AI can crunch a portfolio, harvest losses, and explain an investment concept in seconds. But can it stop a nervous investor from selling at exactly the wrong moment—or understand the life behind the spreadsheet?

Tom and Don test the robot-advisor promise, even asking ChatGPT to weigh in. The verdict is a useful division of labor: let technology handle repeatable mechanics, while human judgment, fiduciary responsibility, and behavior coaching remain hard to automate.

Then the questions get wonderfully strange: whether a 0.70% advisory fee earns its keep, how a concentrated tech fund hides risk behind a huge return, whether a $100 million Bitcoin Roth story adds up, and how to invest an inherited account.

00:00 Are AI advisors coming for financial planners?
03:06 ChatGPT offers its own cautious verdict
04:14 Where automation helps—and where humans matter
09:36 What investors should ask their advisory firms
12:10 Is a 0.70% advisor fee earning its keep?
16:50 The concentrated tech fund with a dazzling record
21:12 A purported $100 million Bitcoin Roth
25:22 Building an inherited-account portfolio

Questions? Comments? Click!

A quarter in the piggy bank has grown into a maze of UTMAs, 529s, custodial Roth IRAs, and the new child investment accounts. Tom and Don sort the options by what the money is actually for—and who keeps control.

The 529 emerges as the flexible favorite, especially with its education uses and limited Roth rollover. Then the conversation turns to concentrated factor ETFs, the familiar Bitcoin argument, and whether private markets are really swallowing public investing.

The through-line is refreshingly simple: match the account to the goal, favor broad diversification, and resist stories that make investing sound more complicated than it needs to be.

00:00 Pshaw, Wordle, and the kid-money maze
03:00 UTMAs and UGMAs: control has an expiration date
05:34 Why 529 plans remain the flexible favorite
09:01 Custodial Roth IRAs and an enormous head start
11:15 New child accounts versus the 529
16:02 MOAT and COWZ: clever ticker, concentrated portfolio
20:48 Bitcoin, volatility, and the meaning of value
26:51 Public markets versus the private-market story

Questions? Comments? Click!

Chasing performance feels like the easiest way to make money—but buying what has already gone up often means arriving late and leaving with less.

In this episode of Talking Real Money, Tom and Don examine the “behavior gap”: the difference between an investment’s return and what investors actually earn after buying high, selling low, and chasing the latest market story. They explain why disciplined diversification and a sensible asset allocation usually beat a portfolio built around hot ideas.

They also answer listener questions about retirement withdrawal order, Roth conversions, reinsurance funds, high investment costs, and whether financial recommendations are influenced by commissions.

00:20 Why buying what’s hot usually means arriving late
01:42 Chasing performance without ever catching it
03:03 How Bitcoin rose while Bitcoin ETF investors lost money
04:58 The costly confusion between “has gone up” and “is going up”
05:53 Morningstar’s “Mind the Gap” research
06:44 AI, chips, and the latest performance-chasing cycle
07:37 Asset allocation versus a collection of hot ideas
09:21 Why trying to beat the market often backfires
10:16 Listener Question: Retirement accounts and withdrawal order
12:29 Taxable, pre-tax, or Roth—which money should come first?
15:35 Listener Question: Do reinsurance funds belong in a portfolio?
16:58 Catastrophe risk, complexity, and nearly 2% in expenses
21:33 Listener Question: Are fund recommendations influenced by compensation?
23:27 Why “trust us” isn’t a convincing financial argument

Questions? Comments? Click!

The episode covers market bubbles, diversification, Social Security timing, and retirMarkets aren’t mysterious—they’re driven by one of the oldest economic principles there is.

In this episode of Talking Real Money, Tom and Don explain why supply and demand can send prices soaring in the short run… and why disciplined investors should usually ignore the excitement.

You’ll also hear practical answers to listener questions about Social Security timing, investment clubs, umbrella insurance, and protecting retirement assets.

