The Rational Reminder Podcast – Détails, épisodes et analyse

In this episode of Rational Reminder, Ben Felix, Cameron Passmore, and Ben Wilson return with a classic AMA format—answering listener questions that dig deep into the behavioral and evidence-based foundations of sensible investing. From lump-sum investing to the psychology of advice, the trio blend data, humor, and clear thinking to demystify complex financial ideas. They discuss the behavioral logic behind dollar-cost averaging, why mutual funds might actually be more tax-efficient than ETFs in Canada, and whether technology could ever truly replace human financial advisors. Plus, they share their biggest investing mistakes (yes, Bitcoin makes an appearance), dissect the rise of "buffered" ETFs, and explain why chasing complexity usually costs investors more than it helps.

Key Points From This Episode:

(0:00:05) Introduction – The first episode featuring all three hosts together: Ben Felix, Cameron Passmore, and Ben Wilson.
(0:44) OneDigital update: expanding evidence-based advice across Canada with new PWL partners in Halifax.
(2:36) The mission in motion – bringing the "markets work and planning matters" philosophy to more Canadians.
(5:29) "Finding and funding a good life" – how PWL integrates wellness and happiness into financial planning.
(6:16) AMA Question 1: Lump-sum vs. dollar-cost averaging — why lump-sum wins 65% of the time.
(10:05) Base rates, behavioral regret, and the real role of an advisor.
(12:22) The 2020 PWL paper results and how behavioral hedging fits in.
(16:10) If dollar-cost averaging feels safer, maybe your portfolio is too aggressive.
(18:08) AMA Question 2: Advice for smaller portfolios — how technology, AI, and fee-only planners can fill the gap.
(21:01) Can AI really replace advisors? Cameron's Waymo analogy sparks debate.
(23:33) AMA Question 3: Mutual funds vs. ETFs — why in Canada, mutual funds may actually be more tax-efficient.
(30:00) The Capital Gains Refund Mechanism (CGRM) explained — and why it matters.
(34:31) Dimensional's Canadian funds vs. Vanguard ETFs — tax distribution data that surprises most investors.
(37:40) AMA Question 4: Are discount bonds priced for tax efficiency? The evidence says no—discount bonds still win.
(42:23) AMA Question 5: Biggest investment mistakes — from Bitcoin regrets to house-buying reflections.
(48:15) AMA Question 6: Buffered ETFs — comfort, complexity, and why simple portfolios outperform.
(53:45) Simplicity as a superpower — why "markets work" is still the most radical idea in finance.
(55:27) AMA Question 7: Updating the RR model portfolio — why there's no "optimal" portfolio and simplicity wins again.
(58:31) After show: Reviews, humor, and a reminder about "No Net Worth November."
(1:04:15) Life offline — Cameron's reflections on quitting social media and finding clarity.

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/RationalRemind
Rational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
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/

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this episode, Ben, Cameron, and Dan are joined by Ted Cadsby, former executive at CIBC, author of The Power of Index Funds, Closing the Mind Gap, and Hard to Be Human. Ted brings a rare combination of experience in both finance and cognitive psychology, having helped introduce index investing to Canada before turning his attention to how human thinking itself often misleads us. Ted shares inside stories from his time at CIBC—how he tried to make the bank an indexing leader in the late 1990s, the pushback he faced, and why he still believes so deeply in indexing today. Then, the conversation turns to human cognition: why our brains evolved for simplicity, certainty, and emotion, and how those traits can sabotage both our portfolios and our peace of mind. From "greedy reductionism" and "certainty addiction" to emotional overreaction and competing selves, Ted unpacks the five cognitive design flaws that make it hard to be human—and how metacognition and mindfulness can help us overcome them.

Key Points From This Episode:

(0:04) Introduction to the Rational Reminder Podcast and hosts.

(0:18) Cameron's story about rediscovering The Power of Index Funds and reconnecting with Ted Cadsby.

(2:21) How Ted brought index investing to CIBC and tried to make the bank a leader in indexing.

(5:58) Why assessing active managers taught Ted about randomness, noise, and the illusion of skill.

(8:42) The moment Ted "saw the light" on indexing—and why randomness, not market efficiency, is the real obstacle for active managers.

