And more. Sure, as long as you cite jlcollinsnh.com as the source, go ahead. If you still decide to go the ethical investing route, you might ask for suggestions in the comments on this post: https://jlcollinsnh.com/2014/01/27/stocks-part-xxi-investing-with-vanguard-for-europeans/. My friend was in a state of shock. "Truly Passive Real Estate Investing," by JL Collins, jlcollinsnh.com, Nov. 28, 2018. Thank you for your incredible book and blog. I recently listed to your newest podcast on ChooseFi and I had some thoughts about the bond section. ..glad you made your way here and very glad somebody is teaching HS kids personal finance! I just read your book and am catching up on your Stock Series. That said, shes reading your book today, and were going to implement the primary concepts of your book. Hi Jim, I have almost zero investing experience; my dad tried doing day trading for many years with questionable success. My parents didnt tell us shit about finances. etc. 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. Personally, I dont feel the need for international for reasons I outline here: https://jlcollinsnh.com/2012/09/26/stocks-part-xi-international-funds-2/. Your work empowered me to take charge of my own financial life. Hey Jim! Collins: I write primarily for what's come to be known as the FIRE movement, an acronym that stands for financial independence, retire early. I don't really like the retire early part of that, because the people I know in this might quit their day job, but they go on to do other productive things. Now imagine instead of a buying a treasury from the US government I decided to put my money in a general bond fund. Thank you for putting your Stock Series online and in blog form. Amazon sets the prices and, as far as I know, there is no way to buy it in bulk at a discount. As I think I alluded to earlier, I used to be a stock-picker, and I, in fact, achieved financial independence doing that. This time, it's a pandemic. And my response was, every market crash and market crashes, in my view, are something that are a normal part of the process. Having money to travel in your 60s and 70s is useful. https://jlcollinsnh.com/2012/09/17/putting-the-simple-path-to-wealth-into-action/ . Any other advice for those in my age range? I thought it was all complicated and I had to hire a professional to help manage everything. Blowing my mind. That said, while doing some reading online I came across the Berkshire Hathaway annual report https://www.berkshirehathaway.com/2020ar/2020ar.pdf and it made me wonder why not just invest in BRKB shares? I guess this topic would deserve an in depth exploration. There is a 5-star Amazon review from you somewhere in your comment if you are so inclined. Collins: Well, again, thank you for the invitation. I love this book very much!!! Any interest? Instead, the Stock Market Game captures teens attention but not the lessons they need to learn about investing. The second comment is related to the power of Qualified Charitable Distributions available now consistently for a Traditional IRA, which can go to fulfill the RMD annual requirement. Wed like to share more about how we work and what drives our day-to-day business. I am diving deep and I am learning so much. My advice is to focus on making the most out of your time and create quality relationships with people in both your personal life and career. in any case, im looking foward to saving my first 10,000 so i can invest it in VTSAX. You can reach me via the email I filled in on your form when I posted this comment, or via my contact form on my website (averybreyer-dot-com/contact/). That is not bad. under your original comment here: https://jlcollinsnh.com/2011/06/03/my-short-attention-span/, youre gonna have to start reading this blog a lot closer, my friend. Even though we have made every wrong move we could, we have managed to accumulate $1.5 million ( just think what we would have if you had given me this book 20 years ago) we have done this on an average income of $100,000 and are debt free. I'm not going to go near that again. So, I think that's probably the reaction. She is currently a high school junior and she is too busy with school work(5 APs) and extra-curricular activities. Great Value. Thanks for showering us with a simple and unique way of investing. A big Hi! I even taught a career development course on how to interview, write a resume and dress for work. Can I ask if you have thoughts on splitting the investments in VTSAX into growth and value ETF by Vanguard of course ? I came across your site and I think it can be a great fit for my Mrs, Sarah Middleton; one sister, I'm sure I'm missing some other great ones, and my apologies to those authors. *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. If anybody does, I'd love them to share it with me. My wife Jane and I have been married since 1982. I am a senior and about to start my working career next year. I never felt overly confident in my thoughts because there are so many different opinions on the subject of personal finance. So, even more of a connection! Hello Sir, But I did know that the pandemic wasn't different than any other cause of any other crash. Please allow me to introduce myself. Hello JL great blog, Question: But it sounded to me like a good idea to archive the information. We have Korean publisher who got interested in your