“If I could buy a five-year put on every one of the cryptocurrencies, I’d be glad to do it, but I would never short a dime’s worth.” Warren Buffett

"For me, doing is at the core of it. If you've done something with what you've learned, then maybe you know it." - Seth Godin

In This Edition
The Evolution of Financial Advice
One of My Heroes: Larry Swedroe
Latest Podcast

I think one of the best services we provide is a list of industry “teachers” who we believe are doing a fantastic job of helping do it yourself investors take the right steps. We call them Truth Tellers. It is very important that we understand that their "truth” is about the past, not the future. In fact, I know everyone on the list will be quick to point out that the future is much more difficult to know.

"The Evolution of Financial Advice" by Ben Carlson is a great example to the kind of information that can make you a better do it yourself investor. A short 5 to 10 minute read of Ben’s article includes an overview of the period I have experienced, (1963-2024) and can be used as an important background for the information we provide.

My podcast, next week, will use this article as the backdrop for a discussion of what this all means regarding your financial future.

Your financial future will someday be part of this history and my goal is to do all we can to make sure you use this information to help you reach your personal financial goals.

I hope you will join me next week for one the most important podcasts I will ever record.

One of My Heroes: Larry Swedroe

For almost 40 years I have considered Larry Swedroe one of the most important educators in the financial literacy movement. He has written serious investment books based on the most important financial academic research. Some of those books are written for readers (think engineers) who want to focus on the numbers. Other books are focused on the stories that will appeal to those that are struggling with the emotions of investment decisions.

Larry has a reputation for answering every question investors send him. I can’t say that is true but I do know when I asked him to record something special for our Western Washington University Alums he immediately said “count me in.”

I think many of you who are struggling with cleaning up your portfolio will find his video helpful.

Latest Podcast- The Biggest Mistake Investors Make

What’s the single biggest mistake investors make? It’s not starting too late, saving too little, or even chasing hot stocks—it’s trusting the wrong advice. Too often, investors are told there’s only one “right” path: stay 100% in equities for life. Nick Murray, for example, argues it’s an “atrocity” to shift into bonds in retirement because equities historically return 7% after inflation compared to 3% for bonds. Why would anyone add bonds, even in retirement?

History offers the answer. Stocks do outperform bonds long term, but they also suffer brutal declines. A retiree who entered the market in the mid-1960s, or one who bought technology stocks in 2000, endured losses of 50–80% and often waited decades to recover. That kind of drawdown can be devastating when you’re living off savings. This is why many investors embrace balance: the classic 60/40 portfolio has historically delivered about 85% of the S&P 500’s return with roughly one-third less risk.

So how is diversification working today? In 2025, the Ultimate Buy and Hold Portfolio—Paul Merriman’s all-equity mix of U.S. and international asset classes—has delivered an impressive 18% so far this year, with international value and small-cap stocks leading the way. But past returns are only part of the lesson. The real takeaway is that chasing recent winners isn’t a strategy—it’s recency bias. Diversification remains the most reliable tool for long-term investors.

That brings us to another timeless question: how much Small Cap Value should an investor add to VTSAX (Total Market Index)? Research shows that allocating 20–30% of equities to Small Cap Value has historically boosted returns by about 1% per year. Over decades, that extra percentage can mean retiring earlier, protecting against running out of money, or leaving a larger legacy. But it comes with higher volatility—small-cap value funds fall harder in downturns, even if they often recover stronger.

Ultimately, successful investing isn’t about finding one perfect asset class. It’s about balancing growth, risk, and peace of mind. Some investors can handle the rollercoaster of an all-equity portfolio. Many others need the stability that bonds, balanced funds, and broader diversification provide. The key is knowing yourself, your goals, and your tolerance for loss—because the biggest mistake isn’t owning the wrong fund. It’s building a portfolio that doesn’t let you sleep at night.

During the podcast Paul references ⁠Table G-1b, Fine Tuning Table: S&P 500 vs. US SCV Equity Porfolio - Out-Performance⁠ and ⁠Table H2a - Sound Investing Portfolios: Comparison Data ⁠, Quilt Chart K1a. He also points to Chris Pedersen’s Best In Class ETF Recommendations and his 2 Funds for Life returns table. These resources provide valuable context for comparing U.S. vs. international returns, equity vs. bond allocations, and how small-cap value can enhance a long-term strategy.

The Biggest Mistake Investors Make

What to do when an investment strategy performs poorly- Larry Swedroe

How to retire with more money and greater peace of mind

In This EditionThe Evolution of Financial AdviceOne of My Heroes: Larry SwedroeLatest Podcast

In This Edition
The Evolution of Financial Advice
One of My Heroes: Larry Swedroe
Latest Podcast

The Future of Successful Investing