Episodes

  • Could This Be the #1 Reason to Invest in Index Funds: Part 2

    Could This Be the #1 Reason to Invest in Index Funds: Part 2

    · Sound Investing

    On December 26, 2019 Paul recorded a podcast entitled, “Could This Be the #1 Reason to Invest in Index Funds?” In this podcast he addresses the topic again in “Could This Be the #1 Reason to Invest in Index Funds: Part 2”

    The podcast reviews the well established index advantages and adds one that may be the biggest reason an investor is able to stay the course. This might be a good podcast to share with your young adult children.

  • Risk with Paul, Daryl and Chris

    Risk with Paul, Daryl and Chris

    · Sound Investing

    Paul, Daryl, and Chris discuss the risks of investing and life.

    Paul starts with an introduction and admission of his challenges managing risks related to diet and health. He then gets Chris and Daryl to chime in with their definitions and perspectives on risk.

    Daryl then shares a framework for evaluating risk from his days as a systems engineer. The framework looks at risks in two dimensions: likelihood and impact (or severity). He describes how the framework can help prioritize which risks to mitigate and gives examples of how some financial risks might be reduced in both dimensions. Chris is reminded of the book "Die with Zero," and mentions how risks extend beyond finances to experiences.

    Paul, Chris, and Daryl then discuss some of their challenges in managing the risks of their own portfolio allocations and how their behaviors differ from what might be considered ideal. This leads to discussing the dangers of learning the wrong lessons with examples from inside and outside the personal finance world.

    Paul reads from the Jonathan Clements article that inspired this podcast: "The Risks We Miss."

    Paul then closes out the podcast.

    Outtakes include Paul and Chris discussing how the Best-in-Class ETFs can help mitigate risk, and what Daryl wants for Christmas.

    Watch video here- https://youtu.be/veXXh-YVYKU

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  • Questions from Paula Pant

    Questions from Paula Pant

    · Sound Investing

    While I was at the Bogleheads conference in Minneapolis earlier this year, I had a lengthy interview with Paula Pant.

    I enjoyed the interview and found lots of questions and comments under the YouTube presentation that I wanted to answer.

    While I wrote short comments on the site, I decided many of the questions were worthy of more discussion.Here is a link to the YouTube interview and podcast:

    #1. “Most of my holdings are in cash as I cashed out last time the market went down. How do I stay invested and think long-term to help me ride out the ups and downs of the market?” 02:17

    #2. “I’m just beginning my investment journey and planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns.” https://rethinking65.com/the-preference-for-dividend-paying-stocks-is-irrational/ 10:41

    #3. "What Fidelity Funds do you recommend to build your 4 Fund Portfolio?" 15:00

    #4. "How often do you recommend rebalancing the 4 Fund Portfolio?" 17:02

    #5 "Nobody knows what’s going to happen next so we should practice some humility and CHOOSE a strategy with a long-term edge." What is the edge and what else do you need to know dividend stocks k? 21:02

    #6. "I”m not looking to beat the S&P 500
I’m more than happy with the returns I get from it.” Does that mean it’s right for you? 24:36

    #7. In response to Paul's recommendation of the 4 Fund Portfolio this is what one viewer said, “For what it's worth, backtesting shows his proposed fund portfolio does not do better than VTI or VOO.” Paul responds. 28:32

    #8. "The only small cap value available in my 401k is DFSVX which has an expense ratio of .30%. Is this expense ratio too high? 32:32

    #9. "Can you give ETF recommendations for all of the equity asset classes?" Here are the Best In Class recommendations. 35:23

    #10. "How do you fund a Roth IRA when a child doesn’t have earned income?" #11. Please recommend more information on how I might adjust my 401k. We're talking millions and 2 funds for life. 36:37

    #11 "Would you accomplish similar performance results by setting up a strategy using sector diversification instead of asset class diversification?" 40:01

    #12 "I’m helping my 17 year old daughter with her Roth IRA. What do you think about shooting for an all equity 40/30/30 portfolio of US small cap value/S&P 500/Total International market?” 42:23

    #13. “This guy has been pushing small cap value and underperforming for years. Sorry, no thanks." 44:25

  • Investing at market high, market timing, best distribution strategy

    Investing at market high, market timing, best distribution strategy

    · Sound Investing

    The podcast is dedicated to answering questions about:

    Target date funds: “Do you think someone that simply maxes out their retirement accounts with target date funds and total market funds will be “fine”?

