Saving Investors

Talking Real Money - Investing Talk

Don McDonald

Education, Investing, Business, How To

4.5 • 811 Ratings

🗓️ 1 August 2025

⏱️ 31 minutes

🔗️ Recording | iTunes | RSS

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Summary

With Don out, Tom Cock and advisor Roxy Butner tackle the increasingly hot question: should you trust a human or a machine with your money? They dig into two recent studies—one showing AI beating most fund managers, and another suggesting no long-term winner at all. Listener questions range from DIY ETF portfolios and Roth IRA conversion pitfalls to a wildly complex $2.5M retirement scenario involving crypto, precious metals, and a self-directed IRA full of land. Tom and Roxy break it all down with practical advice and a few well-placed jabs at donut holes, Darth Vader, and inheritance headaches. 0:04 More machine than man? Tom opens with AI vs. human money management 1:14 Stanford AI outperforms 93% of human fund managers—sort of 2:35 Another study says: no clear winner between AI and humans 3:12 Why persistent outperformance doesn’t exist—and that’s OK 3:39 Roxy joins: paddleboards, decorating, and financial clarity 4:16 Listener question: DIY ETF portfolio for granddaughter (too complex) 5:54 Portfolio breakdown: too much large cap, bonds in a Roth? 7:44 Listener question: Switching from Vanguard Star Fund to ETFs 9:32 Roth IRA tips: stock-heavy, not for bonds or cash 10:25 Listener question: Deductible IRA mistake—now what? 11:54 Backdoor Roth IRA rules, income limits, and pro-rata traps 13:19 Recharacterization forms and Social Security timing advice 14:44 Listener question: ETF dividends—should I reinvest or not? 15:14 ETF tax basics: capital gains vs. dividends 16:42 Listener question: $2.5M+ retirement plan review from Woodstock, GA 17:14 Income breakdown: Air Force pension, SS, rental income, part-time job 18:43 Self-directed IRA full of land, CDs, and cash 19:59 Precious metals and crypto: too much risk, not enough balance 20:35 Bonds or not? Depends on goals, not age 21:55 Planning questions: What’s the money for? 23:25 RMDs and taxes from a self-directed IRA 24:27 Fair market value complications and IRS penalties 25:46 Inheriting land in an IRA: yes, it’s a pain 27:28 Wrap-up: Why human advice still matters—even if AI’s getting smarter Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Race the rudder, raise the sails, raise the sales!
0:05.0	Captain, an unidentified ship approaching. Over.
0:07.0	Roger that. Wait, is that an enterprise sales solution?
0:13.0	Reach sales professionals, not professional sailors.
0:17.0	With LinkedIn ads, you can target the right people by industry, job title, and more.
0:21.4	To get £100 off your first campaign, go to LinkedIn.com slash lead to claim your credit.
0:26.6	That's LinkedIn.com slash lead. Terms and conditions apply.
0:35.0	Reality Radio for a really great future.
0:38.0	We're talking real money.
0:40.2	Hey there.
0:40.9	Thanks for joining us on Talking Real Money.
0:42.9	Tom Cock here, Don McDonald with the day off.
0:45.7	Roxy joining us here on the show.
0:48.0	We'll talk with her in just a moment.
0:49.4	But first, there's a fairly famous line from one of the early Star Wars movies where Obi-Wan says, talking about Darth Vader, more machine than man.
1:01.0	I always like that line. In fact, I saw a friend over the weekend who's had like 11 surgeries or something, and he's a great athlete.
1:08.3	This is one of these guys really good. And I use a line, I'm like,
1:11.4	you're more machine than me. He thought it was funny. I think it's funny. But, okay, but when it comes to your money, I'm going to ask you right now, would you rather have a machine picking stocks or would you ever have a human being picking stock? Which would be better? I think a combo. I didn't, I didn't prep her on this either, by the way. I think a combo, right?
1:07.8	Use the technology available, but always, you know.
1:10.4	But who would do better and who do I think a combo. I didn't I didn't prep her on this either by the way. I think a combo, right?
1:27.7	Use the technology available, but always, you know. But who would do better? And who do you think
1:31.8	would be the better stock picker? The better investment manager, would it be artificial intelligence
	...

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