14 Q&A’s for Sound Investing listeners

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Paul answers 14 questions recently posed to his email account, info@paulmerriman.com. Given the amount of email Paul receives, he again asks that you keep your questions short and general, as he cannot answer to personal situations. For hundreds more Q&A’s, please visit the archive at his website, under “Ask Paul”.  A very special thanks to one of our listeners, David Klawiter, of the Center for Creative Computing, University of Notre Dame, for taking it upon himself to provide the time stamps!
 
1.  Do you think it’s a problem that there are fewer small cap companies available?  (02:18
 
2.  How do you decide to use higher cost actively-managed funds in a 401(k) plan?  (08:05)
 
3.  How do you explain that small-cap blend funds made more money than small-cap value funds?  (11:38)
 
4.  Do you think small-cap value funds are a big risk since they only represent 3% of all public companies?  (19:28)
 
5.  Your distribution tables assume a 1% management fee.  If I don’t pay the management fee can I take out 5% instead of 4%?  (25:02)
 
6.  When are your new Motif portfolios going to be available?  What kind will they be?  (30:47)
 
7.  Do you recommend a UGMA account for your “$3000 to $50 million” account for 2 year old?  Do you still recommend VTWV?  (33:55)
 
8.  Should I continue to use your Microsoft 401(k) recommendations as I am leaving the company?  (37:47)
 
9.  Why did you change your Vanguard Emergency Portfolio recommendation from Vanguard Short-Term Investment Grade (VFSTX) to Vanguard Short-Term Corp. Index Admiral (VSCSX)?  (40:24)
 
10. Have you run the variable distribution tables for 7%, 8% and 9%?  (42:09)
 
11. Can you recommend a good financial planner who only bills by the hour?  (46:02)
 
12.  Do you plan to remain active as long as John Bogle?  (47:43)
 
13.  Can you tell me what underlying investments you recommend for the various stock/fixed income mixes?  Are they indexes or actively-managed funds? Do you recommend amounts for each funds that you recommend?  (48:25)
 
14.  Do you agree with Wade Pfau’s criticism of DALBAR’s studies? (50:14)