I thought I had found the holy grail. Hello Sir, Collins: Jeff, that is the post that has been the most popular in terms of views. if you wish I can help in order to get translated or released also the italian version of the book, just let me know. 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. 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. As Im just beginning to reallocate my funds to invest in Vanguard ETFs, I do have a question on whether it would be better to invest in VTI (Total Stock Market) or VOO (S&P Index)? If I were to add international, this would be the fund Id chose and with it you no longer need VTSAX/VTI. We have a son in elementary school. Weve worked the program, simplified our lives, retired a mountain of debt, and hit our number. The rent vs buy should be looked as what minimizes a consumption expense. Hi JL, just read and loved your book and stock series. Yes, the markets have been down, but we will come out of this mess and the economy will recover. Sure will update when I know sir. This is my main fear at the moment. Maybe the real wage growth flows into products or new versions of products which no one really needs? I hope I have been able to do justice to your work, in some small measure. Morningstar and its affiliates are not affiliated with this guest or his or her business affiliates unless otherwise stated. We used to get down to RI on a regular basis our daughter went to URI. We want to edit this a little and then try to get some traditional PR around it. keep it up. Ive worked at 3 hospitals prior to my current workplace and have left those 401ks with the original investment firms. Thanks for the kind words and for passing my book along. I am so happy to have found you through the Mad Fientist. Buy in all at once? If you are wondering whether to dive in,thisindependentreviewmight help. But what about for people who are closer to drawdown or financial independence--whatever you want to call it--who do come into a large sum of money? First thank you so much for sharing all your knowledge on building wealth. Im a content writer and specialize in finance, money managing, debt related topics. Jim, I cant thank you enough, would love to buy you a coffee, beer, or dinner someday if our paths cross! All investments are subject to investment risk, including possible loss of principal. Its like being your own robo-advisor! I agree with basically everything, and its all great advice. And maybe if you bought a house today in San Francisco, 20 years from now, for some reason San Francisco declines and becomes the next Detroit. Even Bitcoin, for that matter. 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. Get an IRA going planning on re reading that section again. Hope to see you on the site now and then. Im another brazilian that has just finnished reading your book, and I can tell you it was another mark in my (short) investment life. People rarely buy a house without wanting to upgrade it. I think in the end it was a cheaper route to go but I definitely did not need to tack on the extra $10K in loans, I could've worked, I shoulda woulda coulda. I appreciate your honesty, clear communication, and no-BS approach to investing and to life! Thanks from here in New Zealand. I recently listed to your newest podcast on ChooseFi and I had some thoughts about the bond section. Can I email you directly? Hello Jim, Im sending you a big hug from Brasil. Which is better IRA rollover or NUA and pay the taxes up front. Is there another option to invest in smaller amounts over a period of time ? I emailed you my manuscript few weeks ago, hope you read it. We went into chapter 13 with 90 grand of debt. Looking to do a 60 equity to 30 bond to 10 REIT mix. That's one of the reasons we work hard and save and invest money. Nice work. The Tax-deferred IRA pool of money is the best money to give charitably in death, otherwise, the heir will have to consume over 10 years and someone will have to pay the tax. There are several posts on other FI blogs dealing with this issue that may help. Podcast? My fiance and I are especially fortunate among the Working Poor (the fastest growing class in America) in that we have frugal habits and have managed to save 7 grand over the past couple years in dead end jobs, but really we are one disaster away from ruin (hospitalization, or the heat or roof needing to be replaced, etc). SO, are you in NH? Both have very good 401k plan and has lot of low cost vanguard funds. I love your simplicity and straightforwardness. Read this book if you want to get your personal finances in order. . And one of the highest compliments I get from people is that, Wow, I've tried to read a lot of finance books and finally, reading yours, this stuff makes sense. So, that's who I'm writing for. I really appreciate the insight and speedy response. Actually, as we talked about earlier, Mr. Bogle brought out his first index fund the same year I started investing, but that didn't benefit me for the reasons we discussed soon enough. You may have said this in the book, but I may have misunderstood it, my apology. I am the rights manager of China Youth Press, located in Beijing, China. I came across your site and I think it can be a great fit for my Even the Vanguard social index fund may raise some concerns with people that have ethical concerns. And, of course, fees are one of the reasons that active management is at a disadvantage to index funds as well. My work has taken me to most states across the country as well as Canada, Germany and England. Rent v. owning: A couple of case studies in Ecuador. Ive only been with the organization about 5 years so the account only has about $20k in it now. Misses Nannie and Narcissa O'Eannon, of Washington. Look forward to hearing from you. I just finished reading your great book The Simple Path to Wealth and had one comment that may be helpful to other readers. What is the best place for a 70 year old to place some money into investments. Opinions expressed are as of the date of recording. I actually read the book, The Simple Path To Wealth, in April 2020. That one came out in 2021. I love the content here on the site and am buying your book this afternoon. Glad to hear it, but I hope you still love me when the markets take their next major dive. I bought the first one, a 72 Mark IV back in 84, sold it in 1988. My thinking about it is this. Thank you so much for writing this book. She is the daughter of Phil Collins and his second wife Jill Tavelman. and the taxman cometh. Im Julie and I lead marketing at Passiv. "StocksPart XXVII: Why I Don't Like Dollar Cost Averaging," by JL Collins, jlcollinsnh.com, Nov. 12, 2014. 