Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

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Rick Ferri
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Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by Rick Ferri »

Barry Ritholtz is my next Bogleheads on Investing podcast guest. You can ask questions to Barry by posting here.

Barry is a Wall Street icon. He is a prolific writer, book author, newspaper columnist, long-time blogger, equities analyst, CIO of Ritholtz Wealth Management, and guest commentator on Bloomberg Television. Barry is also the host of the popular Masters in Business podcast for Bloomberg in which he interviews influential figures on markets, investing, and business. He is also a former contributor to CNBC and TheStreet.com.

We will discuss a range of topics to include how the media influences investors, highlight some of his most memorable podcast guests of which include Jack Bogle and every Vanguard CEO since Jack. We'll also discuss the evolution of indexing, index funds, ETFs, and an "old" new thing called direct indexing.

This is sure to be a lively and entertaining discussion.

Post your questions for Barry below.

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Horton
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by Horton »

Should be a great episode!
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by JonL »

Rick Ferri wrote: Tue Oct 05, 2021 2:37 pm
You can ask questions to Barry by posting here.
I'd like to hear more about his firm's approach re: "70-30 for what was 60-40", to quote him from a MiB episode:

https://ritholtz.com/2020/06/transcript-jeremy-siegel/

Looking forward to it!
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by Humility101 »

While I have not participated in any crypto speculation, I have noticed an increase in mainstream participation in the crypto community. Do you see crypto indexing as being a small portion of investment portfolios going forward and if so how much?

Thanks,

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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by Mishigami »

I enjoy Barry's Saturday morning blog posts with links to "long reads" for the weekend. He always mentions the varietal of coffee bean he's enjoying that day--I'm curious as to his preferred brewing method: french press, pour-over, auto-drip, other?

I trust you to handle the financial questions, Rick. :)

Thanks for doing these podcasts. Always enlightening.
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by bobcat2 »

How do today's ultra low interest rates hurt upper middle income investors near retirement and in retirement and what can those investors do to mitigate the damage caused by those low both nominal and real interest rates.

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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by GetSmarter »

New retiree, high-net individual, age 62. I'm on learning curve where my expense money comes from now and in future.

Because interest rates are low, and my social security at 70 will be insufficient to meet annual spending, Fidelity is advocating that I buy an annuity for guaranteed income, as opposed to drawing from my ample 50/50 asset allocation and cash reserve. To what degree does an annuity make sense for a retiree given low interest rates, or does it make sense to wait for interest rates to rise for higher payout? On the other hand, Vanguard's learning center has an article about importance of reinvesting dividends (which I do) and selling from the total return for income, which is aligned with what I've learned from Bogleheads. What's new to me is having no more reliable income and drawing down from my portfolio, as opposed to creating my portfolio. Longevity in my family.

Thoughts?
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by Seasonal »

What does he think a reasonable safe withdrawal rate would be from a diversified portfolio given current conditions?

What would he consider a diversified portfolio for a recent retiree?
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by nisiprius »

I've been intrigued by your essay, When Should You Fire Your Mutual Fund Manager? and would like to know more about how you can determine when a mutual fund manager is "losing their edge."

For example, what are the criteria you would use for determining whether or not this year's flat performance of the ARK Innovation ETF is due to Cathie Wood "losing their edge?" I'm not asking if she has, I'm asking what an investor would do to decide whether she has.

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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by TomP10 »

While I understand the tax advantages of direct indexing, it seems like the main advantage (from the RIA's perspective) is that direct indexing essentially locks-in a client to your services for many years. It is nearly impossible for an individual to leave a RIA and then manage a portfolio of, say, 465 stocks. The alternative of a single S&P500 ETF is surely easier.

I'm suspicious that direct indexing is a way to lock-in clients into paying 50 to 100 bps more each year than they would if they just had a simple portfolio of broad ETFs. After all, the message I hear is the investor will get a return "similar to" the S&P 500 (or the total market index). If that's true, how do you justify the higher costs? Seems like the value of this "innovation" mostly flows to the advisor.

Is direct indexing really going to generate enough alpha (whether tax alpha or some other type of alpha) over 20 years to justifying 100 bps per year in higher fees?
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by Jay Dee »

Rit-Holtz
or
Rith-oltz?
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by goodenyou »

Ask him his favorite questions:

"Tell us what you're streaming these days...what is your favorite Netflix or Amazon Prime shows or PodCasts. What is keeping you entertained?"

