"All of us must become better informed. It is necessary for us to learn from others' mistakes.

You will not live long enough to make them all yourself.” Admiral H.G. Rickover

In This Edition
We're Talking Millions FREE
Chris Pedersen continues his great work
Latest Podcast- Why not all equities all the time?
Testimonials

Dear Friends,

"We’re Talking Millions! 12 Simple Ways to Supercharge Your Retirement”

I am hoping this short book found its way into more than a few Christmas stockings. I’m hoping many more emails found the free pdf or free audio file

If you decide to help spread our information to family and friends I suggest you send the following note along with the link: There have been over 100 written reviews on Amazon. All but 4 of those reviews are 5 star reviews. Here a couple of those. I hope they motivate you to spend the couple of hours to go through the book or 3 hours of the audio file.

5.0 out of 5 stars Life-changing book for young people interested in investing

"We're Talking Millions" was a life-changing book. I am a 19 year-old college student who was directed toward Mr. Merriman's book as a great resource for first time investors. His book was the the perfect resource for someone with little to no prior knowledge about investing.

It starts by outlining the twelve steps to boost a retirement fund, listing tips and tricks along the way. One of the most helpful parts for me was that all of the investment lingo was clearly defined and explained, and I could get a very clear sense as to how each of these small steps fits into the overall puzzle. The book then outlines how to get started: explaining the "Two Funds for Life" investment plan, what investment companies are best to use, and suggesting specific investment funds.

I cannot recommend this book enough!! I feel confident about my investment plan after reading this book, and I plan to share it with as many of my peers as possible. I have already given it to my sister and best friend. If you are looking for information about investing and don't have the energy to read a long, dense investing book, then "We're Talking Millions" is the book for you! It is interesting, short, and extremely informative, and I hope that it helps you as much as it helped me.

B Adams
5.0 out of 5 stars Paul and his team make investing simple!

This book really exemplifies the work Paul Merriman and his foundation does to teach the DIY investor how to set themselves up for the best possible results while not being taken advantage of in the process.

To be clear, the information in this book is not magic. You’re not going to be able make millions by saving a hundred bucks a year. However, the advice works according to the scale of what you can save.

If you’re looking to get your investments for your future self set into motion or even already underway, do yourself a favor and buy this book.

Once done with this book, be sure to visit his website, listen to the podcasts with Chris Pedersen and Daryl Bahls, and continue your education. It’s the financial education everyone needs and deserves but many don’t get.

If you do find value in his teachings much like I have, I would encourage you to donate to his foundation to help further their cause of teaching financial literacy in grade schools and elsewhere. He doesn’t charge a dime for his education he gives us but his foundation’s work costs money to run.

CHRIS PEDERSEN CONTINUES HIS GREAT WORK

Recently Chris Pedersen made a terrific presentation, both as a podcast and a video of a new table to reflect the potential long term returns of target date funds. The following are Chris’ responses to viewers comments and questions about 2 Funds for Life.

Q: Don't target date funds already have a small cap component ? Or because its cap weighted the per cent of small cap in a TDF is miniscule..?

A: Yes, TDFs hold some small-cap and value stocks in proportion to their share of the total market, but the only way you get the premiums for small and value is to own a disproportionate amount of them. Put another way, the TDF's small stocks are offset by the large stocks, and the value stocks are offset by the growth stocks. When you own the total market, you get exposure to the market risk premium. When you own a small-cap value fund, you get exposure to the market risk premium, the size risk premium, and the value risk premium. And if you choose wisely, the small-cap value fund may also provide exposure to some of the quality and/or momentum risk premiums.

Q: Is there an age that a target date fund isn't prudent? 65-70 yrs old, planned retirement 2yrs?

A: Target-date funds are built to fit the needs of some hypothetically average investor. If the 65-70-year-old investor fits the mold, the TDF is more likely to be prudent for them. If the investor has dramatically undersaved, or oversaved, or has a wildly different risk capacity or tolerance than the hypothetical average the TDF is designed for, then it's less likely to be prudent for them.

