Episode Summary

Many retail investors do not know the difference between an equal-weight index and a cap-weighted index. Michael Willis, CEO of Index Funds, explains why the difference matters, and why as an adviser you may want to consider adding some equal-weighted products to your portfolios. Shannon McLay, founder of Financial Gym, joins to share her story of founding the disruptive and influential startup looking to change the way financial planning is done.

Episode Notes

Michael Willis interview - 1:00-21:45

• The cap-weighted vs. equal-weight distinction
• What’s holding back adoption of equal-weight indices
• Potential expansion of the equal-weight approach and the shifting macro dynamics
• Relative performance and the nature of how cap-weighted and equal-weight work
• The aha moment

Shannon McLay of FInancial Gym interview - 22:00-53:00

• The inception of Financial Gym
• Apps vs. coaching as a way to teach people about finance
• Fitness as a concept for financial health
• The target audience
• How the gym model works
• How this coexists with the financial advisor model and expands the potential client base
• Using social media and online "gyms" in the business

Guest Bios:

Michael Willis has worked in the Wall Street industry for the past 25 years. He is the lead portfolio manager for INDEX FUNDS and previously worked for UBS, Paine Webber and Smith Barney. Mike enjoys turning big ideas into reality.

Shannon McLay graduated cum laude with a degree in business from Wake Forest University in 2000 and has worked in financial services for the last 17 years. Her experience is in institutional sales, retail sales, hedge fund sales and management. She is the author of "Train Your Way To Financial Fitness" and her blog, Financially Blonde, as well as being a contributor to AOL, LifeHacker, Huffington Post, US News & World Reports, Budgets Are Sexy, Frugal Rules and others. Shannon hosts the award-winning business and investing podcast, Martinis and Your Money – Living a Better Life One Cocktail at a Time, and is dedicated to helping people achieve financial freedom, which is how the Financial Gym came to be.