Invested Poorly: Sad Tales of FInancial Fails

Host Jeff Harrell announces the return of Invested Poorly: Sad Tales of FInancial Fails for a second season. New, real-life stories of greed, fear, hubris, and negligence that ensnared other investors will help you learn how to avoid the same investing mistakes. Season 2 introduces lessons on security selection and investment execution, as well as touches on the key topics from Season 1 of behavioral finance, investment performance, and financial advice. Jeff reminds investors the journey to financial independence, or FI, requires patience and humility, but will ultimately provide you with the greatest return possible, TIME. (Season 2 Trailer)Podcast produced by Ted Cragg of QuickEditPodcasts.comMusic Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com

Obviously, more experienced investors who know a lot about investing and the financial markets must do better than those with limited investing knowledge; right? The empirical evidence is very compelling when it comes to answering this question with a loud and resounding, NO. Jeff Harell provides research to support why simpler is often better than sophisticated when it comes to investment strategy, as well as a shocking real-life example of how not knowing much about investing can lead to impressive results. This episode will leave you feeling confident that not only is investing wisely simple and effortless, but extremely rewarding as well. (Season 2 Episode 1) Resource Mentioned in Episode: Article from The Motley Fool, “Why Long-Term Investors Have a Leg Up on Hedge Funds”Other Episode Referenced: Stocks Are Risky…False Fact! (S1 E4)Podcast produced by Ted Cragg of QuickEditPodcasts.comMusic Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com

Having a well-diversified portfolio is one of the main goals of most investment strategies. Although few would argue with this, the reality is that many investors eventually lose sight of why diversification was implemented in the first place. This episode illustrates, with vivid examples, how investors might say they want something, but what they actually do completely contradicts their stated desire.  Jeff Harrell also addresses whether there is any scenario in which it makes sense to ignore diversification. And he shares some insider’s knowledge about something financial service firms call “window dressing”… you’ll want to hear this. If you were under the impression “playing Monday morning quarterback” was reserved for sports and political conversations, think again. You’ll learn just how bad investors are at second-guessing their actions when those decisions don’t work out exactly the way they thought they would. (Season 2 Episode 2) Other Episode Referenced: Stock Market Experts on TV Are So Smart…But Can They See the Future? (S1 E9)Podcast produced by Ted Cragg of QuickEditPodcasts.comMusic Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com

Quarterly earnings reports announcements are one of the most highly anticipated events in the investing world, so much so that financial news channels even coined the term “earnings season” for when the bulk of companies release their reports. Although it would seem consequential for investors to follow “earnings season” closely for making well-informed investment decisions, evidence suggests otherwise. Earnings reports are more for show and much less useful than the average investor may think. Jeff Harrell admits just how silly he finds earnings reports as he shares his first-hand experience and offers some (sarcastic) career advice for those looking to break into the highly lucrative field of analyzing companies for large brokerage houses. This is one of the shortest episodes in Season 2, but it packs a punch and will leave you with a better understanding of how C-Suite executives at publicly traded companies might game the system. After listening, you can decide for yourself just how much stock you place in earnings reports. (Season 2 Episode 3)Resources Mentioned in Episode: Seeking Alpha article, “‘Beating Estimates’ - How Companies Win In Earnings Season” Investing.com article, “How Companies ‘Beat Estimates’ In Earnings Season”Podcast produced by Ted Cragg of QuickEditPodcasts.comMusic Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com

Having a basic understanding of your finances and your overall investment strategy is the first step on the path to FI. The problem is, as time goes on, many investors feel obligated to make adjustments to, or “tinker” with, their plan—often unnecessarily. The stories Jeff Harrell recounts in this episode may be some of the most relatable because it’s human nature to want to “scratch that itch” now and then by changing things up. The reason this is so prevalent with investing is because by making changes we feel more in control of our investments, when the reality is that none of us can control the financial markets. Recognizing that success on your path to FI is determined by the decisions you make before you invest any money, will bring you one step closer to achieving it. (Season 2 Episode 4) Resource Mentioned in Episode: Retirement Researcher article, “Why Can’t ‘Winning’ Active Managers Keep on Winning?” Other Episodes Referenced: Market Maven Predicts Next Stock Market Crash, Click Here…Nooo! (S1 E11) If You Are Worried About Running Out of Money…You Probably Won’t (S2 E10)Podcast produced by Ted Cragg of QuickEditPodcasts.comMusic Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com

