Sound Investing

Paul Merriman
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Weekly podcasts with Paul Merriman. Strategic planning for investing at every stage of life.

  1. Boot Camp #2: The Ultimate Buy & Hold Portfolio

    2 DAYS AGO

    Boot Camp #2: The Ultimate Buy & Hold Portfolio

    In this second session of our 10-part Boot Camp series, we dive into the piece that’s helped shape decades of investing decisions: The Ultimate Buy & Hold Portfolio. For nearly 30 years, this research—co-created with the late Rich Buck—has explored a simple but powerful question: What happens when you go beyond the S&P 500 and build a lifetime portfolio across 10 equity asset classes? Starting with data back to 1970, we walk through the math of compounding, diversification, and disciplined rebalancing. You’ll see how adding small amounts of large value, small cap, REITs, international equities, and emerging markets historically increased returns—without meaningfully increasing risk. The result? A dramatic difference over time, powered by patience and structure. Whether you’re new to these concepts or have followed this work for years, this episode breaks down the numbers, the lessons, and the real-world implications for long-term investors. This recording is also a tribute to Rich Buck—an extraordinary collaborator whose work on this topic has reached millions of investors. Download the tables and watch the video, follow along, and join us as we revisit one of the most impactful investing frameworks we’ve ever created—and set the stage for next week’s deep dive into the Sound Investing portfolios.

    34 min
  2. Stocks vs Bonds: The $10 Million Decision | Stocks and Bonds

    4 FEB

    Stocks vs Bonds: The $10 Million Decision | Stocks and Bonds

    What if small decisions — just a half-percent here or an extra year there — could change your financial future by millions? In this episode, we continue our annual Boot Camp series by tackling one of the biggest forks in the road investors face: stocks and bonds. Drawing on nearly a century of academic research and data, we break down what the math actually tells us about compounding, risk, diversification, and long-term returns. You’ll hear why: Tiny differences in returns can mean millions over a lifetime Bonds are designed for safety — not wealth creation Equity asset classes behave very differently from year to year Diversification across asset classes smooths volatility and improves outcomes Trying to “pick winners” is a losing game — and why owning the whole market works This episode is educational, not personal advice — think of it as a roadmap that helps you ask better questions and make more informed decisions.  Important: The tables and charts referenced in this episode are available in the PDF. Watching the companion video will make these concepts even clearer. If you care about making smarter long-term decisions for yourself and your family — this is one to share.

    38 min
  3. A Surprise, a Big Thank You, and What’s Coming Next

    28 JAN

    A Surprise, a Big Thank You, and What’s Coming Next

    Sometimes the best moments are the unexpected ones. This week brought one of those moments when Daryl Bahls delivered an extraordinary surprise: access to every table used across our entire investing Boot Camp Series — months of work, ready ahead of schedule. That gift makes it possible to move forward faster, including setting up pages for the upcoming Series and potentially releasing the tables before all the podcasts and articles are complete. The White Coat Investor: 150+ Portfolios That Work We revisit the White Coat Investor article “150 Portfolios Better Than Yours” (now over 200 portfolios), originally published in 2014. The key lesson:There is no single “best” portfolio — most of the portfolios are legitimate and effective. What matters most is: Choosing a sound portfolio Understanding why it works Staying the course over decades Early success can be misleading, but the portfolio you choose in the beginning can mean millions of dollars more in the long-term. Why Portfolio Design Matters So Much Using historical data going back to 1970, we explore how different strategies produce dramatically different outcomes over time: S&P 500 only vs. globally diversified portfolios Multi–asset-class investing Value-focused portfolios (U.S. and international) Even small starting amounts can lead to large differences over a lifetime. What We Do — and What We Don’t Do To Help Investors  We are: Focused on education Dedicated to do-it-yourself investors Grounded in academic research and evidence-based investing We are not: Financial planners Estate planners Tax advisors Our goal is to help investors build portfolios they can trust through good markets and bad — with the potential to land in the top 5–10% of long-term outcomes. Preview: The 10-Part Boot Camp Series Over the coming weeks, we’ll release a comprehensive boot camp covering: Stocks vs. Bonds — why this decision alone can be a $10 million difference Equity Asset Class Selection — based on academic research, not trends Simple Sound Investing Portfolios — small, powerful, manageable Adding Bonds Intelligently — controlling risk without killing returns Long-Term Contributions — what steady investing really looks like Fixed Withdrawal Strategies — taking distributions when you retire with only "enough" Flexible Withdrawal Strategies — especially for those who’ve oversaved Target-Date Funds & Glide Paths — with added diversification insights ETF Selection — why DFA and Avantis may help investors stay the course Investing for Children & Newborns — including new retirement account considerations Each topic will eventually include: A podcast episode A written article Supporting data tables Daryl has now produced 247 educational tables, all designed to support smarter portfolio decisions.  You will see all of them during the 10 week series.

