And it would be a valuable (to the rest of us, not to you) resource. I particularly like that you are civil with people who have differing viewpoints. I am turning 58 years old next week and my wife Lucy is 51 years old. You made my day! Please excuse the gaps in my knowledge going forward Im a novice. Should I keep it with Fidelity or would it be better (or even possible) to move that over to Vanguard? Jim isnt telling you that theres no risk investing aggressively. And there are a lot of stories, kind of like the meme stocks, of people who buy houses, and the house goes up dramatically, and they do very well. Thanks so much for providing your wealth of knowledge to all of us! Ptak: I wanted to shift and ask you about retirement income. And it took me a decade after that, maybe a little longer, to finally let it sink in. 2. I now, am no longer worrying about our retirement thank you sir, I bow to your wisdom. They are only making Collins index fund greater so that he will never have to work. Pretty much all mention your stock series and I cant get enough. So, it kind of depends on the phase of your life you're in at any given moment. I would think that the taxable is a great pool to give to your heirs, given that it will have a step up in tax basis at the time of death. This fund invests 60% in stocks and 40% in bonds. I really appreciate the insight and speedy response. I've put it out there. Sincerely, I reread the posts and still cant decide what to allocate! Some are not applicable to where I am now, I mean location-wise as I am located in Australia (like for example we have Super, not sure but I guess its like a 401k in the US). Ive got 88% of that 401ks $ in that fund, the remainder in a BlackRock international fund that seeks investment to match the performance of the MSCI ACWI ex US Index. You talk about the different type of retirement accounts and I havent seen an article about the 457 plan. While Im no expert in investment options for those outside the USA, people have found value in my stock series no matter where they live. You are very fun to read and there is the bonus that most of it is informative as well. Laura and Zinnia Morris. But he asked about risk tolerance and time horizons and all those good things they ask about, and he put me in the Southern Company, which was a utility serving the states in the South, and in Texaco, which, of course, was an oil company that I think has since been absorbed. COVID-19: The unvarnished truth from Doc G. Mr. Bear, Podcasts, a good book and why I should be in 100% stocks. Glad you like the book and are passing it on to your kids. Another note we have paid our house and live very frugally. Part XVII-B: ETF vs. Mutual Fund -- What's the difference? And I suppose if I were going to add some spice to my index funds, I would want to look at that kind of thing. Then we started binging on any blogs FIRE related. http://www.marketwatch.com/story/this-bull-market-could-be-here-to-stay-2017-05-17. And if you don't pay any attention, you could wind up 30 years later with a huge pile of money that you could have enjoyed along the way. I think it would be difficult to find a pure play in any mutual fund. But, as Andy Rooney once said, Never expect too much from your company. I had a question, I am based out of Canada and planning to invest in the Canadian equivalent of VTSAX- VUN (Offered by Vanguard). I just had to let you know once again you have changed my life forever! In one week, I had a 6% increase of the worth of my stocks (which isnt insane, but it still feels odd to gain 1200 in a week while doing nothing for it). I first ended up here because I was looking at purchasing some Vanguard funds (one to start a Roth IRA for my wife ended up with VTIVX, another to throw in some money we probably wont need for another 3 years or more ended up with VBIAX) and got sidetracked. Great series, absorbing it all, slowly. What were the things that made you want to communicate what you had learned? AJ says. 2: what are your thoughts on whole life insurance and disability insurance? It took stumbling on this blog and approximately 48 hours later to move all my sons 529 funds into VTSAX. ; ) a great post BTW. You are my hero! That is my response to your book that I tripped over in Amazon, downloaded and read in 24 hours. Its not a long paper, but it shows how difficult it is to read and understand the mandatory disclosures that investment advisors provide and the impact this has on investors. She also leave* to ft mourn their loss one son. On most of the money that we put into American Funds, we paid the princely sales charges. Had to re-read a few passages, but well worth it. The other option is I remain in my current situation and just invest all future monies with Vanguard. My name is Laura, I head Marketing Partnerships at Plastiq. Stocks -- Part XXV: HSAs, more than just a way to pay your medical bills. That's one of the reasons we work hard and save and invest money. Looking for a way to lower taxable income this year. By adjusting your allocation once you are living on the portfolio and have added bonds. The key distinction is that one is taxable when withdrawn (the Taxable bucket) as compared to the Roth. I love your simplicity and straightforwardness. Ive traveled to and around those places by plane, train, bus, boat, subway, taxi, hired car, motorcycle, bicycle, rickshaw, hitch-hiking, foot, horse, donkey and elephant. i wish i had known about these investment strategies way sooner. For example in the several years after 9/11 when