Paul Merriman 2 Funds for Life

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spdoublebass
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Paul Merriman 2 Funds for Life

Post by spdoublebass » Thu Oct 25, 2018 10:49 pm

Just curious if anyone caught Paul Merriman's latest Podcast. I always find him interesting.

He came out with a 2 Fund portfolio.

https://paulmerriman.com/2-funds-for-life/

Basically it's 1.5 X your age in a TDF, and the remaining in SCV.
Last edited by spdoublebass on Fri Oct 26, 2018 10:24 pm, edited 1 time in total.
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Re: Paul Merriman 2 Funds for Life

Post by Small Law Survivor » Fri Oct 26, 2018 7:57 am

I'm a big fan of his, and I caught the podcast. He's so persuasive on small cap value that I've "drunk the cool aid" in my portfolio.

Funny thing is, I'm trying to help my 24 year old daughter with investing. I've helped her fund a Roth IRA that's up to $25,000 now. It has been invested 100% in a Vanguard TDF, but I wanted to come up with a simple investment strategy that she could follow for life if she wanted to, and it was 80% TDF plus 20% small cap value.

Merriman has been teasing his listeners on his two-fund portfolio for a month or two, and I anticipated it would be just this.

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Re: Paul Merriman 2 Funds for Life

Post by Murgatroyd » Fri Oct 26, 2018 8:43 am

I found this interesting. But it brought up a different thought. As is often said, looking back doesn’t always translate to future investment returns. Much is written about a current decline in entrepreneurship, which surely impacts small business IPO’s. If it’s true then heavy allocation to SCV may not be wise.

It seems to me the total market is a better bet.

Other Thoughts?

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Re: Paul Merriman 2 Funds for Life

Post by staythecourse » Fri Oct 26, 2018 8:50 am

Murgatroyd wrote:
Fri Oct 26, 2018 8:43 am
I found this interesting. But it brought up a different thought. As is often said, looking back doesn’t always translate to future investment returns. Much is written about a current decline in entrepreneurship, which surely impacts small business IPO’s. If it’s true then heavy allocation to SCV may not be wise.

It seems to me the total market is a better bet.

Other Thoughts?
My thoughts is if you are smart enough you can rationalize any number of reasonable approaches. If you don't feel comfortable with SCV then don't do it.

The reality is NO ONE knows anything other then one should expect a greater return for those assets that have a higher risk of principle loss. If it happens or not who knows.

Good luck.
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Re: Paul Merriman 2 Funds for Life

Post by SpideyIndexer » Fri Oct 26, 2018 11:04 am

Oh, I expected it to be the SCV and long treasuries combination which backtests extremely well.

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Re: Paul Merriman 2 Funds for Life

Post by Jack FFR1846 » Fri Oct 26, 2018 12:28 pm

Sounds like Paul's playing "Name that tune". He thinks he can do it in 2 notes. Ok. 1 fund. TD. I win.
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Re: Paul Merriman 2 Funds for Life

Post by jdb » Fri Oct 26, 2018 2:00 pm

After many years reading this site and most of my assets in Vanguard funds still do not recognize fund acronyms. And no interest in listening to podcast. I must be not the only reader who prefers actual names of funds. So what is TDF?

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Re: Paul Merriman 2 Funds for Life

Post by AerialWombat » Fri Oct 26, 2018 2:04 pm

jdb wrote:
Fri Oct 26, 2018 2:00 pm
After many years reading this site and most of my assets in Vanguard funds still do not recognize fund acronyms. And no interest in listening to podcast. I must be not the only reader who prefers actual names of funds. So what is TDF?
+1

I had to go hunting. It’s “Target Date Fund”.

