JL's writing is sincere and without the conflicts of interest seen in so much of the financial literature. I was notified of MMM when I was 18 (by an amazing friend of mine) and I sigh still thinking of where Id be now (28 years old) if I fully applied the three golden rules of: Spendings < Earnings (50% or more), investing surplus and avoiding DEBT. Thanks again, I recommend your blog to everyone I care about. Is there an interior designer in the house? StocksPart XIII: The 4% Rule, Withdrawal Rates and How Much Can I Spend Anyway?" I recently bought $30,000 worth of VTSAX using some funds I had in my savings account. Read the Coffee House Investor and just finished The Bogleheads guide to Investing (Lindauer, Larimore & LeBouf). Itsabout what has worked for me and what has kicked me in the ass. Its in Swedish, but Google Translate is our dear friend . I would have written off a thought like that as saccharine and inane a few years ago, but now I realize how empowering it is. Hey there Jim, Im planning to move to NH for the favorable state tax features, a quieter life, and the cooler climate. Not that I deserve it. They charge 1-1.5% so I am thinking you do. I know a lot of people don't like him. Finllect is an app that makes financial literacy accessible to the Gen Z with bite-sized financial content and product recommendations. . If the Japanese rights are still available, could you please send us a pdf for their review? Did US also start this way actively managed funds beating Index and then fading away? How we use your information depends on the product and service that you use and your relationship with us. These guys are direct and precise like the book. In seeing your post above about wanting to have these on the thread for all readers to benefit from so if there are any 18 year olds reading this right now, read Simple Path to Wealth and DO IT, your 28 year old self will be proud you did. For instance, when you have children and that sort of thing. After reading much of Collins marketing stories, i can tell that he came in at an advantage.being able to travel the world at a young age, being able to leave job when young. But you might also try to negotiate for a lower bill first. Although as Im just back from six weeks in Ecuador Im a bit late responding! Love the way you present it and am excited to start on the FI path myself. Stocks -- Part VII: Can everyone really retire a millionaire? As to whether people can learn--one of the things that I wrestle with in my own advice. Therefore the common standard of living rises more than inflation over time. Just to close, I wanted to get back to your Simple Path to Wealth. Regards, Not late at all, WE. Thank you, Having said that, when I last hung up my last corporate job, I think my withdrawal rate was about 5% because my daughter was in college at the time, and I was comfortable with 5%, because looking at the Trinity study, 5% has an extraordinarily high success ratio. Not a very satisfying answer I know, but I cant think of another way around this issue. http://www.marketwatch.com/story/this-bull-market-could-be-here-to-stay-2017-05-17. My second book, How I Lost Money in Real Estate Before it was Fashionable, released in November 2021. Your take on the classic scene from The Gambler is a classic with so many gems in there. And kudos to him for being open to it. I read your book on Amazon Prime for free. That's my daughter, basically, who I'm writing for. Regardless, it kept me out of trouble to not drink and yeah I could save money this way too! I understand the value of rolling them all into my IRA. Your thoughts on home ownership were particularly well put IMO. Now, for my second question, which has to do more with the psychology of investing. But if you want that, Id just go with VTWSX/VT. very cool that you took a year off, kinda like a retirement preview. They have always been and will continue to be parallel. It's not that reliable; but on average. We both work for the same employer. Collins: Well, so the first part of that I was in the magazine publishing business, business-to-business magazines, which of course have little or nothing to do with investing. Here in Brazil, this plan could help many otheres. She would rather sleep than have a sit-down financial lesson with mom. I made it through 5 years at community college getting all my math, physics and chemistry out of the way before transferring for my upper level courses. "Why Your House Is a Terrible Investment," by JL Collins, jlcollinsnh.com, May 29, 2013. Here is a review I wrote recently: 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. I knew there was a way, with much more freedom, flexibility and less hours in a cube to acquire a $1500 paycheck every 2 weeks. Also I am planning to invest $30,000 every year in taxable account apart from 401k and roth (We are maximizing both of these from last year) till we achieve FI. Listen Now: Listen and subscribe to Morningstar's The Long View from your mobile device: Apple Podcasts | Spotify | Google Play | Stitcher. But it's a lot tougher to actually weather a bear market or a crash. I was introduced to your blogs through Frugalwoods website and I have enjoyed reading all your info. Collins: Well, again, thank you for the invitation. Health insurance is the biggest question she has to the early retirement scheme Ive got her on board with everything else. And I had heard of blogs, but I joked that the first blog post I ever read was the first one I wrote. 