Investing expert Larry Swedroe joins Joe Anderson, CFP® and Big Al Clopine, CPA to discuss his new book on factor-based investing in episode 62 of the YMYW podcast. Larry also discusses smart beta, his take on the upcoming election, and how investors should react depending on the outcome. Original publish date September 3, 2016 (hour 2). Note that content may be outdated as rules and regulations have changed.
00:00 - Intro
02:02 - “Can the IRS take the property from my trust?”
04:38 - “How much can I collect in widow's benefits?”
08:24 - “Can I re-gift a stock?”
12:35 - “A 401(k) plan will allow someone to put an amount directly into their paycheck into an account that will grow 100% tax-deferred…it’s out of sight, out of mind.”
15:02 - “When you start tapping your retirement nest egg, there are all types of rules – if you don’t have a retirement nest egg, you have nothing to tap.”
15:50 Start of Interview with Larry Swedroe
18:27 - “We identify eight factors in this book – six for stocks and two for bonds…”
20:12 - “We should have a risk-based explanation for these premiums and/or a behavioral explanation that should hold up.”
20:20 - “The book goes through all of these issues for every one of the factors we recommend, and shows you the historical evidence.”
22:47 - “Now there’s something that’s called smart beta. What’s your take on that? That’s just factor investing with a marketing ploy isn’t it?” 24:49 “That, to me, is smart beta because it’s patient trading and over time will outperform the index.”
25:44 - “There is a thing that you can call smart beta, but 98 or 99 percent of what the industry calls smart beta is marketing hype.”
29:19 - “Never let your political views influence your investment decisions. You should have that well thought-out investment plan that has your asset allocation. The only thing you should be doing is 1) rebalancing if necessary and 2) tax managing if the opportunity to harvest a loss is there.”
33:38 - “The more you look at your portfolio, the more hazardous it potentially is to your wealth.”
35:35 - “If you can’t ignore the noise of the market…don’t check your value.”
35:55 End of Interview with Larry Swedroe