    25 min
  4. Better Than VTSAX, Choosing Asset Allocation, Target Date Funds, Protecting Against Scams, and More

    21 JAN

    Better Than VTSAX, Choosing Asset Allocation, Target Date Funds, Protecting Against Scams, and More

    Upcoming Event + What’s New Before jumping into today’s questions—there are some good ones—I want to share a quick note. I’ll be at the Annual RetireMeet on March 7 in Bellevue at the Maidenbauer Building. I’ll be there all day at the booth and will be discussing the inside story on diversification, including new thinking on rebalancing that I believe you’ll find useful. Christine Benz —HOW TO RETIRE Don McDonald — RETIREMENT EVOLUTION: FROM NONE TO FUN Tom C**k — RETIREMENT INCOME: THE 4% RULE & BEYOND Kevin Peterson — GETTING THE MOST FROM MEDICARE Joe Saul-Sehy — COMMON MISTAKES THAT MAKE RETIREMENT MISERABLE The event is available in person and online. In-person attendees receive lunch. Online attendees pay a small fee that supports nonprofits focused on financial education. I also spent time this week with Daryl Balls, working on updates to the quilt charts and new tables. We’re excited to share those soon, along with the next Boot Camp series, starting later this month. Questions of the Day How can I avoid getting scammed by a bad financial advisor? 04:03How can my parents decide when to start Social Security? 07:08How do I identify my target asset allocation if I am 41 and plan to retire at 65, taking Social Security at 70 and with a pension? 08:47Can you help me build a sample asset allocation? 11:46What should I learn first to understand asset allocation? 14:10How do target date funds fit into asset allocation? 17:42How does VTSAX fit into this strategy? 17:04My 401(k) only offers Vanguard Total Market, Mid-Cap Index, and Small-Cap Index. Can I build a good portfolio? 20:40If I’m contributing monthly, should I rebalance using contributions or make separate trades? 27:59I have a closed 401(k) with a target date 2050 fund. Is that a good core holding? 28:50A Final Thought I recently spoke with an investor who realized they didn’t need to draw from their investments at all, thanks to Social Security and a pension—even with nearly $2 million invested. When you don’t need the money, you get to choose your medicine—aggressive or conservative. We’re excited about the upcoming Boot Camp, new tables, and educational tools. If we can do a better job teaching, our hope is that you’ll do a better job investing—for yourselves and for those who count on you.  Links Mentioned in This Episode Investor Education ⁠Get Smart or Get Screwed ⁠Truth Tellers – Social Security ⁠Social Security Made Simple⁠ by Mike Piper⁠Mike Piper⁠ – Oblivious Investor When to Take Social Security: Pros & Cons – Jim Dahle (White Coat Investor)⁠https://www.whitecoatinvestor.com/when-to-take-social-security-a-pro-con/⁠Asset Allocation & Target Date Funds ⁠Two Funds for Life ⁠– Chris Pedersen⁠Sound Investing Portfolio Series⁠ (Boot Camp – prior year)⁠Ultimate Buy & Hold Strategy⁠⁠Fine-Tuning Your Asset Allocation⁠Event ⁠Annual RetireMeet – Bellevue (March 7)⁠Research & Tools ⁠Quilt Charts and Tables (Paul Merriman / Daryl Balls)⁠

    35 min
  5. Sound Investing Q&A: ETFs, Portfolios, Risk, and Retirement

    14 JAN

    Sound Investing Q&A: ETFs, Portfolios, Risk, and Retirement

    In this week’s Sound Investing episode, Paul Merriman answers a wide-ranging set of listener questions — from choosing ETFs and building portfolios to managing risk in retirement and investing wisely at every age. One of the biggest takeaways? There is no universally “best” ETF or portfolio. The right answer depends on your goals, risk tolerance, time horizon, and — just as importantly — your ability to stick with a strategy during difficult markets. Here are some of the highlights from the episode: What’s the “best ETF”?Paul explains that for simple exposure (like the S&P 500), the lowest-cost option often wins. But once you move into areas like small-cap value or factor investing, fund construction and index methodology matter far more than expense ratios alone. Single-fund vs. DIY portfoliosPaul compares all-in-one solutions like AVGV (Avantis All-World Value ETF) with building the same asset classes yourself. While a DIY approach can sometimes produce higher returns, it also requires discipline and comfort with tracking and rebalancing multiple funds. Portfolios for different stages of life Younger investors (30s): Paul favors all-equity portfolios for long time horizons, assuming the investor can tolerate volatility. Pre-retirees and retirees: The focus shifts to managing downside risk, withdrawal rates, and behavioral comfort — not maximizing returns at all costs. Retirement withdrawals and sequence riskUsing historical examples starting in 1970, Paul shows how withdrawal rates (4%, 5%, 6%) and portfolio composition can mean the difference between ending with millions — or running out of money entirely. Mutual funds vs. ETFsETFs have become more tax-efficient, more flexible, and easier to trade — making them ideal for the smaller, diversified portfolios Sound Investing now recommends. How to self-manage a portfolioPaul walks through how to: Choose equity asset classes Use best-in-class ETF recommendations Rebalance intelligently Invest weekly without overcomplicating the process Resources mentioned in the episode: Sound Investing Boot Camphttps://paulmerriman.com/bootcamp/ Ultimate Buy & Hold Portfoliohttps://paulmerriman.com/ultimate-buy-and-hold-portfolio/ 2025 Sound Investing Portfolioshttps://paulmerriman.com/sound-investing-portfolios/ Avantis Investors & AVGVhttps://www.avantisinvestors.com/ Morningstar Fund Comparison Toolshttps://www.morningstar.com/ Ben Felix (Canadian investing insights)https://www.pwlcapital.com/profile/benjamin-felix/ REIT background and tax considerationshttps://en.wikipedia.org/wiki/Real_estate_investment_trust Paul closes the episode with a reminder that diversification means always owning some underperformers — and that’s not a flaw, it’s the price of long-term success. Thanks for listening, and we’ll see you next week.

