Talking Real Money - Investing Talk

Don McDonald

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. Retirement Mistakes

    10h ago

    Retirement Mistakes

    Don and Tom tackle some of the most common retirement planning mistakes, with a particular focus on taxes and the danger of becoming overly obsessed with them. They discuss taxable Social Security benefits, the importance of diversifying across account types, Roth conversion considerations, tax-loss harvesting, and why most retirement decisions ultimately fall into the category of “it depends.” They also answer a listener question about navigating poor 403(b) plan options and the advantages of a 457 plan for educators. Finally, they dive deep into a thoughtful challenge from a listener regarding Avantis and Dimensional factor funds versus traditional Vanguard index funds, examining the evidence for factor tilts, the role of risk premiums, costs, and whether higher expected returns justify modestly higher expense ratios. 0:05 Retirement planning mistakes, taxes, retirement income, financial independence, retirement readiness 1:58 Tax obsession, retirement taxes, income planning, financial priorities, wealth management 2:43 Social Security taxation, taxable benefits, retirement income, Social Security myths, tax planning 5:14 Tax diversification, traditional 401(k), Roth accounts, brokerage accounts, retirement savings 7:57 Roth IRA, young investors, compound growth, retirement investing, tax-free income 9:11 Tax-loss harvesting, brokerage accounts, capital gains, tax strategy, investment management 10:03 Roth conversions, Medicare IRMAA, retirement taxes, financial planning, tax efficiency 12:03 Inherited IRAs, heirs, estate planning, retirement accounts, legacy planning 13:35 403(b) plans, 457 plans, retirement savings, school employees, listener question 15:29 403(b) Wise, 457B Wiser, educator retirement plans, high fees, retirement options 18:35 Roth IRA investing, small-cap funds, emerging markets, diversification, asset allocation 19:38 Avantis funds, Dimensional funds, Vanguard funds, factor investing, index investing 23:55 Fama-French research, small-value premium, indexing, active management, factor premiums 26:08 Rules-based investing, passive investing, factor tilts, portfolio construction, diversification 27:02 Small-cap value investing, fund performance, index comparisons, advisor value, investment returns 30:25 International small value, emerging markets, factor premiums, diversification, expected returns 32:55 Academic investing research, Nobel Prize economics, risk premiums, value investing, factor investing 35:18 Portfolio construction, asset allocation, diversification, retirement planning, investment strategy 36:16 Free portfolio review, financial advice, portfolio allocation, retirement readiness, fiduciary planning Questions? Comments? Click!

    39 min
  2. Question Feast

    3d ago

    Question Feast

    Don celebrates the continued success of the Friday Q&A format and the encouraging first week of sales for his novel The Line Uncrossed, including a strong Kirkus review, before tackling a series of listener questions centered on retirement income and fixed income investing. He explains how his combination of cash reserves, a CD ladder, and bond funds supports a disciplined withdrawal strategy, discusses why diversified bond funds like BND still play an important role in reducing portfolio volatility, rejects the idea that Social Security and pension income should be counted as bond allocations within an investment portfolio, argues against the concept of a reverse glide path that increases stock exposure later in retirement, and shares lessons learned from decades of entrepreneurship about balancing investments in a business versus the market. Throughout the episode, he emphasizes diversification, discipline, investor behavior, and the importance of managing volatility rather than chasing returns. 0:05 Why listener questions remain Don’s favorite part of talk radio after 40+ years 1:16 Friday Q&A episodes continue to be the most downloaded shows each week 1:50 Easier ways to submit questions through the redesigned Talking Real Money website 2:42 First-week sales update on The Line Uncrossed and reader support 3:21 Positive Kirkus review and details on the ebook bundle 4:48 How Don uses cash, bond funds, and a CD ladder during retirement 8:00 Why BND and total bond market funds remain useful fixed income tools 11:22 Should Social Security and pensions count as bonds in your allocation? 14:26 Why Don believes reverse glide paths are a bad retirement strategy 17:34 Investing in your own business versus investing in the market 21:23 Why compliance reviews delay listener questions from airing Questions? Comments? Click!

