Talking Real Money - Investing Talk

Don McDonald
  • 4.5 (808)
  • 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. Tom and Roxy Qs&As

    9h ago

    Tom and Roxy Qs&As

    Tom welcomes back advisor Roxy Butner for a wide-ranging discussion that begins with practical financial advice for new graduates and quickly expands into questions from listeners about student loans, emergency funds, retirement savings, portfolio construction, mortgages in retirement, and the coming frenzy around a potential SpaceX IPO. Along the way, they explore the tradeoffs between debt repayment and investing, the role of small-cap value tilts in diversified portfolios, why taxes matter when funding a major purchase from an IRA, and how investors should think about highly publicized investment opportunities. 0:05 – Roxy Butner returns to the show by popular demand as Tom welcomes her back for a summer discussion of listener questions and financial topics. 0:57 – Graduation season prompts a conversation about money advice for new graduates and young adults starting their financial lives. 1:23 – Tom references recommendations from financial journalist Jill Schlesinger, including the importance of tracking spending before creating any financial plan. 2:05 – Why understanding cash flow is the foundation of every financial decision, from debt repayment to investing. 2:31 – The surprising statistic that roughly 60% of college graduates leave school with student loan debt and why understanding loan terms matters. 3:30 – Roxy explains how graduates should evaluate student loan repayment versus investing based on cash flow and interest rates. 4:11 – Building an emergency fund and why high-yield savings accounts remain a preferred location for short-term reserves. 4:23 – Retirement savings for young workers, including the importance of capturing employer matches and establishing savings habits early. 5:39 – Why freezing your credit can be a simple and effective defense against identity theft and fraud. 6:43 – Listener question from Del Rio, Texas: Is AVGE enough small-cap value exposure for investors who follow factor-based investing principles? 7:38 – Comparing AVGE’s built-in factor tilts with the heavier small-cap value allocations often recommended by Paul Merriman. 8:32 – The long-term historical outperformance of U.S. small-cap value stocks and the tradeoff of accepting greater volatility. 9:33 – Why Avantis intentionally chooses moderate factor tilts rather than aggressive small-cap allocations. 10:25 – Roxy discusses risk-adjusted returns and the dangers of assuming that higher expected returns automatically justify larger allocations. 11:37 – The appeal of simplicity and why a one-fund portfolio like AVGE can help investors avoid behavioral mistakes. 12:31 – Listener question from Kansas City: Should retirees withdraw $1 million from an IRA to pay cash for a new home or take a mortgage? 13:00 – A retired couple with a $4.2 million net worth faces a decision between a large IRA withdrawal and a mortgage at roughly 6.3%. 14:14 – Why a massive IRA withdrawal could trigger substantial taxes and reduce portfolio flexibility. 14:41 – Tom explains the difference between evaluating cash flow needs and preserving overall net worth. 16:03 – The importance of maintaining liquidity in retirement and avoiding excessive concentration of wealth in a personal residence. 16:41 – Roxy proposes a compromise strategy: take the mortgage now and gradually make larger payments using carefully managed annual IRA withdrawals. 18:05 – A brief discussion about lake homes, neighboring properties, and the appeal of having family nearby. 18:42 – Tom asks Roxy about investor excitement surrounding a possible SpaceX IPO and whether investors should participate. 19:32 – Why investors may already gain exposure through index funds and retirement plans without purchasing shares directly. 20:38 – IPO investing as speculation, the role of familiarity bias, and why investors should be cautious about concentrated bets. 21:57 – How major IPOs eventually enter market indexes and become part of broadly diversified portfolios. 22:02 – Summer plans, weddings, Seattle sunshine, and a lighter closing conversation. 23:19 – How listeners can submit questions or schedule a free portfolio review through TalkingRealMoney.com. Questions? Comments? Click!

    25 min
  2. Penny Wise?

    4d ago

    Penny Wise?

