Santa’s Little As
A holiday-flavored Friday Q&A that covers a lot of ground without selling a single candy cane. Don answers listener questions on Medicare vs. Medicare Advantage (and the IRMAA buzzsaw), how to safely reposition an elderly parent’s taxable account, whether to ditch target-date funds for a DIY equity portfolio, how to think about international small-cap ETFs, why teaching kids to pick stocks is a terrible idea, and what to expect when a “free portfolio review” comes from a company whose name literally includes the word annuity. Skeptical, practical, and very on-brand.
0:17 Corny holiday Q&A musical intro and setup
0:33 Friday Q&A format, how questions get on the show, and holiday vibe
2:00 Medicare vs. Medicare Advantage, IRMAA penalties, and why private insurers are exhausting
3:37 Why capital gains can make Medicare shockingly expensive
4:15 The profit motive problem with Medicare Advantage plans
4:37 Question transition and listener call-in reminder
5:43 Managing an 82-year-old’s taxable account: safety vs. yield
6:18 Why bond funds like BND diversify interest-rate risk better than savings accounts
7:15 CD ladders: how they work and why discipline matters
7:39 Treasury funds vs. total bond funds for capital preservation
7:47 Closing thoughts on preservation-focused portfolios
8:52 Target-date funds vs. DIY 401(k) portfolios
9:20 Glide paths, rebalancing, and what target-date funds do well
10:35 100% equity risk, volatility, and why down markets help accumulators
10:53 Choosing between AVDV and AVES (international small value vs. emerging markets)
11:47 Why the correct answer is often “both”
12:33 Teaching high school students about investing
13:52 Why stock-picking education reinforces a dangerous myth
14:28 Luck vs. skill and the evidence against beating the market
15:39 Index funds, market efficiency, and investor behavior
16:49 Morningstar vs. other research tools
17:18 Empower’s “free portfolio review” and what might be coming next
18:06 Portfolio concentration concerns and tech exposure
19:33 Humor break and annuity skepticism
20:55 What Empower actually is and what that implies
21:16 Empower as an RIA and how to treat their recommendations
21:52 Getting a second opinion from a fee-only advisor
22:58 Thanks, holiday wrap-up, and call for more questions