The Rational Reminder Podcast

• Episode 378: Learning from Market History

  In this episode, we are joined by Mark Higgins, an award-winning author and institutional investment advisor, to discuss the power and importance of studying US financial history. Mark brings his wealth of knowledge as a financial historian to the show as he shares the value of studying financial history, the role the financial system plays in the overall success of the US, and the impact Alexander Hamilton made on the country. We unpack government debt, the concerning levels of it in America, and the impact of having a central bank before discussing what happens, historically, when a bank is unregulated. Mark describes some early warning signs of a bubble, touches on the historical origins of flawed financial practices, and shares some important lessons we can learn from the history of the US financial system. Hear all about alternative asset classes, evergreen funds, and red flags in the private market. Finally, our guest tells us how he defines his own personal and professional success. This conversation sheds light on the history of finance in the USA and how we can learn from it, so be sure to tune in now!   Key Points From This Episode: (0:00:00) An introduction to Mark Higgins and an overview of today’s topics of discussion.  (0:04:16) The value of studying financial history and the role the financial system plays in the USA as a whole.  (0:06:33) Why Alexander Hamilton stands out in US financial history and the importance of government debt.  (0:09:29) Mark discusses the concerning debt levels in America and the impact of having a central bank. (0:12:29) What happens when banking is unregulated, and key themes across major US financial depressions. (0:16:48) Some early warning signs of a bubble and the problematic nature of speculation and comparison.  (0:19:42) Historical parallels for crypto and meme stocks and the historical origin of flawed practices in the investment industry.  (0:24:27) Mark shares some of the most important lessons we can learn from US financial history and what we may have to relearn in the future.  (0:27:41) Alternative asset classes, why so much has been allocated to them in recent history, and how modern portfolio theory is abused in the promotion of alternative investments.  (0:33:56) Mark shares his thoughts on ‘evergreen funds’, why they are so flawed, and their effects.  (0:39:51) The biggest red flags in private markets today and what he thinks will happen if retail starts taking up private assets.  (0:43:03) How often Mark sees institutions being sold alternatives, and why trustees of these institutions have to be different.  (0:49:23) Mark tells us how he defines success in his life on a personal and professional level.     Links From Today’s Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark Higgins on LinkedIn — https://www.linkedin.com/in/markhiggins/    Books From Today’s Episode: Investing in US Financial History: Understanding the Past to Forecast the Future — https://enlightenedinvestor.com/  Security Analysis — https://www.amazon.com/Security-Analysis-Principles-Benjamin-Graham/dp/007141228X  Pioneering Portfolio Management — https://www.amazon.com/Pioneering-Portfolio-Management-Unconventional-Institutional/dp/1416544690    Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

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• Episode 377: Investing in Your Health

  Your health may well be the most important investment you ever make, and the earlier you start, the better your outcomes are likely to be. In this episode, Ben Felix is joined by Ben Wilson, Portfolio Manager and Head of M&A at PWL Capital, who steps in as today’s co-host to unpack why decisions about exercise, nutrition, sleep, and mental well-being matter just as much as financial ones. They draw clear parallels between compounding wealth and compounding health, showing how small, consistent habits can add up to lasting benefits.  Choosing an exercise routine, healthy diet, or financial plan is less about quick fixes and more about finding an evidence-based approach you can stick with over time. Along the way, Ben Felix shares his personal health story with cancer, and the two Bens break down the four pillars of health before reflecting on how relationships and resilience play into long-term happiness. The episode also tackles an essential financial planning topic: the questions every client should ask about their advisor’s succession plan. Listen in for a thoughtful conversation that connects the dots between living well and planning wisely! Key Points From This Episode: (0:00:00) An introduction to Ben Wilson and an overview of today’s topics. (0:02:01) Breaking down OneDigital’s $7 billion recapitalization (and why it’s a good thing). (0:08:26) Recapitalizations explained: liquidity, valuations, and continuity. (0:15:08) Introducing the main theme: investing in health like investing in wealth. (0:19:30) An update on Ben Felix’s cancer story and the importance of early health checks. (0:21:13) Investing in your lifespan and your healthspan by building healthy habits. (0:29:35) Four pillars of health: exercise, nutrition, sleep, and mental well-being. (0:33:39) Similarities between strength training and saving for retirement: both build reserves. (0:39:34) Debates surrounding nutrition and enduring principles that are broadly agreed on. (0:44:44) The importance of good sleep and how to build good sleep habits. (0:47:46) Why investing in mental health and relationships is so valuable. (0:52:06) The ripple effect: how sleep, nutrition, exercise, and relationships reinforce each other. (0:54:04) Key questions to ask about your financial advisor’s succession plan. (01:08:44) After show segment: listener review, west coast meetups, and 2026 meetup plans. Links From Today’s Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p Rational Reminder on iTunes —https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X —https://x.com/RationalRemind Rational Reminder on TikTok— www.tiktok.com/@rationalreminder Rational Reminder on YouTube —https://www.youtube.com/channel/ Rational Reminder Email —[email protected] Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Ben Wilson on LinkedIn — https://www.linkedin.com/in/ben-wilson/ Books From Today’s Episode: Outlive: The Science and Art of Longevity — https://peterattiamd.com/outlive/ The Power of Regret: How Looking Backward Moves Us Forward — https://www.amazon.com/Power-Regret-Looking-Backward-Forward/dp/B098VRLZ2H The Ripple Effect — https://www.amazon.com/Ripple-Effect-Sleep-Better-Think/dp/1443436933 Papers From Today’s Episode: ‘Trends in Health Equity in the United States by Race/Ethnicity, Sex, and Income, 1993-2017’ — https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2736934 ‘Association of Cardiorespiratory Fitness With Long-term Mortality Among Adults Undergoing Exercise Treadmill Testing’ — https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2707428 Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

