Should I make contributions to my IRA at all? Hello again Jim! 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 am also sure, that it is wise, not to be all to dependent on the shiny illusion, that consumption will make you happy. He wasn't working at the time and told her that they were doing just fine as they had money that was working for them instead. Just inked a contract for my next book, and I want you to be a part of it! What are your recommendations on a particular ETF which only tracks the S&P 500 instead of the whole market (VFV)? Good for Jims blogger fans to see how the Red Road merges with business, life and money. I guess its better than stock picking, but does this enough of a diversification? But if it goes that far, that you cannot afford the goods which constitute a modest normal life, there might be a problem anyway. My time horizon is about 8 10 years (Im 62). While Ive never written to you before, I am moved to do so this time. So, there was a lot of pushback against index funds from the very beginning. You would possibly be interested in a new case study? I appreciate the invitation. Ill answer them as best I can and maybe it will turn into a Case Study post! A home is where you live.. Im 41, my fiance is 35, and we just bought a house. Or even Vanguard? What this audiobook provides her, and others who are less than finance-obsessed, is a simple . Thank you for you time. And I think with the idea that there is a sense in some quarters that this whole pursuing financial independence somehow isn't available to African Americans and their book talks about why it is and how it is, and it does a great job. But not always. My observation is that with other index fun providers, even Vanguard, there is a premium charged for the added convenience of the L-funds. I just purchased your book and read it all in one sitting it was a fascinating read that pulled together a lot of great thinking for me, and helped me to clarify my own path to FI. Please email me so I can send you a document I have written for your kind review. , Saw you on an interview on youtube speaking about House owning vs renting The couple. Im heading over to amazon today to pick up a copy of your book to review for my military compatriots. Any idea why you chose to list Kashmir separately? People rarely buy a house without wanting to upgrade it. "But Dad," she once said, "I know money is important. I have a question I just retired from the postal service I have a 401 k home that i am paying a mortgage and rental property. Unfortunately, if you dont have a lot of time and money it becomes dicey and stressful. You might consider posting your comment here: https://jlcollinsnh.com/2015/06/02/stocks-part-viii-the-401k-403b-tsp-ira-roth-buckets/, Mr. Collins, This makes me wonder What do you recommend for health insurance once my girlfriend and I hit FI? If you're going to panic and sell, you don't want to follow my advice, you don't want to be in the market at all. If you are we would gladly send you the more specific information by January 24, 2019. I just published a post with my take on ethical investing, along with some other issues. We have to sit back and say, OK we have to make a choice. https://jlcollinsnh.com/2014/01/27/stocks-part-xxi-investing-with-vanguard-for-europeans/. As I point out in this post: https://jlcollinsnh.com/2016/08/16/what-the-naysayers-are-missing/ many react with hostility instead of interest. 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. But still . Collins covers a lot of ground in the book, from explaining how the stock market works (in everyday language that you can understand); sharing his own investment strategy; encouraging everyone to. Stocks -- Part XIV: Deflation, the ugly escort of Depressions. At the end of the day, this may just be a matter of paying the taxes now rather than later, but I would appreciate any input or ideas. Because if I'm wrong, I don't want it to move the needle too much. For my children ages 26-35. Ironically Ive read your series before Ive read one page of Your money ratios. 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. Therefore, we believe personal experience can be very beneficial in helping individuals from the Finllect Community whether it is through a podcast, video, blog, and so on! The course takes kids through budgeting, saving, credit and investing. Exciting! I am grateful for your teaching and writing. I look forward to hearing back from you via email. and the taxman cometh. Feel free to send more info. The Dow holds about 30 stocks and you can Google to see just which ones and how they fit your goals. My whole family will sure benefit from it. Thanks, too, for passing the book and message on to your friend. I see them as what has worked for me and what has kicked me in the ass. However the downside is what we are seeing now. Investing has always been intimidating to me but after reading your book I feel like I can finally make some moves. very cool that you took a year off, kinda like a retirement preview. Man, I really wish more people understood that concept in general (on both sides). VTSAX since 2000 seems to have averaged around 7.8% (maybe I got this wrong). Provide specific products and services to you, such as portfolio management or data aggregation. That is when I found your book I finished it 2 hours ago. Youre book was exactly what I needed to hear to re-spark my motivation towards FI. Now you are asking me to tell you what to do. I was buying what was most important to me. 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. I learned a ton, but most importantly I learned I was unhappy in that environment. I look forward to hearing from you. I am not seeing the amount of shares that I own growing. 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.). 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. All those years that post has been up and only now someone noticed? And the emotional/financial forces drive you to buying too much house. Spend less than you earn invest the surplus avoid debt. Optimal Finance Daily is the podcast where youd be narrated the most frequently. But that could come when you're 30, if you've achieved financial independence, as many people do, and you say, OK, I'm going to not work anymore for a while. Then you probably want to add some bonds to take the place of the cash flow that you used to have to smooth the ride. And I'm not sure that's a stock that I would have been attracted to, candidly, at the time. They are looking out for their best interest and not the client. Thanks from here in New Zealand. I stumbled onto your blog this morning and have been reading since. Hey JL. ; ) a great post BTW. Such opinions are subject to change. I too have a blog where I help urban millennials make wiser money choices and for the month of November I want to focus on investing and the simple path to wealth. I think what youre doing can be very helpful to many of our users who are 50+. There's a certain percentage, and I think it's like 20% or 25% that will outperform it on any given year. Hi Jim, Christine Benz does not own (actual or beneficial) shares in any of the securities mentioned above. Ive have listened to your book twice (We road trip a lot) and have taken extensive notes. Things have changed with the SECURE Act (which was not in place at publishing), requiring the ROTH to be consumed/withdrawn in full by an heir (not all situations apply) over 10 years. I had no frame of reference to that point. Money, JD Roth, Philip Taylor, and more. It's a pleasure to be here. The Psychology of Money, by Morgan Housel, Why Does the Stock Market Go Up? Thank you. I bought 4 copies for Christmas presents this year for close friends and family but now I want to get it for everyone so they too can follow the simple path! Rama. Thanks for your interest. 