"Money talks—but if you’re financially literate, you’ll know when it’s lying.”

Paul Merriman with help from ChatGPT

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Garrett Planning Network Retreat
Latest MarketWatch Article
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Testimonial

I am very excited to be attending the Garrett Planning Network Retreat later this month. I feel honored to be asked to speak to the group but I’m thrilled to have the opportunity to speak with a bunch of dedicated hourly advisors. If you have a burning question you would like me to ask, please let me know. My burning question is, “Will you give advice to investors who follow our portfolios?”

Ben Carlson just published a wonderful piece that I think you will find of interest. I think it does a wonderful job of relating history off new products with the financial literacy gains that have moved in favor of the individual investor.

And I recommend you also read The Evolution of Financial Advice.

There is no doubt in my mind, we are in the Golden Age of Investing. Now how do we keep that advantage for the rest of our life? I hope you find our work, and the work of our Truth Tellers helpful.

Latest MarketWatch Article: The best ways to invest in stock funds

Sometimes I’m accused of offering investors too many choices for the stock portion of their portfolios. Some authors stick to just one plan that they maintain is adequate for almost everyone.

Personally, I don’t believe one size fits everybody. Nor do I believe choosing a stock portfolio should be overly difficult.

In this installment in a series of Investor Boot Camp 2025. I’ll offer you several worthwhile alternatives for your stock funds, everything from very simple to overly complex.

And then I’ll help you choose.

I want to back up for a moment and reiterate something I emphasized in a previous Boot Camp 2025 installment: Whatever else you do, be sure and manage your risk by choosing an appropriate mix of stock funds and bond funds. Read Article.

Latest Podcast: 11 Q&A-Bonds, Rebalancing, All Value, Vanguard vs. Avantis & DFA

Many of you have been submitting thoughtful questions through our AI chat, particularly on fund selection, asset allocation, and broader investment strategy. It’s encouraging to see this level of engagement with the core principles that shape long-term financial success.

While the AI generally provides sound and efficient guidance, there are times when its responses lack the nuance or clarity that experience can bring. To provide deeper context and help you make more informed decisions, I’ve selected several recent questions to address—drawing from the AI’s suggestions where appropriate and adding insights based on decades of research and practice.

One brief correction from a recent update: I previously mentioned a resource for ETF investors in Canada, Europe, and the U.S., but misspoke on the name. The correct website is ETFAtlas.com. Jack Lempart, the developer behind it, is creating a valuable tool for globally minded investors. Your candid feedback—what’s working well and what could be improved—will be essential as he continues building out the platform. Look for additional features to roll out in the months ahead.

Your Top Questions Answered

Let's jump right into what's on your mind.

What Sound Investing Portfolio does Paul use and why? You know I love talking about this, and for those who aren't familiar, you can find all our "Sound Investing" portfolios on Table H2A on our website. You'll see how different portfolios compare in terms of risk and return over decades—it's pretty eye-opening! I'll be sharing what I personally do, and why I like massive diversification. It's not about hitting a home run for me; it's about being prepared for the long haul. 3:02
What funds should I use to set up a Roth IRA account for a 21-year-old? This is a fantastic question, and it really comes down to how involved this young person wants to be. We'll explore options from simple target-date funds to more aggressive two-fund strategies. I've got a great story about how I set up an account for my own grandchild to be a long-term learning lesson. 13:06
Do you think Vanguard funds will get lower returns than Avantis and DFA ETFs? Ah, the classic index versus "non-traditional" index debate! There's a lot to unpack here regarding how these funds are constructed and what their long-term performance has shown. We'll look at the differences and what that could mean for your returns. 21:46
Is there a table that represents using the S&P 500 and Aggregate U.S. Bond Index rather than your 3-fund bond portfolio? You're looking for specifics on bond allocations, and yes, we have a ton of tables that slice and dice this. While our three-fund bond strategy is great, we can certainly see the impact of using the Aggregate U.S. Bond Index instead and what that might mean for your risk and return. 26:51
I am 45, hoping to retire by 55-60. Is 25% in bonds too little? This is a question many people face as they get closer to retirement. The "right" answer depends on a lot of factors, like your overall portfolio size and spending needs. We'll talk about what to consider when deciding on your bond allocation for that critical decade leading up to retirement. 31:04
Does it make sense to have non-taxable bonds in an IRA? This one is usually a straightforward "no" for most do-it-yourself investors. 34:34
Your quilt chart (1928-2024) shows a 2-fund portfolio with 50% each small cap value and large cap value. Isn’t that too much in small cap value? It might seem like it, but when you dig into the historical data, this combination often shows surprisingly similar risk to more conservative portfolios, but with potentially much higher returns. You can actually see this graphically in our Quilt charts K6a and K7a. 35:39
How often should I rebalance? There are so many rebalancing strategies out there! We'll talk about what the research is showing regarding annual, biennial, or even less frequent rebalancing, especially for the equity portion of your portfolio when you're still accumulating wealth. You might be surprised by how little you need to "fool around" with it. 38:09
In your podcasts you talk a lot more about the 4-fund portfolios (WW and U.S.) than you do the all-value portfolios. The all-values have higher returns but you recommend them less often. Why? This gets right to the heart of human nature and sticking with your plan. While all-value portfolios have shown higher returns historically, they can be a real test of discipline during long periods of underperformance. You can see this interplay on our Quilt Chart of U.S. Only 4-Fund Portfolios. We'll discuss why belief in your portfolio is paramount. 40:19
Are there conditions where the all-value portfolios will underperform the more balanced portfolios? Absolutely. History shows us that no single strategy wins all the time. We'll look at past periods where value has struggled relative to other asset classes and what that means for investors. 40:19. (Answer is integrated with previous question)
I’m 57. How much should I have in bonds? This is a common question, and while there are general rules of thumb like "your age in bonds," it really depends on your personal risk tolerance, your financial goals (including what you want to leave to others), and how much money you have relative to your living expenses. Sometimes, talking with an hourly advisor can be incredibly helpful here. 49:30

Thanks for tuning in and sending in your questions. It really helps me figure out what's on your mind. If you find this helpful, please share it with others, and consider leaving a comment or review wherever you get your podcasts. You can always reach me at Paul@PaulMerriman.com if something's on your mind. We're here to help you build a better financial future!

Testimonial

"Thank you Mr. Merriman. I love your work, really. It has had a profound impact on my investing education!" Mark

11 Q&A-Bonds, Rebalancing, All Value, Vanguard vs. Avantis & DFA

June Q&A with Paul, Chris and Daryl

The best ways to invest in stock funds

In This Edition Garrett Planning Network Retreat Latest MarketWatch ArticleLatest PodcastTestimonial

In This Edition
Garrett Planning Network Retreat
Latest MarketWatch Article
Latest Podcast
Testimonial

Finding your personal best asset allocation