Money For the Rest of Us

Money For the Rest of Us

J. David Stein
A personal finance and investing podcast on money, how it works, how to invest it and how to live without worrying about it. J. David Stein is a former Chief Investment Strategist and money manager. For close to two decades, he has been teaching individuals and institutions how to invest and handle their finances in ways that are simple to understand. More info at moneyfortherestofus.com
How Retail Traders Lose Big While Enriching Wall Street
Gambling in the stock market is increasing, with most traders losing money while generating billions of dollars per year for brokerages and wholesalers. Will all this trading lead to big market swoons? Topics covered include:Why sports gambling has grown so muchHow gambling in the stock market is measured, and how prevalent is itWhy most traders lose money but continue to trade anywayHow uninformed traders improve market liquidity and encourage trading by informed tradingWhy being an asset allocator is more rewarding and as intellectually stimulating as trading Sponsors NetSuite Betterment - the automated investing and savings app Insiders Guide Email Newsletter Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter Our Premium Products Asset Camp Money for the Rest of Us Plus Show Notes How Stocks Became the Game That Record Numbers of Americans Are Playing by Claire Ballentine—Bloomberg MURPHY, GOVERNOR OF NEW JERSEY, ET AL. v. NATIONAL COLLEGIATE ATHLETIC ASSN. ET AL. SYLLABUS—The Supreme Court of The United States America's Sports Betting Boom by Felix Richter—Statista Searching for Gambles: Gambling Sentiment and Stock Market Outcomes by Yao Chen, Alok Kumar, Chendi Zhang—SSRN Stocks as Lotteries: the Implications of Probability Weighting for Security Prices by Nicholas Barberis and Ming Huang—SSRN Day Trading for a Living? by Fernando Chague, Rodrigo De-Losso, Bruno Giovannetti—SSRN Computer based trading system and methodology utilizing supply and demand analysis—Google Patents Retail Trading in Options and the Rise of the Big Three Wholesalers—Svetlana Bryzgalova, Anna Pavlova, Taisiya Sikorskaya—SSRN Amateurs Pile Into 24-Hour Options: ‘It’s Just Gambling’ by Gunjan Banerji—The Wall Street Journal Retail Traders Love 0DTE Options... But Should They? by Heiner Beckmeyer, Nicole Branger, Leander Gayda—SSRN Related Episodes 482: Unlocking the Power of Positive Skewness: Strategies for Investing, Business, and Creativity 239: How to Be a Successful Trader See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Jul 17
22 min
Should You Invest in Defined Outcome Buffer ETFs?
Buffer ETFs protect against the downside while capping the upside. We examine them closely to see if they are worth it. Topics covered include:How buffer ETFs are structured and some current examplesHow buffer ETFs have performed over the past five yearsWhat are the risks of buffer ETFsHow loss aversion and narrow framing contribute to the popularity of buffer ETFsAre buffer ETFs worth it and what are some alternative strategies that could be used instead Sponsors Shopify  NetSuite Insiders Guide Email Newsletter Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter Our Premium Products Asset Camp Money for the Rest of Us Plus Show Notes BlackRock Enters Booming Market for Stock ETFs With a 100% Hedge by Emily Graffeo—Bloomberg New Stock ETF Offers 100% Hedge as Buffer Funds Nab $46 Billion by Emily Graffeo—Bloomberg The Dynamics of Defined Outcome Exchange Traded Funds by Luis García-Feijóo and Brian Silverstein—SSRN Monetizing Loss Aversion for Fun and Profit—Paul Kedrosky Thirty Years of Prospect Theory in Economics: A Review and Assessment by Nicholas C. Barberis—Journal of Economic Perspectives Prospect Theory: An Analysis of Decision Under Risk by Daniel Kahneman and Amos Tversk—ECONOMETRICA Investments Mentioned Innovator U.S. Equity Ultra Buffer ETF - January Series (UJAN) Innovator U.S. Equity Ultra Buffer ETF - June Series (UJUN) iShares Large Cap Max Buffer Jun ETF (MAXJ) Innovator U.S. Equity Accelerated 9 Buffer ETF (XBJL) SPDR S&P 500 ETF Trust (SPY) Related Episodes 465: Transforming Financial Regrets into Portfolio Gains: Five Strategies for Navigating Investment Emotions 460: Should You Be Invested 100% in Stocks Before and During Retirement? A Recent Study Says Yes.  451: How Much Should You Invest in Stocks? The Art of Position Sizing in a Volatile Market 394: How to Get Better at Risk Taking 321: How to Analyze Complex Investments See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Jul 10