"What advice would you give to a recent college grad who is interested in a career as a trader?'

"What do you know about the trading world today that you wish you knew 30-40 years ago when you were first getting started in this field?"
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by jocdoc »

ask him how he invests his clients $ when to diversify his clients away from paper assets: stocks and bonds and how could the retail investor do this on his own? Does he put them in Art, direct real estate such as farmland, apt buildings?
How much is too much in Paper financial assets?

What does he think about investing in platforms like Masterworks, Groundfloor, acretrader
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by imak »

For an income portfolio in zero interest rate world, is a Risk Parity portfolio preferable compared to traditional income portfolio? What are the tradeoffs ?
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by IanRichmond »

What are the things that you disagree the most with your guests? Meaning, are there certain ideas which you vehemently disagree with but find yourself biting your tongue to not come off as rude. For example, do you disagree with guests who call Google a “value” stock because the definitions for growth/value have changed cover time, or certain convictions they have about the market future or interpretations of the past?
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by bradshaw1965 »

Should be fun. Thanks, Rick.
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by IanRichmond »

One more question: there are times that some may feel that you’re drooling with excitement speaking to your guest and other times you’re just doing your thing, grunting along. Presumably the differentiation is between guests who you’ve been dying to interview because they are unique and truly talented vs. someone who is the recent hot hand and you were encouraged by your producers or whatever to fill up the spot. After interviewing a gizzilion people, how do you tel who the is the real deal? When do You silently wish you could invest with this person and when do you silently start writing their professional obituary?
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by bici »

Given your consistent emphasis on the future being unknown and the data supporting Boglehead-style buy and hold according to a planned asset allocation, why is tactical asset allocation a part of your current practice? What role do you see it playing for your clients and what data supports it?
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by leehamster »

goodenyou wrote: Wed Oct 06, 2021 2:57 pm Ask him his favorite questions:

"Tell us what you're streaming these days...what is your favorite Netflix or Amazon Prime shows or PodCasts. What is keeping you entertained?"

"What advice would you give to a recent college grad who is interested in a career as a trader?'

"What do you know about the trading world today that you wish you knew 30-40 years ago when you were first getting started in this field?"
+1
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by leehamster »

bici wrote: Thu Oct 07, 2021 2:11 pm Given your consistent emphasis on the future being unknown and the data supporting Boglehead-style buy and hold according to a planned asset allocation, why is tactical asset allocation a part of your current practice? What role do you see it playing for your clients and what data supports it?
+1 to this one, as well.

Barry is skeptical of financial advisors in general, at least for most consumers. It's actually kind of odd that he is still in the business, except his firm can generally pursue simple strategies that actually serve customers and still make good money.
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by Grt2bOutdoors »

Hi Rick,

1. How does Barry structure his own portfolio?
2. Did he have any memorable interviews from Masters in Business?
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by Grt2bOutdoors »

GetSmarter wrote: Tue Oct 05, 2021 8:35 pm New retiree, high-net individual, age 62. I'm on learning curve where my expense money comes from now and in future.

Because interest rates are low, and my social security at 70 will be insufficient to meet annual spending, Fidelity is advocating that I buy an annuity for guaranteed income, as opposed to drawing from my ample 50/50 asset allocation and cash reserve. To what degree does an annuity make sense for a retiree given low interest rates, or does it make sense to wait for interest rates to rise for higher payout? On the other hand, Vanguard's learning center has an article about importance of reinvesting dividends (which I do) and selling from the total return for income, which is aligned with what I've learned from Bogleheads. What's new to me is having no more reliable income and drawing down from my portfolio, as opposed to creating my portfolio. Longevity in my family.

Thoughts?
Let me guess, Fidelity wants to sell you the NY Life variable annuity?
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by Stinky »

Grt2bOutdoors wrote: Thu Oct 07, 2021 3:47 pm
GetSmarter wrote: Tue Oct 05, 2021 8:35 pm New retiree, high-net individual, age 62. I'm on learning curve where my expense money comes from now and in future.

