Sound Investing

Paul Merriman
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Sound Investing

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

  1. Interview with Brian Barnes, Founder and CEO of M1 Finance

    20 NOV

    Interview with Brian Barnes, Founder and CEO of M1 Finance

    Paul and Chris interview M1 Finance's CEO, Brian Barnes, and ask several listener questions. This is the follow-up to their previous M1 Finance 2024 update podcast and YouTube video.   They start by asking Brian how and why he created the company. That's followed by a wide-ranging conversation that includes some interesting surprises, like Chris's realization that using M1's target-date pies instead of traditional target-date funds can result in some real tax efficiency. Here's the topic list with time codes. 00:00:00 Intro 00:08:12 M1 Genesis 00:12:51 Partial-Share ETF Trading 00:15:59 Who is M1 for?00:19:42 What's next? 00:22:44 Is M1 a robo-advisor?   00:25:36 M1 Pies 00:29:38 Pies vs. TDFs00:34:32 Tax Efficiency 00:35:46 How safe is M1? 00:41:13 Fixed trade windows 00:48:07 Crossing orders 00:49:22 Competitive rates 00:51:29 Which ETFs? 00:53:19 Fees? 00:57:07 Multi-account rebalancing? 00:58:31 Entrepreneur's experienceDisclaimers:Content is not intended to provide personal tax or financial advice. This information is intended to be used and must be used for information purposes only. M1 is a technology company offering a range of financial products and services. “M1” refers to M1 Holdings Inc., and its wholly-owned, separate affiliates M1 Finance LLC, M1 Spend LLC, and M1 Digital LLC. Related to M1 Spend: For informational purposes only and not a trade recommendation. All product and company names are trademarks or registered trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

    1h 3m
  2. Can we count on AVUV high performance in the future?

    13 NOV

    Can we count on AVUV high performance in the future?

    Paul mentions his upcoming presentation to the ⁠⁠L.A. Chapter of AAII⁠⁠ on November 16, 2024    10:30 to noon. Chris Pedersen and Daryl Bahls join Paul to answer your questions.  Paul opens the podcast with a brief introduction of the team and notes how thankful he is for their commitment to helping others. Paul mentions the huge moves small cap value funds made on November 6.  He follows that with a comparison of the 5 year returns of AVUV and  3 Vanguard small cap value funds (VBR, VIOV and VTWV).  AVUV compound rate of returns were 3 plus percent higher than the Vanguard funds.  Paul’s questions:  What caused the higher returns and are they likely to be similar in the future? Chris responds with a lengthy discussion of the systematic approach that AVUV uses and Paul reads what AVUV says about their systematic approach. Chris compares the DFA small cap value fund (DFSV) with AVUV.  Chris also talks about a relative ranking he wants add to his Best In Class recommendations next year. Chris discusses the quality factor of AVUV vs. funds that build their small cap value portfolio using the Russell 2000 Small Cap Value Index.  He introduced a new term: rich minus weak ratio.Paul and Chris discuss the question:  Is AVUV and actively managed fund? Question:  JL Collins recommends VTI (Total Market Index) and Warren Buffett recommends VOO (S&P 500).  Which do we recommend?  Chris notes the important differences between VTI and AVUS and suggests a likely extra .5% return from AVUS. For those who want to own only total market funds, the group discusses the possibilities of replacing both VIT(U.S. Total Market)  and  VXUS (International Total Market) with total market indexes that favor slightly smaller companies with a slightly more value tilt. Paul references Ben Carlson’s article about, ⁠⁠“Some Things I Don’t Believe About Investing.”⁠⁠  Chris, Daryl and Paul weigh in on things they don’t believe about investing.Chris ends with some important comments about how we are likely helping investors. Watch video here.

