"One should invest based on their need, ability and willingness to take risk.” Larry Swedroe

In This Edition
Could this be the #1 reason to use index funds?
Latest Podcast/Video
Testimonial
Latest MarketWatch Article

In December 2019 I was about to record a short podcast to wish everyone Happy Holidays but instead recorded a podcast entitled, "Could this be the #1 reason to use index funds?" It has had over a million opens.

I would love to improve on that record. I’m working on a piece entitled, “Could this be the #1 reason most investors fail in the long term?” What do you think? Send me your best idea: High expenses? Too much in bonds? Take too much risk?

My intent is to make a list and do my best at judging which of the many common and uncommon mistakes keep us from getting the return we deserve.

Thanks for your help. My hope is this article/podcast will help a lot of investors defend themselves from having something bad happen to them.

Latest Podcast/Video- Configurators, Returns and Risks, and 2 Thumbs Up Movie Review

Paul, Chris, and Daryl are back together for the first time in 2024. The podcast starts with Chris demonstrating a new and improved ⁠Portfolio Configurator⁠, which adds the 2 Funds for Life portfolios. Now, investors can see how the equity portion of ⁠Sound Investing Portfolios⁠, like the ⁠Ultimate Buy and Hold⁠ or ⁠Four Fund Combos⁠, compare to various 2 Funds for Life approaches.

Next, they discuss the question "Which backtested portfolio has the highest return per unit of risk, and shouldn't we all be using that one?" Daryl uses ⁠Table H2⁠, and Chris uses the 2 Funds for Life Fine Tuning Table to point out various ways investors might define risk and try to find the portfolio with the best return per unit of risk.

The podcast closes with some thoughts on 2024, and requests for feedback on the new⁠ Portfolio Configurator.⁠ Chris, Daryl and Paul also comment on the new documentary, ⁠“Turn Off the Noise.” ⁠This ⁠documentary⁠ is available free through the end of the month. You will be asked to fill in a few pieces of information and use the Access Code: RATIONAL This offer only extends through January 31, 2024

⁠Watch the video of this podcast here⁠.

Testimonial

Hi Paul,

I watched the Dimensional Funds documentary and I have to agree, it is fantastic. It’s truly inspiring and it has reinforced the magnificent work that you, Chris, Daryl and the team are doing.

I’m also loving the podcasts , news letters and videos you are doing. I never miss one, and look forward to them every week.

I’m sharing everything you are teaching with anyone who will listen.

Keep up the great work!

C.J.

Latest MarketWatch article- Which is better, a cap-weighted or equal-weighted S&P 500 fund?

If you own a S&P 500 fund, here’s what’s happening: Either you’re massively bulking up on a relatively small number of giant companies or you are investing as if the fortunes of U-Haul (to pick a company at random) and Microsoft are equally important to your financial future.

Most likely, you’re doing the former, because almost all S&P 500 funds are cap-weighted, meaning that companies with high total market value make much more difference than smaller companies.

For example, a cap-weighted S&P 500 fund owns about 200 times as much Microsoft MSFT (total market cap = $2.8 trillion) as it does U-Haul UHAL (total market cap = $13.8 billion).

If you own an equal-weighted fund, you own just as much stock in U-Haul as you do in Microsoft — and in every other stock in the S&P 500.

What’s the big deal? Read more here.

Which is better, a cap-weighted or equal-weighted S&P 500 fund?

Configurators, Returns and Risks, and 2 Thumbs Up Movie Review

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In This EditionCould this be the #1 reason to use index funds?Latest Podcast/VideoTestimonialLatest MarketWatch Article

In This Edition
Could this be the #1 reason to use index funds?
Latest Podcast/Video
Testimonial
Latest MarketWatch Article

Going for a personal best!