10 Things You Should Know About Large Cap Value

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 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.

The myths and realities of the S&P 500

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This podcast is the first in a series dedicated to the asset classes recommended in the combination of equity asset classes that comprise the Ultimate Buy and Hold Strategy (put link to article).  Through the articles and podcasts, investors will get a better idea of the good, bad and ugly of each asset class.  The S&P 500 is considered the benchmark for the “market.” For those trying to beat the market it is considered the return to beat. Join Paul to learn about the history and histrionics of the S&P 500.

Mario Gabelli: Genius, Guru or Goat?

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Mario Gabelli is called a legend in the investment industry. He has a solid educational background and experts respect his recommendations. He has made a fortune… but what about the investors in his funds? Did they achieve the same stardom as Gabelli? This podcasts compares those old fashion low cost indexes with the legend. Guess who wins?

How Is Your Investment Portfolio Performing?

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What are the most important things investors should know about the performance of their investments? This is the first in a series of podcasts about performance to give investors an in-depth knowledge of the asset classes Paul encourages investors to hold in their portfolios. This podcast covers many of the misleading aspects of performance including one Paul calls “the big fat lie.”

 

Seven Investment FAQs

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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.

1.  Why don’t you recommend a technology fund? (0:46-7:17)
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)
 

Six Questions and Answers

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Paul’s answers six recently received questions from his readers and listeners. Please note that start times are included so you can go right to the question of interest to you.
1.  Can you make recommendations for the commission free ETFs at E-trade? (1:17-9:10)
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)
 

Review of 2014 and Long Term Returns

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In this podcast, Paul reviews 2014, and all the way back to 2000, to consider the performance of the major asset classes used in the Vanguard portfolios he recommends. He shares a terrible truth about the S&P 500 that may surprise most investors, and he describes how investors can make an already terrible return much much worse.
 

The Perfect Retirement Portfolio

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Paul gives you the steps to put together the perfect retirement portfolio. What may be the perfect retirement portfolio for you may be very different from what Paul thinks is the best for him and his family. The key is matching your personal need or desire for return with a portfolio that gives peace of mind, even during the most turbulent markets. The risk of not finding the perfect retirement portfolio is in experiencing a level of short term discomfort that throws you off course. Once off course, it can take years to find your way back.
 

John Bogle’s Big Bet

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John Bogle is one of the most respected experts in the investment community, considered “The father of index funds.”  In this podcast Paul responds to many of John Bogle’s misguided recommendations in an interview at ETF.comDuring the interview John makes a “big bet” about the future return of small cap, value and international asset classes. Paul thinks he is dead wrong and would take his bet. In fact the odds are so much in Paul’s favor that he gives him a handicap. 

How To Get the Most Out of PaulMerriman.com

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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 mutual funds, ETF’s and 401(k) plans to improve returns and reduce risk. 

How Do I Make the Move Back Into The Market?

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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!

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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?

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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

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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

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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

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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?

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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

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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

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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.