Defined Duration Investing with Cullen Roche

In an environment where market fluctuations have become the norm rather than the exception, investors and financial advisors are constantly seeking strategies that offer both stability and the potential for long-term growth. But with a seemingly endless array of investment options, people can feel overwhelmed and uncertain about how to make better decisions with their money. Navigating these possibilities is not merely about making investments. It's about making informed, disciplined decisions aligned with your financial goals. In this episode, George and Ryan are joined by Cullen Roche, Chief Investment Officer at Discipline Funds. Cullen's primary areas of expertise include global macro portfolio construction, quantitative risk management, monetary economics, financial accounting, and behavioral finance. He founded Discipline Funds to help investors access low-fee, diversified portfolios that help them stay the course and meet their financial goals. Cullen is also the author of the book, Pragmatic Capitalism: What Every Investor Needs to Know About Money and Finance. Having developed a framework for understanding the world of investing and financial planning from an operational reality perspective, Cullen talks to Ryan and George about defined duration investing and how investors and advisors build discipline-based portfolios. He discusses the importance of understanding the time horizons of investments and the role of behavioral finance in client conversations. Colin also explains the true nature of investing and the role of savings and income generation in building wealth. Key Takeaways [01:11] - Cullen's favorite albums and music preferences. [06:00] - Cullen's philosophy on investing and asset allocation. [07:00] - A common misconception about investing. [10:39] - How Cullen manages the most crucial aspect of investing. [13:22] - How the concept of duration applies to bonds. [15:26] - What break-even means to investors. [16:24] - Practical application of duration in financial planning. [23:39] - How Discipline Funds customizes portfolios. [26:36] - How Cullen implements Defined Duration Investing in his firm. [30:53] - How investors can incorporate Defined Duration Investing in their portfolios. [35:46] - Life insurance as a defined duration instrument. [39:29] - The importance of technology in portfolio management. [42:24] - Cullen's outlook for the trends likely to occur in 2024. [45:14] - How to learn more about Cullen Roche and Discipline Funds. Quotes [09:22] - "The stock market and the financial market are not a place where you get rich. You're going to get rich generally from building your own skills and generating an income from that. And then the stock and bond markets are where you can diversify and protect your wealth from things like inflation and instability and whatnot." ~ Cullen Roche [16:00] - "The stock market should be best thought of as a multi-decade instrument. It is inherently a long-term instrument." ~ Cullen Roche [46:08] - "We are helping people better understand the world for what it is so they can build better financial plans and better portfolios to help them achieve their financial goals." ~ Cullen Roche Links  Cullen Roche on LinkedIn Cullen Roche on Twitter Discipline Funds Cosmo's Factory Outkast Stankonia  Life After Death Sundown by Gordon Lightfoot John Bogle Defined Duration Investing Discipline Alerts Connect with Us Meet Ryan Donovan and George Svagera Check Out All of Orion's Podcasts Power Your Growth with Orion 2953-OAT-10/27/2023