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. I just randomly came across your You Tube recording with Google, A Simple Path.. 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. I could not have said it better myself Stocks -- Part IX: Why I don't like investment advisors. Your spouse encourages it. My job was designing substations for the power grid. Speaking for myself, as I am allergic to debt, I would not borrow the money. Where do you find your narrators? So, as Jack Bogle once said, performance comes and goes, but fees are forever. How does the fact that BH operates as a conglomerate of diverse companies play into your thinking about this? Hi Jim, But there's some subject matter, topics that are just harder for some people to absorb than others. That is 6.8 and 6.1 TWRR respectively. I know you dont recommend investing in a single company, but Microsofts stock has been performing exponentially for the past 10 years. COLLINS. Benz: One area where you run counter to the conventional wisdom is that you're not a big fan of dollar-cost averaging. I'm wondering if you can give us a quote for this story maybe along the lines of: "The top 3 things I would do if I was 50+ and preparing to retire?. I had about a years worth of wages saved up,and I figured that I could supplement that playing pool.Some nights I was winning $200.00-$300.00,tax free. A left-over 401k has access to a BlackRock index fund that that seeks to match the performance of the Dow Jones U.S. Total Stock Market Index with an expense ratio of only 0.0146%. From 1989 to 1995 my wife and I were taking unpaid sabbaticals. I know that these questions (except the first) are very specific to our markets. When you're working, and you have cash flowing in, and if you're smart and you're following my advice, you're taking a significant portion of that, and you're channeling it toward your investments. Social Security: How secure and when to take it, Fighting giraffes, surreal landscapes, dancing with unicorns and restoring a Vanagon, How to be a stock market guru and get on MSNBC, See you next year.until then: The Origin of Life, Life on Other Worlds, Mechanical Graveyards, Great Art, Alternative Lifestyles and Finding Freedom, Stocks -- Part XV: Target Retirement Funds, the simplest path to wealth of all. Looks like you are in Europe, so this post should help. Jim you called and I was traveling. https://jlcollinsnh.com/2014/01/27/stocks-part-xxi-investing-with-vanguard-for-europeans/ I hope they can learn just by reading. 20 years out this will give some folks the opportunity to tell me, See, I told you so. But what about something that's arguably even simpler, or is simpler in my mind, which is just to buy a target-date fund and call it a day? About J L Collins These days, I'm a book author and financial blogger on jlcollinsnh.com, but it wasn't always so. Im now looking at investing in regular intervals. The historical rule of thumb suggests a portfolio mix of 60/40 percent stocks and bonds by asset allocation offers the best route for appreciation while still allowing room for protection during a downturn. This year it was effortless to decide what to buy for Christmas gift. It is in Ronda. She is the younger half-sister of Simon Collins and Joely Collins, who are Phil Collins 's children with his first wife, Andrea Collins; and older half-sister of Nicholas and Matthew, Phil's children with his third wife. There is an old saying attributed to Will Rogers, The first thing a man does when he comes into a little money is buy too much house. It is true. Hi JL. I love this blog and the tremendous knowledge you have given me from your book. JL Collins: Yes the book has sold over 160,000 copies sold and the book's 4th birthday was June 18th, 2020. So, I am sort of broken myself of the addiction. Im glad to see it reach and help as many as possible! Other half not impressed, clings to the old traditional view, does not want to give up comfort of owned home for freedom, prefers to stay in gilded cage. Thank you for all of your work Jim, it certainly has not fallen on deaf ears. Pretty much all mention your stock series and I cant get enough. My time horizon is about 8 10 years (Im 62). 2: what are your thoughts on whole life insurance and disability insurance? And I've started working on or thinking about a new post where I'm going to list some of the key books that I like. I was 13. Even more fortuitously, I stumbled onto your blog last year and in no small terms, it changed the course of our lives. I have dialogue between Erik and Moe, but Im a bit terrified of posting it public. Im losing the faith. I think it can be a great investment; it can be a very lucrative investment. And, of course, both of those stocks, they're not value stocks, shall we say? Although as Im just back from six weeks in Ecuador Im a bit late responding! Better you than me. Just let me know. The author created the book for his adolescent daughter, who has little interest in investing and therefore needs an easy, automatic path to achieving her financial goals. Id love to include yours, tooevery article narrated is credited 3+ times per episode (name & site), and our podcasts are all ranked in Apple Podcasts in the Top Charts. If you bought a house 20 years ago in Detroit, you'd probably have a very different story. I think I have the explanation! I am sure I am going to go with vanguard. I have read articles and most say to just use the regular funds (one reason is the intrinsic value of stocks). In short, it sounds to me like you are thinking about this correctly. Here's the one I like: 25x the annual amount you spend/4% of your assets. . 