Disclaimer: Sound Investing, soundinvesting.com and paulmerriman.com are produced and exclusively owned by Paul Merriman, who is solely responsible for their content. Soundinvesting.com and paulmerriman.com are not owned by or affiliated with Merriman, LLC, which has no involvement in producing or maintaining said websites, and which assumes no responsibility or liability for any of the articles, podcasts or other materials appearing thereon; nor has Merriman, LLC verified the accuracy of any such content.
Paul discusses his most-popular MarketWatch article by the same name, which outlines how wise parents and grandparents can make a small annual contribution to a child’s saving and ensure their future financial security.
Ken Roberts’ Bulls and Bears – A Radio Interview with Paul Merriman
Paul discusses a wide range of investment topics, why and how investors fail and succeed and offers his sound investing advice. We recommend you skip through the radio show ads and enjoy Paul’s interview.
Paul Farrell is one of the most popular writers on Marketwatch.com. Many of his articles are focused on “gloom and doom,” some list the reasons to “buy now,” and an even smaller number address money and lifestyle. The money and lifestyle articles are Paul Merriman’s favorites, although he suspects they are the least read. A recent article, “8 Secrets to help you retire today and enjoy it!” gives a little of Farrell’s path to his present balance between work and play.
In this podcast Paul Merriman takes on Farrell’s “Lesson No. 1. No, you don’t need a million bucks.” While Farrell makes a reasonable case that you don’t need a million dollars to retire, Merriman argues that’s a dangerous long-term goal. His advice to young people is that they take steps to retire with at least $2 million. If they don’t make that goal, they can adjust; but we must be careful what we wish for and aim for.
Paul Merriman / Sound Investing / asset allocation, Bernie Madoff, best financial advice, how to choose an investment advisor, how to protect money, investing for retirement, Paul Merriman podcast, Vanguard ETFs, Vanguard small cap fund, where to invest millions /
Q&A Regarding Paul Merriman’s Recommended Portfolios
This 30-minute podcast gives investors a better understanding of how and why I put together my recommended portfolios.
Question #1: Why not substitute some bond funds that pay higher rates of return, like peer-to-peer lending securities that pay over 10%?
Question #2: Is it possible to make rebalancing easier by using one small cap Vanguard fund, rather than two?
Question #3: How risky is it to let an investment advisor manage your account? How do we know the manager isn’t another Bernie Madoff?
Question #5: If an investor has millions to invest, are there things he/she should do differently from what you recommend?
Question #6: Why have you recommended Vanguard ETFs that are similar but more expensive than others they offer?
Question #1: I just received $300,000 from the sale of a company and would like to invest in a handful of funds and stocks I like. What do you think of my asset allocation?
Question #2: Should I put all my bonds in my tax deferred investments?
Question #3: I have 401(k)s, IRAs, taxable accounts, and my wife has several accounts of her own. Where can we get help to put together your asset allocation using all these accounts? Is it possible to get good advice on an hourly basis?Question #4: My friend and I are in our 20s. I told him you recommend young investors should have all their long-term investments in equity funds. He is keeping 10% in bonds in case there is a big sell off, help protect him from loss and give him money to invest when the market is down. What do you think?Question #5: My grandmother has a 10 year CD paying 3.1%. She wants something that pays more but is safe. What would you recommend?
In this podcast Paul responds to questions by readers and listeners.
Question #1: In your “Ultimate Buy and Hold Strategy,” you use 40% bonds. What is the impact if you invested less in bonds? How much does a change in bonds change the expected return?
Questions #2: My 401(k) only has three index funds – Fidelity Spartan Total Market Index, Vanguard Small Cap Index and Fidelity Spartan International Index. How would you distribute the investments among the three funds?
Question #3: My 401(k) is run by Schwab, but the investment choices aren’t very good. They offer self direction wherein I can make my own investment choices. Would your Schwab ETF recommendations be a good way to diversify my 401(k)?
The first half of 2014 was pretty good. This podcast reviews the results and lessons it has taught us about long-term investing. It also compares some funds at Vanguard, DFA, and at Warren Buffet’s Berkshire Hathaway for the 6 months and 15 years ending June 30, 2014.
This podcast is in response to a question from a listener. He says, “Most of my non-retirement equity is in the U.S. Vanguard Total Market Index. What percentage of this fund is in the asset classes you recommend?” I used this question to show investors how to use the Morningstar free data base to figure this out on your own.
I am as big a fan of Vanguard. I have recommended their funds for over 15 years and said, without hesitancy, that Vanguard is the best place for do-it-yourself investors to invest. They are a terrific source of index funds and ETFs and they do a terrific job of educating investors. That said, I also think they do a very mediocre job of asset allocation. In this podcast, I discuss the online survey and corresponding ETF recommendations. I cannot see into the future but I believe their advice will potentially cost investors millions of dollars over a lifetime.