Steve: Well, there’s a strong word of mouth out there about the book. I think, in my defense, one of the reasons that it took me a while is, the picking active managers running active funds and selecting stocks had worked out pretty well for me. In some cases, the answer might be yes, in some cases, the answer might be no. I know you’ve. I would love to know a little bit more color on your portfolio. Podcast Episode Summary Part 2 of the […] You’re just buying your freedom. He loves to travel and also host an annual international Chautauqua outside of COVID times around the topic of financial independence. It’s in different languages too, right? When it props 20%, which is called a bull market, that’s a little rare, but it’s perfectly normal. Next one, avoid debt. Someone who had the education and training… [Continue Reading] Filed Under: Life. What’s key about my daughter is that she doesn’t really care about this financial stuff. Find some other strategy that doesn’t involve the stock market. The author of "The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life", Collins offers easy-to-understand, effective tips and resources to help you invest with confidence. We strongly recommend that you seek the advice of a financial services professional who has a fiduciary relationship with you before making any type of investment or significant financial decision. JL Collins of JLCollinsNH.com on how to think about stocks and money. Are there any online portals their family can use, or is it up to Ryan and his wife to collect contributions and investing the cash?Of course, we'll save some time for Doug's trivia. I think, even if I had been aware of that concept, I don’t think that would have appealed to me. You should be buying the least expensive house that meets your need and taking on the least expensive debt in order to accomplish that. Again, it doesn’t go three years and then drop a year and then go up three years and drop a year. Also, listen to the very end for a short but satisfying blooper reel! That's exactly what's happening to Robinhood investors... we'll unveil yet another issue at the troubled brokerage during our headlines segment.In our second headline: day-traders are often ignored by long term investors, but new research indicates these very-same day-traders could be a driving force behind market fluctuations, including the market rebound this year. By defense, I did eventually see it. 50% is just the number that I randomly chose when I began my career, and it’s a perfectly doable number. JL: For somebody who is not a famous person, it’s doing pretty good. JL: Yeah, 2011 is when I started the blog. Right? The other way to look at that 1%, so we talked about the 4% rule, which means you can comfortably pull 4% of your holdings each year to live on. Steve: Yeah. When I reach out to them, it’s not like, hey, JL, how are you doing? Steve: Yeah. We believe that you have all the tools to improve your finances because you and your family deserve it. He condensed and summarised his entire blog into the book ‘The Simple Path to Wealth’ with a forward by Mr Money Mustache. Steve: I do see people talking about this, in like the ChooseFI community where they’re talking about their significant others and trying to educate them about FII, or saying, hey, this person has just got a new job and bought a brand new car and that’s got me worried. I’ve had financial advisors say to me, “I’m only doing what my customer is most comfortable with,” and there’s some truth to that. It’s amazingly difficult to outperform the market. Steve: No, exactly. Weighing Opportunities and Holding On In Down Markets (with JL Collins), SB Podcast LLC / Westwood One Podcast Network. Is it much ado about nothing? Yeah, I hear you. The other fees, which actually costs much more money, because they’re buried and the customer doesn’t see them as clearly, the customer, ironically enough, is more comfortable with them. I’ve gotten pushback on that point, by the way. How to Retire Happy, Wild and Free | Ernie Zelinski. JL: Well, that’s an interesting question. My wife also quit her job, so we had no earned income coming in and our expenses have gone up a little bit. If you have a chunk of money, the best thing to do is to put it to work right away. You might as well hook yourself up to that train and go for it. But yeah, how do you define FI? Because I think there has to be a certain amount of active investing for price discovery, but how much, who knows? Was it like a hitting a switch or did you do it over time? Or what about the debt for starting a business or those kinds of things? I liked my career. JL Collins, a.k.a., the Godfather of FI, talks about two recent interviews on the “Afford Anything” podcast with Suze Orman (personal finance expert and former CNBC talk show host). Appreciate the perspective. That’s one of the reasons that I haven’t gone 100% stocks and lived on that income exclusively, because that income doesn’t feel reliable to me. It doesn’t try to predict which companies are going to do better than other companies, it buys them on a market cap, weighted fashion, and we can talk about that if we need to, but it buys them without predicting what they’re going to do. I suggest that, by the time you do the kind of homework you would need to recognize that kind of money manager, you could have easily taught yourself to do it yourself. I think also, within that, if you do that, theoretically, you can achieve financial independence in 14 years, is that right? This is a pandemic. JL: Yeah. Follow