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. JL Collins is one of the best financial bloggers on the web. 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. But from that, while it was it was a brutal experience and financially tough, it was great education, and I went on to own property, investment property, and did fairly well with it. At the time we bought a high-deducatable, $10,000 as I recall, catastrophic policy. We are currently both full time parents for our toddler twin boys planning new future adventures. I have read every post youve ever created, and I find your style funny, engaging, and right on target. You might post your specific questions here: If you are interested in my ideas, they are all laid out here in the blog and in my book. The Simple Path to Wealth. Would renting a 1BR/2BR be more frugal vs buying when all is said and done? I have bought your book and have been investing in your style for a few years (via canIretireyet.com). 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. And any book that you would recommend as a follow up of yours? In a simple, engaging way, Collins shares the basic wisdom you need to make your money work for you, not against you. I am thinking of investing the 100k in VTSMX and VGTSX at the 70% and 30% ratio. Thanks for your immediate reply. 2. So, mistake number one. Ptak: I wanted to shift over to real estate if we could. How can I find more than the last 22 years worth of data? By adjusting your allocation once you are living on the portfolio and have added bonds. I think you've said that the 4% guideline can be a good starting point for people who want to decide if they've saved enough to be financially independent. In all your articles, you talk about the Vanguard index funds you recommend, but never mention why you prefer those over the corresponding ETF, even if they have the same expense ratio. Im 31 years old and getting into the FU money game now. Sailboat and disappear to South Pacific? I view them as an expensive indulgence if you will. But I think that if you are young and your goal is to achieve financial independence, one of the key things you want to do is keep your housing expenses as low as possible. i love your blog. I particularly like that you are civil with people who have differing viewpoints. By way of introduction, I am a Finance & Content Intern at Finllect, a Dubai-based fin-tech start-up. also What is your take on goldmoney.com? I had an old 401k through Fidelity. This is especially important because these documents provide information about fees, advisor education, and investment policies. Ironically Ive read your series before Ive read one page of Your money ratios. But when you stop earning that cash flow, and you decide to retire, whether you're taking a sabbatical, or you've come to the age where you're not going to work anymore, then you need something else, it seems to me, to balance out the volatility of stocks, and maybe to provide some dry powder to take advantage of the plunges. I finished my purchase of Your Money Ratios and being my skeptical self, went to your books page and read the 1 star reviews. I have to look at that book again one of these days. Lets pretend Obamacare and the subsidies available to low-income FI folks dont exist (humor me). 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. Your approach just hit home with me. What I mean is augment the information in the book to address some important asides and create a condensed version (maybe you already have one in this: https://jlcollinsnh.com/2011/06/08/how-i-failed-my-daughter-and-a-simple-path-to-wealth/, starting with It starts with nine basics. Hello. Im trying to figure out how to contact you and all of my comments go to spam. I actually prefer to see these comments on the blog so the rest of the community can see and enjoy them. Often they buy stock in these not so ethical companies so they can vote and even elect there own reps to the companies board of directors. I know you are retired but I was hoping you could help settle a debate we have on NUAs and ESOP distributions. There are two options for owning fixed assets: you can buy the asset yourself and own directly or you can own through a bond fund that is similar to an index fund that purchases a basket of bonds/ treasuries. BTW, please tell them 5-star reviews on Amazon are always welcome! "But Dad," she once said, "I know money is important. Ive been following all the advice and have been religiously dollar cost averaging into the S&P index, or the closest I could come to that, across multiple companies and 401(k)s over the last 20 years. I am frustrated that the large brokerage firm makes it almost impossible to easily monitor my performance. 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%. It's, buy VTSAX, which is Vanguard's Total Stock Market Index fund. They are very tax friendly and can be cash accessible. Please email me on my email below. Chautauqua 2014 preview, closing up for travel and other random cool things that caught my eye of late. 'Re not a big fan of dollar-cost Averaging rollover or NUA and pay the taxes up front basically everything and. As a follow up of yours the conventional wisdom is that you are retired but i hope they learn... 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