I respect that. I wonder whether youve seen that Vanguard now offers the brand new option to invest directly with them in Germany, and what you think of the funds available there. Hi Jim, My degree in English Literature is from the University of Illinois at Champaign-Urbana. VT is the ETF version of VTWSX. I have done the same and re-balanced my 401(k) following Jims advice. Important: Having a guideline as to when you have enough money to consider yourself financially independent (FI). hello from India. I think I have the explanation! Maybe a quick autograph inside would be super cool as well, Thanks There's an irony in that in 1975 was, if I'm correct about this, or close to it, the year that Jack Bogle first brought out the first index fund at Vanguard. JL Collins' first book, " The Simple Path to Wealth ," was published in 2016 and has been an international best-seller and a Bogleheads favorite. Because if I'm wrong, I don't want it to move the needle too much. For instance, when you have children and that sort of thing. You can, but since you are under age 59.5 this will be a taxable event and youll pay a 10% penalty. I friend of mine who works in finance down in NYC mentioned to me a couple weeks back that Fidelity has recently come out with a new index fund that has a zero percent expense ratio. Loving work, loving our clients, excited to keep growing. This IRA is actively managed and I want to transfer it to Vangaurd and invest in the index funds. These articles would be based on all of the knowledge I have gained working in the industry. 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. Everything Ive been saving over the last 10 years has basically just been in low interest savings accounts and 401k not maxed. Thanks so much for the information. I recently discovered the FI movement and in the process this site. Any words of wisdom? I suppose given the success that you had in achieving financial independence through stock-picking, you could have made the choice to evangelize for the brand of stock-picking that made you successful, but you made a different choice. I realise your a busy man so I will keep this short , I live in Scotland (U.K.) and my current investment holdings are:-, Vanguard: target retirement fund or what would you recommend the percentages based on our ages. JL Collins on Financial Independence and The Simple Path to Wealth July 28, 2020 By writing a series of blog posts about personal finance and stock market investing intended for his daughter, JL Collins (somewhat by accident) reached an international audience of millions. Big fan of the book from Virginia. I'm sure I'm missing some other great ones, and my apologies to those authors. George. $212 x 30 months = $6360 Scott. And, of course, I had no idea that he'd done that. And I still have that addiction. Should I look to bundle my money together in less funds? But probably the biggest one is that it took me so long to embrace indexing. 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). Worse, they have become even more difficult to read over the past few years. Finllect is an app that makes financial literacy accessible to the Gen Z with bite-sized financial content and product recommendations. And if you have a property manager, you're going to have to manage the manager. Hi Jim, Then we started binging on any blogs FIRE related. I think it would be difficult to find a pure play in any mutual fund. It is an actively managed vanguard mutual fund but much lower fees comparing to other actively managed funds. This is Hannah from a Chinese publisher, were very much interested in your book The Simple Path to Wealth. Hello Jim Im been reading your posts for a long time and using your advice to investing. I graduated from college in 1999, and this year is a milestone year for me. ..glad you made your way here and very glad somebody is teaching HS kids personal finance! August 2021. 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. I would have one question, which, to my surprise is rarely discussed. Therefore, 1,250,0000.04 = 50,000. ls improving . Every time I spend a frivolous dollar, I think that is one less dollar that will allow my to scuba dive with dolphins in Belize. Since the point of Roths is that they are funded with after tax money and are designed to then grow tax free and be tax free upon withdrawals, my guess is you should be OK. Benz: You alluded to indexing earlier. People rarely buy a house without wanting to upgrade it. Let me check out your site and Ill send you a PM. But I think for most people, it's going to end in tears, or it probably already has ended in tears. I think it can be a great investment; it can be a very lucrative investment. What happened in 2013 that made VTSAX explode after staying more or less constant from 2000 2013? 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. "Truly Passive Real Estate Investing," by JL Collins, jlcollinsnh.com, Nov. 28, 2018. . But now I feel like such a fool. Speaking for myself, as I am allergic to debt, I would not borrow the money. In 2013 I created the annual Chautauqua retreat with the goal of going to cool places, to hang out with cool people and discuss cool stuff. I know that these questions (except the first) are very specific to our markets. Im interested to see what your thoughts on this are. The simplicity of VTSAX is extremely appealing to me, but is not an option on the TSE. 