Sound Investing Bootcamp #4 |Fine-Tuning Your Asset Allocation for Retirement & Long-Term Growth
Feb 25, 2026
They analyze historical stock vs bond mixes from 1970–2025 using fine‑tuning tables. They highlight worst multi‑month and multi‑year drawdowns and how different allocations weather crises. They compare S&P 500 results to diversified four‑fund and other equity blends. They discuss tradeoffs between returns and volatility, the role of costs and taxes, and how to pick an equity mix for retirement or accumulation.
AI Snips
Chapters
Transcript
Episode notes
Equities Dominate Bonds For Long Term Growth
- Equities have historically outperformed bonds massively for long-term retirement savers.
- Paul Merriman cites $100 in bonds vs $100 in S&P 500 and small-cap value from 1928 showing orders-of-magnitude higher equity growth, making equities the long-term choice.
Sequence Risk Can Break All Equity Retirees
- Large multi-year drawdowns can devastate an all-equity retiree who is withdrawing funds annually.
- Paul points to worst 60-month S&P 500 annualized loss of 6.7% and explains 5% withdrawals plus compounded losses could quickly deplete assets.
Use Bonds To Smooth Volatility And Avoid Panic
- Reduce portfolio volatility by adding bonds; more bonds lower returns but cut downside losses.
- Paul shows 50/50 in 1973-74 and 2000-2002 had much smaller annual losses than the S&P 500, helping retirees avoid panic.