above title, and would like to know if Korean translation rights are available at the moment. Is there such a service? Adult life used to be so terrifying because I had just presumed that one had to work continuously until they were 70 in order to have a decent life. I was trying to help an older women to choose a vanguard fund for her IRA. Im afraid insurance is out of my wheelhouse. And so, that's really the comparison you're making is, is this a good investment, not only a good way to deploy my money, but a big chunk of my time, and/or some chunk of my time? LUCRETIA. In the wealth building phase should dividends be reinvested? Required fields are marked *. few weeks ago a friend of mine sent me the video of the talk you gave at Google. Ive subscribed. Hi Jim, SO, are you in NH? And I am taking your advice, especially regarding Vanguard. I may be able to work when done for a federal program to repay that loan too. And with very rare exception, renting is far more powerful than homeownership and your lower monthly costs in that apartment over owning that house with all the expenses that come with it, invested in index funds over time will probably make you much wealthier. Vanguards in the process of converting the investor shares to admiral shares (VTSAX). I am not sure, if I make some mistake in this line of thought. I almost didnt make it and am very happy I did. I'm not predicting either of those things to be clear, just as an example. https://jlcollinsnh.com/2012/05/09/stocks-part-v-keeping-it-simple-considerations-and-tools/#comment-4220505. Collins: That's kind of a loaded question there. The benefits of this fund is that it owns a basket of fixed assets so if any one of them turns very bad for some reason (default), then it will have very little impact on my portfolio. Do we manage our own HSA investments or do we have to get a 3rd party? If things work out as I plan, Ill be working about 30% of the time now. And it took me a decade after that, maybe a little longer, to finally let it sink in. Fortunately she is doing better and we are now experiencing sticker shock for the bill. Due to the so called hedonistic method of calculating the inflation rate, the inflation rate does not reflect the improvement in quality of goods or the discovery of completely new products, which represent to some (probably not to small) part the growing standard of living of a society. : https://jlcollinsnh.com/2013/12/16/betterment-wants-to-give-you-25/. One type are regular funds and another type that track the S&P but also try to cancel the dollar to shekel rates effect (using forward contracts). So, what does a month in Ecuador cost anyway? My kids asked me to run a series of seminars on my philosophies. Im afraid I am at a loss for military specific FI advice. . Keep going , you will became the next Jack Bogle! The books arrived a bit over a week ago. All investments are subject to investment risk, including possible loss of principal. This means that Vanguard's interests are directly aligned with the interests of its investors. There are several posts on other FI blogs dealing with this issue that may help. Collins: Christine, to be honest, I don't remember talking about that on my blog. At the very beginning of our conversation, I mentioned that I found my way wandering in the wilderness basically. 2) In brazil we dont have a total market index fund? I would love to explain you what is it about, so please feel free to contact me back. Would you recommend a portfolio allocation between stocks (VTSAX) and bonds (VBTLX) that considers past years performance as a variable or that would be considered as timing the market (e.g., increasing the overall percentage of bonds X/2 percentage points every year that the stock index grows X% and reset the allocation every time there is a negative annual change)? Stocks -- Part VII: Can everyone really retire a millionaire? Just in case, Ill pass your contact info on to her. The Simple Path To Wealth. Just a quick Thank You. My name is Tim and I am in charge of the outreach service for a major Second option is to pay them cash of $5105. . I could not have said it better myself Stocks -- Part IX: Why I don't like investment advisors. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 jlcollinsnh.com Privacy Policy Disclaimers. If you do that everything will work out and you will be happier. I fell for all the JK Collins wealth marketing for years. 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. JL Collins recently released his first book, The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life. Im glad to see it reach and help as many as possible! Since Im thinking to publish/submit to a contest/do something that will put it for public ridicule/scrutiny the story he appears, I thought it best to ask for your permission. My goal is $20K. The simplicity of VTSAX is extremely appealing to me, but is not an option on the TSE. Please add me to the blog post emails. We worked our fingers to the bone for the ceremony I had to chuckle a bit at your case study. In your blog you discuss investing, and also the importance of getting out of debt but my questions are: 1: should I reduce high interest debt first or contribute to an emergency savings fund/cash buffer first? Collins: Well, before we cross him off the list, let me just say, he's a fiscal saint. Yahoo and Google only seem to start at