6:10-10:03 J.L.'s sudden rise to fame. You want to make the most of what's in your accountor careerbut you also want to do things to grow the account. Question: 1 And fortunately for me, during those years, the wind was at my back. Chautauqua 2014 preview, closing up for travel and other random cool things that caught my eye of late. The stock market is just a way for you to lose money. And I imagine that's going to be the reaction a lot of these people who go into these meme stocks, or who just go into the stock market in general without taking the time to educate themselves, and the market will leave you bloody if you do that, and most people are going to say, Wow, that's a terrible thing. I see them as what has worked for me and what has kicked me in the ass. Another book along those lines, as I'm thinking about it, is one that's not out yet, but I had the opportunity to read because they asked me to write a blog for it. But I frequently think, wow, if I had known that and embraced it from the get-go, how much easier my path would have been and how much further along I would have been on it at every stage. Is there a way to pay for just your audiobook directly to you or someplace else other than having to subscribe to some monthly fee from a large corporation? Ive sent you a PM. I just read your book and am catching up on your Stock Series. First time reader of your blog and already a huge fan! I cant thank you enough for what youve put out here and I hope one day our lives cross paths. Dividends reinvested, buy never sell! Best, Im new to the world of FI and have been binging on podcasts and blogs for the last few months. So simple, but powerful. Mail clerk, ground man for a tree crew, landscaper, ad agency founder, account executive, ad space salesman,investment officer, entrepreneur, consultant, sales trainer, speaker, writer, radio talk show host, publisher and group publisher. I wish I had your e-mail address to send you a proper thank-you message for the work youve been doing lately. im 36 now. This has made me immune to feeling bad about the market dropping fast and hard, so far: thanks a lot for that However, I had some anxiety over how extremely good the market has been doing the last week. Instead of rolling fidelity to my new plan I was thinking of rolling to the IRA. While 2 holdings (VTI/BND) are all that most people ever need, you do indicate that for some additional complexity and risk, international stock holdings (such as VXUS) can sometimes bring added benefits to a portfolio. Your approach makes so much sense to someone who has lost some money in the process of learning. The Good for Your Wealth Top 5 List of Books for Financial Independence. He is receiving from seventeen to twenty thousand dollars a year as General . I didnt realize you had answered this question before. I just had a great conversation with one of my best friends about your philosophy and gave him your book to borrow. This is what is known as " The 4% Rule ". Im just looking to clarify one thing regard F-U money. They did well for me until they blew up. Stocks -- Part XVI: Index Funds are really just for lazy people, right? We have new alternatives that could help you do just that. The email goes on to explain that the new ETFs are Vanguard ESG U.S. Stock ETF (ESGV) and Vanguard ESG International Stock ETF (VSGX). I am a editor of Business Today Megazine in Taiwan, nice to get in touch with you. Loving work, loving our clients, excited to keep growing. Im kinda retired, will be 60 next month, an investor for 45 years, two kids and a long marriage. It's, buy VTSAX, which is Vanguard's Total Stock Market Index fund. What better person to feature on my blog than you. I am 40, my husband is 52, and we have a 4 year old child. Please, give me a respond if you are interested in it. Given this, and also that I have about $30K to invest, do you think this is a good time to buy the VTSAX fund? You may have written your text differently given changes that have come subsequently. Thoughts? Loved your book and took your advice but then made a crucial error that Id love your view on: I had all my retirement money (over 1 million) in VTI. Please add me to the blog post emails. If you have a comment or a guest idea, please email us at TheLongView@Morningstar.com. As