Episode Details

Wall Street has declared yet another “year of the stock picker.” Don and Tom examine Morningstar and SPIVA data showing how few active large-cap funds beat their benchmarks—and why high fees, trading costs, taxes, short horizons, and fierce competition keep the odds tilted toward low-cost diversification.

Then Greg asks where stocks and bonds belong while he begins Roth conversions. The discussion covers asset location, small-cap value exposure, international diversification, tax brackets, IRMAA, and keeping the portfolio’s overall risk level intact.

Finally, they tackle an all-U.S. Roth for a 20-year-old, a couple’s pre-retirement glide path, and a pricey Fidelity target-date fund that can be replaced inside a Roth without creating a tax bill. Stay through the end for a money-music bonus.

0:37 — The “year of the stock picker” returns
2:41 — Active funds trail their benchmarks again
8:30 — Why passive keeps winning
13:29 — Asset location for Roth conversions
22:09 — Should a 20-year-old invest only in the U.S.?
23:59 — Reducing risk before retirement
28:24 — Escaping an expensive target-date fund
31:53 — Reviews, inflation, and a money-music bonus

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