In this special episode, Paul Merriman reflects on six decades of financial evolution, sparked by his son's 60th birthday. He draws fascinating comparisons between life and investing in 1965 and today, offering invaluable insights for every investor.

What You'll Learn:

A Look Back at 1965: Paul revisits societal norms, income levels, and the investing landscape of 60 years ago, including startling facts about mutual fund loads and stock commissions.

The Evolution of Investing: Understand the monumental shift from individual stock picking to the dominance of mutual funds and the revolutionary impact of index funds since their inception.

Market Returns & Bear Markets: Gain perspective on historical S&P 500 returns, including adjustments for inflation, and a review of major bear markets over the past decades.

The Power of Low Costs: Discover how investment costs, from loads to commissions, have drastically reduced, making it easier and more affordable for today's investors.

Modern Investment Tools: Paul highlights the advent of crucial financial tools like IRAs, 401(k)s, and target-date funds that weren't available in 1965, empowering today's investors.

Academic-Driven Investing: Explore the rise of academic influence in investing, with a focus on firms like Vanguard, DFA, and Avantis, and why their approach offers a trustworthy path to your financial future.

The Role of AI in Your Financial Journey: Paul shares his perspective on how Artificial Intelligence can empower investors to make informed decisions and find reliable financial guidance.

Top Financial Education Resources: Learn about the highly recommended (and free!) "Rebel Finance School" by Alan and Katie Donoghan for new investors, and explore how to access financial literacy programs like iGrad.

The Importance of Financial Literacy: Paul emphasizes that financial literacy is often overlooked in traditional education and is essential for building a robust portfolio that will support you for a lifetime.

DIY Investing Philosophy: Paul reaffirms his core mission as a teacher, empowering listeners to "do it yourself" and build their financial future with confidence.

Truth Tellers: Paul asked our listeners for recommendations for Truth Tellers as well as providing the list of our Truth Tellers in the show notes.

Our Truth Tellers

William J. Bernstein

Ben Carlson, CFA

Jonathan Clements, Financial Writer/Author

Larry Swedroe, Author, Speaker, Chief Research Officer

Dr. James Dahle, MD and the founder of The White Coat Investor

Morningstar – Christine Benz and John Rekenthaler, Financial Writers

Stan The Annuity Man, Annuity Expert

George Sisti, Certified Financial Planner®

Rob Berger, podcaster, writer and author

Tim Ranzetta, ngpf.org

Two Cents

Tom Cock and Don McDonald Vestory

Ben Felix

Don't miss this insightful episode filled with historical context, practical advice, and forward-looking strategies for your wealth-building journey.

A Very Special Birthday and an investment choice forever 54:09 Share

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Shownotes Transcript

A Very Special Birthday and an investment choice forever