This video and podcast introduces the "Sound Investing Portfolio Fixed Allocation Configurator.” This new tool helps investors figure out how to implement the portfolios we analyze using different fund families. Chris Pedersen, Director of Research joins Paul Merriman to discuss Chris’ latest investor education project.
The process is simple, involving four choices: portfolio strategy (e.g., Ultimate Buy and Hold, Worldwide 4-Fund, All-Value, etc.), account tax status, fixed income percentage, and fund family (e.g., Best-in-Class ETFs, Vanguard Mutual Funds, etc.). Once selected, the configurator shows the required percentage investments in particular funds and several characteristics of the resulting portfolio, such as expense ratio and geographic distribution.
Chris suggests this “configurator” could replace the older Custom ETF Calculator (not to be confused with our Lifetime Investment Calculator) and several of our pre-calculated mutual fund and ETF portfolios. He also asks for feedback at info@paulmerriman.com.
Together, they answer several listener questions:
• Does active management ever make sense? Or are ALL people better off with an index fund-based strategy?
• Is the 2 Fund Portfolio (half each S&P 500 and small cap value) really as good as the 10 fund Ultimate Buy and Hold Portfolio?
• What advice do you have for a 73-year-old investor who is about to fire their advisor and become a do-it-yourself investor?
• Do you suggest reinvesting dividends from your ETFs or do you save them to reinvest in other ETFs?
• I am investing money for my mother in several ETFs. What time of day do you suggest making the investment?
Here are the links mentioned in the podcast.
Portfolio Configurator Preview: https://bit.ly/3QL77tQ
Long-Term Bond Returns Study:
https://globalfinancialdata.com/four-centuries-of-stocks-and-bonds-in-retrospect
The Merriman Financial Education Lifetime Investment Calculator: https://paulmerriman.com/lifetime-investment-calculator/