    Selecting a distribution strategy: What advice can you give to a DIY investor who is trying to decide what to do about how they access their money to live on and how much to take out?

    Buy and Hold vs. market timing: I believe in buy and holding index funds, with low expenses. I don’t think I need to pay an investment advisor to help me do that. I see the Merriman Wealth Management firm offers buy and hold and market timing services and charges AUM fees. This is very different from what you suggest on your Foundation website. What is your relationship with the Merriman firm and what are your beliefs about market timing?

    All small cap value portfolio: Do you know investors who are investing 100% of their portfolios in small cap value? It seems like it might be a smart thing to do with very long term investments for a very young person.

    Time to start market timing: I am thinking about using timing with a large amount of new money. Who do you use for the market timing aspect of your portfolio management?

    Flexible vs. fixed distribution strategies: "I believe you expect that a flexible withdrawal strategy will pay out more money to live on, as well as leave more money to heirs. Bill Bengen seems to believe that this strategy is not sustainable over the long term even if a person had enough money to accept lower annual withdrawal amounts in market draw downs. Flexible withdrawal strategies make sense to me but there isn’t much writt en about them. What am I missing?”

    The answer to this question includes 4 distribution tables:

    Table D1.4 - Fixed Distributions: S&P 500 Equity Portfolio - Conservative ($40,000/yr)

    Table F1.4 - Flexible Distributions (Conservative-4.0%/yr): S&P 500 Equity Portfolio

    Table D4.4 - Fixed Distributions (Conservative-$40,000/yr): US 4-Fund Equity Portfolio

    Table F4.4 - Flexible Distributions (Conservative-4.0%/yr): US 4-Fund Equity Portfolio

    Finally Paul reads four Ben Carlson quotes about the nature of bull and bear markets. Paul makes reference to a table of annual Price to Earning (P/E)ratios starting in 1871 and another comparing the S&P 500 Price to Book Value from 2000 to 2024.

  • The Magic of Goal Setting

    The Magic of Goal Setting

    · Sound Investing

    As this podcast is being released on Thanksgiving Day Paul begins by thanking those people who choose to follow the Foundation’s work, those who forward our articles, podcasts and videos to others, and those who donate time and money to the Foundation.

    He also addresses the challenges of living at three different homes (Bainbridge Island, Portland and Rancho Mirage) in 2024. We know some donations have been lost in the mail.

    Our concern is people will declare a charitable deduction that did not actually happen. By the way, the permanent address of the Foundation is now -

    2445 NW Westover Road #311,

    Portland, Oregon 97210.

    Paul comments on his challenges in recommending cryptocurrency.

    Finally he discusses the life changing impact of goal setting.

    The following are articles and videos on goal setting from some of the Truth Tellers Paul recommends.

    Jim Dahle writes to young doctors but the information is usually good for all people who are putting together a financial plan. The Power of Focus in Your Financial Life

    Jonathan Clements is struggling with cancer and for anyone facing death sooner than expected, and the goal setting that might be considered, I think you will find his journey worth reading. The C Word.

    William Bernstein has recently updated his best selling , “The Four Pillars of Investing.” In this short introduction you will hopefully decided it’s worth reading the rest of the book.

    Here is a podcast that you won’t want to miss. Larry Swedroe is interviewed by another Truth Teller, Ben Felix and Cameron Passmore. The book they discuss has been updated since the interview. "Your Complete Guide to a Successful and Secure Retirement" is one of the best books I know for those trying to address the many important retirement goals.

