Talking Real Money - Investing Talk

Don McDonald
  • 4.5 (806)
  • Investing
  • Updated Daily

Financial talk radio veteran, Don McDonald and former host of Serious Money on PBS, Tom C**k, join forces to talk about real money issues. In each episode, they solve real money problems, dole out real investing (not speculating) advice, and really explain the financial issues that effect all of us. Plus, it's actually fun! Talking Real Money is a podcast designed to provide the real help we all need to enjoy a really great future. Call in with your questions anytime at 855-935-TALK (8255).

  1. Fewer Questions

    2h ago

    Fewer Questions

    Don answers a diverse collection of listener questions covering Roth conversions, indexed annuities, emergency fund management, TSP contributions, inherited money, and portfolio construction. He delivers a forceful warning about indexed annuities and commission-driven insurance sales after one listener considers using an annuity bonus to offset Roth conversion taxes. Other questions explore whether short-term bond funds belong inside a Roth IRA, how much attention investors should pay to taxes, investing a potential $200,000 windfall, Roth versus traditional TSP contributions, and Paul Merriman’s popular Two-Fund for Life strategy. Along the way, Don shares his appreciation for readers of The Line Uncrossed and reminds listeners how to submit questions through the new Talking Real Money website. 0:05 Summer question slowdown, Friday Q&A format, and submitting questions through the new website 1:41 Listener asks about using an indexed annuity bonus to help fund a Roth conversion 3:14 Why indexed annuities are often misleading and how insurance commissions create conflicts 5:01 The risks of moving an entire retirement portfolio to cash at retirement 6:30 Why a comprehensive fiduciary financial plan may be essential for this listener 8:16 Question about holding VFSTX as part of an emergency fund strategy 10:36 Why taxes are often a minor concern compared with investment allocation 11:03 Why a short-term bond fund may not belong inside a 42-year-old’s Roth IRA 12:17 Balancing growth, risk tolerance, and liquidity needs 13:22 TSP lifecycle funds, Roth contributions, and planning for a possible $200,000 windfall 15:03 Separating travel money from long-term investment assets 16:09 Paul Merriman’s Two-Fund for Life strategy 17:38 The role of small-cap value funds alongside target-date funds 18:13 Fama-French factor investing and the tradeoff between simplicity and optimization 19:15 Closing thoughts on listener questions and participation 20:26 What makes a fiduciary advisor different from a commissioned salesperson 21:13 Update on The Line Uncrossed and request for listener reviews Questions? Comments? Click!

    24 min
  2. How Bonds Work

    1d ago

    How Bonds Work

    Don and Tom tackle rising bond yields and the anxiety they create for investors, explaining why higher bond yields mean lower bond prices and why recent moves in long-term Treasury rates have sparked comparisons to the period before the 2008 financial crisis. They discuss inflation fears, interest rate policy, and why investors should be cautious about reading too much into bond market movements as predictors of future stock returns. The conversation reinforces the role of bonds as portfolio stabilizers rather than return generators, particularly for retirees. They also answer a listener question about covered-call ETFs, explaining how option premiums create income, why the strategy isn’t “magic money,” and the tradeoffs between yield, complexity, and risk. The episode closes with a correction involving Robert Wagner and Robert Conrad and a humorous detour into reverse-mortgage celebrity spokespeople. 0:05 Bond investing versus “bondage” and why bonds are suddenly making headlines 1:07 Rising Treasury yields and concerns about the bond market 2:30 Why investors compare today’s bond yields to conditions before 2008 3:00 Bond prices, bond yields, and the inverse relationship between them 3:51 Inflation fears, energy prices, and their impact on bonds 5:50 Global bond market pressures and rising yields in Britain 7:06 Federal Reserve rate expectations and inflation control 7:51 Lessons from the bond market collapse of 2022 8:36 Can bond market activity predict future recessions or market declines? 10:06 Why geopolitical events often fail as market-timing signals 10:31 Why own bonds when long-term returns have been disappointing? 11:03 The role of bonds in diversification and retirement portfolios 12:06 Using bonds as a spending reserve during stock market declines 13:07 Listener question: How covered-call ETFs generate income 14:18 Covered-call basics and selling options against stocks 17:26 Risks, costs, and limitations of covered-call strategies 19:38 Evaluating JEPI and the tradeoff between yield and volatility 21:22 Listener correction: Robert Wagner versus Robert Conrad 24:01 Reverse-mortgage spokespeople and celebrity rankings 25:34 Why making a top-five list may be life’s greatest achievement Questions? Comments? Click!