00:12 Financial Fysics returns: Rule #2—Supply and Demand
02:04 Tom returns from vacation
03:32 Reviewing Rule #1 before diving into Rule #2
04:10 Why supply and demand mostly affects short-term prices
05:25 The difference between investors and traders
06:18 The dot-com bubble and today’s AI enthusiasm
08:35 Market efficiency, trading volume, and why surprises matter
10:55 Every bubble eventually runs out of buyers
12:35 Listener Question: Delaying Social Security versus investing the money
17:55 Why Social Security decisions are always personal
19:25 Listener Question: Are investment clubs worthwhile?
23:48 Listener Question: IRA protection, lawsuits, and umbrella insurance
30:05 What actually determines umbrella insurance costs
31:42 AI accidentally creates an extremely “chunky” Tom

Questions? Comments? Click!

This week Don tackles seven excellent listener questions covering everything from credit cards and emerging markets to covered-call ETFs, annuities, retirement buckets, and whether investors should worry about new additions to stock indexes.

00:51 Summer surge in listener questions

01:15 LitReading success and thanks

02:01 Are credit cards really evil?

05:09 Emerging markets inside international funds

07:44 Paying kids for chores to fund Roth IRAs

10:58 Covered-call ETFs (JEPI and others)

15:47 Helping a friend avoid an expensive annuity

19:40 Should index investors worry about SpaceX?

21:38 Bucket strategy and retirement portfolios

Questions? Comments? Click!

What exactly is a model portfolio—and should you trust one with your retirement?

Tom and Don explain why professionally designed model portfolios can improve consistency and reduce advisor bias, but also why investors should be wary as firms like Morningstar begin adding private equity, private credit, and other alternative investments to traditional portfolios.

00:12 What is a model portfolio?
02:11 Why advisors should use investment models
03:31 Morningstar’s new private market portfolios
05:20 Liquidity problems with private investments
07:27 The high cost of private equity
08:12 “Persistent inflation” claims examined
10:49 Why Wall Street wants retirement assets
12:23 Listener questions begin
14:17 AUM vs flat-fee vs hourly advisors
21:22 Do ETF expense ratios add together?
23:21 Roth IRA income limits and backdoor strategy
27:44 BrokerageLink inside a 401(k)
31:00 Costco, avocado oil, and gas prices

Questions? Comments? Click!

Can keeping up with financial news actually make you a better investor—or just make you more confident about making bad decisions? Don and Tom dig into research on how markets react to news, why investors tend to overreact to splashy stories and underreact to boring numbers, and whether sophisticated traders can actually exploit those inefficiencies. Then, a caller nearing retirement asks how to build a conservative brokerage account to bridge the years before Social Security. Plus, the guys compare Avantis global ETFs with Vanguard’s Total World Stock ETF, debate the value of factor tilts, and marvel at how quickly investors can pile billions into the latest hot investment idea.

• 00:05 Can financial news make you a better investor?
• 00:52 The illusion of being ahead of the market
• 01:44 Can investors profit from company news?
• 02:42 Are markets really efficient?
• 03:33 What 6.7 million Reuters articles reveal about news
• 04:40 How much financial news is actually predictable?
• 05:06 Why investing based on headlines is a fool’s errand
• 06:18 Bad news, numbers, and investor underreaction
• 07:06 Why investors overreact to ambiguous, high-attention news
• 08:10 Investment strategies that ordinary investors can’t realistically use
• 09:02 Be skeptical of your reaction to splashy news
• 09:36 Big news isn’t always new information
• 10:31 The factor zoo and the cost of complicated investing
• 11:04 Can expensive strategies overcome their fees?
• 12:28 Why diversified investors can mostly ignore the news
• 13:32 Soccer, summer football, and Orlando’s forgotten team
• 14:10 Listener call: Building a retirement bridge account
• 15:00 Retirement plans, Social Security, and a future inheritance
• 16:28 How soon will the retirement money be needed?
• 17:10 Matching asset allocation to short-term spending needs
• 18:04 Using bonds and cash for retirement stability
• 19:28 Is it okay to hold bonds in a taxable brokerage account?
• 20:43 A listener puts Don and Tom on his financial Mount Rushmore
• 22:02 Halloween in Celebration and 1,000 pieces of candy
• 22:46 Why did Avantis launch AVTM?
• 23:58 AVTM versus Vanguard Total World Stock ETF
• 24:06 Why Don and Tom prefer AVGE for a one-fund portfolio
• 25:29 The astonishing rise of a semiconductor ETF
• 26:45 Can VT plus AVGV replicate AVGE?
• 27:06 Why a 20% value tilt may not be enough
• 28:33 Factor investing, expenses, and expected returns
• 29:30 Tom returns from Greece and is ready for calls

Questions? Comments? Click!