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Re: Paul Merriman 2 Funds for Life

Post by CABob » Fri Oct 26, 2018 2:33 pm

spdoublebass wrote:
Thu Oct 25, 2018 10:49 pm
He came out with a 2 Fund portfolio.

https://paulmerriman.com/2-funds-for-life/

Basically it's 1.5 X your age in a TDF, and the remaining in SCV.
How do I invest 115 % in a TDF? :confused
I didn't listen to the podcast so I assume my answer is there. :oops:
Bob

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Re: Paul Merriman 2 Funds for Life

Post by SpideyIndexer » Fri Oct 26, 2018 2:45 pm

I would assume at age 67 and older you stay at 100% TDF, according to this suggestion.

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Re: Paul Merriman 2 Funds for Life

Post by Taj_Mahalo » Fri Oct 26, 2018 2:54 pm

SpideyIndexer wrote:
Fri Oct 26, 2018 2:45 pm
I would assume at age 67 and older you stay at 100% TDF, according to this suggestion.
Correct. Interesting article, although I couldn't help but laugh when I read about the Small Cap Value acting as a "booster" fund. I always say the word "booster" in my head with an Arnold Schwarzenegger accent....thank you for that 'Jingle All The Way'. :P
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Re: Paul Merriman 2 Funds for Life

Post by garlandwhizzer » Fri Oct 26, 2018 6:18 pm

Merriman's classic Ultimate Buy and Hold Portfolio had 10 different asset classes each held at a 10% weighting with considerable slants to value and size factors. I haven't listened to his podcast but this portfolio seems much less complex in comparison. For those of us who are older, as CABob points out, it essentially boils down to a TDF since 1.5 X age is greater than 100%. Merriman seems to be advocating reducing factor exposure and portfolio complexity for older adults. TDF is perhaps the simplest way to go, a no brainer for those who don't want to spend a lot of time and effort trying to create the perfect portfolio, an effort that for most of us fails to achieve its goal.

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Re: Paul Merriman 2 Funds for Life

Post by paul merriman » Fri Oct 26, 2018 10:10 pm

Hi Garland,
At 75 I still hold a traditional Ultimate Buy and Hold Portfolio (50/50 stocks and bonds, with half the equities in small cap blend and small cap value) but for more conservative investors a more traditional balanced fund is probably more comfortable. What we are trying to do is develop portfolios with fewer moving parts. I suspect the 2 fund strategy will have different funds for 25 to 65 and another 2 for those over 65. Of course there are no 2 funds that work for everyone.

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Re: Paul Merriman 2 Funds for Life

Post by MotoTrojan » Fri Oct 26, 2018 10:31 pm

paul merriman wrote:
Fri Oct 26, 2018 10:10 pm
Hi Garland,
At 75 I still hold a traditional Ultimate Buy and Hold Portfolio (50/50 stocks and bonds, with half the equities in small cap blend and small cap value) but for more conservative investors a more traditional balanced fund is probably more comfortable. What we are trying to do is develop portfolios with fewer moving parts. I suspect the 2 fund strategy will have different funds for 25 to 65 and another 2 for those over 65. Of course there are no 2 funds that work for everyone.
Hi Paul, what is the rationale in your Ultimate Buy and Hold Portfolio for splitting between small blend & value, rather than 100% value?

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Re: Paul Merriman 2 Funds for Life

Post by paul merriman » Sat Oct 27, 2018 12:23 pm

The reason I include small cap blend with small cap value is to have some growth in the portfolio. It's the same reason I have bonds, along with stocks in the portfolio. I have to be sensitive to the fact that I don't know anything about those who are reading and possibly following my lead. There is such a big difference between being someones personal investment advisor and giving somewhat generic advice. It's probably the same for Vanguard and their decision to have 10% of a 20 year olds target date fund in bonds. I suspect they would rather have it all in equities.

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Re: Paul Merriman 2 Funds for Life

Post by crystalbank » Sat Oct 27, 2018 1:19 pm

Thanks for posting this. Quite an illuminating discussion and even though I had a Small Cap tilt in my portfolio, never really looked at this way. This 2-fund approach is quite remarkable and will definitely look more into this.

Also, I wonder how this approach will work if you have significant assets in taxable rather than tax advantaged? I presume your tax-advantaged accounts will be all TDF and some of your taxable will also be TDF.

