Interview with Paul Merriman | Live Q&A
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- Опубліковано 6 сер 2024
- Sallie Mae 14-Month No-Penalty CD @ 2.70% APY (via SaveBetter): www.allcards.com/go/sallie-ma...
Today we have the pleasure of talking with Paul Merriman, a nationally recognized authority on mutual funds, index investing and asset allocation.
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Video Resources from Paul Merriman
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paulmerriman.com/ultimate-buy... This link gives the case for the 10 U.S. and international equity asset classes
paulmerriman.com/wp-content/u... This link shows 9 different ways to combine the 10 equity asset classes and the 52 year returns for each.
paulmerriman.com/fine-tuning-... This link provides data combining each of the 9 equity portfolios along with different percentages of fixed income.
paulmerriman.com/2021-fixed-c... This link shows the impact of using the 9 portfolios and all the combinations of fixed income assuming an initial annual investment of $1,000 with a 3% annual increase on investment.
paulmerriman.com/2021-fixed-d... This link shows the impact of using the 9 different equity/fixed income as a source of fixed retirement distributions. Each years distribution is adjusted for inflation. Beginning distributions range from 3 to 6 percent.
paulmerriman.com/flexible-dis... This link shows the impact of annual distributions based on a percentage of assets, without inflation adjustment. Distributions range from 3 to 6 percent.
paulmerriman.com/90-years-of-... This link compares the annual to 20 year returns of 4 major U.S. asset classes.
paulmerriman.com/lifetime-inv... This link it to the Merriman Lifetime Investment Calculator. The calculator can be used for investors in both the accumulation and distribution periods of their investment life.
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Timestamps
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0:00 - Welcome to the Financial Freedom Show!
0:53 - Small Cap Value
20:36 - Other consistent funds
22:51 - Equity portfolio
26:52 - Deciding/4 fund strategy
30:07 - Links below/Quilt chart
45:11 - Stock vs Bond allocation/Market Timing
49:29 - Investing strategies/risk
50:42 - Retirement withdrawal strategy
53:06 - Challenge
55:15 - Glide Path
58:10 - Market Timer's strategy with the current market
1:00:51 - AVUV over VBR
1:08:02 - Measuring value
1:10:38 - Paul's Bond Portfolio
1:12:27 - REIT's
1:13:47 - Tired
1:15:13 - What's next for Paul
1:18:25 - Bogelheads conference
1:19:43 - Links below/Financial Freedom
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Investing Tools
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My Book (Retire Before Mom and Dad): amzn.to/2MsRJ9B
Personal Capital (Investment Tracking, Retirement Planning): robberger.com/go/personal-cap...
New Retirement (Retirement Planner): robberger.com/go/new-retireme...
Stock Rover: robberger.com/go/stock-rover/yt-
#billgengen #retirement #robberger
ABOUT ME
While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (amzn.to/3by10EE)
DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom. - Розваги
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hi rob - i like this guy. he doesn't try to dazzle you with bs. just speaks in plain english to the topic at hand. and his charts you pulled up are straightforward and easy to understand. i think i'll spend some time on his web site this weekend. thanks for the interview, i really enjoyed this one.
Thanks for the kind comment Curtis. The best way to access our data and recommendations is through th "Best Advice" link on the homepage. Each topic under Best Advice includes links to a podcast, article and tables on the subject. I hope they helf.
@@paulmerriman2947 .
Thank you Rob for a great Q&A. This is one of the best hour and 20 minutes I’ve spent in a long time! I guess I’m a financial nerd. But I’m proud of it
My two favorite financial experts alive today discussing personal finance together. Perfect! Thank you both for your time, talent and wisdom.
Completely agree. These two are my favorites as well!
Optimized Portfolio is right up there also.
Nobody:
Paul Merriman: We have tables for that!
Rob, for the recent interviews you have done, this is my favorite! Paul is so passionate about his beliefs. I have been listening to Paul's podcast over the last 18 months. He has convinced me of the long term power of tilting your equity portfolio towards small cap value. I added the 10% tilt at the beginning of 2022.
Great down to earth, easily explained info I can put to good use. Best guest to date!
I enjoyed this discussion quite a lot. Thanks Rob
Big thumbs up! Thanks, Paul and Rob, for being so knowledgeable, helpful, genuine, candid, and fun.
This was the collaboration I have been waiting for, for so long! I love Paul, but I really think Chris has become the mastermind behind the organization. I think you and Chris share a number of great qualities. Would love to see you two get together and do a similar discussion as this video. Also would be interesting to hear his take on market timing, wish that could have been explored more. Thanks!
This was fantastic! Both you and Paul Merriman have reshaped my understanding of investing in light of the importance of small cap value. Thank you Rob!
Also, so helpful to have all those links in the description-many thanks!
That was great, I joined the live late. Will definitely watch this in full later today!
Hi Rob, impact of SCV is absolutely clear. The second most important thing is WHICH SCV fund or ETF to use. For a person using FIDELITY, which fund/ETF have you found that should be used? FISVX? or would the preference be VBR? (I don't know if it would have a fee as I'm not using Vanguard's platform).