    28 min
  3. Hot IPOs, Cold Returns?

    2d ago

    Hot IPOs, Cold Returns?

    Don and Tom examine the coming wave of blockbuster IPOs, including rumored offerings from SpaceX, Anthropic, and OpenAI, and explain why investor excitement often leads to disappointing results. Drawing on research from Dimensional Fund Advisors and examples such as Uber, Facebook, and Groupon, they discuss the historical underperformance of IPOs and the dangers of buying into hype. They then answer a listener’s question about assets-under-management fees, explaining the broader planning, tax, behavioral, and retirement services provided by fiduciary advisors beyond portfolio construction. The episode concludes with a look at the growing number of highly speculative ETFs, including UFO-themed and meme-stock funds, and a warning that investors should focus on diversification and discipline rather than chasing the latest financial product. 0:05 Summer IPO mania: SpaceX, Anthropic, OpenAI, and the hype machine 1:24 SpaceX’s massive valuation and why investors are excited 3:05 Anthropic and OpenAI join the trillion-dollar IPO conversation 4:29 Comparing today’s IPO wave to the dot-com boom 5:09 Why hot IPOs are usually a bad investment 6:27 Dimensional research on IPO underperformance and liquidity concerns 7:51 Uber, Facebook, Groupon, and other IPO cautionary tales 8:50 Why even great companies can be poor investments at the wrong price 9:45 Why disciplined firms delay adding IPOs to portfolios 10:59 How to submit questions to Talking Real Money 13:17 Listener question: Is a 1% AUM fee really worth it? 15:20 What advisors actually do beyond portfolio management 16:44 Vanguard’s research on advisor value 17:12 Why large portfolios shouldn’t pay a flat 1% on all assets 18:24 The emotional and behavioral benefits of professional advice 20:29 How advisors help investors stay diversified 21:45 The explosion of bizarre new ETFs 22:49 UFO ETFs, meme-stock funds, and speculative product launches 25:05 Why investors should be skeptical of niche ETFs and high fees Questions? Comments? Click!

    28 min
  4. What is Risk?

    3d ago

    What is Risk?

    Don and Tom explore the difference between smart risk and dumb risk in investing, sparked by new survey data showing younger investors increasingly believe they must take big risks to achieve their financial goals. They discuss the rise in stock trading, options speculation, and meme-stock behavior, contrasting those activities with evidence-based risks such as broad stock market investing, factor tilts, and maintaining efficient use of cash. They also answer a listener question from a recently retired investor concerned about market valuations and inflation, discussing small-value tilts, bond allocations, and the role of TIPS. Along the way, they wander into Roman and Han Dynasty history, retirement boredom, Don’s Civil War novel, podcast economics, and the launch of the newly redesigned Talking Real Money website. 0:05 Podcasting economics, removing ads, and the realities of making money from podcasts 2:34 Why investors believe they need to take bigger risks to reach financial goals 4:26 The growth of indexing and the shift away from active investing 4:59 FINRA survey shows younger investors embracing options and speculative trading 6:25 Smart risk versus dumb risk and why experience changes risk perception 7:04 Options, IPOs, hot stocks, crypto, and other forms of speculative risk 8:07 Research on options trading success rates and why most traders lose money 8:48 Individual stocks, market timing, and sector bets that historically have not paid off 10:47 Risks that may be worth taking, including all-stock portfolios for younger investors 11:22 The long-term case for owning the global economy through diversified stock funds 11:55 Small-cap, value, profitability, and momentum factor tilts 12:37 The hidden cost of idle cash and improving returns through better cash management 13:42 Why inflation is guaranteed to beat most traditional bank savings accounts 14:59 Roman and Han Dynasty history and what it says about long-term economic growth 15:42 The new Talking Real Money website and easier ways to submit questions 17:34 Listener question from a 58-year-old retiree using a Boglehead four-fund portfolio 19:15 Whether adding a small-value tilt makes sense in retirement 20:41 Thoughts on bond funds, TIPS, and inflation protection 22:02 Short-term Treasury ETFs versus high-yield savings accounts 23:11 Avoiding emotional reactions to market valuations 24:03 Retirement longevity risk and planning for a potentially decades-long retirement 24:52 Don discusses researching and writing The Line Uncrossed 27:32 Meet-an-Advisor invitation and how the free portfolio review process works Questions? Comments? Click!

