Personal Finance for Long-Term Investors - The Best Interest – Détails, épisodes et analyse

Referring back to his article, Fundamentals Of Retirement: Is the Summit “Good Enough?”, Jesse uses an experience hiking in the Adirondack Mountains as a metaphor to explore retirement preparedness. He recounts how being poorly equipped for a challenging hike can mirror the pitfalls of entering retirement without thorough planning - you might reach the summit, but the journey and destination may not be as enjoyable. Sharing the example of a couple, John and Eva, who are on the brink of retirement with substantial assets and a solid financial plan, Jesse raises critical questions about their investment strategy, withdrawal plans, and tax considerations, suggesting that while they are well-positioned, their retirement journey could be smoother with additional preparation.

For today’s interview, Jesse is joined by Rob Berger. Rob is a contributing editor for Forbes Advisor, host of the Financial Freedom Show, and author of “Retire Before Mom and Dad: The Simple Numbers Behind A Lifetime of Financial Freedom”. He founded Doughroller.net in 2007, a popular personal finance blog that attracted millions of visitors. With a background as a litigation attorney, Rob is now a prominent voice in retirement planning, providing valuable education through his YouTube channel and other platforms.

If you’re looking for quality retirement finance tips, no matter where you are on your journey, this is a great episode for you!

Key Takeaways:

• Preparing for retirement allows you to enjoy the journey and the destination (just like hiking!).

• Learn about key aspects of retirement planning, such as investment strategy, withdrawal plans, and tax considerations, and the need for comprehensive preparation.

• What is the “Retirement Income Death Spiral”? And how can we avoid it?

• How does inflation and stock market conditions really affect your retirement savings?

• How to take a conservative approach to Social Security and still have cautious optimism about the future.

• Why you should not focus on individual stocks when planning for retirement!

Key Timestamps:

(02:10) Jesse’s Monologue: Retirement Planning Fundamentals

(05:47) John and Eva's Retirement Scenario

(13:09) Interview with Rob Berger

(14:00) Understanding the Retirement Income Death Spiral

(15:55) Inflation and Retirement Planning

(23:40) Social Security Concerns and Assumptions

(25:48) The Future of Social Security and Political Solutions

(27:24) The Importance of Diversified Income in Retirement

(29:26) The Role of Cash and Bonds in Retirement Portfolios

(34:21) The Emotional Side of Market Volatility

(39:26) Common Financial Mistakes and How to Avoid Them

Key Topics Discussed:

The Best Interest, Jesse Cramer, Rochester New York, financial planner, financial advisor, wealth management, retirement planning, tax planning, personal finance, Rob Berger, Retire Before Mom and Dad, Social Security, retirement account mistakes

Mentions:

Website: https://robberger.com/ 

YouTube: https://www.youtube.com/@rob_berger 

LinkedIn: https://www.linkedin.com/in/bergerra/ 

Mentions: 

https://bestinterest.blog/reaching-the-summit-retirement/ 

Retire Before Mom and Dad: The Simple Numbers Behind A Lifetime of Financial Freedom

How Much Cash Should You Hold In Retirement?  

Should Cash Replace Bonds in a Portfolio?

How to Avoid the Retirement Income Death Spiral? 

More of The Best Interest:

Check out the Best Interest Blog at bestinterest.blog

Contact me at [email protected]

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

In today’s opening monologue, Jesse explores the concept of Sequence of Returns Risk, a crucial and often misunderstood threat to retirees, by illustrating how poor returns early in a retirement can severely impact long-term stability. He emphasizes the importance of diversification. Jesse then introduces the idea of path dependence, drawing parallels to the life of author Philip K. Dick, whose posthumous fame underscores the significance of a journey’s path, not just the journey’s outcome. Jesse connects this to investing, explaining how the sequence of returns can greatly affect an investor’s experience, despite the long-term average returns. Using "Sally the Investor" as an example, Jesse highlights the emotional and psychological challenges of navigating market volatility, reinforcing the need for resilience, understanding short-term unpredictability, and the benefits of diversification in long-term investing.

