Sound Investing

In this installment, the discussion dives into risk-parity portfolios and the volatile nature of gold, with a preference for bonds. Paul explains the origins of the 10-Fund Strategy and its comparison to the 60/40 model. He shares insights on avoiding short-term trends, highlights a double-rung bond ladder for fixed-income diversity, and analyzes growth versus value performance. Strategies for systematic investing in uncertain times are covered, along with the importance of rebalancing and choosing the right bond allocation in retirement.

Join the host as they reflect on gratitude and provide practical investing insights. Discover the importance of transitioning wisely from accumulation to distribution in portfolios. Learn why a simple two-fund U.S. portfolio is favored and how international diversification can affect returns. Insights on investing a lump sum versus dollar-cost averaging are also shared, alongside a discussion on alternative investments. Plus, a preview of future topics ensures you'll stay informed and empowered in your investing journey!

Paul Merriman, a veteran investor and educator with over 60 years of experience, shares valuable insights on successful retirement investing. He emphasizes that costs and emotional decisions, rather than fund selection or market timing, are the real threats to retirement success. Paul advocates for simple, diversified portfolios and stresses the importance of education in fostering calm, long-term investing. He also discusses flexible withdrawal strategies and the need to assess client goals and risk tolerances for optimal planning.

Explore the tax efficiency of ETFs versus mutual funds, revealing how ETFs can save investors significant amounts in taxes. Delve into equal-weighted portfolios and their unique advantages for long-term holders. Learn about the impact of periodic rebalancing, illustrated by 'Shannon’s Demon', which highlights turning volatility into profit. Understand why Morningstar ratings may mislead investors and the importance of diversifying within asset classes. Finally, discover factors influencing small-cap value outperformance and the significance of historical performance comparisons.

Discover the importance of staying disciplined in long-term investing, even when short-term results are surprising. Learn about the differences between reasonable and unreasonable portfolios from industry leaders. Explore performance trends of various ETF strategies and how international markets are making a comeback. Unpack the challenges of implementing effective investment strategies in real life, especially with small-cap value investments. Dive into the benefits of non-traditional index funds and how they can outperform traditional options.

Chris Patterson and Daryl Balls, both leaders at the Merriman Financial Education Foundation, explore the evolution of investing education. They discuss the simplification of tools like Best-in-Class ETFs and the Two Funds for Life strategy, emphasizing making resources more accessible. The conversation highlights the importance of patience in small-cap value investing and the necessity of robust financial literacy for future generations. Personal investment lessons and the dangers of market timing also feature, alongside a commitment to enhancing educational initiatives.

In this insightful discussion, Paul Merriman, a veteran investment educator and founder of the Merriman Financial Education Foundation, shares essential insights for novice investors. He reveals that emotions, not lack of knowledge, often lead to common investing mistakes. Paul emphasizes the importance of starting early and avoiding high fees, showcasing how automation and diversification can protect against costly errors. He also encourages using ETFs for simplicity and maintaining discipline amid market fluctuations, making investing accessible for everyone.

Chris Pedersen, an investment strategist known for simplifying portfolios, joins to explore essential investing concepts. He discusses the benefits of factor-tilted ETFs and the impact of equal-weighted versus cap-weighted funds. Chris reveals how to determine the right allocation for small-cap value based on investor temperament. They also delve into the critical need for tax efficiency in ETFs and the importance of viewing stocks as ownership in companies, emphasizing a long-term perspective over speculation.

Paul Merriman tackles the age-old question of trust in investing, illuminating why diversification is crucial to mitigate risks. He contrasts the performance of equal-weighted versus cap-weighted S&P 500 funds, revealing the benefits of investing in smaller companies. The discussion includes insights on the long-term advantages of a four-fund portfolio and analysis of historical performance across different market periods. Merriman emphasizes patience and consistent saving as key strategies for navigating market uncertainties.

In this insightful discussion, Paul Merriman compares three investment strategies: the high-reward S&P 500, the balanced 60/40 mix, and the diversified four-fund approach. He reveals that the four-fund strategy could lead to significantly higher wealth over time, with only minimal additional risk. Highlighting 55 years of data, he explores how different portfolios perform during both accumulation and retirement phases. Listeners will discover crucial insights about balancing risks, the impact of withdrawals, and the value of diversification in long-term investing.