    25 min
  3. You're Right, Of Course

    4d ago

    You're Right, Of Course

    This episode of Talking Real Money examines why financial advice so often turns into emotional debate instead of productive problem-solving. Don and Tom discuss how investors routinely underestimate spending, cling emotionally to employer stock, and defend strategies like dividend chasing, covered calls, crypto, or gold despite decades of evidence favoring diversified investing. They answer a listener question about aggressively paying down a 6.625% adjustable-rate mortgage versus maintaining liquidity, warn about commissioned advisors circling employees receiving RSU payouts, and correct a previous mistake regarding Roth employer matches under Secure 2.0 legislation. Along the way, the hosts mix humor, blunt honesty, and personal stories about why changing financial behavior is far harder than simply explaining the math. 0:05 Are listeners looking for advice, validation, or just an argument? 0:58 “Two old white guys waiting to die on a podcast” and why changing investor behavior is so difficult 1:24 Basis points complaints and arguing over financial terminology 2:21 Why financial planning conversations often become debates 3:16 Most people underestimate how much they actually spend 4:04 Net income minus savings equals spending, whether you admit it or not 4:59 Growing up arguing in big families and learning debate skills early 5:53 Emotional attachment to employer stock and concentration risk 6:19 Microsoft, Enron, Washington Mutual, and the danger of loyalty investing 7:02 Why many individual stocks underperform for long stretches 7:42 Covered calls, dividend strategies, and belief in “secret” investing systems 8:16 Why Don and Tom remain skeptical of crypto, gold, and speculative investing 9:16 Their investing philosophy comes from peer-reviewed academic research, not hunches 10:17 If you call for portfolio help, don’t expect automatic validation 11:23 Listener Jim asks whether to aggressively pay down his adjustable-rate mortgage 12:17 Extra principal payments versus saving cash to pay off the mortgage later 13:12 Why a 6.625% mortgage changes the payoff math 14:35 Liquidity concerns versus the emotional appeal of being debt-free 15:06 Mortgage recasting explained and reducing future interest costs 17:39 Regret over not refinancing during ultra-low-rate years 18:10 Why peace of mind sometimes outweighs financial optimization 18:50 “Paper argues badly” and the transition into listener emails 18:59 RSU sharks circling a listener with a large restricted stock payout 19:48 Wealth managers aggressively targeting employees cashing out company stock 20:47 Warning signs of commissioned annuity sales disguised as “help” 21:48 Why concentrated company stock remains risky even after huge gains 22:24 Recalling the advisor who openly admitted to a 10% annuity commission 22:41 Retirement quiz follow-up and correcting a Roth 401(k) mistake 23:01 Secure 2.0 technically allows Roth employer matches in 401(k)s 24:09 Why most employers still don’t offer Roth matching contributions 24:36 Tax uncertainty and the value of maintaining both Roth and pre-tax accounts 25:33 Tom admits he occasionally tells players when he missed a call as a referee 26:05 Encouraging listeners to argue, ask questions, and engage with the show 27:02 Offering free portfolio consultations without annuity sales pressure 27:39 Joking about becoming annuity salesmen after all these years Questions? Comments? Click!

    30 min
  4. Free Money?

    5d ago

    Free Money?

    Tom and Don dismantle the myth of “free money” from high-dividend stocks and ETFs, explaining why chasing yield often leads to poor diversification, lower total returns, and disappointing long-term performance. Using examples like Campbell’s, Kraft Heinz, and Whirlpool, they show how dividend-paying companies can still destroy shareholder value while the broader market marches higher. The episode also features listener questions on military retirement planning with a pension-heavy income stream, asset allocation and Roth contributions near retirement, how to structure a UC retirement portfolio using low-cost index funds and small-cap value tilts, and the smartest way to generate retirement withdrawals from a balanced portfolio. Along the way, Don plugs his new Civil War novel The Line Uncrossed and the hosts revisit some old radio history. 0:05 Dividend investing myths and “free money” thinking 2:18 Why retirees are drawn to dividend stocks and ETFs 4:03 Huge inflows into high-dividend ETFs despite lower expected returns 5:19 Total return vs. income investing explained 5:45 Campbell’s Soup and Kraft Heinz as dividend trap examples 7:06 Whirlpool cuts long-running dividend after financial strain 8:10 Why total return matters more than yield 9:10 Vanguard Dividend Growth vs. S&P 500 performance comparison 10:44 The dangers of concentrated dividend strategies 12:19 Why “magic income” strategies usually disappoint 13:32 Military retirement caller asks about pensions, Roths, and mortgage payoff 17:43 Using pensions as bond-like income in portfolio allocation 18:41 Caller shifts from U.S.-only investing toward global diversification 20:28 Don discusses The Line Uncrossed and companion Civil War stories 22:30 UC employee asks about AVGE/DFAW vs. ultra-cheap UC index fund 24:39 Suggested mix using low-cost index fund plus small-cap value tilts 26:04 Listener thanks Don for decades of investing guidance 27:58 Retirement withdrawal strategies from a 60/40 portfolio 29:19 Rebalancing as the primary source of retirement cash flow 30:14 Why retirement distribution planning matters 32:35 Fiduciary advice vs. product sales pitches 33:54 Friendly rivalry with Stacking Benjamins Questions? Comments? Click!

