July 25, 2013

paulPros and Cons of Index funds

Dear Friends,

I have embarked on a series of podcasts, and related articles at MarketWatch, which I believe are the most important questions investors should raise and answer for themselves.

This is serious business, as nothing is as important as the primary issues I address in this series. These are the four major decisions we face in our lifetime regarding investment, and have been a major focus of my work for over 15 years.

The first in this series is “The Ultimate Buy and Hold Strategy,” in which I identified the asset classes every equity investor should have in his/her portfolio. The question now is: how do you invest in those asset classes most efficiently?

This week’s podcast and article addresses those types of mutual funds you should know about – specifically, “The Pros and Cons of Index Funds.”

Next week’s Fine Tuning Your Asset Allocation will help you zero in on the balance that will meet your need or desire for return, within your personal risk tolerance. When I was an advisor, the most powerful tool I had in helping investors find their “sweet spot” was titled “Fine Tuning Your Asset Allocation.”

The final article/podcast of the series will be all about distributions. I think one of the most interesting decisions we make is how much we take out of our investments in retirement, and I’ll discuss this more in the next newsletter. Everything flows from these 4 major decisions.

These articles and podcasts are longer than normal, as the topics are so important. I know they will lead to lots of questions. My intent is to answer as many of those questions as possible.

The Merriman Financial Education Foundation is dedicated to “providing comprehensive financial education to investors, with information and tools to make informed decisions in their own best interest and successfully implement their retirement savings program.” I would appreciate if you’d help us by passing along these four important articles and podcasts to your family and friends.

To Your Success,




The ultimate buy-and hold strategy

To qualify for that descriptive term, I believe an investment strategy must have a long track record of outperforming the Standard & Poor’s 500 Index. It must do so with no more risk than the index and it must be based on solid academic research.  More

John Bogle’s million-dollar advice
Among the smartest things I have done as an investor and a financial educator is to soak up the wisdom of people who have more smarts than I do. More



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