Podcast
Sound Investing
Hosted by Paul Merriman · EN
Weekly podcasts with Paul Merriman. Strategic planning for investing at every stage of life.
32episodes
Episodes
Newest firstAll episodes
Q & A Deep Dive
Mar 2500:36:48Tap to summarizeQ&A HighlightsHow does a 4-fund portfolio compare to a 10-fund portfolio?What is the best way to invest for a child’s future?Is it too late to use a diversified strategy like the 10-fund portfolio at age 50?Can I create and test my own custom portfolio using your tools?How should I invest during periods of inflation or uncertainty?What are some recommended fund options available at Schwab?Is a portfolio combining large-cap value and small-cap blend a good approach?Are there good alternatives to intermediate-term bonds?Who are some trustworthy voices in personal finance and investing?What is your opinion on separately managed accounts (SMAs)?Key TakeawayLong-term investment success is driven by asset allocation, discipline, and consistency—not complexity. A simple, well-structured portfolio that you can maintain through market cycles is often the most effective approach.Listen to the individual questions here.
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DFA & Avantis ETFs: Building the Ultimate Lifetime Equity Strategy
Mar 2500:53:43Tap to summarizePaul Merriman is dedicated to helping do-it-yourself investors build portfolios they can stick with for life. In this episode, he shares what he believes is the closest thing to a perfect long-term equity strategy he's ever seen.Paul traces the evolution of index investing — from John Bogle's cap-weighted S&P 500 funds to the academic research of Fama and French, whose factor-based work showed that small cap value, large cap value, and other equity asset classes have historically outperformed the broad market over time.For years, the best factor-based funds from Dimensional Fund Advisors (DFA) were only available through select advisors. That changed when Avantis launched its ETF lineup in 2019, followed by DFA's own ETFs — putting institutional-quality, factor-based investing within reach of every self-directed investor.Paul introduces a recommended ETF list spanning 10 equity asset classes across both fund families, explains the key differences between DFA and Avantis, and makes the case for owning both. He also covers where to buy them and why Fidelity's fractional shares make it easy to start with any dollar amount.Key topics: Factor-based vs. traditional index funds · Accessing DFA and Avantis ETFs · The case for owning both · Simplifying rebalancing with M1 FinanceThe Q&A Paul references was recorded separately.
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Flexible Retirement Withdrawals: Why Taking Less Can Give You More
Mar 1800:38:10Tap to summarizeIn this episode, we explore how flexible (variable) withdrawal strategies can strengthen your retirement plan—and why fixed, inflation-adjusted withdrawals may increase risk over time.Using detailed distribution tables—including Table F1.3 (flexible withdrawals) and comparisons to Table D1.3 (fixed withdrawals)—Paul walks through real historical outcomes across decades to show how adjusting withdrawals based on market performance can improve long-term results.You’ll learn:Fixed vs. flexible withdrawal strategiesInsights from Tables F1.3, F1.4 vs. D1.3, D1.4How flexibility helps defend against bear marketsThe role of diversification and low-cost investingWhy oversaving creates powerful financial freedomIf you’re planning for retirement or already taking withdrawals, this episode may offer a smarter, more adaptable approach to generating income.Watch YoutubeBoot Camp 7 page
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Boot Camp #6 Fixed Distributions
Mar 1100:40:25Tap to summarizeIn Boot Camp #6, Paul Merriman walks through real historical data starting in 1970 to test what happens when retirees withdraw 3%, 4%, or 5% from a $1 million portfolio — adjusted for inflation — across some of the toughest market conditions in history.This episode covers:The difference between retiring with “enough” and “more than enough”How inflation quietly turns $30,000 into $130,000+ over 30 yearsWhat happens if you retire into a bear marketWhy 1% more in withdrawals can cost millionsS&P 500 vs. a globally diversified four-fund strategyHow diversification impacts lifetime income and legacy outcomesThe real risk of sequence of returns in retirementWhy some portfolios ran out of money — and others didn’tYou’ll hear side-by-side comparisons of:100% S&P 500 portfolios40/60, 50/50, and 60/40 stock-bond mixesA worldwide four-fund equity strategyFixed inflation-adjusted withdrawals over 30 yearsThe results may surprise you — especially when comparing 3%, 4%, and 5% withdrawal rates.If you're approaching retirement, already retired, or helping someone make distribution decisions, this episode breaks down the numbers in plain English and shows how small choices can create million-dollar differences.Next week: the strategy Paul considers the very best distribution method — for investors who retire with more than enough.Watch Video HereCatch up on the previous Boot Camp 2026 here
