Money For the Rest of Us

Why an inverted yield curve is disconcerting given such low interest rates. Why those low rates could lead to radical central bank policies during the next recession. Thanks to Policy Genius and Blinkist for sponsoring the episode. For show notes and more information on this episode click here . [0:23] Yield curve inversion has generally led to a recession. [3:00] Stock market behavior during a re...

#245 With more and more college degrees being granted and higher student loan balances, when does it make sense to go to a highly selective college or to college at all? What can increase earnings more than just having college degree? Thanks to TripActions and Shipstation for sponsoring the episode. For show notes and more information on this episode click here . [0:17] The price paid by parents f...

#244 How we can use filters to better manage how much we spend and make sure our spending has a meaningful impact on ourselves and the world. Thanks to EveryPlate and LinkedIn for sponsoring the episode. For show notes and more information on this episode click here . [0:16] The FIRE movement and how much you need to retire early. [1:23] What are we supposed to be seeking? [3:23] How do we define...

#243 What are the key metrics to determine if you have reached financial independence and can retire early. How major stock market losses can derail early retirement plans and what to do about it. Thanks to Sleep Number and Blinkist for sponsoring the episode. For show notes and more information on this episode click here . [0:19] Interview opportunity with Suze Orman. [1:15] FIRE: Financially Ind...

#242. Does it make financial sense to buy Berkshire Hathaway stock and let Warren Buffett and Charlie Munger manage your money? We evaluate Berkshire Hathaway's people, investment process and performance to determine what to do. Thanks to ShipStation and The Great Courses Plus for sponsoring the episode. For show notes and more information on this episode click here . [00:19] Berkshire Hathaway as...

#241 Why modern monetary theory isn't worried about federal budget deficits, why budget deficits never go away and what are the risks if budget deficits get too large. We also explore what else proponents of modern monetary theory believe. For show notes and more information on this episode click here . [0:22] What is Modern Monetary Theory? [3:20] Taxes create demand for fiat money. [5:32] Taxes...

#240 What Henry David Thoreau can teach us about calculating costs, profits, benefits and living a life free of "quiet desperation." Thanks to Blinkist and LinkedIn for sponsoring the episode. For show notes and more information on this episode click here . 0:23] Moving into a new house and considering the simplicity of Thoreau. [2:34] Preserving Ralph Waldo Emerson’s woods. [5:15] A two-year...

#239 Why successful trading of commodities futures, foreign currencies and options depends on exploiting novice traders. Thanks to Molekule and Sleep Number for sponsoring this episode. For show notes and more information on this episode click here . [0:20] Learning how to trade. [4:52] David takes a look at a trading school for himself. [9:15] Red flags in the trade school learning process. [10:3...

#238 How the U.S. mortgage market differs from the Danish mortgage market. Danish mortgage rates and defaults are lower than the U.S.. and unlike the U.S., the Danish government is not involved in protecting investors against mortgage defaults. This episode also explores how the mortgage broker industry has evolved since the housing crash. Thanks to ShipStation and The Great Courses Plus for spons...

#237 What can we learn from the difficulties the UK is having in negotiating an exit from the European Union. What happens next? Why there is always a conflict between globalization and national sovereignty.  Thanks to LinkedIn , Blinkist and The Great Courses Plus for sponsoring the episode. For show notes and more information on this episode click here . [0:32] Update on Brexit since t...

#236 How heuristics, filters and reasonable stories help us cope with radical uncertainty and make investment decisions. Thanks to Netsuite and The Great Courses Plus for sponsoring the episode. For show notes and more information on this episode click here . [0:17] Investing is a world of radical uncertainty. [1:57] Risk vs. uncertainty. [6:01] Coping through the use of narrative. [10:39] Us...

#235 How to evaluate the purchase of a depreciating asset, such as buying a house in Japan where prices have declined 23 out of the past 29 years. Thanks to The Great Courses Plus , LinkedIn and Sleep Number for sponsoring the episode. For show notes and more information on this episode click here . [0:20] Unfortunately, there isn’t a magic formula for dealing with a housing bubble. [2:33] Ma...