Tyler, the creator of Portfolio Charts, joins Jesse for the second half of the show. His site is known for its innovative financial tools and insights. Tyler, a fellow engineer with a passion for finance, blends technical expertise with creativity to clarify complex investing concepts. In their discussion, Tyler and Jesse explore critical retirement topics, including the safe withdrawal rate and sequence of returns risk.. Tyler introduces the concept of engineering tolerances for managing financial variability and discusses strategies like variable withdrawal rates. He explains the "flowing nature of withdrawal rate math," illustrating how safe withdrawal rates change with longer retirement periods. If you’re looking for some evidence based, long term thinking in your DIY financial life, then this is the episode for you!

Key Takeaways:

• How poor returns early on can negatively affect my retirement.

• What is “sequence of returns risk”? And how can I create a financially resilient situation for myself?

• Diversification into a variety of financial vehicles is key to the long term success of your portfolio.

• Path dependence, illustrated by Philip K. Dick's posthumous fame, emphasizes that the sequence of returns can greatly affect investment outcomes.

• What are “safe withdrawal rates”? And how can traditional average return calculations be misleading?

Key Timestamps:

(01:07) Jesse’s Monologue: Understanding Sequence of Returns Risk

(07:50) Mitigating Sequence of Returns Risk

(08:35) Path Dependence: Lessons from Philip K. Dick

(13:16) Sally's Ride: A Real Example of Path Dependence

(22:57) Investment in Knowledge: Path Dependence

(25:28) Understanding Safe Withdrawal Rates and Sequence of Returns Risk

(35:05) The Importance of Consistent Portfolios

(47:29) Tyler's Personal Finance Journey and Portfolio Charts

(51:01) Conclusion and Listener Engagement

Key Topics Discussed:

The Best Interest, Jesse Cramer, Rochester New York, financial planner, financial advisor, wealth management, retirement planning, tax planning, personal finance, Tyler from Portfolio Charts, path dependence, sequence of returns risk, safe withdrawal rates

Mentions:

Website: https://portfoliocharts.com/

Mentions:

https://portfoliocharts.com/charts/withdrawal-rates/#chart

https://portfoliocharts.com/2016/12/09/perpetual-withdrawal-rates-are-the-runway-to-a-long-retirement/

https://portfoliocharts.com/charts/retirement-spending/

https://portfoliocharts.com/portfolios/permanent-portfolio/

https://bestinterest.blog/path-dependence/

More of The Best Interest:

Check out the Best Interest Blog at bestinterest.blog

Contact me at [email protected]

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Jesse starts this episode with an engaging monologue: how exactly does The Best Interest generate revenue? Jesse answers this question and asks YOU for your help in ensuring The Best Interest continues as a terrific free financial resource. 

And then Justin Peters joins for the second half of the episode. Justin hosts The Struggle is Real, a podcast about adulting through your twenties. He’s also a co-founder of SimplePod Studios, which produces The Best Interest Podcast. In this episode, Justin and Jesse discuss, compare, and contrast their top five “Golden Rules” of personal finance. If you’re looking for an insightful, fun, and fast-paced conversation, this is the episode for you. 

Key Takeaways:

• How does The Best Interest make money?

• The intersection of Jesse’s professional life and The Best Interest

• Why you need to track your money!

• How gift cards trick you into spending more.

• The best investment is in yourself.

• Simple is better than complex (almost always).

• Why and how you should prepare for risk.

• Why you MUST automate your finances, as much as possible.

• Think long term, but don’t forget the present.

