The Rational Reminder Podcast
Benjamin Felix, Cameron Passmore, and Dan Bortolotti
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Top 10 The Rational Reminder Podcast Episodes
Goodpods has curated a list of the 10 best The Rational Reminder Podcast episodes, ranked by the number of listens and likes each episode have garnered from our listeners. If you are listening to The Rational Reminder Podcast for the first time, there's no better place to start than with one of these standout episodes. If you are a fan of the show, vote for your favorite The Rational Reminder Podcast episode by adding your comments to the episode page.
Episode 347 - The Case for Index Funds
The Rational Reminder Podcast
03/06/25 • 76 min
Are index funds the best investment strategy for most investors? In this episode of Rational Reminder, Benjamin Felix, Dan Bortolotti, and Mark McGrath explore why low-cost index funds should be the primary investment strategy for most people. They explain how index funds evolved from a niche concept to a widely accepted strategy and outline their six key benefits. Learn about the fees associated with index funds, why index funds outperform most actively managed funds, and how to avoid the risks of picking individual stocks. They also explore academic research on long-term mutual fund performance, the persistence (or lack thereof) in active management, and the dangers of alternative indexing schemes. Discover how behaviour impacts investment decisions and why a globally diversified portfolio is crucial. Finally, in the aftershow, Ben shares an update regarding his health and listener feedback from the Rational Reminder community. Join the conversation and uncover why index funds are the best investment strategy and how to leverage them effectively to maximize your portfolio for long-term gains. Tune in now!
Key Points From This Episode:
(0:01:58) Outline of today's topic and why index funds should be everyone's main investment strategy.
(0:05:10) Index fund fundamentals, market cap weighting, and why not all ETFs are index funds.
(0:10:03) Learn about the transition of index funds into mainstream finance and their low-fee advantages.
(0:13:30) Linking fees to index performance and why lower fees gives them an advantage over managed funds.
(0:19:50) The general awareness about index funds and what impact the lack of diversification has on actively managed funds.
(0:26:35) Explore critical research comparing the returns on investment between index funds and actively managed funds.
(0:33:32) Unpack why the size of the active management industry matters and common misconceptions surrounding the long-term returns of mutual funds.
(0:42:26) Discover why some fund managers do well and how sector-specific performance influences stock returns.
(0:48:28) Unpack why average returns are better than beating the market and what makes index funds tax efficient.
(0:51:08) Find out what makes index funds easy to use and how this results in higher returns in the long term.
(0:55:25) How index funds are consistent with foundational finance theory and why thematic ETFs and sector-specific index funds should be avoided.
(1:05:40) The aftershow: Ben shares a personal health update, Rational Reminder news, and a request for listener AMA questions.
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/
Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP
Dan Bortolotti — https://pwlcapital.com/our-team/
Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/
Canadian Couch Potato Blog — https://canadiancouchpotato.com/
Canadian Couch Potato Podcast — https://canadiancouchpotato.com/podcast/
Episode 54: Dr. David Blitzer — 1 Listener
Episode 291 - The Quant Winter, and is Canada Pension Plan a Scam?
The Rational Reminder Podcast
02/08/24 • 82 min
Are you ready for a deep dive into quantitative investing, the private credit trend, and the Canada Pension Plan (CPP)? Then this episode is for you! Joining us today is Robin Wigglesworth, The Financial Times’ global finance correspondent, and author of Trillions: How a Band of Wall Street Renegades Invented the Index Fund and Changed Finance Forever, a groundbreaking book about the past, present, and future of passive investing. We talk with Robin about quantitative investing and the ideas he lays out in his article ‘A Quant Winter’s Tale’, before hearing his insights on the private credit trend and his intriguing new book titled Bonds, all about the history of the bond market. Today’s episode also features our Mark to Market segment, where Mark McGrath joins us to talk about the Canada Pension Plan (CPP), providing a comprehensive overview of its inner workings, his response to the criticisms levelled against it, and why he believes it’s of huge benefit to a great many Canadians. Next, we take a look back at our conversation with Alexandra Macqueen on annuities before sharing our thoughts on its relevance to today’s discussion and why it’s worth revisiting. Be sure to stay tuned for our after-show segment where we share our book, blog, and viewing recommendations, plus our favourite reviews, followed by a sneak peek of some of the exciting guests we have coming up. Press play now for a deep dive into quant investing, the hype around private credit, saving for retirement, and a whole lot more!
