"Not everything that counts can be counted, and not everything that can be counted counts."

(Attributed to Albert Einstein)

In This Edition
The Truth Tellers Rock
10th Annual Retiremeet Conference Schedule
Latest MarketWatch Article
Latest Podcast/Video
Testimonial

Our priority is giving do it yourself investors our best suggestions in building the equity and fixed income portions of their portfolio. We then take the historical returns of the various portfolios (some actual and some hypothetical) to give investors a reasonable set of expectations on both the upside potential and downside risk that is apt to be part of the long term investment experience.

Of course there is a lot of additional information that is important in building a lifetime financial plan. The list of other information includes taxes, educational funding, many kinds of insurance, charitable giving, and much more.

Our list of Truth-Tellers is there to give do it yourself investors access to information to the many other topics that are important in managing their financial future. The following are links to the work of four of our TT.

Christine Benz, director of personal finance and retirement planning for Morningstar (our April 4 guest in our upcoming Financial Literacy Month series) offers information on IRAs that might be helpful
to many in this article: “5 Little-Known Rules About IRA Contributions.” https://www.morningstar.com/retirement/5-little-known-rules-about-ira-contributions

John Reckenthaler, vice president, research for Morningstar Research Services has just written an article on index funds that's worth a read. The title, "Index Funds Have Officially Won" won’t shock you
but, since most of our readers are building their financial future on these securities I think John’s long term perspective is worth noting. https://www.morningstar.com/funds/index-funds-have-officially-won

George Sisti, friend, financial planner and one of the finest newsletter writers in our industry, is a must read for do it yourself investors who believe a solid view of the history of investing should be part of their knowledge base. Just try one issue and see if it fits your needs. https://oncoursefp.com//images/Vectors%20Feb%2024%20final.pdf By the way, George writes these monthly newsletters for his small handful of clients (and he doesn’t want anymore) and those who are on the quest to be more productive do it yourself investors. And he doesn’t charge a cent for his sage wisdom and perspective.

One of the difficult aspects of investing is dealing with the eventual bear market when it arrives. We all know it’s coming but don’t know when. Here is yet another TT article that is worthy of review. In “How Often Do Bear Markets Occur,” Ben Carlson creates a table that highlights S&P 500 Drawdowns since 1928. Read it and get ready for what is a normal, but uncomfortable part of the process of long term investment success.

10th Annual Retiremeet Conference

Here are the times and topics the Retiremeet speakers will address. Maybe you will find a topic that will be of interest to others in your family.

Latest MarketWatch article- The truth about investing: ‘Common sense’ can be the worst advice

In a recent article I offered the opinion that “common sense” is a dangerous trap that’s easy for investors to fall into. Some readers didn’t agree.

So let’s explore this idea a bit, then you can make up your own mind.

Common sense is a popular topic for authors. I have often recommended ”The Little Book of Common Sense Investing” by John Bogle.

There’s ”Common Sense Investing” by Fred McAllen and ”Common Sense Investing”by Rick Van Ness. James Pattersenn Jr. is the author of ”Common Sense Investing With Index Funds”and of ”Common Sense Investing With Stock Screeners. ”

These titles all appeal to the notion that people somehow know what makes sense and what doesn’t. “It’s just common sense, after all.”

However, too many times, the appeal to “common sense” is not accompanied by evidence, only an assumption that anyone with any brains would have to agree. Read more.

Latest Podcast and Video- Chris Pedersen answers your questions: Best in Class, 2 Funds for Life and more!

Join Paul and Chris for this podcast/⁠video⁠ they recorded. During the conversation Paul mentions Chris’ free copy of “⁠2 Funds for Life⁠” and a fascinating interview with Professor Scott Cederburg on ⁠Rational Reminder⁠. Cederburg is an advocate for a lifetime portfolio of all equities.

The following are the topics and questions they discussed:

What does an investor do if a small cap value fund is not available in their 401(K)? Does a small cap blend fund, that is available, have the same impact as small cap value?
How do you choose between investing in a higher expense ratio ETF (say Avantis) compared to investing in a low expense ratio small cap value index fund? Would the decision be as simple as going with the lower expense ratio fund?
How do taxes impact your recommendations whether the asset class is held in taxable or tax advantaged accounts? Specifically, the S&P 500 fund that has little to no annual taxes vs small cap value which is less tax efficient.
Are you tempted to invest in individual stocks or actively managed funds?
Since small cap value funds can have long periods of underperformance, does that suggest those approaching retirement should avoid small cap value funds?
How did you react to the March 2020 Market Meltdown and other past major market declines? Did you try to take advantage of the declines as a buying opportunity?
What about combining 25% each small cap value and S&P 500 fund with 50% target date fund?
What’s the best way to move from your present holdings to a 2 Funds for Life Portfolio?
Where do I find information on how you make your selection of Best In Class ETFs? ⁠Here is the page that has links to the articles, podcasts and video. ⁠ Plus here is a link to ⁠Chris’ AAII article⁠ on the topic.
I’m setting up a 50/50 small cap value/target date fund. Would it help to add international small cap value?
How about using two small cap value ETFs? DFA and Avantis each have similar ETFs but different portfolios.
What is the status of Chris’ new white paper on 2 Funds for Life?

Testimonial

As a 64 year old who didn't prioritize saving and investing in the stock market until very recently, I'm incredibly grateful for you and your team.

The fact that you so generously share your knowledge, experience and research results for free, with the goal of helping everyone who will listen to have a more secure and happy life through financial literacy is amazing and awe inspiring.
M.N.

The truth about investing: ‘Common sense’ can be the worst advice

Chris Pedersen answers your questions: Best in Class, 2 Funds for Life and more!

Call To Action!

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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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In This EditionThe Truth Tellers Rock10th Annual Retiremeet Conference ScheduleLatest MarketWatch ArticleLatest Podcast/VideoTestimonial

In This Edition
The Truth Tellers Rock
10th Annual Retiremeet Conference Schedule
Latest MarketWatch Article
Latest Podcast/Video
Testimonial