John Y. Campbell: Fixing Personal Finance | Rational Reminder 380

Meet with PWL Capital: https://pages.pwlcapital.com/en-ca/contact-us?utm_source=content&utm_medium=youtube&utm_campaign=rationalreminder_yt Avoid Online Scams: https://pwlcapital.com/stay-safe-online/ What if capitalism itself is confusing your personal finance decisions? In this week’s episode, Harvard economist John Y. Campbell joins us to unpack his new book, Fixed: Why Personal Finance Is Broken and How to Make It Work for Everyone, co-authored with Tarun Ramadorai. John argues that the financial system—while essential—is failing ordinary people through complexity, hidden costs, and misplaced incentives. Drawing on decades of research in household finance, he explains why products are too expensive, advice too conflicted, and decisions too difficult, and how policy and design can fix it. Timestamps: 0:00:00 Intro 0:06:52 The role of the financial system from the perspective of an ordinary person 0:08:36 The main problems with the financial system in its current state 0:14:03 How effective financial literacy education is at improving financial behaviors 0:17:49 How capitalists respond to investors who misperceive the benefits and costs of financial products 0:26:50 Who tends to benefit from innovation in retail financial products 0:29:34 What makes conflicts of interest in retail finance such a big problem for consumers 0:33:22 The downsides of avoiding the financial system entirely by keeping cash or gold “under your mattress” 0:39:37 How someone should decide to go to college 0:43:03 How someone should decide to buy a home 0:49:24 The most common mortgage-related mistakes that households make 0:54:55 How utility as a concept informs sensible risk-taking 0:57:32 The most important principles for successfully investing in stocks 1:03:25 The biggest insurance mistakes that people make 1:08:53 How retirement savers should allocate their investments 1:13:46 The role technology has played in improving access to finance 1:18:54 How regulators can both allow innovation and protect consumers 1:21:36 The role governments should play in improving the financial system 1:27:00 Where the line where regulation has gone too far is 1:33:06 The main principles John would follow in designing a better financial system 1:36:19 Where the analysis of the financial system, its shortcomings, and proposed solutions goes next 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://x.com/RationalRemind Rational Reminder on TikTok — www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.ca Benjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/