    36 min
  5. Infinite Bubbles?

    6d ago

    Infinite Bubbles?

    Tom and Don tackle the impossible task of spotting market bubbles in real time, leaning on insights from Jason Zweigand Eugene Fama to argue that if bubbles were truly predictable, they wouldn’t exist. They discuss soaring semiconductor and AI-related stocks, speculative manias from tulips to SPACs to Bitcoin, and why diversification and disciplined rebalancing beat emotional market timing every time. Listener questions cover tax-loss harvesting and wash sales involving VT, VTI, and VXUS ETFs, family conversations about money, Roth conversion strategy for a wealthy near-retiree, and Dimensional’s refusal to chase hot IPOs despite the S&P 500’s changing rules. Along the way, there’s plenty of classic TRM banter about giant brains, vacation boredom, and the dangers of trying to outsmart markets that are probably smarter than all of us combined. 0:05 Bubble noises, market mania, and why everyone thinks they can spot bubbles 1:11 Jason Zweig on semiconductor stocks soaring nearly 40% in a month 2:23 Emerging markets, small value, and global stocks compared to AI-driven speculation 3:39 Eugene Fama explains why bubbles are impossible to identify in real time 4:26 Dot-coms, Bitcoin, SPACs, and the legendary tulip bulb bubble 5:03 Why “doing nothing” often beats reacting emotionally to market fears 5:51 Jason Zweig’s sign of a bubble: when critics get attacked instead of debated 7:15 Rebalancing, diversification, and why the S&P 500 alone isn’t enough 9:41 Listener question on tax-loss harvesting, wash sales, and replacing VT with VTI and VXUS 14:05 Why families should talk openly about money instead of outsourcing financial education to TikTok 17:44 Near-retiree with $7.3 million asks about Roth conversions and paying taxes from IRAs 20:36 Dimensional responds to S&P rule changes allowing earlier IPO inclusion 21:15 Why Dimensional avoids IPOs during their first year after going public 22:39 Allbirds’ collapse from a $2.2 billion IPO to a $39 million sale 24:47 Why waiting before buying IPOs may reduce risk Questions? Comments? Click!