Key Points From This Episode:
- An introduction to today’s guest, Robin Wigglesworth, followed by his breakdown of quantitative investing. (0:04:05)
- Theories on what happened to factor investing between 2018 and 2020; what is meant by the quant winter and why we are now in a quant summer. (0:09:59)
- How investor sentiment regarding factor investing changed after the quant winter and how the algorithm aversion phenomenon impacted it. (0:15:13)
- The collapse of value; the impact of the COVID-19 pandemic (plus its role in the quant winter), and where we are right now. (0:20:14)
- An overview of quant investing products, and why many of them are too expensive. (0:23:24)
- Breaking down the noisy-ness in factor data and Robin’s predictions for where factor investing will go from here. (0:25:51)
- Unpacking the hype around private credit: indications that it’s in a bubble, how it could impact broader trends, and who stands to benefit most. (0:36:36)
- We hear about the fascinating book that Robin is currently working on about the history of the bond market. (0:40:22)
- Our Mark to Market segment on the complicated (and divisive) Canada Pension Plan (CPP); how it works, its profound benefits, and responding to the criticism it has received. (0:41:50)
- A look back at our conversation with Alexandra Macqueen on annuities and how it links in with today’s discussion. (01:01:31)
- Our after-show section: an update on the Money Scope Podcast, reading recommendations, reviews from our listeners, and some of the incredible guests we have coming up! (01:04:33)
Links From Today’s Episode:
Robin Wigglesworth — https://robinwigglesworth.com/
Robin Wigglesworth on LinkedIn — https://www.linkedin.com/in/robin-wigglesworth-17101722
Financial Times — https://www.ft.com/
Trillions: How a Band of Wall Street Renegades Invented the Index Fund and Changed Finance Forever — https://www.amazon.com/Trillions-Renegades-Invented-Changed-Finance/dp/0593087682
‘Quant Winter's Tale’ — https://www.ft.com/content/e0f98278-432e-4ece-b170-2c40e40d2835
Episode 184: Robin Wigglesworth — https://rationalreminder.ca/podcast/184
Episode 93: Cliff Asness from AQR — https://rationalreminder.ca/podcast/93
Cliff Asness — https://www.aqr.com/About-Us/OurFirm/Cliff-Asness-Bio
AQR — https://www.aqr.com/
Two Sigma — https://www.twosigma.com/
D.E Shaw — https://www.deshaw.com/
CPP Investments — https://www.cppinvestments.com/
StatsCan — https://www.statcan.gc.ca/en/start
Financial Planning for Canadian Business Owners Episode 116: True Co...
1 Listener
Episode 335 - "What About Warren Buffett?"
The Rational Reminder Podcast
12/12/24 • 68 min
What makes Warren Buffett’s investment legacy so iconic, and how has his advice shaped the world of investing? In this episode, we delve into Warren Buffet's investment philosophy and the lessons he offers everyday investors. In our conversation, we unpack the impact of his investment strategies on the financial world, debunk common misconceptions, and discuss how his strategies have changed over time. We also examine the structural barriers to replicating his success, the complexities of scale and changing market dynamics, and the parallels between his approach and modern asset pricing models. Discover Warren Buffett’s astonishing historical returns, his perspectives on diminishing returns for active managers, and the misunderstood nuances of his advice regarding index funds. Gain insight into academic research on Warren Buffett’s success, his pragmatic view on cash holdings, and his opinion on the value of dividends for investors. Tune in to learn about the world's greatest investor and how you can apply his wisdom to your own portfolio!
Key Points From This Episode:
(0:04:55) Warren Buffett’s legacy and Berkshire Hathaway's performance history.
(0:13:04) The problem of diminishing returns to scale and finding skilled active managers.
(0:18:37) Reasons Buffett repeatedly advises most investors to choose low-cost index funds.
(0:23:14) Why identifying skilled managers before they outperform the market is impossible.