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Re: Paul Merriman 2 Funds for Life

Post by 2pedals » Sat Oct 27, 2018 1:28 pm

paul merriman wrote:
Fri Oct 26, 2018 10:10 pm
Hi Garland,
At 75 I still hold a traditional Ultimate Buy and Hold Portfolio (50/50 stocks and bonds, with half the equities in small cap blend and small cap value) but for more conservative investors a more traditional balanced fund is probably more comfortable. What we are trying to do is develop portfolios with fewer moving parts. I suspect the 2 fund strategy will have different funds for 25 to 65 and another 2 for those over 65. Of course there are no 2 funds that work for everyone.
Thank you Paul
I enjoyed your video with Chris Pedersen.

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Re: Paul Merriman 2 Funds for Life

Post by BroIceCream » Tue Oct 30, 2018 11:37 pm

Murgatroyd wrote:
Fri Oct 26, 2018 8:43 am
... looking back doesn’t always translate to future investment returns. Much is written about a current decline in entrepreneurship, which surely impacts small business IPO’s. If it’s true then heavy allocation to SCV may not be wise.

It seems to me the total market is a better bet.
If one is simply adding more total Market, just pick a TDF with a longer glide slope -- most TDF's have large cap total mkt for their core holding anyway so adding TotalMkt doesn't do anything but increase the % of an existing holding. The SCV is there to provide the tilt to some growth class that is under-represented in the TDF.

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Re: Paul Merriman 2 Funds for Life

Post by pascalwager » Tue Oct 30, 2018 11:58 pm

garlandwhizzer wrote:
Fri Oct 26, 2018 6:18 pm
Merriman's classic Ultimate Buy and Hold Portfolio had 10 different asset classes each held at a 10% weighting with considerable slants to value and size factors. I haven't listened to his podcast but this portfolio seems much less complex in comparison. For those of us who are older, as CABob points out, it essentially boils down to a TDF since 1.5 X age is greater than 100%. Merriman seems to be advocating reducing factor exposure and portfolio complexity for older adults. TDF is perhaps the simplest way to go, a no brainer for those who don't want to spend a lot of time and effort trying to create the perfect portfolio, an effort that for most of us fails to achieve its goal.

Garland Whizzer
I read Chris Pedersen's two-fund study and the zero small value at age 65 isn't about addressing cognitive decline, but rather eliminating the risk of small value poor performance for a decade or more during and too close before retirement. Also, he includes some alternative portfolios that use various amounts of SV, but don't rebalance--or use large value or a LV/SV combination instead of just SV.

Along with Paul's M-1 glide path funds, they're trying to provide as many investors as possible a means of using target date funds but with reduced bond percentages for ages 25 to 40.
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Re: Paul Merriman 2 Funds for Life

Post by pascalwager » Wed Oct 31, 2018 12:12 am

CABob wrote:
Fri Oct 26, 2018 2:33 pm
spdoublebass wrote:
Thu Oct 25, 2018 10:49 pm
He came out with a 2 Fund portfolio.

https://paulmerriman.com/2-funds-for-life/

Basically it's 1.5 X your age in a TDF, and the remaining in SCV.
How do I invest 115 % in a TDF? :confused
I didn't listen to the podcast so I assume my answer is there. :oops:
At age 76 (me too), you would be 100% TDF--but a TDF whose value was presumably greatly increased by decades of SV (expected) high performance. I do still have about 2% of equities SV (US deciles 6-10). I had a lot more SV, but converted most of it to bonds as part of a larger stocks-to-bonds conversion in recent years.
Preferred AA: Total US and foreign stock markets and short-term Treasury fixed income

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Paul merriman 2 fund solution

Post by lslurpeek » Mon Nov 05, 2018 7:06 pm

Have anyone heard of Paul merrimens 2 fund solution. There are a few different versions but most take your age times it by a number and that should be the % in us small cap value, the rest goes in vanguard target date retirement. More goes into target date retirement as you get older.

I would like to hear peoples thoughts.

