Diversify or Die (Poor)?

Talking Real Money - Investing Talk

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3d ago 29:57

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Don and Tom launch into a globe-trotting episode—complete with multilingual greetings and a cameo from Cookie Monster—before diving into the serious question of global investing. They challenge the "home country bias" that keeps investors overly concentrated in U.S. stocks, highlight the recent performance gap favoring international small-cap value, and remind listeners that chasing returns and market timing are just two sides of the same bad investing coin. With personal anecdotes, Japan’s long recovery, and fund comparisons (VT, AVGE, DFAW), they make a rock-solid case for global diversification. Plus: a real-life trustee dilemma, a potentially smart annuity strategy, and a few dad jokes you didn’t ask for.

0:04 Multilingual greetings, Cookie Monster, and off-the-rails intro
1:38 Listeners ignore the banter—jump straight to annuity questions
2:05 “Why would I want foreign stocks?” US home bias gets roasted
2:39 International small-cap value up, S&P down—performance flips
3:23 Blackberry nostalgia, Don’s voiceover gigs, and cowboy auditions
5:30 U.S. vs. international investing—timing or chasing returns?
6:48 Market cycles and why global investing reduces regret
8:26 Feelings aren’t facts—own the planet, not your predictions
10:08 Japan's 34-year climb back—and the real lesson of 1990
11:49 Dividends matter: Japan’s returns weren’t all dead
12:20 Comparing VT, AVGE, and DFAW for global exposure
14:33 Why Don prefers global funds over DIY U.S./intl combos
15:30 A 1992 Japan vs. global return showdown—$10k becomes $41k or $233k
17:50 They buried the lead—global diversification wins again
18:14 Listener corrects math on 4% rule—Don admits the slip
19:06 Comment on borrowing from 401(k) and the “double-tax” myth
20:04 Facebook dad jokes derail Tom’s patience
20:53 Trust investing dilemma: annuity vs. portfolio income
23:50 Immediate annuity may be the best fit for a “failed-to-launch” son
25:23 Where to shop for no-load annuities—Fidelity, Ameritas, Stan the Annuity Man

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