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In this episode of the Bryan Foltice Behavioral Finance Podcast, Dr. Bryan Foltice discusses the controversy surrounding Dave Ramsey's recommendation of an 8% retirement withdrawal rate. He critiques Ramsey's approach, highlighting its potential risks and compares it with the more conservative 4% rate commonly advised by financial planners.

Dr. Foltice delves into the importance of considering sequence risk and advocates for a balanced, flexible strategy to ensure financial stability throughout retirement. The episode aims to provide financial insights and foster informed decision-making among listeners.

00:00 Introduction to the Podcast
00:35 Critique of Dave Ramsey's Advice
01:41 Personal Experience with Financial Peace
03:58 Long-term Financial Planning
06:23 The 4% Rule and Retirement Puzzle
14:28 Sequence of Returns Risk
19:49 Finding a Middle Ground
22:09 Conclusion and Next Steps

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In this episode of the Bryan Foltice Behavioral Finance Podcast, Dr. Bryan Foltice delves into foundational concepts of behavioral finance. He revisits prospect theory, emphasizing our differing sensitivities to gains and losses, and introduces the disposition effect - our tendency to sell winning stocks too early and hold onto losing stocks too long.

Dr. Foltice shares personal anecdotes and research findings, including a study on the efficacy of trailing stop loss orders in minimizing the disposition effect and improving investment strategies. Tune in for more insights and practical advice on making smarter financial decisions.

00:00 Introduction to the Podcast
00:23 Overview of Today's Topic
01:40 Understanding Prospect Theory
04:30 The Disposition Effect Explained
07:35 Personal Anecdotes and Lessons
08:41 Research and Strategies to Mitigate the Disposition Effect
11:26 Practical Application of Trailing Stop Losses
14:17 Conclusion and Final Thoughts

References:
"Are Investors Reluctant to Realize Their Losses?" Terrance O'Dean Journal of Finance https://faculty.haas.berkeley.edu/odean/papers%20current%20versions/areinvestorsreluctant.pdf

"Exploring the Effectiveness of Trailing-Stop-Loss Strategies for Individual Investors" by Steve Dolvin and Bryan Foltice - Journal of Beta Investment Strategies Journal. https://www.pm-research.com/content/iijindinv/14/1/29

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Behavioral Finance Explains: Why Americans Misunderstand the Economy

In this episode of the Bryan Foltice Behavioral Finance Podcast, Dr. Bryan Foltice discusses a U.S. survey revealing widespread economic misconceptions among Americans. Key findings show that many Americans believe the economy is shrinking, the stock market is down, and unemployment is at a high, contrary to actual data showing economic growth, stock market highs, and low unemployment rates.

Foltice explores the reasons behind these misconceptions, including a lack of stock market participation and the impact of confirmation bias, and emphasizes the potential political motivations behind misinformation. He also raises concerns about future economic and real estate market stability given the high percentage of people living paycheck to paycheck.

00:00 Introduction to the Podcast
01:27 Survey Findings on American Economic Perceptions
03:09 Disconnection Between Perception and Reality
05:45 Living Paycheck to Paycheck in America
08:29 Impact of Inflation and Interest Rates
11:09 Concerns About Unemployment and Future Recession
14:22 Conclusion and Final Thoughts

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Retiring Early: Is the FIRE Community the Right Path?

In this episode of the Bryan Foltice Behavioral Finance Podcast, Dr. Bryan Foltice delves into the FIRE (Financial Independence, Retire Early) movement. He discusses the key principles behind FIRE, including the idea of saving up to 70% of annual income to retire early and live off small withdrawals.

Dr. Foltice evaluates the merits and challenges of the FIRE lifestyle, emphasizing the importance of having a purpose in both one's career and retirement. He addresses the potential pitfalls of extreme frugality and explores the balance between enjoying the present and saving for the future. Listeners are encouraged to find their own path to financial independence while maintaining a fulfilling and purposeful life.

00:00 Introduction to the Podcast
00:24 Understanding the FIRE Movement
01:52 Pros and Cons of the FIRE Lifestyle
05:30 Challenges Faced by Law Enforcement
08:43 Balancing Financial Goals and Life Purpose
11:57 Personal Insights and Financial Strategies
14:37 Conclusion and Final Thoughts

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In this episode of the Brtan Foltice Behavioral Finance Podcast, Dr. Brtan Foltice delves into the intriguing world of meme stocks, such as GameStop and AMC Entertainment, and their impact on investor behavior.
He introduces key concepts of behavioral finance including noise trader risk and the Greater Fool Theory, explaining how these factors drive the stock prices far beyond their fundamental value. Bryan demonstrates how meme stock phenomena bring to light irrational aspects of investor behavior, fueled by social media influences and group dynamics rather than financial fundamentals.
He also shares insights from his experiences teaching corporate finance, emphasizing the learning curve and sophistication investors gain through these market anomalies. The episode concludes with an encouragement for listeners to delve deeper into behavioral finance, suggesting it as an elective for finance majors and teasing an upcoming course package on the subject.

