Sound Investing

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

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

    16H AGO

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

    JAN 7

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

    12/31/2025

    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
  4. The Importance of Keeping Investing Simple!

    12/24/2025

    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
  5. Paul Merriman on Long-Term Investing, Compounding, and Building Wealth

    12/17/2025

    Paul Merriman on Long-Term Investing, Compounding, and Building Wealth

    Compounding Project Podcast – Episode 36 In Episode 36 of The Compounding Project Podcast, legendary investing educator Paul Merriman shares timeless insights on long-term investing, the power of compounding, and how everyday investors can build lasting wealth. Paul explains why starting early is one of the most important financial decisions you can make, how compound growth works quietly over decades, and why low-cost index funds remain the foundation of successful investing strategies. This episode dives deep into portfolio diversification, the hidden impact of investment fees, and the role of small-cap value investing in improving long-term returns. Paul also offers practical, evidence-based guidance for young investors, parents, late starters, and anyone seeking financial independence through disciplined investing. Whether you’re new to investing or refining an existing portfolio, this conversation delivers actionable lessons on building wealth the smart way. Starting early and staying consistent matters more than market timing or stock picking. Low-cost index funds and diversification are the most reliable tools for long-term wealth building. Small-cap value investing and minimizing fees can significantly increase lifetime investment returns. Your Money and Your Brain The Psychology of Money Thinking, Fast & Slow Spending Your Way to Wealth Watch the full episode for expert insights on investing, compounding, and financial freedom. Follow Paul Merriman On Social Media: ⤵︎📷 Instagram: /   / paulamerriman2012  📱 YouTube: /    / @paulmerrimansoundinvesting  To Know More,Follow Sathish Gajula On Social Media: ⤵︎ 📷 Instagram: /   / compoundingproject  📱 YouTube: /    / @compoundingproject   Timestamps: 00:00 Episode Trailer 02:00 Intro to Wealth and Index Funds 03:20 The Million Dollar Decision 07:04 Investing Tips for Young Parents 12:47 Saving When Money Feels Tight 15:35 Stocks vs Bonds 19:58 Rethinking Stock Market Risk 24:36 Why Investing Is Easier Today 27:06 How Fees Hurt Returns 29:08 When Bonds Make Sense 32:56 Investing Across Generations 34:58 Portfolios by Age 35:52 Starting Late in Investing 41:05 Defensive Investing Basics 42:10 Why Stocks Matter Most 43:04 Beating the S&P 500 48:09 Market Returns Explained 51:22 Why Diversification Matters 54:49 Fees and Long-Term Returns 58:28 Small Cap Value vs Total Market 01:03:25 Equal-Weight S&P 500 01:08:36 Handling Market Volatility 01:11:05 Picking Small Cap Value Funds 01:12:50 Trust in Investing 01:16:42 Hotseat Questions

    1h 20m
  6. AAII Q&A Series (Part 3 of 3)

    12/10/2025

    AAII Q&A Series (Part 3 of 3)

    Over the last couple of weeks, I’ve been recording a series of Q&As that came out of a presentation I gave in November for the American Association of Individual Investors — AAII. At the end of that nearly two-hour talk, I promised that I’d do a podcast answering every single question that came in. Well… there were 36 questions. That’s a little too much for one episode, so we broke them into three parts. This is Part 3 — the final 12 questions. If you haven’t heard Parts 1 and 2 yet, we’ll link those in the show notes so you can catch up. Before we jump in, I just want to say: I’m a huge fan of AAII. I started teaching their local chapters way back in 1984, and over the years I think I’ve presented to just about every chapter in the country — sometimes in person, sometimes by Zoom — but always to people who are genuinely committed to learning how investing works. If you’ve never checked out AAII, I’ll include a link in the notes for a low-cost trial membership. Take a look around and see if it’s a resource that fits your investing journey. Alright — let’s get to the last 12. Will you develop strategies using the equal-weighted S&P 500? 01:44 Can you recommend advisors who follow your strategy? 07:20 Should I move mutual funds to ETFs in taxable accounts despite taxes? 11:26 With markets at highs, should I keep dollar-cost averaging or rebalance? 16:17 What portfolio fits 10 years to retire and 20–30 years of decumulation? 24:08 Will the configurator shift to only Avantis/DFA funds in 2026? 30:37 What does “inflation-adjusted fixed withdrawals” mean? 33:56 How should I invest an inheritance for kids/grandkids ages 2–45? 38:21 Ultimate Buy-and-Hold vs. two- or four-fund strategies — which is better? 49:03 Should political conditions change retirement portfolio decisions? 59:12 How do I find a fee-based/hourly advisor (Rhode Island question)? 1:05:56 Should very conservative 91-year-olds move beyond bonds and cash? 1:13:28 Part 1 of the AAII Q&A Series Part 2 of the AAII Q&A Series AAII trial membership offer (the ~$2 first month deal) Boot Camp series hub Fine-Tuning Your Asset Allocation table / lesson Sound Investing / portfolio decade return tables — Fixed vs. Variable Withdrawal episode/article H-2A table referenced in Q9 Chris Pedersen Boot Camp presentation (Two-Fund for Life) Garrett Planning Network advisor directory HelloNectarine hourly advisor platform PlanVision / Mark Zoril reference