(12:54) How Ted tried to implement index investing at CIBC and the cultural resistance he faced.

(15:05) The goals of The Power of Index Funds (1999) and how he tied indexing to human behavior.

(18:49) How his indexing push created internal conflict at CIBC and ultimately led to his departure.

(23:23) The influence of John Bogle and Vanguard on Ted's mission to bring indexing to Canada.

(26:59) Why he's still passionate about indexing, and what worries him about private equity.

(31:44) How human cognition and philosophy led him from finance to exploring how we think.

(34:46) The "Big Five" cognitive design flaws that shape human decision-making:

 1. Greedy reductionism – our urge to oversimplify complex systems.

 2. Certainty addiction – craving the feeling of knowing, even when we're wrong.

 3. Emotional hostage-taking – overreacting and ruminating.

 4. Competing selves – inner conflicts between present and future selves.

 5. Misguided search for meaning – overextending our need for purpose.

(44:11) Why modern life amplifies these flaws and how System 1 (automatic) and System 2 (deliberate) thinking play into it.

(48:00) The human superpower: metacognition—our ability to think about thinking.

(49:57) How mindfulness and a "meditative stance" help us use metacognition daily.

(53:57) Why knowing your biases isn't enough—emotional regulation is the real challenge.

(56:27) How to recognize triggers for deeper reflection and System 2 thinking.

(1:00:34) How systems thinking and better questions can combat our reductionist tendencies.

(1:05:57) Why our addiction to certainty fuels overconfidence and poor decisions.

(1:08:43) How humility, probabilistic thinking, and skepticism can make us wiser investors and humans.

(1:11:39) When to listen to emotions—and when to treat them as cognitive red flags.

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/RationalRemind
Rational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
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 — https://pwlcapital.com/our-team/

Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310

Cameron Passmore — https://pwlcapital.com/our-team/

Cameron on X — https://x.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

What if choosing your asset allocation was as personal as your life story—and as consequential as your retirement? In this episode, we are joined by PWL Capital's Louai Bibi and Ben Wilson for a deep dive into how advisors guide clients through the most important portfolio decision they'll ever make. Louai walks us through the research, psychology, and planning frameworks behind determining the right stock/bond mix, while Ben shares real-world insights from client cases where risk tolerance, pensions, and life events shifted the balance. We explore how Monte Carlo simulations stress-test financial plans, why spouses often disagree on risk, and how pensions act as "bond-like assets" in the bigger picture. Ben Wilson also takes us behind the scenes of PWL's post-OneDigital acquisition journey, revealing why advisors are drawn to join the firm, how succession planning shapes their choices, and why a unified evidence-based philosophy matters in Canada's wealth management landscape. The episode wraps with a fascinating look at surprising stock return outliers—like Build-A-Bear outperforming Nvidia—and what that teaches us about the futility of stock-picking versus the power of diversification.

Key Points From This Episode:

(0:01:00) Introducing PWL's Louai Bibi and Ben Wilson—today's topics: asset allocation, advisor succession, and surprising stock return data.

(0:03:35) Louai explains the asset allocation decision: balancing stocks vs. bonds and why it's the biggest choice investors make.

(0:05:12) Why asset allocation matters: inflation erodes purchasing power, and stocks/bonds help investors keep up or outpace it.

(0:06:50) Historical lessons: $1 invested since 1970—outcomes for bonds, balanced portfolios, and 100% equities.

(0:08:35) The risks of downturns: 2008 as a case study in how stocks vs. bonds shape losses and recovery times.

(0:11:39) Risk tolerance questionnaires: how PWL uses surveys to gauge willingness vs. capacity to take risk.

(0:13:45) When spouses disagree on risk tolerance—balancing perspectives and sometimes splitting portfolios.

(0:16:42) Risk capacity: pensions, insurance, income stability, and emergency funds all shape asset allocation.

(0:20:08) Real client cases: retirees discovering they don't need as much stock exposure, or elderly clients increasing equity later in life.

(0:22:47) How often do clients change asset allocations? Rarely—except for life events like retirement.

(0:27:10) Why Monte Carlo simulations are essential for stress-testing financial plans beyond straight-line projections.

(0:30:20) PWL's "asset allocation email": summarizing risks, pensions, debt, emergency funds, and personalized tradeoffs.