(0:30:15) Research explaining Buffett's success using multi-factor asset pricing models.
(0:35:30) Insight into why Berkshire Hathaway holds large cash reserves as part of its strategy.
(0:44:02) Buffett’s views on dividends and why his focus remains on reinvestment.
(0:48:16) Why diversification concentration is a bad strategy and Buffett's investing superpower.
(0:57:07) Aftershow: Ben’s experience of being on The Wealthy Barber podcast.
(0:58:07) Reviews and feedback from the episode with Randolph Cohen and Michael Green.
(1:04:58) Changes to our year-end episode format and what listeners can expect.
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/
Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP
Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/
CPP by the Fire — https://pages.pwlcapital.com/webinar_cpp_by_the_fire
Braden Warwick on LinkedIn — https://linkedin.com/in/braden-warwick-a40b48a3/
PWL Capital CPP Tool — https://research-tools.pwlcapital.com/research/cpp
Berkshire Hathaway — https://berkshirehathaway.com/
Berkshire Hathaway Shareholder Letters — https://berkshirehathaway.com/letters/letters.html
Richard Ennis — https://richardmennis.com/author/richard-m-ennis
Home Trust — https://hometrust.ca/
Ben on The Wea...
1 Listener
Episode 330 - Davidson Heath: How Are Index Funds Affecting Financial Markets and Corporate Governance?
The Rational Reminder Podcast
11/07/24 • 44 min
What happens when index investing dominates the market? In this episode, we’re joined by Davidson Heath, Assistant Professor of Finance at the University of Utah David Eccles School of Business, to explore this question and its surprising answers. Davidson’s research dives into the unintended impacts of passive investing, examining how it influences price stability, corporate governance, and even the way we define shareholder responsibility. He unpacks how index funds, while supporting price efficiency, may be weakening governance structures by reducing shareholder oversight, a shift that could have lasting effects on corporate accountability. We also discuss the promise and limitations of socially responsible investing (SRI), as Davidson introduces the term “impact washing” to describe how some SRI funds fail to achieve real change despite their green branding. In a forward-looking segment, Davidson shares insights on the collaboration between AI and human intelligence in finance, giving a reassuring perspective on the future of machine and human co-existence in complex decision-making. This episode is a must-listen for anyone curious about the hidden dynamics of passive investing and the evolving role of technology in finance!
Key Points From This Episode:
(0:02:22) Davidson’s paper On Index Investing; Why active managers are important to indexing.
(0:08:42) Conclusions on how index investing is affecting price efficiency.
(0:11:10) The role of shareholders in corporate governance.
(0:13:06) How the incentives of index funds to monitor portfolio firms differ from active funds.
(0:15:10) Measuring how well index or active funds are monitoring the companies they own.
(0:16:54) How the expense ratios of index funds affect their quality of monitoring.
(0:18:08) What shareholders can do to monitor and make themselves heard. (0:20:31) How index fund ownership affects other firm-level governance issues.
(0:21:30) Recap and takeaways on index funds and the market.
(0:25:39) The impact of socially responsible investing (SRI) and how successful they are at selecting firms with better environmental, social, and governance (ESG) characteristics.
(0:28:08) Unpacking “impact washing” in SRI funds and its consequences.
(0:33:04) Insights on how ETFs are replicating index funds.
(0:37:03) The implications of Davidson’s findings for index ETF investors and the markets.
(0:38:57) Details on Davidson’s Cyborg Trading project and how it’s using AI to complement human intelligence.
(0:42:42) How Davidson defines success: being a part of a worthwhile endeavour.
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
Davidson Heath — https://davidsontheath.github.io/ Davidson Heath on LinkedIn — h...
