The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network TIP 103 : Life Inc. - Running your home finances like a business w/ Doug McCormick
Sep 11, 2016
Doug McCormick, author of Family Inc. and a West Point grad with an MBA and private equity background, explains treating your household like a business. He discusses valuing lifetime labor and education, why homeownership is consumption not investment, where to find yield today, public vs private markets, and strategies for family wealth and succession planning.
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Inflation Risk Is Asymmetrical And Hard To Insure
- Doug argues the 35-year disinflation trend cannot continue forever and inflation risk is asymmetrical: modest if lower, meaningfully harmful if higher.
- He watches labor markets, wage transparency, global growth and technology as inflation drivers, and sees retirees as most exposed.
Use Equities To Bridge Low Yield For Retirees
- For retirees facing low yields, prefer equities as the 'least bad' alternative and manage withdrawals by harvesting an equity-rich portfolio.
- Recognize retirees often underestimate their duration and can tolerate volatility to achieve consumption needs.
Diversify Geographically And Think Long Term
- Doug is broadly diversified across US, emerging markets and Europe because valuations are mixed and time horizon matters more than short-term returns.
- He avoids strong convictions on 1–4 year horizons and emphasizes long-term perspective.