(0:34:02) Pensions as "bond-like assets"—how they increase ability but decrease need to take risk.

(0:37:11) Closing thoughts from Louai: think in dollar terms, investing is a marathon, and build confidence gradually.

(0:39:32) Education shifts clients' choices: some reduce risk after learning the realities of volatility, others increase equity exposure with context.

(0:43:10) Advisor "fixed effects": research shows the advisor's own perspective strongly shapes client allocations.

(0:45:39) Transition to Ben Wilson: what motivates advisors to join PWL post-OneDigital acquisition.

(0:47:52) Reputation and content: how Rational Reminder, YouTube, blogs, and Canadian Couch Potato attract advisors.

(0:50:34) PWL's unified philosophy: evidence-based, passive investing with a planning-first approach.

(0:56:30) Key motivators for advisors: reducing admin burdens, escaping "aggregator" models, and building integrated team structures.

(1:00:15) Succession planning: why advisors seek peace of mind for their clients and teams by partnering with PWL.

(1:03:04) Ben Felix on why these conversations are exciting and why advisors should reach out early.

(1:04:54) After show: Nvidia's insane 70% annualized 5-year return—and why lesser-known names like Build-A-Bear, Celestica, and Dillard's did even better.

(1:06:33) Celestica's role in DFA funds and how it helped them keep pace with Shopify-driven indexes.

(1:09:25) Why broad diversification captures unexpected winners (Build-A-Bear included) without speculation.

(1:10:45) Active advisors pitch "winner-picking"—but history shows how impossible that really is.

(1:12:16) Reviews and wrap-up.

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/RationalRemind
Rational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
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 — https://pwlcapital.com/our-team/

Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this episode, we welcome back the esteemed Professor Scott Cederburg, Associate Professor of Finance at the University of Arizona. In this highly anticipated episode, Professor Cederburg revisits the show to delve into his groundbreaking paper on life cycle asset allocation. Professor Cederburg's latest research presents findings that disrupt traditional thinking in the field, prompting a deep dive into the implications of these new insights. In our conversation, we unpack the findings from the paper and how they challenge established norms in retirement planning and asset allocation. We discuss what the new paper adds to the discourse, his approach and methodology, the different assessment criteria used, and the main findings from the paper. We also delve into the different asset allocation strategies assessed, which strategy performed best, aspects that would influence the various strategies, and how to invest for the long term safely. We explore the nuances of stock versus bond returns and the hidden benefits of international diversification. Gain profound insights into the significance of social security, inflation-protected bonds, target date funds, and the repercussions of an all-equity strategy. Comparing his latest paper with prior research on withdrawal rates, Professor Cederburg highlights surprising aspects of the results and provides invaluable takeaways for financial advisors from these cutting-edge findings. Discover how this pioneering work challenges conventional wisdom, reshaping the landscape of retirement planning and investment strategies in this illuminating conversation with Professor Scott Cederburg.

Key Points From This Episode:

• Background about Professor Cederburg and episode overview. (0:00:00)

• How his new paper challenges the central tenets in life cycle investing. (0:03:38)

• What sets his method apart regarding its ability to challenge the status quo. (0:06:56)

• How he characterizes the life cycle of the household modelled in his study. (0:09:40)

• The data set used and his approach for sampling and analyzing the data. (0:12:09)

• Retirement outcomes used to evaluate life cycle asset allocation strategies. (0:13:56)

• Asset allocation strategies investigated in the paper and which one performs best. (0:15:49)

• Left tail outcomes of all-stocks strategy, stock returns vs bond returns, and the benefits of international diversification. (0:22:52)

• Learn about the importance of social security in the model and the nuances of inflation-protected bonds. (0:28:29)

• Investing in target date funds and the downsides of an all-equity strategy. (0:32:05)

• Hear about the impact of large intermediate losses on retirement savings. (0:35:33)

• Unpacking the lag time on returns between stocks and bonds. (0:40:01)

• Exploring investing behaviour and reasons for underperformance. (0:42:15)

• The importance of return dependencies and what happens to the results if monthly returns are used. (0:45:03)

• Navigating and modelling flaws and common aspects overlooked in financial analyses. (0:49:29)

