today for a comprehensive and informative conversation on portfolio design for higher returns. Her background includes a Doctor of Philosophy degree in Statistics, Operations research, and Financial Engineering from Princeton. She has also earned a bachelor's degree in mathematics and applied mathematics from Zhejiang University. Her work has been published in multiple journals, including The Financial Analysts Journal. She has also collaborated on articles with esteemed figures such as Professor Robert C. Merton and Robert Novy-Marx. In our conversation with Wei, we explore the contents of these articles, key findings from research conducted by Dimensional Fund Advisors, and how they are implementing this knowledge in their portfolios. We discuss the fundamental aspects of portfolio design, like expected return, risk, and costs, with Wei providing a detailed breakdown of each subject. There’s a lot to be learned from today’s conversation, and while things get pretty technical, you are in very capable hands! Tune in for a fascinating dive into the latest research on portfolio design and much more.
     
    Key Points From This Episode:
     
    (0:03:37) The main risk premiums that Dimensional Fund Advisors target in their portfolios.
    (0:05:42) How long-term drivers of returns vary across different regions: an overview of the tests and outcomes they’ve seen at Dimensional Fund Advisors.
    (0:07:15) Unpacking whether the value premium differs from the profitability premium across regions; why it makes sense to be globally diversified.
    (0:08:57) Typical approaches to a multi-premium strategy in a portfolio: a rundown of the three approaches they take at Dimensional and the trade-offs between each.
    (0:13:44) How they evaluate portfolios at Dimenstional: the benefits of taking a holistic, integrated approach, and instances where that doesn’t make sense.
    (0:17:24) Weighting schemes: Dimensional’s approach to assigning individual security weights to achieve the desired level of exposure and how investments factor into weights.
    (0:26:46) Advice on how investors should decide whether to currency hedge their foreign asset exposures, and insights on how to approach currency hedging.
    (0:30:42) Premium timing: Why timing exposure to premiums is so tempting; parameters that must be defined to implement timing strategies; and which strategies worked in their research.
    (0:39:21) Valuation ratios: why it theoretically makes sense that they would be related to differences in expected returns and why they aren’t useful in timing premiums.
    (0:42:11) An overview of the main implications for pursuing premiums that arise from Dimensional’s research.
    (0:44:10) Diversification and how to improve your odds of capturing return premiums.
    (0:46:38) The tradeoff between concentration and expected returns, and defining the optimal balance.
    (0:49:06) What investors should look for when choosing a systematic investment manager, why not all systematic strategies are created equal, and Dimemsional’s approach.
    (0:52:52) The downsides of performance fees, specifically for systematic managers and what it was like writing a paper with Robert Merton.
    (0:57:41) How short-term reversals differ from momentum, ways that reversals are related to liquidity, and how reversals vary across different stocks.
    (01:03:12) The ways that Dimensional is implementing this knowledge in their portfolios; how their ideas go from research to publication to implementation.
    (01:08:18) What sets Dimensional apart, and the value that they add, despite their research being available online.
     
    Links From Today’s Episode:


    Rationa

    • 1h 12 min
    Is Private Credit Special?

    Is Private Credit Special?

    Private credit is one of the fastest-growing asset classes, and today we take a closer look at why that is, and if it’s really worth the hype. When you invest in private credit, you are essentially lending money to borrowers who might have difficulty accessing loans elsewhere. While these assets may be profitable, they can also incur a lot of risk and typically come with illiquidity. It is traditionally traded among institutional and accredited investors, rather than retail investors, namely, non-professional investors. Since private credit has gained so much popularity in recent years, we use today’s conversation to unpack how private credit works, the role of private credit funds, the associated performance fees and risks, and what retail investors should know about this asset class before deciding to invest. Our conversation investigates one of the top reasons for private credit’s rise in popularity, namely risk-adjusted returns, before evaluating whether this is a worthwhile reason to invest, depending on who you are. Stay tuned for our after-show section where we discuss the proposed changes to the capital gains tax, why the death of value could be exaggerated, and more!
     
