Episode 388: AMA #11 - Your Parents' Advisor, 100% Equity Portfolios, and Investing $10 Billion - Rational Reminder Recap

Podcast: Rational Reminder

Published: 2025-12-18

Duration: 1 hr 21 min

Guests: Benjamin Felix, Ben Wilson, Cameron Passmore, Dan Bortolotti

Summary

This year-end AMA reflects on the unpredictable market swings of 2025, offering insights into investment strategies and addressing listener concerns about high financial advisory fees and portfolio allocations.

What Happened

Reflecting on the market dynamics of 2025, Ben Felix, Cameron Passmore, Ben Wilson, and Dan Bortolotti discuss how staying invested through volatile times proved crucial. The year saw dramatic market fluctuations, with international developed market stocks rising by 22% and Canadian stocks by nearly 25% by November, despite significant dips earlier in the year.

Cameron Passmore highlights the unpredictability of markets and the growing acceptance of evidence-based investing, alongside his optimism for the future of driverless cars. PWL Capital's integration into a larger organization, OneDigital, is noted as a positive step forward, with Ben Wilson taking on a more prominent role in mergers and acquisitions.

Benjamin Felix shares personal updates, including a cancer diagnosis and PWL Capital's acquisition by OneDigital, marking significant changes in both his personal and professional life. Dan Bortolotti emphasizes the importance of humility in market forecasting, urging investors to be cautious about overconfidence.

A listener question about high investment fees prompts a discussion on advising family members about financial management. The hosts suggest gentle questioning techniques to address concerns without confrontation, highlighting the issue of a 0.98% MER plus a 0.9% AUM fee.

The conversation shifts to the risks associated with 100% equity portfolios, particularly for inexperienced investors. The hosts recommend conservative allocations to better match risk tolerance, suggesting that 60-80% equities could be more appropriate starting points.

Tax implications of asset allocation are explored, clarifying that pre-tax accounts like RRSPs can skew perceptions of risk. Simplifying investments through asset allocation ETFs is advised, as they avoid the complexity of individual security selection.

Robo-advisors are recommended for new investors to ease the process of entering the market, with tools like Vanguard's online questionnaire aiding in asset allocation decisions. Dan Bortolotti's book 'Reboot Your Portfolio' is highlighted as a useful resource for those intimidated by investing.

Key Insights

• In 2025, international developed market stocks increased by 22% and Canadian stocks rose by nearly 25% by November, despite significant market volatility earlier in the year.
• PWL Capital's integration into OneDigital marks a strategic expansion, with Ben Wilson assuming a key role in mergers and acquisitions.
• Investment fees can be substantial, with a combined 0.98% MER and 0.9% AUM fee potentially impacting returns significantly, prompting the need for careful financial advice, especially within families.
• 100% equity portfolios may not suit inexperienced investors due to higher risk; a more balanced approach with 60-80% equities is recommended to align with risk tolerance.