27 min
7 Steps to Living a Long Life
Seven ways to increase the odds of living long into your retirement years (if you choose to retire). Sponsors Monarch Money – Get an extended 30-day free trial Lifetime Money for the Rest of Us Plus membership Our Premium Products Asset Camp Money for the Rest of Us Plus Show Notes Podcast Stats: How many podcasts are there?—Listen Notes Quality Over Quantity Is A Growth Strategy by Steven Goldstein—Amplifi Media Slow Productivity by Cal Newport—Penguin Random House Why our brains crave beauty, art and nature by Jemima Kelly—The Financial Times Why southern Europeans will soon be the longest-lived people in the world—The Economist What I’ve learnt from two decades eating in Paris by Simon Kuper—The Financial Times Getting Good Sleep Could Add Years to Your Life—American College of Cardiology Close friends can help you live longer but they can spread some bad habits too by Maggie Mertens—NPR United we thrive: friendship and subsequent physical, behavioural and psychosocial health in older adults (an outcome-wide longitudinal approach) by E. S. Kim, W. J. Chopik, Y. Chen, R. Wilkinson and T. J. VanderWeele—Cambridge University Press Why I’ve hung up my wellies and given up the country cottage by Tom Hodgkinson—The Financial Times An Emersonian Guide to Taking Control of Your Life by Arthur C. Brooks—The Atlantic Why you should never retire—The Economist It’s not so ‘terribly strange to be 70’ by Anne Lamott—The Washington Post See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Jun 26
31 min
Don't Lose Access to Your Cash: Comparing Banks, Neobanks, and Fintech Platforms for Cash Savings
Millions of fintech app users have lost access to their cash. In this episode, we explain why this happened and show you how to protect yourself when placing cash with traditional banks, neobanks, and fintech platforms. Topics covered include:The mass chaos in the fintech space spawned by the bankruptcy of Synapse Financial TechnologiesWhat are FBO accounts, and why they are so troublesomeWhat is the difference between a traditional bank, a neo bank, and a non-bankWhat to look for and protect yourself when investing your cash savings Sponsors NetSuite  Delete Me – Use code David20 to get 20% off Our Premium Products Asset Camp Money for the Rest of Us Plus Show Notes CHAPTER 11 TRUSTEE’S INITIAL STATUS REPORT BY UNITED STATES BANKRUPTCY COURT CENTRAL DISTRICT OF CALIFORNIA SAN FERNANDO VALLEY DIVISION—CourtListener Fintech platform Synapse raises $33M to build ‘the AWS of banking’ by TechCrunch—Synapse X Post by Jason Mikula—X "Full Reconciliation... May Not Be Possible," Synapse Trustee Says by Jason Mikula—Fintech Business Weekly Mercury Seeking $30M From Synapse, Emergency Court Filing Reveals by Jason Mikula—Fintech Business Weekly Infighting among fintech players has caused TabaPay to ‘pull out’ from buying bankrupt Synapse by Mary Ann Azevedo—TechCrunch Fintech startup Copper forced to discontinue banking services amid Synapse fiasco by Taylor Soper—GeekWire a16z-backed Tellus wants to offer consumers a much better savings rate. Here’s how. by Mary Ann Azevedo—TechCrunch FDIC Demands Three Companies Cease Making False or Misleading Representations about Deposit Insurance—FDIC Related Episodes 440: Beware of Platform Risk 424: Are More Bank Runs Coming? The Collapse of Silicon Valley Bank 412: Where to Invest Your Cash Savings for Higher Yields 304: A 15% Guaranteed Return? Lending on the Fringes of Finance See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Jun 19
24 min
Unlocking the Power of Positive Skewness: Strategies for Investing, Business, and Creativity
How a few high-impact successes drive up overall average outcomes in investing, business, and creative projects. How to harness positive skewness using a barbell approach. Learn when to mitigate risks and when to embrace them. Topics covered include:What is positive skewness and how does it manifest in investing, business and creative endeavorsHow power laws and the 80/20 rule workWhy we shouldn't beat ourselves up if we aren't incredibly successfulWhen should we reduce positive skewness and when should we embrace it Sponsors LinkedIn Jobs – Use this link to post your job for free on LinkedIn Jobs Betterment - the automated investing and savings app Our Premium Products Asset Camp Money for the Rest of Us Plus Show Notes