thank you!!

People are fleeing from places like M1 after the whole yotta incident……When you realize your money may not be as safe as you think it is……Especially the savings account😑The fdic insurance may not help you because m1 isn’t actually a bank and if M1’s partner banks where they store your cash have issues with their books then it becomes a dispute and fdic insurance won’t kick in because the banks didn’t actually fail

Thank you, Paul. When you say bonds, which funds are included in it? I see that the yearly returns for 100% Bonds don't match any of these ETFs: BND, VGIT or VGSH. Is it some combination of multiple bond funds/ETFs?

I have a 3 fund portfolio but I have finally decided to invest in ETFs, alongside. I’m looking at SCHD, VOO, XLK or SCHG

I use value funds with dividends as my bond replacement and im okay with that risk and larger upside potential

I lost over $300,000 investing in $GME and $BBBY, which was very depressing. Now, with low risk tolerance, I want to invest wisely. I’ve been researching index funds, ETFs, mutual funds, and growth stocks. I want a simple portfolio with about 3 holdings.

Thank you for teaching us Paul!

Mr Paul Merriman is an absolute gentleman and an inspiration. He’s helped me so much. Keep up the great work sir

Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments

Paul, thank you so much for all this information you are sharing for free. The two fund U.S. portfolio with 50% S&P 500 and 50% SCV is probably the easiest to transition for those following the 100% VTSAX portfolio. Many of us have heard for too long that the simple path to accumulating wealth is 100% VTSAX. Though the recent years have certainly been in favor of that, I am slowly diversifying out of it into AVUV (your best-in-class SCV recommendation) to get to 50/50. Thank you again!

Paul’s best in class ETF I pick for small cap value is AVUV. Building toward 15% of my portfolio.

Greetings from the UK, I really appreciate all the information that you provide.

merriman aaii guy

My portfolio doesn’t just cater to dividend stocks. I hold $VFIAX (S&P 500 index fund) in my Roth IRA and $VTI (Total Stock Market ETF) in my taxable brokerage account. Two of my largest holdings. The individual dividend stock positions all complement the index holdings.

Great discussion with Andy, Marriagekidsandmoney, Paul. Larry, Central Valley, Ca.

I get a federal salary and my 401k is called the tsp or Thrift Savings Plan. I contribute 50/50 between the S fund and the C fund. The C fund is the S&P 500 and the S fund is small cap but I don't think it's small cap value. The C fund does better most of the time but there have been a few years where the S fund outperforms it and I'm hoping that before I retire I get another good year with the S fund.

Just wondering if it might be better to start with the simplest first I.e. after showing 100% S&P, start with how adding SCV in 10% increments works. When presented with the UBH first, it's quite daunting and I am afraid many are missing out on these invaluable lessons due to that.

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​@PaulMerrimanSoundInvesting, are all the tables you reference across these boot camp videos available for download in Excel/Google Sheets format? I want to easily compare the different portfolios, and PDFs are just an obscene way of doing it 😂. Regardless, of your response, thank you and your team for these awssome resources and teachings!!!

hi- I've done the entire boot camp and love the AVUS as the better option to VTI. Do you suggest a similar fund for international stocks (and emerging markets)? I.E. a little bit more concentration on value and small? Seems like a sensible tweak to the typical three fund portfolio- combining simplicity and a bit more diversification.

Is there an additional fee to hold AVUS within Vanguard?

I wish they would discuss sell limit orders and especially trailing stops. Seems like a good way to limit my losses in retirement.

very helpful and educational!! thanks so much!

Hi Chris and Paul. Great video, analysis and discussion as usual. Thanks for all you do. Larry, Central Valley, Ca.

Recommendations to add AVUV to AVUS seems like over tilting to value. May be too difficult to stick with. Best chart is probably one presented by Chris showing SWR with different assets combinations. Sweet spot for scv around 30% of stocks.

The problem with Vanguard Target Funds are that they start too heavy with Bonds early on and get worse over time. I'd suggest if you go with them, then pick one that is about 10 years above your actual target date. Other brokerages offer better allocations but higher fees.

Howcome chris doesn't recommend DFAC? it seems to be tilted more towards smaller companies than AVUS, is i the slightly higher expense ratio? Also, I can invest in DFSV or DFSVX for 0 cost difference. Which would you suggest? Or are they exactly the same? Also, also, why does Avantis and DFA leave out REITs in their total us market funds?

Check your local library, some offer free access to Morningstar's paid service through their website (library card required).

Yikes paul

Thank you so much for this wonderful discussion. The only distraction was the cell phone alerts that kept on going through the discussion 🙂.

First and foremost, I thank you for your wealth of knowledge. As for M1 finance, the only thing I like about M1 finance is their pie charts. However, i'm not a fan of their fees. M1 finance started charging fees (I believe $3 a month) if you have less than 10K in your M1 finance account. M1 Finance transfer fee is ridiculous, $100. I transfer my account to Fidelity. Couldn't be any happier. Anyways, thank you Mr. Merriman and Mr. Pedersen for your excellent content.

Thank you for doing this!! It's great.

