Intergenerational Wisdom, Risk, and the Functions of Finance with Zvi Bodie | Treussard Talks (E05)

Intergenerational Wisdom, Risk, and the Functions of Finance with Zvi Bodie | Treussard Talks (E05)

On this episode, I sit down with Zvi Bodie—economist, author, advocate for the American investor, and my father-in-law—to explore how the core functions of finance shape not just markets and policy, but also the way we live, save, and prepare for uncertainty across our lives.

Our conversation takes us from Zvi’s journey growing up in Brooklyn and pursuing philosophy before discovering economics, to his pioneering research in risk, inflation-protected bonds, and the very real-world consequences of retirement planning and societal change. We dig into what it means for financial tools and policies to genuinely serve individuals and communities, how the theory-practice divide can be bridged, and why teaching and translation matter.

You’ll hear us cover:
- Zvi’s path from Brooklyn to MIT to decades of teaching and advocacy
- How and why “stocks are not a hedge against inflation”—and the fallacy of “stocks for the long run”
- The invention, economics, and purpose of inflation-protected bonds (like TIPS and I-Bonds)
- Why understanding core financial functions matters more than fixating on products or institutions
- How evolving societal needs gave rise (and death) to pensions, 401(k)s, and mutual funds—and why adaptability is essential
- Lessons from crises (LTCM, tech bubble, GFC) about psychology, risk, and humility
- The vital importance of saving, preparing for adversity, and building resilience—financially and emotionally
- The power of clear communication, financial literacy, and the meaning that comes from teaching and nurturing the next generation

Zvi brings intellectual honesty, historical context, and a deep commitment to making finance accessible—blending academic rigor with genuine care for families and everyday investors.

If you want to understand how finance really underpins our lives—and how its core principles translate into better decisions for your future—this conversation is essential listening.

If this resonates with you, consider subscribing to Wealth, Empowered (https://wealth-empowered.beehiiv.com/), my bi-monthly newsletter, where I share candid insights at the intersection of money, meaning, and modern wealth.

DISCLAIMER: The content of “Treussard Talks” is for informational purposes only and should not be considered financial advice. The views expressed are those of Jonathan Treussard and his guests and do not necessarily reflect the opinions of Treussard Capital Management or its affiliates. Listeners should consult with their own financial advisors before making investment decisions. Go to treussard.com for additional disclaimers.

01:00 — Zvi’s early years, education, and path into economics and finance
10:00 — Foundational lessons at MIT: the rise of financial science
13:00 — Why stocks are not true inflation hedges or “safe in the long run”
19:00 — The creation and purpose of inflation-protected bonds (TIPS, I-Bonds)
23:00 — The functional perspective: why finance is about serving core human needs, not product labels
27:00 — Retirement: how and why pensions gave way to 401(k)s, and what’s lost and gained
32:00 — How psychology, herding, and surprise drive crises like LTCM, tech bubble, GFC
37:00 — Integrating finance, decision-making under uncertainty, and the next generation
40:00 — “Principles of Finance”: teaching core concepts and empowering new investors
44:00 — Market psychology, humility, and preparing for the unexpected
45:00 — The importance of saving, resilience, and community at every stage of life
48:00 — Why teaching, financial literacy, and nurturing others is at the heart of fulfillment
50:00 — Rapid-fire reflections: favorite words, sounds, fears, and hopes for the next generation