year 2000 and Vanguard only gives up to 10 year performance that I could find. Also, Ive decided its the perfect graduation present for anyone in my life. When I compare the two buckets of money both are invested the same (VTSAX) and neither have an RMD. Republic Wireless and my $19 per month phone plan. She was in college and interested in anything but investing. But it's a lot tougher to actually weather a bear market or a crash. Having just finished your book, and graduation around the corner, Id like to get all 15 seniors a copy of your book. $6360 is a lot, especially since with our high-deductabel plan well be paying it all out of pocket. Hi Jim, New Mexico Lobo. Not an ideal start to a marriage. im very new to all this and definitely not a financial genius by any means just trying to get my act together. Which of those things is more likely? I wish I had your e-mail address to send you a proper thank-you message for the work youve been doing lately. I hate fees (and now that Im educated, taxes). My experience: my return over the last 12 years was 10.09% (Stocks/Bonds allocation was 90/10) and the Index fund that followed S&P 500 in my account gave 11.12%. Morningstar and its affiliates are not affiliated with this guest or his or her business affiliates unless otherwise stated. Maybe the effect is reduced, because these products are only purchased every 5 years or so. Congratulations to JL Collins. I think I have the explanation! I was just discussing VBAIX in the comments on my most recent post: And it would be a valuable (to the rest of us, not to you) resource. This is what is known as " The 4% Rule ". What advice do you have for moving old employer 401ks into my IRA amid these coronavirus times? I live in Portsmouth, NH and would be very interested in learning about any ongoing events. One could frame it like this: They move down the social ladder a little bit, respectively quite a lot over long periods of time as far as this social ladder is defined by your relative consumption level. Well, JL, the information you provide in your book as well as your blog give credence to the Occams Razor principle. Ptak: To stick with target-date funds for a minute, if we could, it sounds like maybe you feel like they overdo it a little bit--not to put words in your mouth--just in terms of the number or type of exposures that are delivered through the fund-of-funds structure. Because if you're putting money in on a regular basis, as my daughter is, as an example, then when the market plunges, well, that's good for her, because she's getting more shares for those same dollars. You just have to learn to accept them if you're going to be in the market and enjoy the long-term gains that it can provide. And again, I think a great companion to my own book, if I can say it. With Finllect, users can automate expense tracking and categorization, access gamified budgeting tools, and personalized in-app rewards catered to each individual on our platform. And I suppose it was more of a reinforcement. For more see: https://jlcollinsnh.com/2015/06/02/stocks-part-viii-the-401k-403b-tsp-ira-roth-buckets/. Having F-You money is so true. It is very hard for me to provide much help on your question. Because if the market goes up, that means that every additional amount of money you put in, you're going to get fewer shares for that. Your spouse encourages it. I am thinking of investing the 100k in VTSMX and VGTSX at the 70% and 30% ratio. My name is Bob and I am a financial expert in lending. . You probably became fatigued at making mistakes and sought an alternative. So, I've now forgotten your question, Jeff. No one had taught her how to approach money. Thanks for the kind words and for passing my book along. Outside the comments of people who are clearly the ones you recommend not invest in the stock market, lay an upset reader saying dont buy this book because the same content is on his blog. When you're watching your holdings dwindle in value, and I do sometimes wonder, are the people who read my stuff going to be able to weather that crash just based on having read about it? 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. Thanks Jim I will offer two seemingly contradictory suggestions and some comments. Im heading over to amazon today to pick up a copy of your book to review for my military compatriots. Im inclined towards Index investing. Collins: Well, Christine, you and I share that opinion. Will be recommending the book to friends. Used to be in NH. Buy in all at once? Nice work. The Pound just dropped faster than the FTSE (logical since the companies in the FTSE are earning in numerous currencies and not just the GBP.). Thanks, TFR, Please send it along if you like, but please understand it may be quite sometime before I am able to take a look.. First and foremost, Vanguard is owned by the investors in Vanguard funds. Ill send you a PM. I am as well Im a content writer and specialize in finance, money managing, debt related topics. Collins is not yet a household name for most people. but I am unable to offer private consolations. If you do, I think youll regret leaving such an inappropriate and downright bigoted comment. So, it would be the international stuff that is the most obvious. As they say, when the student is ready, the teacher appears, One article I came across today reinforces exactly what you said: I think I mentioned