Sound Investing Boot Camp #9 - 2 Funds for Life and Target-Date Funds
May 13, 2026
Chris Petterson, investment strategist who co-created Two Funds for Life and Merriman glide-path tools. He explains what target-date funds do and their glide paths. He outlines shortcomings of one-size-fits-all TDFs and shows how adding a small‑cap value tilt can boost diversification. Several 2FFL approaches are presented, from a simple 90/10 tweak to moderate and aggressive ramp strategies.
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Paul's Investing Origin Story
- Paul credits his father-in-law Boris Rubens for sparking his interest in the stock market at age 19.
- That early influence shaped Paul's career and commitment to investor education over decades.
How Target Date Funds Work And Why They Help
- Target-date funds offer a one-fund-for-life approach that automatically shifts from equities to bonds as you near retirement.
- Morningstar shows median glide paths start ~90% equities early, tapering to ~45% at retirement, improving young savers' returns.
Glide Paths Define Risk Over Your Lifetime
- Glide paths determine equity percentage by years-to-retirement and industry median now holds ~90% equities out to ~30 years before retirement.
- By retirement the median falls to ~45% equity, then continues declining in retirement years.
