Feb 22, 2019
Welcome to Episode 34 of the Rational Reminder Podcast. Today we
are discussing how our new ETF model portfolios will be employed to
better accommodate our non-client listeners to whom Dimensional
Fund Advisors are not as relevant. We talk about how BlackRock and
Vanguard are dominating the market, why the US is leading in
passive investment and why traditional financial planning needs to
be re-evaluated. In addressing our main topic—safe savings rates—we
explore the need for moving away from a focus exclusively on wealth
accumulation to an approach more concerned with a safe savings
strategy. We ask the all-important question, “How much will I need
a month when I stop working?” and provide helpful guidelines on how
focusing on the process rather than on the number that can help you
to achieve your financial goals. Join us today to find out how you
can adopt a safe savings approach!
Key Points From This Episode:
- How we will accommodate non-client listeners using ETF model
- The issue of accessibility with Dimensional Fund Advisors.
- How the world is exploding with asset allocation ETFs.
- The dominance of BlackRock and Vanguard in the market.
- How the US is leading in passive management.
- What the Vanguard-effect does [0:10:27.0]
- Investing in factor funds versus portfolios of factor funds.
- The benefit of having a one-decision portfolio that has a
variety of different factors. [0:13:28.0]
- Factor returns versus smart beta returns.
- Why low beta looks good on the factor side, but bad on the
implementation side. [0:16:19.0]
- More about the 4% rule. [0:17:35.0]
- The four steps of traditional financial planning.
- Pfau’s suggestion for a better alternative to traditional
financial planning [0:20:27.0]
- What your savings rate should be
- The benefit of having a safe savings approach rather than
focusing on wealth accumulation. [0:25:09.0]
- The challenge of knowing how much you need when you stop
- Why you need to focus on the habit rather than on the target.
- And much more!