if this is true then why does Merriman's (and Chris Pedersen's brainchild) Two Funds for life have you 0% SCV AT and THROUGH retirement?If you want to invest in small cap value, the goal should be for better overall portfolio performance, which includes during retirement, with the idea that this is also not guaranteed, but is perhaps more likely than higher returns.
If you are in retirement you have 0 years x 1.5 = 0% in SCV. And I heard Paul and Chris explain this in one of the early podcasts after this new model (upending the "ultimate buy and hold portfolio" of 10 or more funds) was launched. I.E., you're supposed to LESSEN the SCV exposure in your portfolio as you approach retirement.Instead of using 1.5 times your age to determine the percentage you would invest in the target-date fund, you turn it around and use 1.5 times the years left to retirement to determine the amount you would invest in the second fund. So, if you are 30 years old, and plan to save aggressively to retire at age 50, you would be 20 years from retirement, and 1.5 X 20 = 30, so you’d invest 30% in small-cap value (or other asset class of your choice) and 70% in the TDF.
https://www.paulmerriman.com/two-funds- ... #gsc.tab=0
Statistics: Posted by arcticpineapplecorp. — Mon Nov 03, 2025 9:20 pm — Replies 64 — Views 4154