Afford Anything Podcast Money for the rest of us with JD Stein
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#95: Money for the Rest of Us, with JD Stein

ByPaula Pant

Afford Anything Podcast Money for the rest of us with JD SteinJ. David Stein used to manage billions of dollars.

As the Chief Investment Strategist at Fund Evaluation Group, LLC, a $33 billon investment advisory firm, Stein developed the group’s investment philosophy and process.

He guided investments for major universities and nonprofits, including the Texas A&M University System and the Sierra Club.

He retired at age 46.

Now that he’s retired, he faces a different challenge: How should he invest his own money?

What investing philosophy should he follow in his own life?

And what can we learn from that?

Stein, who now hosts a podcast called Money for the Rest of Us, joins me on today’s show to talk about his big-picture investing ideas.

Here are a few takeaways:

  • Do not trade, because you do not have an informational edge. Instead, focus on long-term investing.
  • Create uncomplicated portfolios with the fewest number of holdings. This reduces decision fatigue & fights the paradox of choice.
  • Focus on asset classes rather than individual stocks.
  • We feel lost when we have too many choices because we want to optimize. Don’t optimize; satisfy.
  • Embrace uncertainty. “If you never miss a plane, you’re spending too much time at the airport.” — Metaphor: if you never take a loss, you’re probably playing it too safe.
  • Save more and spend less
  • Diversify, but not too much
  • Keep a margin of safety (emergency savings)
  • Hold ‘pockets of independence’ from the market by investing in your own career, real estate, or other non-market assets.

Enjoy!

– Paula

Resources Mentioned:

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