Building Wealth When Markets Get Messy w/ Ben Carlson #1136

15 snips

May 6, 2026

Ben Carlson, Director of Institutional Asset Management and author of Risk and Reward, brings common sense to investing. He tackles why headlines warp our sense of risk, how your time horizon should shape portfolio choices, the case for international diversification, stress-testing strategies, cash as dry powder, and why timing markets and overtrading often backfire.

Ask episode

AI Snips

Chapters

Books

Transcript

Episode notes

INSIGHT

Information Overload Distorts Risk Perception

The information overload from 24/7 news and social media makes people overestimate dramatic but rare risks.
Ben notes our brains didn't evolve for constant exposure, so we fixate on existential headlines instead of personal, controllable risks.

ADVICE

Make Time Horizon Your Primary Risk Filter

Determine when you'll need the money; time horizon is the primary driver of investment risk.
If you need funds in a few years, avoid stocks; for decades-long horizons, short-term volatility matters less.

INSIGHT

Japan Shows The Danger Of Concentration

Japan's three-plus decades of stagnation show concentrated bets can devastate returns for long periods.
Owning the global market softened the blow: broad diversification avoided Japan-only devastation.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

Shark attacks, plane crashes, and lightning strikes… these are the dramatic and headline-grabbing events that are terrifying but incredibly rare. The odds you’ll ever experience those unfortunate events are tiny, so is it technically risky? Meanwhile, something as ordinary as driving to work should be considered more often since in the US, there are 6 million car accidents a year! When you start looking closely, risk and reward show up everywhere in our lives. And for investors especially, understanding the REAL risks we face, not the ones that dominate headlines, is essential to building a strategy that truly works. Our guest today has made it his mission to bring common sense back to finance. Ben Carlson is the Director of Institutional Asset Management at Ritholtz Wealth Management, where he focuses on managing portfolios for institutions and individuals. He is the creator of the widely read blog A Wealth of Common Sense and the author of several books on investing, including his new release, Risk and Reward. Today we discuss:

Over-indexing on existential risk vs personal risk
“When do you need your money?”
Stress testing your investments
International’s spot in a portfolio
Timing the AI “bubble”
Role of cash in investments, but also in personal finance
Protecting your wealth from inflation
Bonds for younger investors
Adopting a long term investing mindset
Treating “future you” like a bill
And much more!

Can’t get enough How To Money? Here are some additional ways to get ahead with your personal finances:

Ben: Check out Ben’s new book, Risk & Reward: How to handle market volatility and build long-term wealth.
Cashback credit cards: Check out our favorite credit cards that we use to maximize rewards and optimize our spending.
Other money nerds: Find a thriving community of fellow money nerds by joining the HTM Facebook group!
Newsletter: Sign up for the weekly HTM newsletter. It’s fun, free, & practical.
Money Gears: knowing what to do with your money is crucial to your personal finance journey.
MG7: and maybe you’re well on your way to financial independence but you’re looking for some financial reassurance, that’s when heading over to HowToMoney.com/Advisor and getting matched with a highly vetted financial advisor makes sense.

And please help us to spread the word by letting friends and family know about How to Money! Hit the share button, subscribe if you’re not already a regular listener, and give us a quick review in Apple Podcasts or wherever you get your podcasts. Help us to change the conversation around personal finance and get more people doing smart things with their money!

Best friends out!

See omnystudio.com/listener for privacy information.