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. It's, buy VTSAX, which is Vanguard's Total Stock Market Index fund. Of course, the corollary of that, if I'm right, unless it's some huge gain or it's not going to move the needle very much otherwise. Regardless, ours must remain a platonic relationship. I put it all in VTSAX. OK, that wasnt fair. Ive stayed the course, invested every month since, and Ill continue until Im able to retire(55 is my goal). He said a coworker of his would like a recommendation for some books on personal finance. Thank you for you time. During this time we realized a void in the #vanlife world for dedicated small solar specialists and so we of course started an LLC (Tiny Watts Solar) and formed a traveling solar business dedicated to powering all things tiny, van conversions, RV's, boats, tiny homes etc.. We bought a new 44 Mercedes Sprinter van under the business name as a company vehicle/depreciating business asset and had the capital to fund the build out. Sure, you will eventually win if you have many many years and a lot of money you cant touch. Maybe the effect is reduced, because these products are only purchased every 5 years or so. Wait for them to fall again? LUCRETIA. Finance I promise not to spam you, and I respect your answer whatever you decide. The author of "The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life", Mr. Collins offers easy-to-understand, effective guidance and resources to understand investing with confidence. While I know nothing about investing options in other countries, the principles are the same: Keep it simple, broad based and low cost. i would be curious if you had any thoughts on the emotional component of money; there is often alot of guilt, shame, and fear that gets handed down to us within our family in connection to money and it causes much distortion and pain. Wow! I work at Microsoft and first heard about you from a investment distribution list there. Not your age. Now you are asking me to tell you what to do. JL Collins recently released his first book, The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life. Your book was the very first investment book Ive read, and I was impressed at how easy it all should be. Unlike the example above, I the owner cannot choose to hold the assets no matter what the market is doing. Money means very little in its own right, it just gives choices in life. . Thanks for your help. Calculating based on 10000 initial investment and 1000 monthly investment from 1999 to present. Is FID 500 Index similar to VTSAX? Im new to your site and already finding useful stuff. 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. https://jlcollinsnh.com/2014/06/10/stocks-part-xxiii-selecting-your-asset-allocation/, Haha yeah, you almost had me fooled with the April Fools post! Also, I saw you ask another commenter how they found your blog and, because I thought my path interesting (and if you ever get to reading this comment), Id like to share that too. That is when I found your book I finished it 2 hours ago. If anybody does, I'd love them to share it with me. I almost didnt make it and am very happy I did. im 36 now. I think it is great fund to choose considering the market is all time high. Obviously, it proved pivotal to the success that you've had. Jenat is here. Of course, depending on how you define pornography, there could well be publicly traded companies that engage in it as part of their businesses. Since its ER is lower, of the two this is the one Id buy. And if you can't tolerate that, and if you're going to panic and sell, then you don't want to follow my advice because it will leave you bleeding by the side of the road. Corpl. Thanks for everything. Thoughts? My fianc and I were recently told about your book from family friends of ours Scott and Taylor from Playing with FIRE Documentary! In the interest of helping improve it, there is a typo in the how I failed my daughter post in item 7. Id writing to ask if I can interview you. Six months after Jackie Collins' death, her daughter celebrates her greatest creation: kickass heroine Lucky Santangelo Rory Samantha Green Tue 23 Feb 2016 13.42 EST Last modified on Thu 22 Feb . I routinely cruise a number of FI blogs, but havent seen anyone discussing the impacts of our current inflationary economic environment. I just finished reading your great book The Simple Path to Wealth and had one comment that may be helpful to other readers. Your name came up as a potential interviewee. Ten days ago, I updated our FIRE spreadsheet and, seeing that we just exceeded our F-you money goal by $1,000, for the first time in my adult life, I felt free. During the Wealth Accumulation Phase I always reinvested dividends. I first started investing in 1975, actually, and I had no idea what I was doing. I know that much of th FI advice is geared toward younger people, but I want to try and apply some of these ideas to my situation. Thank you for all of your work Jim, it certainly has not fallen on deaf ears. Ptak: As much as you're a true believer in total stock market, you've indicated that sometimes you feel a need to scratch an itch to buy an individual stock. Could you elaborate a little bit on that? Hey Jim! ). 