Investing in the stock market is one of the best tools available to help you reach financial independence. However, there is one variable you must factor in that, if neglected, could result in a longer path to get there: taxes. Jeff Harrell shares his experience which suggests that even the professionals often neglect this key component of financial planning, and there’s a rather disturbing reason as to why. Sometimes in the financial services industry, you don’t get what you pay for. Relying on both empirical evidence, experience, and his own personal tax situation, Jeff illustrates how better understanding the impact of asset location can shorten your path to FI—and lead to more spending power once you get there. (Season 2 Episode 5) Resource Mentioned in Episode: Vanguard article, “Asset location can lead to lower taxes. Here's how to get more value.” Other Episode Referenced:Diversification Sounds Great…But Nobody Actually Does It! (S2 E2)Podcast produced by Ted Cragg of QuickEditPodcasts.comMusic Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com

This episode might be one of the most controversial because it will challenge the view that dividends and income are meaningful when it comes to investing. Many investors find these to be a vital component of their investment strategy, but Jeff Harrell provides his take on why the yield of an investment is completely irrelevant to him. Jeff provides examples of investors who swear by dividends, but offers research-backed evidence, as well as personal experience, as to why those beliefs are irrational and ignore the impact of inflation. Listeners should be prepared to hear a critical take on a popular investing strategy and why it may be more bark, than bite. (Season 2 Episode 6) Resources Mentioned in Episode: Morningstar article, “There Is Nothing Special About Dividends” Chart showing the S&P 500 Index’s Dividend Yield (1960-2023) - see episode Show Notes on our websitePodcast produced by Ted Cragg of QuickEditPodcasts.comMusic Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com

This episode will blow your mind when you find out how neglecting something that seems so small and insignificant can have a catastrophic impact on your timeline to reach FI. Jeff Harrell discusses how investors who make sure they pick up every “nickel, dime, and quarter” possible in their investment portfolio will reap the benefits many years down the road. Listeners will be provided with other resources that you surely would never be directed to by the traditional financial services industry. After listening to this episode, you will be armed with the knowledge necessary to help make better investment decisions when it comes to not only choosing your investments, but how you go about personally obtaining financial advice. Understanding the impact a small percentage can make will allow you to turn the power of compound interest in your favor. (Season 2 Episode 7) Resources Mentioned in Episode: Forbes article, “How A 1% Investment Fee Can Wreck Your Retirement” YouTube video, “Retirement Plans: Last Week Tonight with John Oliver” (21-minute episode) Advice-only financial advisors:Nectarine Advice-Only NetworkPodcast produced by Ted Cragg of QuickEditPodcasts.comMusic Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com

Maintaining total control of your finances starts with something that seems simple and yet tends to be a major hurdle for many of us to overcome. Discover the importance of organizing your investment accounts and how merely knowing where all your money is located can lead to better investment results in the long term. Jeff Harrell shares more stories from the trenches of financial planning that illustrate why the negative effects of putting off your financial “to-do list” for a few more months or maybe even years will only worsen the longer you wait. This episode is designed to get you to stop procrastinating and start taking action with some small steps that will make a big impact on your FI journey. (Season 2 Episode 8) Resources Mentioned in Episode: A list of index exchange traded funds (ETFs) to consider if your custodian doesn’t charge transaction fees for each purchase, and no-fee index mutual funds offered by custodians Schwab and Fidelity in various asset classes - see episode Show Notes on our websiteOther Episode Referenced: Asset Location Is All About…Taxes, Taxes, Taxes (S2 E5)Podcast produced by Ted Cragg of QuickEditPodcasts.comMusic Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com