1 Listener
Episode 329 - Optimal Education Savings, Withdrawals, and Asset Allocation
The Rational Reminder Podcast
10/31/24 • 81 min
Unlocking the power of education savings is often a complex task, but with the right strategies, a Registered Education Savings Plan (RESP) can be a game-changer for Canadian families planning their children's future. In this episode, Ben Felix, Dan Bortolotti, and Mark McGrath take a deep dive into the mechanics of the RESP, covering everything from optimal contributions and grant maximization to tax-efficient withdrawals and asset allocation. They discuss critical factors like the Canada Learning Bond (CLB) for low-income families and the intricacies of group RESPs, noting how pooled plans, though easy to join, can financially penalize those who don’t stay the course. With the RESP’s unique 35-year lifespan and its flexible range of education options, this in-depth conversation brings clarity to a valuable tool often overshadowed by its complexity. Tune in to discover practical strategies that could transform how you fund education, optimize your investments, and make the most of Canada’s RESP benefits.
Key Points From This Episode:
(0:02:43) Purpose and structure of the RESP as a tool to fund post-secondary education.
(0:06:25) Insight and tips for how contribution limits and government matching grants work.
(0:07:13) How the CLB supports low-income families with up to $2,000 without contributions.
(0:10:13) Family RESPs, which allow multiple beneficiaries to share contributions and earnings.
(0:11:54) Distinguishing between Education Assistance Payments (EAP), Post-Secondary Education Payments (PSE), and their tax implications for beneficiaries.
(0:14:27) Front-loading versus annual contributions: optimal contribution strategies to maximize grants and investment growth.
(0:23:22) Tips for tax-efficient RESP withdrawals, especially if beneficiaries have other income.
(0:35:28) Education outside of Canada, over-contribution penalties, and other considerations.
(0:37:28) RESPs and estate planning, including naming a successor subscriber in your will.
(0:42:54) Asset allocation advice: prioritize growth early and stabilize as educational costs near.
(0:48:00) Constructive criticism of RESP policies to increase access for low-income families.
(1:02:02) Summing up the benefits and challenges of RESPs and encouraging families to use them wisely as part of their education savings plan.
(1:07:39) The aftershow: reviews, praise for Dan, and a community debate on expected returns.
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/
Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP
Dan Bortolotti — https://benderbenderbortolotti.com/about/our-team/
Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/
Registered Education Savings Plan (RESP) — https://www.canada.ca/en/services/benefits/education/education-savings/plan.html
Canada Learning Bond — 1 Listener
Episode 282: Dr. Jim Grubman: The Psychology of Wealth
The Rational Reminder Podcast
12/07/23 • 74 min
In this episode, we delve deep into the world of wealth management and family advisory services and explore the evolving landscape of financial wealth planning. Dr. James Grubman, a renowned expert in family wealth psychology and author of Strangers in Paradise and Wealth 3.0, shares his profound insights and expertise on this critical subject. Dr. Grubman is a distinguished figure in family wealth and well-being and has made a mark with his profound understanding and enduring contributions to the field. In our conversation, we unpack the wealth management landscape through a psychological lens. We discuss the definition of wealth, the complex family dynamics and hurdles faced when adapting to elevated levels of wealth, and the essential role parents play in imparting financial responsibility to their children. We also explore the fundamentals when embracing the cultural norms associated with affluence, the psychological and practical ramifications of avoiding or overcompensating for wealth, the changing landscape of family wealth management, and much more. Listeners will also gain a comprehensive understanding of the evolution of wealth management, from traditional approaches to the transformative Wealth 3.0, along with insights on nurturing strong family relationships in the context of affluence. Dr. Grubman's wealth of knowledge and engaging storytelling make this episode a must-listen for those interested in the future of wealth management. Tune in now!
