Sound Investing

Latest Episodes:

Investing for your children's future — what you should know Sep 01, 2020

Show notes

Over the years, Paul and his team have published numerous podcasts and articles about the impact of small investments for minors, especially newborn children and grandchildren. (See: https://paulmerriman.com/turn-3000-into-50-million/). In this podcast Paul discusses a strategy of building an IRA for a minor starting from birth. The strategy assumes investing $365 (more or less) each year over 10 years. He suggests a simple way to build The Ultimate Buy and Hold Equity Strategy over the 10 years. Examining the advantages and disadvantages, he compares the long-term returns at 8, 9, 10, 11 and 12 percent. He then adjusts those returns for inflation. Paul makes the case for using the Roth over the regular IRA or 401(k), as well as keeping the money in your name rather than a custodial account up to the time that the official gift is made.

Also mentioned in this podcast is The Merriman Aggressive Target Date Portfolio (scroll to bottom of page).

This podcast is part of the educational offerings from The Merriman Financial Education Foundation, a registered 501(c)3. If you found value in this podcast, here are four ways to support the podcast and our foundation:

1) Leave a podcast review on your player of choice.

2) Sign up for our biweekly newsletter at PaulMerriman.com

3) Use our M1 Finance affiliate link if you are interested in setting up a brokerage account, using our portfolio suggestions. The Foundation will receive a small fee at no cost to you.

4) Consider making a tax-deductible donation to the Foundation to support our mission to provide financial education to investors. Thank you!

How to be a successful investor Aug 31, 2020

Show notes

Larry Swedroe, a respected voice for sound investing principles, just released a new edition of his 2015 book, "The Incredible Shrinking Alpha: How to be a successful Investor without picking winners". Like all of Larry's books, this one answers a lot of the questions serious students of investing want to know. in this podcast, Paul reads portions from the book that answer some common questions Paul receives, giving insight into Larry’s common sense and well researched information.

1. For actively-managed funds, how long a track record is enough? This reading focuses on four real time stories that may lead you to conclude that no “real time” record is enough. 9:00

2. Do index funds produce better-than-average returns? In this reading of Larry’s book, he compares the 20-year performance of Vanguard and DFA funds to actively-managed funds in the same asset class. 23:00

3. Do actively-managed funds perform better in bear markets? 29:19

4. How long should disciplined and long-term investors wait to deal with the recent underperformance of value and emerging market asset classes? Larry poses 5 characteristics that the investment must continue to have to answer that question. 36:00

5. What if everyone indexed? 44:10

Mark your calendar for Paul's AAII Zoom presentation, Sept. 23, “Which is the best 1, 2, ,3 or 4 fund strategy?” In the presentation Paul will compare the long-term returns of 10 simple strategies, including from The Bogleheads, Rick Ferri, Warren Buffet, TrevH and, of course, our 4-Fund Combo. You don’t have to be an AAII member to attend. Here is the registration link also available at www.aaii.com/webinars.

1) Leave a podcast review on your player of choice.

2) Sign up for our biweekly newsletter at PaulMerriman.com

3) Use our M1 Finance affiliate link if you are interested in setting up a brokerage account, using our portfolio suggestions. The Foundation will receive a small payment at no cost to you.

4) Consider making a tax-deductible donation to the Foundation to support our mission to provide financial education to investors.

Thank you!

Spending your way to wealth Aug 19, 2020

Show notes

Paul Merriman talks with Paul Heys, long-time friend and author of Spending Your Way to Wealth: Setting Your Compass Course to Steer in the Direction of True Wealth. They discuss what “normal" investors do, and the steps to becoming "Normal Plus," how to prevent the “spilling” of money that keep us from having what we want later in life, and the difference between the price and the value of anything. Young people will be shocked by the implications of future inflation, as Paul Heys shares what he sees in both the rear-view mirror and the road ahead.

Spending Your Way to Wealth: Setting Your Compass Course to Steer in the Direction of True Wealthcan be purchased via this Amazon affiliate link by which The Merriman Financial Education Foundation may receive a small fee to help support its work, at no additional cost to you.

