Value of Wisdom
This episode opens with a warning to younger investors who take TikTok advice over historical perspective, especially around claiming Social Security early. Don and Tom walk through the guaranteed 8%+inflation benefit increase from delaying, why “take it at 62 and invest it” collapses under market reality, and how fear is driving a surge in early claims. They pivot to Bitcoin’s sharp drop and why crypto speculation is driven by greed, not protection, before teasing Don’s upcoming crypto short story. Listener questions cover bad long-term-care/annuity hybrids, overcomplicated “bucket” strategies, responsible portfolio risk, and finally a breakdown of two expensive high-volatility mutual funds—both easily beaten by low-cost index alternatives.
0:04 Message to younger investors about lacking market perspective
1:19 Why TikTok advice on claiming Social Security early is flawed
2:17 The real 8%+inflation annual increase from delaying benefits
2:27 The “take it at 62 and invest it” myth
3:47 Tom recounts Paul Merriman calling his allocation aggressive
4:49 Rising panic-driven Social Security filings
5:21 Don’s 69 vs. 70 claiming decision
6:11 Survivor benefit logic many forget
7:42 Imagining a sudden 30% crash—except it’s Bitcoin
8:29 Bitcoin’s drop from 124K to mid-80s, plus MicroStrategy leverage
9:58 Crypto culture, crypto research, and Don’s upcoming story
10:58 Crypto as a greed play, not protection
12:37 Emotions sabotage investing; the plan removes them
13:51 Why risk needs to match the plan, not ego
15:24 Crypto story teaser + Short Storyverses email plug
16:31 Listener question: NY Life Asset Flex LTC pitch
17:49 Why hybrid LTC/annuity products are weak and commission-heavy
19:47 “Bucket” confusion and the need for purpose
21:30 Caller Eugene: $250K “play money”
23:43 Reality check: could you watch $250K drop to $125K?
24:06 Why timing dips doesn’t work
25:20 Better uses for excess cash in your 70s
27:08 Tom: time for full planning review at age 77
28:38 Fund analysis: Morgan Stanley Growth A
29:25 Fund analysis: Invesco Equity & Income A
30:30 Why moving to low-cost Vanguard indexes is the logical move