Tricky "Investments"
In this post-Christmas edition of Talking Real Money, Don McDonald and Tom Cock dismantle one of the most seductive myths in personal finance: the promise of high returns, no risk, and tax-free income. Using the lawsuit filed by Kyle Busch against Pacific Life as a case study, they expose the dark mechanics of indexed universal life insurance—hidden commissions, opaque costs, fabricated indexes, and returns that quietly disappoint. The episode then pivots to listener questions on diversification mistakes, Roth vs. traditional 401(k)s, late-career pivots into financial advice, ETF selection for retirees, and why doing less with your portfolio almost always beats doing more.
0:04 Post-Christmas welcome, Kyle Busch jokes, and why rich people get fleeced too
1:18 Indexed Universal Life explained (and why it’s not an investment)
1:45 The “bank on yourself” fantasy and why it never dies
2:27 $10.5 million in premiums and promises of $800K tax-free income
3:20 Why IULs avoid SEC and FINRA scrutiny entirely
4:21 The sixth premium notice that blew up the deal
4:41 How IULs implode if you stop paying—and why everything can vanish
5:52 “Tax-free income, high returns, no risk” exposed as marketing fiction
6:01 Hidden commissions, alleged 35% payouts, and zero disclosure
7:37 Proprietary indexes designed to benefit insurers, not investors
8:50 Internal Pacific Life doc: “Don’t call yourself a financial planner”
9:57 Why consumers can’t see costs, commissions, or real returns
11:37 Real-world IUL returns: roughly 3–5% annually
12:23 Why even Kyle Busch doesn’t actually need life insurance
13:44 Caveat emptor—and why “Life” in the firm name should trigger alarms
14:03 Listener portfolio question: 60/15/25 isn’t diversified
14:53 The S&P 500 isn’t “the market” (and seven stocks prove it)
15:54 Simple global solutions vs. portfolio over-engineering
17:11 Podcast tech humor and March seminar tease
17:22 Listener praise—and teaching people how to find podcasts
18:11 2026 seminar date confirmed: March 7
19:23 Career pivot at 53: CFP vs. AFC vs. Series 65
22:02 Why fiduciary firms are hiring—and sales shops are traps
23:22 ETF selection for retirees: growth, risk, and tax efficiency
24:27 Why Morningstar confuses more than it helps
25:07 Dimensional, Avantis, and keeping portfolios simple
26:20 Final thoughts, free fiduciary consults, and year-end wrap