Money For the Rest of Us

#245 With more and more college degrees being granted and higher student loan balances, when does it make sense to go to a highly selective college or to college at all? What can increase earnings more than just having college degree? Thanks to TripActions and Shipstation for sponsoring the episode.For show notes and more information on this episode click here.[0:17] The price paid by parents for their children’s prestigious degrees.[3:28] David’s college experience.[5:14] Does ambition or a selective school earn more?[7:44] The influence of family background.[9:32] The importance of college networking.[10:30] Overcoming discrimination.[12:12] College degrees as hiring filters.[15:45] How much student debt should you take on?[20:28] Student loan forgiveness.[23:36] Is college worth it?See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#244 How we can use filters to better manage how much we spend and make sure our spending has a meaningful impact on ourselves and the world. Thanks to EveryPlate and LinkedIn for sponsoring the episode.For show notes and more information on this episode click here.[0:16] The FIRE movement and how much you need to retire early.[1:23] What are we supposed to be seeking?[3:23] How do we define the “bare necessities?”[8:58] The superfluous things in life are what we spend our money on.[11:12] Finding joy vs. chasing pleasure.[13:51] Skills to reduce spending in order to retire early.[15:41] Establishing filters to lessen our spending.[18:51] Rethinking materialism.[21:01] There will always be more.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#243 What are the key metrics to determine if you have reached financial independence and can retire early. How major stock market losses can derail early retirement plans and what to do about it. Thanks to Sleep Number and Blinkist for sponsoring the episode.For show notes and more information on this episode click here.[0:19] Interview opportunity with Suze Orman.[1:15] FIRE: Financially Independent Retire Early.[2:06] Suze’s response to the FIRE movement.[3:36] Controversy over the motives driving FIRE.[6:42] Understanding the math of early retirement.[12:46] How a market loss would affect your early retirement plan.[17:26] Would the FIRE community be better prepared for a market crash?[19:03] Modeling out different paths to help prepare against catastrophe.[22:28] Utilizing different portfolio drivers.[23:53] Viewing early retirement success in terms of probability.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#242. Does it make financial sense to buy Berkshire Hathaway stock and let Warren Buffett and Charlie Munger manage your money? We evaluate Berkshire Hathaway's people, investment process and performance to determine what to do. Thanks to ShipStation and The Great Courses Plus for sponsoring the episode.For show notes and more information on this episode click here.[00:19] Berkshire Hathaway as a money manager.[1:49] Looking at the people to determining who to hire as a money manager.[3:37] What is the succession plan of the founding partners?[5:57] Berkshire Hathaway’s process - a two-pronged approach.[11:49] Understanding the mistakes that Berkshire Hathaway has made.[16:18] Comparing the performance of Berkshire Hathaway to the SP 500.[20:29] Taking the red flags into consideration.[21:51] Warren Buffett’s investment philosophy.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#241 Why modern monetary theory isn't worried about federal budget deficits, why budget deficits never go away and what are the risks if budget deficits get too large. We also explore what else proponents of modern monetary theory believe.For show notes and more information on this episode click here.[0:22] What is Modern Monetary Theory?[3:20] Taxes create demand for fiat money.[5:32] Taxes and government bonds don’t finance the federal government.[8:56] Budget deficits increase the net financial assets of theprivate sector.[13:16] Taxes destroy money.[13:46] The private sector determines the size of the budget deficit.[14:58] The concerns of crowding and losing faith.[19:08] Even government spending has to be constrained.[20:02] The dangers of the Federal Reserve controlling interest rates.[21:45] Modern Monetary Theory is correct in terms of how the economy actually works.[23:25] Do federal budget deficits matter?See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#240 What Henry David Thoreau can teach us about calculating costs, profits, benefits and living a life free of "quiet desperation." Thanks to Blinkist and LinkedIn for sponsoring the episode.For show notes and more information on this episode click here.0:23] Moving into a new house and considering the simplicity of Thoreau.[2:34] Preserving Ralph Waldo Emerson’s woods.[5:15] A two-year experiment living in the woods.[6:32] Calculating cost in terms of our life.[8:37] Distinguishing profit by the benefits.[10:59] Living in the present.[15:24] Using our extra time to pursue the walk.[19:45] The effects of social media and technology on millennials.[23:41] The importance of rejuvenating, unstructured time.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#239 Why successful trading of commodities futures, foreign currencies and options depends on exploiting novice traders. Thanks to Molekule and Sleep Number for sponsoring this episode.For show notes and more information on this episode click here.[0:20] Learning how to trade.[4:52] David takes a look at a trading school for himself.[9:15] Red flags in the trade school learning process.[10:32] Common mistakes in managing wealth according to the trade school.[16:29] Is the solution found in only trading and shunning the stock market?[19:48] The patented approach to trading success is based upon taking advantage of inexperienced traders.[25:09] Trading is a zero-sum game.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#238 How the U.S. mortgage market differs from the Danish mortgage market. Danish mortgage rates and defaults are lower than the U.S.. and unlike the U.S., the Danish government is not involved in protecting investors against mortgage defaults. This episode also explores how the mortgage broker industry has evolved since the housing crash. Thanks to ShipStation and The Great Courses Plus for sponsoring the episode.For show notes and more information on this episode click here.[0:23] The socialist catastrophe of Venezuela[1:42] Who is the most socialist in housing finance? Denmark or the US?[2:50] Meet Fannie Mae, Ginnie Mae, and Freddie Mac.[11:26] Danish mortgage securitization.[15:42] Why Danish borrowers actually pay less.[19:32] Who’s liable for the loan and why it makes all the difference.[22:09] Why do mortgage brokers exist, and should you use one?See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#237 What can we learn from the difficulties the UK is having in negotiating an exit from the European Union. What happens next? Why there is always a conflict between globalization and national sovereignty.  Thanks to LinkedIn, Blinkist and The Great Courses Plus for sponsoring the episode.For show notes and more information on this episode click here.[0:32] Update on Brexit since the British Parliament Vote.[1:20] Basic Principles of Brexit.[3:58] The problem of the Irish border.[10:35] Debate over the withdrawal agreement leads to the current refusal of the deal.[12:49] Brexit Lesson One: long-held agreements are hard to break.[15:08] Brexit Lesson Two: choosing government sovereignty or globalization[22:08] Economic Unions will always be fraught with conflict.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

#236 How heuristics, filters and reasonable stories help us cope with radical uncertainty and make investment decisions. Thanks to Netsuite and The Great Courses Plus for sponsoring the episode.For show notes and more information on this episode click here.[0:17] Investing is a world of radical uncertainty.[1:57] Risk vs. uncertainty.[6:01] Coping through the use of narrative.[10:39] Using filters to keep ourselves from being overwhelmed.[12:48] Staying shy of the consensus and “phantastic” objects.[16:04] Learning to tell ourselves reasonable stories.[17:01] Re-defining what makes a great decision.[20:52] Each individual’s decisions influence the future economy.[23:42] Investors aren’t alone: banks need coping mechanisms too.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.