Which 60/40 Portfolio Is Best? Sound Investing podcast

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Which 60/40 Portfolio is Best?

1d ago 36:45

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Prior to discussing his topic of the day, Paul shares his thoughts on a recent podcast featuring Truth Tellers Tom Cock and Don McDonald, joined by Weston Wellington from Dimensional Fund Advisors. Weston weighs in on some of the most critical issues facing investors right now.

Here are the topics on the podcast with Tom Cock and Don McDonald-

0:53 Weston Wellington on volatility and market uncertainty
2:47 Why volatility is the “price we pay to play”
3:32 The media’s role in investor anxiety
4:57 Should investors act on daily financial advice?
6:15 Portfolio changes should reflect personal changes, not headlines
7:24 Spam vs. Motorola: A lesson in stock picking
9:44 Dimensional’s stance on individual stock ownership
10:02 Diversification as “the closest thing to a free lunch”
11:07 Are alternative investments the new magic bullet?
12:43 Mutual funds vs. ETFs—what works best and when
15:27 Industry evolution: from 8% loads to indexing dominance
18:29 Where Dimensional fits in the modern fund landscape
21:01 AI vs. “aggregated intelligence” in managing portfolios
24:04 How regular people can find real financial advice
25:34 The key to success: Temperament, not timing
26:44 Weston’s side gig as a roving birthday singer
27:58 Why Weston hasn’t been invited lately (and he's lonely)

Next, Paul highlights a recent article by another Truth Teller, Ben Carlson. In “60/40 Portfolio Corrections, Bear Markets and Recoveries,” Ben breaks down the differences in returns during bear markets and the bounce-back that follows. Inspired by this, Paul explores a question that doesn’t get much attention: What’s the impact on a portfolio when you apply a 4% fixed withdrawal rate to the nine Sound Investing equity portfolios, each with a 60/40 equity-to-fixed income split? The results may surprise you!

Paul notes there’s more to come on this topic, as these findings could have a real impact on how investors choose their retirement portfolios.

As promised, here are the links to the Sound Investing Portfolios:

50% U.S. / 50% International

70% U.S. / 30% International

493 episodes

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