I am thrilled to introduce George Sisti one of the smartest people in the field of personal financial planning, as well as asset allocation. I think the best way to introduce George’s work is to share a couple of his recent articles. In the first, George discusses the possible impact of “Fake News” on an investors’ financial future. He ends the article with one of the best pieces of original advice I’ve read. Don’t miss it! In the second article, “The Illusion of Wealth,” he discusses the important choice between whether to annuitize your 401k or roll it over to an IRA. Stay tuned for his advice at the end of the podcast. By the way, George is a long time personal friend. We have some differences of opinion but I have never heard him give a bad piece of advice. To read these articles, click here.
This podcast addresses Paul’s updated “Fine Tuning Your Asset Allocation” Table. This table is constructed to help investors determine the right balance of equity and fixed income funds. Paul discusses the risk and return of 11 different combinations of stocks and bonds. As investor expectations can lead to good or bad decisions, Paul tries to prepare investors for the likely over and underperformance these combinations will produce. He hopes that every investor will find the right balance to meet their need for return within their risk tolerance.
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.
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.
Paul Merriman / Sound Investing / asset allocation, Bernie Madoff, best financial advice, how to choose an investment advisor, how to protect money, investing for retirement, Paul Merriman podcast, Vanguard ETFs, Vanguard small cap fund, where to invest millions /
Q&A Regarding Paul Merriman’s Recommended Portfolios
This 30-minute podcast gives investors a better understanding of how and why I put together my recommended portfolios.
Question #1: Why not substitute some bond funds that pay higher rates of return, like peer-to-peer lending securities that pay over 10%?
Question #2: Is it possible to make rebalancing easier by using one small cap Vanguard fund, rather than two?
Question #3: How risky is it to let an investment advisor manage your account? How do we know the manager isn’t another Bernie Madoff?
Question #5: If an investor has millions to invest, are there things he/she should do differently from what you recommend?
Question #6: Why have you recommended Vanguard ETFs that are similar but more expensive than others they offer?
Question #1: I just received $300,000 from the sale of a company and would like to invest in a handful of funds and stocks I like. What do you think of my asset allocation?
Question #2: Should I put all my bonds in my tax deferred investments?
Question #3: I have 401(k)s, IRAs, taxable accounts, and my wife has several accounts of her own. Where can we get help to put together your asset allocation using all these accounts? Is it possible to get good advice on an hourly basis?Question #4: My friend and I are in our 20s. I told him you recommend young investors should have all their long-term investments in equity funds. He is keeping 10% in bonds in case there is a big sell off, help protect him from loss and give him money to invest when the market is down. What do you think?Question #5: My grandmother has a 10 year CD paying 3.1%. She wants something that pays more but is safe. What would you recommend?
Continued from last week's podcast (Part I), Paul expands on his MarketWatch articles, giving you insights into the essentials of investing. He discusses such topics as: When do you have enough to retire? Not taking risk beyond what is necessary. The worst performance of any strategy is in the future. How to plan for the worst-case scenarios. Why investment decisions should always be based on probabilities, not possibilities. Asset Allocation and knowing what is a perfect fit for you. Working with brokers or other advisors to get the information you need and realize the best returns on your investment.