Episode 225: The Index Fund “Tipping Point”

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Key Points From This Episode:

• What to look forward to in next week’s episode. (0:05:08)
• Hear about a special promotion to celebrate Financial Literacy Month. (0:05:43)
• Introducing today’s topic and what to expect in the episode. (0:05:56)
• Worries and biggest critiques of index funds. (0:08:23)
• Current trends regarding index funds in relation to the market. (0:09:40)
• When investors should switch from passive to active. (0:12:45)
• Some good news about the index fund tipping point. (0:15:46)
• What investors should be aware of when actively investing. (0:16:32)
• How informed and misinformed managers contribute to the index fund tipping point. (0:19:38)
• Who the investors and managers are that change to passive investment. (0:20:52)
• How switching from active to passive investing affects the value of the market. (0:25:38)
• Unpacking the concept of markets being ‘inelastic’ as a result of index funds. (0:28:52)
• Whether passive investing undermines price efficiency concerning index funds. (0:30:03)
• What would cause the index tipping point to occur. (0:31:40)
• A brief background on today’s guest, Jordan Tarasoff. (0:35:00)
• Details about the Canada Pension Plan (CPP) and how it works. (0:35:28)
• Jordan outlines the benefits of deferring a pension plan claim. (0:36:28)
• Recent changes that make deferring your pension plan non-beneficial. (0:38:20)
• What age group the recent pension plan changes impact the most. (0:42:14)
• Why the Consumer Price Index (CPI) can’t be used to predict wage growth. (0:43:53)
• How Jordan is approaching his clients’ pensions regarding the new changes. (0:45:10)
• Review of our top five books for increasing financial literacy. (0:48:57)
• Our new segment: summarizing a past episode in sixty seconds. (0:56:57)
• We ‘talk cents’ about financial values and spending. (0:58:49)
• Recent reviews and feedback received about the podcast and goals survey. (1:02:40)

Links From Today’s Episode:

Jordan Tarasoff — https://www.pwlcapital.com/profile/jordan-tarasoff/

Scott Rieckens — http://www.scottrieckens.com/

Efficient Frontier — http://efficientfrontier.com/ef/0adhoc/2books.htm

Episode 95: Scott Rieckens (Playing with FIRE): Finding Financial Education, Perspective, and Freedom — https://rationalreminder.ca/podcast/95

Episode 99: Andrew Hallam (Millionaire Teacher): How to be Wealthy (and Happy) — https://rationalreminder.ca/podcast/99

Episode 108: Dr. William Bernstein: Praying for a Bear Market — https://rationalreminder.ca/podcast/108

Episode 128: Morgan Housel: The Psychology of Money — https://rationalreminder.ca/podcast/128

Episode 159: Bill Schultheis: Build Wealth and Get on With Your Life — https://rationalreminder.ca/podcast/159

Episode 186: Andrew Hallam: Balancing Money, Relationships, Health, and Purpose — https://rationalreminder.ca/podcast/186

Episode 191: Emerging Markets: Diversifying Asset or a Reverse Lottery? (plus Reading Habits w/ Morgan Housel) — https://rationalreminder.ca/podcast/191

Episode 212: Prof. Ralph Koijen: Demand System Asset Pricing & Inelastic Markets — https://rationalreminder.ca/podcast/212

Episode 124: Prof. Lubos Pastor: Equilibrium Models vs. Intuition — https://rationalreminder.ca/podcast/124

Episode 220: Jonathan Berk and Jules van Binsbergen: The Arithmetic of Active Management, Revisited — https://rationalreminder.ca/podcast/220

‘On the Size of the Active Management Industry’ — https://www.jstor.org/stable/10.1086/667987

‘Disagreement, tastes, and asset prices’ — https://www.sciencedirect.com/science/article/abs/pii/S0304405X06001954

‘Measuring skill in the mutual fund industry’ — https://www.sciencedirect.com/science/article/abs/pii/S0304405X15000628

‘Which Investors Matter for Equity Valuations and Expected Returns?’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3378340

Balance: How to Invest and Spend for Happiness, Health, and Wealth — https://www.amazon.com/Balance-Invest-Happiness-Health-Wealth/dp/1774580756

If You Can: How Millennials Can Get Rich Slowly — https://www.amazon.com/If-You-Can-Millennials-Slowly/dp/098878033X

The Coffeehouse Investor’s Ground Rules — https://www.amazon.com/Coffeehouse-Investors-Ground-Rules-Happiness/dp/1119717086

The Psychology of Money — https://www.amazon.com/Psychology-Money-Timeless-lessons-happiness/dp/0857197681

Think, Act, and Invest Like Warren Buffett — https://www.amazon.com/Think-Invest-Like-Warren-Buffett/

The November Meet-up Email — info@rationalreminder.ca

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — https://rationalreminder.ca/

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/?hl=en

Rational Reminder on YouTube — https://www.youtube.com/channel/
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/

Benjamin on Twitter — https://twitter.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

Cameron on Twitter — https://twitter.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

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