    Don and Tom take on one of investors’ biggest blind spots: focusing on tiny costs while ignoring the factors that have a far greater impact on long-term wealth. Using a recent Jason Zweig article as a springboard, they explain how taxes can reduce stock market returns far more than the difference between low-cost fund expense ratios. The discussion covers tax-efficient investing, asset location, ETFs versus mutual funds, dividend taxation, capital gains, and why investors should pay more attention to portfolio design than chasing the lowest possible expense ratio. They also dissect a highly tax-inefficient YieldMax fund tied to MicroStrategy and Bitcoin, illustrating how taxes and poor fund structure can devastate returns. Listener questions cover Morningstar’s acquisition of CRSP indexes and whether it threatens Vanguard investors, plus whether a retiree working part-time can contribute earned income to a Roth IRA. 0:05 Big-picture investing versus obsessing over tiny details 0:39 Why fund expense ratios matter less than most investors think 2:06 Jason Zweig’s research on taxes reducing long-term market returns 3:20 How taxes often outweigh fund expense differences 4:06 Qualified dividends versus ordinary income taxation 5:03 Why investors should pay attention to after-tax returns 5:40 YieldMax funds and the hidden cost of tax inefficiency 7:19 The dangers of exotic income-focused ETFs 7:48 Why ETFs can be more tax-efficient than mutual funds 9:15 Tax knowledge as a critical investing skill 10:30 Asset location: where stocks and bonds belong 11:20 The YieldMax MicroStrategy fund and Bitcoin losses 11:58 The truly important parts of financial planning 13:15 Listener question from Longmont, Colorado 14:17 Morningstar, CRSP indexes, and Vanguard concerns 16:00 Why market-cap indexes are unlikely to be manipulated 17:16 Morningstar ratings and conflicts of interest discussion 17:58 Thoughts on the military-industrial complex 19:23 UFL football, soccer, and sports tangents 20:47 Listener question about Roth IRA contributions from part-time work 21:30 Filing thresholds and earned income requirements for Roth IRAs 23:21 Listener questions, voice submissions, and website tools 24:08 AI voices and synthetic Don McDonald 25:59 Romper Room memories and closing banter Questions? Comments? Click!

    28 min
  3. Older and More Aggressive?

    5d ago

    Older and More Aggressive?

    NOTE: This episode was accidentally uploaded as yesterday's podcast. To make the information match, the correct podcast for 6/16 has been uploaded in yesterday's place. If you heard this episode yesterday, please check out the newest episode in the June 16th podcast preceding this one. Sorry for the error. Don and Tom take on the latest attempt to reinvent retirement investing: the claim that retirees should hold 90% stocks and just 10% bonds. They explain why focusing on recent stock returns ignores both history and human behavior, discuss the role bonds play in managing risk and retirement income, and remind listeners that successful investing is about meeting your goals—not maximizing returns at any cost. They also answer a listener question about claiming Social Security early versus waiting until age 70 and revisit the importance of maintaining exposure to emerging markets despite their volatility. 0:12 The newest retirement “better mousetrap”: 90% stocks, 10% bonds 1:48 Bob Pozen’s argument for aggressive retirement portfolios 3:01 Why 10-year return data can be misleading 4:16 The psychology of large portfolio losses 5:42 Bonds are not stocks: understanding the difference 7:37 How fixed income supports retirement withdrawals 8:22 Why retirees should know their actual asset allocation 10:04 Taking only the risk you need to take 12:25 Remembering how investors felt in 2000, 2008, and 2022 13:33 Using the Talking Real Money risk quiz 14:27 Summer request for listener questions 15:31 Listener Scott asks about claiming Social Security early 17:07 Why delaying Social Security can still make sense 18:32 The value of Social Security’s guaranteed increase 20:11 Risks of assuming stock market returns will cooperate 21:55 Why contrarian retirement advice attracts attention 22:25 The overlooked role of emerging markets 23:50 Why emerging markets belong in diversified portfolios 24:30 The risks and rewards of global diversification Questions? Comments? Click!

    27 min
  4. Better Income?

