In this podcast, Paul addresses these questions from his listeners and readers. As investors age, how do they make the conversion from equities to fixed income? How does a saver make the transition to being a spender? Where can I find a professional, who bills by the hour, to help me evaluate my cost of living …

One of the biggest challenges for investors is developing reasonable expectations for future returns. Do you expect hot markets to continue to produce market-beating returns? Do you expect big bear markets to continue to rob investors of their life savings? If so, you are likely setting yourself up for disappointment. In this podcast Paul looks …

Along with this year’s updated Fine Tuning Your Asset Allocation article and updated Fine Tuning Your Asset Allocation Table for the S&P 500,  Paul shares this “best lessons” podcast. He walks investors through the best and worst of returns, along with the corresponding worst losses over 6 different time frames. The case is clear: one decade does …

Just because an investment doesn’t work out as well as expected does not mean the investment decision was a mistake.  In this podcast Paul discusses the recent failure of evidence-based investing.  He questions the assumptions investors make about investments that have been successful over both short and long-term periods.  His comments are in response to …

The annual Ultimate Buy-and-Hold Strategy article and podcast are among the most important pieces Paul and Rich produce (with a lot of help from Daryl Bahls in creating the updated tables). This podcast addresses topics not covered in the Marketwatch article.  Paul answers such questions as: Are returns reasonable? What is the impact of annual and monthly rebalancing? …

1. If I need income from my investments, am I better off investing in stocks paying a good dividend rather than bonds? 1:45 2. Is a 60% stocks/40% bonds balanced fund better than a target date fund? 11:35 3. How does VBIAX (Vanguard Balanced Fund) compare to the 2 …

In this special podcast Paul interviews Chris Pedersen about the 2019 changes to the Best-In-Class ETF Portfolio recommendations. This will be helpful to those who want to understand the details of how Chris made the decisions to select the best in each asset class, changing many from the previous year. The discussion includes comparing the …

What information is really meaningful to be a successful investor, especially in light of conflicting, enticing and scary reports? In this podcast, Paul asks and explores the questions: Will a list of 10 likely catastrophic events be enough to keep you out of the market?  Will a newsletter, produced by an ethical organization, likely give …

In this special podcast, Paul discusses his list of “A Dozen Million-Dollar Decisions.” This advice for college students was recorded this week for students at Western Washington University, Paul’s alma mater and where The Merriman Financial Education Foundation funds the development and presentation of Personal Investing 216, an accredited course since 2014. …

Or… Are you missing out on millions of dollars for your retirement? After deciding to save and invest, the most important investment decision of your life, in Paul’s opinion, is what this podcast addresses. Of the Millennials investing in 401k plans, nearly 25% are refusing to take the risk of investing in stocks (equities) and are …

Paul addresses an array of topics and questions, including this year’s plans for the Merriman Financial Education Foundation, Millennial spending habits, best and worst of times in 10-year periods for the S&P 500 and small-cap value, market timing, and recommendations regarding risk assessment, 401k’s, index funds and owning small-cap-value funds in retirement. 1.  What are the 2019 …

Paul answers recent questions from readers and listeners: 9:29 1.  A young investor asks me to explain, how does compound interest work?  I referenced this article: Save $1,000 a year. Retire with millions 19:41 2.  Do you expect index funds to keep outperforming actively managed funds? 25:35 3. Most of your articles are focused on accumulators. …

With the passing of 89-year-old John Bogle, many writers who have covered Bogle’s work wrote thoughtfully about his life and the impact as the creator of the first index mutual fund.  For 10 years, Tom Cock, Don McDonald and I interviewed him annually on our “Sound Investing” radio show on KVI in Seattle Washington. It …

Paul analyzes the 20-year returns of 10 major equity- and fixed-income asset classes. What do we have to learn?  Returns can be totally unexpected but the relationship between asset classes remain the same as they have for almost 90 years. The table below allows investors to examine the year-by-year returns of large and small U.S. equity …

1.Vanguard founder Jack Bogle says it’s time to play it safe. Should we be making changes to our portfolios or stay the course? :40 2. Did active managers beat passive funds in the recent selloff? 15:15 3. What are the relative risks and returns of the S&P 500 and small cap value index? 26:33 4. …

Not all of the numbers are in, but enough are to discuss the returns of 2018. Of course a single year is not indicative of much, but it is often a test of our commitment to Buy-and-Hold. In this podcast, Paul reviews the numbers for his favorite equity asset classes (big, small, value, growth, REITs, …