ETFs are free from one platform to another. There would be a fee for the mutual fund version
I have both of your podcasts..I listen as I walk. Thanks, guys. Your education is, beyond, valuable!
PS. Paul is the GOAT!
Wow what a great show ! Paul is the goat ..
A very important question and a great answer for young investors 42:05
Best interview yet IMO. Look forward to your assessment of this interview. I will watch this again tomorrow, a lot to digest.
Very very interesting. cant wait till your review of the interview
Great conversation!...educational, entertaining and joyful.
Love this show, thanks Rob!
Great interview. It’s always a pleasure to listen to Mr. Merriman.
Another great interview!
An awesome episode! Rob Berger is becoming a true legend!
I agree with that comment. I have a list of Truth Tellers I believe are helping investors do what is in their best interest without any conflicts of interest. It's a relatively short list and I'm pleased to have Rob on the list. I don't expect I will be able to work to many more years and my hope is that Rob will be able to continue his commitment to helping others for many decades.
Very informative and entertaining interview. Probably worth a re watch. Good job to both of you
I hope you find the re watch helpful. If you wish to dig deeper into our information, I suggest you follow the "Best Advice" link on our homepage. There are over 150 tables under those links.
What about the premium for mid cap value?
Very Knowledgeable guy. Great episode!
Stellar interview.
Congratulations getting Paul Merriman.
Great interview
Outstanding, i really enjoy this talk.
Amazing!! Just wish I knew this earlier. Best day to start was yesterday. Second best day is today. Appreciate you.
Thanks, Paul! Thanks, Rob. Resources were awesome and the discussion was great. Best observation: Target date funds: “built for the slowest hiker”
Glad you found the discussion of interest. The last half of "We're Talking Millions!!" is focused on target date funds. With the advice of Chris Pedersen (creator of 2 Funds for LIfe strategy) "slow hikers' can move to the front of the line with very little extra risk.
Great video. Are the links going to be posted soon?
Do you think it's a good idea to invest in Fixed Income Annuities as part of the Fixed Income portion of a portfolio? This would be instead of, or in addition to, bonds. Fidelity has 3-year Fixed Income Annuities that are paying over 3%.
Great interview answered all my questions about Avantis funds, Vanguard VBR vs VIOV.
2 of my favorite financial gurus!
Anyone got link for audiobook "We're talking millions"?
I found few presentations but not book itself
Many regards
Terrific discussion, you two do indeed make a great team. Would have liked to hear more about the market timing approach. Its counter to the the main message delivered by both of you. Maybe more appropriate for high net worth? Is this a product you have to go to an advisor for, or is there a managed fund one can invest in? How does this type of strategy fare over time - when subjected to the same historical analysis of the other portfolios?
thanks Rob!
This man is a gem. Thanks Rob.
Missed it live
Paul Merriman is the MAN
Small cap value is the cowbell. You need more cowbell.
I've got a fever; and that fever can only be cured by more small-cap value!
I've got the need, the need for small cap value.
Looking for a small cap value I can buy with cad.
Great discussion and it gets me thinking.
While listening to this, I popped over to portfolio visualizer and compared "100% large cap" with "50\50 Large Cap\Small Cap Value" contributing $500 monthly for each. True enough the 50\50 portfolio stomped the 100% protfolio starting in the 1970s, 80s and 90s. But looking at the periods starting from 2000 on (so 2000-2022, 2005-2022, 2010-2022, etc) the 100% Large Cap wins out over the 50\50 portfolio in every one of those more recent periods...
Is there a reason to believe the trend will revert back to "the good old days," or conversely, is there a reason to believe trends will stay similar to what they have been in the last 20 years?
We don’t know, that’s why portfolio diversification is so important.
3 reasons:
1. The profit growth between large cap growth and small cap value isn’t as big as it should be given their prices
2. The reason large cap growth beat small cap value over the last decade is multiple expansion, not expansion in profits
3. Taking on more compensated risks over the long term should net you with a higher return, as long as you’re not investing in junk value stocks with low profitability.
The 50/50 portfolio has less risk. With rebalancing, even less risk.
@@FlagstaffChief How do you figure you would get less risk by adding small cap to large cap? To say nothing of the fact that the video's explanation for the improved performance (prior to 2000) was from increasing the risk of adding more of these small, high-risk/high-reward companies to your portfolio...
@@harrychufan None of this explains *why* this has happened for the last 20 years, nor is it prescriptive for explaining why things should revert to "the ways things were" in the future.
This was an outstanding interview. One thing Paul usually says but didn't make the point here is that he uses timing only for defensive purposes, not to increase total return.
Wonder if Paul does fee only reviews of people’s portfolios. I’d like to have him review mine.
He doesn’t..
Thank you for introducing us to Paul. Very different from you Rob.
👌
Huge fan of Paul Merriman….listen to his podcast weekly and follow the two fund portfolio for my spouses 401k. I’m a bit concerned about the significant international holdings in target date funds weighing down long-term returns
Rob, you should look at your guest when they're speaking. It's rude not to and just keep saying, right, yeah, yeah, it look like you're not paying attention. Rude.
Great one Rob! and I love listening to Paul and all his wisdom. You two combined perfect. You both do a great service for us do it yourself investors...
Great interview