    54 min
  3. Selecting the best small cap value, gold and the challenges of buy and hold

    6 NOV

    Selecting the best small cap value, gold and the challenges of buy and hold

    On November 16, 2024 Paul will speak to the L.A. Chapter of AAII via a Zoom presentation.  Here is the link:   2 Funds to Own Forever, and How to Invest in Small Caps In this podcast Paul addresses 4 major considerations when selecting a small cap value ETF.  His discussion compares the returns, along with 4 major factors, for AVUV, VBR, VB,, VIOV, DFSVX and DFSV. Is gold worthy of a place in our portfolios?  Probably not but Paul talks about his gold position and why bonds are likely a lot better. He also discusses the important decision to choose buy and hold over market timing.  He references the following article from Truth Teller Ben Carlson: Don’t Take Financial Advice From Hedge Fund Managers

    51 min
  4. The 4-Fund Strategy That Beats the S&P 500

    30 OCT

    The 4-Fund Strategy That Beats the S&P 500

    Watch the video here.Paul Merriman, a former wealth manager turned financial educator, joins us to share investing wisdom that could reshape how you think about your money. We kick things off talking about portfolio diversification. Paul suggests a simple four-fund strategy that includes large cap, small cap, and value stocks. He says this mix has historically beaten the S&P 500 with lower risk. We then dive into international investing. Paul explains that while adding international stocks doesn't necessarily boost returns, it can help smooth out the ride. He keeps half his equity portfolio in international stocks, even at age 81. Got kids? Paul's got some advice for you too. He tells us about putting money aside for his new granddaughter, aiming to fund her Roth IRA as soon as she can earn income. He breaks down how investing just a dollar a day from birth to age 21 could turn into millions by retirement age. It's a powerful lesson in starting early and the magic of compound interest. We also chat about some common investing mistakes. Paul stresses that young investors often underestimate the power of stocks over bonds for long-term growth. He shares some eye-opening numbers: $100 invested in bonds since 1928 would have grown to about $12,000, while the same amount in small cap value stocks would be worth nearly $15 million. Paul wants you to think of investing as a partnership with businesses. When you buy a mutual fund, you're becoming a senior partner in thousands of companies. At first, your contributions drive most of the growth. But over time, market returns take over, and you become the junior partner to a much larger fortune. We wrap up with Paul sharing his excitement about a 40-hour financial education program he helped create at Western Washington University. It's designed to teach students essential money skills throughout their college years, from budgeting as freshmen to understanding 401(k)s as seniors. Throughout our chat, Paul's message is clear: start early, stay diversified, and think long-term. He believes that with the right education and mindset, anyone can build a solid financial future. 4 Fund Combo Guide Table Numbers Quilt Charts Historical Risk and Return Tables Portfolio Configurator Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. 0:00 Intro to Paul Merriman and podcast topic 0:57 Two-fund portfolio strategy 3:55 Four-fund portfolio strategy explained 5:31 Large cap performance concerns 7:06 S&P 500 vs Total Market Index 10:59 AI impact on large companies 14:43 Market trends and historical performance 20:41 International equity in portfolios 25:26 ETFs vs index funds 29:41 Non-US investor asset allocation 38:41 Setting up kids financially 43:57 Early investing importance 48:37 Common investor mistakes 50:25 Investing as business partnership 52:51 Evolving financial education landscape For more information visit the show notes- https://affordanything.com/550-paul-merriman-the-4-fund-strategy-that-beats-the-sp-500/

    59 min
  5. Paul Merriman: Millionaire Index Fund Investing Portfolios

    23 OCT

    Paul Merriman: Millionaire Index Fund Investing Portfolios

    The Marriage Kids and Money Podcast is dedicated to helping you do just that. Each week, Andy Hill interviews personal finance experts, millionaire parents and financially independent couples to find out how they achieved their success. He then takes that information and breaks it down into digestible takeaways that will help you win with money. With over 400 episodes and counting, Marriage Kids and Money has been awarded “Best Family Finance Content” by Plutus two years in a row and "Content Creator of the Year". We review everything from how to achieve family financial independence to how to help your kids become future millionaires (who are generous). Paul Merriman shares how DIY investors could become millionaires through a 2 Fund Portfolio and/or 4 Fund Portfolio! GUEST BIO - Paul Merriman When I sold my investment advisory practice, I founded a financial education foundation designed to help do-it-yourself investors of all ages improve their investment returns, at less risk and with greater peace of mind. I am the author of 8 books including "We're Talking Millions! 12 Simple Ways to Supercharge Your Retirement." ⁠Watch the video here.⁠