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Re: Paul merriman 2 fund solution

Post by Dottie57 » Mon Nov 05, 2018 7:14 pm

lslurpeek wrote:
Mon Nov 05, 2018 7:06 pm
Have anyone heard of Paul merrimens 2 fund solution. There are a few different versions but most take your age times it by a number and that should be the % in us small cap value, the rest goes in vanguard target date retirement. More goes into target date retirement as you get older.

I would like to hear peoples thoughts.
A link for an explanation please!

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Re: Paul Merriman 2 Funds for Life

Post by lslurpeek » Mon Nov 05, 2018 7:18 pm

I think this is an awesome plan that is easy to implement. I've been trying to replicate his strategy but with all ETFs it's really hard to get the % right. This plan makes more sense to me.

I'm considering going 125- age x 2.5 in scv and the rest in target retirement. When the scv gets to 30% I'll go 30 scv 70 target retirement and staying there as I'll have a teacher pension that will replace 85% of my income.

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Re: Paul merriman 2 fund solution

Post by One Ping » Mon Nov 05, 2018 7:44 pm

Dottie57 wrote:
Mon Nov 05, 2018 7:14 pm
lslurpeek wrote:
Mon Nov 05, 2018 7:06 pm
Have anyone heard of Paul merrimens 2 fund solution. There are a few different versions but most take your age times it by a number and that should be the % in us small cap value, the rest goes in vanguard target date retirement. More goes into target date retirement as you get older.

I would like to hear peoples thoughts.
A link for an explanation please!
https://paulmerriman.com/2-funds-for-life/
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Re: Paul merriman 2 fund solution

Post by oldcomputerguy » Mon Nov 05, 2018 8:00 pm

Here is another thread discussing this here.

viewtopic.php?t=262367
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Re: Paul Merriman 2 Funds for Life

Post by LadyGeek » Mon Nov 05, 2018 8:08 pm

I merged lslurpeek's thread into a similar discussion.
lslurpeek wrote:
Mon Nov 05, 2018 7:18 pm
I think this is an awesome plan that is easy to implement. I've been trying to replicate his strategy but with all ETFs it's really hard to get the % right. This plan makes more sense to me.

I'm considering going 125- age x 2.5 in scv and the rest in target retirement. When the scv gets to 30% I'll go 30 scv 70 target retirement and staying there as I'll have a teacher pension that will replace 85% of my income.
In order to give appropriate advice, it's best to keep all the information in one spot. I suggest you post your questions in your original thread: Small cap value tilt

Don't worry that it's a few months old. The point is that the information is together, which makes it much easier for us to help you. We can help you with the Paul Merriman portfolio there as well.
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Confused about TDF choice

Post by Socrates28 » Mon Nov 05, 2018 11:40 pm

so if I use the Vanguard TDFs (e.g., TDF 2035), I am locked into the International fund and International Bonds.....not a real big fan of international bonds and so much international. Are there other TDFs that may be better that emphasize diversity, low cost maybe without some much international and especially international bonds????

Thank you.

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Re: Paul Merriman 2 Funds for Life

Post by TheOscarGuy » Tue Nov 06, 2018 7:16 am

spdoublebass wrote:
Thu Oct 25, 2018 10:49 pm
Just curious if anyone caught Paul Merriman's latest Podcast. I always find him interesting.

He came out with a 2 Fund portfolio.

https://paulmerriman.com/2-funds-for-life/

Basically it's 1.5 X your age in a TDF, and the remaining in SCV.
Without opening this thread I could tell a major portion would be small cap value. His podcast was interesting at one point, now it seems he is just saying the same thing over and over to make a point (SCV is the way to go, if I can help a young guy get started on it he would see far superior gains than total stock market index).
There are existing threads here on whether or not the premium on SCV is dead when adjusted for added risk.

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Re: Confused about TDF choice

Post by vineviz » Tue Nov 06, 2018 7:20 am

Socrates28 wrote:
Mon Nov 05, 2018 11:40 pm
so if I use the Vanguard TDFs (e.g., TDF 2035), I am locked into the International fund and International Bonds.....not a real big fan of international bonds and so much international. Are there other TDFs that may be better that emphasize diversity, low cost maybe without some much international and especially international bonds????

