Sound Investing 4 Portfolio Levels for Wealth Building
Aug 13, 2025
Paul Merriman, founder of the Merriman Financial Education Foundation, shares his investment wisdom with Erin Moriarity. He emphasizes the power of starting early with small contributions and diversifying portfolios, particularly for young investors. Merriman also outlines various portfolio complexity levels and explains the importance of broad market diversification to mitigate risks. Moreover, he discusses the impact of fees on returns and highlights modern investing tools like index funds and automatic enrollment, making investing accessible for all.
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Start Early To Let Compounding Work
- Start saving and investing early to harness compound interest; small monthly amounts grow substantially over decades.
- Paul Merriman shows $100/month from age 22 to 67 can approach nine hundred thousand dollars, demonstrating the power of early saving.
Compounding From The Crib
- Erin Moriarity described buying a 'compounding from the crib' onesie and directing family gifts into her son's investment account.
- She uses a Total Stock Market fund and keeps his account simple and equity‑heavy.
Favor Equities When You Have Time
- Young investors should favor equities because bonds historically reduce long-term portfolio returns.
- Paul Merriman recommends 100% equities for long investment horizons and a cash buffer for emergencies.
