2023 was a very interesting year in markets. The pessimism many investors had at the beginning of the year turned out to be unfounded as markets produced well above average returns. And the economy also remained more resilient than many thought, with inflation falling more than expectations throughout the year. Now that 2023 has come to a close, we wanted to take a look back and share the biggest lessons we learned from the year. We discuss what we learned in markets and what we learned in our l...
Jan 01, 2024•40 min•Season 1Ep. 44
Forecast season is once again upon is. It is the time of year where many market strategists will tell us where the S&P 500 will end 2024 and do it with conviction. There is just one problem. Almost all of them will be wrong. But despite the fact that the evidence that forecasting the market is a losing game, many of us who follow markets still think we can do it. So we decided that the best way for us to overcome that bias is to try to do it ourselves. In our first annual forecast episode, a...
Dec 27, 2023•47 min•Season 1Ep. 44
Many value investors may see momentum as the antithesis of their approach to investing. But the reality is that there are a variety of ways that value investors can use momentum to enhance their approach. In this episode, we discuss four of them. We hope you enjoy the discussion. SEE LATEST EPISODES https://www.validea.com/the-education-of-a-financial-planner-podcast FIND OUT MORE ABOUT VALIDEA CAPITAL ...
Dec 18, 2023•44 min•Season 1Ep. 43
Stocks and bonds have their best returns in history over the past 40 years. But history tells us that the period is more the exception than the rule. With the outlook for stocks and bonds not looking as rosy as the past, many investors have questioned whether a portfolio consisting of just stocks and bonds is enough. In this episode, we tackle that question. We look at the future outlook for stocks and bonds and evaluate a variety of alternative strategies investors could consider. We hope you e...
Dec 11, 2023•51 min•Season 1Ep. 42
One of the most common pieces of advice given to investors is to have a process. But figuring out what that process should be is much more challenging. And determining when to change it is even harder. In this episode, we tackle both issues. We look at the characteristics of a good investment process. We also look at international diversification, the 60-40 portfolio and the struggles of value investing as examples of how to think about when to change it. We hope you enjoy the discussion. SEE LA...
Dec 04, 2023•42 min•Season 1Ep. 41
As we approach the end of 2023, there are many considerations for investors both on the investing and the financial planning side. In this episode, Ben Tuscai returns to help us work through them. We discuss tax loss harvesting, how we look at the process of evaluating investment strategy changes, RMD considerations and a lot more. We hope you enjoy the discussion. SEE LATEST EPISODES https://www.validea.com/the-education-of-a-financial-planner-podcast...
Nov 27, 2023•42 min•Season 1Ep. 40
In this episode, we take a deep dive into momentum investing. We discuss the different types of momentum, why it works, how it is measured and how it is used to construct portfolios. We also cover trend following, the behavioral challenges of momentum and how to think about momentum in the context of a financial plan. We hope you enjoy the discussion. SEE LATEST EPISODES https://www.validea.com/the-education-of-a-financial-planner-podcast...
Nov 20, 2023•50 min•Season 1Ep. 39
Value and momentum might be the most popular factors with investors, but quality and low volatility also have significant research supporting them. In this episode we take a detailed look at the quality and low volatility factors. We discuss how they are defined, why the work and how they can be coupled with other factors like value and momentum. We hope you enjoy the discussion. SEE LATEST EPISODES https://www.validea.com/the-education-of-a-financial-planner-podc...
Nov 13, 2023•34 min•Season 1Ep. 38
There is a tendency for investors to think that all value strategies are similar. But the reality is they can be very different. In this episode, we work through the major decisions that value managers make that lead to those differences and how they impact the strategies that result. We also take a deep dive into some popular value ETFs to see how the differences among value strategies can be measured and analyzed in the real world. We hope you enjoy the discussion. SEE LATEST EPISODES ...
Nov 06, 2023•39 min•Season 1Ep. 37
In this episode, we are joined by Heather and Doug Boneparth, co-authors of the Joint Account blog. Heather and Doug share their own experience with respect to money in their marriage and what all of us can learn from it. We discuss how to better communicate about money at the different stages of relationships, having a CFO and a COO in a marriage, defining success and a lot more. We hope you enjoy the discussion. SEE LATEST EPISODES https://www.validea.com/the-educ...