Paul answers some recent questions from readers and listeners. How far is the market likely to fall? How has your market timing system worked in this market decline? Which is the better Vanguard large cap ETF: VTV or VONV? Jeffrey Gundlach says investors shouldn’t invest in index funds because they are hurting investing behavior. His …

At the 2018 AAII National Conference, Paul presented key concepts from the Ultimate Buy and Hold strategy and premiered the Two Funds for Life strategy, and had the great pleasure of hearing a talk by Mark Hulbert, founder of the Hulbert Financial Digest and senior columnist for MarketWatch. Considering it was the best talk of 2018, Paul asked and was granted …

Paul discusses 9 different lies, or myths, that keep millions of investors from investing in stocks. Some of these lies are created by the “fake news and advertising” from Wall Street, and some by the natural fear of loss.  In one example of an investment myth — “Investing is risky” — he compares the worst …

In this lively conversation, Paul talks with Tim Ranzetta of NextGen Personal Finance about index funds, dispelling common myths young people have about money, how to build a portfolio for life, target date funds, the importance of diversification, the commitment to helping people help themselves, and more. NGPF.org provides an abundance …

Since the market started making noises like a baby bear, more investors are asking,”What is the appropriate percentage of equities in my portfolio?” Paul addresses this question from the points of view of a young investor, a pre-retiree and a retiree, and also considers the dangerous probabilities of bad advice from commission-based advisors. In a …

In wishing listeners a Happy Thanksgiving, Paul shares some of the reasons for his gratitude, and 12 important decisions/choices that every first-time investor will make. He provides a few reasons why one path is likely to lead to a better financial outcome. Attached is a list of the choices he recently used to teach high …

When Chris Pedersen came to Bainbridge Island to tape the video/podcast on the 2 Funds for Life Strategy, he joined Paul in an interview  to address some questions regarding his work on several important projects. Here is a partial list of questions: What are the pros and cons of Best-in-Class and commission-free portfolios? What variables …

This podcast, recorded before the market opened on Election Day in the U.S., begins with Paul’s advice on how to respond to the election results. He then answers the following questions from his readers and listeners: Why are bond funds losing money? Are individual bonds better than bond funds? How has mid-cap value performed compared …

These 10 important lessons should be considered when putting to work the “2 Funds for Life” portfolio in your portfolio. Paul focuses on the likely long-term gains and the likely short-term losses, answers questions, and discusses the other sources of information on the strategies. For the video, articles, tables and Q&A about the “Two Funds …

A simple strategy to maximize your retirement investments In this podcast, Paul Merriman and Chris Pedersen – who spent most of the last two years developing the “2 Funds for Life” strategy – discuss the rationale, research, details and benefits to easily implement this simple strategy. The discussion includes a quick review of the “Three greatest investment products” (podcast and article  including …

In a recent conversation with Ken Roberts, of Ken’s Bulls and Bears, Paul answers some timely questions, such as: Do you expect value to be a top performer again? How much do you think investors should have in value? With the market being so high, what are you telling investors who are …

After making the point in “The three greatest investment products” that the target date fund is the best of the three (mutual funds second, and index funds third), Paul discusses the glaring problems inherent in almost all target date funds. While challenges include high expenses, active management and too much in …

Paul discusses George Sisti’s comments about the best mutual fund, best “safe” withdrawal rate, and why “working harder” doesn’t seem to help investors. And he answers questions from readers and listeners. 1.  What do you think of the new Fidelity zero-fee mutual funds? 2. Why are bonds losing money? 3. Which do you recommend: Vanguard or …

This is the first of a three-part series, laying the foundation for the upcoming “2 Fund for Life” strategy.  In this podcast, Paul discusses the mutual fund, index fund and target date fund, which have been responsible for some of the greatest wealth building for the average investor. In the case of the mutual fund and the index …

As Paul is preparing to release a new investment strategy, in this podcast he discusses the nature of hypothetical returns. What numbers can we trust and what numbers might be unfairly biased? Also, he addresses 7 questions from his readers and listeners. 1. What are the steps to setting up the $3000 to $50 million …

Billionaire Mark Cuban, owner of the Dallas Mavericks and one of the sharks on the popular CNBC show, “Shark Tank,” shares 10 things people need know to be more successful investors.  Some of them are spot on, while others will likely lead investors down a less productive path. In a couple of cases Paul totally disagrees. Here are …

Ken Fisher is probably the best known independent investment advisor in America. At $70 billion under management, with 2,500 employees and a net worth of $3.8 billion, according to Forbes, he is likely also the most profitable advisor in the industry.  Fisher is considered the King of Marketing in the industry.  He advertises on national TV and in almost every retail …

