Sound Investing

In Boot Camp #5 of 10, Paul delivers what he believes is the most important session in the series—especially for new and early investors (teens, 20s, 30s, and anyone just getting started).
Instead of treating investing like speculation, Paul reframes it as building—or buying—a business over decades.
Using clear, data-driven tables and “fine-tuning” comparisons, he walks through a simple, repeatable plan: start with $1,000 per year (about $83.33/month), increase contributions by 3% annually, and stay invested for 40+ years. You’ll see how long-term outcomes change based on asset allocation (100% stocks vs. 60/40 stocks and bonds), and why diversification can matter when markets go sideways.
Paul also compares an S&P 500-only approach with a globally diversified “worldwide four-fund” strategy (mixing U.S. and international, large and small, value and growth). Along the way, he explains the real power source in early investing: your contributions, not short-term market performance—and why tax-advantaged accounts like a Roth IRA or Roth 401(k) can dramatically increase the impact of compounding over a lifetime.
If you want a practical framework for long-term, low-cost, diversified investing, plus a clear-eyed discussion of volatility, sequence of returns, and retirement withdrawals (including the concept of a 5% annual withdrawal strategy), this episode lays the groundwork.
Why Paul believes this is the most important boot camp session

Investing as building a business (the “portfolio mortgage” analogy)

Starting with $83/month and increasing contributions by 3% annually

Understanding the fine-tuning tables and historical market returns

S&P 500 vs. 60/40 portfolio: balancing growth and volatility

The Worldwide Four-Fund Portfolio and the benefits of deeper diversification

How sequence of returns impacts accumulation and withdrawals

Why you rarely notice individual company failures inside diversified funds

The long-term advantage of Roth IRA / Roth 401(k) compounding

Staying disciplined through crashes, recessions, and sideways markets

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How much should you really have in stocks vs. bonds — and what happens when the market turns south with a vengence?
In Boot Camp #4, we break down the fine-tuning asset allocation tables that show exactly how different combinations of equities and bonds have performed from 1970 through 2025. This episode goes beyond average returns and dives into what investing actually feels like during the worst 3-month, 12-month, and 60-month market declines.
You’ll learn:
Why equities have historically dominated bonds for long-term retirement investing

How the S&P 500 compares to diversified strategies like the Four-Fund portfolio

The real impact of worst-case drawdowns (including 50%+ bear markets)

What happens to a 100% stock portfolio during retirement withdrawals

How 50/50, 60/40, and other stock-bond allocations reduce volatility

Why median returns matter — and why averages can mislead

How to control risk through asset allocation, low costs, tax efficiency, and index investing

We explore real historical data — including the 1973-74 bear market, the 2000-2002 tech crash, and the 2008 financial crisis — to help you understand both accumulation and retirement distribution phases.
Whether you're in your 20s building wealth, in your 50s preparing for retirement, or already retired and managing withdrawals, this episode helps you align your portfolio with your risk tolerance, return needs, and long-term financial goals.
If you want to be a confident do-it-yourself investor — without paying a 1% management fee — this episode gives you the framework to make informed decisions about stocks, bonds, diversification, and risk control.
Watch Boot Camp #4 video

Welcome to Bootcamp #3 of the Sound Investing Series with Paul Merriman — where real investing data meets practical long-term strategy. 📈 In this session, Paul breaks down the performance of diversified portfolios vs. the S&P 500 using decades of historical data going back to 1970. You’ll learn how different combinations of equity asset classes have performed in good markets, bad markets, and everything in between.
📊 What You’ll Learn in This Video:
• A deep dive into the Sound Investing Portfolios and how they work for DIY investors
• Historical returns of 2-, 4- and multi-fund strategies compared to the S&P 500
• Why diversification matters and how it can reduce risk and improve returns
• How different portfolios performed in tough decades like the 1970s and 2000s
• Practical takeaways for long-term investors, retirees, and those choosing equity allocations
Whether you’re a beginner or experienced investor, this Bootcamp episode gives you real numbers and evidence-based insights to help shape your portfolio strategy with confidence. 
💡 Topics Covered:
✔ Sound Investing Portfolios explained
✔ Risk vs. return comparison
✔ Historical performance of diversified portfolios
✔ The role of small-cap & value stocks
✔ Why a 2-fund strategy can compete with the S&P 500
✔ How to think about risk in real market conditions
🔗 Useful Resources & Tables - https://www.paulmerriman.com/sound-investing-portfolios-2026
To follow along with the charts, tables, and data Paul references during the presentation, check the pinned links and video notes.
📈 Perfect For:
✔ DIY investors
✔ Retirement planners
✔ Anyone curious about portfolio diversification
✔ Investors who want to avoid common mistakes
📩 Questions? Paul encourages you to leave comments and reach out — he often uses viewer questions in future episodes!
➡️ Don’t forget to subscribe for more deep-dive investing education and future Bootcamp episodes from the Merriman Financial Education Foundation: Paul Merriman’s mission is to help you make more money with less risk and more peace of mind.

In this second session of our 10-part Boot Camp series, we dive into the piece that’s helped shape decades of investing decisions: The Ultimate Buy & Hold Portfolio.
For nearly 30 years, this research—co-created with the late Rich Buck—has explored a simple but powerful question: What happens when you go beyond the S&P 500 and build a lifetime portfolio across 10 equity asset classes?
Starting with data back to 1970, we walk through the math of compounding, diversification, and disciplined rebalancing. You’ll see how adding small amounts of large value, small cap, REITs, international equities, and emerging markets historically increased returns—without meaningfully increasing risk. The result? A dramatic difference over time, powered by patience and structure.
Whether you’re new to these concepts or have followed this work for years, this episode breaks down the numbers, the lessons, and the real-world implications for long-term investors.
This recording is also a tribute to Rich Buck—an extraordinary collaborator whose work on this topic has reached millions of investors.
Download the tables and watch the video, follow along, and join us as we revisit one of the most impactful investing frameworks we’ve ever created—and set the stage for next week’s deep dive into the Sound Investing portfolios.

What if small decisions — just a half-percent here or an extra year there — could change your financial future by millions?
In this episode, we continue our annual Boot Camp series by tackling one of the biggest forks in the road investors face: stocks and bonds. Drawing on nearly a century of academic research and data, we break down what the math actually tells us about compounding, risk, diversification, and long-term returns.
You’ll hear why:
Tiny differences in returns can mean millions over a lifetime

Bonds are designed for safety — not wealth creation

Equity asset classes behave very differently from year to year

Diversification across asset classes smooths volatility and improves outcomes

Trying to “pick winners” is a losing game — and why owning the whole market works

This episode is educational, not personal advice — think of it as a roadmap that helps you ask better questions and make more informed decisions.
 Important: The tables and charts referenced in this episode are available in the PDF. Watching the companion video will make these concepts even clearer.
If you care about making smarter long-term decisions for yourself and your family — this is one to share.