Mentions:

🌐 Website: https://simplepodstudios.com/ 

👉🏼 LinkedIn: https://www.linkedin.com/in/justinleepeters/ 

🎙️ Podcast: https://www.tsirpodcast.com/ 

🧠 The RRTTLLU Framework: https://bestinterest.blog/rrttllu/

More of The Best Interest:

Check out the Best Interest Blog at bestinterest.blog

Contact me at [email protected]

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Peter Lazaroff is the host of The Long Term Investor podcast and serves as the Chief Investment Officer at PlanCorp, a registered investment advisory in St. Louis. On today’s show, Jesse and Peter talk about the cognitive challenge of investing at all-time highs. It’s normal to feel like a crash might be coming; but it always feels that way, and you shouldn’t be worried about it. If you’re a long-term stock market investor and want to think a little more rationally or learn, this is the episode for you! 

Key Takeaways:

• Why you should expect corrections and bear markets,, but shouldn’t worry about them.

• Why the stock market keeps going up, regardless of the political party in power.

• Should you continue investing when the market is at an all-time high?

• Why you shouldn’t be worried about what’s happening in the short run. 

• How the evidence cuts both ways in investing, and how to simplify it.

• Why you should diversify into global stocks.

• How to prepare for a bear market.

Mentions:

🌐 Website: https://peterlazaroff.com/ 

👉🏼 LinkedIn: https://www.linkedin.com/in/peterlazaroff/ 

🎙️ The Long Term Investor Podcast: https://peterlazaroff.com/podcast 

📚 The Market Crash Is Coming! (…Eventually): https://bestinterest.blog/market-crash/ 

📚 “Boring” Money Topics That I Find Fun: https://bestinterest.blog/boring-money-topics-that-i-find-fun/ 

📚 Decades of Zero Return: https://bestinterest.blog/decades-of-zero-return/ 

More of The Best Interest:

Check out the Best Interest Blog at bestinterest.blog

Contact me at [email protected]

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Jared Dillian is a former Wall Street trader at Lehman Brothers, an author of 4 books, and daily writer a newsletter for financial professionals called The Daily Dirtnap. He’s sharp, witty, and brings great energy to today’s conversation. In this episode of The Best Interest Podcast, we learn about "The Allegory of the Sandwich" and how you can pay for the small stuff by thinking carefully about the big stuff! If you’re looking to hear unique takes on the FIRE movement and your daily latte, this is the episode for you!

Key Takeaways:

• How taxes can actually be interesting!

• The power of waiting (for decades)

• The foundational importance of cash flow

• Preparing for life via insurance

• How being smart about the big decisions will help you not sweat the small stuff.

• Why Jared doesn’t want to retire (ever).

• Why you shouldn’t make your own pizza.

• The Allegory of the Sandwich.

• Why the goal should be happiness, not a number.

• When is it worth it to make more money?

• How financial stress doesn’t necessarily depend on how much you make.

Mentions:

🌐 Website: https://www.jareddillianmoney.com/ 

👉🏼 LinkedIn: https://www.linkedin.com/in/jared-dillian-411aaa1b/ 

🎙️ BE SMART Podcast: https://www.jareddillianmoney.com/podcasts 

📚 No Worries: How to live a stress-free financial life by Jared Dillian: https://amzn.to/4atCxiz

📚 The FIRE Movement by Jared Dillian: https://wggtb.substack.com/p/the-fire-movement

📚 “Boring” Money Topics That I Find Fun by Jesse Cramer: https://bestinterest.blog/boring-money-topics-that-i-find-fun/ 

More of The Best Interest:

Check out the Best Interest Blog at bestinterest.blog

Contact me at [email protected]

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Paula Pant writes, podcasts, and speaks on financial independence, money management, and financial literacy. As the host of the Afford Anything Podcast, Paula has racked up more than 30 million downloads, ranking the show among the Top 50 Business Podcasts on Apple Podcasts. In this episode we learn how Paula realized she could travel the world on a limited income and eventually go on to financial independence through Afford Anything. If you’re looking for some growth mindset inspiration that will help you broaden your perspective, this is the episode for you!

Key Takeaways:

- How to move on (and grow) after financial mistakes.