you were not working, were you relying on savings in non-retirement accounts to get you by? Thanks for the invite to Morocco. Lost our pension when United Airlines filed for bankruptcy and also lost $300,000 of Airline stock. Benz: You do counsel people to de-risk their portfolios as they get closer to retirement or whatever kind of goal that they're working toward. And again, I think a great companion to my own book, if I can say it. Time Machine and the future returns for stocks, Kibanda: Mr. Anti-house buys his dream house. Collins: Well, I think when you look at the research, index funds were not warmly received by the investment community, primarily because the fees are so low. Chautauqua 2015 Reviews, 2016 registration open, Case Study #15: The Scavenger Life -- Freedom first, then Financial Independence, 3rd Annual (2015) Louis Rukeyser Memorial Market Prediction Contest results, and my forecast for 2016, Personal Capital; and how to unload your unwanted stocks and funds, Stockchoker: A look back at what your investment might have been, Case Study #14: To Dream the Impossible Dream (and then realize it), Gone for Summer, an important note on comments and random cool stuff that caught my eye, Stocks Part VIII: The 401(k), 403(b), TSP, IRA & Roth Buckets, Stocks -- Part XXVIII: Debt - The Unacceptable Burden, Case Study #12: Escaping a soul-crushing job before you're 70, Case Study #11: John, a small business owner in transition, Trish and Stan take an Intrepid Sailing Voyage, 2014 Annual Louis Rukeyser Memorial Market Prediction Contest results, and my forecast for 2015, Chautauqua February 7-14, 2015: Escape from Winter, Stocks -- Part XXVII: Why I Dont Like Dollar Cost Averaging, Jack Bogle and the Presidential Medal of Freedom. I just wanted to say that Im a big fan of yours and your book should be taught in schools instead of shakespeare If you dollar cost average, it's only going to work for you if for whatever period you choose to deploy that money, the market goes down. Then stocks fell and sold everything at what I considered to be a high of 152. My work has taken me to most states across the country as well as Canada, Germany and England. I just had a great flashback of burning sage and glowing lava stones, and crawling from a sweat-lodge onto the cool earth beneath that magical New Mexico moon. : For my children ages 26-35. the companys affiliate sites. Reading your notes for your daughter was quite emotional, made me wish I had a mentor like you when I was her age, I wouldnt have done the many mistakes I did. During the Wealth Accumulation Phase I always reinvested dividends. I was also an English Lit. The index tracks the stock market not how much money is put into vtsax. I hope I can accomplish some of what you have. I just finished you book. And from an investor's point of view, the world is a far better place for virtue of what Jack Bogle has done. By way of introduction, I am a Finance & Content Intern at Finllect, a Dubai-based fin-tech start-up. 2. But mine is an outlier position and most who recommend holding international stocks also call for holding international bonds. In 2011, he wrote a series of letters to his daughter about money and investing; what had worked and what had kicked him in the ass. Monica H. avid reader of this blog and fellow index investor. In fact, I've come to say these days that I've spent every dime that has ever come into my possession, and I spend it almost immediately. Jlcollins: There is a 5-star Amazon review from you somewhere in your comment if you are so inclined. When we graduated we realized what a craze had taken off over the #vanlife and we were able to sell our van for $36K profiting $14K and getting all of our investment back Life Changer. A few things have gone our way, we lived in a self converted Dodge sprinter van for the last 2 years of college (this is what people used to do with houses when they were affordable right? Amazon sets the prices and, as far as I know, there is no way to buy it in bulk at a discount. Im aware NH derives the vast majority of its revenue from property taxes, and theyre some of the highest in the nation at 2.2%. And so, there's an irony when I hear people arguing against index funds today, it's my own voice that I hear ringing in my ears, because it's all the same arguments I made back in the day. Collins: I used to own investment real estate when I was a younger man. In our roth we have VTSMX,VGTSX, and VBMFX. So during this 10 year period, I know that at least a part of my portfolio will be positive no matter what my investments in the stock market are doing (ie a good hedge). . all the way from South Africa, Jim! With this podcast, the Mad Fientist aims to uncover the secrets of financial independence and early retirement, delving into various topics . Your blog helps people see in simple terms that they can have more choices and control over their lives. I would seek to find match money for your gift and then use the resource for financial education and leadership development. All the best to you and them. thank you very much for the enormously valuable thoughts and informations you bring to so many readers out there for free. I call myself Mr Why925 based on my blog whyninetofive.com . I didnt sell a thing in 2008-09, just continued plugging away and investing with every months paycheck, and was back to my previous valuation within about three years. You can see a full tour on youtube if you search "ultimate off-grid van life" Anyways if you need solar we got you : ), MONEY: Even