On May 18, 2024 Chris Pedersen made a presentation to the Houston Chapter of AAII. At the end of the presentation Chris answered over 20 questions. Those questions are on this podcast. Here are the question topics:
1. Portfolio expectations compared to S&P 500?
2. How would adding small cap value (SCV) help a retiree?
3. How important is asset class location using 2 Funds for Life?
4. Would a do it yourself target date portfolio be better than buying a target date fund?
5. How do you expect interest rates to impact equity?
6. How different are the Total Market Fund expected returns from the S&P 500?
7. What are drawbacks by investing in SCV?
8. What steps should we take to manage emotional risk?
9. What is your opinion about combining TIPs with equities?
10. Should you increase your equity holdings as the get older?
11. Please comment of Christine Benz’s Bucket Portfolio?
12.. What SCV funds do you recommend?
13. Are there other target date funds you recommend besides Vanguard?
14. At age 60 what kind of return should I expect over the rest of my life?
15. Do you recommend nudge withdrawals over withdrawals from the whole portfolio?
16. Why would more profitable small cap value funds do better than portfolios of less profitable companies?
17. Do you recommend VT, the Vanguard Worldwide equity fund?
Inside the Investment Mind of Chris Pedersen with host Charles Rotblut. Charles is the editor of the AAII Journal, and a vice president and Chartered Financial Analyst at AAII
Q1: What is the best way to get big positions in cash invested? All at once or dollar cost average over time?
Q2: How should target date fund investors choose the best date for their situation?
Q3:What are the pros and cons of backtesting historical performance?
Q4: Why did you choose the drawings in your book “2 Funds for Life?”