    6d ago

    Better Income?

    Should retirees live off dividends and bond interest, or use a total return strategy? Don and Tom tackle one of the most persistent myths in retirement investing: that dividend-paying stocks create safer retirement income. They explain why dividends are not “free money,” how dividend-focused portfolios can create hidden risks, and why most academic research favors a diversified total return approach. The conversation explores dividend traps, covered-call income funds, sustainable withdrawal strategies, and the importance of diversification. They also respond to a listener defending Robinhood’s platform, debate gamification in investing, and discuss Philadelphia’s new automatic retirement savings program designed to help workers without employer-sponsored plans. 0:05 Introduction: Dividend income vs. total return investing 1:44 Why retirees are attracted to dividend-focused portfolios 2:19 What a total return strategy actually means 3:37 The appeal of predictable dividend income 4:55 High-yield ETFs and the risks behind the payouts 5:03 Why dividends are not free money 6:10 Larry Swedroe’s argument: dividends are not income 6:27 Understanding the dividend trap 7:05 Extreme dividend yield example: GMEX Robotics 8:35 YieldMax and triple-digit yields 9:44 Why academics favor total return strategies 10:48 Rebalancing as an income source in retirement 11:43 The hidden risks of income-focused products 13:30 Bridge-playing and retirement banter 14:21 How listeners can submit questions 15:12 Listener question: Is Robinhood getting unfair criticism? 16:13 Robinhood, gamification, and investor behavior 18:18 Why “stodgy” may be good for money management 19:53 Philadelphia’s new retirement savings initiative 20:45 Automatic enrollment and retirement success 22:30 Why saving must be made easy 23:28 Free portfolio reviews at Appella 24:21 Discussion of The Line Uncrossed 26:47 Family history and future book possibilities Questions? Comments? Click!

    30 min
  5. Advice Evolution

    Jun 15

    Advice Evolution

    Don takes listeners on a journey through nearly four decades of investment advice, explaining how his thinking evolved from recommending active mutual funds in the 1980s to embracing index funds, factor investing, and eventually ETFs. Along the way, he and Tom discuss Vanguard’s rise, Don’s early relationship with Paul Merriman, the emergence of Dimensional Fund Advisors and Avantis, and why their recommendations have changed over time. They also address listener skepticism about fund recommendations, compare Avantis and Vanguard products, answer a tax-efficient portfolio rebalancing question from a retired couple, and debunk a marketing pitch for “layered income portfolios.” 0:08 Don shares the story of his early days giving investment advice from Leadville, Colorado 2:56 The active management era and why great fund managers were once considered essential 3:52 Vanguard’s early growth and the gradual acceptance of index investing 5:38 Don discusses Vanguard sponsoring his radio show and maintaining disclosure transparency 6:55 Paul Merriman introduces factor investing and Fama-French research 9:10 Early Dimensional Fund Advisors portfolios and advisor-only access 10:56 The rise of ETFs, Dimensional’s hesitation, and Avantis’ origins 11:23 The 2010 ETF flash crash and why Tom and Don were initially cautious 13:29 Why factor investing remains compelling despite uncertain future returns 14:20 Addressing listener skepticism about Avantis recommendations 16:07 Comparing AVUV and Vanguard VBR small-cap value funds 17:44 Comparing AVGE and Vanguard VT global equity funds 19:15 Clarifying compensation, conflicts of interest, and transparency 21:27 Listener Anton asks about tax-efficient portfolio rebalancing in retirement 26:03 Why holding bonds inside IRAs can improve tax efficiency 27:23 Discussion of Roth conversion strategies and tax considerations 30:20 Listener asks about “Layered Income Portfolios” 31:05 Why income portfolio marketing pitches are often more sales than substance Questions? Comments? Click!

    37 min
  6. Fewer Questions

    Jun 12

    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
  7. How Bonds Work

    Jun 11

    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
  8. Hot IPOs, Cold Returns?

    Jun 10

    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
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4.5
out of 5
808 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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