Join Paul and Chris for this podcast/video they recorded. During the conversation Paul mentions Chris’ free copy of “2 Funds for Life” and a fascinating interview with Professor Scott Cederburg on Rational Reminder. Cederburg is an advocate for a lifetime portfolio of all equities.
The following are the topics and questions they discussed:
- What does an investor do if a small cap value fund is not available in their 401(K)? Does a small cap blend fund, that is available, have the same impact as small cap value?
- How do you choose between investing in a higher expense ratio ETF (say Avantis) compared to investing in a low expense ratio small cap value index fund? Would the decision be as simple as going with the lower expense ratio fund?
- How do taxes impact your recommendations whether the asset class is held in taxable or tax advantaged accounts? Specifically, the S&P 500 fund that has little to no annual taxes vs small cap value which is less tax efficient.
- Are you tempted to invest in individual stocks or actively managed funds?
- Since small cap value funds can have long periods of underperformance, does that suggest those approaching retirement should avoid small cap value funds?
- How did you react to the March 2020 Market Meltdown and other past major market declines? Did you try to take advantage of the declines as a buying opportunity?
- What about combining 25% each small cap value and S&P 500 fund with 50% target date fund?
- What’s the best way to move from your present holdings to a 2 Funds for Life Portfolio?
- Where do I find information on how you make your selection of Best In Class ETFs? Here is the page that has links to the articles, podcasts and video. Plus here is a link to Chris’ AAII article on the topic.
- I’m setting up a 50/50 small cap value/target date fund. Would it help to add international small cap value?
- How about using two small cap value ETFs? DFA and Avantis each have similar ETFs but different portfolios.
- What is the status of Chris’ new white paper on 2 Funds for Life?