    Key Points From This Episode:
     
    (0:00:18) Today’s main topic, private credit, and our upcoming webinar on May 22nd.
    (0:02:18) An introduction to private credit as an asset class.
    (0:05:33) Private credit funds: how they work, interest rates, performance fees, and valuations.
    (0:08:14) Who does valuations on private credit funds and related risks.
    (0:10:01) Unpacking the underlying risks of private credit and how investors are compensated.
    (0:11:02) Insights from the paper ‘Direct Lending Returns’ related to publicly listed business development companies (BDCs).
    (0:16:15) Takeaways from the paper ‘Risk Adjusting the Returns of Private Debt Funds’.
    (0:18:16) Private credit funds, equity exposure, how private credit gets misrepresented, and what investors need to know about high-fee investment products.
    (0:25:09) Illiquidity and what retail investors can expect from private credit.
    (0:30:15) Our aftershow segment, starting with the proposed changes to capital gains tax.
    (0:33:55) Ben’s conversation with David Chilton.
    (0:36:55) The value premium and why the death of value could be exaggerated.
    (0:40:45) Unpacking the heated response to our conversation with Scott Galloway.



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


    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://twitter.com/RationalRemind
    Rational Reminder on YouTube — https://www.youtube.com/channel/
    Rational Reminder Email — info@rationalreminder.ca
    Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 
    Benjamin on X — https://twitter.com/benjaminwfelix
    Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/
    Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/
    Cameron on X — https://twitter.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://twitter.com/MarkMcGrathCFP
    Webinar May 22nd: Optimal Compensation Strategies for Business Owners — https://us06web.zoom.us/webinar/register/3317145039436/WN_GYudVJCYSnyF8HfUx9UbJQ
    Money Scope Episode 12 — https://moneyscope.ca/2024/04/19/episode-12-paying-yourself-as-a-canadian-business-owner/
    Money Scope Episode 13 — https://moneyscope.ca/2024/04/26/episode-13-optimal-compensation-from-a-ccpc/
    Rational Reminder Episode 220: Jonathan Berk and Jules van Binsbergen — https://rationalreminder.ca/podcast/220
    R

    • 44 min
    Budget 2024: The Capital Gains Inclusion Rate

    Budget 2024: The Capital Gains Inclusion Rate

    The Canadian government has recently proposed significant changes to how capital gains are taxed, but how will this impact Canadians? In this episode, we delve into the proposed capital gains tax changes and their impact on financial planning. We unpack the definition of capital gains tax and the complexity of the proposed changes. Explore the historical trends of capital gains tax rates in Canada, how capital gains tax works, and who will be impacted by the proposed changes. We discuss the intricacies of the alternative minimum tax (AMT), its relevance to capital gains tax, and whether the old or new AMT rules apply to the upcoming changes. Gain insights into tax considerations for long-term investment strategies, the importance of tax diversification in mitigating risk, lifetime capital gains exemption, tax planning ramifications, and more! Although this episode is Canadian-focused, it offers many useful takeaways for non-Candaians as well. To gain a comprehensive understanding of the complexities surrounding capital gains tax and strategies to navigate the proposed changes effectively, tune in now!


    Key Points From This Episode:
     
    (0:00:00) Introduction and outline of today’s topic: proposed capital gains tax changes.
    (0:03:07) Overview of the topic, what capital gains tax is, and the proposed changes.
    (0:08:10) Historical trends in capital gains tax rates in Canada.
    (0:10:59) Find out who will be impacted by the proposed changes. 
    (0:14:45) Advice on how to plan for the proposed changes with an example.
    (0:17:13) Model results and we unpack the nuance of AMT (alternative minimum tax).
    (0:25:35) How the changes to AMT impact the proposed capital gains tax changes.
    (0:32:05) Whether the new or old AMT rules apply to the proposed capital gains changes.
    (0:34:27) Important tax considerations for long-term investment strategies.
    (0:36:30) Insights into why tax diversification is essential to reduce the tax rate risk.
    (0:39:25) Interesting budget proposals and their tax planning implications.
    (0:41:17) Our perspectives on the media response to the proposed tax changes.
    (0:45:40) After-show: listeners’ reviews, upcoming guests, an update on Mark’s book, and more.
     