Long-Term Shareholder Returns: Evidence from 64,000 Global Stocks by Hendrik Bessembinder, Te-Feng Chen, Goeun Choi, K.C. John Wei—SSRN Long-Horizon Stock Returns Are Positively Skewed by Adam Farago and Erik Hjalmarsson—SSRN Wealth Creation in the U.S. Public Stock Markets 1926 to 2019 by Hendrik Bessembinder—SSRN The Coffee Can portfolio by Robert G. Kirby—csinvesting Active vs Passive Investing U.S. Barometer Report—Morningstar Table 7. Survival of private sector establishments by opening year—U.S. Bureau of Labor Statistics How Many Podcasts Are There? (New 2024 Data) by Josh Howarth—Exploding Topics See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Jun 12
28 min
How to Navigate the Crippling Home Insurance Crisis
Why are homeowners seeing home insurance premiums increases of up to 70%, as David has? What can you do if your insurer drops you, you get a huge premium increase, or you can no longer afford coverage? Topics covered include:What are the primary drivers of home insurance price increasesWhy these increases don't show up in the U.S. consumer price indexHow the reinsurance market works and why reinsurers are passing on 50% premium increases to property and casualty insurers.What percentage of home insurers self-insureWhat else can homeowners do Sponsors Delete Me – Use code David20 to get 20% off NetSuite Insiders Guide Email Newsletter Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter Our Premium Products Asset Camp Money for the Rest of Us Plus Show Notes Home Insurance Is Clobbering Consumers. Yet It’s Barely Counted in Inflation. by Jeanna Smialek—The New York Times NIPA Handbook: Concepts and Methods of the U.S. National Income and Product Accounts: Chapter 5: Personal Consumption Expenditures—Bureau of Economic Analysis The crippling home insurance crisis hitting America by Rana Forhoohar—The Financial Times The Hidden Driver of Soaring Home Insurance Costs by Jean Eaglesham—The Wall Street Journal When Disaster Strikes: Preparing for Climate Change by Seán Nolan and Krishna Srinivasan—IMF Blog Home insurance was once a ‘must.’ Now more homeowners are going without. by Patrick Cooley—The Washington Post Homeowners Perception of Weather Risks 2023 Q2 Consumer Survey—Insurance Information Institute Insurance Companies Feeling the Pressure in Iowa and the Midwest by Jerry Theodorou—Insurance Journal See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Jun 5
27 min
Beyond Faster (T+1) Trade Settlements: The Hidden Costs of Optimization
Why stock, ETF, and bond trades are optimized to settle in less than a day, allowing investors quicker access to their cash and securities. What are the benefits and costs of optimization in the relentless drive for cheaper, faster, and more profitable.Why countries are moving to T+1 settlement from T+2 for security tradesWhat will it take for securHow BlackRock and Franklin have launched Treasury funds that are tokenized and trade on the Etherium networkHow optimization works and what are the tradeoffsHow we can use satisficing and rules of thumb in order to cope with the complexity of the world Sponsors Yahoo Finance Monarch Money – Get an extended 30-day free trial Our Premium Products Asset Camp Money for the Rest of Us Plus Show Notes About the ‘T+1’ Rule Making US Stocks Settle in a Day by Lydia Beyoud and Greg Ritchie—Bloomberg SEC Chair Gensler Statement on Upcoming Implementation of T+1 Settlement Cycle—SEC What faster trading cycles will mean for US markets by Jennifer Hughes and Harriet Clarfelt—The Financial Times Speedier Wall Street Trades Are Putting Global Finance On Edge by Greg Ritchie—Bloomberg BlackRock closes in on crown of world’s largest bitcoin fund by Will Schmitt and Brooke Masters—The Financial Times Optimal Illusions: The False Promise of Optimization by Coco Krumme Financial Statement Analysis with Large Language Models by Alex G. Kim, Maximilian Muhn, and Valeri V. Nikolaev—The University of Chicago Related Episodes 457: AI’s Fork in the Road: Societal Bliss or Existential Threat 329: Meme Stocks, GameStop, Short Squeezes, and Bubbles 228: How Tokenization Will Radically Change Investing See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
May 29
27 min
National Debt Masterclass Finale - What To Do
