Portfolio Building

Don and Tom dive into how to properly build a diversified portfolio, using a listener question about Paul Merriman’s “Four Fund Portfolio” as a launch point. They explore the essentials of asset allocation, including U.S. vs. international exposure, large vs. small cap, and value vs. growth, while comparing Merriman’s approach to models from DFA and Avantis. Along the way, they bust myths around Social Security, early retirement, and the tax implications of tweaking existing portfolios. As always, a few detours into Mayberry and Chick-fil-A make the ride more entertaining.

0:04 Listener questions fuel today's deep dive into proper portfolio design
0:50 The basic building blocks: stocks and bonds, plus deeper diversification
1:57 Financial literacy fail: is a stock or a mutual fund safer?
2:43 Listener question: what about Paul Merriman’s “Four Fund Portfolio”?
4:01 U.S. large vs. small, value vs. blend—and why emerging markets matter
6:50 Paul's long-term results: 12.1% annualized since 1970 with higher volatility
8:07 Comparing allocations: DFAW, AVGE, and how Apella does it
9:13 Which funds to use for large cap value, small cap value, and more
11:38 Rebalancing: the hard part most investors ignore
13:10 Summary: yes, Merriman’s model works—and it’s easier than you think
14:13 Retired at 34 with $30M—why early retirees still face emotional challenges
16:15 Social Security and early retirement: COLAs vs. your top 35 earning years
18:10 Listener with $500K in STAR fund: worth selling and buying AVGE?
19:36 Actively managed STAR fund isn’t horrible, but there are better options
21:04 Can I use my Roth IRA for future family needs? (Short answer: probably not)
23:26 Mayberry trivia, candy, and the correct answer to Angela’s Roth question
24:21 Final thoughts, calls for spoken questions, and the exhaustion post-RetireMeet

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Published on 8 months, 2 weeks ago

Podcast Episode Details

Portfolio Building