DFA & Avantis ETFs: Building the Ultimate Lifetime Equity Strategy

Q&A HighlightsHow does a 4-fund portfolio compare to a 10-fund portfolio?What is the best way to invest for a child’s future?Is it too late to use a diversified strategy like the 10-fund portfolio at age 50?Can I create and test my own custom portfolio using your tools?How should I invest during periods of inflation or uncertainty?What are some recommended fund options available at Schwab?Is a portfolio combining large-cap value and small-cap blend a good approach?Are there good alternatives to intermediate-term bonds?Who are some trustworthy voices in personal finance and investing?What is your opinion on separately managed accounts (SMAs)?Key TakeawayLong-term investment success is driven by asset allocation, discipline, and consistency—not complexity. A simple, well-structured portfolio that you can maintain through market cycles is often the most effective approach.Listen to the individual questions here.

Paul Merriman is dedicated to helping do-it-yourself investors build portfolios they can stick with for life. In this episode, he shares what he believes is the closest thing to a perfect long-term equity strategy he's ever seen.Paul traces the evolution of index investing — from John Bogle's cap-weighted S&P 500 funds to the academic research of Fama and French, whose factor-based work showed that small cap value, large cap value, and other equity asset classes have historically outperformed the broad market over time.For years, the best factor-based funds from Dimensional Fund Advisors (DFA) were only available through select advisors. That changed when Avantis launched its ETF lineup in 2019, followed by DFA's own ETFs — putting institutional-quality, factor-based investing within reach of every self-directed investor.Paul introduces a recommended ETF list spanning 10 equity asset classes across both fund families, explains the key differences between DFA and Avantis, and makes the case for owning both. He also covers where to buy them and why Fidelity's fractional shares make it easy to start with any dollar amount.Key topics: Factor-based vs. traditional index funds · Accessing DFA and Avantis ETFs · The case for owning both · Simplifying rebalancing with M1 FinanceThe Q&A Paul references was recorded separately.

In this episode, we explore how flexible (variable) withdrawal strategies can strengthen your retirement plan—and why fixed, inflation-adjusted withdrawals may increase risk over time.Using detailed distribution tables—including Table F1.3 (flexible withdrawals) and comparisons to Table D1.3 (fixed withdrawals)—Paul walks through real historical outcomes across decades to show how adjusting withdrawals based on market performance can improve long-term results.You’ll learn:Fixed vs. flexible withdrawal strategiesInsights from Tables F1.3, F1.4 vs. D1.3, D1.4How flexibility helps defend against bear marketsThe role of diversification and low-cost investingWhy oversaving creates powerful financial freedomIf you’re planning for retirement or already taking withdrawals, this episode may offer a smarter, more adaptable approach to generating income.Watch YoutubeBoot Camp 7 page

In Boot Camp #6, Paul Merriman walks through real historical data starting in 1970 to test what happens when retirees withdraw 3%, 4%, or 5% from a $1 million portfolio — adjusted for inflation — across some of the toughest market conditions in history.This episode covers:The difference between retiring with “enough” and “more than enough”How inflation quietly turns $30,000 into $130,000+ over 30 yearsWhat happens if you retire into a bear marketWhy 1% more in withdrawals can cost millionsS&P 500 vs. a globally diversified four-fund strategyHow diversification impacts lifetime income and legacy outcomesThe real risk of sequence of returns in retirementWhy some portfolios ran out of money — and others didn’tYou’ll hear side-by-side comparisons of:100% S&P 500 portfolios40/60, 50/50, and 60/40 stock-bond mixesA worldwide four-fund equity strategyFixed inflation-adjusted withdrawals over 30 yearsThe results may surprise you — especially when comparing 3%, 4%, and 5% withdrawal rates.If you're approaching retirement, already retired, or helping someone make distribution decisions, this episode breaks down the numbers in plain English and shows how small choices can create million-dollar differences.Next week: the strategy Paul considers the very best distribution method — for investors who retire with more than enough.Watch Video HereCatch up on the previous Boot Camp 2026 here

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 sessionInvesting as building a business (the “portfolio mortgage” analogy)Starting with $83/month and increasing contributions by 3% annuallyUnderstanding the fine-tuning tables and historical market returnsS&P 500 vs. 60/40 portfolio: balancing growth and volatilityThe Worldwide Four-Fund Portfolio and the benefits of deeper diversificationHow sequence of returns impacts accumulation and withdrawalsWhy you rarely notice individual company failures inside diversified fundsThe long-term advantage of Roth IRA / Roth 401(k) compoundingStaying disciplined through crashes, recessions, and sideways marketsWatch Video

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 investingHow the S&P 500 compares to diversified strategies like the Four-Fund portfolioThe real impact of worst-case drawdowns (including 50%+ bear markets)What happens to a 100% stock portfolio during retirement withdrawalsHow 50/50, 60/40, and other stock-bond allocations reduce volatilityWhy median returns matter — and why averages can misleadHow to control risk through asset allocation, low costs, tax efficiency, and index investingWe 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 allocationsWhether 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-2026To 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 lifetimeBonds are designed for safety — not wealth creationEquity asset classes behave very differently from year to yearDiversification across asset classes smooths volatility and improves outcomesTrying to “pick winners” is a losing game — and why owning the whole market worksThis 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.

Sometimes the best moments are the unexpected ones. This week brought one of those moments when Daryl Bahls delivered an extraordinary surprise: access to every table used across our entire investing Boot Camp Series — months of work, ready ahead of schedule.That gift makes it possible to move forward faster, including setting up pages for the upcoming Series and potentially releasing the tables before all the podcasts and articles are complete.The White Coat Investor: 150+ Portfolios That WorkWe revisit the White Coat Investor article “150 Portfolios Better Than Yours” (now over 200 portfolios), originally published in 2014.The key lesson:There is no single “best” portfolio — most of the portfolios are legitimate and effective. What matters most is:Choosing a sound portfolioUnderstanding why it worksStaying the course over decadesEarly success can be misleading, but the portfolio you choose in the beginning can mean millions of dollars more in the long-term.Why Portfolio Design Matters So MuchUsing historical data going back to 1970, we explore how different strategies produce dramatically different outcomes over time:S&P 500 only vs. globally diversified portfoliosMulti–asset-class investingValue-focused portfolios (U.S. and international)Even small starting amounts can lead to large differences over a lifetime.What We Do — and What We Don’t Do To Help Investors We are:Focused on educationDedicated to do-it-yourself investorsGrounded in academic research and evidence-based investingWe are not:Financial plannersEstate plannersTax advisorsOur goal is to help investors build portfolios they can trust through good markets and bad — with the potential to land in the top 5–10% of long-term outcomes.Preview: The 10-Part Boot Camp SeriesOver the coming weeks, we’ll release a comprehensive boot camp covering:Stocks vs. Bonds — why this decision alone can be a $10 million differenceEquity Asset Class Selection — based on academic research, not trendsSimple Sound Investing Portfolios — small, powerful, manageableAdding Bonds Intelligently — controlling risk without killing returnsLong-Term Contributions — what steady investing really looks likeFixed Withdrawal Strategies — taking distributions when you retire with only "enough"Flexible Withdrawal Strategies — especially for those who’ve oversavedTarget-Date Funds & Glide Paths — with added diversification insightsETF Selection — why DFA and Avantis may help investors stay the courseInvesting for Children & Newborns — including new retirement account considerationsEach topic will eventually include:A podcast episodeA written articleSupporting data tablesDaryl has now produced 247 educational tables, all designed to support smarter portfolio decisions.  You will see all of them during the 10 week series.