In part three of our national debt masterclass, we share a simple debt dynamics formula we can monitor to help guide our investment choices. Topics covered include:How much has the national debt grown over the past fifties years, and what are the underlying driversHow the budget deficit, interest rates, and economic growth determine the level and growth in the national debtUnder what circumstances will the U.S. default on its debtHow should we invest to protect ourselves from the uncertainties of the national debt situation Sponsors NetSuite  Yahoo Finance Our Premium Products Asset Camp Money for the Rest of Us Plus Show Notes Jerome Powell: Full 2024 60 Minutes interview transcript—CBS News Yellen says she disagrees with Moody's outlook on US debt by Ann Saphir and David Lawder—Reuters IMF Steps Up Its Warning to US Over Spending and Ballooning Debt by Christopher Condon—Bloomberg WHEN DOES FEDERAL DEBT REACH UNSUSTAINABLE LEVELS?—Penn Wharton The Long-Term Budget Outlook: 2024 to 2054—Congressional Budget Office PUBLIC DEBT AND LOW INTEREST RATES by Olivier J. Blanchard—NBER Bond vigilantes snooze as Treasury market shrugs off vast US borrowing by Kate Duguid—The Financial Times Term Premium on a 10 Year Zero Coupon Bond—FRED Instantaneous Forward Term Premium 10 Years Hence—FRED See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
May 22
27 min
National Debt Masterclass Part Two
In part two of this national debt series, we explore how households and businesses, including commercial banks, can choose not to participate in what some call a national debt ponzi scheme. We also look at how central banks and federal governments monetize the national debt using quantitative easing. Sponsors Yahoo Finance LinkedIn Jobs – Use this link to post your job for free on LinkedIn Jobs Our Premium Products Asset Camp Money for the Rest of Us Plus Show Notes Credit and Liquidity Programs and the Balance Sheet: Federal Reserve liabilities—Board of Governors of the Federal Reserve System As of and for the Years Ended December 31, 2019 and 2018 and Independent Auditors’ Report—The United States Federal Reserve System Different types of central bank insolvency and the central role of seignorage by Ricardo Reis How do central banks control inflation? A guide for the perplexed by Laura Castillo-Martinez and Ricardo Reis Can the Central Bank Alleviate Fiscal Burdens? by Ricardo Reis Ricardo Reis Tweets on Monetizing the National Debt M2—Federal Reserve Economic Data Assets: Total Assets: Total Assets: Wednesday Level—Federal Reserve Economic Data Assets: Securities Held Outright: U.S. Treasury Securities: All: Wednesday Level—Federal Reserve Economic Data Americans Reported Strong Personal Finances Late Last Year, Fed Finds by David Harrison—The Wall Street Journal A Complete Guide to Understanding and Protecting Against Inflation—Money For the Rest of Us A Complete Guide to Investing in TIPS and I Bonds—Money For the Rest of Us See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
May 15
51 min
National Debt Master Class Part One
In part one of this three part series, we consider why a country that issues debt in its own currency can't default unless it chooses to. We also explore how central banks can control interest rates on the national debt. We also consider whether it is possible for government borrowing to crowd out the private sector. Sponsors Shopify  NetSuite Insiders Guide Email Newsletter Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter Our Premium Products Asset Camp Money for the Rest of Us Plus Show Notes Money In The Modern Economy: An Introduction – Bank of England – Q1 2014 Money Creation In The Modern Economy – Bank of England – Q1 2014 Congressional Budget Office 2017 Long-term Budget Outlook Going for Broke: Deficits, Debt, and the Entitlement Crisis – Michael D. Tanner Bernanke’s Paradox: Can He Reconcile His Position on the Federal Budget with His Recent Charge to Prevent Deflation? – Pavlina R. Tcherneva – Levy Institute (includes quotes referenced in episode by Ben Bernanke and Michael Woodford New Framework for Strengthening Monetary Easing: “Quantitative and Qualitative Monetary Easing with Yield Curve Control” – Bank of Japan Japan’s Debt Burden Is Quietly Falling the Most in the World – Bloomberg The Bone Clocks – David Mitchell Venezuela Is Starving – Juan Forero – Wall Street Journal Curse or Blessing? How Institutions Determine Success in Resource-Rich Economies – Cato Institute Forget Taxes, Warren Buffett Says. The Real Problem Is Health Care. – New York Times See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
May 8
32 min
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