    44 min
  6. Morningstar How-To with Paul and Chris

    16 OCT

    Morningstar How-To with Paul and Chris

    Investors need to get past marketing and sales pitches to know what they're getting when they invest.  Morningstar is a great place to get that depth. Paul and Chris describe how they each use the free Morningstar tools to evaluate mutual fund and ETF characteristics, such as: * Expense ratios * Liquidity and bid/ask spreads * Geographic focus * Value and size tilts * Financial characteristics * Factor exposures * Number of holdings * Tax efficiency and* Charted historical performance with side-by-side comparisons. Chris also briefly describes how he uses the premium X-Ray feature to compare portfolios with different fund families, including the Best-in-Class ETFs, which he plans to update early next year. For those interested in a more quantitative approach, please take a look at the Bootcamp video Chris created for the Best-in-Class ETF selection process, where he describes how he uses Portfolio Visualizer to quantify fund factor exposures and factor statistics to estimate expected returns.  Here's a link to that video at the time where the Portfolio Visualizer discussion begins:  ⁠https://youtu.be/UaEC-JZYYJA?t=852⁠ Here is the video link for this podcast. https://www.youtube.com/watch?v=rDN3LyEFk3E

    51 min
  7. The Magic of Indexing

    9 OCT

    The Magic of Indexing

    Paul updates his list of reasons to use index funds plus comparing the handful of Vanguard Small Cap Value ETFs (VTWV, SLYV, VBR AND VIOV) with the newer Avantis and DFA small cap value ETFs.  He also makes the case that AVUS and DFAU total market funds are likely to produce better returns than VTSAX, VTI, VOO AND VFINX. He also discusses the 15 year returns of 6 each large cap growth, large cap value, small cap blend, small cap growth and small cap value indexes.  The lessons from these tables should be enough to encourage investors to take a closer look at the holdings in their holdings in these asset classes.   In his discussion of indexing he mentions a podcast "#1 reason to own index funds " that has had more than 1,067,000 opens and his MarketWatch article entitled “30 Reasons I Love Index Funds.” He also committed to producing a video, on how to use Morningstar to compare your mutual fund and ETF investments, before the end of the year.

    49 min
  8. M1 Finance Updated 2024

    2 OCT

    M1 Finance Updated 2024

    Chris & Paul walk through the changes to The Merriman Financial Education Foundation’s relationship with M1 Finance, including affiliate commissions, a new emphasis on accurate messaging, and improved pre-made portfolio shortcuts (M1 calls them Pies). The new Pies now include all of our Sound Investing equity portfolios, taxable and tax-deferred fixed-income portfolios, and 5-year increments of the Merriman Aggressive Target-Date Glide Path allocations.  Chris shows how easy it is to mix them to get the equity and fixed income ratio you want.  He also shows how to approximate intermediate years along the target-date glide path.  Finally, Paul challenges him to create a mix of several different equity strategies, which he demonstrates. Following the demonstrations, they briefly discuss how M1 compares to Fidelity’s offering. They close with a request for listener questions to be used in an upcoming interview with M1 Finance’s founder and CEO, Brian Barnes.  If you have any, please email them to chriskpedersen@gmail.com.   M1-Related Disclosures This podcast and video were recorded on September 12, 2024.  All information is subject to change. The opinions expressed are solely those of the authors and do not reflect the views of M1. They are for informational purposes only and are not a recommendation of an investment strategy or to buy or sell any security in any account. They are also not research reports and are not intended to serve as the basis for any investment decision. Prior to making any investment decision, you are encouraged to consult your personal investment, legal, and tax advisors. M1 is a technology company offering a range of financial products and services. “M1” refers to M1 Holdings Inc., and its wholly-owned, separate affiliates M1 Finance LLC, M1 Spend LLC, and M1 Digital LLC. If you choose to transfer your account to another broker-dealer, only the full shares are guaranteed to transfer. Fractional shares may need to be liquidated and transferred as cash. All examples above are hypothetical, do not reflect any specific investments, are for informational purposes only, and should not be considered an offer to buy or sell any products. All investing involves risk, including the risk of losing the money you invest. Brokerage products and services are offered by M1 Finance LLC, Member FINRA / SIPC, and a wholly owned subsidiary of M1 Holdings, Inc. M1 does not provide investment advice, and this is not an offer or solicitation of an offer, or advice to buy or sell any security, and you are encouraged to consult your personal investment, legal, and tax advisors. M1 is not recommending or endorsing this investment by making it available to its customers.

    53 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 - 2024
  • Episodes
    468
  • Rating
    Clean
  • Copyright
    © Paul Merriman
  • Show Website
    Sound Investing

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