This episode concludes our four-part series on two “radical” portfolio choices—investing all-equity for life versus adopting a more balanced 60% equities / 40% bonds approach. In this final session, Paul goes beyond the S&P 500 to examine the U.S. Four-Fund strategy (large-cap blend, small-cap blend, large-cap value, small-cap value).
The goal? To see whether spreading risk across more equity asset classes can deliver higher returns with similar risk compared to relying solely on the S&P 500.
Key Tables to Review
Paul highlights four critical tables from the Bootcamp series. You can view them all on paulmerriman.com:
Table B1 - Fine Tuning Table: S&P 500 Equity Portfolio
Table B4 - Fine Tuning Table: US 4-Fund Equity Portfolio
Table C4 - Fixed Contributions ($1,000/yr): US 4-Fund Equity Portfolio
Table D4.4 - Fixed Distributions (Conservative-$40,000/yr): US 4-Fund Equity Portfolio
Table H2 – Sound Investing Portfolios (100% Equity)
Table H2A – Sound Investing Portfolios (60/40)
Table D1.4 – Fixed Distributions ($40k + inflation)
Lessons for Investors
- Risk vs. Reward: Diversification improved long-term results with little added downside.
- Distribution Matters: In retirement, portfolio structure determined whether investors ended with $6 million or nearly $20 million.
- Numbers Over Stories: While investing stories capture attention, the tables show the long-term reality.
For deeper study, explore all the Bootcamp tables and supporting resources at paulmerriman.com.