• Dissecting retiree adherence to traditional approaches to long-term investing. (0:50:36)

• Home country bias and its influence on portfolio allocation. (0:52:12)

• Currency effect and domestic stock hedging as a strategy. (0:55:32)

• Comparing the findings from his latest paper with those from his paper on withdrawal rates. (1:00:24)

• Aspects of the results that surprised him and takeaways for financial advisors from the latest research findings. (1:02:07)

Links From Today's Episode:

Professor Scott Cederburg — https://eller.arizona.edu/people/scott-cederburg

Professor Scott Cederburg on LinkedIn — https://www.linkedin.com/in/scott-cederburg/

Professor Scott Cederburg on Google Scholar — https://scholar.google.com/citations/

Eller College of Management — https://eller.arizona.edu/

Episode 224 — https://rationalreminder.ca/podcast/224

Episode 250 — https://rationalreminder.ca/podcast/250

'Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice' — https://dx.doi.org/10.2139/ssrn.4590406

'The Safe Withdrawal Rate: Evidence from a Broad Sample of Developed Markets' — https://dx.doi.org/10.2139/ssrn.4227132

International Diversification Works (Eventually) — https://doi.org/10.2469/faj.v67.n3.1

'Stocks for the long run? Evidence from a broad sample of developed markets' — https://www.sciencedirect.com/science/article/

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

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Today's episode features a series of in-depth segments, and includes a visit from our two favourite Marks; Mark Soth (aka The Loonie Doctor) and Mark McGrath! To kick things off we break down volatility and investor behaviour by looking back at our conversation with Scott Cederburg and what his research demonstrates about the topic. We then hear from Mark Soth about the project that he and Ben have been working on; the soon-to-be-released Money Scope podcast. Find out what you can expect from their financial curriculum, like the topics they'll be covering and how the structure of their episodes is specifically designed to educate. Next up we have our Mark to Market Segment, with Mark McGrath providing a detailed overview of everything you need to know about physicians incorporating. We then cover a recap of our conversation with Gerard O'Reilly, before sharing our thoughts on why this episode is worth multiple listens. Following that you'll hear Cameron share his review of Brave New Work: Are You Ready to Reinvent Your Organization? by Aaron Dignan, along with his key takeaways from the book. Finally, in our after-show section, we discuss some of the fantastic guests we have coming up, our recommended reading to prepare for those episodes, community updates, plus a few other goodies!

Key Points From This Episode:

• The biggest takeaways on volatility and investor behaviour from Scott Cederburg's research; unpacking performance chasing, return gaps, fund expense ratios, and more. (0:02:06)

• An overview of the project that Mark Soth and Ben have been working on, the Money Scope podcast; why they started it, what it covers, and who it's for. (0:14:13)

• Details on Money Scope's format and the supplementary case study episodes. (0:19:12)

• Our Mark to Market segment on physicians incorporating; a rundown of the complexities, common misconceptions, and benefits to be aware of. (0:26:32)

• How much you should be retaining in a corporation to make it worthwhile. (0:33:30)

• A look back at our conversation with Gerard O'Reilly and why this episode is a must-listen. (0:37:58)

• Cameron's review of Brave New Work: Are You Ready to Reinvent Your Organization? by Aaron Dignan, along with his top takeaways. (0:40:10)

• Our after-show section; guests to look forward to, recommended reading, community highlights, and more. (0:46:23)

Links From Today's Episode:

Episode 198: Gerard O'Reilly — https://rationalreminder.ca/podcast/198

Episode 224: Scott Cederburg — https://rationalreminder.ca/podcast/224

Episode 268: Itzhak Ben-David — https://rationalreminder.ca/podcast/268

'The Folly of Hiring Winners and Firing Losers' — https://www.cannonfinancial.com/uploads/main/The_Folly_of_Hiring_Winners_and_Firing_Losers1725.pdf

The Money Scope Podcast — https://moneyscope.ca/

The Money Scope Podcast on YouTube — https://www.youtube.com/@moneyscopepod

Brave New Work: Are You Ready to Reinvent Your Organization? — https://www.amazon.com/Brave-New-Work-Reinvent-Organization/dp/0525536205