Because interest rates are low, and my social security at 70 will be insufficient to meet annual spending, Fidelity is advocating that I buy an annuity for guaranteed income, as opposed to drawing from my ample 50/50 asset allocation and cash reserve. To what degree does an annuity make sense for a retiree given low interest rates, or does it make sense to wait for interest rates to rise for higher payout? On the other hand, Vanguard's learning center has an article about importance of reinvesting dividends (which I do) and selling from the total return for income, which is aligned with what I've learned from Bogleheads. What's new to me is having no more reliable income and drawing down from my portfolio, as opposed to creating my portfolio. Longevity in my family.

Thoughts?
Let me guess, Fidelity wants to sell you the NY Life variable annuity?
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by GetSmarter »

Grt2bOutdoors wrote: Thu Oct 07, 2021 3:47 pm
GetSmarter wrote: Tue Oct 05, 2021 8:35 pm New retiree, high-net individual, age 62. I'm on learning curve where my expense money comes from now and in future.

Because interest rates are low, and my social security at 70 will be insufficient to meet annual spending, Fidelity is advocating that I buy an annuity for guaranteed income, as opposed to drawing from my ample 50/50 asset allocation and cash reserve. To what degree does an annuity make sense for a retiree given low interest rates, or does it make sense to wait for interest rates to rise for higher payout? On the other hand, Vanguard's learning center has an article about importance of reinvesting dividends (which I do) and selling from the total return for income, which is aligned with what I've learned from Bogleheads. What's new to me is having no more reliable income and drawing down from my portfolio, as opposed to creating my portfolio. Longevity in my family.

Thoughts?
Let me guess, Fidelity wants to sell you the NY Life variable annuity?
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by matjen »

Rick I don't blame you if you don't do this but I would love for you to engage him very directly regarding your typical stance on the ways "Wealth Advisors" are paid and the incentive issues.

It has been awhile since I looked but I think their avg. fees were about 85 bps of AUM. It also seems to me that Barry R., Ben Carlson, Josh Brown, Michael Batnick, etc. are basically full time broadcasters, podcasters and and bloggers. Are they advising you or are they marketing? I say this as someone who enjoys much of their content. Especially Ben Carlson and Nick Maggiulli.
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by calmaniac »

IanRichmond wrote: Thu Oct 07, 2021 3:41 am What are the things that you disagree the most with your guests?
+1
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by reader79 »

1. How does he invest his own money? (General asset allocation and Maybe more specific information about specific funds).

2. Without divulging anyone's identity, who had the most powerful impact in shaping your approach to money and wealth building?
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by furiouschads »

How should investors with a 60/40 or 70/30 asset allocation count pension and SS assets?
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by Copernicus »

Ritholtz advisors seem to embrace the Bogleheads approach to investing, with some individual stocks peppered in. It appears like this is a good way to get good publicity for the firm in shows on CNBC (for example, Josh Brown on "Halftime Report"). However, they never mention the "Bogleheads" approach to investing as the source of inspiration for their philosophy. Why?
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by Wade Garrett »

what is Barry's favorite word besides "fascinating"?
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by Fortune »

When is this scheduled or already done. Thanks
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by wenzee »

Ask Barry why his co-CEO, Josh Brown seems to push investing in individual stocks as a regular on CNBC, while he seems to favor low cost indexing. Does his firm put clients in indexes or does it pick stocks?
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by Lol_wut94 »

Ask him about "The Compound" and his firm's efforts to convert younger (read: millennial) clients. What has worked, what hasn't, and what are the needs of these clients that remain a challenge to deliver?
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by Rick Ferri »

I am recording the podcast on Monday, October 19.

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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by book lover »

What does Mr Ritholtz think about the gamification of investing? Thank you.
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by jj45 »

What did you learn from your guests that surprised you at the time but you now think is true?
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by arcticpineapplecorp. »

What would you say to a young person who's thinking of getting in the wealth management business?

What do you know now that you wished you knew when you started out?
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Re: Questions for Barry Ritholtz, our next "Bogleheads on Investing" podcast guest

Post by mikejuss »

That's great news, Rick.

At the risk of sounding like a broken record, I wonder what Mr. Ritholtz thinks about Vanguard's adding a private-equity component to their target-date fund offerings.
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