    While Christine Benz is the Director of Personal Finance at Morningstar I thought it might be interesting to get her take on the non-financial plans we should consider. Her new book has become a best seller. How to Retire: 20 lessons for a happy, successful, and wealthy retirement.

  • Interview with Brian Barnes, Founder and CEO of M1 Finance

    Interview with Brian Barnes, Founder and CEO of M1 Finance

    · Sound Investing

    Paul and Chris interview M1 Finance's CEO, Brian Barnes, and ask several listener questions.

    This is the follow-up to their previous M1 Finance 2024 update podcast and YouTube video.

    They start by asking Brian how and why he created the company. That's followed by a wide-ranging conversation that includes some interesting surprises, like Chris's realization that using M1's target-date pies instead of traditional target-date funds can result in some real tax efficiency.

    Here's the topic list with time codes.

    00:00:00 Intro

    00:08:12 M1 Genesis

    00:12:51 Partial-Share ETF Trading

    00:15:59 Who is M1 for?00:19:42 What's next?

    00:22:44 Is M1 a robo-advisor?

    00:25:36 M1 Pies

    00:29:38 Pies vs. TDFs00:34:32 Tax Efficiency

    00:35:46 How safe is M1?

    00:41:13 Fixed trade windows

    00:48:07 Crossing orders

    00:49:22 Competitive rates

    00:51:29 Which ETFs?

    00:53:19 Fees?

    00:57:07 Multi-account rebalancing?

    00:58:31 Entrepreneur's experienceDisclaimers:Content is not intended to provide personal tax or financial advice.
    This information is intended to be used and must be used for information purposes only.
    M1 is a technology company offering a range of
    financial products and services. “M1” refers to
    M1 Holdings Inc., and its wholly-owned, separate
    affiliates M1 Finance LLC, M1 Spend LLC, and
    M1 Digital LLC.
    Related to M1 Spend:
    For informational purposes only and not a trade
    recommendation. All product and company names
    are trademarks or registered trademarks of their
    respective holders. Use of them does not imply any
    affiliation with or endorsement by them.

  • Can we count on AVUV high performance in the future?

    Can we count on AVUV high performance in the future?

    · Sound Investing

    Paul mentions his upcoming presentation to the ⁠⁠L.A. Chapter of AAII⁠⁠ on November 16, 2024 10:30 to noon.

    Chris Pedersen and Daryl Bahls join Paul to answer your questions. Paul opens the podcast with a brief introduction of the team and notes how thankful he is for their commitment to helping others.

    Paul mentions the huge moves small cap value funds made on November 6. He follows that with a comparison of the 5 year returns of AVUV and 3 Vanguard small cap value funds (VBR, VIOV and VTWV). AVUV compound rate of returns were 3 plus percent higher than the Vanguard funds. Paul’s questions: What caused the higher returns and are they likely to be similar in the future?

    Chris responds with a lengthy discussion of the systematic approach that AVUV uses and Paul reads what AVUV says about their systematic approach.

    Chris compares the DFA small cap value fund (DFSV) with AVUV. Chris also talks about a relative ranking he wants add to his Best In Class recommendations next year.

    Chris discusses the quality factor of AVUV vs. funds that build their small cap value portfolio using the Russell 2000 Small Cap Value Index. He introduced a new term: rich minus weak ratio.Paul and Chris discuss the question: Is AVUV and actively managed fund?

    Question: JL Collins recommends VTI (Total Market Index) and Warren Buffett recommends VOO (S&P 500). Which do we recommend? Chris notes the important differences between VTI and AVUS and suggests a likely extra .5% return from AVUS.

    For those who want to own only total market funds, the group discusses the possibilities of replacing both VIT(U.S. Total Market) and VXUS (International Total Market) with total market indexes that favor slightly smaller companies with a slightly more value tilt.

    Paul references Ben Carlson’s article about, ⁠⁠“Some Things I Don’t Believe About Investing.”⁠⁠

    Chris, Daryl and Paul weigh in on things they don’t believe about investing.Chris ends with some important comments about how we are likely helping investors.