I say, I've owned them for most of my adult life, but don't buy them as an investment; buy them when you can easily afford them, and they provide a lifestyle that you're looking for. And, of course, both of those stocks, they're not value stocks, shall we say? I would appreciate any advice. JL, what is your take on this? Collins is not yet a household name for most people. I am turning 58 years old next week and my wife Lucy is 51 years old. Thanks a lot for the quick reaponse.huge respect.. Hi JL! 13:47-17:46 Great things take timethree years to be exact. Better to learn a bit to do it for yourself. I've put it out there. There is a 5-star Amazon review from you somewhere in your comment if you are so inclined. I have bought your book and have been investing in your style for a few years (via canIretireyet.com). Id be honored to participate. I have read articles and most say to just use the regular funds (one reason is the intrinsic value of stocks). Collins: Christine, first of all--and you've alluded to this already--but let's be clear that when I was talking about my daughter and that she's putting money in on a regular basis, and that smooths the ride, that's a form of dollar-cost averaging. I myself am 42 yrs old and just coming out the other end of a nasty divorce, I made a bad relationship decision which cost me financiallymy ex got the house as he earned more but I was happy to let that go. I forced myself to a financial learning journey 10 years ago and I wished I found your blog much earlier but then again better late than never. Thank you for sharing, teaching, and inspiring. Your email address will not be published. Im Mike and Ive been on a bit of a mission to educate myself financially over the last 9 months or so. Ptak: We enjoyed it, too. The Dow holds about 30 stocks and you can Google to see just which ones and how they fit your goals. So, even more of a connection! Three months ago I bought my 2nd Triumph Spitfire, its a 1980, 1500. I learned a ton, but most importantly I learned I was unhappy in that environment. Instead, the Stock Market Game captures teens attention but not the lessons they need to learn about investing. But probably the biggest one is that it took me so long to embrace indexing. So, those are just some. Which makes me hot. I looked into dividend growth investing, but a 50+ stock portfolio was a full time job. JL Collins: Thank you. Do we combine? To be clear, it doesn't go up three years, and then go down a year, and then go up three years and down a year. So, at what point do you suggest that people should add bonds to their portfolio? will be prepared to help our daughters with college so I bought your Read every post in the stock series. http://www.marketwatch.com/story/why-way-fewer-actively-managed-funds-beat-the-sp-than-we-thought-2017-04-24. I too have a blog where I help urban millennials make wiser money choices and for the month of November I want to focus on investing and the simple path to wealth. In the book Everyday Millionaires, the survey found: 79% of millionaires built wealth using a company plan ( e.g. Collins - From The Simple Path to Wealth PDF: "In the dark, bewildering, trap-infested jungle of misinformation and opaque riddles that is the world of investment, JL Collins is the fatherly wizard on the side of the path, offering a simple map, warm words of encouragement and the tools to forge your way through with confidence. The 4% rule, even before the current environment you were describing, did fail 4% of the time--no connection to the two numbers. I recently wrote a story about FIRE where we mentioned your blog: https://www.newretirement.com/retirement/fire-financial-independence-retirement-early/. Would you be able to get in touch with me in order to discuss further? You nailed it! Have you spent any time on our sub? One option would be to pay the bill off monthly. God bless you and Jack Bogle for sharing all the wisdom and experience in the investing field and let us small investors to gain access to a fair share of capitalism towards the FI! I live in London which adds more complexity to my investment ambitions. Thank you again for making finances approachable! This is in short supply in todays world, even more so in the online world. Thanks for writing and sharing these ideas. For more: http://www.caniretireyet.com/long-term-care-insurance-why-we-arent-buying-it/, 3. Hello Jl 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. Dear Mr. Collins, A lot of people get themselves out of debt and then start to put that money in savings. simple if it wasnt for the fact that we are now in Australia. So, it would be the international stuff that is the most obvious. Many ethical funds advertise their avoidance of porn companies however Im unaware of any even in the S&P 500. Fortunately she is doing better and we are now experiencing sticker shock for the bill. its