- Why we need reminders and safety measures.

- How to afford anything with the power of priorities.

- How Paula traveled the world and never got a job again.

- What cap rate you should be looking for in a rental property.

- Why you should start 10X thinking, rather than penny pinching.

Mentions:

🌐 Afford Anything: https://affordanything.com/ 

👉🏼 LinkedIn: https://www.linkedin.com/in/paulapant/ 

🎙️ Afford Anything Podcast: https://affordanything.com/podcast/ 

📚 Are We In The Best Stock Market Period…Ever? https://bestinterest.blog/the-best-stock-market-period-ever/ 

📚 Should You Keep Investing At All-Time Highs? https://bestinterest.blog/investing-at-all-time-highs/ 

📚 The Incredible Power of 10X Thinking https://affordanything.com/any-benefit/ 

More of The Best Interest:

Check out the Best Interest Blog at bestinterest.blog

Contact me at [email protected]

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Brian Feroldi is a prolific creator in the financial education space, having written over 3000 articles for the Motley Fool, published a book, “Why Does The Stock Market Go Up?”, and actively posting to his YouTube Channel. In this episode, Brian breaks down his checklist for what makes a company worth investing in and provides some insight into what we should do before we jump into investing. If you’re interested in personal investing and some great guidelines to go along with it, this is the episode to listen to.

Key Takeaways:

• What is the index fund bubble? And what are some prominent thoughts on it?

• Should you be worried about an index fund bubble?

• How to get a sense of a company worth investing in.

• What criteria Brian uses when deciding what to invest in?

• Why you should “never interrupt your compounding unnecessarily.”

• Why you should take care of the boring before the exciting.

• Why you should keep your personal life and your investing life separate.

Mentions:

🌐 Brian Feroldi: https://www.brianferoldi.com/ 

🌐 Long Term Mindset: https://brianferoldi.substack.com/ 

👉🏼 LinkedIn: https://www.linkedin.com/in/brianferoldi/ 

📚 Checklist: https://brianferoldi.ck.page/checklist 

📚 Why Does The Stock Market Go Up? By Brian Feroldi: https://amzn.to/3Ij1Yax

🌐 Raoul Pal: https://www.youtube.com/@RaoulPalTJM 

🌐 Ben Felix: https://www.youtube.com/@BenFelixCSI  

🎙️ Odd Lots: Why The Rise of Passive Investing Might Be Distorting The Market: https://omny.fm/shows/odd-lots/why-the-rise-of-passive-investing-might-be-distort 

🎙️ Animal Spirits Podcast: https://awealthofcommonsense.com/podcast/ 

📚 The Motley Fool: https://www.fool.ca/ 

🌐 More on The Index Fund Bubble:  https://bestinterest.blog/index-fund-bubble/

More of The Best Interest:

Check out the Best Interest Blog at bestinterest.blog

Contact me at [email protected]

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Joe Saul-Sehy is one of the hosts of Stacking Benjamins, which is one of the most listened-to podcasts in the personal finance space. In this episode, we discuss how to find a good financial advisor, how to chase time (not money), and even how to decide what your top priority is in life. If you’re looking for an educational listen with plenty of laughs along the way, then this is the episode for you!

Key Takeaways:

• What you need to ask any financial advisor you’re considering working with. 

• How Joe uses storytelling to make money make sense.

• Who you need to surround yourself with to find success.

• Before you ask what the cost is, ask what you’re getting in return. 

• Why you need to chase time, not money. 

• How to put your goals in an MMA cage match to determine your priorities.