Thank you.
Vanguard TDFs are among the most intelligently diversified funds available. [OT comment removed by admin LadyGeek]
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Re: Paul Merriman 2 Funds for Life

Post by paul merriman » Wed Nov 07, 2018 7:44 am

Hi Paul, what is the rationale in your Ultimate Buy and Hold Portfolio for splitting between small blend & value, rather than 100% value?

At 75 I don't want to put all my assets in stocks as my risk tolerance doesn't allow it. So, I'm 50/50 stocks and bonds. While I'm okay with an value equity portfolio for a first time investor, I'm more comfortable with a combination of blend and value at my age. Too much value is not likely to do well in a catastrophic decline. All value worked well for those who could dollar cost average from 1929 through 1938 but was terrible for the lump sum investor. My dollar cost averaging days are long gone. By combining blend with value there is a significant overweighting to value.

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Re: Paul Merriman 2 Funds for Life

Post by paul merriman » Wed Nov 07, 2018 8:07 am

2 Funds for Life was developed for the first time investor. I think most first time investors should put their money into target date funds for the rest of their life. A small percentage should probably add another asset class or two, with the hope that value and small are asset classes that really will produce a premium return. I never expected Bogleheads to be attracted to the strategy but I did hope Bogleheads would recommend it to their children and grandchildren. But if our children and grandchildren are good savers and only invest in a target date fund I think they will end up with "enough>" Jack Bogle and Vanguard are very clear in their comments and literature, the target date funds are not built for maximum return, they are built to have enough at retirement. My work is focused on saving and investing with a goal of having more than enough. There is nothing wrong with having "enough" but one can do a lot more for others when they have "more than enough."

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Re: Paul Merriman 2 Funds for Life

Post by Small Law Survivor » Wed Nov 07, 2018 11:01 am

I'm wondering whether Total World + Small Cap Value isn't a better blend? it would get rid of the 10% bonds that the long target date funds have. I realize it would not adjust automatically with time, but that could easily be accommodated by introducing a total bond market or intermediate treasury as a third fund on some predetermined schedule. Yes, it would be a little more complicated to manage, but it might be worth it.

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Re: Paul Merriman 2 Funds for Life

Post by azanon » Wed Nov 07, 2018 11:10 am

Serious comment - I can't help but wonder if the reason LC Growth has been so awesome the past 10 years or so, is because over that period of time is when SC Value, or the rise of factoring, became so popular. I think the (stock) market tries to make the most fools possible out of all of us collectively.

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Re: Paul Merriman 2 Funds for Life

Post by bikechuck » Wed Nov 07, 2018 11:15 am

Paul, if you are still monitoring this thread I wanted to say thank you for the work that you do. I have listened to many of your podcasts and found them to be informative and they have helped me construct my portfolio.

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Re: Paul Merriman 2 Funds for Life

Post by garlandwhizzer » Wed Nov 07, 2018 11:41 am

I think Paul's 2 Funds for Life is a great idea. For 30 years I have invested to maximize total return, a strategy which has gone through alternating cycles of outperformance and underperformance relative to a TDF. I'm now 71 and with the passing of every year now, the appeal gets stronger to me for simplicity, low cost, and diversification with both SCV and TSM in the US equity. My time horizon is not infinite and I can't wait for another decade or two for a 100% factor portfolio to reward my patience. I do not believe in putting all my eggs into one basket, be it factor or cap weight index. Owning both may not be optimal for long term return but it will certainty produce satisfactory returns and it smoothes out the ride a bit. Paul Merriman's idea is IMO a very sound approach, particularly for those who want to do something with their lives other than the never ending quest to find the perfect portfolio.

