The DALBAR tracks the real returns investors get, not what mutual funds report. According to DALBAR’s 21st Annual Quantitative Analysis of Investor Behavior, the S&P 500 made about 7% a year more than the average U.S. equity-fund investor for the 30 years ending December 31, 2014. Paul discusses investor mutual fund returns, the reasons for the poor results, and how investors could easily have outperformed the market over the same period of time.
In this podcast, “Can I trust your numbers?” Paul answers two common questions: “Can I trust the historical returns in your tables?” and “Can I believe these results will be repeated in the future?” Paul discusses the strengths and weaknesses found in the past results, as well as suggests how to deal with estimated returns for the future.
This podcast covers the historical performance of the small cap value asset class. Paul compares the risk and return covering the last 87 years in 1, 15 and 40 year periods. Learn why he believes that the Vanguard Small Cap Fund is headed for lower future returns. At the end of the podcast he asks listeners to pass this along to friends and family, as well as trustees of their 401k plan if it doesn’t include a small cap value fund.
10 Things You Should Know About Small Cap Funds
This podcast looks at the one year, 15 year and 40 year returns of the Small Cap Index as well as the impact of size, value and diversification on returns. Paul compares the Small Cap Index at Vanguard and DFA, and discusses the problems of active management with this asset class.
Paul discusses 10 of the most important things you should know about value investing. Using stories about three of the most famous value investors, he explains why your long-term performance should be amongst the best in the industry. He compares two value funds so that you can understand why one made 3.5% more for 15 years. As Paul did in his podcast on the S&P 500, he also reviews the 1, 15 and 40-year track records and compares them to the S&P 500. It is recommended you listen first to the S&P podcast and read this article.
Paul answers these common questions on investing from his readers and listeners. You can find more articles, recommendations and resources – including three FREE “How To Invest” eBooks – at PaulMerriman.com.
2. What is the difference in the risk of each of your portfolios? Why did your portfolios do so poorly last year? (7:18-17:53)
3. Is it possible for a do-it-yourselfer to use a mechanical market timing system, or does it have to be done through a advisor? (17:54-24:34)
4. Why don’t you make DFA recommendations as you do for Vanguard? (24:35-32:29)
5. Is an annuity a good way to save to set up an account for long term care at age 85? (32:30-37:49)
6. Is there such a thing as an ultimate timing system or portfolio? (37:50-45:14)
7. Why do you recommend Dimensional Fund advisors over Vanguard and others? (45:15-1:03:40)
2. Should I move my money from the U.S. Government TSP to your Vanguard funds when I retire? (9:11-15:12)
3. Are all the Vanguard ETFs commission free? (15:13-17:39)
4. How often should I rebalance when I am making monthly contributions? (17:40-22:00)
5. Can’t you have plenty of international exposure with a portfolio of large multi-national U.S, companies, like the S&P 500? (22:02-26:25)
6, I have most of my money in Vanguard Primecap fund. What are your recommendations for how much you should have in one fund? (26:25-35:11)
Paul presents the many financial education resources at paulmerriman.com to help investors improve their financial future. Learn about free access to a library of Marketwatch.com articles, podcasts, free books, and free recommendations for mutua