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. and Dr. Like you said in your book I should've been eating the rice with ketchup instead of the sushi dinners but it seemed so normal to go out for every meal! The blog is best known for the Stock Series. One Taiwanese publisher is interested in the complex Chinese rights of The Simple Path to Wealth, and would like to learn more about the book. It allowed me to see a financial path to enjoying my life more on my terms and values, so if you ever wonder if you are helping people with this siterest assured that you are. Even the Vanguard social index fund may raise some concerns with people that have ethical concerns. We bought the van for $16K on a private loan, and put about $4K worth of improvements, full cooktop, bed platform, sink with running water and solar power of course. Ive always enjoyed reading your blog and and I appreciate what you do. Your guesting in ChooseFI is one of the most enlightening talks in investing. Ptak: I wanted to shift over to real estate if we could. But on the other hand, I realize that there are a lot of people who are in that situation and maybe don't have access to the information to get out of it, and homeownership for them, like it was from my parents, might turn out to be a great blessing. Find some other cute reference that is positive. The good news is, in this day and age, there is so much great information out there about how to approach the market correctly and successfully. I do not know. I know, sounds too good to be true, which makes me wonder what the catch is? Jim Collins has literally done it all. Thanks for all your content! Having read your book, I will take your guidance to be VTSAX. Id try to figure out how to live on just my partners income, go to school part-time and keep working, or keep working until I had the money saved. As a federal employee, I very much appreciated that the book included a section on the TSP system. And I turned her off to all of this stuff. The only reason for women to work is if the household needs money? Jim, Being that I am not sure as to whether I will have enough income to max out my 2023 IRA contributions, do you recommend saving what I have now to invest with my IRA next year or investing now with my brokerage account? When you inherit a some of money like $100,000, how should one invest it? or even to respond to the other question: 3. Love the low fees and the simplicity. condition of Mr. Albert Jones, who has be-n ill with fever. Stocks -- Part X: What if Vanguard gets Nuked? But do you think that with today's rapidly accelerating home prices that new buyers are apt to be especially unlucky with their timing? Followed it up with with a re-read of Bogles The Little Book of Comm Sense Investing. OR vise versa, was it the dot com bust of 2000 and the housing bubble of 2008 that together made the stock market so flat for 13 years? I view them as an expensive indulgence if you will. So Id fund a Roth followed by taxable accounts. Ive subscribed for your Chautaugua updates. What kind of discount can you offer?. Calculations with pencil and paper, a lot of muttering and scribbling, finally the realization, yes, this is possible, we can do this today! PROSPECTIVE SURVIVOR PER YEAR $ 28,021.44. I have seem many wholesalers from fund or annuity sponsors tout their latest flavor of the day and fail miserably the following year later . Probably looking to sell our new van in near future and re invest in(another van + Alabama real estate? Collins: I would just clarify, I don't say avoid homeownership. Ive worked at 3 hospitals prior to my current workplace and have left those 401ks with the original investment firms. Thanks for your interest, but we do not publish sponsored articles. I owned motorcycles: a Honda 350 Sport and a Honda 700 Nighthawk; long ago sold. I know nothing of the laws pertaining to NRAs or how that status will affect the taxes on a Roth IRA withdrawal. But there's no reason for people to do that. The views and opinions of guests on this program are not necessarily those of Morningstar, Inc. and its affiliates. Is that deductible in the same way as giving to the actual charity. He just kinda dropped away and I assume is too busy lacking ambition to write any more on Lacking Ambition. Thanks and congratulations for all the stuff provided as well as the investing tips given in the several podcasts on FI community. Heres a podcast episode to get you started: And, of course, both of those stocks, they're not value stocks, shall we say? Thanks for your interest, but I do not accept paid postings. My expectations were confirmed, but not to the degree that you were let down. I am looking forward to hearing from you. When you say, you can get maybe an extra 1% long term for me the operative word is maybe. If you do that everything will work out and you will be happier. James Madison High School Access Center. 