Paul discusses the Schwab, Fidelity and TD Ameritrade commission-free ETF offerings. He helps investors find the least expensive ETFs, as well as the firms that offer the best selection of asset classes. To help those following the “Turn $3,000 to $50 million” strategy, Paul reviews the small-cap value offerings of all three firms, plus Vanguard. He suggests reading the Vanguard article, as well as the latest on the other three.
On this short special podcast Paul addresses the difficult market decline that has many investors concerned the market is heading for a bigger sell off. If you are having serious concerns about what should be done next, he suggests you reread “22 things we should know about bear markets.” He also pleads with young investors to celebrate the opportunity to buy equities at a discount, and for older investors, to control the downside with the right amount of fixed income funds. http://paulmerriman.com/22-
Paul answers 20 questions. His goal is to answer each question in less than a minute. Here is a list of questions. Let’s see if he can keep his answers short!
1. Which international small cap value ETF do you recommend? DLS or FNDC?
2. Do you prefer Schwab or Vanguard ETFs?
3. Why are your portfolio recommendations different from your Ultimate Equity Portfolio?
4. Why do you recommend Treasury bond funds rather than corporate bond funds?
5. What do you think of Wealthfront approach to managing money?
6. Should I still be in all equities at 55?
7. Which investment books do you recommend?
8. When would an investor select automatic reinvestment, rather than taking distributions, from their mutual funds?
9. Which international small cap value ETF is comparable with DFA’s international small cap value fund?
10. How do you benefit from your foundation?
11. Should we payoff a mortgage or invest in the market?
12. Why have pension funds made less money than your simple asset allocation approach?
13. Should I leave my money in my 401k or move to an advisor?
14 .How do you recommend taking money out of your retirement portfolio?
15. Have international large cap blend funds lost their advantage?
16. Should you invest in a company that never pays a dividend?
17 What should I use now that Fidelity no longer offers IYR REIT commission free.
18. You recommend saving 10% for retirement. Is that before or after taxes?
19. Is my advisor taking advantage of me?
20. How should a 37-year-old invest an $85,000 inheritance?
If you have decided to set up a legacy account for a child or grandchild, as described in Paul’s article, How To Turn $3000 into $50 million there will come a time to tell the lucky recipient what was done to help him or her have a more financially secure retirement. Paul feels strongly a letter from the family members who made the gift will be important to help the child or grandchild stay the course. A sample letter is included in a new article (dated Jan. 13, 2016). In this podcast Paul explores other ways that parents and grandparents can be instrumental in keeping the child or grandchild on a path to success. He also asks for your help in finding more ways to get investors to stay the course.
The Gift That Really Keeps On Giving
Warren Buffet says, “To be a success you only have to do a few things right, as long as you don’t do too many things wrong.” The best way I know for investors to be sure they are doing the right things, and protecting against the wrong things, is to get help from a professional. Paul discusses two simple and low cost ways to get professional help. His hope is that the payoff is more money, less risk and greater peace of mind. During the podcast he mentions two sources of advice: garrettplanningnetwork.com and dfaus.com.
In a recent radio conversation with Ken Roberts of Bulls and Bears, Paul discusses compound interest, the best asset classes, small cap value, target date funds, portfolio diversification, calculating retirement distributions, young investors, house swapping and more. You can find articles on all these subjects at http://PaulMerriman.com
In this podcast Paul discusses the historical returns of the S&P 500, large cap value, small cap blend and small cap value. He knows many investors live with the belief they will find an actively managed that will outperform his favorite of the four, small cap value. Three of the most famous investors of all time, Peter Lynch, Bill Miller and Warren Buffet had records that few will ever match. What are the odds these great investors will do it again? But you may find small cap value did almost as well as the three did during the peak of their careers.
In 2011 John Bogle predicted a 7% 10 year growth rate (including dividends) for the S&P 500. In June, 2015 he reduced his prediction to 5%. Now he is predicting a 4% growth rate for the next decade and that doesn’t include mutual fund expenses, taxes or inflation. That might not be unsettling to investors if he didn’t have all the historical info to make his point. In this podcast Paul talks about the steps one might take to improve their return, including one that suggests a 20% return should be easy. In fact, the promotional literature for this service shows how an investor could have turned $5000 into $154,250. Paul suggests there is a safer way to add returns without taking much more risk—and maybe less risk than the S&P by itself.
Paul Merriman and Andrew from The Disciplined Investor discuss some of the basics of investing, psychology and a better understanding of corrections and bear markets.