Money Lessons with Andrew Temte, PhD, CFA

Insurance for Everyone - The Democratization of Risk Protection

In this episode of Saturday Morning Muse, Andy explores the evolution of insurance and its democratization in the late 19th century. He discusses how industrial life insurance, expanded property coverage, and the rise of automobile insurance transformed the industry into a mass market service accessible to ordinary families. 
 
Andy highlights the significant innovations that made insurance affordable and essential, as well as the role of insurance companies as major institutional investors in the early 20th century.

The Birth of Modern Insurance: Lloyd's Coffee House

In this episode of Saturday Morning Muse, Andy explores the origins of modern insurance, focusing on Edward Lloyd's Coffee House in the 1680s. 
He discusses how Lloyd's transformed the insurance landscape by introducing innovative practices such as syndicated underwriting, the publication of shipping news, and the establishment of a systematic reinsurance market.

The Ancient Art of Risk Sharing

In this episode of Saturday Morning Muse, Andy explores the evolution of insurance, tracing its origins from ancient civilizations to modern practices. He discusses how early merchants shared risks to protect their goods, the development of mutual aid societies in medieval Europe, and the establishment of formal insurance contracts. The conversation culminates in the recognition of the need for systematic fire insurance following the Great Fire of London, setting the stage for the emergence of modern insurance marketplaces.
#Insurance #economichistory #financialliteracy #risksharing #greatfireoflondon #mutualaidsocieties

The Dark Side of Compounding

In this episode of Saturday Morning Muse, Andy explores the dual nature of compound interest, highlighting its potential to build wealth while also revealing its darker side through the lens of compound debt. 
The discussion emphasizes the importance of understanding how compound interest works in both investing and borrowing contexts, particularly in relation to credit card debt. Temte provides practical advice on managing debt and making informed financial decisions to harness the power of compound interest for wealth building.

Unlocking the Power of Compound Interest

In this episode of Saturday Morning Muse, Andy explores the concept of compound interest, its historical significance, and practical applications for building wealth. 
 
He explains the mathematics behind compound interest, introduces the Rule of 72 for estimating investment growth, and illustrates the impact of small daily expenses on long-term wealth accumulation through the 'latte effect.' Andy emphasizes the importance of time and consistency in investing, particularly for young investors, and warns about the dangers of high-interest debt.

The History of Compounding & Compound Interest

In this episode of Saturday Morning Muse, Andy explores the concept of compound interest, discussing its historical significance and mathematical foundations. He introduces Benjamin Franklin's experiment with compounding, the contributions of mathematicians like Edmund Halley and Leonhard Euler, and the implications of compounding in both wealth creation and destruction, illustrated by the Tulip Mania and government debt crises. The episode emphasizes the importance of patience and long-term thinking in financial growth.

The Many Faces of Return: Understanding Investment Performance

In this episode of Saturday Morning Muse, Andy delves into the basics of investment returns, emphasizing the importance of understanding different types of returns such as nominal, real, holding period, and total returns. The discussion also touches on the historical development of return calculations and the significance of the compound annual growth rate (CAGR) in comparing investments over time. Andy encourages listeners to be informed and critical of marketing materials that may present misleading return figures.
#financialliteracy #investmentreturns #interestrates #personalfinance

Understanding Inflation: When Money Loses its Power

In this episode of Saturday Morning Muse, Andy explores the concept of inflation, its historical context, and the implications of monetary policy on everyday life. He discusses the various types of inflation, including demand-pull, cost-push, monetary, and expectational inflation, and illustrates these concepts with historical examples, particularly the Great Recoinage of 1696. Andy emphasizes the importance of understanding inflation to make informed financial decisions and highlights the complexities of monetary policy.
#financialliteracy #personalfinance #inflation #economichistory #macroeconomics #purchasingpower #deflation

The Moral Dilemma of Interest

In this episode of Saturday Morning Muse, Andy explores the historical tension between the moral objections to charging interest and the economic necessity for credit. It traces the evolution of interest from ancient civilizations, through religious prohibitions, to modern acceptance, highlighting the innovative financial practices that emerged to reconcile these conflicting views. The discussion emphasizes the ongoing challenge of balancing the need for credit markets with concerns about exploitation and inequality.

Interest: The Price of Money

In this episode of Saturday Morning Muse, Andy discusses the concept of interest, exploring its fundamental role in economics as the price of time. He explains how interest rates are determined by factors such as inflation, real returns, and risk compensation. The discussion also covers the calculation of simple interest and the implications of understanding interest for personal financial decisions. Temte highlights the historical moral dilemmas surrounding interest and emphasizes its significance in modern economic systems.