Sound Investing AAII Q&A Series (Part 3 of 3)
15 snips
Dec 10, 2025 In the final Q&A, insightful discussions include strategies using the equal-weighted S&P 500 and the pros and cons of switching mutual funds to ETFs. Listeners learn about dollar-cost averaging versus market timing, and how to build a retirement portfolio for different life stages. The conversation also touches on investing inheritances wisely, the balance between ultimate buy-and-hold and simplified strategies, and the importance of sticking to long-term plans over political influences. Advisors and resources for personalized investing are recommended.
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Equal-Weight Versus Cap-Weight Tradeoffs
- Equal-weighted S&P 500 gives smaller/value companies bigger influence than cap-weighted indexes.
- Paul Merriman notes equal-weighted often outperformed cap-weighted historically but cap-weighted led recently due to a handful of mega-cap tech names.
Find Hourly Or Task-Based Advisors
- Seek advisors who match your specific need rather than paying a blanket AUM fee.
- Merriman plans to help listeners find hourly or task-based advisors and suggests hourly help can be far cheaper than 1% AUM.
Weigh Tax Hit Before Moving To ETFs
- Consult a tax advisor before converting taxable mutual funds to equivalent ETFs.
- Merriman notes future ETF tax efficiency can justify conversion if you expect to hold the fund for decades, but compute the current tax hit first.
