Episode Details

Don and Tom take on the latest attempt to reinvent retirement investing: the claim that retirees should hold 90% stocks and just 10% bonds. They explain why focusing on recent stock returns ignores both history and human behavior, discuss the role bonds play in managing risk and retirement income, and remind listeners that successful investing is about meeting your goals—not maximizing returns at any cost. They also answer a listener question about claiming Social Security early versus waiting until age 70 and revisit the importance of maintaining exposure to emerging markets despite their volatility.

0:12 The newest retirement “better mousetrap”: 90% stocks, 10% bonds
1:48 Bob Pozen’s argument for aggressive retirement portfolios
3:01 Why 10-year return data can be misleading
4:16 The psychology of large portfolio losses
5:42 Bonds are not stocks: understanding the difference
7:37 How fixed income supports retirement withdrawals
8:22 Why retirees should know their actual asset allocation
10:04 Taking only the risk you need to take
12:25 Remembering how investors felt in 2000, 2008, and 2022
13:33 Using the Talking Real Money risk quiz
14:27 Summer request for listener questions
15:31 Listener Scott asks about claiming Social Security early
17:07 Why delaying Social Security can still make sense
18:32 The value of Social Security’s guaranteed increase
20:11 Risks of assuming stock market returns will cooperate
21:55 Why contrarian retirement advice attracts attention
22:25 The overlooked role of emerging markets
23:50 Why emerging markets belong in diversified portfolios
24:30 The risks and rewards of global diversification

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