    Watch video here.

  • Selecting the best small cap value, gold and the challenges of buy and hold

    Selecting the best small cap value, gold and the challenges of buy and hold

    · Sound Investing

    On November 16, 2024 Paul will speak to the L.A. Chapter of AAII via a Zoom presentation. Here is the link:

    2 Funds to Own Forever, and How to Invest in Small Caps
    In this podcast Paul addresses 4 major considerations when selecting a small cap value ETF. His discussion compares the returns, along with 4 major factors, for AVUV, VBR, VB,, VIOV, DFSVX and DFSV.
    Is gold worthy of a place in our portfolios? Probably not but Paul talks about his gold position and why bonds are likely a lot better.
    He also discusses the important decision to choose buy and hold over market timing. He references the following article from Truth Teller Ben Carlson:

    Don’t Take Financial Advice From Hedge Fund Managers

  • The 4-Fund Strategy That Beats the S&P 500

    The 4-Fund Strategy That Beats the S&P 500

    · Sound Investing

    Watch the video here.Paul Merriman, a former wealth manager turned financial educator, joins us to share investing wisdom that could reshape how you think about your money.
    We kick things off talking about portfolio diversification. Paul suggests a simple four-fund strategy that includes large cap, small cap, and value stocks. He says this mix has historically beaten the S&P 500 with lower risk.
    We then dive into international investing. Paul explains that while adding international stocks doesn't necessarily boost returns, it can help smooth out the ride. He keeps half his equity portfolio in international stocks, even at age 81.
    Got kids? Paul's got some advice for you too. He tells us about putting money aside for his new granddaughter, aiming to fund her Roth IRA as soon as she can earn income. He breaks down how investing just a dollar a day from birth to age 21 could turn into millions by retirement age. It's a powerful lesson in starting early and the magic of compound interest.
    We also chat about some common investing mistakes. Paul stresses that young investors often underestimate the power of stocks over bonds for long-term growth. He shares some eye-opening numbers: $100 invested in bonds since 1928 would have grown to about $12,000, while the same amount in small cap value stocks would be worth nearly $15 million.
    Paul wants you to think of investing as a partnership with businesses. When you buy a mutual fund, you're becoming a senior partner in thousands of companies. At first, your contributions drive most of the growth. But over time, market returns take over, and you become the junior partner to a much larger fortune.
    We wrap up with Paul sharing his excitement about a 40-hour financial education program he helped create at Western Washington University. It's designed to teach students essential money skills throughout their college years, from budgeting as freshmen to understanding 401(k)s as seniors.
    Throughout our chat, Paul's message is clear: start early, stay diversified, and think long-term. He believes that with the right education and mindset, anyone can build a solid financial future.
    4 Fund Combo Guide
    Table Numbers
    Quilt Charts
    Historical Risk and Return Tables
    Portfolio Configurator
    Timestamps:
    Note: Timestamps will vary on individual listening devices based on dynamic advertising run times.
    0:00 Intro to Paul Merriman and podcast topic
    0:57 Two-fund portfolio strategy
    3:55 Four-fund portfolio strategy explained
    5:31 Large cap performance concerns
    7:06 S&P 500 vs Total Market Index
    10:59 AI impact on large companies
    14:43 Market trends and historical performance
    20:41 International equity in portfolios
    25:26 ETFs vs index funds
    29:41 Non-US investor asset allocation
    38:41 Setting up kids financially
    43:57 Early investing importance
    48:37 Common investor mistakes
    50:25 Investing as business partnership
    52:51 Evolving financial education landscape
    For more information visit the show notes- https://affordanything.com/550-paul-merriman-the-4-fund-strategy-that-beats-the-sp-500/

  • Paul Merriman: Millionaire Index Fund Investing Portfolios

    Paul Merriman: Millionaire Index Fund Investing Portfolios

    · Sound Investing

    The Marriage Kids and Money Podcast is dedicated to helping you do just that. Each week, Andy Hill interviews personal finance experts, millionaire parents and financially independent couples to find out how they achieved their success. He then takes that information and breaks it down into digestible takeaways that will help you win with money.