Aaron Dignan — http://www.aarondignan.com/

The Ready — https://www.theready.com/

The Fund: Ray Dalio, Bridgewater Associates, and the Unraveling of a Wall Street Legend — https://www.amazon.com/Fund-Bridgewater-Associates-Unraveling-Street/dp/1250276934

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

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Dr. Mark Soth (The Loonie Doctor) — https://www.looniedoctor.ca/

Dr. Mark on X — https://twitter.com/LoonieDoctor

Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/

Mark McGrath on X — https://twitter.com/MarkMcGrathCFP

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

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Today, we take a closer look at asset allocation through an empirical lens, by drawing on the work and data of Scott Cederburg and his new article 'Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice'. We unpack what the research tells us about how to establish the optimal mix of assets in a portfolio, the challenges of making the right decisions when you have volatile assets, and why it's critical that you understand your level of risk tolerance. Next, in our Mark to Market segment, we unpack different types of insurance — like life, disability, and critical illness — and when you should own them personally versus making them the property of your corporation. We then review Justin King's new book The Retirement Café Handbook: Nine Accelerators for a Successful Retirement before sitting down with the author himself to discuss the content of his latest work and his long-held interest in helping others optimize for retirement. Tuning in you'll hear Justin share his thoughts on the role of choice, vitality, and joy when it comes to having a successful retirement, the nine accelerators he lays out in his book, and how to become the hero of your retirement story. In our final section, we wrap things up with some wonderful reviews from listeners and our book recommendations. To hear all of the captivating takeaways from today's episode, be sure to tune in!

Key Points From This Episode:

• Breaking down asset allocation through an empirical lens; finding the right mix of assets in a portfolio, common challenges, and measuring risk. (0:02:12)
• The role of government pensions when considering asset allocation over one's life. (0:09:10)
• Investigating whether volatility is risk; modeling the lifecycle of an investor and determining if (and when) it makes sense to shift into bonds over time. (0:11:27)
• Analyzing the data, modelling, and findings from the paper, 'Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice'. (0:14:02)
• The challenges of behaving well with volatile assets; advice on how to assess your risk tolerance, your ability to endure short-term declines, and more. (0:23:10)
• Our Mark to Market segment: unpacking different types of insurance and when you should own them personally or inside your corporation. (0:29:50)
• A quick look back at our conversation with Dr. Anna Lembke on the subject of dopamine. (0:37:58)
• This week's book review: Justin King's The Retirement Café Handbook: Nine Accelerators for a Successful Retirement. (0:39:33)
• Our conversation with Justin King on how to retire successfully. (0:41:19)
• Unpacking the nine accelerators in Justin's book and where they come from. (0:45:44)
• How to get the most out of The Retirement Café Handbook. (0:55:47)
• Sharing some of the wonderful reviews we've gotten recently, plus our book recommendations. (0:59:28)

Links From Today's Episode:

'Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice' — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4590406

Episode 224: Prof. Scott Cederburg — https://rationalreminder.ca/podcast/224
Episode 169: Prof. John Cochrane — https://rationalreminder.ca/podcast/169
Episode 250: Prof. John Y. Campbell — https://rationalreminder.ca/podcast/250
Episode 278: Juhani Linnainmaa: Financial Advisors, and the Cross Section of Returns —  https://rationalreminder.ca/podcast/278

Episode 177: Dr. Anna Lembke — https://rationalreminder.ca/podcast/177

Anna Lembke — https://www.annalembke.com/
Dopamine Nation: Finding Balance in the Age of Indulgence — https://www.annalembke.com/dopamine-nation
Justin King on LinkedIn — https://www.linkedin.com/in/justinking-retirement-planner-ifa/

Justin King on X — https://twitter.com/JustinKingCFP
The Retirement Café — https://www.theretirementcafe.co.uk/

The Retirement Café Podcast — https://www.theretirementcafe.co.uk/podcast

The Retirement Café Handbook: Nine Accelerators for a Successful Retirement — https://www.amazon.co.uk/Retirement-Cafe-Handbook-Accelerators-Successful/dp/1739410300

Notes from Listener PDF —

Episode 30: Larry Swedroe — https://rationalreminder.ca/podcast/tag/Larry+Swedroe

Strangers in Paradise: How Families Adapt to Wealth Across Generations — https://www.amazon.com/Strangers-Paradise-Families-Wealth-Generations/dp/0615894356

