Sound Investing Financial Gurus Collide: JL Collins and Paul Merriman Debate Wealth Strategies
Apr 24, 2024
Two financial gurus, JL Collins and Paul Merriman, discuss wealth strategies, index funds, and the power of small-cap companies. They delve into diversification, disciplined strategies, and the psychology of successful investing. Whether you're a beginner or seasoned investor, this episode offers valuable tips for a robust financial future.
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One Simple Fund On Autopilot
- Buy a single broad-stock index (Total Stock Market or S&P 500) and automate contributions.
- Hold it long-term and add bonds when you stop working to smooth withdrawals.
Missed Early Index-Fund Adoption
- Paul started investing in 1975 and missed early index-fund adoption despite Vanguard's launch that year.
- He wishes he'd embraced index funds sooner after seeing the research and results.
Why Total Market Mirrors S&P 500
- Total market funds cap-weight small caps so small-cap value's outperformance can be neutralized by small-cap growth.
- That balancing can make S&P 500 and total market returns very similar long-term.