    29 min
  5. Not Bogle's Vanguard

    4d ago

    Not Bogle's Vanguard

    Don and Tom question whether the investment industry—and increasingly Vanguard—keeps creating new products simply to stay relevant rather than solve real investor problems. They critique Vanguard’s new Target Retirement Lifetime Income Fund, which combines a target-date fund with an annuity, arguing that it sacrifices liquidity, introduces inflation risk, and obscures costs. They also take aim at Vanguard’s new Active/Passive Model Portfolio Series, suggesting it adds unnecessary complexity and market-timing assumptions to what should be a straightforward indexing approach. Listener questions cover the risks of holding 72% of retirement assets in an ESOP and whether a military family should replace a simple Schwab index-fund portfolio for their two-year-old daughter with AVGE. The episode closes with a plug for The Line Uncrossed and a discussion of the real-life Civil War experiences that inspired the novel. 0:12 Do investors really need new products and new ideas? 2:11 Vanguard’s Target Retirement Lifetime Income Fund and annuities in target-date funds 4:29 Liquidity, inflation risk, and the tradeoffs of guaranteed retirement income 7:44 Why immediate annuities often take years just to return your own principal 9:16 Morningstar’s skepticism of guaranteed-income retirement products 10:46 Vanguard’s new Dynamic Active Passive Model Portfolio Series 12:42 Are active/passive hybrid portfolios solving a real problem? 13:38 Has Vanguard lost its indexing compass? 15:30 New Talking Real Money website features and submitting listener questions 16:12 ESOP question: 72% of retirement assets tied to employer stock 17:59 The dangers of concentrated company-stock positions 21:29 Understanding ESOP returns versus traditional investments 24:09 Why diversification matters more than past ESOP performance 26:49 Using GI Bill benefits, a 529 plan, and a UTMA to fund a child’s future 28:27 AVGE versus a simple total-market index portfolio for a young child 29:42 Why simplicity may be good enough for long-term investing success 30:35 Discussion of The Line Uncrossed and its Civil War inspiration 31:41 John B. Anderson, Andersonville Prison, and the history behind the book Questions? Comments? Click!

    34 min
  6. Stormy Q&A DAY

    Jun 5

    Stormy Q&A DAY

    Don records through a booming Florida thunderstorm while tackling five listener questions. He discusses a thoughtful strategy for using a UTMA account to teach investing and potentially fund a future Roth IRA, then provides a detailed overview of what goes into a true financial plan, including cash flow analysis, insurance, estate planning, tax strategy, retirement projections, and investment management. Another listener asks about investing for a long life, prompting Don to explain why maintaining a diversified portfolio and spending less than portfolio growth are the keys to retirement sustainability. He also addresses when retirees might safely move from a 4% withdrawal rate toward 5%, emphasizing flexibility over rigid rules. The episode concludes with a discussion of HSAs, explaining why they are often better spent during retirement rather than left to non-spousal heirs, who may face less favorable tax treatment. 0:04 Florida thunderstorm opening and update on the new podcast website and question system 2:35 Using a UTMA account as a teaching tool, harvesting gains for a child, and eventually funding a Roth IRA 4:47 What a comprehensive financial plan actually includes beyond investments 6:14 Gathering financial data, setting goals, cash flow analysis, and risk management 7:42 Asset allocation, diversification, Monte Carlo simulations, and behavioral coaching 8:28 Retirement planning, Social Security timing, Roth conversions, RMDs, and tax strategies 10:23 Listener crediting the show for retirement confidence and asking about investing for longevity 12:37 Why spending less than portfolio growth is the key to long-term retirement success 14:15 Whether a 4% withdrawal rule can become 5% later in retirement 15:45 Fixed versus flexible withdrawal strategies and how age affects sustainable spending 17:49 HSA withdrawal decisions in retirement and inheritance considerations 19:31 Why HSAs generally should be spent rather than preserved for non-spousal heirs 20:52 Meet-an-Advisor invitation and how portfolio reviews can uncover hidden risks Questions? Comments? Click!

