How Do I Make the Move Back Into The Market?

SoundInvestingAd

The most common question I receive is about moving cash positions into the market. I have addressed this topic several times, but here’s one more try.  There is no “answer” other than to find a comfortable way to get back to the asset allocation that’s appropriate for the long term. I hope these comments will help cautious investors get it right and keep it right.

The Outrage of the Year!

SoundInvestingAd

The Outrage of the Year!   For most of the last 30 plus years I have been a pain in the backside for brokers, as I have tried my best to warn investors about the dangers of doing business with an financial advisor who is compensated on a commission basis. In my book, “Get Smart or Get Screwed:  How To Select The Best and Get The Most From Your Financial Advisor,” I list 80 reasons why I don’t trust brokers.  I actually pared it down from over 100.   I thought I had seen all the tricks and traps of commission-motivated sales people. In this podcast I discuss a way that two people got mislead. One was relatively happy with the advice while the other now feels grossly cheated. Find out how an otherwise helpful CPA led his clients astray, while thinking he was doing them a favor.

Is it time to make changes in our portfolios?

SoundInvestingAd

With the recent rise in the S&P 500 it’s happening again.  Investors are wanting to know if we should be reducing our positions in international equity asset classes and investing more in the S&P and other U.S. equity asset classes. In this podcast I discuss the challenges of owning a more diversified portfolio.  Have there be changes in international markets that mean we should change our commitment to them?  Should we  continue to rebalance, which means taking money from some big winners and putting more in the dogs.  It’s never easy.  Paul poses 3 questions we have to face in order to consider a major change in our portfolio.

10 Reasons I Don’t Like Vanguard’s Total Stock Market Index Fund

SoundInvestingAd

Paul discuss the key disadvantages of Vanguard’s largest fund and why Vanguard recommends investors put so much confidence and money into this, and its sister fund, that represent the international markets.  Find out why Paul believes using this fund can set your retirement back one to five years and cost your heirs millions of dollars.

Decade Returns from 1930 through 2009 for the S&P 500, Total Stock Market, Large Cap Value, Small Cap Blend and Small Cap Value Indexes

8 lessons from 80 years of history

SoundInvestingAd

 

Experts conclude that over 90% of long term investment returns come from your choice of asset classes.  In this podcast Paul discusses 8 separate decades of asset class returns so that you realize that the next 10 years may look a lot different from the expected long term return.  This information will hopefully help investors understand the unpredictability of short term returns and allow them stay the course after a period of disappointing returns.

Decade Returns from 1930 through 2009 for the S&P 500, Total Stock Market, Large Cap Value, Small Cap Blend and Small Cap Value Indexes

Three Huge Investment Decisions

SoundInvestingAd

Three Huge Investment Decisions
Paul discusses the three most important investment decisions people make: 1. Using the past as the best indicator of the future or basing decisions on other sources of important information? 2. Building a portfolio based on a few carefully selected securities or diversifying massively? 3. Do it yourself or get professional help?

Should My Advisor Be Local?

SoundInvestingAd

In this podcast, Paul responds to 3 questions recently received from his listener/readers: 1. Is it important that a financial advisor to be local?  2. What are the step-by-step instructions to implement strategies, from Paul’s popular MarketWatch article, to “Make Your Kid Rich For $1 A Day,”?  3. Why does the graph in “The Ultimate Buy and Hold Strategy” show only a 60/40 combination of stocks and bonds, and what should your asset allocation be?

 

My favorite Vanguard balanced fund

SoundInvestingAd

Lots of investors are looking for a one-fund solution, especially those near or in retirement. That would require a balanced fund with the right combination of equity and fixed income. In this podcast, Paul compares 5 Vanguard balanced funds. It’s a tough decision, but Paul shares the balanced fund, or funds, he would use and why.

