Sound Investing 11 Q&A-Bonds, Rebalancing, All Value, Vanguard vs. Avantis & DFA
Many of you have been submitting thoughtful questions through our AI chat, particularly on fund selection, asset allocation, and broader investment strategy. It’s encouraging to see this level of engagement with the core principles that shape long-term financial success.
While the AI generally provides sound and efficient guidance, there are times when its responses lack the nuance or clarity that experience can bring. To provide deeper context and help you make more informed decisions, I’ve selected several recent questions to address—drawing from the AI’s suggestions where appropriate and adding insights based on decades of research and practice.
One brief correction from a recent update: I previously mentioned a resource for ETF investors in Canada, Europe, and the U.S., but misspoke on the name. The correct website is ETFAtlas.com. Jack, the developer behind it, is creating a valuable tool for globally minded investors. Your candid feedback—what’s working well and what could be improved—will be essential as he continues building out the platform. Look for additional features to roll out in the months ahead.
What Sound Investing Portfolio does Paul use and why? 3:02
What funds should I use to set up a Roth IRA account for a 21-year-old? 13:06
Do you think Vanguard funds will get lower returns than Avantis and DFA ETFs? 21:46
Is there a table that represents using the S&P 500 and Aggregate U.S. Bond Index rather than your 3-fund bond portfolio? 26:51
I am 45, hoping to retire by 55-60. Is 25% in bonds too little? 31:04
Does it make sense to have non-taxable bonds in an IRA? 34:34
Your quilt chart (1928-2024) shows a 2-fund portfolio with 50% each small cap value and large cap value. Isn’t that too much in small cap value? 35:39
How often should I rebalance? 38:09
In your podcasts you talk a lot more about the 4-fund portfolios (WW and U.S.) than you do the all-value portfolios. The all-values have higher returns but you recommend them less often. Why? 40:19
Are there conditions where the all-value portfolios will underperform the more balanced portfolios? 40:19. (Answer is integrated with previous question)
I’m 57. How much should I have in bonds? 49:30