Having a child later in life can change far more than your sleep schedule. It can completely rewrite your retirement plan.

Don and Tom explore the financial realities of becoming a parent in your late 40s or 50s, from college savings and life insurance to delayed retirement and the temptation to sacrifice your own financial future for your children. Tom brings some very personal experience to the conversation—and a few stories about being mistaken for his daughter’s grandfather.

Then, a listener asks about a simple three-fund retirement portfolio, international diversification, small-cap value, Roth asset location, and when an aggressive investor should finally consider adding bonds.

Plus, why the best retirement portfolio may be the one that keeps you from doing something stupid during the next bear market.

• 00:12 Old guys, act your age—and other financial lessons
• 01:14 Disagree with Don and Tom? Send in your argument
• 01:57 The financial reality of becoming a parent later in life
• 03:17 Tom became a father at 50
• 04:11 The dangers of grocery shopping with your daughter
• 05:21 Are older parents actually better parents?
• 06:10 How a late child can completely change retirement plans
• 07:28 Why retirement should come before college savings
• 08:48 A $36,000-a-year whole life insurance quote
• 09:08 How long does a parent really need term life insurance?
• 10:42 Fertility costs and the financial price of parenthood
• 11:28 Your retirement must remain the financial priority
• 12:50 Having a child at 50 may mean working until 68
• 13:42 What are you actually going to do in retirement?
• 15:19 Tom reflects on raising his youngest daughter
• 16:02 Don and Tom need more listener questions
• 17:17 Listener portfolio review: FZROX, FZILX, and AVUV
• 18:49 Is 50% U.S., 30% international, and 20% small value reasonable?
• 20:01 Should high-growth assets go in a Roth IRA?
• 20:43 When should an aggressive investor start adding bonds?
• 21:25 Bonds may keep you from doing something stupid
• 22:53 Remembering investor panic after 9/11
• 23:21 How to get a free Talking Real Money portfolio analysis
• 25:16 Why Talking Real Money is different

Questions? Comments? Click!

Money Monday has arrived, and Don kicks off a new weekly series based on his book Financial Fysics. The first “law” may surprise you: according to Don, every dollar ever earned comes from just three sources—luck, theft, or work. He and Tom debate where investing belongs, why entrepreneurship remains one of the best paths to wealth, and how much luck really contributes to financial success.

Then they answer a listener’s retirement planning question about whether to finance a Florida townhouse or withdraw money from a Roth IRA. Along the way they discuss Roth conversion strategy, Florida HOA reserve funds, special assessments, and why building a retirement plan should always come before deciding where the money comes from.

00:00 Welcome to Money Monday
00:12 A new weekly Financial Fysics series begins
01:35 Why anonymous two-star book reviews are so frustrating
02:40 Free Financial Fysics book giveaway
03:50 Rule #1: There are only three ways to make money
04:45 Luck—including investing, lotteries, and inheritance
06:35 Theft, fraud, and unethical financial products
07:55 Why successful investing combines work and luck
10:30 How most great fortunes are actually built
12:10 Entrepreneurship, risk, and creating wealth
13:35 Understanding just how large a trillion dollars really is
15:50 The biggest takeaway from Rule #1
17:15 Preview of next week’s rule: Supply and Demand
18:15 Why listener questions slow down during the summer
19:15 Listener Question: Should a retiree finance a Florida townhouse or withdraw money from a Roth IRA?
21:10 Florida HOA reserves and avoiding expensive surprises
24:30 Why retirement planning comes before choosing an account
26:00 Why the Roth IRA is probably the last account to tap

Questions? Comments? Click!

Tom’s on vacation, but the listener questions are not. In this packed Q&A episode, Don tackles one of the most common retirement dilemmas: if your Social Security and annuity income already cover your expenses, do you still need a traditional emergency fund?

From there, the questions keep coming. Don weighs in on what to do with “lazy money” earning only 3%, whether a MYGA is really a better deal than a CD ladder, how to structure a taxable brokerage account for long-term growth, and where to keep nearly $300,000 set aside for a home purchase in the next two to three years.

