BiggerPockets Money Podcast Paul Merriman’s 4-Step Portfolio Strategy for Long-Term Wealth
23 snips
Feb 17, 2026 
Paul Merriman, longtime investor and author who champions evidence-based index strategies. He explains diversification beyond the S&P 500. He outlines a four-fund equity quilt and simpler two-fund alternatives. He covers glide paths, when to add bonds, and why disciplined rebalancing and factor-aware small-cap value matter.
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Turning Point From Market Timing To Indexing
- Paul Merriman describes his shift from market-timing to buy-and-hold after attending a DFA workshop that changed his thinking.
- He credits his son for urging a buy-and-hold option and says the DFA teaching convinced him to adopt indexing.
Diversify Beyond The S&P 500
- Combining four equity asset classes (large/small × blend/value) lowers volatility and raises long-term returns versus the S&P 500 alone.
- The four-fund mix historically sits near the middle each year and smooths extremes, improving investor stickiness.
Why Some 'Index' Funds Look Active
- 'Non-traditional' index funds like Avantis or DFA use factor rules and higher-quality screens versus simple cap-weighted benchmarks.
- These rules increase turnover and active element but can materially improve long-term small-cap value returns.
