Our guest this episode is Ben Felix — Chief Investment Officer at PWL Capital, co-host of the Rational Reminder podcast and creator of one of the most respected investing YouTube channels, @BenFelixCSI. Ben is a returning guest from Episode #5, one of our most popular episodes to date.
In this episode, Dave and Ben go through a rapid-fire Q&A on some of the most important (and misunderstood) topics in investing. They cover everything from the biggest mistakes investors make to the difference between investing and gambling to why professional investors struggle to beat the market and common misconceptions about dividends. Ben and Dave also break down the flaws with covered call funds, market timing, and touch on other topics like annuities, crypto, homeownership, life insurance and all-in-one ETFs.
If you want clear, evidence-based answers to your biggest investing questions this is an episode you won’t want to miss. Tune in now on our website, YouTube, Apple Podcasts, Spotify and all other podcasting platforms!
Show Notes
(00:00) Intro & Disclaimer
(00:55) Intro to Ben Felix
(04:22) A Huge Investor Mistake: Not Owning Enough Equities
(06:04) The Difference Between Investing and Gambling
(07:33) Increasing Your Income is One of the Best Things You Can Do for Your Personal Finances
(08:55) Dave and Ben’s Advice: Don’t Trade Options
(09:40) Why Professional Investors Struggle to Beat the Market
(13:40) Misunderstandings About Dividends
(16:11) Why Covered Call Funds Underperform Over the Long Run
(20:17) Even Experts Can’t Effectively Time the Market
(23:18) High Valuations and Expected Returns
(25:12) Behavioural Traps: Overconfidence and Pessimism
(27:31) The Role of Annuities in Retirement Planning
(32:03) Crypto and Prediction Markets
(35:21) Renting vs. Owning a Home
(38:56) The True Maintenance Costs of Home Ownership and “While We’re At It”
(40:46) Is Life Insurance a Good Investment Product?
(45:03) How Often Should You Check Your Portfolio?
(46:30) The Benefits of All-in-One Asset Allocation ETFs
(48:12) The Behaviour Gap in Investing
(48:53) The Positive Evolution of the Financial Advice Industry
(54:15) Conclusion