Wealth 3.0: The Future of Family Wealth Advising — https://www.amazon.com/Wealth-3-0-Future-Family-Advising/dp/B0C9SHFSGM

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

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

In this episode, we delve into the complexity of navigating life's challenges, taking risks, fostering self-confidence, and honing problem-solving skills. Joining us is Shane Parrish, a best-selling author, to help us unpack this nuanced topic through the lens of his new book, Clear Thinking. His latest publication is a roadmap for recognizing pivotal moments for clear thought and exposing how our defaults often drive us. He aims to empower readers to intervene, harness reasoning, and apply cognitive tools for better decision-making. Shane is also the founder of the website blog Farnam Street and the venture capitalist firm Syrus Partners. In our conversation, we explore the steps to becoming a clear thinker and how the mantra can be applied to our daily lives. We discuss how ordinary moments influence our decisions, the definition of true goals, and how to build self-confidence. We also unpack the barriers that hinder clear thinking, the difference between playing on hard and playing on easy, the value of continual growth, and much more. Tune in and discover how to master risk, confidence, and problem-solving with Shane Parrish!

Key Points From This Episode:

• Background about Shane Parrish and his new best-selling book, Clear Thinking. (0:00:19)
• The significance of ordinary moments and the benefits of becoming a clear thinker. (0:03:19)
• Examples of how ordinary moments can multiply bigger decisions to zero. (0:06:32)
• Defining true goals, and why regularly reassessing them ensures personal growth. (0:08:20)
• Clear thinking's role in reaching goals and how it helps evaluate your objectives. (0:11:07)
• Discover the defaults that hinder clear thinking and strategies to overcome them. (0:12:19)
• Best practices as a decision-making tool and the value of unconventional paths. (0:25:22)
• Explore the role of self-confidence in clear thinking and taking the first step. (0:26:51)
• Learn about the importance of good habits in developing clear thinking. (0:33:03)
• Making your own rules, sticking to them, and how they can help in social situations. (0:36:23)
• Characterizing the problem before starting the problem-solving process. (0:44:17)
• Shane shares why he values time over money. (0:48:52)
• Steps for curating your mental environment and Shane's definition of success. (0:53:24)

Links From Today's Episode:

Farnam Street — https://fs.blog/

Shane Parrish on LinkedIn — https://www.linkedin.com/in/shane-parrish-050a2183/

Shane Parrish on X — https://twitter.com/ShaneAParrish

Syrus Partners — https://www.syruspartners.com/

Clear Thinking — https://www.amazon.com/Clear-Thinking-Turning-Ordinary-Extraordinary/dp/0593086112

The Knowledge Project Podcast — https://fs.blog/knowledge-project-podcast/

Episode 19: Shane Parrish — https://rationalreminder.ca/podcast/19

Episode 143: Ashley Whillans — https://rationalreminder.ca/podcast/143

The Great Mental Models — https://www.amazon.com/dp/B086DQQ278

30 Lessons for Living — https://www.amazon.com/30-Lessons-Living-Advice-Americans/dp/0452298482

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

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

In this episode, we start by learning about the complex relationship between recessions and stock returns before welcoming Huston Loke and Jordan Solway from the Financial Services Regulatory Authority (FSRA) to discuss protecting consumers in the financial investment space. Huston is the Executive Vice President of Market Conduct, and Jordan is the Executive Vice President of Legal and Enforcement at FSRA. The FSRA supervises insurance companies, mortgage brokers, credit unions, pensions and other non-securities areas of the financial services sector. We discuss the objectives of the FSRA, their approach to protecting consumers, enforcement strategies, upcoming regulations, and more. Then, we welcome back Mark McGrath to learn about the Passive Investment Grind (PIG) concept for this week's Mark to Market segment, and we take a look back at a previous episode with Ted Seides of Capital Allocators. Finally, we are joined by author Tim Hale to discuss the new edition of his book Smarter Investing before closing off with our usual after-show roundup. Tune in now!

Key Points From This Episode:

(0:03:22) The relationship between recessions and stock returns, the definition of a technical recession, and the role of media in shaping perceptions.

