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Talking Real Money - Investing Talk

Rules of Thumb

Talking Real Money - Investing Talk

Don McDonald

Education, Business, Investing, How To

4.5811 Ratings

🗓️ 24 February 2026

⏱️ 39 minutes

🧾️ Download transcript

Summary

This episode moves from the origin of “rule of thumb” to why most investing rules of thumb don’t work for real people. Tom and Don explore a Yale professor’s personalized allocation model, walk through tax-smart strategies for funding a child’s car while managing Roth conversions and capital gains, warn about liquidity risks in private credit after restrictions at Blue Owl Capital, explain how to structure IRA withdrawals through disciplined rebalancing, and close by addressing market-timing ...

Transcript

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0:00.0

reality radio for a really great future we're talking real money real money real life really

0:11.8

important hello everyone i am don macdonald along with tom cock doing the talking real money

0:18.7

thing that we do every saturday then turning it into a podcast during

0:24.3

the week. So here's an invitation for you. You got a question about money? Oh, well, do we have a

0:30.9

phone number for you? That phone number is 855-935. Talk 855-935-8-2-5-5 give us a call i have a question for you tom yes what is the origin of

0:45.9

the phrase the adage rule of thumb what does what what what is the well how did that originate i'm not going to cheat and look it up, and I'm just going to say I don't know. Is that when the is that when the Romans cut off your thumb if you were wrong? Actually the from the crook of your thumb the joint to the tip of your thumb. Yeah. About how about how long is that? About four inches. No, from the crook of you from the the the the top part of your thumb. About how long is that? About four inches? No, from the crook of you, from the, the, the top part of your thumb, this part right up here. How big is that? What would you guess that is? About an inch? Yeah, inch and a half maybe. No, it's almost exactly, unless you have a really long thumb, which you don't. You know, I'm warped in many ways. And I know, you're going for the hand thing.

1:28.2

I get it.

1:28.7

Uh-huh.

1:28.9

Not working.

1:29.6

You're too old.

1:30.2

It doesn't matter anyway.

1:31.4

Anyway, this is an inch approximately.

1:35.4

Okay.

1:35.7

Okay.

1:35.7

So the rule of thumb is they would measure something.

1:39.9

That's the rule of thumb.

1:41.0

It's like, originally, a horse was how many hands high?

1:46.3

Right.

1:46.6

They measured in hands, five hands, all that stuff.

1:49.2

A cubit is from the distance from your elbow to your fingertip.

1:54.6

That's a cubit.

1:55.7

You always wanted to know what a cubit was, didn't you?

...

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