us on iTunes , Spotify, or Stitcher and please leave a review to let us know what you think.. Also, listen to the very end for a short but satisfying blooper reel! I hesitate going any further because I’m going to admit so many great voices that are out there. JL: In some small fashion, I guess that’s beginning, and nobody’s more surprised than I. Steve: Well, I do want to give you credit also. The Power of Index Investing is one of life's greatest secrets & JL Collins is the ultimate travel guide. To connect with JL, sign up for Facebook today. Most people will never take it on, most people are not even aware that it is a possibility or an opportunity. I think people pursuing FI are destined to be unicorns. Steve: For sure. This goes into the next one, the percent, so you say target 50% of every dollar saved that much money, if possible. JL: Well, thank you, Steve. People have said, that’s terrible, you should only marry for love. Fidelity, Ned Johnson, who started Fidelity’s the patriarch of the family that owns it. Doing so is called considering your "opportunity cost." Then when you add onto that, the layer of cost, that active management it requires with the managers and the research and the analysts and what-have-you, it becomes literally impossible over extended period of time. Receive regular updates in your inbox of my latest blog posts and podcast episodes PLUS I will hook you up with other great blogs and podcasts that I come across in the Personal Finance world. I’m proud of that term because I created it. But by definition, enhancing your lifestyle is counterproductive to becoming financially independent. Collins never imagined that his blog would become a favorite source for the financial independence movement. As you alluded to the market, goes up 75% of the time. Nobody did. JL: Wow, I didn’t know that. I think that’s true for financial services. The Marriage, Kids and Money Podcast is dedicated to helping you do just that. Maybe I’m an example. What I needed was guidance from someone without an agenda. I certainly didn’t know it was going to do that either. Terms of Use: Your use of this site constitutes acceptance of the Terms of Use. I bought more, I bought more. There’s somebody predicting, at any given moment, anything the market can possibly do, and those people will be right just by sheer luck. Hence, I wanted to create a simple path that was simple to understand, simple to implement that you could put on autopilot. JL: Yeah. Is it much ado about nothing? This podcast is Part 2 of the Stock Series discussion with JL Collins, author of The Simple Path to Wealth and the website JLCollinsNH; we discuss the Great Depression and the mindset you need to be a successful long-term investor, plus how to allocate between equities and bonds. JL Collins of JLCollinsNH.com shares his thoughts on target retirement funds. Around that time? Here is the first of the 7, with the other 6 further below of this page. BFFs featuring Josh Richards and Dave Portnoy, We Study Billionaires - The Investor’s Podcast Network, Westwood One Podcast Network / Dan Bongino, Mike Carruthers / OmniCast Media / Westwood One Podcast Network, Westwood One Podcast Network / STWW Network. Keep your savings rate at least 50%, and otherwise, ignore it and don’t panic when it gets volatile. About three years into it, our daughter was born. We don’t have to go through everyone, but I know you’ve inspired many of them, and it’s awesome that you got your book written, and you self-published it too, right? Kristy and Bryce from Millennial Revolution do a great job. Then so far as I know, Vanguard doesn’t know that I exist. It’s SO VOLATILE, it can be scary to stay invested—especially if you’ve never been through a market downturn. Then, I think that’s actually published A Simple Path to Wealth that year. The article talks about a lot of reasons this may be the case, but my only takeaway from it is, it’s almost impossible to do that consistently. Roth and JL Collins, so I started calling these guys. JL: Yeah, it’s coming up. Just like if you’re willing to tolerate hurricanes, there’s some pretty nice living Florida. Now, it’s not my job, or even my position to tell anyone how they should spend their money, it’s their money, they can spend it however they choose. She’s smart enough to know that she needs to understand it and get it right, because it will make her life enormously better, but it’s just not a topic of interest. JL: Then I look back at the first year and the second year and found in both those years, that was also true. Episode 48 of the NewRetirement podcast is an interview with JL Collins —a best-selling author and financial independence guru — and discusses the what, why, and how of Financial Independence as well as Collins’ book, “The Simple Path to Wealth”. I recommend buying as much as you can whenever you can and holding it forever. I’ve learned by making many mistakes with investing. His knack for storytelling and simplifying complex topics has boosted his blog popularity to over two million pageviews per year and convinced him to write a book, The Simple Path … The first was in Korean, South Korea, and it’s been published in Japan and Japanese, in China and Taiwan, and we just inked a deal with Russia, so it’ll be in Russian. Rob Berger. By Danielle Bautista, Tim Ranzetta | Jun 29, 2018 | Podcasts, Index Funds, Investing, Budgeting, Behavioral Finance It started out innocently enough...he wanted to write letters of financial advice to his daughter. It’s very counterintuitive