This episode highlights the shortcomings of one of the most popular benefits touted by the financial services industry: financial planning software. Jeff Harrell shares his experience with how advisors use this tool in practice, as well as how DIY investors can gain access to similar features at a fraction of the cost. Jeff will arm you with the knowledge of just how useful—or not—these applications could be in your situation. Understanding the sensitivity of the variables and wide range of outcomes they can project will allow you to be better informed when evaluating the output. The episode concludes with a balanced look at the real value of financial planning software and unbiased recommendations for a couple DIY solutions. (Season 2 Episode 9) Resources Mentioned in Episode: OnTrajectory – retirement planning software for regular people Projection Lab – modern financial & retirement planning tools Other Episode Mentioned: One Percent…Way More Than You Realize (S2 E7)Podcast produced by Ted Cragg of QuickEditPodcasts.comMusic Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com

Speaking especially to people who are sensible with their finances and live within their means, Jeff Harrell discusses one of the greatest fears all investors face, longevity. While this fear is real for many, experience suggests these fears are likely irrational for those who act in fiscally responsible ways throughout their lifetime. You’ll hear stories of encouragement to spend more after attaining financial independence, as well as the simple FI budget strategy Jeff uses personally to ensure he optimizes his spending now that he is FI. This episode offers the listener an opportunity to develop a FI mindset, providing confidence all the hard work in the early years will pay off. (Season 2 Episode 10) Resource Mentioned in Episode: FI Budget (target spending percentages spreadsheet) - see episode Show Notes on our websitePodcast produced by Ted Cragg of QuickEditPodcasts.comMusic Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com

Season 2 is now in the books! Host Jeff Harrell summarizes the investing lessons learned in the second season, highlighting the theme of each of the 10 episodes—ultimately to help you sidestep those common investing pitfalls that have trapped other investors. Jeff also shares about the ways you can stay connected to the show and reminds listeners that the path to financial independence (FI) is not complicated but requires patience. Don’t forget, when it comes to investing, always… “ignore the noise.”(Season 2 Episode 11)Podcast produced by Ted Cragg of QuickEditPodcasts.comMusic Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com

Will the next presidential election be the “most important election ever”? You might think so when following popular media outlets where every four years we have the “most important election ever!” Recognizing how this may be true in some ways—since elections, especially presidential elections, are a big deal—host Jeff Harrell reveals that when it comes to investing…it’s just another year. Failure to recognize this could be very costly if you let your emotions get the better of you. Jeff describes two (of many!) real-life examples of politically-motivated investment decisions and how they ended up not working out for those investors. And if you’ve ever wondered whether the stock market performs better under a Democratic or a Republican administration, tune in because the facts may surprise you.(Season 1 Episode 1)Resource Mentioned in Episode:  Chart, “How Much Impact Does the President Have on Stocks”Podcast produced by Ted Cragg of QuickEditPodcasts.comMusic Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com

A day has hardly gone by without someone in the media predicting doom and gloom for the stock market. Buying in to this feeling has the potential not only to be devastating to your financial well-being, but also to your sanity. Jeff Harrell tells a true tale about a “doomsday prepper” who perpetually rooted for the stock market to fail because he started investing in a way to try and profit from a down market. How do you think it usually works out if you’re always betting against the stock market?(Season 1 Episode 2)Podcast produced by Ted Cragg of QuickEditPodcasts.comMusic Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com

Saving is where the path to financial independence (FI) begins, but if “saving” is all you ever do with your money, then your path might be longer than necessary. Implementing the next step—investing—accelerates your journey. Failure to understand from the outset about the inevitable ups and downs along a path to FI could cost you dearly in terms of extra years wasted unnecessarily. Jeff Harrell shares a story about someone who decided to save their way to FI. When the story ends, hopefully you can answer this question:  “Am I a saver or an investor?"(Season 1 Episode 3) Other Episode Referenced:  Stocks Are Risky…False Fact! (S1 E4)Podcast produced by Ted Cragg of QuickEditPodcasts.comMusic Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com

