Three famous companies in three different industries can still add up to a total loss. Don and Tom revisit Rule 17 from Financial Physics: diversification means much more than owning a handful of familiar stocks. From Enron and WorldCom to hometown favorites, they explain why confidence in a company is no substitute for spreading your investment risk. They also distinguish investments from the firms that hold them, then tackle listener questions about micro-cap funds, building an emergency r...

Five listener questions take Don from retirement income to a young investor’s first $100 a month. When does an immediate annuity make sense? What changes—and what doesn’t—when eligible Vanguard mutual funds become ETFs? And how can a 20-year-old get started with a simple, diversified retirement portfolio? Don also explains where interest from brokered CDs goes and weighs the appeal of a promotional 6% account against the hassle of moving your banking. First, a listener has a paper-saving sug...

Harvard, Yale, and other elite endowments hire armies of experts and pour billions into private equity, hedge funds, venture capital, and real estate—yet simple public-market investing often leaves them behind. Don and Tom unpack the numbers, the fees, and the small college that took a much simpler route. Then Darcy calls with a retirement portfolio that gets an enthusiastic A+: globally diversified stocks, a bond ladder, smart asset location, and a flexible spending plan. Her biggest challe...

Your grocery bill, insurance premium, and home maintenance costs can tell a very different story from the headline inflation rate. Don and Tom explore why rising prices hit households differently, how lifestyle creep quietly absorbs pay raises, and why a diversified investment portfolio matters when protecting long-term purchasing power. A listener nearing retirement asks whether an annuity or a change to her target-date portfolio makes more sense. Plus, why a fixed bond payment can fall beh...

A $50 sports bet can cost more than the money you lose today. Don and Tom explore why treating gambling as an investment can put decades of potential growth at risk—and why patient, low-cost, diversified investing offers a very different proposition. They discuss the pull of betting apps, the power of compounding, and the habits that make saving automatic. Listener questions bring the conversation back to flexibility: How firmly should a retiree follow an investment policy statement during a...

Financial products rarely come with a zero price tag—even when the salesperson insists that “the company pays.” Don and Tom unpack Rule 16 of Financial Physics, expose the hidden commissions and ongoing expenses behind that pitch, and compare a costly Nationwide target-date fund with a far cheaper Vanguard alternative. The real question is not whether you pay, but whether you know how much—and what service you receive in return. Then a burned-out 53-year-old nurse asks whether a $1.4 million...

On Halloween Eve, Don takes four listener questions about starting young, retiring early, managing risk, and making the most of Social Security. The costumes may be spooky, but the answers are practical. First, he weighs whether an 18-year-old without earned income should keep an Acorns account or move to a taxable brokerage account. Then he explains why someone retiring before 59½ may still benefit from pre-tax workplace contributions, with Rule 72(t) and Roth basis providing potential brid...

Market timing always looks easy in hindsight: just miss the 30 worst days. The catch is that the market’s best and worst days cluster together, so getting out means risking the rebound. Don and Tom unpack the seductive math, the impossible two-part prediction, and why diversified buy-and-hold investing remains the boring answer that actually works. A 73-year-old widow asks what to do after an insurance agent who sold her two EquiTrust annuities calls with another idea. Don and Tom question w...

Finding an advisor means looking beyond the word “fiduciary.” Don and Tom explore what it takes to find someone who puts your interests first all the time, why experience and a team matter, and what an ongoing fee should buy beyond portfolio management. They also discuss the challenge of handing over the financial reins—and making sure your spouse has someone to call. Listener questions tackle adding bonds before a career change, the tax tradeoffs of bonds in a brokerage account, why retirem...

Rising interest rates can make bond prices fall—and still be good news for savers. Don and Tom explain the bond-price mechanics, why higher yields matter, and why bonds belong in a portfolio for stability rather than excitement. They compare BND, money markets, and bond ladders, then explain how rebalancing and holding high-quality bonds to maturity can quiet the noise. Listener questions cover why money markets alone aren't enough and a blunt review of the costly, illiquid Ares Core Infrast...