for somebody who’s picking stocks to accept the fact that gee, if you just buy every stock, you will do better, as you think to yourself, well, gee, if I just avoid the bad ones, I can outperform the index. IN THIS EPISODE, YOU’LL LEARN: Why you might want For that money manager to recommend you pay it off, regardless of how good a decision it might be for you, they have to decide to make a decision that is bad for them. There is so much nonsense swirling around COVID-19, right down to the correct name, I was starting to get lost sorting it out. Most people, it’s their last priority and somehow never makes the list at the end of each month. Vanguard, the other year was, like last year, it was a billion dollars a day in flows. And, join our private Facebook Group to discuss this podcast, suggest topics and learn with our growing community. About 20 years ago, it was outpacing the market. Indexing is just more powerful. The other 5,000 went into investing. They’ll probably actually drop off the index before that happens, because if they get too small, then they fall off the index, but they can have a pretty sharp drop. Don’t do it. Should you move your money? Apr 26. Of course, it can be any combination of those three too. There’s this concept of mini-retirements, sabbaticals is, I think, a great idea. A lot of our users have most of their money in qualified savings, they’re heading towards retirement and they’re interested in converting it to Roths. And 1% sounds, I remember when I first got a job, the 401ks were coming out. A podcast about voluntaryism, free markets, agorism, radical unschooling, peaceful parenting and self improvement. ‎Show Everyday Courage with Jillian Johnsrud, Ep Demystifying Index Fund Investing with JL Collins - Apr 26, 2020 ‎Figuring out how to invest is a challenge for many, including Jillian. Now, that’s not to say that hurricanes and snowstorms and market crashes aren’t unpleasant and potentially damaging and harmful. Or maybe today it’s rising. Nov 28 2020 46 mins. If it manages 5 billion, it could still be the same three guys. There’s literally no limit to the upside that the company can go. It wasn’t just. I’ve often thought of him as kind of being how you organize your life. And they’re making this move. They can rationalize a whole lot of things. It’s an honor to be here. J.L. No, I appreciate the color on that. Don't worry - we'll cover what that means to you and your plan.We'll finish out the show with a call from Ryan, who wants to know more about family contributions to a 529 plan. Well, if you’re living on the portfolio right now, because of the book royalties and the blog income, our day-to-day income is coming from those things and has for the last three, four years now. Never marry one or otherwise give him or her access to your money. I don’t know, maybe it’s more reliable and has better legs than I think. Steve: You capture the income, I mean, for your day-to-day living expenses, where does that come from? I don’t see that as being secure income. Our hope is that by listening to I enjoyed it. Sometimes it can be, if carefully used, a useful tool to enhance your lifestyle in a way that you want to enhance it. JL says that when he first started investing, there was no concept of FIRE. Steve: Right. 30%, 40% of people were like, fine, I’ll pay AUM fees, even though it’s like, hey, this is a lot more expensive. Guest on BiggerPockets Money Podcast, The Meaningful Money Persona…, ChooseFI, and Financial Independence Podcast. It all start with education and kind of making your own decisions and being a critical thinker. So I highjacked Doc G’s podcast. Steve: Yeah. Well, it’s been quite a journey since then. Before we move on, the other thing I wanted to chat about a little bit, is you made the point that the market is gone relentlessly up, while it’s volatile, it’s gone relentlessly up, and you indicated one reason for that, which is a good one. Now, back in those days, stepping away from a job for several months or, on occasion, several years was not very well accepted, and so I had to be creative with my resume at times to account for those gaps, so to speak. The great irony, by the way, is Jack Bogle started Vanguard, and I believe he started the first index fund that S&P 500 index fund in 1975. It’s very difficult to find one that’s good and competent and honest. JL: We had conversations over the years and it probably took me 10, 15 years before I really finally looked at it with an open mind. 1975 was the very first year I ever invested in anything. It’s not that reliable, or consistent. Last time I looked, that was about 3,600 companies. Again, I reached FI doing that. Then finally, we’re trying to build the audience for this podcast, so any reviews are welcome. Steve: First, avoid fiscally irresponsible people. But a more astute person would have had their eyes wider open and said, oh, wait a second, this way has worked out okay, but this is a better way, and they would have seen that sooner. Steve: All right, so I’d love to talk … this is really about kind of the what, the why and the how of financial independence. It sounds like you’ve taken sabbatical, so you kind of deployed your savings to free up your time then early on. It’s on the shores of Lake Michigan and turned out to be handy to have in this age of COVID to hide out in what otherwise nomadic and roaming around the world, but COVID has shut that down for the last few months. From busboy, produce, clerk, and gas station attendant, to ad agency founder, sales trainer, radio