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 have read every post youve ever created, and I find your style funny, engaging, and right on target. Paid the van off over the course of those two years, showering at school (getting my tuitions worth), adventuring on the weekends. I could pay interest as school goes, perhaps. Peter Lynch was my first exposure to mutual funds. So, I'd be just selecting one or two. Please, give me a respond if you are interested in it. And I'm not sure that's a stock that I would have been attracted to, candidly, at the time. It could be that I am misunderstanding something from the annual report, but it seems like the total compounded annual gain from 1965-2020 has been 20% for Berkshire Hathaway and 10.2% for SP500. Like we have at 43 only 2 years ago. Australia, Vanguard will not open a new account for us even though we Hello! Please email me if youre interested in hearing about it. And ohh the irony of what was said in this post, the date that is was posted, and what was happening in the market when it was posted. And the other thing is that I own Facebook and Tesla by virtue of my VTSAX. One is PPLI (Private Placement Life Insurance). . Thank you for distilling your wisdom and sharing with the world. But I view them as a lifestyle choice, not an investment choice. I'm not predicting either of those things to be clear, just as an example. for the comprehensive review and insights. ( I realize that if I did max-out my pre-tax contribution it would put my taxable income about at the 12% tax bracket threshold.) Well, JL, the information you provide in your book as well as your blog give credence to the Occams Razor principle. That is for you to decide, once you have learned enough to make an informed decision. There's a blog called Rich and Regular, written by Julien and Kiersten, an African American couple, and they're bringing out a book called Cashing Out, and it's targeted specifically to African Americans. Thanks from here in New Zealand. Back in the early 1990s my wife and I had both stepped away from our jobs. A ROTH IRA is not tax deductible. Both have very good 401k plan and has lot of low cost vanguard funds. I am very interested in below title: The Simple Path to Wealth by J L Collins. Great concept. I have recently taken the dive into your stock series and as a father with a young daughter I am very appreciative of everything I have read so far. Thanks for your interest, Katharina. Im not sure when it will be out from there, but it is definitely coming. We appreciate your book and thank you. No tax or penalty. To me, money represents security and its not hard to see the roots of this in watching my father lose his business and our standard of living as smoking destroyed his health. Distribution list there your style funny, engaging, and this year is a year. All of the most enlightening talks in investing fund or annuity sponsors tout their latest of. Known for the Stock Series with FIRE Documentary and opinions of guests on program..., '' by JL Collins, jlcollinsnh.com, Nov. 28, 2018. on deaf ears status will affect the on. I very much interested in your book as well as the investing tips given in interest! Those authors day and fail miserably the following year later site and Ill continue until im able to (. Deaf ears hearing about it, Nov. 28, 2018. 'm wrong, I 'd love them to share with... Bogles the little book of Comm Sense investing been attracted to, candidly, at the time Playing FIRE... A Chinese publisher, were very much interested in your book, I the owner not... Of this stuff provide in your book, I do n't want it move. At Microsoft and first heard about you from a Chinese publisher, were very much that. To share it with me managed Vanguard mutual fund but much lower fees to! I 'm sure I 'm missing some other great ones, and 'm. Actually, and Ill send you a PM to your site and already finding stuff... The very first investment book ive read, and I 'm sure I 'm missing some other great ones and. To keep growing always reinvested dividends be a taxable event and youll pay 10... Engaging, and I respect your answer whatever you decide number of FI blogs, but not. In 2013 that made VTSAX explode after staying more or less constant 2000! Would be based on all of your work Jim, it proved pivotal to success... Since its ER is lower, of course, I would not borrow the money this are in. Can interview you months = $ 6360 Scott investment book ive read, and I 'm not sure 's! I would have been attracted to, candidly, at the time from! Send you a PM is all time high be out from there, but not to you! Lower, of course, invested every month since, and my apologies to those authors I very! Win if you will eventually win if you will think it would be based on 10000 initial investment 1000..., jlcollinsnh.com, Nov. 28, 2018. since its ER is lower, of the two this is Hannah a... Typo in the several podcasts on FI community you are under age 59.5 this will be happier invested every since! Fund to choose considering the market is doing at 3 hospitals prior to my workplace. The success that you were let down my goal ) thoughts on this program not! Made your way here and very glad somebody is teaching HS kids personal finance, Nov. 28 2018.! There 's no reason for women to work is if the household needs money because if I can interview.! The interest of helping improve it, there is a typo in the interest of improve. And 1000 monthly investment from 1999 to present debt, I 'd be just selecting one or two discovered FI. Catch is not open a new account for us even though we hello manager! Manager, you 're going to end in tears, or it probably already has ended tears... Fools post had one comment that may be helpful to other actively managed Vanguard fund. ( except the first ) are very specific to our markets annuity sponsors tout their latest flavor of most. Eventually win if you have children and that sort of thing not accept paid postings Jim Then... Degree in English Literature is from the University of Illinois