We’ve all heard the term, “beauty is in the eye of the beholder.” When it comes to the stock market, I’d simply change “beauty” to “risk” in this expression. How you define risk plays a huge role in your perception of stock market investing. A look at one set of data points may change all of that. Jeff Harrell breaks down the fascinating results of a research report that analyzed stock market returns over various time periods, leading to a discussion about how risky the stock market is…or is not. Investing involves risk, including the loss of principal—as all investment firm marketing pieces must disclose—but you should also understand that when it comes to financial markets, risk and volatility don’t mean exactly the same thing. After hearing this episode, think about whether or not you agree with Jeff that one of the riskiest financial things you can do in your lifetime is to NOT invest in the stock market. (Season 1 Episode 4)Resource Mentioned in Episode:  Data illustration showing positive versus negative stock market returns over various time periods - see episode Show Notes on our websiteOther Episode Referenced:  Saver or Investor…Which One Are You? (S1 E3)Podcast produced by Ted Cragg of QuickEditPodcasts.comMusic Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com

Perception is often not reality. Everyday investors would do well to keep this in mind while reviewing their investment accounts. Unfortunately, many investors’ lack of understanding about performance has cost them dearly over the years. Gaining a better understanding of this will better equip you to compare your results to relevant benchmarks, thereby improving your ability to evaluate your returns. With a short math lesson, Jeff Harrell teaches you how to calculate investment performance. Tune in to this mini masterclass to get a better grasp on the differences between a personal rate of return and a time-weighted rate of return.(Season 1 Episode 5)Podcast produced by Ted Cragg of QuickEditPodcasts.comMusic Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com

Even though everyone knows past performance is no guarantee of future results, the allure of buying what you wished you’d owned tempts us all. This episode will help drive this point home further with examples of why heeding this advice is so important to successful investing. Jeff Harrell also shares what three types of investment returns most people typically want to achieve and how most investors hold completely unrealistic expectations. He exposes the types of shady tactics some investment firms might use to prey on investors who are enamored with performance in the recent past. You’re likely to come away from this episode with a realization that the question, “How did that stock do last year?” probably isn’t as helpful as you thought it was. (Season 1 Episode 6)Podcast produced by Ted Cragg of QuickEditPodcasts.comMusic Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com

Timing the stock market is something we’re all told not to do, yet all of us are guilty of it at some point. This episode may have the “smoking gun” illustration to help you avoid this poor decision going forward. Jeff Harrell explains two hypothetical (and impossible) scenarios of the luckiest and unluckiest investors in history—the former buying into the stock market at the very bottom every year and the latter buying in at the very top. How wide do you think the gap is between their portfolio values after a 35-year time horizon? He adds a third (and more realistic) scenario of an investor dollar cost averaging into the market monthly, instead of annually, and compares their portfolio to those of the world’s luckiest and unluckiest investors. Don’t answer the following question until you’ve heard this episode: “Is now a good time to invest in the stock market?” (Season 1 Episode 7)Resource Mentioned in Episode: Data illustration of hypothetical stock market timing scenarios - see episode Show Notes on our websiteOther Episodes Referenced: Saver or Investor…Which One Are You? (S1 E3)Stocks are Risky…False Fact!  (S1 E4)Podcast produced by Ted Cragg of QuickEditPodcasts.comMusic Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com

Are you sure you understand the "Cost Basis" and “Gain/Loss” columns on your investment statements? Cost basis and gain/loss calculations are two commonly misunderstood investment terms. Learn what these calculations actually represent. Jeff Harrell uses several examples to illustrate how cost basis can be misleading and breaks down this technical concept to help you get a better handle on understanding your investment performance.  What most investors want to know is:  how do I determine the performance of a security I’ve invested in, or maybe even the overall performance of my accounts? Jeff provides resources that investors can use to obtain the information you are really looking for when referencing cost basis or that “gain/loss” number. (Season 1 Episode 8) Resources Mentioned in Episode:Vanguard article, “Cost basis doesn't equal performance”Morningstar.com – Type any symbol in their website's search box to find the security and then click on the tab for "Performance" (mutual funds, ETFs) or "Trailing Returns" (stocks). It will take you to a page on Morningstar’s website that shows you all relevant trailing returns and, even better, compares them to relevant benchmarks so you can evaluate the performance.Other Episodes Referenced: Stocks are Risky…False Fact! (S1 E4) My Investments Are Doing Awesome (Or Terrible)…How Do You Know? (S1 E5)Podcast produced by Ted Cragg of QuickEditPodcasts.comMusic Credit: Dream Cave / Adventure Awaits / courtesy of www.epidemicsound.com