Leverage Dangers

Talking Real Money - Investing Talk

Don McDonald

Investing, Education, Business, How To

4.5 • 810 Ratings

🗓️ 6 November 2025

⏱️ 28 minutes

🔗️ Recording | iTunes | RSS

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Summary

Don and Tom take listeners on a wild ride through the booming (and frequently disastrous) world of leveraged ETFs. They break down how these funds promise double or triple the excitement but mathematically bleed away returns through volatility decay. A few listener questions follow, covering retirement cash buffers, negotiating advisory fees on large portfolios, and comparing IRTR vs AOM for a near-retiree allocation. Humor, subtle self-mockery, a Jonas Brothers detour, and a reminder that ga...

Transcript

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0:00.0	Reality Radio for a really great future.
0:08.0	We're talking real money.
0:10.4	Well, if you're one of those folks who absolutely loves a volatile market, just craves, huge losses,
0:19.6	the excitement of big ups and big downs in your portfolio.
0:24.1	Well, folks, you really need to get in on the latest hot craze on Wall Street,
0:30.0	and that's leveraged ETFs.
0:34.9	Heavily leveraged exchange traded funds.
0:38.9	Nothing could be more exciting and more frightening than these strange, hybrid, bizarre
0:47.6	investments.
0:48.4	Hello everyone.
0:49.4	Hello, everyone in Nunciate Don.
0:51.8	I'm Don McDonald.
0:53.3	That's Tom Cock. He's in the Bellevue studio. I'm in
0:57.9	Florida. And we're here to talk real money. Yeah. And it's strange that you would say that's one of the
1:02.3	most exciting things as a guy who just went to Disney World. I mean, they've got exciting things there,
1:06.3	right, that are way better than leveraged ETS. Disney's pretty middle of the road.
1:12.2	They're pretty tame.
1:13.1	If you want excitement, you go to Islands of Adventure there, or not Islands of Adventure,
1:18.9	what's the new park?
1:20.6	Twist you turn.
1:21.4	Epic Universe.
1:22.2	Yeah.
	...

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