Sound Investing

Discover the art of lifelong investing as Paul emphasizes the importance of simplicity over complexity. He shares insights on the critical decisions every investor faces, such as investing in individual stocks versus bonds or diversifying across various markets. Real-life experiences reveal the risks of concentrating investments, while a simple portfolio can potentially add consistent returns. Join the conversation about balancing fun and discipline in investing while avoiding the pitfalls of speculation, especially with trends like crypto and AI.

Paul Merriman, a legendary investing educator and founder of the Merriman Financial Education Foundation, drops invaluable wisdom on wealth-building through long-term investing. He stresses the importance of starting early and utilizing low-cost index funds. Merriman discusses how compounding works quietly over time and emphasizes the benefits of small-cap value investing for long-term returns. He also shares practical advice for young investors, highlights the significance of saving consistently, and cautions against high investment fees.

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.

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.