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2026 Boot Camp #5 Fixed Contributions
Mar 401:05:03Tap to summarizeIn Boot Camp #5 of 10, Paul delivers what he believes is the most important session in the series—especially for new and early investors (teens, 20s, 30s, and anyone just getting started).Instead of treating investing like speculation, Paul reframes it as building—or buying—a business over decades.Using clear, data-driven tables and “fine-tuning” comparisons, he walks through a simple, repeatable plan: start with $1,000 per year (about $83.33/month), increase contributions by 3% annually, and stay invested for 40+ years. You’ll see how long-term outcomes change based on asset allocation (100% stocks vs. 60/40 stocks and bonds), and why diversification can matter when markets go sideways.Paul also compares an S&P 500-only approach with a globally diversified “worldwide four-fund” strategy (mixing U.S. and international, large and small, value and growth). Along the way, he explains the real power source in early investing: your contributions, not short-term market performance—and why tax-advantaged accounts like a Roth IRA or Roth 401(k) can dramatically increase the impact of compounding over a lifetime.If you want a practical framework for long-term, low-cost, diversified investing, plus a clear-eyed discussion of volatility, sequence of returns, and retirement withdrawals (including the concept of a 5% annual withdrawal strategy), this episode lays the groundwork.Why Paul believes this is the most important boot camp sessionInvesting as building a business (the “portfolio mortgage” analogy)Starting with $83/month and increasing contributions by 3% annuallyUnderstanding the fine-tuning tables and historical market returnsS&P 500 vs. 60/40 portfolio: balancing growth and volatilityThe Worldwide Four-Fund Portfolio and the benefits of deeper diversificationHow sequence of returns impacts accumulation and withdrawalsWhy you rarely notice individual company failures inside diversified fundsThe long-term advantage of Roth IRA / Roth 401(k) compoundingStaying disciplined through crashes, recessions, and sideways marketsWatch Video
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Bootcamp #4 |Fine-Tuning Your Asset Allocation for Retirement & Long-Term Growth
Feb 2500:43:33Tap to summarizeHow much should you really have in stocks vs. bonds — and what happens when the market turns south with a vengence?In Boot Camp #4, we break down the fine-tuning asset allocation tables that show exactly how different combinations of equities and bonds have performed from 1970 through 2025. This episode goes beyond average returns and dives into what investing actually feels like during the worst 3-month, 12-month, and 60-month market declines.You’ll learn:Why equities have historically dominated bonds for long-term retirement investingHow the S&P 500 compares to diversified strategies like the Four-Fund portfolioThe real impact of worst-case drawdowns (including 50%+ bear markets)What happens to a 100% stock portfolio during retirement withdrawalsHow 50/50, 60/40, and other stock-bond allocations reduce volatilityWhy median returns matter — and why averages can misleadHow to control risk through asset allocation, low costs, tax efficiency, and index investingWe explore real historical data — including the 1973-74 bear market, the 2000-2002 tech crash, and the 2008 financial crisis — to help you understand both accumulation and retirement distribution phases.Whether you're in your 20s building wealth, in your 50s preparing for retirement, or already retired and managing withdrawals, this episode helps you align your portfolio with your risk tolerance, return needs, and long-term financial goals.If you want to be a confident do-it-yourself investor — without paying a 1% management fee — this episode gives you the framework to make informed decisions about stocks, bonds, diversification, and risk control.Watch Boot Camp #4 video
