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!

A provocative academic study says retirees should hold 100% stocks—an all-gas, no-brakes strategy that looks great in a spreadsheet. Don and Tom explain why higher expected returns alone ignore sequence risk, the emotional reality of a 50% drawdown, and the practical value of bonds when retirement withdrawals begin.

Then a listener asks about an employer-backed indexed universal split-dollar life insurance plan promising tax-free growth and distributions. The pitch sets off every alarm: complicated loans, questionable salary treatment, enormous commissions, and tax rules that demand independent legal review.

Finally, they separate Dave Ramsey’s useful debt and savings advice from his investment recommendations. High-cost active funds, optimistic return assumptions, and an 8% withdrawal rate meet 200,000 Monte Carlo simulations—and the numbers are not kind.

00:49 New ideas, old investing truths
03:04 The all-stock retirement argument
12:39 A split-dollar insurance pitch raises red flags
20:18 Where Dave Ramsey’s investing advice falls short
24:14 Testing an 8% withdrawal rate

Questions? Comments? Click!

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 reserve before retirement, and converting eligible Vanguard mutual funds to ETFs. The common thread: keep the portfolio understandable, watch the risks you’re actually taking, and know which taxes a conversion postpones rather than erases.

00:42 Rule 17 and the eggs-in-one-basket problem
02:39 When individual stocks go to zero
07:46 Diversifying across asset classes
08:53 Investing beyond the U.S.
10:34 Funds, custodians, and investor protections
15:49 Should you add micro-cap funds?
18:56 Emergency savings before retirement
23:02 Converting Vanguard mutual funds to ETFs

Questions? Comments? Click!

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 suggestion for Tom.

02:53 A listener’s suggestion for saving trees
04:29 Immediate annuities versus portfolio withdrawals
07:44 Vanguard mutual funds, ETFs, and dividends
11:18 Starting retirement savings at 20
13:50 How CD ladder interest gets paid
16:33 Weighing a promotional 6% savings offer

Questions? Comments? Click!

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 challenge may be resisting the urge to make a good plan more complicated now that she has time to tinker.

Finally, the guys answer whether a two-fund VT-and-BND portfolio is too simple, explain how RMDs can help rebalance it, and compare small-cap, U.S. stock, and global ETFs. The recurring lesson is refreshingly boring: diversification, low costs, and simplicity beat expensive complexity.

01:22 Elite endowments versus simple markets
09:19 The small college that chose indexing
15:10 Darcy's retirement portfolio gets an A+
23:22 Is a two-fund portfolio too simple?
28:25 Comparing active, index, and factor ETFs

Questions? Comments? Click!

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 behind an inflation-adjusted retirement spending plan, and what to consider when comparing international funds from Fidelity, Vanguard, and Avantis.

0:44 Christmas trees and the price of everyday life
2:18 Why your inflation may feel higher
5:30 Making sense of CPI and PCE
10:06 Lifestyle creep and long-term purchasing power
14:45 A listener weighs annuities and portfolio changes
26:07 Fixed bond income versus rising withdrawals
28:14 Comparing international funds
33:05 Big-screen bargains and the value of advice

Questions? Comments? Click!