    With over 400 episodes and counting, Marriage Kids and Money has been awarded “Best Family Finance Content” by Plutus two years in a row and "Content Creator of the Year". We review everything from how to achieve family financial independence to how to help your kids become future millionaires (who are generous).

    Paul Merriman shares how DIY investors could become millionaires through a 2 Fund Portfolio and/or 4 Fund Portfolio! GUEST BIO - Paul MerrimanWhen I sold my investment advisory practice, I founded a financial education foundation designed to help do-it-yourself investors of all ages improve their investment returns, at less risk and with greater peace of mind. I am the author of 8 books including "We're Talking Millions! 12 Simple Ways to Supercharge Your Retirement."

    ⁠Watch the video here.⁠

  • Morningstar How-To with Paul and Chris

    Morningstar How-To with Paul and Chris

    · Sound Investing

    Investors need to get past marketing and sales pitches to know what they're getting when they invest. Morningstar is a great place to get that depth.

    Paul and Chris describe how they each use the free Morningstar tools to evaluate mutual fund and ETF characteristics, such as:

    * Expense ratios

    * Liquidity and bid/ask spreads

    * Geographic focus

    * Value and size tilts

    * Financial characteristics

    * Factor exposures

    * Number of holdings

    * Tax efficiency and* Charted historical performance with side-by-side comparisons.

    Chris also briefly describes how he uses the premium X-Ray feature to compare portfolios with different fund families, including the Best-in-Class ETFs, which he plans to update early next year.

    For those interested in a more quantitative approach, please take a look at the Bootcamp video Chris created for the Best-in-Class ETF selection process, where he describes how he uses Portfolio Visualizer to quantify fund factor exposures and factor statistics to estimate expected returns. Here's a link to that video at the time where the Portfolio Visualizer discussion begins: ⁠https://youtu.be/UaEC-JZYYJA?t=852⁠

    Here is the video link for this podcast.

    https://www.youtube.com/watch?v=rDN3LyEFk3E

  • The Magic of Indexing

    The Magic of Indexing

    · Sound Investing

    Paul updates his list of reasons to use index funds plus comparing the handful of Vanguard Small Cap Value ETFs (VTWV, SLYV, VBR AND VIOV) with the newer Avantis and DFA small cap value ETFs. He also makes the case that AVUS and DFAU total market funds are likely to produce better returns than VTSAX, VTI, VOO AND VFINX.

    He also discusses the 15 year returns of 6 each large cap growth, large cap value, small cap blend, small cap growth and small cap value indexes. The lessons from these tables should be enough to encourage investors to take a closer look at the holdings in their holdings in these asset classes.

    In his discussion of indexing he mentions a podcast "#1 reason to own index funds " that has had more than 1,067,000 opens and his MarketWatch article entitled “30 Reasons I Love Index Funds.” He also committed to producing a video, on how to use Morningstar to compare your mutual fund and ETF investments, before the end of the year.

  • M1 Finance Updated 2024

    M1 Finance Updated 2024

    · Sound Investing

    Chris & Paul walk through the changes to The Merriman Financial Education Foundation’s relationship with M1 Finance, including affiliate commissions, a new emphasis on accurate messaging, and improved pre-made portfolio shortcuts (M1 calls them Pies).

    The new Pies now include all of our Sound Investing equity portfolios, taxable and tax-deferred fixed-income portfolios, and 5-year increments of the Merriman Aggressive Target-Date Glide Path allocations. Chris shows how easy it is to mix them to get the equity and fixed income ratio you want. He also shows how to approximate intermediate years along the target-date glide path. Finally, Paul challenges him to create a mix of several different equity strategies, which he demonstrates.

    Following the demonstrations, they briefly discuss how M1 compares to Fidelity’s offering.