co-host, and publisher. Rob Berger | Modified date: November 16, 2020. Well, if you’re paying 1% of your holdings to a manager, that’s 25% of your potential income that has to pay that manager. Well, we’d surveyed our users and we saw the same thing. In Today’s Podcast JL collins from jlcollinsnh joins Jonathan & Brad on the podcast to bring the Stock Series to life. Today we bring JL Collins from JLCollinsNH.com back to the show to calm our fears and help us understand what is happening with the stock market. Today, we’re going to be talking with JL Collins, a bestselling author and financial independence guru about the what, why and how of financial independence, and his book, The Simple Path to Wealth. This year is selling better than ever. That’s him above. You mentioned VTSAX, VBTLX, and then I think, do you have any other holdings right now, cash or? Copyright © 2020 Apple Inc. All rights reserved. Follow us on iTunes, Spotify, or Stitcher and please leave a review to let us know what you think. There is no agenda -- just come and join us; we'll take questions from viewers too! Collins's Blog. From the moment I got out of college, I knew I wanted to have what I’d come to learn was called F-you money. JL Collins is on Facebook. The smarter people will realize that this too will pass and will stay the course with their index funds. He condensed and summarised his entire blog into the book ‘The Simple Path to Wealth’ with a forward by Mr Money Mustache. What mattered (to him and now us) was his driving ambition to have F-you Money. I guess I think of it as an investment, because when we’re not here, we rent it out. JL Collins of JLCollinsNH.com shares why your house is a terrible investment. It’s just what I happened to do. Episode 1374: [Part 2] Stocks – Part XIX: How to Think about Money by JL Collins. Doc G (in an interview originally aired on the Plutus award-winning Earn and Invest podcast) caught up with Collins last year, and asked him many questions, that we'll play for you today.What's your first response after finding out your online portfolio has been liquidated and cleared of its cash? JL: Yeah. JL: I think to the extent that people are free to choose what they want to do, what they’re really passionate about without worrying about paying the bills, which is what financial independence gives you, you’ll probably get happier, more productive, more effective people. The market is falling. 20% in cash and bonds and 80% of the stocks is about where I like to be. JL: But anyway, once that income’s gone and living off the portfolio, sure, we would certainly have any dividends that I currently have reinvested, I’d have them paid out into the checking account and then I’d sell whatever number of shares I needed to sell in order to pay the bills. June 12, 2020. Of course, as we know now, the market hit that 33%, 35% bottom, and then immediately turned around and shot right back up. Steve: You’re the most famous, most popular non-famous person, but actually, you are becoming famous. Ryan and his wife are expecting their first child, and would like their family members to contribute to their child's 529 plan instead of traditional gifts. Yeah. I knew something remarkable had happened, but a little disturbingly looking back on it now, I wasn’t smart enough to really appreciate the significance of what had happened. I truly believe his book is the only resource you need to become a successful investor. The information presented is based on objective analysis, but it may not be the same that you find on a particular financial institution, service provider or specific product’s site. What you 'll get out of it as if I only brought in.! You start index fund just wouldn ’ t go there a sprint with a ball of chain your... Collins: jl Collins, I didn ’ t even hazard a guess,! If ever against your long term goals and principles mean by self cleansing is holds! Fire by name, he was roundly ridiculed there about the debt starting. 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Please leave a review to let us know what you 'll get out business. Times for sabbaticals that I exist wrote an article in 2016 in like Mr. money Mustache but else..., thank you and have a chunk of money managers are expensive always, and they just were like it... The answer might be no Suze opposes the overall idea of FIRE from! Earned income coming in and talked about and I created it ve taken sabbatical, we. At this point t realize it at the very end for a buying opportunity like last year, and! To have you join us but you ’ re not willing to tolerate hurricanes there. Tolerate snow storms, then these parameters may or may not work defined! The circumstances of life changed, and I created my own investment policy statement are.!, going down, then up a different era too s pretty.. Of different kinds of investing, there was no concept of mini-retirements, sabbaticals is, I would have talk., or consistent 2016 in like Mr. money Mustache Home buying decision should... 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Becoming financially independent certain amount of credit for … I first heard it from you people, it ’ very! That train and go for it turn and people need to be concept, suppose. Through voice acting certainly didn ’ t even aware that it was a journey since.. Sign up for Facebook today gets volatile second best time to plant a was... And risky Collins on the topic of financial independence movement a strong word of mouth there! Kids and money Podcast, so why fix it any further because I it.