Ep. 2018: All Gas, No Brakes

A provocative academic study says retirees should hold 100% stocks—an all-gas, no-brakes strategy that looks great in a spreadsheet. Don and Tom explain why higher expected returns alone ignore sequence risk, the emotional reality of a 50% drawdown, and the practical value of bonds when retirement withdrawals begin. Then a listener asks about an employer-backed indexed universal split-dollar life insurance plan promising tax-free growth and distributions. The pitch sets off every alarm: complicated loans, questionable salary treatment, enormous commissions, and tax rules that demand independent legal review. Finally, they separate Dave Ramsey’s useful debt and savings advice from his investment recommendations. High-cost active funds, optimistic return assumptions, and an 8% withdrawal rate meet 200,000 Monte Carlo simulations—and the numbers are not kind. 00:49 New ideas, old investing truths 03:04 The all-stock retirement argument 12:39 A split-dollar insurance pitch raises red flags 20:18 Where Dave Ramsey’s investing advice falls short 24:14 Testing an 8% withdrawal rate Questions? Comments? Click!