    They close with a request for listener questions to be used in an upcoming interview with M1 Finance’s founder and CEO, Brian Barnes. If you have any, please email them to [email protected].

    M1-Related Disclosures

    This podcast and video were recorded on September 12, 2024. All information is subject to change. The opinions expressed are solely those of the authors and do not reflect the views of M1. They are for informational purposes only and are not a recommendation of an investment strategy or to buy or sell any security in any account. They are also not research reports and are not intended to serve as the basis for any investment decision. Prior to making any investment decision, you are encouraged to consult your personal investment, legal, and tax advisors.

    M1 is a technology company offering a range of financial products and services. “M1” refers to M1 Holdings Inc., and its wholly-owned, separate affiliates M1 Finance LLC, M1 Spend LLC, and M1 Digital LLC.

    If you choose to transfer your account to another broker-dealer, only the full shares are guaranteed to transfer. Fractional shares may need to be liquidated and transferred as cash.

    All examples above are hypothetical, do not reflect any specific investments, are for informational purposes only, and should not be considered an offer to buy or sell any products.

    All investing involves risk, including the risk of losing the money you invest. Brokerage products and services are offered by M1 Finance LLC, Member FINRA / SIPC, and a wholly owned subsidiary of M1 Holdings, Inc.

    M1 does not provide investment advice, and this is not an offer or solicitation of an offer, or advice to buy or sell any security, and you are encouraged to consult your personal investment, legal, and tax advisors. M1 is not recommending or endorsing this investment by making it available to its customers.

  • Lessons for Bogleheads

    Lessons for Bogleheads

    · Sound Investing

    In preparation for his presentation at the Bogleheads Conference Paul reread John Bogle’s “The Little Book of Common Sense Investing” He has been recommending the book since 2007 but in 2017 Wiley published the updated and revised edition. There is some terrific new material in the revised edition.
    Paul focuses on several topics from the book including Bogel’s statement that index funds are the only “honest” funds. Paul discusses the reasons actively managed funds can’t afford to tell the truth.
    Paul also discusses Chapter 2 on Rational Exuberance. In this chapter Bogle discusses the very important topic of investment returns vs. speculative returns. This topic is essential for do it yourself investors to understand as it prepares them for a reality of investing that could help them stay the course during difficult times.
    Paul ends by reading Bogle's list of 8 common sense realities that every investor should know. It would probably be smart to reread this short list at least once a year.
    At the Bogleheads conference Paul will speak twice: once in an interview with Jim Dahle (The White Coat Investor). The topic is factor investing. We have developed a page of links to all of the tables that are focused on the use of factor funds to build a portfolio. Here is a link to that list of tables, charts and graphs.
    In his second opportunity to share he is part of a panel on investing. That will be a free for all and should be fun.
    All of the conference presentations are being taped so they will be available in the coming months.

  • Paul Merriman’s 12 Million Dollar Ideas for Investing Success

    Paul Merriman’s 12 Million Dollar Ideas for Investing Success

    · Sound Investing

    I had an amazing conversation with David Baughier on the Forget About Money podcast!

    We discussed my 12 One-Million Dollar Ideas for building wealth, the power of starting early, and why index funds are a game-changer for long-term investing.

    We also covered the importance of diversification, the benefits of small-cap value stocks, and why sticking with a buy-and-hold strategy beats trying to time the market.

    Whether you're new to investing or looking to refine your retirement plan, this episode has actionable tips to help you secure your financial future. Give it a listen—you won’t want to miss it!

    Watch the video here.

    Download the transcript here

  • New Table, SCV Returns, Hourly Advisor Recommendation

    New Table, SCV Returns, Hourly Advisor Recommendation

    · Sound Investing

    Paul starts the podcast with a discussion of his ⁠special presentation⁠ to the graduating nurses from the College of Nursing at Texas A&M. This presentation was part of a Life Transitions Series. He discusses how he might be able to do a similar presentation for other groups of graduating college students, as well as groups of investors who are trying to get the most from their company 401k.