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Bootcamp #3 | How to Choose the Right Portfolio (Returns, Risk & Diversification)
Feb 1800:46:31Tap to summarizeWelcome to Bootcamp #3 of the Sound Investing Series with Paul Merriman — where real investing data meets practical long-term strategy. 📈 In this session, Paul breaks down the performance of diversified portfolios vs. the S&P 500 using decades of historical data going back to 1970. You’ll learn how different combinations of equity asset classes have performed in good markets, bad markets, and everything in between.📊 What You’ll Learn in This Video:• A deep dive into the Sound Investing Portfolios and how they work for DIY investors• Historical returns of 2-, 4- and multi-fund strategies compared to the S&P 500• Why diversification matters and how it can reduce risk and improve returns• How different portfolios performed in tough decades like the 1970s and 2000s• Practical takeaways for long-term investors, retirees, and those choosing equity allocationsWhether you’re a beginner or experienced investor, this Bootcamp episode gives you real numbers and evidence-based insights to help shape your portfolio strategy with confidence. 💡 Topics Covered:✔ Sound Investing Portfolios explained✔ Risk vs. return comparison✔ Historical performance of diversified portfolios✔ The role of small-cap & value stocks✔ Why a 2-fund strategy can compete with the S&P 500✔ How to think about risk in real market conditions🔗 Useful Resources & Tables - https://www.paulmerriman.com/sound-investing-portfolios-2026To follow along with the charts, tables, and data Paul references during the presentation, check the pinned links and video notes.📈 Perfect For:✔ DIY investors✔ Retirement planners✔ Anyone curious about portfolio diversification✔ Investors who want to avoid common mistakes📩 Questions? Paul encourages you to leave comments and reach out — he often uses viewer questions in future episodes!➡️ Don’t forget to subscribe for more deep-dive investing education and future Bootcamp episodes from the Merriman Financial Education Foundation: Paul Merriman’s mission is to help you make more money with less risk and more peace of mind.
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Boot Camp #2: The Ultimate Buy & Hold Portfolio
Feb 1100:34:06Tap to summarizeIn 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.
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Bootcamp #1 | The $10 Million Decision | Stocks and Bonds
Feb 400:38:27Tap to summarizeWhat 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 lifetimeBonds are designed for safety — not wealth creationEquity asset classes behave very differently from year to yearDiversification across asset classes smooths volatility and improves outcomesTrying to “pick winners” is a losing game — and why owning the whole market worksThis 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.
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Lessons for Bogleheads
Sep 25, 2024Tap to summarizeIn preparation for his presentation at the Bogleheads Conference Paul reread John Bogle’s “The Little Book of Common Sense Investing” He has been recommending the book since 2007 but in 2017 Wiley published the updated and revised edition. There is some terrific new material in the revised edition.Paul focuses on several topics from the book including Bogel’s statement that index funds are the only “honest” funds. Paul discusses the reasons actively managed funds can’t afford to tell the truth.Paul also discusses Chapter 2 on Rational Exuberance. In this chapter Bogle discusses the very important topic of investment returns vs. speculative returns. This topic is essential for do it yourself investors to understand as it prepares them for a reality of investing that could help them stay the course during difficult times.Paul ends by reading Bogle's list of 8 common sense realities that every investor should know. It would probably be smart to reread this short list at least once a year.At the Bogleheads conference Paul will speak twice: once in an interview with Jim Dahle (The White Coat Investor). The topic is factor investing. We have developed a page of links to all of the tables that are focused on the use of factor funds to build a portfolio. Here is a link to that list of tables, charts and graphs.In his second opportunity to share he is part of a panel on investing. That will be a free for all and should be fun.All of the conference presentations are being taped so they will be available in the coming months.
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