Questions from Paula Pant

Sound Investing

While I was at the Bogleheads conference in Minneapolis earlier this year, I had a lengthy interview with Paula Pant.

I enjoyed the interview and found lots of questions and comments under the YouTube presentation that I wanted to answer.

While I wrote short comments on the site, I decided many of the questions were worthy of more discussion.Here is a link to the YouTube interview and podcast:

#1. “Most of my holdings are in cash as I cashed out last time the market went down. How do I stay invested and think long-term to help me ride out the ups and downs of the market?” 02:17

#2. “I’m just beginning my investment journey and planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns.” https://rethinking65.com/the-preference-for-dividend-paying-stocks-is-irrational/ 10:41

#3. "What Fidelity Funds do you recommend to build your 4 Fund Portfolio?" 15:00

#4. "How often do you recommend rebalancing the 4 Fund Portfolio?" 17:02

#5 "Nobody knows what’s going to happen next so we should practice some humility and CHOOSE a strategy with a long-term edge." What is the edge and what else do you need to know dividend stocks k? 21:02

#6. "I”m not looking to beat the S&P 500…I’m more than happy with the returns I get from it.” Does that mean it’s right for you? 24:36

#7. In response to Paul's recommendation of the 4 Fund Portfolio this is what one viewer said, “For what it's worth, backtesting shows his proposed fund portfolio does not do better than VTI or VOO.” Paul responds. 28:32

#8. "The only small cap value available in my 401k is DFSVX which has an expense ratio of .30%. Is this expense ratio too high? 32:32

#9. "Can you give ETF recommendations for all of the equity asset classes?" Here are the Best In Class recommendations. 35:23

#10. "How do you fund a Roth IRA when a child doesn’t have earned income?" #11. Please recommend more information on how I might adjust my 401k. We're talking millions and 2 funds for life. 36:37

#11 "Would you accomplish similar performance results by setting up a strategy using sector diversification instead of asset class diversification?" 40:01

#12 "I’m helping my 17 year old daughter with her Roth IRA. What do you think about shooting for an all equity 40/30/30 portfolio of US small cap value/S&P 500/Total International market?” 42:23

#13. “This guy has been pushing small cap value and underperforming for years. Sorry, no thanks." 44:25