    50 min
  6. What 2025 Taught Us About Investing (And Why “Normal” Matters)

    7 JAN

    What 2025 Taught Us About Investing (And Why “Normal” Matters)

    For first-time listeners, welcome! In this opening episode of the year, Paul Merriman—founder of the Merriman Financial Education Foundation—looks back at 2025 to uncover what the markets taught us and how those lessons can help do-it-yourself investors make better decisions going forward. Despite endless predictions about what markets should do, Paul reminds us that his role isn’t to forecast the future—but to help investors understand risk, return, and how to build portfolios they can truly stick with. In this episode, Paul explores: A surprising result from the “Magnificent Seven” stocks Why diversification mattered more than ever in 2025 How different equity asset classes really performed What 56 years of data (1970–2026) tells us about staying the course Why portfolio structure matters far more than chasing winners Two very different—but valid—approaches to fixed income investing If you want perspective instead of predictions—and data instead of hype—this episode is a powerful way to start the year.

    39 min
  7. Pediheart Podcast #366: A Focus On Financial Health With Mr. Paul Merriman

    31/12/2025

    Pediheart Podcast #366: A Focus On Financial Health With Mr. Paul Merriman

    The following are Dr. Pass’ note to his podcast: This week we end 2025 with a Pediheart tradition - an episode on personal finance for medical professionals with noted authority on index investing and personal finance, Mr. Paul Merriman. Paul is a retired investment advisor who now has a popular podcast "Sound Investing" and website in which he offers advice on investing for 'do it yourself' investors. In this week's episode, the 5th of his visits to Pediheart, Mr. Merriman discusses 'factor investing' via index-like ETF's and funds. He also reviews who he believes might benefit from a financial advisor, what sort of advisor most should seek out and why he believes that many do not need one if they can 'stay the course'. Resources mentioned in today's podcast are below. Wishing all a happy and healthy new year in 2026. Paul's website:https://www.paulmerriman.com/#gsc.tab=0'Best In Class' ETF's:https://www.paulmerriman.com/Best-in-Class-ETF-Recommendations2025#gsc.tab=0Sound Investing 'Quilt Charts':https://irp.cdn-website.com/6b78c197/files/uploaded/(K)_Quilt_Charts_(1928-2024)_-_2024_Returns_(1).pdfDFA 'Turn Out The Noise':https://www.dimensional.com/filmAs a reminder, all of the information provided in this week's episode should be considered entertainment and all financial decisions should be vetted with professionals or knowledgeable and trusted friends/family.

    43 min
  8. The Importance of Keeping Investing Simple!

    24/12/2025

    The Importance of Keeping Investing Simple!

    In this episode, Paul shares the thinking behind what he believes may be one of the most important projects of his career—a project guided by a single goal: That every investor who follows our work will know how to invest for the rest of their life. To explain why that goal matters, Paul walks through the forks in the road every investor eventually faces—from betting on individual companies to owning entire markets, from chasing excitement to embracing simplicity. Drawing on real experiences, including private investments that went to zero and one that unexpectedly turned into millions, Paul explains why diversification beats prediction, how a simple portfolio decision may quietly add about 1% a year over time, and why many academics draw a clear line between investing and speculation. This episode isn’t about chasing returns. It’s about building a plan you can live with—through good markets and bad—for the rest of your life. If you’re looking for clarity, discipline, and a framework that helps you stay the course, this conversation is a powerful place to start. Next week, I’ll be reviewing what we learned in 2025—and what those lessons may mean for 2026 and beyond. Thank you, and happy holidays to you and your family.

    20 min
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About

Weekly podcasts with Paul Merriman. Strategic planning for investing at every stage of life.

Information

  • Creator
    Paul Merriman
  • Years Active
    2019 - 2026
  • Episodes
    532
  • Rating
    Clean
  • Copyright
    © Paul Merriman
  • Show Website
    Sound Investing

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