Today, Evan asks Dan about what he sees as a stumbling block for most investors: their 401(k) options. Dan breaks down why the most common target date funds (TDFs) come up short in every category that PWI looks for in a diversified portfolio. Listen along as these advisors look at some options in a 401(k) and how an advisor can keep you from having a portfolio with higher risk and lower potential returns. Evan closes the show with some good news about the average 2023 tax burden by state.

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Today, Anne shares an increasingly popular scam that targets lonely people and takes their retirement savings. Ira shares a story about a friend who claims that owning as much gold as possible is the way to go, but who happens to be a jeweler. Listen along as these advisors discuss how scams or misleading sales pitches usually leave people feeling like they can’t understand investing, making people easier to take advantage of. Later in the episode, a large investment firm tries to create a “no fee” robo-investing option to compete with Robin Hood. They end up with a lawsuit for forcing clients to hold cash so they can make money by lending with it

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Today, Paul continues his conversation about target date funds (TDFs) and explains what kinds of companies these funds actually own. Paul explains that these funds grossly favor larger companies over smaller ones, growth companies over value, and US companies over international. All of this adds up to much higher risk and lower returns. Listen along as Paul shares why investing in a target date fund is similar to betting your future on the success of the seven largest US companies.

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Fewer companies are offering pensions in today’s job market, which leaves investors having to choose their own retirement products. Today, Paul explains that target date funds (TDFs) have become such a popular product because they are easy to sell to people who don’t understand much about investing. Listen along as Paul breaks down some of the language used to sell target date funds to employers and investors and explains why they don’t perform as advertised.

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Today, Paul explains that the basics of investing are easy to forget and that emotions often play a bigger role in investing decisions than we’d like to think. One example of this that is easy to spot is American investors and American investment firm’s obsessing over US companies. Listen along as Paul explains how American investors get groomed to believe that the market is only US companies, and how investment firms either sell products that are overweighted in US companies or only sell international funds after they’ve gone up and are “easier” to sell. Both of these practices violate the basic investing principles of diversification and avoiding marketing timing. Later in the episode, Paul finds an article that addresses the stress of stepping away from adult children financially and helping them learn independence.

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Today, Paul gets a question from a listener who wants to know: “A financial advisor wants me to sell my investment property and invest with them. Isn’t that a conflict of interest?” Paul approaches the question by asking the investor about his goals and how this would affect his financial future. Listen along as Paul explains why you can’t avoid conflicts of interest in this sales-driven industry, but you can learn how to spot it and make the right choices for your situation. Later in the show, Paul talks about the temptation to watch what the rich are doing with their money and copy them, and he explains why you probably have more experience under your belt than they do.

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