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How to Money · July 15, 2026 · 58m

Turning Thousands Into Millions w/ Paul Merriman #1166 (Bestie Ep)

Paul Merriman, DIY investing expert and creator of the Two Funds for Life strategy, joins How to Money to make the case that tilting toward small-cap value stocks can substantially boost long-term returns. Merriman explains how pairing small-cap value exposure with a second fund can outperform a plain S&P 500 index fund, potentially adding millions to a retirement portfolio. The hosts review historical data and find the evidence so compelling that they are reconsidering their own investment approach. Merriman’s nonprofit foundation aims to bring this kind of overlooked insight to investors at all stages of life.

This summary was generated from show notes and public descriptions, not from a full transcript review. Details may contain inaccuracies.

Curious

Small-Cap Value Premium
Small-cap value stocks have historically delivered higher long-term returns than the broader market, a principle that underlies the strategy discussed.

Highlights

Two Funds for Life Strategy
Merriman’s Two Funds for Life strategy pairs small-cap value exposure with a second fund to outperform a pure S&P 500 portfolio.
Merriman’s Mission of Investor Education
Paul Merriman founded the Merriman Financial Education Foundation to bring financial literacy and better investing strategies to a wider audience.

Editorial

Hosts Reconsider Their Investing Strategy
After reviewing the historical evidence for small-cap value outperformance, the How to Money hosts say they are rethinking their own investment approach.
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