Q: can you be more specific as to the fixed income side of the TDFs? are Treasuries preferred to corporate bonds? and what about bond duration?

A: We recommend a mix of intermediate-term and short-term treasuries plus TIPs for the fixed-income portion of investor portfolios because they are safer and less like stocks. Target-date funds tend to own the total bond market. You can backtest 50|50 portfolios of the total US stock market and total US bond market or the Merriman fixed income allocation using Vanguard ETFs at Portfolio Visualizer. The difference in CAGRs since November 2012 is < 0.1 %/year, but the worst drawdown was 3% greater using total US bonds.

Latest Podcast- Why not all equities all the time?

In the last podcast of the year Paul discusses the many important projects Chris Pedersen, Daryl Bahls and he will explore in 2024.

He then addresses a question from a listener: Why not all equities forever? The question is the focus of a wonderful interview with Scott Cederburg, Associate Professor of Finance at the University of Arizona. Scott is the guest of Truth-Teller Ben Felix and Cameron Passmore on their podcast, Rational Reminder.

In this podcast entitled "Challenging the Status Quo on Lifecycle Asset Allocation” Scott discusses his groundbreaking research on the implications of retirees using all equities during their entire retirement vs. the traditional stock/bond allocation most experts recommend.

Paul uses Tables ⁠D1.4 Fixed Distributions S&P 500⁠ and ⁠D9.4 Fixed Distributions U.S. 4 Fund⁠ to demonstrate how much better returns than all equity large cap blend can be earned with a combination of small, large, growth and value and up to 50% in fixed income.

Another listener asks where one can find the tables referenced in the podcast entitled, "The best gift of all? A financial legacy for a child"

Here is the ⁠link to the pdf⁠ that includes the tables mentioned in the article. He also recommends he review these ⁠tables⁠ that Daryl put together to show the impact of two investors starting at age 18 and 23.

Testimonial

As a beginner DYI investor (about 2 years managing my own portfolio at age 64, not retired yet) I LOVED this video. Lots of great info and comparisons that are not readily available, and I really appreciated more details using Morningstar and Portfolio Visualizer for research and comparison of funds beyond what I have learned from RobBerger.

I have been following Rob for the past 2 years (tremendously helpful) and am new to following this channel. As I learn more, I can digest the deeper dive that Chris goes into, and really love how Paul inserts comments and clarifying questions...it's all so fascinating and helpful with making consequential decisions AND being able to sleep at night, thank you so much!

3 ways investors are tricked — and 6 ways to protect yourself

Latest Podcast- Why not all equities all the time?

The Lifelong Process of Financial Education with Paul Merriman

Call To Action!

Here are a few simple ways to support the financial education work of The Merriman Financial Education Foundation, a registered 501(c)3. In so doing you help better the lives of individuals, families and communities, creating more opportunities for all.

Subscribe to our weekly “Sound Investing” podcast, available on your favorite listening platforms and leave a review. Tell us what you think!
Subscribe to our YouTube Channel, and hit the thumbs up, subscribe, leave a comment and share the link with your social media and friends.
Use our M1 Finance affiliate link to set up a brokerage account and use our portfolio suggestions. If you fund your account with a minimum of $1,000, our foundation will receive a one-time affiliate fee —at no cost to you—which helps support our financial education projects.
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Buy our latest books, We’re Talking Millions! 12 Simple Ways To Supercharge Your Retirement and 2 Funds for Life: A quest for simple & effective investing strategies; all the profits help support our work.
Support our mission by making a tax-deductible donation to the Foundation.

In This EditionWe're Talking Millions FREE Chris Pedersen continues his great workLatest Podcast- Why not all equities all the time?Testimonials

In This Edition
We're Talking Millions FREE
Chris Pedersen continues his great work
Latest Podcast- Why not all equities all the time?
Testimonials