    The second topic is regarding a new set of tables that should help investors figure out potential future returns for the S&P 500, ⁠Small Cap Value, U.S. 2 Fund Index Portfolio and U.S. 4 Fund Index Portfolio⁠.

    The third topic was motivated by Ben Carlson’s articles on “⁠Why Housing is Everyone’s Favorite Investment⁠” and “⁠What is the Historical Rate of Return on Housing?⁠” Paul recently sold his home and discusses the challenges of figuring out how the profits compared to the S&P 500., As promised Paul had his meeting with David Sterman, an hourly CFP, who has followed our recommendations. Paul discusses his services and costs.


    Here is his contact information:

    ⁠https://huguenotfinancialplanning.com⁠

    1358 Old Ford Rd. New Paltz, NY 12561

    Phone: (917) 553-0675⁠

    [email protected]⁠

    For those interested in the Boglehead Conference:

    ⁠https://boglecenter.net/2024conference/⁠

  • DCA vs. Lump Sum, Not Trusting SCV, Maximizing Roth, Moving From Ultimate B/H to Smaller Portfolio and More

    DCA vs. Lump Sum, Not Trusting SCV, Maximizing Roth, Moving From Ultimate B/H to Smaller Portfolio and More

    · Sound Investing

    Paul starts the podcast talking about the upcoming Boglehead Conference (Sept.27-29) in Minneapolis. The following link lists the speakers and topics. https://boglecenter.net/2024conference/

    Q1: Should I invest $300,000 inheritance all at once or dollar cost average? 02:23


    Q2: If SCV is such a great asset class why do the companies all have such low P/E ratios? 8:06


    Q3: Given that our Roth IRAs have unlimited investment options how should we approach investing in our Roth accounts to best complement the life cycle funds in our 401k? 21:54

    Q4: Should we invest our IRA contributions the first of the year or dollar cost average over the year? 24:56

    Q5: I’m 70 and am considering a combination of the 2040 target date fund and small cap value. How much should be in each? 26:34


    Q6: Been in Ultimate Buy and Hold since 2013. I’m thinking about simplifying by using 2 or 4 fund portfolios. What are the pros and cons of change? ⁠Recommended reviewing.⁠ 29:37

    Q7: Can I still rollover regular IRAs into Roth now that I am retired? ⁠Recommended reading.⁠ 35:50

    Q8: As a risk reducer to equities can I use T-Bills and money market funds rather than any kind of bonds. 37:35

  • Dave Ramsey, Crypto Currency, Trusting Past Performance and More

    Dave Ramsey, Crypto Currency, Trusting Past Performance and More

    · Sound Investing

    Paul starts with a general discussion of the decision to trust recent returns or make investment based on longer term returns. He uses AVUV and ARKK as two investments you could have made in September 2019. In the discussion he references a video where arkk creator and fund manager predicts future arkk returns.

    Q: #1: Why should future results look like the past? 16:15

    Q: #2 We are in mid 50s and we think we have more money than we will need in retirement. Is there a rule of thumb for how much money one needs? Should one just figure out their cost of living and back into the amount needed for retirement? 26:50

    Q#3 Have you done a comparison of your returns compared to Dave Ramsey’s recommended portfolios? 32:55

    Q #4 How can we teach young investors about the advantage of starting investing ASAP? See the following set of PowerPoints for the ⁠⁠Orange County AAII⁠⁠. 40:02

    Q #5 What is your take on Crypto Currency? Here is what people I trust say about CC.

    Warren Buffett: “In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,” Buffett said in 2018. And his stance hasn’t wavered since. According to Benzinga, Buffett believes that cryptocurrencies aren’t a viable or valuable investment. “Now if you told me you own all of the Bitcoin in the world and you offered it to me for $25, I wouldn’t take it because what would I do with it? I’d have to sell it back to you one way or another. It isn’t going to do anything,” Buffett said at the Berkshire Hathaway annual shareholder meeting in 2022.