(0:09:33) Why bad economic conditions don't necessarily warrant changes to investment strategies and why attempts to time the market based on recession news should be avoided. 

(0:13:42) Introducing Huston Loke and Jordan Solway and background about the Financial Services Regulatory Authority of Ontario (FSRA). 

(0:15:34) Objectives of the FSRA and the principle of putting the client's interest first. 

(0:18:55) What aspects of financial advisory services FSRA regard as the most important. 

(0:20:30) Unpacking the "Take-All-Comers" rule in Ontario and how it protects consumers. 

(0:25:32) How successful the title protection rule has been in Ontario and how it differentiates between the title of financial advisor and financial planner. 

(0:29:21) Concerns about the rollout of the title protection rule and the disparity across various designations. 

(0:33:26) Advice for identifying a suitable financial advisor or planner and how the FSRA is helping cross-check credentials. 

(0:37:19) FSRA's findings in a review of tiered recruitment model life insurance MGAs and the enforcement action taken. 

 (0:44:47) Insights into commission-based compensation structures for financial products and upcoming commission disclosure rules.

(0:49:09) Additional steps consumers can take to avoid bad financial advice and services. 

(0:50:49) Recommendations for budding financial planners or advisors to ensure they get the correct training. 

(0:53:23) Discover the infinite banking concept and what future initiatives Huston and Jordan are most excited about. 

(0:59:35) Mark explains the passive investment grind concept in our Mark to Market segment. 

(1:09:21) Recapping essential takeaways from a previous episode with Ted Seides.

(1:12:02) Tim Hale discusses his book Smarter Investing, his motivation for writing it, his intended audience, and its main takeaways. 

(1:20:09) How the financial landscape has changed since the first edition of his book and his shift toward systematic investing. 

(1:25:25) Tim shares what he thinks are the biggest mistakes investors make and behavioural biases that influence investors' decisions. 

(1:27:58) Final words of wisdom Tim has for listeners and how his approach applies to markets outside of the UK. 

(1:29:45) Aftershow roundup, listener reviews, book recommendations, and more! 

Join Our Live Events:

Paying it Forward to Yourself: Compensation strategies for Canadian Business Owners - https://us06web.zoom.us/webinar/register/1517000820593/WN_35_OSP3XT9Gabu6KjIT4Tg

 Investing 101: Financial Literacy Month Webinar - https://us06web.zoom.us/webinar/register/2417000820935/WN_snfu-ZhzQKeB6CZSw1yHuA

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/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://twitter.com/RationalRemind

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Paying It Forward to Yourself (Webinar) — https://us06web.zoom.us/webinar/register/4416996396442/WN_35_OSP3XT9Gabu6KjIT4Tg

Investing 101 (Webinar) — https://us06web.zoom.us/webinar/register/2317000628845/WN_snfu-ZhzQKeB6CZSw1yHuA#/registration

'Should my investment strategy change during a recession?' — https://www.theglobeandmail.com/investing/personal-finance/household-finances/article-investing-strategy-during-a-recession/

C.D. Howe Institute Business Cycle Council — https://www.cdhowe.org/council/business-cycle-council

Episode 171: Prof. Campbell R. Harvey — https://rationalreminder.ca/podcast/171

'Conditional Skewness in Asset Pricing Tests' — https://www.jstor.org/stable/222452

'… and the Cross-Section of Expected Returns' — https://faculty.fuqua.duke.edu/~charvey/Research/Published_Papers/P118_and_the_cross.PDF 

Huston Loke — https://www.fsrao.ca/about-fsra/leadership/huston-loke

Huston Loke on LinkedIn — https://www.linkedin.com/in/hloke/

Jordan Solway — https://www.fsrao.ca/about-fsra/leadership/jordan-solway

Jordan Solway on LinkedIn — https://www.linkedin.com/in/jordan-solway-4a261314/

Financial Services Regulatory Authority of Ontario (FSRA) — https://www.fsrao.ca/

Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/

Episode 61: Ted Seides — https://rationalreminder.ca/podcast/61

Ted Seides on LinkedIn — https://www.linkedin.com/in/tedseides

Ted Seides on Twitter — https://twitter.com/tseides

Capital Allocators — https://www.capitalallocators.com/

Tim Hale on LinkedIn — https://www.linkedin.com/in/tim-hale-4b67ba24/

Life on Our Planet — https://www.imdb.com/title/tt23181388/

The Behavioral Divide Podcast — https://podcasts.apple.com/us/podcast/the-behavioral-divide-with-hal-hershfield/id1713168854

