Investment Rule One—Avoid Ruin

Money For the Rest of Us

J. David Stein

Investing, Investing Podcast, Business, Economics, Economy

4.5 • 1.4K Ratings

🗓️ 24 April 2019

⏱️ 33 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

How reducing exposure to a catastrophic event, such as running out of money during retirement, is a better strategy than trying to accurately predict a catastrophic event.

In this episode you’ll learn:

How repeated exposures to low probability events can lead to ruin.
How bonds have outperformed stocks over long stretches of time .
How the success of retirement spending rules depend on the market environment and why a flexible approach to retirement spending makes the most sense given the wide variety of risk factors.

Thanks to WIX and Policy Genius for sponsoring the episode.

For show notes and more information on this episode click here.

[0:20] Celebrating 250 episodes - thank you for listening!
[1:51] 3 individuals who have greatly influenced David’s passion for good investing.
[2:37] The sequence of life - and how you are affected by it - matters.
[9:21] Defining risk and modifying exposure.
[9:53] Case study: bonds vs. stocks.
[15:34] The conditions for premium dividend yield.
[18:00] Spending rules for retirement.
[23:04] Considering worst-case scenarios.
[26:10] Best strategies for retirement planning.

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Transcript

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0:00.0	Welcome to Money for the rest of us. This is a personal finance show on money, how it works, how to invest in how to live without worrying about it.
0:09.0	I'm your host David Stein and today is episode 250.
0:13.6	250 episodes.
0:15.5	It's titled Rule Number One, Avoid Ruin.
0:21.0	Next month, May 2019 will be my fifth anniversary of the podcast.
0:26.0	I've recorded over 250 episodes, this is numbered episode 250.
0:31.0	The show has had over 10 million downloads. There are a thousand
0:36.8	premium subscribers who are members of money for the rest of us plus. They get
0:40.7	the ad-free version of the podcast, plus additional content.
0:44.7	There are over 220 Q&A-plus episodes, dozens and dozens of monthly investment conditions reports,
0:51.2	model portfolios, so I'm producing a lot of content, and by doing so I get better.
0:58.1	That's what I've learned about doing the show or doing anything for some like the time.
1:03.0	It's that way with investing,
1:05.0	it's that way with audio, it's that way for video.
1:07.0	I record a weekly video, or most weeks, on YouTube.
1:11.0	I'm getting better.
1:12.0	There are things I know about audio recording now that I didn't
1:16.1	know five years ago. It didn't even occur to me. Small nuances and I do the show because it helps me learn but it also helps me to
1:27.0	improve on my craft.
1:30.0	Thank you for listening.
1:32.0	For many of you listened from the beginning. Thank you for listening. For many of you listened from the beginning.
1:34.0	Thank you for sharing the podcast with others. That I really, really appreciate.
	...

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