Sound Investing

Watch video hereThis updated discussion of the Ultimate Buy and Hold Portfolio highlights the advantages of equity asset allocation and worldwide diversification. The presentation was presented to members of the Washington State Society of CPAs. At the end of the presentation Paul adds his list of 15 million dollar decisions that all investors will make in their lifetime.

Join Rick Ferri, a leading expert in low-cost investing and host of the Bogleheads on Investing, along with Paul Merriman, founder of the Financial Education Foundation. They dive into essential topics like the pros and cons of small-cap value versus total market funds. Discover the significance of asset allocation, the challenges of target date funds, and the value of including international equities in a portfolio. They also share insights on maintaining a disciplined investment strategy amidst market volatility and the importance of informed decision-making for young investors.

In this riveting debate, economist Karsten Jeske, known for his straightforward investment strategies, faces off against veteran Paul Merriman. They hash out the merits of small cap value investing versus simpler index approaches like 'VTSAX and chill.' Merriman touts small cap value’s historical outperformance, while Jeske warns that its advantage may fade in today’s efficient market. The stakes are high—potentially millions for retirement as they unravel topics like diversification, investment complexity, and the importance of understanding risk in financial planning.

Discover the power of flexible distribution strategies for a successful retirement! Learn why defensive financial decisions are critical for long-term success. The discussion highlights the difference between fixed and flexible distributions, complete with comparison tables demonstrating potential returns and risks. Diversification through index funds is emphasized, alongside the pros and cons of various investment strategies like buy-and-hold versus market timing. Adaptable approaches can help you navigate market fluctuations and inflation more effectively.

The move from the accumulation to distribution period of an investors lifetime includes some very important decisions.What asset allocation between equities and fixed income?What combination of equity asset classes in the equity portion, as well as fixed income asset classes?What amount of distribution will be made annually?Will the payments be monthly, quarterly or annually?Will payments be adjusted for inflation and how often?Will the distributions be based on a fixed distribution with regular adjustments for inflation (the topic in this presentation) or on a flexible basis (the topic of the next segment)?In this podcast Paul uses 15 slides to address the questions above. It is recommended the viewer print out the ⁠PP presentation  to make it easier to follow the numbers.Many may find it is easier to follow the information on Paul’s video⁠ on the same topic.If you have questions about the presentation please leave comment or question in the comment section of the video  or email ⁠paul@paulmerriman.com⁠.  For those sending an email please let us know the topic of the Boot Camp presentation.

Watch video hereYoung and first time investors have to address a number of monumental decisions.  How much money to save for the futureHow much they should invest in equities and bonds How much of the equities should be in large, small, value, growth, U.S. and international asset classesHow much to increase the investment each yearThis podcast/video helps the investor address those decisions.  For those listening to the podcast here is a link to the pdf of all of the tables referenced in the presentation.  He only focuses on a handful of tables but here is a link for those who want to review the entire set of tables.Paul discusses the accumulation process from the viewpoint of an investor as well as a small business owner.  If you have questions please send them to paul@paulmerriman.com or leave them in the comment section below.  

This session dives into the nuances of asset allocation, examining the crucial balance between stocks and bonds. Discover how risk and return vary with different investment percentages. A useful table showcases combinations of S&P 500 and small-cap value. Personalization takes center stage as the discussion emphasizes adapting investment strategies to match individual goals. Plus, get a sneak peek at an upcoming boot camp that will tackle fixed contributions and leverage community insights and AI tools for enhanced investment understanding.

Watch Video hereChris Pedersen updates his recommendations and describes his selection process in an interactive presentation with Paul and Daryl along for the ride.This "Best In Class ETFs Recommendations" presentation is the 9th in the Boot Camp Series.  (We have not completed some of the earlier presentations due to the high interest in Chris' Best In Class Recommendations).The focus of each the Boot Camp presentation is to help investors make the best of what we consider to be  the biggest long term decisions they will make. Of course we cannot know the ETFs that will produce the highest returns but we can measure the likely impact of the factors that Chris discusses during his presentation.On behalf of all of the people who find this work helpful, as well as Daryl Bahls and myself, I want to thank Chris Pedersen for all he has done to help us understand the potential long term advantage of his analysis.  It is our hope that his work will give investors  the confidence and commitment to “stay the course" in the normal ups and downs of the market.00:00:00 - Intro00:07:15 - Changes00:12:31 - Factor Basics00:18:00 - Selection Criteria00:20:21 -- Quantifying Differences00:24:32 -- Comparing in an Asset Class00:31:10 -- More than just numbers00:32:12 -- BIC ETFs on Website00:33:05 -- US Large Cap Blend00:34:33 -- US Large Cap Value00:37:40 -- US Small Cap Blend00:42:30 -- Int'l Large Cap Value00:43:30 -- Int'l Small Cap Blend00:44:15 -- Em. Mkts Small Cap Blend00:44:50 -- Portfolio Configurator00:46:25 -- Roboadvisor ETFs00:51:06 -- Versus Russell 2,000?00:54:00 -- Avantis & DFA Advantage01:03:36 -- Analysis Timeframes01:04:44 -- Closing RemarksLinks:Best-in-Class ETF Recommendations PagePortfolio ConfiguratorSound Investing Portfolios Bootcamp Page

The 2024 numbers are finally in and we have produced the #1 investment decision in the  Bootcamp series. There is no question that the biggest lifetime decision an investor makes is the choice between the safety of bonds and the potential long term growth of stocks.  Here is a⁠ link⁠ to the pdf of the set of slides Paul uses in the presentation.  The presentation includes the ⁠updated 1, 15 and 40 year returns tables ⁠ along with the  ⁠quilt charts for the 1928 to 2024 period⁠.Our thanks to  Daryl Bahls who has put together most of the tables in the Bootcamp series.If you have questions please send them to ⁠paul@paulmerriman.com⁠.  Please put  Bootcamp #1 in the subject line. Watch video here.

The purpose of this podcast/video is to help investors understand the likely risk and return parameters of small cap value, S&P 500, 2 Fund Portfolio (50% each SCV/S&P) and 4 Fund Portfolio (25% each SCV/S&P/SCB/LCV).  In each case the best, worst, and average 1, 2, 3,  5, 10. 15, 20, 25, 30, 35, 40 year returns are listed.The following tables are discussed:S&P 500 Historical Risk and Return US SCV Index Portfolio Historical Risk and Return US 2 Fund Index Portfolio Historical Risk and Return US 4 Fund Index Portfolio Historical Risk and Return Also the risk and return page from the Sound Portfolios  is referenced.