What do you get when you mix a loonie doctor with a couple of the most rational and evidence-driven financial professionals around? Listen to my appearance on the Rational Reminder Podcast and find out!
I had the pleasure to spend about 40 minutes chatting with Ben Felix and Cameron Passmore on their Rational Reminder Podcast. Those familiar with their work will know that they deep dive into some very complex financial topics for advanced investors. Ben has generated some great papers that I and others often reference, like this one. As a duo, they boil down all of that deep analysis into really pragmatic approaches to investing and personal finance for the average DIY investor.
So, you can imagine how excited I was for this opportunity. Don’t worry. I got all of my fanboy excitement out of the way in advance of the podcast.
Some pre-podcast exchange and hopefully some future blog content.
We also had some really great email exchanges about some technical details of risk management and asset location. To keep the podcast safe and avoid inducing intra-cranial catastrophes, we only touch on that briefly in the podcast. Ben framed the issues brilliantly [sorry, residual fanboy outburst] in the white paper that he put out last week about post-tax asset location optimization. In my mind, there are several ways to approach the findings.
The best approach (I think) depends on the individual investor. For those not facing much of a tax burden, not bothering with asset location is probably the best route. However, when thinking of more complex situations like incorporated high-income earners – it may be worth it to some. The debate then becomes about what is optimal and what is the biggest risk. The mathematical and behavioral answers are different. I hope to explore that on the blog further in the near future.
We covered a lot of very important frying-pan-free-territory.
The most important issues for most high-income professionals are not the nuances of investing. We make enough money that we just need to get that “right enough” and avoid a few traps.
However, we face multiple other issues that we must get right, but struggle with:
- We make big money – that can be a big tool or a big problem if we don’t deliberately think about it. We need to build holistic wealth.
- Our careers occupy major places in our lives. How do we make them fulfilling? How do we balance our careers with our other roles? Play your banjo.
- Insurance is like gambling. Do you know when to hold’em? Know when to fold’em? Know when to walk away? Know when to run?
- Doctors love evidence. How does that translate to finance?
- Lessons about money from my patients.