From first-time investors to those on the verge of retiring with millions of dollars in savings, Paul’s answers to questions from our listeners and readers contain something of interest for every investor. 1.  How different is the new secret strategy from what you are recommending now? 2.  Why would anyone want to take the risk of investing in the market at these …

Paul speaks with Ed Fulbright, CPA and PFS – of “Meaningful Money” website and “Mastering Your Money” podcast – about how to invest in today’s market. Is the market ready to roll over and play dead after a very long period of record highs?  What should investors do who are sitting …

In this podcast Paul answers seven questions from his listeners/readers about bonds, Dimensional Funds, market collapse and correction, treasury funds, market timing and the Japanese market. 1.  Is a portfolio of 90% equities and 10% bonds too aggressive for a 38-year-old? 2.  Do you still recommend using Dimensional Funds even though one must pay an advisor to access them? 3. …

In this interview with financial advisor Joshua J. Sheats, of Radical Personal Finance, Paul speaks of his early ventures on Wall Street and in manufacturing, what it was like to build an advisory firm in the 1980s, his life’s challenges, and the goals, affirmations and philosophies that continue to motivate his work with the

Paul answers your questions about Vanguard balanced funds, including the pros and cons, how to select the best balanced funds, and how to match them to your investment goals and risk tolerance. He references the S&P 500 Equity Portfolio Fine-Tuning Table Vanguard funds: Balanced Index (VBINX) Life Strategy Income (VSCGX) Life Strategy Moderate Growth (VSMGX) …

This podcast was produced with an accompanying slideshow. Listen and watch here: Small Cap Value: What Could Go Wrong. Paul examines the historical and possible future risks and returns of small-cap value stocks as an asset class to help you determine its role in your portfolio – whether a young investor, in your working years, or a retiree. Referenced …

Paul is interviewed by George Grombacher, consultant, podcaster, writer and speaker, on his Money Savage Podcast. They discuss how bias can impact investing as well as every aspect of our lives, and how personal history impacts saving and investing behaviors. And Paul explains how the simplest answer is often the best one.

Last week Vanguard announced they are adding 1,800 commission-free ETFs to their present line up. In this podcast Paul answers what this may mean for investors and three other questions from his listeners and readers: 1.  What impact t will the new ETFs have on the Vanguard portfolios? 2. What is the risk in a portfolio holding equal …

In this interview with Pure Financial‘s “Today on Your Money, Your Wealth”, Paul discusses the truth on market timing vs. buy-and-hold – and explains why he still does both. Plus, he answers questions on collecting Social Security and a pension, rolling and converting IRA money, and whether there are financial perks to waiting until after the first …

Paul answers questions from his readers and listeners. 1.  Can you recommend a portfolio of DFA funds? 2.  How does an investor choose between all value and worldwide equity portfolio? Paul references the following Tables:S&P 500 Equity Portfolio The Ultimate Buy-and-Hold Worldwide Equity Portfolio

Paul  discusses 15 investment myths that can cost investors a lot of money, with Ken Roberts, host of ‘Ken’s Bulls and Bears’,  The myths include:  Investing is just another form of gambling.  You don’t lose money if you don’t sell.  You should sell your losers and let your winners run.  Almost nobody beats the S&P 500.  Morningstar …

In an interview with Jason R. Parker – author of Sound Retirement Planning, a blog and radio show by the same name, and president of Parker Financial LLC, a fee based wealth management firm – Paul discusses retirement, staying the course, fixed income, the value of intermediate-term bonds, building your …

For many years I’ve sung the praises of small-cap value for all investors. Of course, that would be a relatively small percentage for retirees and a lot for first-time investors. I have used this table of 1-, 15- and 40-year returns for large-cap blend, large-cap value, small-cap blend and small-cap value so investors can easily compare the …

My recent opportunities to educate investors have been extremely satisfying, including a presentation to teenagers and their parents on Bainbridge Island, mostly-retired investors at the AAII chapter in Portland, OR and to 200 students at Western Washington University. The following are questions that came rolling in from the groups, as well as emails from our readers …

Do you think the market is close to the top and you should be considering an exit strategy? Let’s talk about market timing, as it seems a lot of investors are concerned with it, judging from the number of questions I am receiving about timing subsequent to my interview with Meb Faber and Bogleheads’ comments after my interview with Dr. Jim Dahle of WhiteCoatInvestor.com. In …