00:00 Introduction to Behavioral Finance and Meme Stocks

01:21 Summer Teaching and Transition to Online Classes

03:10 Diving Deep into Meme Stocks Phenomenon

07:38 Behavioral Finance Theories in Action: Noise Trader Risk and Greater Fool Theory

15:57 Learning from the Meme Stock Frenzy: A Shift in Investor Behavior

18:26 Wrapping Up

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Empowering Students with Financial Literacy: The Money Strong Program at Butler

In this episode of the Bryan Foltice Behavioral Finance Podcast, Dr. Bryan Foltice discusses the Money Strong program, a new initiative designed for college juniors and seniors at Butler University aimed at improving their personal finance skills.

This program, born from a collaboration with career mentor Randy Brown, aims to address the lack of financial literacy education for students, regardless of their major.

Foltice shares insights into the development of the program, its four content modules focused on motivation, budgeting, dealing with student loans, and investing, and the broader mission to equip students with the knowledge to avoid common financial pitfalls. Additionally, he highlights the new personal finance club initiated by students, and plans to involve alumni and financial advisors to provide further support. This episode emphasizes the importance of financial literacy in aligning with one's life purpose and not allowing money to become an obstacle to achieving it.

00:00 Introduction to the Behavioral Finance Podcast
00:32 Unveiling the Money Strong Program for College Students
01:15 Summer Break Reflections and the Emotional Roller Coaster of Academia
04:06 The Genesis of the Money Strong Program: A Collaboration Story
07:45 Developing the Money Strong Program: Feedback and Design
09:57 The Four Modules of the Money Strong Program
20:16 Navigating Postgraduate Financial Decisions
32:46 Expanding the Money Strong Program and Building a Personal Finance Community
36:39 Conclusion and Future Plans

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Bryan Foltice Behavioral Finance Website - www.bryanfoltice.com
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Youth Sports Meets Behavioral Finance: A Deep Dive with Dr. Bryan Foltice

In this episode of the Bryan Foltice Behavioral Finance Podcast, Dr. Foltice discusses the intersection of youth sports and behavioral finance in the United States. He explores the shift from community-based sports to private, for-profit sports organizations that emerged around 2008 due to budget cuts during the Great Recession.

Dr. Foltice \shares personal anecdotes and research findings on how this shift has led to financial strain and negative consequences for families, including overextended parents and kids missing out on valuable family time. The episode delves into the societal pressures and social norms around youth sports, the financial exploitation by private sports organizations, and the lack of balance between sports activities and family life.

Bryan calls for a reevaluation of the current system, advocating for a return to more community-based activities and a balanced approach to children's involvement in sports.

00:00 Introduction to the Podcast and Host
00:45 Youth Sports Meets Behavioral Finance: A Personal Journey
03:59 The Financial and Emotional Strain of Youth Sports
05:42 Observing Parental Behavior at Youth Sports Events
07:51 The Hamster Wheel of Youth Sports Participation
08:43 Challenging the Status Quo: Social Norms and Family Balance
14:57 Navigating the Pay-to-Play Landscape: Costs and Consequences
22:11 Seeking Solutions and Personal Reflections
29:27 Conclusion and Call to Action

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Bryan Foltice Behavioral Finance Website - www.bryanfoltice.com
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The Overwhelming World of Youth Sports: A Behavioral Finance Perspective

In this episode of the Bryan Foltice Behavioral Finance Podcast, the discussion centers around the behavioral finance aspects of youth sports in the United States, highlighting the vast changes and increasing pressures families face.

Bryan shares personal experiences to underscore how youth sports commitment has escalated, consuming significant time and resources, contrasting it with more balanced approaches seen in other countries like Germany. Delving into the history of youth sports, he points out the shift from community-based, low-cost sports to a prevalent pay-to-play model post-2008 recession, leading to a 19 billion dollar industry built on parental overconfidence and hope. The podcast sheds light on the disproportionate beliefs vs. reality of athletic scholarships and the financial strains on families, aiming to pivot towards improving this unbalanced situation.

00:00 Introduction to the Podcast

00:31 The Hot Topic: Behavioral Finance Meets Youth Sports

05:29 A Week in the Life: The Overwhelming Schedule of Youth Sports

14:25 How Did We Get Here? The Evolution of Youth Sports

19:15 The Behavioral Finance Perspective: Overconfidence and Financial Strain

24:35 Concluding Thoughts and Next Steps

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Bryan Foltice Behavioral Finance Website - www.bryanfoltice.com
Instagram - www.instagram.com/bryanfoltice
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