Process Over Panic: Investing with Charles Ellis

Retirement Answer Man

Roger Whitney, CFP®, CIMA®, RMA, CPWA®

Lifeplanning, Retirementplanning, Financialplanning, Saving, Careerplanning, Self-improvement, Education, Retirementpodcast, Investing, Business, Investmentmanagement, Retirement

4.7 • 1.1K Ratings

🗓️ 21 May 2025

⏱️ 76 minutes

🔗️ Recording | iTunes | RSS

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Summary

💬 Show Notes

In this episode, Roger sits down with renowned investment expert Charles Ellis to explore what truly matters in retirement investing. Together, they focus on the key elements investors can actually control, the importance of maintaining cash reserves in retirement, and practical strategies to manage inflation risk.

Roger and Charles also revisit timeless lessons from Ellis’s classic book, Winning the Loser’s Game, drawing on his decades of experience in investment management. The episode wraps up with thoughtful answers to listener questions on asset allocation, indexing, and rebalancing.

SUMMARY OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

(00:00) Today the show is going to focus on investing.
(01:15) Roger explains the pie-cake and says there will be a video in The Noodle this week.
(02:38) What can we control and what can we not control in regards to investing?
(04:55) Let’s talk about building a retirement portfolio.
(06:52) What can you NOT control when building out a portfolio?
(09:40) What can you control in retirement planning?

INTERVIEW WITH CHARLES ELLIS

(13:24) Roger introduces Dr. Charles Ellis, author of Winning the Loser’s Game.
(18:54) Roger asks Charlie about indexing and passive investing.
(24:32) Dr Ellis talks about behavioral economics and recommends the book Thinking Fast and Thinking Slow.
(27:20) Roger talks to Dr. Ellis about minimizing unforced errors
(30:30) How do things change when you're in retirement and need to draw from assets?
(35:32) Roger says for an average person, the concept of having all of their financial assets in equities would be unnerving. What advice would you give to someone who doesn’t understand the financial concepts and the kind of volatility comes with this kind of account?
(38:43) Dr. Ellis talks about the current administration and the economy and how difficult times don’t last.
(42:02) Roger asks Dr. Ellis about his choice to not retire.
(46:34) Roger asks a question: What advice would you give me so I don’t look back with regret when I’m your age?
(51:34) Dr. Ellis answers a question about fear and worry regarding the future.
(54:22) Roger thanks Dr. Ellis for writing his books and helping so many.

LISTENER QUESTIONS

(54:52) Today's show will focus on investing questions.
(55:11) Kevin says he doesn’t understand Roger’s concept of pie-cake- how to allocate your resources to fund your life.
(56:28) Vince submitted an audio question about the retirement floor.
(59:42) John asks for Roger’s thoughts on investing in multiple index funds versus all-in-one funds. And what is the difference between a mutual fund and an index?
(01:08:07) Ben asks about rebalancing and current market conditions.

SMART SPRINT

(01:12:30) In the next seven days, take an assessment of the process you use when investing your assets for retirement.

BONUS

(01:13:28) Roger thanks listeners for their positive feedback.
(01:14:13) Roger reads from his grandfather’s WWII journal.

REFERENCES

Books

Show notes created by https://headliner.app

Transcript

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0:00.0	Real risk is simple.
0:03.1	Not enough cash when money is really needed.
0:06.7	Like running out of gas in the desert.
0:09.0	Charles Ellis.
0:13.8	Welcome to the show dedicated to helping you not just survive retirement,
0:17.5	but to have the confidence you're not going to run out of gas in the desert
0:20.4	so you can lean in and create a great life.
0:24.9	So today on the show, we're going to continue this month-long theme on process over panic.
0:29.8	And we're going to focus on investing, and we've got three things on deck today.
0:34.1	Number one, we're going to talk about the controllables. What can you control when you're
0:39.8	building a retirement portfolio? What can you not control and why it's important to understand this?
0:45.7	Two, we're going to have a conversation with Charles Ellis, who is a legend in the investment
0:50.7	management industry. His book, Winning the Losers game, was pivotal in the industry, but also in my life,
0:58.1	and he's written 20 books.
1:00.0	Great conversation with him.
1:01.2	He's a wonderful dude.
1:03.3	And then lastly, we're going to answer some of your questions related to the pie cake,
1:07.4	to indexing, and rebalancing.
1:10.5	Now, before we get started, in relation to the pie cake, that is my phrase for how a proper
1:17.2	portfolio should be constructed to give you confidence to fund retirement.
1:22.3	The problem is I create these little phrases, pie cake, et cetera, because they help me make
1:26.3	sense of the world, but you don't live in my head, and that's a good thing.
	...

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