Oct 30, 2023•53 min•Season 1Ep. 36
With value investing now having struggled for over a decade, many are questioning whether the strategy has become permanently broken. In this episode we examine the arguments against value investing both from the perspective of a quant investor who builds value strategies and a financial planner who uses them. We look at the different types of value strategies and why value isn't just buying the cheapest stocks. We then get into the arguments against value and discuss whether value's popularity ...
Oct 23, 2023•52 min•Season 1Ep. 35
In this episode, we look at the basics of franchising with FranNet's Ben Terrill. We discuss the types of businesses that can be setup via franchising, the pros and cons of the model vs. setting up a traditional business and how the economics work. We also talk about how starting a franchise can fit into a traditional financial plan. SEE LATEST EPISODES https://www.validea.com/the-education-of-a-financial-planner-podcast FIND OUT MORE ABO...
Oct 16, 2023•53 min•Season 1Ep. 34
In this episode, we tackle some of the questions we have been hearing from investors in recent weeks. We discuss the desire to move into short-term bonds, whether a laddered bond portfolio can sustain a 4% withdrawal rate, the potential opportunity in international stocks, residential real estate and a lot more. SEE LATEST EPISODES https://www.validea.com/the-education-of-a-financial-planner-podcast FIND OUT MORE ABOUT VALIDEA CAPITAL ...
Oct 09, 2023•53 min•Season 1Ep. 33
In this episode, we are joined by Sunpointe's Ben Tuscai to take a deep dive into Roth conversions. We discuss the criteria that investors can use to determine when the make sense and why they aren't used in the real world as often as you might think. We also discuss back door Roth conversions, mega back door Roth conversions, conversions inside employer plans and a lot more. SEE LATEST EPISODES https://www.validea.com/the-education-of-a-financial-planner-podcast...
Oct 02, 2023•47 min•Season 1Ep. 32
The idea of diversification is simple. Most investors understand that spreading your bets and avoiding overconcentration is a good idea. But the details behind how to do that can be much more complicated. In this episode, we take a deep dive into diversification. We look at the number of stocks a portfolio needs to be diversified, the importance of factor diversification, whether a portfolio with only stocks and bonds can be considered properly diversified and why rebalancing is an essential par...
Sep 25, 2023•52 min•Season 1Ep. 31
Many believe that direct indexing will be the next big trend in investing. While it used to be reserved for high-net-worth individuals, zero commissions and the ability to trade partial shares has now brought it to the masses. But does it make sense for investors to utilize the strategy? As is usually the case with all investing tools, the answer is "it depends". In this episode, Lee Boudouris of Sunpointe Investment joins us to look at how direct indexing strategies work and the pros and the co...
Sep 18, 2023•46 min•Season 1Ep. 30
The inflation experience of the last few years has been unlike anything many investors have ever seen before. And it has impacted all of our lives in many different ways. In this episode we try to put all of it in context. We discuss the causes of inflation, the challenges of measuring and predicting it, how different asset classes perform during high inflation and how we look at high inflation from both a portfolio construction and financial planning perspective. SEE LATEST EPISODES ...
Sep 11, 2023•43 min•Season 1Ep. 29
Warren Buffett just celebrated his 93rd birthday. And for most of his life, he has been demonstrating the power of disciplined investing and compounding to all of us. In this episode, we look at some of the most important lessons investors can learn from Buffett. We discuss his long-term focus, the simplicity of his communications approach, his optimism and flexibility and a lot more. SEE LATEST EPISODES https://www.validea.com/the-education-of-a-financial-planner-podcast...
Sep 04, 2023•39 min•Season 1Ep. 28
Many Americans rely on 401k plans as the primary source to fund their retirements. But many also don't understand the behind-the-scenes details that play a significant role in the outcomes they generate with these retirement plans. In this episode, we speak with Yale law professor Ian Ayres and UVA law professor Quinn Curtis to help us fill in these gaps and discuss how retirement plans can produce better outcomes for their participants. We look at the history of retirement plans and how they ha...
Aug 28, 2023•57 min•Season 1Ep. 27
Inherited IRAs can be very challenging for investors to understand. Not only are there a series of different rules that govern how money must be withdrawn from them in each unique situation, but those rules also changed substantially with the recent passage of the Secure Act. In this episode, we provide an overview of Inherited IRAs and what investors need to know about them. SEE LATEST EPISODES https://www.validea.com/the-education-of-a-financial-planner-podcast...