Key Points From This Episode:
- Dr. Grubman’s definition of wealth and why wealth is relative. (0:04:06)
- How common is becoming wealthy compared to being born wealthy. (0:07:12)
- Family dynamics and challenges when adapting to higher levels of wealth. (0:11:01)
- Why modelling healthy personal financial management is vital for children. (0:16:00)
- Discover how the origins of wealth influence the ability to psychologically adapt. (0:20:34)
- Essential considerations when adopting the culture of wealth. (0:23:00)
- Possible reasons why someone may avoid adopting the culture of Wealth 3.0. (0:27:48)
- The implications of avoiding and overcompensating for the culture of wealth. (0:30:03)
- Explore what contributes to the successful integration into the culture of wealth. (0:35:23)
- Common barriers that prevent learning and adapting to higher levels of wealth. (0:37:10)
- Aspects parents should consider when preparing their children for wealth. (0:40:30)
- His perspective on professional advisors in managing family wealth. (0:46:36)
- Unpacking the evolution of the wealth management landscape. (0:48:37)
- He explains why the negative psychological implications of wealth have persisted. (0:53:48)
- Insights into the definition and concept of Wealth 3.0. (0:55:47)
- New skills advisors need to develop to be successful in the Wealth 3.0 generation. (1:00:20)
- Advice for finding financial advisors that are Wealth 3.0 savvy. (1:02:22)
- What Dr. Grubman is excited about in the emerging Wealth 3.0 era. (1:09:16)
- Dr Grubman shares his definition of success. (1:12:10)
Links From Today’s Episode:
Dr. James Grubman — https://jamesgrubman.com/
Strangers in Paradise — https://www.amazon.com/Strangers-Paradise-Families-Wealth-Generations/dp/0615894356
Wealth 3.0 — https://www.amazon.com/Wealth-3-0-Future-Family-Advising/dp/B0C9SHFSGM/
Cross Cultures — https://www.amazon.com/Cross-Cultures-Families-Negotiate-Generations/dp/1517626609/
Family Firm Institute (FFI) — https://www.ffi.org/
Purposeful Planning Institute — https://purposefulplanninginstitute.com/
STEP — https://www.step.org/
Ultra-High Net Worth Institute (UHNW) — https://www.uhnwinstitute.org/
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...
1 Listener
Daniel H. Pink: How to Use Regret (EP.246)
The Rational Reminder Podcast
03/30/23 • 48 min
Human beings are undeniably complex, and what motivates us can often be a mystery, even to ourselves. So, how do we go about gathering and analyzing the data that will help us answer the most fundamental questions about our lives and our purpose? The answers may lie in an unexpectedly rich source of knowledge, our regrets. While regret is likely to have a decidedly negative connotation for most of us, it is also extremely powerful and can teach us a great deal about ourselves and what we value. It is an emotion that is present in all of us, and social scientists (like anthropologists and sociologists) have been fascinated by the subject for decades. Today on the show, we are joined by one such expert, Daniel Pink, author of the book The Power of Regret: How Looking Backward Moves Us Forward. In our conversation, Daniel shares details about the research he conducted for his book, how he determined the four main categories of regret, and what we can learn from our regrets by confronting them head-on. We also discuss Daniel’s 2011 New York Times Bestselling title, Drive: The Surprising Truth About What Motivates Us, and what he thinks about working from home in light of the COVID-19 pandemic. Daniel is an exceptional storyteller and is highly knowledgeable on the subjects of regret, motivation, and the important role they play in our lives. To learn more about the many facets of regret and how it can help you thrive, be sure to tune in today!
Key Points From This Episode:
● Understanding regret as an emotion, why it differs from disappointment, and how regret can help us make better decisions. (0:03:00)
● The four main types of regret (foundation, boldness, moral, and connections) and the methodology Daniel used to determine them. (0:07:30)
● The role that outcomes play when it comes to boldness regrets. (0:13:09)
● Why Daniel believes connection regret is so common, and what regret reveals about our values. (0:14:13)
● The World Regret Survey that Daniel conducted as a systematic survey of regret, and his findings that regrets of inaction tend to stay with us much longer. (0:17:14)
● What people can learn from past financial decisions that they regret and the challenge of addressing foundation regrets. (0:20:42)
● The surprising benefits of regrets and how to learn from them. (0:21:31)
● How regret anticipation can be used to help people save for retirement. (0:22:46)
● Daniel’s system for addressing feelings of regret, why it’s important to confront them rather than wallow in them, and the importance of being kind to yourself. (0:24:01)
● The overwhelming amount of decisions we make in our lives, when to choose the best versus something that is good enough, and how to optimize future regret. (0:27:56)