#234 How and when to use passive indexing strategies without following the crowd. Thanks to Masterworks and Sleep Number for sponsoring the episode. For show notes and more information on this episode click here . [2:25] Do all index investment followers herd? [4:13] Why it has taken so long for indexing to become established. [11:05] Comparing the statistic of active management to passive managem...

#233 What is the cause of the economic crisis in Argentina and how likely is it that other developing nations will experience a similar financing crisis. Thanks to Policy Genius for sponsoring the episode. For show notes and more information on this episode click here . [0:20] Why the Argentine peso has decreased 47% in value. [3:41] 3 Reasons why Argentina is unique and has suffered such sharp ec...

#232 Why investing in commodities such as oil and gold is challenging. What you need to know before you invest. Thanks to New Retirement Planner for sponsoring the episode. For show notes and more information on this episode click here . [0:18] Where do commodities help us in the economic cycle? [2:00] How to interpret the apparent statistical decline in commodities. [5:40] Are master limited part...

#231 Why different occupations pay differently or even the same occupation in different countries. Why the same occupation can pay differently for different companies that reside in the same city. For show notes and more information on this episode click here . [0:12] A bit of background on today’s question for Money For the Rest of Us [2:28] Why do certain occupations pay more than others? [11:36...

#230 With RealtyShares and other crowdfunding platforms shutting down, should you invest on these platforms and if so how do you go about evaluating the investment opportunities. Thanks to Policy Genius for sponsoring the episode.  For show notes and more information on this episode click here . [0:30] Check out this episode for David’s experience with real estate crowdfunding investments [2:...

#229 Why modern portfolio theory is a defective way to build out an investment portfolio. This episode explains a better approach to asset allocation. For show notes and more information on this episode click here . [0:11] What is modern portfolio theory? [4:29] There are many downfalls to relying on this theory while investing [7:05] We should prepare for the worst possible outcome when investing...

#228 How distributed ledger technology and tokenized assets will increase liquidity, transparency and fractionalization, allowing investors to purchase very small, liquid positions in real estate, private companies, art and other assets. Thanks to LinkedIn for sponsoring the episode. For show notes and more information on this episode click here . [0:12] Stocks ownership used to be tied to pa...

#227 Here are four most important things to teach children about money and why showing is better than telling when it comes to kids and money. Thanks to CNote for sponsoring this episode. For show notes and more information on this episode click here . [2:58] Here’s how you can start teaching children about money [5:30] #1 - The right attitude about money comes with a balance of respect, understan...

#226 What are the characteristics of an asset bubble and how to invest when one exists. Are cannabis stocks in a bubble? Thanks to Blinkist and Policy Genius for sponsoring this episode. For show notes and more information on this episode click here . [0:10] Is the cannabis industry in an asset bubble right now? [4:41] Public conversation is often a sign of an asset bubble [8:19] Hopeful assumptio...

#225 How to evaluate interest rate risk, credit risk and other factors when investing in bonds. Thanks to Sleep Number for sponsoring the episode. For show notes and more information on this episode click here . [0:11] Predicting interest rates can be tough - here are some things to consider [4:28] What determines the rate of return if you invest in bonds or fixed income securities? [7:00] Bond pr...

#224 How to position your investment portfolio based on market cycles. Investing principles from Howard Marks' new book Mastering the Market Cycle. Thanks to CNote and LinkedIn and for sponsoring today's episode. For show notes and more information on this episode click here . [0:11] Howard Marks’ new book is the inspiration for this episode of Money For the Rest of Us [7:13] The first tool i...

#223 How commission free ETFs, mobile apps and zero fee index funds make it easier to invest if you have little money. What are some examples of commission fee ETFs and funds for Vanguard, Fidelity, Robinhood and TD Ameritrade. Thanks to Blinkist for sponsoring this episode. For show notes and more information on this episode click here . Episode Chronology [0:14] Here’s how to invest when you hav...

#222 How asymmetric information, price discrimination and the stories we tell ourselves contribute to artificial profits and income inequality. Thanks to CNote for sponsoring today's episode. For show notes and more information on this episode click here . [0:20] Rents, overpayments, and income inequality are all side effects of market distortions [8:55] Value-based pricing vs pricing based solely...