Paul Merriman shares what his 60+ years of investment experience says about fees, behavior, and building a plan you can actually stick to.

When I sit down with investors getting ready to retire, many of them assume success depends on what they invest in — the right fund, the right stock, the right market move.

But as my recent guest Paul Merriman shared on the Retire Today podcast, “The biggest threats to your money aren’t headlines—they’re costs and emotions.”

Paul has spent more than 60 years in finance — from the days of 8½% mutual fund commissions to his current work as a full-time educator at PaulMerriman.com. What he’s learned along the way can transform how you think about your money in retirement.

When Paul started as a stockbroker in the 1960s, “almost everybody was paying 8.5% to buy a mutual fund.” That meant if you invested $10,000, only $9,150 went to work for you. The rest went straight to Wall Street.

He’s the first to admit it: “It was efficient for Wall Street—but not for investors.”

Thankfully, costs have dropped dramatically. But even today, Paul warns, a simple 1% difference in fund expenses “can cost you about $3.5 million over a lifetime.” That’s not a typo — that’s the power of compounding working against you.

John Bogle, founder of Vanguard, once said, “The two greatest enemies of the equity fund investor are expenses and emotions.” Paul agrees.

“Bad behavior actually can cost an investor more than 1% a year,” he explained. “When the market goes down, people panic. They think they’re going to lose everything—even if they’re in a diversified mutual fund.”

That fear leads to what he calls the ‘I just can’t take it anymore’ approach — selling low after a downturn, only to miss the recovery that follows.

If you’ve ever felt that same knot in your stomach during a market drop, Paul’s advice is simple: don’t try to time the market. Instead, build a plan you can live with — and stay committed to it.

When I asked Paul what really makes the difference between someone who runs out of money and someone who thrives in retirement, his answer was instant:

“What could really change your life from having way more than you need to having less than you need? It’s the source of your education — what you learn about investing and who you learn it from.”

Education doesn’t just help you make better choices. It keeps you calm during volatility because you understand why your plan works.

That’s exactly what Paul’s nonprofit work focuses on today — teaching people how to build portfolios that balance diversification, simplicity, and risk tolerance. His free resources include guides like “Sound Investing Portfolios” and the book We’re Talking Millions! 12 Simple Ways to Supercharge Your Retirement.

Paul used to teach a 10-fund “Ultimate Buy-and-Hold” portfolio. But even John Bogle told him it might be too complex for most investors. So Paul challenged his team to simplify it — testing two-, four-, and six-fund versions. The result? “You got just as good a return, if not better, than all ten of them.”

You can see these simplified portfolios and the data behind them at https://www.paulmerriman.com/portfolios.

The lesson is timeless: a simple, diversified portfolio is easier to stick with — especially in the bad years. The easier your plan is to understand, the easier it is to trust it when the market tests your patience.

We ended our conversation by talking about income in retirement — and how traditional “set-it-and-forget-it” withdrawals often backfire.

Paul explained, “If you have enough, you can afford to be flexible. When the market’s down, take a little less. When it’s up, you can take a little more or give more away.”

This flexible withdrawal strategy not only helps portfolios last longer — it can make retirement feel less stressful. You’re no longer reacting to markets; you’re adjusting intentionally.

He summed it up beautifully: “If you know how long you’re likely to live and how much you have, that base of knowledge gives you freedom — not fear.”

Education is Leverage

We also talked about a critical mindset shift: education is leverage. Knowing how markets work, how fees compound, and how behavior affects outcomes isn’t trivia—it’s the difference between enough and more than enough. With a clear understanding and a plan tailored to your risk tolerance, you’ll make steadier decisions when volatility hits.

If you’re 60–65 and staring at retirement, here’s the short list I give clients:

• Own the right mix, not the “perfect” fund. Diversified, low-cost index funds across U.S. and international stocks plus the right amount of high-quality bonds can do the job.
• Match risk to reality. Choose a stock/bond split you’ll hold through a full cycle—especially the ugly years.
  Adopt a flexible withdrawal rule. Give yourself permission to adjust spending after down years.
• Keep behavior boring. Automate rebalancing, ignore short-term predictions, and review once or twice a year.
• Invest in education. The more you understand, the less likely emotions will run the show.

You worked hard to build your nest egg. Now it’s time to make it work hard for you—quietly, efficiently, and in a way you can live with. For a deeper dive, watch my full conversation with Paul Merriman on YouTube, where we break down fees, behavior, portfolio construction, and practical withdrawal rules you can use today.

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About the Author:

Jeremy Keil, CFP®, CFA® is a financial advisor in Milwaukee, WI, author of the bestseller Retire Today: Create Your Retirement Master Plan in 5 Simple Steps and host of both the Retire Today Podcast and Mr. Retirement YouTube channel

Additional Links:

• Buy Jeremy’s book – Retire Today: Create Your Retirement Master Plan in 5 Simple Steps
• Email Paul Merriman: paul@paulmerriman.com 
• The Merriman Financial Education Foundation
• Paul Merriman on LinkedIn
• Paul Merriman on Facebook
• Paul Merriman on YouTube

Connect With Jeremy Keil:

• Keil Financial Partners
• LinkedIn: Jeremy Keil
• Facebook: Jeremy Keil
• LinkedIn: Keil Financial Partners
• YouTube: Mr. Retirement
• Book an Intro Call with Jeremy’s Team

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