Join Paul Merriman, Chris Pedersen, and Daryl Bahls for a deep dive into questions facing today’s investors! In this episode, our team tackles a wide range of topics designed to help you make smarter financial decisions, whether you’re a seasoned DIY investor or just getting started.
Main Topics Covered:
1. Midcap Funds – Are They Necessary? 2:24
We break down why midcap funds often get left out of recommended portfolios, the impact of fund overlap, and whether including them really adds value or just complexity.
2. Listener Allocation Questions 12:49
Hear real-life portfolio allocation questions from our listeners—including how to balance S&P 500, value, and midcap funds. The team discusses the pros and cons of various strategies and how to avoid unnecessary overlap.
3. The Risks of Small Cap Growth 19:10
Discover why small cap growth funds can be risky, the historical performance data, and why value funds may be a better long-term bet for most investors.
4. Hourly Advisors & DIY Investing 22:41
Thinking about ditching your advisor and going DIY? We discuss the benefits and challenges of working with hourly advisors, how to find one that supports your strategy, and the importance of sticking with a plan you understand.
5. Capital Gains & Taxes 27:45
Got questions about selling investments and minimizing taxes? While we don’t provide personal tax advice, our experts outline the key considerations and why consulting a tax professional is essential for big moves.
6. Financial Freedom Mindset 30:05
It’s not just about retirement—it’s about saving for freedom! Learn how reframing your financial goals can keep you motivated and focused for the long haul.
7. Avantis vs. DFA Funds 31:15
Curious about the differences between Avantis and DFA ETFs? Chris and Daryl compare these two fund families, explaining how their philosophies align, where they differ, and how to choose the best fit for your portfolio.
8. AVGE for Granddaughter? 38:32
Paul shares his personal approach to investing for his granddaughter, comparing AVUS, AVUV, and AVGE, and why teaching young investors about asset class behavior can be more valuable than just chasing returns.
9. Should You Avoid Growth Funds? 45:53
They explain why “growth” funds aren’t always what they seem, the pitfalls of chasing expensive stocks, and why a tilt toward value and small cap may offer better long-term results.
10. The Rule of 72 – Power of Compounding 52:47
Learn how to use the Rule of 72 to teach young investors (and yourself!) the massive impact of compound returns over time. It’s a simple math trick that can change your financial future.
Daryl references this table-
Sound Investing Portfolios 1970-2024