"It's human nature to find patterns where there are none and to find skill where luck is a more likely explanation (particularly if you're the lucky [mutual fund] manager)." Mutual fund manager performance does not persist and the return of stock picking is zero." William Bernstein

In This Edition
How $1000 Could Change a Life
Latest Podcast
Q&A from Latest Podcast
Testimonial

Last week, I spent two full days at Western, presenting to seniors about to graduate, to faculty and staff, and to a personal finance class. I also had a fantastic hour with the Financial Management Association Club. These students were fired up about their financial futures, and it was energizing to see their interest.

A big part of my visit was to help everyone—students, faculty, and staff—see how they can get involved in building financial literacy on campus. And to make things a little more exciting, I offered a $1,000 drawing for students. Whoever won could take the money with no strings attached, but I also offered to personally help them set up a Roth IRA and invest it wisely.

When Kyle’s name was drawn from the hat, he didn’t just win $1,000 — he won a head start that could change his entire financial future.

Kyle, a graduating senior at Western Washington University, was attending a special event on financial literacy. The university is in the process of making personal finance education a requirement for all students — 30 to 40 hours of financial literacy that could transform not just one person’s future, but the trajectory of their family and community for generations.

Before the drawing, I shared something with the students that I hoped would change the way they thought about money. It was a simple chart. Nothing fancy — just three columns showing what a $1,000 investment could grow into if left alone for decades, earning average annual returns of 8%, 10%, or 12%.

At 8%, the $1,000 becomes over $50,000 over a working lifetime.
At 10%, it becomes more than $100,000.
At 12%, it could reach $250,000 or more — from a single, one-time investment.

By the way, these numbers are just up to retirement. Join me in the video or podcast and you will learn how to grow this $1000 to more than $3,000,000!

That’s the power of long-term, patient investing. It’s not magic. It’s math — and it’s a mindset.

A Business That Lasts a Lifetime
When Kyle’s name was called, he wasn’t just handed a check. He was handed an opportunity — and a little guidance. Together we plotted a long term course including opening a Roth IRA for him and invested that $1,000 in four low-cost index funds:

50% in two, a Total Market index fund and an S&P 500 index fund, representing the backbone of American business.
50% in two U.S. small-cap value funds, historically one of the most rewarding asset classes for long-term investors.

This isn’t day trading. It’s not speculation. It’s what I like to call a lifetime business plan — and Kyle just became the CEO of a business that hopes to operate for 80+ years.

If he never adds another dollar (though I hope he will), and if he simply stays the course, this investment could fund part of his retirement, a gift to his future children or grandchildren, or even a charitable legacy in his name. And all of it grows tax-free in a Roth IRA.

A University That’s Changing the Game
Western Washington University deserves credit for working on the creation of something too few institutions are willing to do: they are treating financial literacy as an essential part of a college education. Not optional. Not extra credit. Essential.

Their program — which includes both in-person and online instruction — doesn’t just teach students how to balance a checkbook. It teaches them how to:

Avoid debt traps,
Use investing to build long-term wealth,
Understand taxes and compounding.
Make smart decisions about careers, benefits, and retirement.
Take responsibility for their financial independence.

In short, it prepares students not just to graduate, but to thrive.

As the founder of a nonprofit dedicated to investor education, I believe that every student in America deserves what Western is providing. The difference between a financially literate and illiterate graduate is more than dollars and cents — it’s the difference between anxiety and confidence, between paycheck-to-paycheck living and true financial freedom.

Kyle’s Future — and Ours
Kyle's story is just beginning. But it’s also a signal of what’s possible when education is aligned with real-life success.

Think of the thousands of students who will walk through Western’s doors in the coming years. Thanks to this program, they will walk out not only with degrees, but with financial clarity — a priceless gift in a world full of financial confusion.

And think of the message that $1,000 sent to Kyle and his classmates: that one decision, made early, can shape a lifetime.

That’s not just investing. That’s transformation.

Here is information about the Western Washington University Merriman Financial Literacy Program. Let me know if you have questions. https://financialliteracy.wwu.edu/

Latest Podcast $100 a month to $37 million, Bear markets, Bogleheads and a free education

Today I’ve got a lot to share: my recent trip to Western, new educational tables from Daryl Bahls, a must-read article by Ben Carlson, a fantastic free resource called Rebel Finance, and some takeaways from the latest Bogleheads meeting.

Podcast Q&A's

Q: What financial lesson did Paul emphasize with the lump sum vs. monthly investment tables?
Paul highlighted that both lump sum investing and consistent monthly contributions can lead to substantial growth over time, especially when started early. He emphasized the power of compounding and how even a small increase in annual return can make a huge difference over decades.

Q: How does dollar-cost averaging benefit investors, according to Paul?
Dollar-cost averaging allows investors to buy more shares when prices are low and fewer when prices are high, which can improve long-term returns—especially in volatile markets. Paul explained that this strategy can sometimes result in even greater gains than lump sum investing in certain asset classes.

Q: What hurdles do people face when starting to invest, and what’s Paul’s advice?
Common hurdles include not having enough money, fear of loss, thinking investing is too complex, or not understanding the math. Paul’s advice is to start small, use available educational resources, and seek out supportive teachers or communities to help overcome these barriers.

Q: What makes the Rebel Finance course unique?
Rebel Finance offers a free, interactive, and supportive 10-week course led by a couple who achieved early retirement. The course is designed to be accessible, simple, and motivating—helping people overcome fear and confusion about money management.

Q: What is the significance of the Bogleheads community in Paul’s experience?

Paul values the Bogleheads community for its focus on index investing, sharing of practical tools, and supportive atmosphere. He highlighted how members help each other with everything from financial planning to caring for family members’ finances.

Q: How does Paul see AI impacting financial education?
Paul believes AI is revolutionizing how we learn and teach about investing. He’s using AI to organize his thoughts, create better presentations, and answer complex questions—encouraging others to explore AI as a tool for personal finance education.

Q: What advice does Paul give to those who fear bear markets?
Paul stresses that bear markets are inevitable, but long-term investors should focus on the historical trend of growth. He recommends staying invested, maintaining a diversified portfolio, and using resources like “fine-tuning tables” to help balance risk and reward.

Q: How does Paul encourage listeners to spread financial literacy?
Paul urges listeners to share helpful articles, free courses, and educational tools with friends and family—especially younger people—because even a small nudge can make a lifelong difference in someone’s financial wellbeing.

Testimonial

Thank you for all the content, you have made a huge impact on my financial life especially because there has never been anyone to really teach me along the way.

$100 a month to $37 million, Bear markets, Bogleheads and a free education

What Every Young Investor Should Know

Saving for retirement is easier than you think

In This Edition How $1000 Could Change a LifeLatest PodcastQ&A from Latest PodcastTestimonial

In This Edition
How $1000 Could Change a Life
Latest Podcast
Q&A from Latest Podcast
Testimonial

How $1,000 Could Change a Life