Investing $900k in retirement

In this week’s Sound Investing episode, Paul Merriman answers a wide-ranging set of listener questions — from choosing ETFs and building portfolios to managing risk in retirement and investing wisely at every age.

One of the biggest takeaways? There is no universally “best” ETF or portfolio. The right answer depends on your goals, risk tolerance, time horizon, and — just as importantly — your ability to stick with a strategy during difficult markets.

Here are some of the highlights from the episode:

What’s the “best ETF”?
Paul explains that for simple exposure (like the S&P 500), the lowest-cost option often wins. But once you move into areas like small-cap value or factor investing, fund construction and index methodology matter far more than expense ratios alone.

Single-fund vs. DIY portfolios
Paul compares all-in-one solutions like AVGV (Avantis All-World Value ETF) with building the same asset classes yourself. While a DIY approach can sometimes produce higher returns, it also requires discipline and comfort with tracking and rebalancing multiple funds.

Portfolios for different stages of life

• Younger investors (30s): Paul favors all-equity portfolios for long time horizons, assuming the investor can tolerate volatility.

• Pre-retirees and retirees: The focus shifts to managing downside risk, withdrawal rates, and behavioral comfort — not maximizing returns at all costs.

Retirement withdrawals and sequence risk
Using historical examples starting in 1970, Paul shows how withdrawal rates (4%, 5%, 6%) and portfolio composition can mean the difference between ending with millions — or running out of money entirely.

Mutual funds vs. ETFs
ETFs have become more tax-efficient, more flexible, and easier to trade — making them ideal for the smaller, diversified portfolios Sound Investing now recommends.

How to self-manage a portfolio
Paul walks through how to:

• Choose equity asset classes

• Use best-in-class ETF recommendations

• Rebalance intelligently

• Invest weekly without overcomplicating the process

Resources mentioned in the episode:

• Sound Investing Boot Camp
  https://paulmerriman.com/bootcamp/

• Ultimate Buy & Hold Portfolio
  https://paulmerriman.com/ultimate-buy-and-hold-portfolio/

• 2025 Sound Investing Portfolios
  https://paulmerriman.com/sound-investing-portfolios/

• Avantis Investors & AVGV
  https://www.avantisinvestors.com/

• Morningstar Fund Comparison Tools
  https://www.morningstar.com/

• Ben Felix (Canadian investing insights)
  https://www.pwlcapital.com/profile/benjamin-felix/

• REIT background and tax considerations
  https://en.wikipedia.org/wiki/Real_estate_investment_trust

Paul closes the episode with a reminder that diversification means always owning some underperformers — and that’s not a flaw, it’s the price of long-term success.

Thanks for listening, and we’ll see you next week.