    1h 18m
  7. AAII Q&A, Part 2 — 12 More Questions Answered

    12/03/2025

    AAII Q&A, Part 2 — 12 More Questions Answered

    Paul continues his three-part series responding to questions from his November 8 AAII presentation. In this episode, he digs into risk-parity portfolios, the role of gold, how the 10-Fund Strategy compares to the S&P 500, growth vs. value, rebalancing discipline, and how to choose the right bond allocation in retirement. If you were at the AAII event, you’ll find the exact 12 questions listed below so you can jump straight to your topic. 12 AAII Questions Covered Thoughts on risk-parity portfolios during retirement distributions? 2:12 Was the 10-Fund Strategy originally meant to mirror 60/40? 14:51 Should investors add gold (IAU) after its recent streak? 21:40 What is a double-rung bond ladder? 24:03 Which of the nine portfolios has the best return per unit of risk? 26:36 Analysis of growth funds outperforming over the last decade? 31:36 How to invest new money when the economic outlook looks uncertain? 36:40 Will the AAII slide deck be available? 38:54 How often do you rebalance? 39:25 How do you tune out the noise and stay the course? 41:13 How to choose your bond allocation in the distribution phase?  45:25 Can you share ETFs for the bond portion of a retirement portfolio? 52:12 Resources Mentioned AAII presentation slides 10-Fund vs. S&P long-term comparison Fine-Tuning Your Asset Allocation tables Sound Investing tables Retirement withdrawal tables Lifetime Investment Strategy calculator Best-in-Class ETF recommendations

    56 min
  8. Thanksgiving, AAII Q&As. Retirement Portfolios, Value Tilts, International Diversification, and Investing a Lump Sum

    11/26/2025

    Thanksgiving, AAII Q&As. Retirement Portfolios, Value Tilts, International Diversification, and Investing a Lump Sum

    Recorded from our new home on Bainbridge Island and released on Thanksgiving, this episode is equal parts gratitude and practical investing help. I open with my annual tradition of writing a fresh Thanksgiving list—people, communities, and institutions that have shaped my life and this work. I’m especially thankful for you, the DIY investors who keep showing up to learn, ask thoughtful questions, and hopefully staying the course. I also share appreciation for the resources that support disciplined investing—Morningstar, the Bogleheads community, and the American Association of Individual Investors (AAII). After a recent AAII presentation (over 150 attendees), we ran out of time for a live Q&A. I promised to respond to every legitimate question, so this episode kicks off a multi-part series answering them in depth. Here are the first 12 AAII questions covered in today’s episode: (9:42) What alterations in portfolio construction do you recommend in transition from accumulation to distribution in order to maximize diversification of uncorrelated assets, safe withdrawal rates, and spending? ⁠Table h2a (21:21) I’m a huge fan of your U.S. two-fund portfolio. Why is diversification between large-cap growth and small-cap value so important, while diversification between VTSAX and AVUS (within the same asset class) is not? Should we diversify fund selection within the same asset class? Table K2b(26:49) Have you considered creating a quilt chart for the Ultimate Buy-and-Hold portfolios with a 70/30 U.S./international split? Table K1a and H2a and H2b(32:04) You appear to have avoided any mention of mid-cap. Should we be ignoring mid-cap funds?(33:35) What do you think about adding alternative investments to the portfolio (for example, managed futures)?(38:39) Are your recommendations for everyone, or does the game change when you have a pension for life?(43:07) I was fighting with the Zoom link and arrived 25 minutes into the presentation. Will a video recording be available to participants?(44:08) What would you expect the difference between the S&P 500 cap-weighted index (VFINX)and the S&P 500 equal-weighted index (VADAX)  to be?(49:53) The four-fund portfolios are equal-weighted across their asset classes, which results in a value tilt overall. Why weigh them equally?(54:35) One might think that adding international large-cap growth and international small-cap value to the two-fund approach would improve results. Does international allocation mainly reduce volatility/drawdown length, or also increase returns?  H2a and H2b(56:26) Can you buy DFA and Avantis funds at Charles Schwab?(58:40) What should you do if you have a lump sum to invest today, but current market highs make entry uncomfortable? https://awealthofcommonsense.com/2025/11/do-we-need-a-long-bear-market/

    1h 6m
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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
    528
  • Rating
    Clean
  • Copyright
    © Paul Merriman
  • Show Website
    Sound Investing

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