Investing in the stock market can make you a future millionaire. When it comes to what to invest in, that's where the questions start to come up.

Author and Financial Educator Paul Merriman shares how we can use index funds to become millionaires. In our interview, he shares a variety of index fund portfolios including the 2-Fund Portfolio and 4-Fund Portfolio.

Overview: Millionaire Index Fund Investing Portfolios w/ Paul Merriman

Paul Merriman reviews the following:

• How Target Date Funds can be slightly tweaked to create more future wealth
• The index funds to add that can grow your overall portfolio by 1.8%
• Why we need to understand investing fees and their impact on our portfolio

Listen or Watch Here

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Key Takeaways from Paul Merriman

Here are my top three takeaways from my conversation with Paul Merriman.

Target Date Funds Are An Excellent Starting Place

If you’re beginning your investing journey and just starting to pay attention, target date funds can be your best friend. 

This simple option gets you investing right away and they are typically available in many 401k plans. 

While your overall returns probably are not going to beat the S&P 500 over the long haul, your ability to relax and rest easy knowing your portfolio is invested and growing can be worth the lower return. 

Small Cap Value Could Boost Overall Returns

Historically, small-cap value has given an overall boost to a target date fund portfolio. 

The same can be said for additional large-cap value as well.

In short, too many bonds at a young age can hold your portfolio back. If you can stomach the ups and downs of the stock market, limiting your bond holding until your 40s, 50s, and 60s can improve your overall returns. 

Investing Requires Faith

It’s important to remember, that none of these returns are guaranteed as all of the projections are based on historical data …not future data!

None of us know what is going to happen in the future, but I believe we can have faith that investing in index funds will help us weed out the sick and dying companies in our portfolios. 

That way, we can go back to living our lives! Isn’t that what we’re all looking for anyway? A little less stress and a little more enjoyment?

Find the portfolio that gives you that peace and move on.

Guest Bio – Paul Merriman

Paul Merriman sold his investment advisory practice and founded a financial education foundation designed to help do-it-yourself investors of all ages improve their investment returns. He's the author of 8 books including “We're Talking Millions! 12 Simple Ways to Supercharge Your Retirement”.

Carpe Diem Quote:

“The two greatest enemies of the equity fund investor are expenses and emotions.”

Jack Bogle

What do you think of our discussion with Paul Merriman? Do you have any questions on any of the millionaire index fund investing portfolios?

Please let us know in the comments below.