In this NGPF Podcast, Patrick Geddes shares insights from a career in the world of investments. After a stint as the first research manager at Morningstar, he co-founded Aperio, a firm focused on customized indexing, which he recently sold to BlackRock. For the next chapter in his life, Patrick has written a book, Transparent Investing, designed to empower people with the information they need to make better investment decisions. Patrick and I discuss highlights from his book, including the difference between broccoli and chocolate cake investing and what Buddhism and Stoicism can teach us about investing. Patrick has so kindly made an electronic version of his book available (click here) for FREE! for three days from January 25-27th. Please leave a review if you are so inclined. Enjoy!

Details:

• 0:00~1:30 Introduction
• 1:30~4:27 Patrick’s background
• 4:27~7:04 Active versus passive investing
• 7:04~13:44 Concept of custom indexing
• 13:44~15:15 The BlackRock acquisition
• 15:15~20:12 Patrick’s “Pact with the Universe”
• 20:12~24:30 Cognitive biases surrounding behavioral finance
• 24:30~26:18 A word from NGPF
• 26:18~34:03 How investment managers may fool consumers
• 34:03~37:26 How investment fees stack up
• 37:26~43:42 What to look for in a financial advisor
• 43:42~46:49 Fiduciaries and fee-based financial advisors
• 46:49~48:56 Thoughts on cryptocurrencies
• 48:56~50:07 Broadly diversified index funds
• 50:07~51:49 Getting into the finance industry
• 51:49~53:46 Current fiduciary requirements
• 53:46~55:14 Resources on Patrick’s website
• 55:14~57:31 Conclusion

Resources:

• Transparent Investing
• 403b Wise

Quotes:

• "This is a book but I also view it as a campaign in a way... I have a particular fixation on when I see consumers being lied to, I just kind of go berserk and I thought, you know, this book is part of paying it back but I also want it to be more like a movement."

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.