Factor Investing Part II: Interview with Rick Ferri and Paul Merriman by White Coat Investor Dr. Jim Dahle Aug 12, 2020

Show notes

In this podcast, a continuation of Part I, James Dahle, M.D., of White Coat Investor hosts Paul Merriman and Rick Ferri, CFA, President of The John C. Bogle Center for Financial Literacy and host of the Boglehead Podcast, for a lively Zoom discussion of factor investing. In this part of the conversation, Paul and Rick share their opinions on tilting your portfolio to small and value and more. The interview starts at around 5:00.

For notes and a full transcription from White Coat Investor, click here.

The Merriman Financial Education Foundation thanks Jim Dahle and his team for making this recording available, along with notes and transcript to Sound Investing listeners.

1) Leave a podcast review on your player of choice.

2) Sign up for our biweekly newsletter at PaulMerriman.com

3) Use our M1 Finance affiliate link if you are interested in setting up a brokerage account, using our portfolio suggestions. The Foundation will receive a small fee at no cost to you.

4) Consider making a tax-deductible donation to the Foundation to support our mission to provide financial education to investors. Thank you!

Factor Investing: Interview with Rick Ferri and Paul Merriman by White Coat Investor Dr. Jim Dahle — Part I Aug 04, 2020

Show notes

James Dahle, M.D., of White Coat Investor brought together Paul Merriman and Rick Ferri, CFA, President of The John C. Bogle Center for Financial Literacy and host of the Boglehead Podcast, for a lively Zoom discussion of factor investing. The conversation starts with defining asset classes, total market investing and factor investing and continues with an examination of ‘is factor investing real?’, US and international stocks vs. value and growth, the “FANG” phenomenon, and tilting a portfolio.

For more notes and a full transcription from White Coat Investor, click here.

The Merriman Financial Education Foundation thanks Jim Dahle and his team for making this recording available, along with notes and transcript to Sound Investing listeners. Part II of this conversation will be available to Sound Investing subscribers in the next few weeks.

1) Leave a podcast review on your player of choice.

2) Sign up for our biweekly newsletter at PaulMerriman.com

3) Use our M1 Finance affiliate link if you are interested in setting up a brokerage account, using our portfolio suggestions. The Foundation will receive a small fee at no cost to you.

4) Consider making a tax-deductible donation to the Foundation to support our mission to provide financial education to investors. Thank you!

Can 12 simple steps really be worth millions? Plus 10 Q&A Jul 28, 2020

Show notes

Paul begins the podcast with a response to a listener who thought the introduction to his new book (shared in Paul's July 9 newsletter), suggesting that each of 12 simple steps could be worth an additional million dollars, "read like a late night infomercial.” Paul not only takes the stand that each of the 12 steps can reasonably be worth an extra million dollars, but offers examples that have produced an extra $5 and $10 million.

Paul explains about his current book naming contest and offers the winner an online meeting with him to help create a lifetime investment plan.

Then he answers the following 10 questions:

DFA U.S. Targeted Value fund (DFFVX) has underperformed other small cap value funds. Should I continue to hold? 33:00
I’m 52. Is the 70% target date fund/30% small cap value too risky? 35:20
I don’t have enough to get started, so what should I do to get started? 41:20
Is there ever a case where actively-managed funds make sense? 43:47
Have recent negative comments about index funds changed your commitment to them? 54:30
We have terminated our relationship with a Vanguard advisor. Should we sell everything and move the proceeds into the funds we intend to buy? 56:39
I’m interested in studying the returns of small cap value. Is there a source of returns that goes back beyond 1994? 58:05
Many respected experts hold a portion of their portfolio in gold. Is there any reason not to add a 5% position to my portfolio? 58:57
When should I take Social Security? 01:03:00
What do you recommend for a 33-year-old investor who wants to be more aggressive than the S&P 500? 01:05:11

What returns can we expect in the future? Jul 22, 2020

Show notes

Why do investors find it difficult to deal with the reality of the random nature of investment returns? Paul gave a lot of thought to this question in preparation for an interview with Jim Dahle of White Coat Investor and Rick Ferri, President of The John C. Bogle Center for Financial Literac y.

On this podcast he shares his conclusions, including the likely possibility that it is the neat and tidy way we teach the history of returns. Paul focuses on the many decades of underperformance of the asset classes that most investors have in their portfolio. He draws on information from the 4 Fund Combo tables as well as the 9 Decades Study. The interview with Jim and Rick will be posted next month.

1) Leave a podcast review on your player of choice.