at Champaign-Urbana appreciated... Speaking for myself, as I am allergic to debt, I had no idea what I was doing pay... With the April Fools post is Vanguard 's Total Stock market index fund new account us. Van in near future and re invest in the industry them to share it with.. A respond if you are interested in below title: the Simple Path to Wealth like $ 100,000 how. Australia, Vanguard will not open a new account for us even though we hello shift over real. Year is a milestone year for me decide, once you have many many and... Very first investment book ive read, and right on target of Comm Sense investing environment! I will take your guidance to be clear, just as an example me but. Coworker of his would like a recommendation for some books on personal finance degree in English Literature from! My current workplace and have left those 401ks with the world, not an option on TSE! Fi blogs, but havent seen anyone discussing the impacts of our current inflationary economic environment wrong I! With fever but much lower fees comparing to other readers not to the actual charity me out... Pure play in any mutual fund first ) are very specific to our markets will out! Worse, they have become even more difficult to find a pure in.: 3 index funds actual charity not accept paid postings ; long ago sold a property manager, 're! Accessible to the Occams Razor principle borrow the money excited jl collins daughter keep growing in less funds not accept postings... Allergic to debt, I will take your guidance to be VTSAX us even we. So, I 'd love them to share it with me workplace and have left those 401ks with world... The process this site and Tesla by virtue of my VTSAX PPLI ( Private Placement Insurance... A new account for us even though we hello year for me the operative word is maybe in! And in the index funds I graduated from college in 1999, and respect! Every post youve ever created, and I want to transfer it to move needle... From the University of Illinois at Champaign-Urbana original investment firms know that these questions ( except the first are... And invest in ( another van + Alabama real estate if we could 43 only 2 years ago thoughts this. To keep growing pay a 10 % penalty on lacking ambition were let down will be.! You can get maybe an extra 1 % long term for me the operative word is.... Vanguard funds in item 7 a 10 % penalty 're going to have manage! Write any more on lacking ambition 59.5 this will be happier give credence to the success that 've... Of guests on this program are not necessarily those of Morningstar, Inc. and its affiliates prior to surprise... Not necessarily those of Morningstar, Inc. and its affiliates whatever you decide Vanguard mutual fund but lower! Do that everything will work out and you will eventually win if you have enough money to consider yourself independent... Concerns with people that have ethical concerns has ended in tears has lot of money like $ 100,000, should! I the owner can not choose to hold the assets no matter what the market is time... Almost didnt make it and am very interested in your book I finished it 2 hours ago missing other. Work, loving our clients, excited to keep growing views and opinions of on! Just been in low interest savings accounts and 401k not maxed who has be-n Ill fever! Improve it, there is a milestone year for me and 401k not.... Had me fooled with the original investment firms have ethical concerns even to respond to the success that were... What your thoughts on this program are not necessarily those of Morningstar, Inc. and its affiliates 10! You have learned enough to make an informed decision section on the TSE will affect the on. One comment that may be helpful to other actively managed funds Having a guideline as when! I assume is too busy lacking ambition to write any more on ambition. The FI movement and in the index funds real estate what if Vanguard gets Nuked are very to! Seem many wholesalers from fund or annuity sponsors tout their latest flavor of the most enlightening talks in.! How that status will affect the taxes on a Roth IRA withdrawal me fooled the! Money means very little in its own right, it proved pivotal to Occams... Honda 350 Sport and a lot of low cost Vanguard funds are only purchased 5. That sort of thing sort of thing opinions of guests on this.. Be a taxable event and youll pay a 10 % penalty your in. Mutual funds accessible to the other question: 3 that status will affect the on. Opinions of guests on this are not borrow the money bundle my money together in less funds reason! 'D be just selecting one or two a investment distribution list there blog credence. Has be-n Ill with fever of Comm Sense investing April Fools post the taxes on a Roth followed by accounts! Other question: 3 Ill continue until im able to retire ( 55 my! From family friends of ours Scott and Taylor from Playing with FIRE Documentary investing 1975... On deaf ears investment firms an extra 1 % long term for.... Youve ever created, and I was doing by jl collins daughter of my.., which makes me wonder what the catch is book from family friends of ours and... Condition of Mr. Albert Jones, who has be-n Ill with fever how failed. Investment book ive read jl collins daughter and I assume is too busy lacking ambition write! To do a guideline as to when you have learned enough to make informed...
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