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Re: Paul Merriman 2 Funds for Life

Post by donaldfair71 » Wed Nov 07, 2018 12:32 pm

paul merriman wrote:
Wed Nov 07, 2018 8:07 am
2 Funds for Life was developed for the first time investor. I think most first time investors should put their money into target date funds for the rest of their life. A small percentage should probably add another asset class or two, with the hope that value and small are asset classes that really will produce a premium return. I never expected Bogleheads to be attracted to the strategy but I did hope Bogleheads would recommend it to their children and grandchildren. But if our children and grandchildren are good savers and only invest in a target date fund I think they will end up with "enough>" Jack Bogle and Vanguard are very clear in their comments and literature, the target date funds are not built for maximum return, they are built to have enough at retirement. My work is focused on saving and investing with a goal of having more than enough. There is nothing wrong with having "enough" but one can do a lot more for others when they have "more than enough."
This really hammers home a point that I hear you, Bogle, Ferri, basically everyone who knows anything harps home consistently. That is, we sit here and worry about tilts/complexity/etc., while the important thing isn't the tilt but rather, how well you stick to a plan through months/years/decades of underperforming the broad market. Sometimes, the "long run" is really, really long! A lot of investors hop off, much to their own detriment, long before the fruits of a tilt can really show up.

This two fund approach, with one tilt that is easily balanced and rebalanced, likely provides the novice at least some hope of not panicking in a period of not performing with the broad market. It wouldn't be for me, as I would still tinker with it too much. But I like the idea of it.

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Re: Paul Merriman 2 Funds for Life

Post by goblue100 » Wed Nov 07, 2018 2:23 pm

Small Law Survivor wrote:
Fri Oct 26, 2018 7:57 am
Funny thing is, I'm trying to help my 24 year old daughter with investing. I've helped her fund a Roth IRA that's up to $25,000 now. It has been invested 100% in a Vanguard TDF, but I wanted to come up with a simple investment strategy that she could follow for life if she wanted to, and it was 80% TDF plus 20% small cap value.

Merriman has been teasing his listeners on his two-fund portfolio for a month or two, and I anticipated it would be just this.
Lol, we must be twins. My 24 yo daughter is in a Roth that I helped her start. She is lagging your daughter by about half, but it is split 75% TD 2060 and 25% small cap value index fund. Good to know I'm not alone!
Can't take it with you when you're gone | But I want enough to get there on - Rollin with the flow - Jerry Hayes

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Re: Paul Merriman 2 Funds for Life

Post by Nickel & Dime » Wed Nov 07, 2018 4:23 pm

Small Law Survivor wrote:
Wed Nov 07, 2018 11:01 am
I'm wondering whether Total World + Small Cap Value isn't a better blend? it would get rid of the 10% bonds that the long target date funds have. I realize it would not adjust automatically with time, but that could easily be accommodated by introducing a total bond market or intermediate treasury as a third fund on some predetermined schedule. Yes, it would be a little more complicated to manage, but it might be worth it.
First time post/long time lurker/self proclaimed rookie here! First time I’ve seen this portfolio mentioned, but that is what I sort of have settled on as a portfolio/allocation, after inefficiently trying a few on “for size”. Total world with scv, and a sliver of a long/short treasury bond barbell with the money market brokerage for the “short” part. So only three funds (not including money market), which still seems relatively simple to me...

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Re: Paul Merriman 2 Funds for Life

Post by pascalwager » Thu Nov 08, 2018 1:13 am

Nickel & Dime wrote:
Wed Nov 07, 2018 4:23 pm
Small Law Survivor wrote:
Wed Nov 07, 2018 11:01 am
I'm wondering whether Total World + Small Cap Value isn't a better blend? it would get rid of the 10% bonds that the long target date funds have. I realize it would not adjust automatically with time, but that could easily be accommodated by introducing a total bond market or intermediate treasury as a third fund on some predetermined schedule. Yes, it would be a little more complicated to manage, but it might be worth it.
First time post/long time lurker/self proclaimed rookie here! First time I’ve seen this portfolio mentioned, but that is what I sort of have settled on as a portfolio/allocation, after inefficiently trying a few on “for size”. Total world with scv, and a sliver of a long/short treasury bond barbell with the money market brokerage for the “short” part. So only three funds (not including money market), which still seems relatively simple to me...
Total World is the way to go--or better yet, use the two Vanguard US and int'l total market funds: cheaper and more stocks. You can use the two index fact sheets to determine the last quarter ending market values and then go to Yahoo Historical Data to get the adjusted closing prices for the current date. You only need to do this annually or even only every few years to readjust back to market proportions. Or just go 50/50 forever. But Total World will do and the ER will probably come down as it grows.