a difference of $16,639.08 per year ( $1,386.59 per month). Hi Jim, I have followed your advice and suggestions, am living in Mexico and enjoying it. I guess this topic would deserve an in depth exploration. I hope you and your family are safe and healthy in these wild times. http://www.finllect.ae, Hi Mr Collins, thank you for all the invaluable content here and in your book! Some of these organizations can create the ethical change you want. Hopefully, hell write about it. This is an interesting question. I have been consuming a ton of information on the subject lately, the foundation of that pursuit being The Simple Path. I see your email is unlisted but you sometimes respond to comments here. I had accumulated the princely sum of $5,000, and I was working in downtown Chicago at the time. ). Terms of Service apply. Hi JL, just read and loved your book and stock series. Check out the interview schedule/archive thread: https://www.reddit.com/r/financialindependence/comments/65tdwj/schedule_for_semimonthly_rfinancialindependence/. So, my main thought was watching this is theres going to be a lot of tears for a lot of people. 2: what are your thoughts on whole life insurance and disability insurance? Sharing your content in an educational manner could provide a lot of value. Using the Search button might very well provide your answer. After reading your website I opened an account with vanguard (IRA account). But when I listened to him being interviewed, he strikes me as an incredibly bright, incredibly thoughtful guy. VT is the ETF version of VTWSX. Jim: JL Collins joins Carl and Doug to talk about a terrible investment experience with Real Estate. Ill keep an eye out for more books in the posts. Firstly, I loveddd your book the simple path to wealth. Having just finished college it gave me great insight into how to handle money. Yes, the markets have been down, but we will come out of this mess and the economy will recover. Thanks JLC! Maybe you should read through his posts or book. I know you dont recommend investing in a single company, but Microsofts stock has been performing exponentially for the past 10 years. (https://calendly.com/na-tawakkol/15min) Thank you so much for writing your book, The Simple Path to Wealth. Thanks so much for letting me know. The ER is a nice low .12% and current yield is 3.87% which is paid out quarterly. ISBN-10: 1533667926 Through reading your series, bouncing to all the external links, and re organizing my portfolio Ive come to understand why Im working and what Im working for. Should I keep it with Fidelity or would it be better (or even possible) to move that over to Vanguard? Ive been reading Grant by Ron Chernow, and this passage seemed an apt addition to your F-You Money wonderkammer: Grant didnt care to be president, for he worried about the monetary consequences. Are you concerned that 4% could be too high in an era in which equity valuations are quite high and bond yields are so low? Are they still available? All my friends got a copy of your book. After a downturn several years ago, my husband and I took money out of the market and put it into cash. thank you for these incredible insights on money. What made me finally put this stuff down in the blog was, I had tried very hard to introduce my daughter to these financial concepts. Hanging on allowed me to retire in 2013 and Ive never been happier. Pretty much in that order although Ive visited several more than once. Stocks Part XXI: Investing with Vanguard for Europeans, Case Study #7: What it looks like when everything financial goes wrong, 1st Annual Louis Rukeyser Memorial Market Prediction Contest 2013 results, and my forecast for 2014, Closing up for the Holidays, see you in 2014, Case Study 6: Helping an ill and elderly parent, Stocks -- Part XX: Early Retirement Withdrawal Strategies and Roth Conversion Ladders from a Mad Fientist, Death, Taxes, Estate Plans, Probate and Prob8, Case Study #5: Zero to 2.6 million in 25 years. VTSAX since 2000 seems to have averaged around 7.8% (maybe I got this wrong). And then, the day after that is the day the market drops 40%. You can then invest this money in VGSLX https://personal.vanguard.com/us/funds/snapshot?FundId=5123&FundIntExt=INT&funds_disable_redirect=true which is a REIT (real estate investment trust) fund. Or more accurately, when people say, JL, that sounds like deprivation, having to set aside money that I can't spend in order to invest. And in my view, I've never seen it as deprivation. That is really the only way active management can outperform the index over time. It really changed the way I invested. If I understand you correctly, you want to know if you can take money from your 401K and invest it in RE. Im just starting out in investing (other than maxing out my 401k every year for 7 years since I finished grad school). 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