    28 min
  6. Indexes Gone Wild

    May 21

    Indexes Gone Wild

    Don and Tom take on the uncomfortable reality that even supposedly “rules-based” index investing is starting to look suspiciously active, as major indexes like the S&P 500 consider bending long-standing rules to admit massive IPOs like SpaceX earlier than before. They explain why changing index rules matters more than most investors realize, debate whether index committees are chasing performance to stay competitive with the QQQ, and argue that broad global diversification may be safer than relying on any single benchmark. Listener questions cover retirement-saving strategies for LLC owners, how highly compensated employees can work around 401(k) discrimination limits, the pros and cons of backdoor Roth strategies, and why taxable brokerage accounts are often more tax-efficient than people assume. The episode wraps with skepticism about proposed “Trump IRA” retirement plans that don’t actually exist yet, plus the usual blend of sarcasm, practical advice, and mild exasperation with modern finance. 0:05 Rules-based investing versus changing the rules mid-game 0:50 Why podcasting is safer than television for Don and Tom 1:40 How index funds are supposed to work 2:27 Why the S&P 500 wants SpaceX and giant IPOs 3:01 IPO hype, pricing games, and the original S&P waiting rule 4:05 Fear that indexes are drifting into active management 5:01 Why investors wrongly assume the S&P 500 is “automatic” 6:24 Explaining stock float and why liquidity matters 8:07 QQQ and S&P changing IPO admission rules 9:10 Why changing index rules should concern investors 10:08 The explosion of specialized stock indexes 11:33 Why owning the whole global market may be safer 12:27 How Dimensional and Avantis differ from traditional indexes 14:04 How listeners can submit questions to the show 15:06 Retirement options for an LLC owner taking only dividends 16:57 IRS concerns about treating a business like a hobby 18:52 Highly compensated employee struggles with 401(k) testing 20:42 Using a rollover IRA to reopen backdoor Roth opportunities 21:58 Why taxable brokerage accounts are underrated 22:33 Tax-efficient ETF investing and retirement flexibility 23:14 Questions about the proposed “Trump IRA” plan 24:35 Why investors should ignore retirement proposals that don’t yet exist 25:58 Congress, air conditioning, and why Washington never leaves town 26:48 Podcast rankings and chasing Stack & Benjamins Questions? Comments? Click!

    29 min
  7. Fear Sells

    May 20

    Fear Sells

    Don and Tom unload on sensationalized financial journalism, taking aim at recent articles claiming the 4% withdrawal rule and classic 60/40 portfolios are “failing” retirees. They argue that the media increasingly prioritizes fear-driven headlines over practical investing wisdom, pushing emotionally charged narratives that ignore investor behavior and long-term historical returns. The duo also push back against claims that target-date funds could wipe out retirees, explaining why diversified portfolios remain far less risky than headlines suggest. Listener questions cover Robinhood’s controversial 2% transfer bonus, SEC transaction fees on ETF sales, Roth IRA liquidity concerns, rebalancing discipline, and the dangers of emotionally reacting to politics and markets. Along the way, Don discusses the release of his Civil War novel The Line Uncrossed, while Tom manages to squeeze in Morse code, Rasputin, and model bomber references for absolutely no good reason whatsoever. 0:05 Don and Tom rant about the collapse of quality financial journalism 1:43 Criticism of Money.com article attacking the 4% rule and 60/40 portfolios 2:44 Morningstar’s 3.7% withdrawal study versus the traditional 4% rule 4:21 Why “100% stocks beats 60/40” ignores investor psychology and risk tolerance 5:03 Emotional pain, market crashes, and why most investors cannot handle full equity exposure 6:02 Financial media sensationalism and clickbait retirement headlines 7:32 Seattle Times article warning target-date funds could destroy retiree savings 8:35 Critique of claims that target-date funds are dangerously risky at retirement 9:41 Discussion of Vanguard 2025 target-date allocation and global diversification 12:00 Why diversified global portfolios are far less risky than fearmongers suggest 13:16 Media outrage, sensationalism, and why Talking Real Money avoids scare tactics 14:48 Listener comment about Don’s books appearing on Amazon 15:15 Reality check on book royalties and publishing economics 15:49 Discussion of Don’s Civil War novel The Line Uncrossed 17:19 Book pricing, Kindle strategy, and avoiding Amazon exclusivity 18:41 Transition to listener questions 19:10 Caller asks about Robinhood’s 2% IRA transfer bonus and possible tax issues 20:10 Why IRA transfers and Robinhood bonuses are generally not taxable 21:05 Concerns about Robinhood’s gamified investing culture versus Vanguard’s philosophy 22:03 Risks of getting lured into speculative products after transferring assets 22:59 Caller explains working with a fee-only fiduciary advisor and self-managing investments 24:48 SEC transaction fees on ETF sales explained 25:47 Why the SEC fee is effectively meaningless for ordinary investors 26:15 Listener question about moving Roth IRA money to CDs due to market fears 29:10 Why emotionally reacting to politics and market fears can hurt long-term investing 31:17 Importance of maintaining an appropriate long-term asset allocation 31:41 Tom jokes nervously about a meeting with HR Questions? Comments? Click!

    35 min
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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