Hedgefunds – The Good, The Bad and The Ugly

SoundInvestingAd

This podcast is in response to the latest announcement by CALPRS, the California Public Employees’ Retirement System, that they have decided to liquidate their $4 billion in hedge fund investments. Paul discusses the sad truth about the expense, returns and slippery nature of the hedge fund industry. Here is just one of the many aspects he reports: At the end of 10 years only 5% of the hedge funds will still be in business. Does that sound like an investment you’d like to make? Of course, as long as it’s part of the 5%. Paul also discusses a hedge fund he helped form in 1995. The good news is it’s still in business.

What You Should Know About 401(k) Plans

SoundInvestingAd

Paul is interviewed by Ken Roberts on his radio program Bulls and Bears  In this edited (originally one hour) program, recorded Sept. 27, 2014, Paul discusses  401(k) investing, employer matches, how to choose funds, costs of administration, long-term planning, and distributions in retirement. Like Paul, Ken is a regular contributor to MarketWatch’s “RetireMentor” financial advice columns. You can access his articles here. To see Paul’s recommendations for the top 100+ largest U.S. company 401(k) plans, visit his website.

Should you own alternative investments?

SoundInvestingAd

This podcast in is response to a question posed by a retired investor whose advisor recommends he increase his investments in alternative investments. Paul pulls out all the plugs to tell about the good, the bad and the ugly regarding this questionable asset class. In the process, he tells investors what’s likely to be a lot better, with less risk and better liquidity. He references these articles interested investors should read: “The Best Mutual Funds” from U.S. News & World Report and this article by Jason Zweig, one of the most respected financial journalists.

Whose performance do you trust?

SoundInvestingAd

One of the biggest risks investors take is basing their decisions on bad investment advice. Sometimes the bad advice comes from commission-motivated salespeople. Sometimes the bad advice comes from ignorant, inexperienced well-meaning advisors who are just learning the business. Often those newcomers have gotten their information from people who have questionable beliefs. And sometimes the advice may simply come from smart people who have gotten their hands on the wrong data or made a miscalculation. This podcast is about information that comes from a source most of us would probably trust, but it appears there is a thumb on the scale that could lead to some bad decisions.

 

Is the small cap premium gone?

SoundInvestingAd

For the last 15 years, a lot of market experts have said that the small cap and value premiums are a thing of the past. Their position is normally based on the idea that once a premium has become common knowledge it goes away. Of course that would suggest that once the premium of stocks over bonds is understood by most people, it will cease to exist. In this podcast Paul looks at the 15 years before 1990, 1990 to 1999 and 2000 to 2013, which should convince investors that those premiums are still highly likely to exist in the future.

Paul answers your questions

In this podcast Paul answer 5 questions:
1. Why should I pay fees to a fund manager if I can build the fund myself?
2. Do REITs make sense in a taxable account?
3. Should I invest in a REIT ETF or mutual fund?
4. How should I dollar cost average $100,000 into the market?
5. What educational material should someone read who has invested in individual stocks all their life?

How to fix a broken portfolio

In this podcast Paul discusses four major challenges to fixing a broken portfolio. Almost every question he receives is about how to make something that isn’t working, start working. Broken portfolios can be repaired with a handful of simple steps, but they’re not necessarily easy steps. Change, even in the face of obvious advantages is difficult for most people. In sharing how he would fix the problems, Paul hopes that listeners can break the logjam and live in peace with their investments.

How To Get The Most From Your 401(k) Plan

The 401(k) is the backbone of most retirements, yet millions of people are investing in 401(k) plans with mediocre offerings. To help make the most of your retirement investment, Paul Merriman offers recommendations for more than 100 Top U.S. company plans and the U.S. Government TSP at his website  In this podcast he explains why and how to use them. 

Differences between Vanguard and DFA Emerging Market Funds

Focusing on the differences between Vanguard and Dimensional Fund Advisors (DFA) funds, this podcast compares the Vanguard Emerging Markets Fund with four different emerging market funds at DFA. There is no secret to the advantages at DFA but it does take some analysis to understand the way their portfolios are constructed.

Ken Roberts’ Bulls and Bears – A Radio Interview with Paul Merriman

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.