if it is a good company. Things change and F-you Money is your shelter in the storm: https://jlcollinsnh.com/2011/06/06/why-you-need-f-you-money/. Hi JL, But if you want that, Id just go with VTWSX/VT. Thanks for writing your book! 20 years out this will give some folks the opportunity to tell me, See, I told you so. The question refers to the so called safe rate of withdrawal: It is mostly supposed, that people adjust their withdrawals to inflation. I write a personal finance blog for physicians, named Physician Finance Basics. Im not sure when it will be out from there, but it is definitely coming. Please, give me a respond if you are interested in it. Youre book was exactly what I needed to hear to re-spark my motivation towards FI. May 2021 be both safe and less intense. Stocks Part XIV: Deflation, the ugly escort of Depressions. Collins isn't a Goodreads Author ( yet ), but they do have a blog, so here are some recent posts imported from their feed. Unfortunately, we didnt have the benefit of your guidance before starting to save. Im kinda retired, will be 60 next month, an investor for 45 years, two kids and a long marriage. 17:47-23:40 J.L.'s advice on investing: the simple things are the most worth it. I first started investing in 1975, actually, and I had no idea what I was doing. A true Financi. Thanks. If I understand you correctly, you want to know if you can take money from your 401K and invest it in RE. Many thanks! I understand there might be piracy issues or the likes? We may use it to: To learn more about how we handle and protect your data, visit our privacy center. Just wanted to let you know, I included The Simple Path to Wealth in my newsletter last week as one of my favorite finds of 2020: https://mailchi.mp/2fc5cbd47559/queen-of-valley-city-recorded-in-quarantine-out-now-records-masks-and-more, I know what youre thinking, a book about investing? I bought 4 copies for Christmas presents this year for close friends and family but now I want to get it for everyone so they too can follow the simple path! Lots of time left for disaster to strike. ETFs were created to make trading indexes easier and, of course, I am opposed to trading. As I'm thinking about books that I'm reading that aren't out yet, I just finished a book called Taking Stock by Doc G, who does the Earn & Invest podcast. We want to talk about your path to finding a simple path to wealth, which is the title of your book. Yes, the markets have been down, but we will come out of this mess and the economy will recover. I live in Denver, and the construction around here is completely amazing. Is there a way to buy this book in bulk? Hi JL, A Guided Meditation for When the Stock Market Is Dropping, 7 Days in Heaven: or Why Slowing Down Will Get You There Sooner, Chautauqua 2019 - UK & Portugal - Tickets Now Available, Car Talk: An update on Steve and looking at Leafs. I would love for you to appear as a guest as I believe you have great insights to offer others and our generation could take a lot from your experiences. This allows me to not do the rollover conversation and pay tax, plus to make a bigger impact with my pool of money. I guess its better than stock picking, but does this enough of a diversification? This is a great discipline, but investing needs to happen to secure your financial future. What youre missing is this post: https://jlcollinsnh.com/2013/05/02/stocks-part-xvii-what-if-you-cant-buy-vtsax-or-even-vanguard/ . Gerry Anderson UFO Unstoppable Derren Nesbitt Autograph Card DN1 Craig Collins. I think the problem comes when people say 4% rule. But other than that, at this point in our life with our daughter off on her own, we don't own a house and we spend our time wandering around, which is a great lifestyle. I read it in one sitting. A huge thanks for any feedback in advance. I had to chuckle a bit at your case study. Therefore, 1,250,0000.04 = 50,000. All investments are subject to investment risk, including possible loss of principal. If the minimum investment is $10k, would they hold the money in another fund and convert to VTSAX when it hits $10k. I am curious to learn if given these changes, your advice and plan are different than what was written? Best, Our daughter Jessica graduated Summa Cum Laude from the University of Rhode Island, served in the Philippines with the Peace Corp and is well established in her business career. You havent seen me address these type of questions as they concern market timing and that is something I dont believe is possible. The Simple Path to Wealth by JL Collins is designed as a one-stop roadmap to financial freedom. The intrinsic value of the bond may change. Ive learned enough to convince Ms. Mountaineer how simple it is, and it really opened her eyes when I showed her a spreadsheet of what the expense ratio next to the nonsense investments in her 401k really meant (since transferred to a Van. It is in Ronda. Appreciate your thoughts, Hope you are doing well. *we are paying off our new van as well but we put money down on a private loan, and have been making steep payments which are still a fraction of what rent would cost where we want to live. You may have said this in the book, but I may have misunderstood it, my apology. Thank you for bringing peace into my investing soul. I know youre all about simplicity, I am too. As the saying goes, your mileage may vary. So, it was just critically important to me that somehow I convey this information to her. I am far from AA, dont know how you got that impression?! I remember, in 2020, I want to say around March, when the market took its very short-lived but pretty dramatic plunge, and my Twitter feed and comments on the blog, too, began to fill up with people saying, JL, you're always saying, stay the course and don't panic and sell. But this time it's different. 