A sharp market drop can rattle investors, but Don and Tom explain why global diversification and a portfolio matched to your real risk capacity matter more than reacting to headlines.

Then they answer four listener questions: whether a debt-free household with roughly $5 million can afford retirement, how to balance pre-tax and Roth contributions near the 24% bracket, whether a federal money market fund is safe for a large cash balance, and how a young investor can improve on an expensive target-date plan.

00:00 A German-industrial Friday intro
02:51 Why market drops don’t change the plan
06:26 Is $5 million enough to retire?
10:09 Traditional or Roth at 24%?
13:50 FDIC sweep versus federal money market
17:11 Improving a young investor’s lineup
20:46 Closing thoughts
21:31 Disclosures

Questions? Comments? Click!

When GameStop took off, Dimensional sold as the stock moved outside its small-value rules. Don McDonald and Tom Cock revisit the meme-stock frenzy and explain how factor funds differ from broad index funds. They also answer listener questions about where to hold stocks and bonds across retirement accounts, how 403(b) and 457(b) plans differ, and what happens when a spouse inherits a 401(k).

00:00 Opening
01:33 GameStop and the meme-stock frenzy
07:34 Index funds, factor funds, and diversification
15:56 Roth asset location and rebalancing
24:02 403(b) versus 457(b)
27:01 Inheriting a spouse’s 401(k)

Questions? Comments? Click!

Merchant cash advances promise quick relief for a business in trouble—but the convenience can hide brutal costs and daily withdrawals that make a cash-flow crisis worse. Don and Tom explain why a local bank, an SBA loan, SCORE counseling, or even a hard look at whether the business should continue may be safer than easy money.

Then a Rhode Island caller asks how to place stocks and bonds across Roth, taxable, and traditional retirement accounts without losing control of overall risk. The answer: treat every account as one portfolio, put tax-inefficient bonds where they fit best, and rebalance primarily inside the IRA when possible.

Finally, they compare a broad Schwab small-cap index with Avantis’s value tilt, explain what a PCRA actually is inside a 401(k), and consider the protections and backdoor-Roth advantages of leaving retirement money in the plan.

1:25 The easy-money trap
2:05 How merchant cash advances work
4:47 Safer sources of business capital
9:43 When to stop funding a struggling business
16:09 Asset location across Roth, IRA, and taxable accounts
24:18 SCHA versus AVUV for small caps
27:34 What a PCRA account really is

Questions? Comments? Click!