The Rational Reminder Podcast
Benjamin Felix & Cameron Passmore
Welcome to "The Rational Reminder Podcast," a weekly exploration into the nuanced world of personal finance and investment, hosted by Benjamin Felix and Cameron Passmore. This podcast offers a deep dive into the principles of sound investing and wealth management, blending expert knowledge with practical advice. Each episode serves as a thoughtful guide through the complexities of portfolio management, behavioral finance, and financial theory, making sophisticated concepts accessible to both novice and seasoned investors. Listeners can look forward to a balanced approach to finance, as Benjamin and Cameron discuss the latest market trends, answer listener questions, and interview leading economists and investors. The show not only enriches your understanding of financial strategies but also equips you with the tools to make smarter financial decisions. Whether you’re looking to optimize your investment portfolio or simply gain a better grasp of the economic forces at play, "The Rational Reminder Podcast" is your go-to resource for all things finance.
Episodes
Episode 309 - Are Robo-Advisors Passive Investors?
In Episode 309, hosts Benjamin Felix and Cameron Passmore, along with their colleague Mark McGrath, delve into the nuanced world of robo-advisors and their alignment with passive investing principles. The episode kicks off with a discussion on the general perception of robo-advisors as passive investment vehicles, primarily designed to offer easy access to low-cost index funds. However, the hosts uncover that the reality is more complex, as robo-advisors like Wealthsimple and Wealthfront have exhibited varying degrees of active management in their strategies. This includes adjusting asset allocations and experimenting with different financial products in response to market changes, which has led to significant disparities in performance among different robo-advisors. The discussion also covers the broader implications of these practices on investor expectations and the evolving nature of automated investment services.
Episode 208 - Dan Bortolotti: The Canadian Couch Potato
In this episode, Benjamin Felix and Cameron Passmore engage in a detailed discussion with Dan Bortolotti, who is renowned for his "Canadian Couch Potato" investment blog and podcast. They explore Dan's journey from a journalist to a financial advisor and the evolution of his investment philosophy, particularly his emphasis on low-cost ETF investing. The conversation covers the fundamentals of index investing, the importance of financial advice, and the shift in the availability and use of index funds in Canada. They also discuss the practical aspects of maintaining a simple, diversified investment portfolio and the challenges DIY investors face.
Episode 307 - How Much Life Insurance Do You Need?
In this episode, Benjamin Felix and Cameron Passmore discuss the nuances of determining adequate life insurance coverage. They begin by debunking common methods that lead to either underinsurance or overinsurance, emphasizing a strategic approach over random estimations often suggested by insurance agents. They also delve into using online calculators and personal financial assessments to determine the appropriate amount of life insurance. Additionally, the hosts explore various life insurance configurations, like term life and joint policies, and the financial logic behind each option. The episode is enriched by practical examples and a game segment related to financial decisions, adding a layer of interactivity and engagement.
Episode 306 - Wei Dai: Fighting for Every Basis Point
In this engaging episode of the Rational Reminder podcast, hosts Benjamin Felix and Cameron Passmore engage with Wei Dai in a detailed conversation about investment strategies and factor investing. Dai elaborates on Dimensional's approach to equity strategies, which includes targeting size, value, and profitability premiums. She also discusses the nuances of premium timing, the effectiveness of diversification, and the theoretical underpinnings of investment philosophy. Key topics such as the implications of currency hedging and the complexity of timing market premiums are explored, providing listeners with a deep dive into advanced financial strategies and their practical applications.
Episode 305 - Is Private Credit Special?
In this episode, hosts Benjamin Felix and Cameron Passmore dissect the intricacies of private credit as an investment option. Private credit refers to loans offered by non-bank entities like private credit funds, which are not publicly traded. This asset class has gained popularity due to its high yields and the perception of stable returns, although Felix expresses skepticism about its risk-adjusted benefits. The discussion covers the structure of private credit, the high fees associated with private credit funds, and the deceptive stability these investments may appear to offer. They debate the actual risks involved, arguing that private credit, while growing rapidly, might not offer better returns than public assets when fees and risks are considered. The episode is rich with insights from financial experts and references to relevant academic research, making it a comprehensive exploration of private credit's place in an investment portfolio.
Episode 304 - Budget 2024: The Capital Gains Inclusion Rate
In Episode 304 of the Rational Reminder podcast, hosts Benjamin Felix and Cameron Passmore explore the proposed changes to the capital gains inclusion rate in Canada's federal budget. They discuss the potential implications for individuals and corporations, with a focus on investment strategies and tax planning. The episode features detailed analyses, expert commentary, and practical advice for navigating the new tax landscape. Various scenarios are modeled to illustrate the impact of these changes, particularly on high-value assets and corporate investments.
Episode 303 - Scott Galloway: The Algebra of Wealth
In this insightful episode, hosts Benjamin Felix and Cameron Passmore engage with Scott Galloway, who shares his personal journey and the lessons encapsulated in his book, "The Algebra of Wealth." Galloway outlines a formula for financial success, emphasizing focus, stoicism, time, and diversification. Through a combination of personal anecdotes and practical advice, he explores how disciplined saving, wise career choices, and strategic financial planning can lead to economic security. The discussion delves into the importance of recognizing and seizing economic opportunities, the pitfalls of lavish spending, and the psychological aspects of financial decision-making.
Episode 302 - Michael Green: Market Efficiency Is Not The Question
In this thought-provoking episode of the Rational Reminder podcast, hosts Benjamin Felix and Cameron Passmore dive deep with Michael Green into the complexities of index funds and their systemic implications on market dynamics. Green articulates the potential dangers posed by the growing dominance of passive investing, particularly how it could lead to market inelasticity and increased fragility. Through a detailed analysis of financial mechanisms and historical precedents, Green argues that the increasing shift towards index funds, while beneficial in some respects, could set the stage for severe market distortions and crises. His insights are grounded in both theoretical understanding and empirical evidence, offering a nuanced perspective on the often-celebrated rise of passive investment strategies.
Episode 301 - Optimal Government Pension Claiming, and Life Well-Being w/ Prof. Meir Statman
In this episode, hosts Benjamin Felix and Cameron Passmore, along with Professor Meir Statman, delve into the nuances of claiming government pensions such as the CPP. They explore how the timing of these claims can significantly impact the financial well-being of retirees. The discussion is anchored on the intersection of actuarial science and financial planning, providing a deep dive into how delayed pension claiming enhances the value of retirement assets and overall financial security. The conversation is enriched by Statman’s recent book on behavioral finance, linking financial decisions to broader life well-being.