Merriman Berkman Next investment philosophy

As a firm, we are committed to giving sound investment advice to all investors, whether or not they are our clients. We believe the best way to maximize long-term investment returns is to use passive, low-cost, tax-efficient vehicles in a carefully chosen mix of asset classes. We use this approach in the accounts we manage for clients and also in our recommendations to do-it-yourself investors.

How we allocate our suggested portfolios

We allocate equally between U.S. and international equity funds. In each case, we emphasize value and small cap stocks and include REITs. In balanced portfolios, the fixed income portion includes short-term, intermediate-term and inflation protected U.S. government securities.

How we select ETFs and mutual funds in each asset class

Within each recommended asset class, we seek wide diversification (based on indexes whenever possible), low cost and tax efficiency. When choosing among exchange-traded funds (ETFs) in an asset class, we favor the least expensive one. When choosing among mutual funds, we seek low-cost index funds that are open to new investors and have reasonable minimum purchase requirements. In making final selections, we also consider the funds’ consistency of investment objectives and performance.

How we calculate the minimum portfolio size

For all the Merriman model portfolios, which are made up of ETFs, our suggested minimums are designed to limit the initial trading commission to less than 1% of the total portfolio value.

The minimum portfolio sizes for Fidelity, T. Rowe Price and Vanguard portfolios are based on the individual funds’ minimum initial purchase requirements and their percentage allocation in the portfolios.