    23 min
  7. Worried About Inflation?

    Jun 4

    Worried About Inflation?

    Don and Tom tackle investors’ obsession with inflation protection and the financial industry’s willingness to sell expensive products that promise impossible outcomes. Using PIMCO’s Inflation Response Multi-Asset Fund as a case study, they explain why complex, high-cost inflation hedges often create more problems than they solve. The discussion explores historical inflation, why stocks remain the most effective long-term defense against rising prices, and the dangers of chasing investment magic. Listener questions cover retirement asset allocation at age 50, the role of bonds as retirement approaches, balancing Roth and traditional retirement contributions in a high-tax state, and the surprisingly small impact of foreign tax credits on international fund returns. 0:05 Why investors constantly search for inflation-proof portfolios 2:09 Historical inflation, Fed targets, and perspective on rising prices 5:47 The endless appeal of inflation hedges 6:15 Breaking down PIMCO’s Inflation Response Multi-Asset Fund 8:09 Why TIPS, commodities, and leverage aren’t magic solutions 10:57 Stocks as the best long-term inflation defense 12:39 Listener question: Moving from 100% stocks toward retirement 14:15 Risk tolerance versus age-based allocation formulas 15:58 Building a bond allocation before retirement 17:26 Small-cap value and international diversification considerations 19:24 Roth versus traditional 401(k) contributions in New York 21:44 The value of tax diversification and multiple retirement account types 23:13 Countries that operate without personal income taxes 24:19 Understanding foreign tax credits and international funds 27:58 Why tiny tax differences shouldn’t drive investment decisions 28:14 Celebrating 1,900 Talking Real Money podcast episodes 29:09 An advisor shares how the podcast helps her growing practice 30:26 Working with a fiduciary advisor at Appella Questions? Comments? Click!

    32 min
  8. Can You Retire?

    Jun 3

    Can You Retire?

    Most Americans are far less prepared for retirement than many assume. Don and Tom discuss new Federal Reserve data showing that only about half of Americans have retirement accounts, the median retirement balance is just $200,000, and only a tiny percentage of retirees have more than $1 million saved. They explain why starting early, saving consistently, and avoiding speculative investing matter far more than chasing hot stocks or market trends. The episode also covers Social Security misconceptions, the challenges of retiring on limited income, concerns about Schwab’s Teen Investor Account, and the importance of teaching young people disciplined long-term investing habits. 0:11 How many Americans actually have enough saved for retirement? 2:08 Federal Reserve data on retirement account ownership 3:18 The surprisingly low median retirement balance 4:47 Why advisors chase million-dollar clients 5:07 Income, education, and retirement savings disparities 7:06 Homeownership and wealth accumulation 8:25 The importance of simply getting started 9:41 Why Fidelity says it takes roughly 27 years to reach $1 million 10:56 Saving versus investing and the dangers of speculation 12:03 Leaving retirement money alone during market and life crises 14:08 Bellevue, Nebraska caller asks about Social Security earnings limits 15:11 Social Security taxation and claiming considerations 16:32 Discussion of Edward Jones and advisor relationships 19:29 Can a 76-year-old buy a home with $400 monthly payments? 21:44 Schwab Teen Investor Account review 22:39 Why Don dislikes stock-picking education for teenagers 25:12 How custodians profit from trading activity 26:35 Better ways to teach young people about investing 27:31 Free advisor meetings and listener resources Questions? Comments? Click!

    30 min
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4.5
out of 5
806 Ratings

About

Financial talk radio veteran, Don McDonald and former host of Serious Money on PBS, Tom C**k, join forces to talk about real money issues. In each episode, they solve real money problems, dole out real investing (not speculating) advice, and really explain the financial issues that effect all of us. Plus, it's actually fun! Talking Real Money is a podcast designed to provide the real help we all need to enjoy a really great future. Call in with your questions anytime at 855-935-TALK (8255).

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