This piece was produced for my 2012 “Financial Fitness After 50” PBS contributors premium package. Investors are challenged by what forces are controllable and what forces are out of their control. At a minimum investors should make sure they take advantage of the forces that are under their control. In this video Paul discusses 10 guarantees every investor should know.
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: https://paulmerriman.com/
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?