He also takes on a thoughtful question about managing a taxable portfolio for elderly in-laws who need additional income for memory care, and wraps up with a step-by-step explanation of how inherited IRA money can potentially be used to fund backdoor Roth contributions.

Along the way, you’ll hear why “guaranteed” doesn’t always mean what insurance companies want you to think it means, why simplicity often beats ETF overengineering, and why liquidity still matters—even in retirement.

0:05 – Intro and why Tom is getting buried in listener questions while on vacation
1:14 – Don thanks listeners and mentions Apple featuring Litreading
1:58 – How to send recorded questions at TalkingRealMoney.com
2:16 – Question 1: Do retired investors still need a six-month emergency fund if Social Security and annuities cover expenses?
3:14 – Why Don still favors stable, liquid emergency money even in retirement
4:30 – Question 2: What should retirees do with “lazy money” that’s earning only about 3%?
5:28 – Don’s preference for CD ladders over MYGAs and why “guaranteed” doesn’t mean risk-free
7:33 – Question 3: How should a high-income investor build a long-term taxable portfolio at Vanguard?
10:03 – Don’s case for simplifying with AVGE or DFAW instead of mixing multiple ETFs
11:24 – Question 4: Is a five-year MYGA better than a five-year CD ladder?
12:01 – Why Don still leans toward CDs despite the higher MYGA yield and tax deferral pitch
14:16 – Question 5: Best place to keep $291,000 earmarked for a home purchase in two to three years
14:46 – Money market vs. high-yield savings vs. CDs vs. BND for short-term house money
17:04 – Question 6: How to structure a $300,000 taxable portfolio for elderly in-laws who need extra monthly income for memory care
18:37 – Why Don would keep lots of liquidity, use only a little equity, and skip muni bonds in a 22% bracket
20:50 – Question 7: Can inherited IRA proceeds be used to fund a backdoor Roth for both spouses?
22:40 – Don’s step-by-step answer, including opening new IRAs and watching out for the pro-rata rule
25:07 – Don plugs The Line Uncrossed and offers a free one-hour advisor meeting
25:42 – Reminder to send questions and be patient while Tom is on vacation

Questions? Comments? Click!

In what may be our last quiz, ever, Tom turns the tables and puts Don in the hot seat with a Wall Street Journal high-school personal finance quiz—covering the Magnificent Seven, Roth IRAs, TIPS, efficient markets, yield curves, market risk, and dollar-cost averaging. Don does reasonably well, but not without protesting a dubious “debt avalanche” question and getting tangled up in a couple of accounting and risk terms. After the quiz-show nonsense, the guys tackle a listener question from Joseph in Pennsylvania: should your stock/bond allocation be based on a fixed percentage of your portfolio, or should it be driven by how many years of spending you want buffered in safer assets? Tom and Don explain why the answer depends on more than just income needs—it also depends on your emotional tolerance for volatility, your need for growth, and the role fixed income plays in helping you stay invested when markets get ugly.

0:22 Tom becomes quizmaster and introduces the Wall Street Journal high-school personal finance quiz
2:12 Question 1: Which stock is not part of the Magnificent Seven?
3:47 Question 2: Which retirement account does not require withdrawals at a certain age?
5:09 Question 3: TIPS, STRIPS, Series I bonds, and inflation-adjusted principal
6:58 Question 4: Debt payoff strategies and the disputed “debt avalanche” answer
9:13 Question 5: Efficient market hypothesis
10:12 Question 6: What an inverted/downward-sloping yield curve says about future rates
11:25 Question 7: Return on equity math and a heavily leveraged company
12:56 Question 8: What it means when net present value equals zero
14:44 Question 9: Why putting your emergency fund in stocks creates market risk
16:52 Question 10: Unsystematic risk versus broad market risk
18:57 Question 11: Dollar-cost averaging
20:06 Tom and Don wrap up the quiz and revisit the “debt avalanche” controversy
21:11 Listener question from Joseph in State College, Pennsylvania
21:34 Should bond allocation be based on a fixed percentage or on years of spending?
22:07 Risk tolerance vs. risk profile: why income needs are only part of the equation
23:26 Why a 5-year spending buffer in safer assets can make sense in retirement
24:13 The emotional role of bonds and fixed income during market declines

Questions? Comments? Click!