    Links From Today’s Episode:


    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://twitter.com/RationalRemind
    Rational Reminder on YouTube — https://www.youtube.com/channel/
    Rational Reminder Email — info@rationalreminder.ca
    Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 
    Benjamin on X — https://twitter.com/benjaminwfelix
    Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/
    Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/
    Cameron on X — https://twitter.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://twitter.com/MarkMcGrathCFP
    Capital Gains Calculator — https://research-tools.pwlcapital.com/research/realize-gain
    Episode 224 — https://rationalreminder.ca/podcast/224
    Episode 284 — https://rationalreminder.ca/podcast/284
    Episode 299 — https://rationalreminder.ca/podcast/299
    Episode 302 — https://rationalreminder.ca/podcast/302
    Canadian Medical Association — https://www.cma.ca/
    The Money Scope Podcast  — https://moneyscope.ca/
    The Most Important Lessons in Investing — https://www.youtube.com/watch?v=MOjS2zuQMdo
    Dan Solin — https://danielsolin.com/
    Compensation Strategies for Canadian Business Owners — https://www.pwlcapital.com/compensation-strategies-for-canadian-business-owners2/
     
    Books From Today’s Episode:
     
    The Wealthy Barber — h

    • 57 min
    Scott Galloway: The Algebra of Wealth

    Scott Galloway: The Algebra of Wealth

    What is the role of luck in financial success? And how can we make decisions that will put us in the best possible position to experience long-term prosperity? Joining us today to unpack these questions is Scott Galloway, a talented public speaker, author, entrepreneur, and professor of marketing at NYU Stern School of Business. His latest book, The Algebra of Wealth: A Simple Formula for Financial Security, explores key lessons to help you optimize your life for wealth and success. He is the host of a thrice-weekly podcast, The Prof G Pod, and co-hosts a podcast called Pivot with esteemed tech journalist, Kara Swisher. Scott also has a very popular blog called No Mercy / No Malice, where he shares his thoughts on wealth, business, psychology, and more. In today’s conversation with Scott, we delve into the lessons he’s learned about economic success and the contents of his new book, The Algebra of Wealth. Tuning in you’ll learn how the economic stress he experienced as a child shaped his life, the important role that luck plays in financial success, and why he believes people should follow their talents rather than their passions. Scott goes on to expand on why diversification is essential for financial success before sharing key lessons from the various businesses he has started, built, and sold. We also discuss how he manages his financial worries, his hopes for his children, and how he defines success. Tune in to hear all of Scott’s valuable insights as we take a deep dive into the forces that shape our economic outcomes, and the algebra of wealth!
     
    Key Points From This Episode:
     
    (0:00:18) Introducing today’s guest, Professor Scott Galloway.
    (0:05:43) Unpacking the title of his book The Algebra of Wealth, and what it refers to.
    (0:10:39) The pursuit of wealth as a whole-person project and why balance is rarely possible.
    (0:13:38) How stoicism can help you spend wisely and resist temptations.
    (0:19:23) The difference between working hard and having character when it comes to wealth.
    (0:22:20) Why it’s so important to acknowledge the role of luck in economic success; how Scott’s awareness of luck impacted his financial decisions and made him diversify.
    (0:30:41) The concept of having enough, why people always want more, the benefits of giving back, and the role that luck has played in Scott’s wealth.
    (0:35:31) Why Scott believes people should follow their talents, rather than their passion.
    (0:39:31) Scott’s thoughts on the work-from-home trend and why he is a big proponent of an office environment and in-person work for young people.
    (0:41:23) The key ways that physical exercise contributes to financial success.
    (0:44:37) Scott’s thoughts on financial planners, how to take advantage of technology and low-cost EFTs to diversify on your own, and qualities you should look out for in a financial planner.
    (0:50:08) Scott’s approach to investing in private businesses, his history of starting and selling companies, and why diversification is key.
    (0:52:26) What the average person should do when there is excitement about a particular stock.
    (0:56:06) Scott’s insights on the most beneficial way to trade money for time, how he manages his financial worries, and his biggest financial concerns when it comes to his children.
    (01:03:32) How Scott defines success in his life, and what he has learned so far from starting ketamine therapy.
     
    Links From Today’s Episode:


    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://twitter.com/RationalRemind
    Rational Reminder on YouTube — https://www.youtube.com/channel/
    Rational Reminder Email — info@rationalreminder.ca
    Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 
    Benjamin on

    • 1h 6 min

Recensioni dei clienti

5,0 su 5
5 valutazioni

5 valutazioni

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