a little bit earlier in our conversation that my dad had dabbled with stocks based on some tips and he got burned and that was the end of that. But I think for most people, it's going to end in tears, or it probably already has ended in tears. It all would have been extremely They decided to get serious about their savings goals and committed to building a portfolio of at least $1 million by February 2017, 1,500 days later, in order to retire at age 43. So, at what point do you suggest that people should add bonds to their portfolio? I included a chapter about them. There is still a $3000 initial investment, but a 0.04% expense ratio. But in my world, you need to think of it also as a part-time job and whether you try to find a property manager or you manage it yourself. A huge thanks for any feedback in advance. After all, those of us drawn to this path are the odd ones out. "Harry M. * Collins; three stepsons, Sergt William C. * Collins, Glover and Amos Coninsf one step t daughter. . My employer account does not offer VTSAX, although I was able to invest in VBTLX (10%), I split the rest between small cap and medium cap equity index funds. While Ive never written to you before, I am moved to do so this time. Now real wages tend to rise quite a bit more than inflation (not real wages of a big part of workers since the 70th, but this is another topic). This blog, as with everything I do, is dedicated to them. You may want to read one of Jims case studies on investing a lump sum in VTSAXthere is one where there is a guy with $35K and he recommends putting the entire amount in VTSAX: I just had a great conversation with one of my best friends about your philosophy and gave him your book to borrow. Should I make contributions to my IRA at all? . egg from all of our saving has been. Therefor I ask your permission to publish a blog with most of Stock Series translated to Hebrew, keeping your full credit. We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. No time frame, some guests have a list created in a few days, others take a few weeks. A pal of mine once said I had won the family lottery. JL blogs about financial and other matters at JLCollinsnh.com. Jim has preached constantly about the inevitable drops in the market and how you shouldnt overreact and panic sell. I kind of wish Id gotten to it sooner. Big fan of you and spreading your words down here It's not that reliable; but on average. It seems to me this person is probably just uploading audio books without respecting copyright claims. I have been in the investment business since 1979, in the mutual fund business (management) and as an advisor ( not a very good salesman since 2000) and I can tell you 99% of the advisors are overpaid. THANK YOU! These products and services are usually sold through license agreements or subscriptions. And I think I have a chapter in my book about them, too. Maximized 401K etc. Just let me know. If I'd been doing it and getting a negative result that in some fashion might have even been better, because I would have been more willing to look at alternatives and more quick to change. StocksPart XIII: The 4% Rule, Withdrawal Rates and How Much Can I Spend Anyway?" Check out the interview schedule/archive thread: https://www.reddit.com/r/financialindependence/comments/65tdwj/schedule_for_semimonthly_rfinancialindependence/. As you say in the book, they are expensive! The Boglehead book is very USA centric but some amazingly simple threads that come out of it that are like universal laws of nature, like gravity, applies to us all wherever we live. A bunch of authors have given me permission: Mr. Money Mustache, Paula Pant, The Mad Fientist, J. And of course, I was proven right. Rent v. owning: A couple of case studies in Ecuador. If this grows like Im hoping, Id love to give one of your books to each teacher who learns to teach my seminar. I wish I could introduce you to the polish audience. I found my way to the path I espouse now by basically wandering in the wilderness for decades and making every conceivable mistake you can think of. Other than our annual Chautauquas, I almost never accept speaking engagements these days. But, I cannot find any student loans without compound interest. I routinely cruise a number of FI blogs, but havent seen anyone discussing the impacts of our current inflationary economic environment. Thanks! Spoke to you on Twitter about selling your books in Malaysia. To me this looks like both asset classes lost large, and I fail to see the protection that fixed assets are meant to provide. Thank you for bringing peace into my investing soul. If you could, please take a moment to subscribe to and rate the podcast on Apple, Spotify, or wherever you get your podcasts. Feel free to send more info. An entertaining investment book what a concept! What this audiobook provides her, and others who are less than finance-obsessed, is a simple . I also want to thank you for the warm and humane way you do that, which makes reading your blog a recreational and uplifting experience. I will also read the topics you have mentioned. StocksPart XIII: The 4% Rule, Withdrawal Rates and How Much Can I Spend Anyway? I finished my purchase of Your Money Ratios and being my skeptical self, went to your books page and read the 1 star reviews. Ptak: I wanted to turn to recent times for a moment, if I could, and I'm curious whether there have been any aha moments, so to speak, for you with respect to financial matters during the pandemic period? 