Adding small value is just making a bet. The researchers don't have crystal balls or time machines, unfortunately. You might just as well use small growth instead, or maybe mid-cap blend, or large growth.

If you look at my signature, you'll see tilts to DFA value and size. These allocations would be difficult to convert. They were provided by advisors from a lump sum investment back in 1995, but I've tried to get closer to a market allocation with the 17% portion which came from a rollover of my former workplace investments. I may even change some of the total market funds (only in tax-sheltered accounts) to large growth funds to further reduce the unwanted tilts--bets that I don't wish to make.

But if you really want to bet on small value, that's fine, as long as you acknowledge that it's just a bet and that no one, even the highly intelligent and dedicated researchers, can predict future asset class winners.
Preferred AA: Total US and foreign stock markets and short-term Treasury fixed income

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aj76er
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Re: Paul Merriman 2 Funds for Life

Post by aj76er » Fri Nov 09, 2018 10:01 am

pascalwager wrote:
Thu Nov 08, 2018 1:13 am
Total World is the way to go--or better yet, use the two Vanguard US and int'l total market funds: cheaper and more stocks. You can use the two index fact sheets to determine the last quarter ending market values and then go to Yahoo Historical Data to get the adjusted closing prices for the current date. You only need to do this annually or even only every few years to readjust back to market proportions. Or just go 50/50 forever. But Total World will do and the ER will probably come down as it grows.
Or look up "VT" on Vanguard's website and the country% is listed near the bottom of the the Portfolio page. Then rebalance to US% and (1-US%) for your US and xUS funds. I believe the Vanguard page is updated monthly. But I agree that this only needs to be done once a year (or less) for existing holdings.
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle

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aj76er
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Re: Paul Merriman 2 Funds for Life

Post by aj76er » Fri Nov 09, 2018 10:11 am

SCV has an impressive back tested record. The likely-hood of outperformance of SCV over long time periods is shown to be pretty similar to that of market beta relative to bonds.

The one thing I question is that if you go back even 20 years or so, buying a SCV was a radically different thing than it is today. There was a liquidity premium and a barrier of entry that simply doesn't exist today.

Thus I think there is still some slightly uncorrelated movement due to size and leverage effects, but moving forward, I'm skeptical that most investors can capture any sort of risk premium after higher E/Rs, trading costs, and (potential) behavioral errors are factored in.
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle

pascalwager
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Re: Paul Merriman 2 Funds for Life

Post by pascalwager » Sat Nov 10, 2018 2:20 am

aj76er wrote:
Fri Nov 09, 2018 10:01 am
pascalwager wrote:
Thu Nov 08, 2018 1:13 am
Total World is the way to go--or better yet, use the two Vanguard US and int'l total market funds: cheaper and more stocks. You can use the two index fact sheets to determine the last quarter ending market values and then go to Yahoo Historical Data to get the adjusted closing prices for the current date. You only need to do this annually or even only every few years to readjust back to market proportions. Or just go 50/50 forever. But Total World will do and the ER will probably come down as it grows.
Or look up "VT" on Vanguard's website and the country% is listed near the bottom of the the Portfolio page. Then rebalance to US% and (1-US%) for your US and xUS funds. I believe the Vanguard page is updated monthly. But I agree that this only needs to be done once a year (or less) for existing holdings.
At a minimum, this will introduce a 15-day data time lag--and only if you make the adjustment no later than the 15th of the month.
Preferred AA: Total US and foreign stock markets and short-term Treasury fixed income

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