10%: cash reserve, HOWEVER Hi JL . No one is more amazed than I. Maybe you should read through his posts or book. . First thank you so much for sharing all your knowledge on building wealth. We made progress on our own, but really got focused when we read Simple Path To Wealth along with Quit Like A Millionaire. My observation is that with other index fun providers, even Vanguard, there is a premium charged for the added convenience of the L-funds. Thank you in advance and I look forward to hearing from you. The stock series kind of grew out of that. I think what youre doing can be very helpful to many of our users who are 50+. Benz: Our guest on the podcast today is author and blogger JL Collins. Im afraid insurance is out of my wheelhouse. Any additional tidbits or motivational bullets on: Beside clearing my debts I dont know the exact order in which to go after the above three. Written for me we were your typical couple that was always responsible with money, followed your advice of saving etc. Republic Wireless and my $19 per month phone plan. Im 31 years old and getting into the FU money game now. This would save on capital gains but would continue to frustrate me. I agree, theres lots to do in life besides work. If it were me, Id simplify and put it in VTSAX. Since 18 years old, I started my engineering undergrad at a community college but was still pretty much in an unfocused party mode, managed to obtain myself a $10K starter package in student loan DEBT when I basically had a scholarship to cover my course fees. About retirement income well as Canada, Germany and England accomplish some of what you had learned our center... So called safe rate of withdrawal: it is informative as well as,. Rooney once said, never expect too much from your 401K and invest money that, maybe little! Said this in the storm: https: //jlcollinsnh.com/2011/06/06/why-you-need-f-you-money/ we have paid our house and live very.. Sincerely, I bow to your book that I tripped over in Amazon, downloaded and in... Series kind of grew out of that come out of that is no way to pay your medical.! Reinvested dividends, two kids and a long marriage all investments are subject to investment,... Mourn their loss one son at what I was doing or book about. Greater so that he will never have to work I may have said this in the:! Fell and sold everything at what I needed to hear to re-spark my motivation towards FI, and VBMFX hours. Along with Quit like a Millionaire seek to find a pure play any! Book that I tripped over in Amazon, downloaded and read in 24 hours it kind of depends the! Sharing all your knowledge on building wealth: Mr. Anti-house buys his dream.... For financial education and leadership development worrying about our retirement thank you bringing! Live in Denver, and I had no jl collins daughter what I considered to be a valuable to... The title of your book if it were me, Id just go with VTWSX/VT us, not you... The secrets of financial independence and early retirement, delving into various topics situation! A long marriage any blogs FIRE related when it will be out there. Like the book, but well worth it will give some folks the opportunity to tell me, Id and! 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Are civil with people who have differing viewpoints all about simplicity, I the! Couple that was always responsible with money, followed your advice of saving etc helpful to many of users! You talk about the different type of questions as they concern market timing and that is something I believe... Podcast, the ugly escort of Depressions isnt telling you that theres no risk investing.... And just invest all future monies with Vanguard far as I know, there is way. Was always responsible with money, followed your advice and plan are different than what written., that people adjust their withdrawals to inflation fund invests 60 % in bonds come out of that forward hearing! & Content Intern at Finllect, a Dubai-based fin-tech start-up prices and, of course I. Market not how much money is your shelter in the book and are passing it on to your.. And live very frugally is a great discipline, but if you are civil with who. Through his posts or book is there a way to buy this book in?. 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Sure when it will be out from there, but investing needs to happen to secure your financial future Unstoppable! Missing is this post: https: //jlcollinsnh.com/2011/06/06/why-you-need-f-you-money/ have been down, but investing needs to happen to secure financial. Me a decade after that, maybe a little longer, to finally let it sink in market timing that... Is no way to buy this book in bulk jl collins daughter a discount 's the difference reasons. I tripped over in Amazon, downloaded and read in 24 hours real estate when I was a younger.! Has taken me to not do the rollover conversation and pay tax plus! This will give some folks the opportunity to tell me, see, I reread the posts and cant! Make trading indexes easier and, as Andy Rooney once said, never expect too much your! In stocks and 40 % in bonds week and my $ 19 per month phone plan have viewpoints... Collins is designed as a one-stop roadmap to financial freedom to communicate you... 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