Paul, Many thanks to this valuable content. I really appreciate it .

first off I want to thank you guys for everything you do and have done. My question which someone below also noted is the information on the screen is so small that I can't really read much of it. I can follow the general steps but I would love to view and understand every thing all the data that is presented on all the screens as you go through the example. Is there anyway to do that or is this sample example you use available to us to try out somewhere perhaps at M1 web site with out being commited to starting an account thanks again bob t;

Been with m1 since July of '21. So far, no real gripes. For the DiY investor who wishes to invest using the same principles you guys share, I believe they are amazing. So many of the negatives I hear are from people who don't want to invest in the way M1 encourages anyway. They want to use limit orders, get interest on their settlement funds, and trade options...all things related to *active* investing.

I used to like these men... Now I LOVE these men.

I've been using M1 for years. I enjoy the pie structure. Just received a nice dividend from M1 holdings today.

Thank you Paul and Chris for this vidoe. I am going to be working with my grandkids and encourage them to use this platform to get started. It was difficult to follow as the image on the screen was very small so difficult to see well. It also needed info on the account types that could be opened; such as traditional IRA, Roth IRA, Brokerage, 529, HSA etc - what all are available? I'll have to do a bit more research. Thanks for all you do at the foundation and keep this great content coming. Larry, Central Valley, Ca.

I aspire to follow Paul’s leadership so that I can achieve abundance and be able to serve others generously. Thank you!

So looking forward to dive into this book. Paul you provide a wealth of information and not only do I plan to consume it, but I plan to share it and very importantly have a wealth(s) mindset to positively impact my family. Thank you.

Presentations like this which derive expected returns over a performance history whose dynamics, historical detail, and circumstances have been “unusual”, may need to realize that expected returns going forward may change, as circumstances have become more “normal”. For instance, Tables C1 and C9 depict returns of “bonds” over a period ( 1970 - 2011 ) whereby there was an anomalous spike in inflation ( known in academic circles as the ‘interest rate mountain” IRM ( AQR research )). Because of the impact of “dual oil shocks” , and the “mistakes” made by the Nixon and Carter administrations in the management of price inflation in the 1970s, the inflation rate rose to levels that were much higher than “should have” been. Undoubtedly, going forward, an inflation of this magnitude will not occur again, as modern administrations / Federal Reserve boards are much more “experienced” and are more adept in dealing with inflation - as witnessed by the most recent inflation event ( 2022 - 2023 ), an inflation that may have been much worse had the Federal reserve not acted promptly and decisively. Therefore, the bond returns depicted in the Tables reflect a higher average return produced over the IRM period than the returns produced over the more “normalized” period in the decades that preceded it. And it can be assumed that post 2011 ( the “end” of the IRM period ), the interest rate “term structure” has entered back into a more “normalized” range ( absent the recent inflation period ). Compound annual returns for “bonds” over the IRM period were 7+% ( this because the returns contribution to bonds’ return was much higher, as the average interest rate was higher, as rates slowly worked their way lower ), whereas returns over the suspected normalized 2012 - 2023 ( and beyond? ) period have been 1.5% ** ( with general rates residing within a "range" of between, say, 2.5 - 3.5% ). That’s quite a performance differential when considering incorporating bonds within a 30/40 year portfolio lifecycle “glide path” ( Target Date fund ), this having been a typical bond exposure averaging 40% ! In the book "Work, Retire, Repeat - The Uncertainty of Retirement in the New Economy", Teresa Ghilarducci cites that only 15% of U.S. retirement aged citizens have "enough" or "excess" savings / investments accumulated to live in "financial independence". This means that if portfolios that have produced “higher” returns over the past ( higher bond returns over the IRM period ) couldn’t help a portion of that “85%” cohort enter financial independence, how will portfolios producing a lower returns going forward help this situation ? There may have to be a rethink of portfolio design, perhaps with portfolios containing much higher allocations of equities ( S&P500, small cap value, etc. ) versus bonds over the glide path - this in order to match the returns of the 60/40 & Target Date returns of the past. ** Vanguard Total Bond Market Index Inv

Paul this was an excellent presentation. I'm sharing it with a lot of people that need to hear and learn this stuff.

My portfolio of 200k is not increasing any more than 5% and we seem to be facing a massive crash now. I cant tell where the market is headed, perhaps I should just sell off and avoid the panic, or are there specific ways I can mitigate risk and benefit from a crash?

Thank you, Paul, for declaring a preference for Roth accounts over Traditional. It’s such a painless way to increase your eventual distributions by whatever tax rate the investor finds himself in each year after retirement. Also, there are no complicated decisions to make later about ‘Convert or Don’t Convert,’ or which pool of savings to withdraw from first. 1:10:04

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To achieve a secure retirement, aiming to save at least 15% of your income in a 401(k) is advisable. Online tools can assist in calculating the best savings strategy for you, considering factors like age and income. Consistently saving this percentage can help build your retirement fund effectively, thanks to the benefits of compound interest.

In citing these figures on accumulation of your investment, I never hear anything about re-investing dividends and capital gain distributions. How do these affect the results?

These videos are so valuable to me and my family and I pass it forward to those who are interested. Thank you so much

Great walk through! Thank you so much. You're very good at explaining things step by step. Hope to see you in more videos

Bless you for making these. There is so much info online that it is overwhelming to discern good vs bad financial advice. Starting out feels almost impossible. The way you talk and present information is so comforting and relatable. Thank you so much. I'm excited to watch the rest of the series