Episode 278: Juhani Linnainmaa — https://rationalreminder.ca/podcast/278

Books From Today's Episode:

 Smarter Investing — https://www.amazon.com/Smarter-Investing-Simpler-Decisions-Results/dp/0273722077

Albion Strategic Consulting — https://albionstrategic.com/

Winning the Loser's Game – https://www.amazon.com/Winning-Losers-Game-Seventh-Strategies/dp/1259838048

Tightwads and Spendthrifts — https://www.amazon.com/Tightwads-Spendthrifts-Navigating-Minefield-Relationships/dp/1250280079

Clear Thinking — https://www.amazon.com/Clear-Thinking-Turning-Ordinary-Extraordinary/dp/0593086112

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
Same as Ever — https://www.amazon.com/Same-Ever-Guide-Never-Changes/dp/0593332709/

If you dive deep into financial advisor fixed effects, you'll begin to understand that an advisor's own portfolio has a bigger impact on the portfolios of their clients than the characteristics of the clients themselves. To help us make sense of this and to further explain financial values and the cross-section of returns, we are joined by the influential and notorious Professor of Finance, Juhani Linnainmaa. Our conversation begins with a comprehensive analysis of financial values, including a comparison between the trading patterns of advisors and those of their clients, a disquisition of misguided beliefs, an examination of client characteristics, and the ins and outs of portfolio variation and customizations. Canada recently adopted regulations from the Mutual Fund Dealers Association (MFDA), and we discuss how this has affected the use of financial advice in the country before comparing the benefit of increased equity share to the cost of advice, what hiring a new advisor before a financial crisis may mean for clients, and the role of regulation in the industry. We end with the cross-section of returns by examining accounting-based anomalies pre-1963, how profitability and investment relate to data mining, why a financial firm would switch between growth and value, and finally, Professor Juhani Linnainmaa's definition of success.  

Key Points From This Episode:

(0:00:42) A very warm welcome to the influential Professor of Finance, Juhani Linnainmaa. 

(0:03:52) Comparing the trading patterns of advisors to those of their clients. 

(0:08:45) How regulators can go about addressing misguided beliefs. 

(0:11:08) Client characteristics that advisors base portfolio customizations on. 

(0:13:22) Whether the variation in a client's portfolio can be explained by their characteristics. 

(0:14:49) Explaining the remaining variation in portfolios. 

(0:19:38) Other reasons for the high cost of advising, aside from portfolio customization. 

(0:22:03) How the adoption of the MFDA affected the use of financial advice in Canada.

(0:26:03)  Comparing the benefit of increased equity share to the cost of advice.

(0:31:45) How getting a new advisor before the financial crisis affects ongoing investments.

(0:35:46) The role of regulation.

(0:37:47) Getting into the cross-section of returns with accounting-based anomalies pre-'63.

(0:40:51) Weather profitability and investment are data-mined factors.

(0:44:05) The optimal X-anti mix of factors in a portfolio.

(0:46:56) The mechanisms that cause firms to move between growth and value.

(0:56:31) Professor Juhani's definition of success.

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

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

Benjamin on X — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on X — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Juhani Linnainmaa — http://jlinnainmaa.com/ 

Juhani Linnainmaa on LinkedIn — https://www.linkedin.com/in/juhani-linnainmaa-832134194/ 

Juhani Linnainmaa on Facebook — https://www.facebook.com/juhani.linnainmaa/ 

Tuck School of Business — https://www.tuck.dartmouth.edu/  

Kepos Capital — https://www.keposcapital.com/ 

Chicago Booth School of Business — https://www.chicagobooth.edu/ 

National Bureau of Economic Research — https://www.nber.org/ 

UCLA Anderson School of Management — https://www.anderson.ucla.edu/ 

Aalto University — https://www.aalto.fi/en  

Mutual Fund Dealers Association — https://mfda.ca/  

Michael Roberts on LinkedIn — https://www.linkedin.com/in/prof-michael-r-roberts/