Aug 21, 2023•31 min•Season 1Ep. 26
In this episode Matt and Jack look at factor investing from both the perspective of someone who builds quantitative strategies and someone who utilizes them. They discuss what factors are, why they work, the different ways to combine them into multi-factor portfolios, the importance of matching an investment strategy with the end user's goals and risk tolerance, the important of human capital in portfolio construction and a lot more. SEE LATEST EPISODES https://www.validea.c...
Aug 14, 2023•51 min•Season 1Ep. 25
In this episode we tackle two topics that can impact investors as they seek to build long-term wealth. We first look at the idea of annual stock market forecasts. We talk about the challenges of predicting the market over the short-term, the importance of understanding base rates and how long-term investors should view forecasts. We also cover dollar cost averaging and the ways it can be both used and misused. We discuss why one use of dollar cost averaging is much more useful than the other and...
Aug 07, 2023•39 min•Season 1Ep. 24
In this episode, Ben Tuscai helps us work through many of the issues that young investors deal with navigating early in their careers. He has a unique perspective to offer given that he has recently dealt with the many similar challenges in his own life. We discuss planning for having children, the basics of insurance, general rules for emergency funds, why investing early is so important, emergency fund rules of thumb and a lot more. SEE LATEST EPISODES https://www.validea.co...
Jul 31, 2023•39 min•Season 1Ep. 23
Discipline is a word that everyone uses in investing. But saying it is much easier than living it. In this episode, Matt and Justin talk about the practical application of discipline in the real world. They revisit many of the topics from our previous episodes and discuss how discipline is a common thread among them. SEE LATEST EPISODES https://www.validea.com/the-education-of-a-financial-planner-podcast FIND OUT MORE ABOUT VALIDEA CAPITAL ht...
Jul 24, 2023•48 min•Season 1Ep. 22
Asset managers who build factor investing strategies can sometimes have a difficult time seeing how those strategies are used by financial planners who build portfolios with them. In this episode, we look at that issue from both sides as we ask Matt how he thinks about using factor portfolios for clients and we have an opportunity to answer some of his questions about how we think about building them. SEE LATEST EPISODES https://www.validea.com/the-education-of-a-financial-plan...
Jul 17, 2023•40 min•Season 1Ep. 21
In this episode, we take a high-level look at estate planning. We discuss why it is important, the major areas that are important to focus on and the tools available to use. We cover wills, living wills, powers of attorney and the other most important documents should be put in place, the importance of trusts, the estate tax, intergenerational planning and a lot more. SEE LATEST EPISODES https://www.validea.com/the-education-of-a-financial-planner-podcast FIND O...
Jul 10, 2023•53 min•Season 1Ep. 20
In early June, Matt attended the Epsilon Connect conference. The conference brought together a diverse group of people with a common goal of understanding how narratives and media bias affect our world and overcoming them to try to identify the truth and become better citizens and investors. In this episode, we discuss the biggest lessons from the conference and what they mean for all of us in the real world. SEE LATEST EPISODES https://www.validea.com/the-education-of-a-financia...
Jul 03, 2023•33 min•Season 1Ep. 19
In this episode, we begin a new quarterly series where we will discuss some of the biggest issues that investors are thinking about in the current market and try to put them in a long-term context. We discuss how investors should think about inflation and the potential for a future recession, how to interpret market valuations, the impact of AI stocks on the market and whether political and geopolitical events should play a role in an investment strategy. SEE LATEST EPISODES https...
Jun 26, 2023•44 min•Season 1Ep. 18
In this episode, we discuss the major lessons from our recent interview on our separate podcast Excess Returns with Northern Trust's Peter Mladina. Peter's work on goals-based planning, aligning goals with purposes, the importance of time and in many other areas has wide reaching implications for investors. But it also can be very complex. So we wanted to break it down in simpler terms than we were able to in the initial interview and discuss the most important lessons investors can take from it...
Jun 19, 2023•38 min•Season 1Ep. 17
Annuities have a bad reputation. From steak dinners to high fees to questionable salespeople, many investors are wary of using them. In this episode we look at how much of that reputation is earned and discuss the facts about annuities. We cover the different types of annuities, both the good and bad uses of them and things investors should be on the lookout for when evaluating annuity products. SEE LATEST EPISODES https://www.validea.com/the-education-of-a-financial-planner-podcast...
Jun 12, 2023•48 min•Season 1Ep. 16
