Hope they do as well. Research indicates, going out 30 years, less than 1% of active fund out perform. So, if you can read my book, and it makes sense, the principles and approaches make sense, then I think that's the better approach than target-date funds. But if it goes that far, that you cannot afford the goods which constitute a modest normal life, there might be a problem anyway. And I want to sincerely thank you from the bottom of my heart for giving me an endless optimism for the future. This blog launched in June 2011 simply as a way to archive this information for my daughter. I will offer two seemingly contradictory suggestions and some comments. Current total break down: US equities: 90%, International 6%, Bonds: 4%. If you have any questions, please do not hesitate to let us know. 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. 2) In brazil we dont have a total market index fund? My main question is i will be a non-resident alien (NRA) at the time i will be withdrawing it. Glad you found your way over here. Better to learn a bit to do it for yourself. And it took me a decade after that, maybe a little longer, to finally let it sink in. . I've seen it as buying something that's more important. COE T340 Prime Power Even if it is a good company. Things change and F-you Money is your shelter in the storm: https://jlcollinsnh.com/2011/06/06/why-you-need-f-you-money/. If you have already addressed this elsewhere then my apologies, but I am really curious about your thoughts on this. I think it would be difficult to find a pure play in any mutual fund. And as we talked about a little bit earlier, nobody knows when these drops are coming. What does buying a new car really cost over the years? Whoa Whoa Whoa. Case Study #9: Lars -- maximizing some good fortune and considering "dollar cost averaging". Why have you not chosen to do that? Since you have written so much on helping people take control of their investments, I wanted to share with you a paper I have written on financial advisor disclosures. Maybe there will exist goods of that kind in 10 years, in 20 years and so forth, which will be only affordable for those, who took part in the general growth of the economy respectively the wage growth, and not for those who adjusted their income to inflation? Now, we have zero debt, and several hundred grand growing in VTSAX and 401Ks and are on track to be completely financially independent within 7 to 9 years. A true Financi. So, my main thought was watching this is theres going to be a lot of tears for a lot of people. 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. My only debt is my mortgage (2.5%). I know youre probably super busy and probably get asked to do interviews all the time. I recently started reading your website. Thanks for your interest, but I do not accept paid postings. Better you than me. Hi Jim, The calculators have been daunting and I'm hoping I can really start making serious payments, $1K/month would get me free by March 2023, still seems too far way but is certainly saving $$$ on interest vs. the minimum payments. Hindsight is always 20/20 and it is not hard to think of companies that have outperformed VTSAX over the last decade or so. Monday of this week, I started researching, I knew we had made huge mistakes with letting our money sit in bonds, I met with 2 financial planners and did hours of research on what they had told me. A tremendous blog mate. If the idea of moving to index investing makes sense to you and you are ready to make the change, that is what you should consider. REDUCED PENSION . Now that I am living on my portfolio, I have the dividends sent to me. Ive always worked, but made enough to travel, quit, then repeat. But it sounded to me like a good idea to archive the information. Pretty much in that order although Ive done some more than once. Eight years from the 4th of March, 1869, he will be about fifty-six years old. It was revealing that Grant, still haunted by his prewar fear of poverty, analyzed the presidency through the lens of financial security. So if you want to follow my advice on that, VTI is your fund. Hi Jim, I am very interested in below title: The Simple Path to Wealth by J L Collins. Dear Mr. Collins, And rich. Gimme a break. It's a pleasure to be here. New Years goal is to cook in the van even more and eat out less! For example in the several years after 9/11 when you were not working, were you relying on savings in non-retirement accounts to get you by? Which of those things is more likely? I am planning to order more copies so that my friends and I can read your book in my book club early next year in 2021. He will most likely retire in 6ish years. This week i read you book and loved. Should I increase my the pre-tax contributions (up to $16,500) to my employer-retirement account or would it be better contribute just up to the 3% match, then put more (after-tax) money into my larger IRA? Jim Collins has literally done it all. . I recommend VAIAX . It is very hard for me to provide much help on your question. She is currently a high school junior and she is too busy with school work(5 APs) and extra-curricular activities. Now I am off to read more of your musings.. Other than most of it is informative Only MOST of it??!! Hope to hear from you soon! JL Collins retired at a more "normal" age than Mr. Money Mustache and started his blog as a way to pass on his financial/life knowledge on to his daughter. I would love to send you two pics celebrating this moment. Id only add that, for those whose employment provides for a short career, preparing for that carriers end is essential. My degree in English Literature is from the University of Illinois at Champaign-Urbana. affiliate company which focuses on the following topics: Tech Collins: Jeff, there wasn't a road on Damascus kind of moment. Best of luck as always, and hope you find your illusive inner-self. Under 1% falls within the margin of error and you could equally say you can maybe lose extra 1% long term. What is certain, your expenses will be a bit higher as will your volatility. (https://calendly.com/na-tawakkol/15min) You may have written your text differently given changes that have come subsequently. Kate. I just wanted to let you know that as of November 2018 VTSMX is no longer available. This is Hyelim Bae from Sam & Parkers, the publishing house in South Korea. What types of bonds? J L Collins The Simple Path to Wealth: Your road map to financial independence and a rich, free life Kindle Edition by JL Collins (Author), Mr. Money Mustache (Foreword) Format: Kindle Edition 8,954 ratings See all formats and editions Kindle Edition 449.00 Read with Our Free App Audiobook 0.00 Free with your Audible trial Great on Kindle Hi Mike yep, its us. . Collins: That, Jeff, is a question that pertains to us, personally. 