This is one of the best interviews that you've had. And you've had lots of good ones. In retirement, my spending is around 1% of my stash. My worst case was in 2015, when I spent 2%, due to replacing my car and my heating system boiler.
Loved the energy! Look forward to Moshes' history book, sounds awesome! My first episode viewed while drinking a morning java from a fresh Rational Reminder mug. Life is sweet.
Not a fan of Milevsky. Way too full of himself. Way too hard (implicitly cuz he's not an idiot) on Bill Bengen. You guys should have pushed back a bit on Bill's behalf and his research on the 4% w/draw rate. Folks need to start somewhere on how much to spend in retirement, and Bill's research gives an important framework to start that discussion, but you have to understand the context of the research, then apply for your circumstance. Like it or not, every time you get on a plane, or in a car there is a statistical probabality that you will not make it back safely. He implies that if ignorant people knew this we would not fly ? This is what happens when you have too much communication with college students that can't or don't push back.
I could’ve done without the snarkiness from the professor. He makes good points but it’s hard to take him seriously when he’s being sarcastic half the time
This was a fantastic video. Thank you. It was funny to see Ben bite his lip a little about prof milevski being so enthusiastic about stock picking. Don't worry Ben, your subscribers will know better ;)
Hi Ben and Cameron - just wanted to say that it was another great episode (great dynamic between you and slightly overcaffeinated professor Milevsky:) ). I found out about the podcast and Ben's channel around March 2020, when markets tanked and I was looking for tips and opinions about the recovery shape and value stocks to buy (I've been a stock picker and a market timer since I started investing in 2008), after watching almost all your videos (on both channels) I am completely converted to the idea that a well diversified ETF portfolio is the way to go. One thing I could not find anywhere in the internet is an analysis whether one should diversify between ETF providers or is it ok to have all your ETFs with one provider (e.g. Vanguard, Blackrock, State Street). Thanks for what you're doing - the quality of the channel is enormous! It is very useful for people from outside of Canada too! Greetings from Krakow, Poland.
Re the "sell me an annuity" part of the conversation around 28 min., I've always used a "reason why" type of letter as part of a post-meeting documentation process with a client. In other words, (1) here are the risks we've identified and talked about, (2) here's my advice on how to manage those risks, and (3) here's the decision and the "why" behind it. I've found some clients need some time and space to sit on annuity/insurance issues, or need to take the time to explore some of their reasoning and resistance, (with guidance and support where required.) Putting the discussion / decision in black and white helps with that, in my experience. Great episode! (Full disclosure: risk nerd here.)
3 роки тому+1
55:41 Ben, you have definitely made index investing cool for me and inspired me to start my own youtube channel to educate people in Czech republic about indexing and rational investing.
I started my career as an annuity wholesaler in the U.S. and I'm surprised that Canadian 's dont have the full breadth of annuity options. That said, now as an advisor, a little dash of a SPIA can help take the pressure off the managed money as the insurance carriers will give you a little more withdrawal rate than you can take on assets because when you pass, there is nothing left. Although rates on all annuities are down historically bc of rates.
Hi Cameron and Ben, so this annuity thing just seems like a sense of sleeping well at night to me. Basically you just get rid of a jump sum to get monthly or yearly cheques? And then nothing gets left to my kids when I have them and if I do? This just seems off to me, market risk , small value risk , etc.. Are proven to yield better results over long term. I dont want to give my money back to the government tbh, f that. Still good episode. I would appreciate a response since Im genuinely confused at what little benefit they provide other than mental assurance or a feeling of “wellness” (which I dont need) i just need money
Annuity eliminates longevity risks, and your kids does get to inherit the annuity via a death-benefit provision as an optional feature. Market risk, small value risk, etc has proven to yield better results BUT with more risks involved. As counter-intuitive as this maybe, the risk of investing in equities is the same regardless of your time horizon. If time diversification works, then the equity risk-premium by definition must approach to the risk less rate as one's time horizon approaches infinity. Research about it long enough, and you will begin to understand the time diversification fallacy.
If I start say a 7-year FIA and attach an income rider, do I have to keep that 7-year FIA till I die in order to get the guaranteed income for life stream from the income rider? If so, and on the way to my death date (paying 1% or more annual income rider fee) and I turn on the income stream at some point, am I depleting the FIA until zero and then the income rider kicks in?
Fantastic interview and content from Professor Milevsky, thanks for doing this! Loved Pensionize Your Nest Egg, but as you point out, people are not keen on buying annuities. The one point I would debate with Mr. Milevsky is his take on active management - I have seen no evidence that anyone can consistently beat the markets.
Gents, i really enjoy your work. Perhaps a tad too much; keep this up! This interview left so many skid-marks on my brain... I don’t think there is any untouched surface left.
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I have very much enjoy this episode. I very much like Prof Moshe Milevsky delivery, so entertaining while highly educative.
This is one of the best interviews that you've had. And you've had lots of good ones. In retirement, my spending is around 1% of my stash. My worst case was in 2015, when I spent 2%, due to replacing my car and my heating system boiler.
Humble brag lol good for you!
Loved the energy! Look forward to Moshes' history book, sounds awesome! My first episode viewed while drinking a morning java from a fresh Rational Reminder mug. Life is sweet.
