Less Risk Can Cost More

Talking Real Money - Investing Talk

Don McDonald

Business, Education, Investing, How To

4.2 • 680 Ratings

🗓️ 22 April 2025

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

Don flies solo on this episode of Talking Real Money, fielding calls and calling out the nonsense in fancy investment gimmicks. From market-neutral funds to buffered ETFs, he lays out the case for simplicity, diversification, and discipline over complexity and high fees. Along the way, he compares real-world returns of flashy funds to the humble Vanguard Balanced Index, explains the math behind risk and reward, and gently teases listeners dabbling in covered calls and premium farming. With real estate worries, Schwab steak dinners, and Tesla bulls turned cautious, this episode is classic Don: blunt, funny, and laser-focused on keeping it real… money. 0:04 Friendly welcome and a call for co-hosting help as Don flies solo 1:16 Call-in number shared, and Don apologizes for occasionally sounding political 3:01 Markets are volatile—skip the politics, let’s talk practical moves 3:59 Media fear-mongering and the pitch for “alternatives” 5:13 Barron's & WSJ pitch fancy stuff—Don calls it gimmickry 7:15 Long-term market history shows why patience wins 8:54 The Campbell Systematic Macro Fund vs Vanguard Balanced Index 11:20 Comparing performance, risk, and costs—spoiler: Vanguard wins 12:45 Complexity benefits salespeople, not investors 13:33 Jim from Tacoma asks about “buffered ETFs” 14:02 Don explains buffered ETFs, costs, and gimmick risk 16:23 The danger of complex products with little upside 17:41 Expense ratios and risk in buffered funds vs Vanguard again 19:34 Greg from Florida gets pitched “Schwab Personalized Indexing” over grouper 22:15 Direct indexing: useful, but only for big portfolios 23:20 Planning is more powerful than piecemeal strategies 25:58 High costs, tax strategies, and why a real plan matters 28:00 Laura in Olympia asks about selling her home to retire 29:24 Market timing fears and the power of diversification 30:59 Passive income myth and the burden of managing property 31:56 Adjusting risk with age and leaning on fiduciary advice 33:14 Real estate market is strong—Don gives Laura confidence 34:34 Jason from Sammamish—the “Tesla Bull”—asks about premium farming 36:01 Writing covered calls to buy into VONG—Don offers cautious perspective 37:51 Don’s stockbroker days and every strategy eventually failing 39:09 Covered calls as fun, not a serious strategy—Don doesn’t want copycats 39:52 Don signs off with a reminder: invest simply, plan wisely, and stop guessing Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Rated T for Teen.
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0:22.2	Hit the new Tony Hawk's Pro Skater 3 and 4 and show the world that the shred's not dead.
0:26.4	Pre-order Tony Hawk's Pro Skater 3 and 4 and play the Foundry demo.
0:34.9	Reality Radio for a really great future. We talking real money hello friends and people who are
0:43.4	just sort of acquaintances or maybe even people who've never listened before hope you become a friend
0:48.9	i'm don macdonald welcome to talking real money the radio show that becomes a podcast next week.
0:57.7	And I'm here to, well, spend some time trying to help you manage money better than you did before.
1:04.5	That's our goal and has been our goal for, geez, such a very long time.
1:17.8	And I'm alone today. I'm by myself tom is on a plane uh somewhere between phoenix and seattle and so uh it's just you guys and me which means i rely upon you a lot more
1:27.3	i know i know i know I know, I know.
1:29.1	I know it's additional pressure.
1:30.9	But I'm relying on you to join me here on the program and kind of be my wing manner
1:38.1	woman, my semi-co-host, my asker of questions, and I'll be your answerer. 855-935 Talk is our phone number.
1:48.9	That's 855-935-8255. It's really easy. We do it every Saturday from noon to two Pacific time on Northwest News Radio.
2:00.5	And then, you know, the nice thing about this is that next week it'll be a podcast and you can go listen again.
2:06.9	So call 855-935-tall 855-935-8-35-9-35-8-25-5.
2:15.1	I'm Don McDonald and I've made some of you angry. I apologize. I do. I'm really trying very, very, very hard not to be too political. I get yelled at if I say anything that even comes across is political.
	...

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