Brokers and Models

Is your portfolio built by a broker or a model? Don and Tom break down the surprisingly persistent patterns of old-school broker portfolios—loaded with local stocks, overpriced “index” funds, and actively managed everything—versus the growing adoption of model portfolios based on actual research (not just a hunch and a handshake). Along the way, they torch high-fee index fund imposters, answer smart listener questions on global diversification, CD ladders, tax traps in variable annuities, and even debate whether a Japanese WWII bomber should really be called “Jill.” Oh, and Tom reads a brutal Apple Podcast review… and takes it like a champ.

0:04 Dumb money habits and the rise of model portfolios

1:23 Bellevue vs Florida weather showdown

2:34 Classic broker-built portfolio ingredients

3:55 Sprinkling in overpriced “index” funds

5:50 What a model portfolio is (and isn’t)

6:53 Structure vs speculation: why models matter

8:31 Global diversification as a simple model

9:18 The difference between advice and product-pushing

10:24 When “index” doesn’t mean cheap: top offender list

11:55 The 2.33% RIDEX fund shame parade

13:02 The Jill bomber sidetrack takes flight

13:54 Listener Laura’s AVDE allocation dilemma

15:40 Two-fund model: Avantis U.S. + international

17:00 Logistical pronunciation issues and Bolden software

18:42 Rate assumptions for planning software

19:35 Tom’s humor gets roasted in a 5-star review

20:52 Listener Carol’s CD ladder tax question

22:38 Timing vs safety: the truth about “dry powder”

24:36 Mitchell’s $550K variable annuity dilemma

26:10 Why annuity gains aren’t capital gains

27:01 Low-cost annuity, but still no step-up

28:11 The opaque, intentionally confusing nature of insurance

29:41 Scheduling complaints and Don’s one-day-off fantasy

32:12 Programming note: no podcast on market holidays

34:04 Calls, questions, and Jill Bomber sign-off chaos
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