Mentions:

🌐 Website: https://joesaulsehy.com/ 

👉🏼 LinkedIn: https://www.linkedin.com/in/joe-saul-sehy-b3426b31/ 

🎙️ Stacking Benjamins: https://www.stackingbenjamins.com/ 

📚 Stacked: Your Super-Serious Guide to Modern Money Management by Joe Saul-Sehy and Emily Guy Birken https://www.amazon.ca/Stacked-Super-Serious-Guide-Modern-Management-ebook/dp/B092HGBFB5

📚 “I Wouldn’t Know Where to Start” – 16 Questions to Ask A Financial Advisor by Jesse Cramer https://bestinterest.blog/financial-advisor-questions/ 

📚 The 19 Questions to Ask Your Financial Adviser By 

Jason Zweig https://www.wsj.com/articles/the-19-questions-to-ask-your-financial-adviser-1503654013 

More of The Best Interest:

Check out the Best Interest Blog at bestinterest.blog

Contact me at [email protected]

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Today’s show features Doug Cunnington, one of the hosts of the financial independence podcast Mile High FI. Doug highlights how he took conservative risks along the way to FI, and walks us through his career journey to financial independence. We discuss misconceptions about the FIRE movement, how to prepare for financial emergencies, and why it’s never too late to start your own journey to financial goodness. This episode is a must listen!

Key Takeaways:

• What is risk, really? And how can you live with it?

• How to estimate risk in investing, and in yourself.

• The difference between volatility and risk.

• Why you need to do “financial fire drills.”

• How Doug set himself up for financial independence.

• What people get wrong about FI/RE.

• How to move on from a financial mess by looking forward.

• Stoicism and personal finance.

Mentions:

🌐 Website: https://bestinterest.blog/

👉🏼 LinkedIn: https://www.linkedin.com/in/doug-cunnington-pmp-a850435/ 

🎙️ The Mile High FI Podcast: https://milehighfi.com/ 

📚  Youtube Channel: https://www.youtube.com/@DougCunnington 

📚 Career Change – Is It A Risk?: https://bestinterest.blog/career-change-risk/ 

📚 Investing “Fire Drills”:  https://bestinterest.blog/foxes/ 

📚 Mr. Money Mustache: https://www.mrmoneymustache.com/ 

📚 Ryan Holiday: https://ryanholiday.net/ryan-holiday-books/

📚 Smart Passive Income: https://www.smartpassiveincome.com/shows/spi/ 

More of The Best Interest:

Check out the Best Interest Blog at bestinterest.blog

Contact me at [email protected]

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.

Diania Merriam is the founder of the EconoMe Conference, an exclusive gathering for the FIRE community (financial independence, retire early). Inspired by FIRE, Diania hit an impressive 60% savings rate and retired at 33. Of course, in retirement, you’ve got to stay active; what’s the point of financial freedom if you’ve got nothing to do? Diania joins Jesse today to discuss CoastFI, SlowFI, and the need to enjoy the journey. If you’re saving for retirement, but aren’t sure what to do with that retirement, this episode is for you!

Key Takeaways:

• What inspired Diania to walk the Camino de Santiago.

• How to disconnect for your career with purpose.

• Why you need a vision for what your retirement will look like.

• Don’t wait for financial independence to change your life.

• What are SlowFI and CoastFI?

• How to be an efficient saver, not a deprived saver.

• Why FI is better with friends.

Mentions:

🌐 EconoMe Conference: https://economeconference.com/ 

🎙️ Optimal Finance Daily: https://oldpodcast.com/optimal-finance-daily-podcast/ 

🎙️ ChooseFI Podcast: https://www.choosefi.com/listen/choose-fi-podcast/ 

📚 Robert Kiyosaki’s Awful Takes:  https://bestinterest.blog/wp-content/uploads/2021/09/Kiyosaki_2-scaled.jpeg

📚 The Fioneers: https://thefioneers.com/ 

📚 Blowhards, Broken Clocks, and Confirmation Bias: https://bestinterest.blog/confirmation-bias/ 

📚 Rich Wolf, Poor Sheep: https://bestinterest.blog/rich-wolf-poor-sheep/

More of The Best Interest:

Check out the Best Interest Blog at bestinterest.blog

Contact me at [email protected]

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.