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Bootcamp #3 Sound Investing Portfolio Performance: 2024 Update
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- เผยแพร่เมื่อ 18 ส.ค. 2024
- Paul opens the video suggesting that watching the first 2 parts of the Boot Camp Series prior to watching this video should be helpful. Here are links to "Stocks vs. Bonds: The $20 Million Decision” • Bootcamp #1 Stocks vs ... and “The Ultimate Buy and Hold Investment.” • Bootcamp #2 The Ultima...
On this video Paul starts by reviewing the construction of the 9 Sound Investing Portfolios on table H1a - irp.cdn-websit...
On Table H2a he reviews the 54 year returns on a $10,000 in each of the 9 portfolios. The returns do not include taxes but do reflect fund expenses. irp.cdn-websit...
Slide #6 focuses on 4 of the 9 portfolios. The purpose of this slide is to show investors how they might compare portfolios to determine which one or more portfolios will meet their needs. soundinvesting...
Slide H3a shows the annual returns of all 9 portfolios for the entire 54 year period. The suggestion is to focus first on how the different portfolios performed in the losing years. irp.cdn-websit...
Paul will be monitoring the TH-cam video and will respond to questions there.
Disclosures
Data Disclosure Notice - Funds (1970-Present) irp.cdn-websit...
Data Disclosure Notice - Indexes (1928-Present) irp.cdn-websit...
No matter how many times I may watch or frequently re-watch your presentations, I always pick up something new to learn. Thank you Paul!
What a nice comment! I have been making many of these presentations for almost 30 years. And my goal each year is to find another way to make the case as I have received it from the academic community. It is possible you a simply picking up something that is new to me as well. Thanks!
These are all wonderful presentations which lay a fantastic framework on how to look at investment performance… The benchmarks and methodologies presented here should be required for any investor. BRAVO!
Wow! What a great idea! I do wish that someone with much deeper pockets than our Foundation could provide these studies on a couple of hundred common asset allocations. I think it would be very helpful to see how they compare to the kind of portfolios Vanguard, Betterment, Fidelity, etc. recommend. It also might make investors realize that the results of all portfolios that contain some small cap value suggest it should be some part of the combination. This presentation was created by Daryl Bahls and I think he should get some kind of award.
I am thoroughly impressed with these. Wish there was something like this when I was in my 20's. Great job!
Paul, thank you for all the work you and your foundation people do to educate! In addition to using this for my own investing, I plan on watching this newest series with my young adult children so we can discuss.
Your content is making me smarter. I am feeling much more confident in picking index funds to rollover over my 401k money into since retiring in December 2023 You have cleared up a lot of questions that I had. Thanks again!
Thanks for another kind comment. I will be interested to see what you decide to do when you retire in December. By that time I suspect we will have answered some additional questions. Please drop me a note in December to let me know what your final asset allocation will be and what your glide path will be as you get older. This is a topic we will be addressing in the coming months.
Sorry that was a typo. I retired this past December. I just rolled over funds to individual IRA,I’m getting between 4.4% and 5.3% in MM and CDs until I jump back in. I think the pre-tax traditional IRA will be 60/40 probably 30% VTI 30% in one or two other equity index etf 40% total bond etf. As for the roth portion, I will be a little more aggressive. I’m in the learning stage. I’ve been a pharmacist for 35 years so it’s refreshing to learn something new. I’m only 58 so I’m not tapping into retirement funds yet. I will be looking forward to your videos. Thanks again!
This is really good stuff.. Thanks to Paul , Chris and Daryl for this tremendous work. It would be great if we can also put reasoning behind choosing BIC recommendations in that table.. why the fund was choosen for top recommendation and alternative recommendations.. as an example RPV did not give very good long term returns. the Index it tracks(s&p pure value) did not give good returns as compared to S&P value index(which alternative recommendations track). Also it has very low rating (1) on morningstar as compared to other funds and have very high expense ratio.where can I find reasoning behind choosing it in top list of BIC.
I am learning so much from you Mr. Merriman. Thank you for taking the time to teach others. I'm teaching my kids (ages 12, 10 and 8) about giving, saving, and investing and we have been applying these principles to their new custodial investment accounts. Thank you so much!
Teriffic update and presentation thanks for what you are doing.
Rather than look at performance over decades (starting at beginning of decade), I like to use "rolling returns" assuming I start every day/week/month, and look at 1-,2-,5-year returns from that starting point. For example, using monthly data, I'd have 50*12=600 starting points for determining returns. Then I can gather stats like medians to know which approaches work better than others, without worrying about starting at a good/bad time.
Paul, I have been searching the internet endlessly to learn more about responsible investing. This is the first series I came across that provides practical information presented by a knowledgeable individual who is not trying to take advantage of me. It is incredibly valuable, thank you for doing this!
I have a question: Given that the S&P 500 has reached its 20th all-time high for this year, what plan of action would you suggest for someone who wants to invest in the market? Buying in at this level seems daunting. Would you recommend spreading the purchase monthly over a year or two? Moreover, what should be done with the balance of funds while buying slowly? Should I invest in BIL or BILS ETF? I am concerned that their returns may start decreasing as the Fed lowers rates.
Thank you again for your time and insights!
Thanks Paul. What tool do you recommend for tracking portfolios? Most don't have a breakdown by LCV, LCB, etc.
Great video. Thank you very much. I am curious. The table used data from 1970. The longest running US SCV opened in 1993. 1/ Before then, which were some of the US SCV fund(s) used? 2/ Does it mean one has to switch to different US SVC funds over time? 3/ Using the longest running SCV DFSVX opened in 1993, it underperformed significantly 300% accum compared to sp500 1000% over 30 yrs, so was I missing something? Again, thank you very much.
Never mind and Thank you. I got the info from the links below the Bootcamp #3 video
Love the WW 4-Fund portfolio, but a lot of 401Ks don't have International Value or International Small Blend funds.
You should be able to get close to it with what you have. Take a look at his other videos and use a free website like portfolio viewer to model a mix of funds you do have you can also set up a Personal Roth IRA to fund the part you don’t have. Also send the video to your HR or other company representative or their investment plan sponsor and ask them how you can diversify their offerings, The 401 K they do have a fiduciary role or responsibility under ERISA. I believe they should have a Form 5500 plan document and they must provide you with a copy to read and review.
Also your plan may offer access to a group of additional funds. This feature is commonly called self direction. Also note that the U.S. 4 Fund Portfolio has about the same return and access to asset classes.
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What about expense costs? I can get an S&P index fund for near zero. Others are a bit more.
I hope you will take a look at the article and study that Chris Pedersen created. It is assumed that the higher expenses of asset classes are justified by the extra premium they have earned in the past. But, if the lower cost of the S&P 500 will help you "stay the course" over the long term, you should be fine. Remember, if we earn lower returns it may mean we have to work a little longer to reach our "retirement number." I worked to about 70 before I retired as I knew how much I wanted. I'm glad I did as I haven't had a second of concern that I might not have enough. That's the kind of decision that only we can make. And of course, even if we do make good decisions, that doesn't mean the market has the responsibility to give us what we want!
Here is a link that leads to several of Chris' articles and his recommendations. www.paulmerriman.com/best-in-class-etfs-update-2023#gsc.tab=0