● An overview of the many complex factors that motivate people, intrinsic and external motivators, and how Daniel’s research on regret affected his perspective on motivation. (0:31:16)
● Daniel’s thoughts on working from home when considering autonomy, mastery, purpose, and motivation. (0:37:17)
● The motivational model that Daniel sets out in his book Drive and some of the common misconceptions he has observed in reporting on his book. (0:39:33)
● Why people are purpose maximizers, not profit maximizers, and how this should impact the leadership of a company. (0:41:26)
● Daniel’s response to the question “How do you define success in your life?” and why he doesn’t think about the word ‘success’ very much. (0:47:08)
Participate in our Community Discussion about this Episode:
Books From Today’s Episode:
The Power of Regret — https://amzn.to/42HArID
Drive: The Surprising Truth About What Motivates Us — https://amzn.to/40jDpl7
To Sell Is Human — https://amzn.to/3K9M2ci
Free Agent Nation — https://amzn.to/40knovb
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/
Shop Merch — https://shop.rationalreminder.ca/
Join the Community — https://community.rationalreminder.ca/
Bank Runs (plus Jonathan Clements on "My Money Journey") (EP.247)
The Rational Reminder Podcast
04/06/23 • 64 min
There’s been a lot of interest in the topic of bank runs lately, and in today’s episode, we take a look at the most relevant research to help us better understand why they happen and how they can be avoided. Our conversation unpacks the 2022 Nobel prize-winning work of Douglas Diamond and Philip Dybvig and examines the three primary risks that banks need to navigate to avoid a bank run related crisis. We discuss the immense value that banks provide and how they keep the economy moving, before reflecting on how their most valuable services are inexorably tied to the risk of bank runs. You’ll also learn about the role of the media in triggering a bank run, and how the problems that arise with bank runs can be addressed through a combination of deposit insurance, bank regulation, and a diverse customer base — all of which are designed to keep depositors from panicking simultaneously. We also revisit a past conversation with Jonathan Clements, before catching up with him in real time to discuss his new book My Money Journey: How 30 People Found Financial Freedom - and You Can Too. Tune in for an in-depth look at bank runs, the value of writing your money story, and a timely reminder that when you’re making a deposit, you’re actually lending money to the bank.
Key Points From This Episode:
• An introduction to the topic of bank runs including an overview of the Nobel prize-winning work done on the subject in 2022. (0:02:12)
• The three primary risks you need to manage as a bank in order to be a successful business. (0:07:28)
• Why liquidity, illiquidity, and duration risk can pose a problem, even for healthy banks. (0:12:47)
• How news stories can create unwarranted panic and cause a bank run, even if a bank isn’t experiencing problems. (0:16:02)
• The multiple equilibria of banks as outlined in the Diamond and Dybvig paper. (0:16:31)
• How deposit insurance can function as a solution, at least in part, to bank runs. (0:19:34)
• What the Diamond and Dybvig paper teaches us about the Silicon Valley Bank (SVB) bank run. (0:21:35)
• The difference between households and banks, and the lessons households can learn from the narrative around bank runs. (0:22:59)
• A quick recap of our conversation with Jonathan Clements and a review of his new book My Money Journey: How 30 People Found Financial Freedom - and You Can Too. (0:27:16)
• We welcome Jonathan Clements back onto the show to discuss his new book and why he wrote it. (0:32:00)
• What readers can expect to learn from Jonathan’s book, like the impact parents have on your financial beliefs, and what inspires people to reassess their finances. (0:34:31)
• The impact of early habits on our finances. (0:38:36)
• Jonathan’s insights into the financial service industry, its complexity, and how our risk tolerance can shift over time. (0:40:19)
• Why regret in financial decision-making is virtually unavoidable and the value of writing your money story. (0:44:22)
• Past and upcoming meetups, feedback from our listeners, and a reminder of our 23 in 23 Reading Challenge. (0:47:42)
Participate in our Community Discussion about this Episode:
Book From Today’s Episode:
My Money Journey: How 30 people found financial freedom - and you can too — https://amzn.to/439D5Hw
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/
Shop Merch — https://shop.rationalreminder.ca/
Join the Community — https://community.rationalreminder.ca/
Follow us on Twitter — https://twitter.com/RationalRemind
Follow us on Instagram — @rationalreminder
Benjamin on Twitter — https://twitter.com/benjaminwfelix
Cameron on Twitter — https://twitter.com/CameronPassmore
Jonathan Clements on Twitter — https://twitter.com/clementsmoney
Jonathan Clements on LinkedIn —https://www.linkedi...
