May 28, 2014


Dear Friends,

More than 10 years ago, Rich Buck and I wrote a popular article titled, “Superior Diversification on a Shoestring Budget.”  It is amazing how far the industry has come since the article was released.

The article focused on how to build a broadly diversified Vanguard portfolio following my Vanguard Aggressive Portfolio using 9 different funds. To complete the process took as long as 9 years of patient investing.

Now, with commission-free ETFs at Vanguard and Schwab, and low minimums with Schwab index funds, most young investors can build the entire portfolio in one year.

To learn about this and how to work with Vanguard and Schwab, as well as some of the important differences between funds and ETFs, listen to my podcast and then take a look at my mutual fund recommendations and ETF recommendations.

Another recent podcast I want to recommend is by my guest podcaster Stacy Gary and geared to young investors.  It’s part of a series he has created specifically for my listeners titled,“Overcoming Hurdles To Saving and Investing For The Beginning Investor.” This hurdle addresses the common excuse, “I Lack Funds.”

As Stacy explains, “While ‘buy low, sell high’ is common sense, we do not always exercise common sense, and often make decisions based on emotion; especially with money, which is a deeply emotional topic. He references the book, “The Behavior Gap” by Carl Richards, that speaks to the behavior gap between how we perceive ourselves and what we actually do, and encourages investors to question their choices in terms of life goals. Stacy Gary may be contacted at:

I hope you continue to enjoy – and share – the weekly podcasts, the weekly MarketWatch articles, the free books, and the many all-free resources available to you at Paul I appreciate the time some of you have taken to express your thanks. The best way to thank me is share my articles and podcasts with friends and family.

To your success,


11 Ways to Get More Money in Retirement 
I don’t think you’ll find many people who would turn down the opportunity to have more money during their retirement.  More
Portfolio Killers: 5 Common Investing Myths
I’ve identified five common beliefs – actually they are more myth than reality – that trip up investors of all ages.



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