    Ben Carlson: I have no idea what will happen with bitcoin or cryptocurrencies in general in the years ahead. Anyone who thinks they know with certainty how this all plays out is delusional. But I can say that my stance on crypto has evolved over the years to the point where I think the best-case scenario just might be the new digital gold.

    Larry Swedroe Swedroe took a more skeptical view of Bitcoin. He pointed out that Bitcoin’s value proposition is questionable. ⁠Bitcoin⁠ has a theoretical limited supply, capped at 21 million coins. However, the existence of an unlimited number of substitute cryptocurrencies means Bitcoin faces a daunting challenge. An asset with an unlimited supply typically sees its value approach zero. Swedroe categorized Bitcoin as a Ponzi scheme, though he acknowledged that it could achieve high trading values based on what people are willing to pay.

  • Leveraging ETFs, Moving from Cash to Equities, A Track Record You Can't Trust and more Q&A

    Leveraging ETFs, Moving from Cash to Equities, A Track Record You Can't Trust and more Q&A

    · Sound Investing

    1. My husband and I are moving to Fidelity to set up your Ultimate Buy and Hold Portfolio. How do we make the change from our holdings to your portfolio? Do I have to sell all of my holdings? Plus we want to find an hourly advisor to help. Can you make a recommendation? 1:45

    2. I have $1million in a money market fund. Do you think it is time to start reducing the cash position and moving to short term bonds or equity ETFS? 8:45

    3. Are target date funds the same as all in one funds? 17:15

    4. I would like your guidance on the decision to put together a S&P 500 and Small Cap portfolio using 3 to 1 leveraged fu?nds. Does the extra return justify the higher risk? 20:00

    5. How should I protect my portfolio against inflation from the loss of the petrodollar? 35:00

    6. From what I can see you have not addressed investment needs of older people in their 80s and 90s. How should I invest? I just can’t afford to lose money at my age. 39:17

    7. Would I be dumb to have 10% of my retirement funds in gold? 46:20

    8. With the fed getting ready to lower interest rates should I move my money market funds into 10 year Treasuries? 52:40

    9. In the small cap blend and small cap value indexes it seems investors don’t get the advantage of owning small companies that grow to be the giants of corporate America. How do you get the premium when you have to sell the companies when they move beyond their index? 59:15

    10. What is the difference between your 2 Funds for Life strategy and the two fund strategy that holds the S&P 500 and small cap value? 1:01

  • Gold, REITs, CDs, Glide Paths, Quilt Charts and More

    Gold, REITs, CDs, Glide Paths, Quilt Charts and More

    · Sound Investing

    1. What is the best glide path (asset allocation) for a 58 year old pre-retiree and then in retirement? This is the link for Chris Pedersen’s 2 Funds for Life glide path. 2:50

    2. I don’t need all of my RMD (required minimum distribution). How should I invest the excess? Here is the link to the video on "My 12 Favorite Vanguard Funds for Retirees” and the link to all of the Fine Tuning Tables. 11:19

    3. My wife has easily onset demential. It’s costs $200,000 a year. How should a family invest in a situation like ours? Here is the link to the Vanguard Brokerage CDs (⁠https://investor.vanguard.com/investment-products/cds⁠) and ⁠stantheannuityman.com⁠ for MYGA rates. 17:18

    4. What are your thoughts regarding precious metal investing? And if there is a place, what is the best way to do it? 22:52

    5. Will the massive increase in passive investing, which has benefited the large cap growth indices, reduce the long term returns of small cap value? Here is the link to the long term returns Paul mentions. 28:50

    6. How would the long term returns change if we overweight the U.S. 4 Fund Portfolio with slightly more small and large cap value? Here is the link to the Equity Asset Classes (1928-2023) 32:01

    7. I’m 72 and my wife is 63. How different should our glide paths be? Here is the link to the Vanguard and Blackrock TDFs. 44:10

    8. Are REITTs more like stocks or bonds? 46:41

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