Episode 260: Prof. James Choi: Practical Finance
The Rational Reminder Podcast
07/06/23 • 71 min
Today we welcome James Choi, Professor of Finance at the Yale School of Management, to the show to share some of his insight into what he has dubbed practical finance. James has focused his research on behavioural finance, behavioural economics, household finance, capital markets, health economics, and sociology, and is turning this expertise into pragmatic knowledge marketed towards ordinary people. This reframing and reconfiguration of the theory for all people and the decisions they make, could not be more in line with what we are trying to do here at Rational Reminder, and this conversation with James was packed with so many surprising and informative responses to relatable questions. We ask James about index funds, the benefits of advisors, optimal equity, diversification, and much more. We also spend a little bit of time exploring the individual reasons that people have for their decisions, with James expanding on the disconnect between people's philosophy and their actions. Further topics include the role and impact of education, renting versus buying, and the formulation of his concept of practical finance, so make sure to join us and catch it all.
Key Points From This Episode:
- The failure of economic theory to explain everyday financial decisions. (0:03:03)
- A little about James' course on personal finance at Yale. (0:06:29)
- Economic theory and popular personal finance advice on optimal savings and consumption. (0:12:06)
- Looking at economic theory and popular personal finance's suggestions about optimal equity allocations for households. (0:19:33)
- The kinds of personal aversions people have towards their finances. (0:27:07)
- The impact that James' survey research has had on his perspectives on equity. (0:29:42)
- Practical application of economic theory to household decisions. (0:32:29)
- Increased awareness of the benefits of index funds. (0:42:59)
- James shares a few famous economists' investment strategies. (0:44:11)
- Some thoughts on approaches to and avoidance of diversification. (0:45:48)
- Differentiating between mistakes and unique behaviours we cannot justify. (0:52:26)
- The efficacy of education, financial advice, and personal experience in improving investment decisions. (0:55:44)
- Liquid and illiquid assets and renting versus buying property. (1:02:26)
- James talks about his excitement around his current work in practical finance. (1:07:50)
- How James defines success at this point in his life. (1:09:52)
Participate in our Community Discussion about this Episode:
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/
Shop Merch — https://shop.rationalreminder.ca/
Join the Community — https://community.rationalreminder.ca/
Follow us on Twitter — https://twitter.com/RationalRemind
Follow us on Instagram — @rationalreminder
Benjamin on Twitter — https://twitter.com/benjaminwfelix
Cameron on Twitter — https://twitter.com/CameronPassmore
James Choi — https://faculty.som.yale.edu/jameschoi/
'Behavioral Household Finance' — https://www.hbs.edu/ris/Publication%20Files/behavioral_household_finance_a3b33098-e0c7-40e0-bf2f-fa4ceb6e6d06.pdf
'Finance for the Rest of Us' — https://www.linkedin.com/posts/james-j-choi-finance_finance-for-the-rest-of-us-activity-6997910789097414656-5epq/?originalSubdomain=ba
'Popular Personal Financial Advice versus the Professors' — https://www.aeaweb.org/articles?id=10.1257/jep.36.4.167
'Millionaires Speak: What Drives Their Personal Investment Decisions?' — https://www.n...
Episode 352 – Jessica Moorhouse: Everything But Money
The Rational Reminder Podcast
04/10/25 • 67 min
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 —
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FAQ
How many episodes does The Rational Reminder Podcast have?
The Rational Reminder Podcast currently has 382 episodes available.
What topics does The Rational Reminder Podcast cover?
The podcast is about Investing, Podcasts and Business.
What is the most popular episode on The Rational Reminder Podcast?
The episode title 'Episode 347 - The Case for Index Funds' is the most popular.
What is the average episode length on The Rational Reminder Podcast?
The average episode length on The Rational Reminder Podcast is 60 minutes.
How often are episodes of The Rational Reminder Podcast released?
Episodes of The Rational Reminder Podcast are typically released every 7 days.
When was the first episode of The Rational Reminder Podcast?
The first episode of The Rational Reminder Podcast was released on Aug 2, 2018.
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