4: my goal is not necessarily to retire early as i enjoy what i do and want to do it for very long time, but i do want financial freedom. 2. Were I going to hold international, Id likely hold both. Your pride encourages it. I called my husband at work and told him to find out if his was transferable while he was still employed and if not I will get as close to the same funds in Fidelity and switch everything around. I am 27 years old so time is on my side. A bit about myself I am in my late 30s and after years of medical training just started my first real job as a physician, however, even though my monthly income is > 10k Im still struggling check to check. Author JL Collins accompanies these readers' stories with reflections on his "rules for the road"--as well as a candid conversation about the journey to financial freedom with his daughter, the inspiration for his original international bestseller. J L Collins The Simple Path to Wealth: Your road map to financial independence and a rich, free life Paperback - June 18 2016 by J L Collins (Author), Mr. Money Mustache (Foreword) 8,587 ratings See all formats and editions Kindle Edition $9.99 Read with Our Free App Audiobook $0.00 Free with your Audible trial Hardcover Hopefully this one doesnt. Nice work so far on the blog. But with that being said Ive not come across a variation of my situation anywhere and I was wondering (well desperately hoping). Please, give me a respond if you are interested in it. Jim: I just read your book The Simple Path to Wealth and wanted to write a review on by website. I just wanted to let you know how much your advice helped me! Please email me. And so, dollar-cost averaging doesn't protect you from that, at least not in the long term, and you should be investing for the long term. COVID-19: The unvarnished truth from Doc G. Mr. Bear, Podcasts, a good book and why I should be in 100% stocks. Bookmark. Please let me know if youre up for itall I need is a yeshere or by email would work. And, of course, it depends on the person who is reading it. It is staying the same, yet the account grows with the stock market. I will be calling Canada home soon which is why Ive opted to trade on the TSE. Are you interested in being in a part of our Future Connection Conference project? or both? We used to get down to RI on a regular basis our daughter went to URI. His blog at jlcollinsnh is a "must read" for anyone interested in financial blogs, and is read by over 100,000 fans on a regular basis. PERSONAL EXPESES: Food, DEBT payments and not much else. Develop and improve features of our offerings. I am contacting you on behalf of the Finllect Team to determine whether you would be interested in helping and educating members from the Gen Z with financial activity and independence for a better future. 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 work in the investment industry and love the investing world, too. Me and my Soldiers would really appreciate it. I put your book on my wishlist, but didnt read it at first because your book isnt available at my library. We want to help our fellow students be prepared for the future. If you bought a house 20 years ago in Detroit, you'd probably have a very different story. The couple. But that is only a guess. Would you plz contact me at the email address for further information? JL's latest book is How I Lost Money in Real Estate Before it Was Fashionable. I know youre probably super busy and probably get asked to do interviews all the time. Case Study #10: Should Josiah buy his parents a house? Looking to do a 60 equity to 30 bond to 10 REIT mix. He just opened his first Roth IRA. Thank you for taking the time to share your experience and insight? Sure will update when I know sir. One question: Many in the academic community feel you can get maybe an extra 1% long term by adding small and/or value to your equity portfolio, without adding much volatility. Thanks so much for the information. Tend to disagree about not owning your own home as in Australia we generally have a different mindset but in the end it is just bananas which way you go as the paths are in the same direction. Whoa Whoa Whoa. And there are a few things in life that are more intoxicating than choosing a company, buying the stock, and being proven right and watching it go up. im 36 now. These guys are direct and precise like the book. That makes sense for people with long time horizons. I am sure I am going to go with vanguard. You talk about the different type of retirement accounts and I havent seen an article about the 457 plan. Dow, S&P, other? I am turning 58 years old next week and my wife Lucy is 51 years old. I earn 35,700 yearly and I love to save. No debt and really not a lot of concerns about money. 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. Given this, and also that I have about $30K to invest, do you think this is a good time to buy the VTSAX fund? I am the rights manager of China Youth Press, located in Beijing, China. I plan to bring it forward in a coming post. 3: i contribute to a 403b where my employer contributes 2%, and contribute to a 529 but wondering if i should also do a traditional ira not sure if i should max out these retirement savings first or once again take care of high interest debt.