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• Episode 376: Climbing The Wealth Ladder

  Are your financial decisions evolving as your wealth grows? In this episode of the Rational Reminder Podcast, we welcome back Nick Maggiulli to unpack his approach to climbing the wealth ladder and creating the life you want. Nick is the Chief Operating Officer at Ritholtz Wealth Management, the author of The Wealth Ladder and Just Keep Buying, and creator of the blog Of Dollars and Data. He is renowned for his ability to take the complexity out of finance and for his deep knowledge of investing. In our conversation, Nick explains his new framework for building wealth in his new book, The Wealth Ladder, and he unpacks how spending, income, and investing should change from one level to the next. He breaks down his .01% and 1% rules for spending and income, how the opportunity cost of time changes with wealth, and what the data reveals about income, wealth, and asset composition between different levels. Nick also shares strategies to progress between levels, insights on the challenges of extreme wealth, and why focusing on non-financial forms of wealth is important. Join us for a practical, data-driven framework for thinking about financial decisions and what truly constitutes ‘enough’ with Nick Maggiulli! Key Points From This Episode: (0:00:00) Nick Maggiull, his new book, and his background at Ritholtz Wealth Management. (0:03:48) The Wealth Ladder, its different levels, and why he thinks the concept is important. (0:06:59) Hear about the 0.01% rule for spending, and examples of The Wealth Ladder levels. (0:12:09) Unpack the 1% rule and how the opportunity cost of time changes up the ladder. (0:15:00) Explore how income determines wealth and how to move up and down the ladder. (0:19:47) Which level is the most common to fall, and how wealth changes up the ladder. (0:22:34) What shifting wealth composition indicates and how to move from level one to two. (0:25:48) When education should be the focus, and what it takes to move out of level three. (0:29:41) Discover the pros and cons of a side hustle and why controlled spending is crucial. (0:33:32) Learn the key to reaching level five and why people fall out of levels four and five.  (0:39:20) Insights on the downsides of extreme wealth and how it impacts lifestyle.  (0:42:54) How long it takes to climb the ladder and the correlation between age and wealth. (0:46:10) Why financial persistence is vital and what a typical millionaire household looks like. (0:49:00) Find out what constitutes ‘enough’ financially and examples of other forms of wealth. (0:51:56) Nick shares what he hopes readers will take away from the book and how it impacted his view of success.   Links From Today’s Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Nick Maggiulli — http://ofdollarsanddata.com/ Nick Maggiulli on LinkedIn — https://linkedin.com/in/nickmaggiulli/ Nick Maggiulli on Twitter — https://twitter.com/dollarsanddata  Nick Maggiulli on Instagram — https://instagram.com/nickmaggiulli Ritholtz Wealth Management — https://www.ritholtzwealth.com/ Episode 145: Jennifer Risher: Talking About Money — https://rationalreminder.ca/podcast/145 Episode 255: Structured Products — https://rationalreminder.ca/podcast/255 The Panel Survey of Income Dynamics (PSID) — https://www.bls.gov/cex/cecomparison/psid_profile.htm Preston Holland on X — https://x.com/prestonholland6   Books From Today’s Episode: Just Keep Buying — https://www.amazon.com/Just-Keep-Buying-Proven-wealth-ebook/dp/B09FYHZXBN The Wealth Ladder — https://www.amazon.com/dp/0593854039 Portfolios of the Poor — http://www.portfoliosofthepoor.com/ The 5 Types of Wealth — https://www.the5typesofwealth.com/   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

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• Episode 375: Covered Calls: A Devil's Bargain

