Target-Date Funds are the most important financial product since mutual funds were first offered in 1924. With pensions a thing of the past, target-date funds should be the investment of choice because they are the most likely path to financial independence for most investors. Unfortunately, many target-date funds lack the appropriate fire power to super charge their growth — especially for young investors. The comments in this podcast are offered as preparation for the next podcast featuring Chris Pedersen, the brains behind the new Merriman Target-Date Portfolios.
Paul compares the asset class returns of his recommendations with the average returns of the same asset class funds. An understanding of the last 9 months may or may not give you a peek into the future performance of these ETF selections. He also discusses holding emergency money in a money market account or just as part of the long term portfolio. And he addresses the risk and return of his Monthly Income Portfolio at Vanguard.
“When I see a title that addresses the value vs. growth issue, you’ve got my attention,” says Paul. “A new article by Dr. Craig L. Israelsen titled, This piece of evidence could derail the growth vs. value debate, opened my eyes to the huge differences similar indices earn over similar periods of time. From his findings, it is easy to see how two investors – theoretically in the same index fund – could have substantially different returns.” For those interested in other research from Dr. Israelsen, check out his website. To review the SPIVA tables and report, click here.
Even just one idea from these 22, could greatly increase the money you will have for retirement. This recording is from the PBS Special Paul created in 2011, the information being evergreen. For more on Paul’s recommendations for 401k plans, at more than 100 major U.S. corporations and the U.S. Thrift Savings Plan, go to: http://paulmerriman.com/
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- My recent meeting with Vanguard founder John Bogle
- Should one diversify beyond the S&P 500?
- What role does luck play in a person’s success?
- Should investors wait to invest until the market comes down?
- What does it means to be a long-term investor?
- Paul‘s retirement portfolio
- How to defend against a bear market
- How to invest a large sum of money
- The role PE ratios play in valuing the market
- How to stick to your investment plan when the market drops
- How to invest 5 years before retirement
Paul speaks with Ken Roberts in this episode of “Ken’s Bulls and Bears,” as they answer listeners’ questions:
7:55- How important are the expenses I pay on my investment portfolio?
10:06- Is diversifying really that important? What about loading up on winning stocks like Facebook and Apple?
19:54- What can investors do to manage risk in their fixed-income investments if interest rates start rising?
25:50- I’m in my early 30’s and for the last five years I have been putting all of my 401k into an S&P index fund; it has been doing very well. I want to add some international funds this year. What the best percentages?
30:00- I attended a seminar by an investment advisor who said he can use technical analysis to determine whether to be fully invested or sit in cash and be defensive during market downturns. Wouldn’t a strategy like that be better than buy-and-hold?
39:45 I recently retired and am invested in 60% stock funds and 40% bonds. How often should I re-adjust my allocation?
In just 50-minutes, Paul covers 50 of the most important investment ideas, each of which should lead to better returns, less risk and greater peace of mind. This is the audio portion of a video you can see at Paul’s website. Be sure to click here to access key supporting materials for this presentation.
Warren Buffett says, “To be a success one only has to do a very few things right, as long as they don’t do too many things wrong.”
This list of 50 includes all of the things you need to do right along with a bunch of things most investors do wrong. It shows how investing really works, so we don’t get sucked into expensive sales pitches that likely will make the sales person more than the investor.
Produced by the Washington State Society of CPAs for its members’ continuing education credit.
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Paul recently met for 90-minutes with Jack Bogle, founder of the Vanguard Family of Funds. Paul reflects on the main topics of the meeting, including what research Jack trusts, why he limits his recommendations to U.S. large cap companies, why the S&P 500 fund offering was almost cancelled, how much luck had to do with his success, why so many people happily under-perform the S&P 500, why he doesn’t think adding extra small cap value is a mistake for most investors, and how Vanguard and DFA clients differ.
As promised to the more than 125 attendees of this Puget Sound chapter presentation, Paul answers the following 20 questions. Since many investors have the same or similar concerns, this podcast should be of interest and use to a broad range of investors, from first-time to well into retirement.