Not a fan of Milevsky. Way too full of himself. Way too hard (implicitly cuz he's not an idiot) on Bill Bengen. You guys should have pushed back a bit on Bill's behalf and his research on the 4% w/draw rate. Folks need to start somewhere on how much to spend in retirement, and Bill's research gives an important framework to start that discussion, but you have to understand the context of the research, then apply for your circumstance. Like it or not, every time you get on a plane, or in a car there is a statistical probabality that you will not make it back safely. He implies that if ignorant people knew this we would not fly ? This is what happens when you have too much communication with college students that can't or don't push back.
I could’ve done without the snarkiness from the professor. He makes good points but it’s hard to take him seriously when he’s being sarcastic half the time
This was a fantastic video. Thank you. It was funny to see Ben bite his lip a little about prof milevski being so enthusiastic about stock picking. Don't worry Ben, your subscribers will know better ;)
Informative, energetic, intelligent interview. Well done. Wish I had had a prof like Prof. Moshe when I was in university. What a card!
Hi Ben and Cameron - just wanted to say that it was another great episode (great dynamic between you and slightly overcaffeinated professor Milevsky:) ). I found out about the podcast and Ben's channel around March 2020, when markets tanked and I was looking for tips and opinions about the recovery shape and value stocks to buy (I've been a stock picker and a market timer since I started investing in 2008), after watching almost all your videos (on both channels) I am completely converted to the idea that a well diversified ETF portfolio is the way to go. One thing I could not find anywhere in the internet is an analysis whether one should diversify between ETF providers or is it ok to have all your ETFs with one provider (e.g. Vanguard, Blackrock, State Street). Thanks for what you're doing - the quality of the channel is enormous! It is very useful for people from outside of Canada too! Greetings from Krakow, Poland.
This episode was fantastic!
Re the "sell me an annuity" part of the conversation around 28 min., I've always used a "reason why" type of letter as part of a post-meeting documentation process with a client. In other words, (1) here are the risks we've identified and talked about, (2) here's my advice on how to manage those risks, and (3) here's the decision and the "why" behind it. I've found some clients need some time and space to sit on annuity/insurance issues, or need to take the time to explore some of their reasoning and resistance, (with guidance and support where required.) Putting the discussion / decision in black and white helps with that, in my experience. Great episode! (Full disclosure: risk nerd here.)
55:41 Ben, you have definitely made index investing cool for me and inspired me to start my own youtube channel to educate people in Czech republic about indexing and rational investing.
I started my career as an annuity wholesaler in the U.S. and I'm surprised that Canadian 's dont have the full breadth of annuity options. That said, now as an advisor, a little dash of a SPIA can help take the pressure off the managed money as the insurance carriers will give you a little more withdrawal rate than you can take on assets because when you pass, there is nothing left. Although rates on all annuities are down historically bc of rates.
Hi Cameron and Ben, so this annuity thing just seems like a sense of sleeping well at night to me. Basically you just get rid of a jump sum to get monthly or yearly cheques? And then nothing gets left to my kids when I have them and if I do? This just seems off to me, market risk , small value risk , etc.. Are proven to yield better results over long term. I dont want to give my money back to the government tbh, f that.
Still good episode. I would appreciate a response since Im genuinely confused at what little benefit they provide other than mental assurance or a feeling of “wellness” (which I dont need) i just need money
Annuity eliminates longevity risks, and your kids does get to inherit the annuity via a death-benefit provision as an optional feature. Market risk, small value risk, etc has proven to yield better results BUT with more risks involved. As counter-intuitive as this maybe, the risk of investing in equities is the same regardless of your time horizon. If time diversification works, then the equity risk-premium by definition must approach to the risk less rate as one's time horizon approaches infinity. Research about it long enough, and you will begin to understand the time diversification fallacy.
If I start say a 7-year FIA and attach an income rider, do I have to keep that 7-year FIA till I die in order to get the guaranteed income for life stream from the income rider? If so, and on the way to my death date (paying 1% or more annual income rider fee) and I turn on the income stream at some point, am I depleting the FIA until zero and then the income rider kicks in?
Really enjoyed this episode, terrific!
Thank you guys!
57:22 "Success is: Wanting to wake up in the morning" :)
Fantastic interview and content from Professor Milevsky, thanks for doing this! Loved Pensionize Your Nest Egg, but as you point out, people are not keen on buying annuities.
The one point I would debate with Mr. Milevsky is his take on active management - I have seen no evidence that anyone can consistently beat the markets.
Early upload guys
that guy is a knob
Very informative and entertaining
Watched from the beginning to the end !
Amazing episode
Gents, i really enjoy your work. Perhaps a tad too much; keep this up! This interview left so many skid-marks on my brain... I don’t think there is any untouched surface left.
The book about investing history is exactly the kind of thing I've been looking for. Hope it becomes a reality soon.
What assurance does a person who buys an annuity have if the company it bought it from go bankrupt ?
Great conversation. I enjoyed this episode. Milevsky was a really interesting guest.
Hilarious conversation. But important key points to consider.
Fabulous guest! I really enjoyed this episode.