  In this episode, Ben and Dan take a deep dive into covered call strategies—popular ETFs often marketed on their eye-catching distribution yields. While these products promise steady “income,” the reality is more complicated. Drawing on recent research from the Journal of Alternative Investments (“A Devil’s Bargain: When Generating Income Undermines Investment Returns”), Ben and Dan unpack why covered calls often reduce expected returns, cap the upside of equities, and leave investors fully exposed to the downside. They explain how covered calls work, why yields are misleadingly presented as “income,” and why long-term investors may find themselves worse off over time compared to simply holding equities or combining equities with cash. The conversation covers live fund performance, behavioral biases that drive demand for yield, and the rise of extreme products like single-stock covered call ETFs with 40%+ “yields.” While covered calls may offer psychological appeal for investors who crave distributions, the evidence shows they often deliver lower total returns, higher costs, and asymmetric risk. If it sounds too good to be true, it probably is—and nowhere is that clearer than in the world of covered call ETFs. Key Points From This Episode: (0:01:09) Why “14% yield” claims on covered call funds are misleading. (0:02:35) Revisiting covered calls: “A Devil’s Bargain” and new research insights. (0:05:24) The deep-seated investor preference for income—and how fund companies exploit it. (0:10:10) What a call option is and how it caps upside while leaving downside intact. (0:14:53) Why selling calls lowers expected returns and distorts stock return patterns. (0:20:25) The volatility risk premium: theory versus retail investor reality. (0:22:17) How crowded trades since 2011 erased much of the benefit of covered calls. (0:24:56) Why stocks’ mean reversion makes covered calls especially damaging for long-term investors. (0:28:11) The illusion of “income”: distributions versus true total returns. (0:34:41) Evidence from live funds: BMO utilities and banks covered call ETFs. (0:40:53) Underperformance across rolling periods—covered calls vs. their underlying. (0:46:17) JEPI and cult-like covered call products: big marketing, poor long-term results. (0:47:36) The rise of single-stock covered call ETFs—and why they’re worse. (0:53:45) Higher costs: MERs and trading expenses add to the drag. (0:57:25) Why marketing yields as “income” is financial BS. (0:58:47) Final verdict: covered calls are more likely to harm than help investors’ outcomes. Links From Today’s Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Dan Bortolotti — https://pwlcapital.com/our-team/ Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310 Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

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• Episode 374: The Underperformance of Target Date Funds

  In this episode, we’re joined by David C. Brown, Associate Professor of Finance at the University of Arizona, for a deep dive into the mechanics, performance, and pitfalls of target date funds (TDFs)—the most common investment vehicle in U.S. retirement accounts. David has spent years researching glide paths, benchmarking methods, and industry practices to uncover whether these “set it and forget it” funds actually serve investors well. We unpack why benchmarking TDFs is so difficult, what really drives their underperformance, and how tactical deviations from strategic glide paths often harm investors. David explains how fees, active management, and fund structure combine to create persistent drag—and why dispersion across TDF providers is shockingly wide. We also discuss behavioral challenges, the influence of glide path design, and whether innovations like “indexing the indexers” could improve outcomes. David also shares insights on his side project, the Microsoft Excel Collegiate Challenge, where students compete in gamified problem-solving competitions (yes, Excel on ESPN!), and reflects on his own definition of success. This conversation sheds light on a massively important—but often misunderstood—corner of the retirement landscape, giving investors and plan sponsors practical tools to demand better.   Key Points From This Episode: (0:05:20) What a Qualified Default Investment Alternative (QDIA) is and why TDFs became the default in 2006. (0:05:50) How target date funds work as “one-stop shops” for retirement savings. (0:07:12) The glide path concept: why equity allocations decrease with age. (0:08:04) Why comparing TDFs is hard—fund families design glide paths differently. (0:10:37) David’s benchmarking approach: replicating TDFs with index funds. (0:15:13) The performance gap: ~1% annual underperformance versus replicating benchmarks. (0:15:50) Main culprits: higher fees (~55 bps) and poor active management (~45 bps). (0:18:20) Good news: costs have declined—but dispersion across providers remains massive. (0:20:09) Evidence of wild return differences: up to 23% in a single month across vintages. (0:21:32) Why plan sponsors and investors aren’t reacting to poor performance. (0:25:33) The debate over optimal glide paths—and why the jury is still out. (0:29:15) Tactical deviations: managers shifting allocations beyond the strategic design. (0:33:06) These tactical moves hurt performance (~10 bps on average). (0:35:49) Evidence of return chasing in TDF management. (0:39:07) Big picture: TDFs are a huge improvement over money market defaults, but dispersion and inefficiency remain. (0:42:48) David’s views on Scott Cederberg’s 100% equity lifecycle portfolio research. (0:45:22) Behavioral challenges: why defaults and illiquidity may help investors stay the course. (0:50:57) The Microsoft Excel Collegiate Challenge—Excel as an esport. (0:52:50) How David defines success: balance, impact, and growth. Links From Today’s Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/  Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemind Rational Reminder on TikTok — www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — [email protected] Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/   Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

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