This podcast was made to accompany the Marketwatch article on combining target date funds with small cap value.
A major problem with target date funds (TDFs) is they don’t give enough exposure to the small cap or value asset classes. By simply adding a second position in a small cap value fund or ETF, most of the limitations of TDFs can be overcome. Paul compares the risk and expected additional return of the two-fund portfolio, as well as making sure you are aware of the nature of small cap value as an asset class. Paul suggests you have a copy of The Four Fund Solution Table to reference with this podcast.