January 13, 2021

How do you invest in retirement when interest rates are so low? And 7 other important questions.

1 hour 21 minutes

Paul introduces Don McDonald, Co-Founder of Vestory Investment Advisory and co-host of "Talking Real Money" podcast, who will be producing “money minutes” for most of our podcasts. Don also produced the soon-to-be-released audio version for our latest book, We’re Talking Millions!.

Paul discusses the upcoming Retiremeet America 2021 free online conference on Feb. 20, 8:00 a.m.-1:00 p.m. PT. See the list of speakers, topics, speaking times and registration form at https://retiremeet.com Paul and David Booth, Co-Founder of Dimensional Fund Advisors, are keynoting the conference.

Before addressing the Q&A's Paul discusses an article, “Deep Risk in the United States of America,” by Ben Carlson. Ben is on Paul’s list of Truth Tellers and highly recommends Ben's articles and podcasts at https://awealthofcommonsense.com/.

Larry motivates Paul to discuss the question: What changes should a pre-retiree make to their portfolio when they have saved enough to retire, even though they are planning to work longer? 19:00

What asset allocation should I have when I reach retirement but don’t need the money to live on? 23:40

How would you suggest someone who is currently in cash get back into the market? 31:22

Don McDonald’s “Talking Real Money” — The risks in owning bonds

With bond yields so low do you expect retirement returns to be significantly lower than in your tables? 38:57

In a recent newsletter we mentioned a presentation by Barry Schwartz, author of The Paradox of Choice. The focus of the presentation was what happens when people are offered too many choices. We linked to a college presentation that got into other topics not of interest to us. Here is a shorter presentation and very popular TED Talk with over 15 million views: https://www.ted.com/talks/barry_schwartz_the_paradox_of_choice?language=en 45:10

In your 2012 book, First Time Investor, you were not in favor of target date funds. What has changed that you now recommend them? 60:40

Do you really think the S&P is going to beat Berkshire Hathaway over the next 10 years? 57:45

I know an investment advisor who made 29% a year over the last 2 years and he has all of his own money in the portfolio he wants me to use —individual stocks, not index funds. Is this investment philosophy a fool's errand and am I falling for a siren’s song? 1:06:35

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By Paul Merriman

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