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. But your teachings have shattered that notion. is visiting Mrs. W. V. Atkins. Ptak: I wanted to shift and ask you about retirement income. So onto google: Jim Collins blog This IRA is actively managed and I want to transfer it to Vangaurd and invest in the index funds. Me and Mrs Why925 got inspired 7-8 years ago on MMM and ERE blogs and after reading Rich dad poor dad, Your money or your life and 4 hour workweek. New Mexico Lobo. Sounds like weve walked a similar path. And if you have a property manager, you're going to have to manage the manager. You can't become wealthy if you're carrying debt. And having a clear path has lifted this massive weight from my shoulders. In fact, if you are willing, Id love to see you add your comment above to that post and the discussion there. I'm not predicting either of those things to be clear, just as an example. I would also love to see a post where you shared more resources like MMM and other FI, outspoken, intelligent writers. Didnt you write on article on creating a charitable foundation with Vanguard? Hi! My name is Tim and I am in charge of the outreach service for a major I feel like I dont have time to be conservative. Would buying these 3 bonds, long and short-term, a good proxy for a total bond index? 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! Read this book if you want to get your personal finances in order. Hanging on allowed me to retire in 2013 and Ive never been happier. And I may have forgotten one or two. And I'm not going to build a portfolio of these things, because that's counter to my investment approach. I am new to your work and read your book this week. No he didnt, but I told him, if he didnt read it and pass it on to his boss by next week, when we talk, I would go to Fidelity with my money he laughed but said he would read it this weekend. I think that's a great idea as a money lesson for your children. I just finished reading the simple path to wealth and I will continue to contribute to my current employers 401(k) plan but wanted to have a separate account account for the VTSAX. Thanks Jim. Ill answer them as best I can and maybe it will turn into a Case Study post! Our guest on the podcast today is author and blogger JL Collins. As Ive said before, I owned them for 28 years myself. Its a little late to be starting an IRA (I am 35 and she is 33) for her but I figured better late than never. Closing up shop plus an opening at Chautauqua, my new podcast, phone, book and other random cool stuff. Isnt it University of Illinois Urbana-Champaign, not Champaign-Urbana? I do not want to cash in my retirement savings (a target date fund) or my VTSAX. 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. So, basically, in my world, it's not a matter of age, it's a matter of cash flow. https://jlcollinsnh.com/2018/06/28/stocks-part-xxxiv-how-to-unload-your-unwanted-stocks-and-funds/#comment-4220324. Gerry, Thanks for posting the story here: https://jlcollinsnh.com/2016/07/07/reviews-of-the-simple-path-to-wealth-gone-for-summer/#comment-4216305. Collins: Well, first of all, I agree with you, it is simpler. Long time reader, lurker, and fan of your content. I also have no debt. What are a couple of the other key precepts that run through that Simple Path to Wealth? 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. But, as Andy Rooney once said, Never expect too much from your company. For someone young like my daughter, who's 27, I tell her all she needs to do is buy VTSAX, the Total Stock Market Index fund . Should we now pull it all out of American Funds and put it into VTSAX? Homeownership is the American religion as James Altucher has said a number of years ago, and that's not an accident, that's by design. I am half-way listening to the Simple Path to Wealth audiobook and was looking for the downloadable PDF that you reference. Houses are an expensive indulgence, not an investment. This threw me off. Or is it more likely to go down? Well, the market goes up three out of four years. Thanks for the kind words and interest, Justin! Regrettably, I cant go it alone. 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%. But what I do blame myself for is a college buddy of mine in the mid-80s, who was an analyst with Duff & Phelps, introduced me to the concept of index funds. I love you Brother! I was trying to help an older women to choose a vanguard fund for her IRA. I immediately started my position in Vtsax. our entire lives. And, of course, it depends on the person who is reading it. I came across your site and I think it can be a great fit for my Thanks and congratulations for all the stuff provided as well as the investing tips given in the several podcasts on FI community. People buy it when things are bad, driving up its value. Scott. And what was the impetus for you to get started sharing what you had learned with a broader audience via your blog and your books? Now corrected. Listen Now: Listen and subscribe to Morningstar's The Long View from your mobile device: Apple Podcasts | Spotify | Google Play | Stitcher. but remind me never to play pool with you for $$. for your very kind words. I am disable can,t work any more. Were raising our seed round; please, read about it here: https://startengine.com/learnt. The negligence that led me to DIY investing, Part XXXVI: Estate Planning 101 -- The Simple Path to an Estate Plan, The Top 9 (Bad) Arguments Against Bitcoin, Investing with Vanguard for Europeans: 2020 update. I hope I have been able to do justice to your work, in some small measure. Not sure I will be reading your financial guide past page 10. Ill keep an eye out for yours. Ive been mostly learning the hard way over the past twenty years. I just increased my pre-tax contribution to 10%. I have two questions which I dont think you dont really address in blog posts, or only fleetingly. Please reach out if you would be interested. $100k. This will be much more broadly diversified than buying a rental property and has none of the management hassles. I started my blog in 2011. 