DeepSummary
In this podcast episode, Dan Bortolotti, known as the Canadian Couch Potato, shares the origin story of his popular blog and how he transitioned from being a writer to becoming a portfolio manager at PWL Capital. He discusses the evolution of index fund availability in Canada, the obstacles DIY investors face, and the importance of simplicity in investing. Dan also talks about how to approach asset allocation, selecting index funds, and understanding the value of financial advice.
Dan emphasizes the significance of setting clear financial goals before investing and highlights the impact of saving rate compared to fees and performance. He provides insights into making the decision between DIY investing or hiring an advisor and what to look for in a financial advisor. Additionally, Dan shares how his perspectives changed over time and the surprising aspects he discovered while working with clients.
The episode concludes with Dan reflecting on his journey, the role he played in shaping PWL Capital's content strategy, and how he defines success in life.
Key Episodes Takeaways
- Embracing simplicity in investing can lead to better outcomes for DIY investors.
- Setting clear financial goals should be the foundation for any investment strategy.
- Understanding the value proposition of financial advice is crucial, even if investing can be solved with low-cost index funds.
- Fees should be evaluated in the context of the services and value provided, not just the numerical amount.
- Consistency and authenticity in communication are essential for building trust with clients.
- The availability of index funds in Canada has improved significantly over time, but adoption has been slower compared to the US.
- Saving rate and appropriate asset allocation are often more important than fees or performance, especially for new investors.
- Creating high-quality content consistently requires dedication and effort, and it has been a key part of PWL Capital's strategy.
Top Episodes Quotes
- “If you give somebody a simple plan, they're much more likely to follow it, and then they're much more likely to enjoy some success.“ by Dan Bortolotti
- “So I think its really important to establish pretty early on in the relationship that your life goals are what's more important and your investments are just a tool or a strategy for getting to those goals.“ by Dan Bortolotti
- “I think the way you've taken up that torch is really impressive because I remember having this discussion with people early on, and honestly, we had talked to other advisors who were saying things like, 'I should do that.' Okay, you should do that. But you can't wave a magic wand and create great content.“ by Dan Bortolotti
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Episode Information
The Rational Reminder Podcast
Benjamin Felix & Cameron Passmore
6/6/24
When it comes to DIY investing, there’s always a temptation to make things more complicated than they need to be. But, in reality, embracing simplicity is one of the best ways to ensure good investment outcomes. Today’s episode features an exceptional conversation with our long-time friend and colleague, Dan Bortolotti, who has worked alongside us as an Associate Portfolio Manager at PWL Capital for over ten years. Some of our Canadian listeners might recognize Dan as the man behind the Canadian Couch Potato blog (one of the most popular resources for Canadian investors) and the voice behind the Canadian Couch Potato podcast. Dan is a consummate communicator, both on paper and in person; beyond his extensive blogging, he has also written a number of books, both fiction and non-fiction, the most recent of which includes Reboot Your Portfolio: 9 Steps to Successful Investing with ETFs. Dan has played a pivotal role in making PWL Capital what it is today, and in this episode, we learn about his surprising journey to becoming an advisor, before hearing his wide-ranging insights on DIY investing. Dan breaks down key components for investors, from how to approach your asset allocation and picking index funds to navigating fees, taxes, and performance. We also discuss how the investing landscape has changed since Dan started writing and essential lessons he has learned over the years. To hear all about investing from the Canadian Couch Potato himself, be sure to tune in for this expansive conversation!
Key Points From This Episode:
(0:03:52) The origin story of the Canadian Couch Potato blog, by Dan Bortolotti.
(0:08:17) How the availability of index funds in Canada has changed since Dan started writing about them in 2010, and his role in the index fund revolution.
(0:10:01) Why Canadians have been slower to adopt index funds than Americans.
(0:12:09) How the model portfolios on his site have changed over time.
(0:14:20) Why simplicity is so important to a good investment outcome.
(0:16:38) The biggest obstacle Dan has observed when it comes to successful investing.
(0:19:40) Advice on how to approach decisions around stocks, bonds, and asset allocation.
(0:24:34) How to select the ideal ETF or index fund to express your asset allocation.
(0:27:22) Some of the ways that Dan’s views have changed since starting the Couch Potato portfolio, and the evolution of his blog.
(0:31:46) Why you should be clear on your financial goals before investing and the importance of saving rate relative to fees and performance.
(0:37:32) Understanding the value of financial advice if we consider investing to be effectively solved by low-cost ETF mutual funds.
(0:40:23) Why it’s so important to close the gap between providing a financial plan and implementing it.
(0:43:25) What surprised Dan about his clients during his transition from blogger to advisor, and what he has learned about earning his clients’s trust.
(0:48:22) Dan’s thoughts on how people should make the decision between DIY investing or hiring an advisor, and what people should look for in a financial advisor.
(0:55:46) The story of how Dan connected with PWL Capital and the key ways he has helped shape the company.
Links From Today’s Episode:
Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — https://rationalreminder.ca/
Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/
Rational Reminder on X — https://twitter.com/RationalRemind
Rational Reminder on YouTube — https://www.youtube.com/channel/
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/
Benjamin on X — https://twitter.com/benjaminwfelix
Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/
Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/
Cameron on X — https://twitter.com/CameronPassmore
Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/
Dan Bortolotti — https://www.pwlcapital.com/profile/dan-bortolotti/
Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/
Canadian Couch Potato Blog — https://canadiancouchpotato.com/
Canadian Couch Potato Podcast — https://canadiancouchpotato.com/podcast/
Larry Swedroe on LinkedIn — https://www.linkedin.com/in/larry-swedroe-18778267/
Larry Swedroe books on Amazon — https://www.amazon.com/Larry-E-Swedroe-Books/s?k=Larry+E.+Swedroe&rh=n%3A283155
Books From Today’s Episode:
Reboot Your Portfolio: 9 Steps to Successful Investing with ETFs — https://www.amazon.ca/Reboot-Your-Portfolio-Successful-Investing/dp/1988344328
Wild Blue — https://www.amazon.com/Wild-Blue-Natural-History-Largest-ebook/dp/B005BP0E3W