2) Sign up for our biweekly newsletter at PaulMerriman.com

3) Use our M1 Finance affiliate link if you are interested in setting up a brokerage account, using our portfolio suggestions. The Foundation will receive a small payment at no cost to you.

4) Consider making a tax-deductible donation to the Foundation to support our mission to provide financial education to investors.

Thank you!

Am I saving enough to retire? and 5 more Q&A Jul 15, 2020

Show notes

Paul tackles six topics from commodities to retirement savings, from first-time investing to current retirement investment strategies. A special thank you to Paul’s podcast listeners who responded to his survey question: "Podcasts or videos: which do you prefer?" Your listenership, and sharing this information — to help educate and empower others — is greatly appreciated!

1: Why don’t your recommendations include commodities? 1:35

Paul’s comments focus on an article written by Dennis Tilley, Director of Alternative Investments for Merriman Wealth Management. http://www.merriman.com/advanced-portfolio-management/why-we-still-dont-favor-commodities/

2: How should a 24-year-old first-time investor best put $5000 to work? 16:15

Paul suggests he read The Ultimate Buy and Hold Strategy article, review the list of recommended Best In Class ETFs and listen to this “Best Investment Advice" podcast Paul recorded for university students.

3: What funds do you recommend for the 4 Fund Combo? 28:40

Paul's recommendations include this article, “Market Got You Down? How to Construct a Comeback Portfolio

4: Am I saving enough to retire with $2.5 to $4 million dollars? 29:40

Paul's answer includes reading this free chapter from Financial Fitness Forever.

5: What do you have to say about the horrendous returns of the Four Fund Combo this year? 37:05

Paul recommends reviewing the normal losses in the Fine Tuning Tables.

6: What are your thoughts about Jeremy Siegel’s recommendation for retired investors increasing their exposure to equities? 46:20

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The Past, Present, and Future of Investing Jul 08, 2020

Show notes

In this special presentation to the Bainbridge Community Foundation, June 2020, Paul provides insights into the past, present and future of investing. What are the most important lessons learned about investing in the last 50 years? How can we use them to make more money for our retirement? What 3 myths cost investors up to half their retirement savings? What three people changed investing forever? And much more. If you enjoy this podcast, please share.

To see the slide show accompanying the video, click here.

For the slideshow, "10 Simple Investment Decisions Guaranteed to Change Your Financial Future”, click here.

Join 25,000 savvy investors who subscribe to Paul Merriman’s twice-a-month free newsletter at https://paulmerriman.com/signup/

Keywords: investing for retirement, stock market history, future of investing, bear markets, make more money, famous investors, investor success, financial independence, best investments, paul merriman podcast, sound investing

Help for the do-it-yourself investor Jul 01, 2020

Show notes

On February 22, before the recent bear market and during the very early days of the Coronavirus, I was scheduled to speak at Vestory’s Annual Retiremeet. I went a day early so I could interview two very good friends I'd worked with for more than 10 years, Tom Cock and Don MacDonald. The three of us used to do a weekly radio show together. It was always fun and we had great guests like John Bogle, Knight Kiplinger, Larry Swedroe, Scott Burns, Robert Kiyosaki and Joe Granville, to name a few. In 2009 Tom and Don left the Merriman firm to found Vestory a registered investment advisory firm.

In this podcast we discuss the challenges of helping the do-it-yourself investor. While Don mentions the importance of staying in front of the investors on a regular basis, they felt one of the most difficult decisions for DIY investors is determining their risk tolerance. They offer an interesting risk tolerance test that I took. It has some very good questions. I suggest you give it a try as it is more specific than most.

Questions I ask:

How can you tell if you are working with a fiduciary?
What do tell investors about expectations for long term returns?
Why are stocks a good investment for the long term?
How much should young people be investing?
How can mutual funds offer funds without any expense?
What do you look for in a good investment advisor?

Don MacDonald is also author of Financial Fysics: How Money and Investing Really Work. For those who know Don’s outspoken mistrust of stock brokers, you will be shocked that I tricked him into saying something nice about stockbrokers.

Tom and Don do a weekly radio/internet show, "Talking Real Money", as well as a daily podcast of the same name. I hope you enjoy this podcast and check out their daily podcast. In fact, they have a call-in phone line where you can leave a question anytime. Give it a try: Call 855-935-TALK.

Join more than 25,000 savvy investors who subscribe to our free twice-a-month newsletter at paulmerriman.com

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