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/. Collins Complete DIY Manual - Albert Jackson 2004 If you feel comfortable sharing with us you can contact me at my email. They are offering payments of $212 per month interest free for 30 months. I have 2 separate 401(k) plans from previous employers in Fidelity. have you had a chance to look at how Indian mutual funds have performed? But he asked about risk tolerance and time horizons and all those good things they ask about, and he put me in the Southern Company, which was a utility serving the states in the South, and in Texaco, which, of course, was an oil company that I think has since been absorbed. I guess this topic would deserve an in depth exploration. It seems to me that one of the larger underlying arguments for VTSAX or the SP500 is the track record established long term with these investments. Thanks for your immediate reply. On the hunt for my next Finance book, I was recommended Your Money Ratios. Thank you for considering. Thanks and I hope youre enjoying retirement! When we got off the phone she said under her breath, Thanks JL. And then compared Vtsax chart to the S&P 500 the charts would look totally different. Having read your book, I will take your guidance to be VTSAX. I have a popular podcast network where we narrate the best blogs covering finance & personal development. I want your book, I hate to read books. I view them as an expensive indulgence if you will. I was 13. For my children ages 26-35. Maybe the real wage growth flows into products or new versions of products which no one really needs? Just take a look at the S&P500 i.t.o. Your book has been an absolute pleasure to read thus far. So, you're just better off getting that money to work in the market as soon as possible. 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. Speaking for myself, as I am allergic to debt, I would not borrow the money. 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. . Couldnt agree more with renting- Am I on the right path?? Any thoughts? The views and opinions of guests on this program are not necessarily those of Morningstar, Inc. and its affiliates. The selection seems limited to me, but maybe its sufficient. I have already maxed out my 2022 IRA contributions and have been investing my additional income with my brokerage account. That's what allows you to benefit from the volatility of the market. 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. Its not the assets themselves that is the issue, its how they are held. 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? And .. as you said in your book, if you suddenly sell 5000 copies to Vanguard, I will expect my 15% cut. Where is the contact info on your site? Is this Jim and Fritz, the comedy team I met in Taos, NM? When I compare the two buckets of money both are invested the same (VTSAX) and neither have an RMD. You should expand the book and contract it. Can you sum up your thesis on that? No real strategic reason. I have read articles and most say to just use the regular funds (one reason is the intrinsic value of stocks). I understand that you will be able to make profit out of dividends (for stocks) and interest (for bonds), and the gain of the stocks. ! Very humorous. Id be grateful for your thoughts on two questions which I cannot find answers for (perhaps too basic for most readers). And finally, I decided I better write it down against the day that she would be ready to receive it if I wasn't around. But there's no reason for people to do that. I would be honored to receive a reply. So, for instance, you can type into the internet, and I've seen these articles on a regular basis, of how much house does $1 million buy in various parts of the United States? I think the core ones, and I talked about this on the blog and in the book, are spend less than you earn, avoid debt, and invest the difference. But anyway, every market crash has something different and unique that triggers it. Once I do that can I then invest the total in VTSAX? What a great site. I want to grow the pools, then maximize them for tax-efficiency, charitable giving, and to benefit my heirs. Unlike the example above, I the owner cannot choose to hold the assets no matter what the market is doing. I am a senior and about to start my working career next year. ) for advertising purposes. Opinions expressed are as of the date of recording. 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 Any advice is welcomed. Justin. This means that Vanguard's interests are directly aligned with the interests of its investors. Thats a pretty cool site youve got yourself. Thanks for writing a book about finances that is down to earth!! Hey, gimme a break. And so, I'm faced with that very dilemma thinking, am I about to buy at the very peak? I just finished your book. by JL Collins, jlcollinsnh.com, Dec. 7, 2012. So, youre right, were it me, Id just put it in VTSAX and call it a day. http://www.marketwatch.com/story/why-way-fewer-actively-managed-funds-beat-the-sp-than-we-thought-2017-04-24. I was buying what was most important to me. My internet comments tend to be longer than I plan, so Ill put my most important piece first (sounds like I need to work on my writing, ha! God Bless. Thanks from here in New Zealand. The minimum for VTSAX is now $3,000, so Id buy that directly from Vanguard. Sharing your content in an educational manner could provide a lot of value. 401k) 74% built wealth outside of a company . Just called Vanguard Australia and they dont have it here, so I was wondering if you could guide me on this. The idea that the U.S will default on its debt. Thanks for writing. 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 . We are a literary agency in Japan and have got a Japanese publisher interested in your book, THE SIMPLE PATH TO WEALTH(1st edition). Individuals should seriously consider if an investment is suitable for them by referencing their own financial position, investment objectives and risk profile before making any investment decision.). This blog is right up my alley. 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