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. Benz: George Castady is our engineer for the podcast and Kari Greczek produces the show notes each week. He will most likely retire in 6ish years. Loved your book! Kate. For the FIRE movement, there's a lot of pushback, and people say, That's only for people making a big salary and were born to privilege. And when you read Kristy's story of growing up in China under the communists, and she's now a millionaire, it's not just for people born of privilege. Should our investments be 50% total index equities and 50% index total bond market ? Im 30 and didnt get my first real-money job until 2013. thx. While I know nothing about investing options in other countries, the principles are the same: Keep it simple, broad based and low cost. I managed to choke out a wry laugh when he said Americans arent good at doing what theyre told. There is no VTSAX available. I see your email is unlisted but you sometimes respond to comments here. I want your book, I hate to read books. 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: All that said, you correctly emphasize that housing is consumption; just like food or clothing (more lifestyle choices). Thanks! I hope they can learn just by reading. The main character, Erik, is a fan. I know youre probably super busy and probably get asked to do interviews all the time. Any interest? Gimme a break. Thanks Jim Your ad carreer must have given you even more sins to atone for than mine. And when he died--and he died at a fairly young age of emphysema, he was cigarette smoker--the only asset he left behind was the paid-off house. Im Julie and I lead marketing at Passiv. ..glad you made your way here and very glad somebody is teaching HS kids personal finance! Another note we have paid our house and live very frugally. What's your thought on that strategy? Hi JL, Part XVII-B: ETF vs. Mutual Fund -- What's the difference? Im 56 anduntil I read your bookthought that I would never be able to retire. And, of course, the house you get for that set price of money is dramatically different depending on where it's located. All the best, MS. First I want to say thank you for all of the knowledge you share in your book. But, as Andy Rooney once said, Never expect too much from your company. We both hold 500 index, extended market, international and bond index in 401k and the expense ratio is .05% altogether. During the 1930s, in the depression, the government made a concerted effort to help people get into homes, because they were concerned about political unrest. To me this looks like both asset classes lost large, and I fail to see the protection that fixed assets are meant to provide. We lost a lot. . I work in the investment industry and love the investing world, too. VTWSX is the world stock market index fund. TOGETHER WITH LUMP SUM (MAXIMUM) $ 200,000.00 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. Regards, Im sure you get an insane number of requests for interviews, but by any chance would you allow me to email you the details? So, you will wind up with a less-good result at the end of the day. Speaking of the enjoyment of hardship, if you put your tale of woe to music it would make a great country/western song, .you know the ones your ex-beautiful blond girlfriend probably liked. In fact, I've come to say these days that I've spent every dime that has ever come into my possession, and I spend it almost immediately. You didnt fall for anything. But what was it about indexing and minimalism specifically that appealed to you at that time? This is an interesting question. Hi Jim, I imagine you would say that we should stay tough and that the core principles hold truebut it really seems that, beginning in 2020, we may have crossed a rubicon: From the the phenomenon of meme stocks and market capitalization of small companies with nothing more than an idea far exceeding the market caps of established fortune 500 companies, to the current political climate and health of our democracy. Thanks in advance for any insights. Reading your book is an eye-opener! Thanks JLC! So, we have begun in our travels thinking, well, what about this place, what about this place, and should we buy here, should we buy there? I could send it via PM. Wed like to share more about how we work and what drives our day-to-day business. Here I allocated 90% in VTSAX and 10% in VBTLX. Dear Mr. Collins, I was hoping you could give me some guidance on how I should split the money between VTWSX, VTI, VXUS and VTETF; the funds that are available through ETRADE. 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. I had mixed up funds focusing on large caps (40%), mid caps (20%), small caps (20%), international equity (10%), bonds (10%) and with the use of a retirement fund in the mix as well all with varying expense ratios (0.015%-0.63%). This may be too specific a question among the myriad that must reach you, but if you have an assessment of this new offer by Vanguard, Im sure your German readers would appreciate it! So, I am sort of broken myself of the addiction. But I stepped away from it because it just was too much like work and it was not the kind of work that I personally enjoyed. 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/). Unfortunately, we didnt have the benefit of your guidance before starting to save. In addition, if I do decide to take the lump sum of $200,000 it will be taxed. 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. I figured if I could do that twice a week,or hell,even 5 times a month,I could make it. I was given a copy of your book as a gift a few months ago. Im from The PaiSha Agency, based in Taiwan. But I think for most people, it's going to end in tears, or it probably already has ended in tears. As an aside, this is the first blog I came across when I started becoming financially conscious. Can you talk about that? This feels scary, because it is bound to go down, and it leaves me wondering whether I should sell now. He blogs about financial and other matters at JLCollinsnh.com. and going with your advice, paying off the highest interest rate loans first. . Though, i have not read your book, i prefer audiobook. Great to hear it has reinforced your thinking. So, they're kind of high-fliers. 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%. Im just looking to clarify one thing regard F-U money. Description "In the dark, bewildering, trap-infested jungle of misinformation and opaque riddles that is the world of investment, JL Collins is the fatherly wizard on the side of the path, offering a simple map, warm words of encouragement and the tools to forge your way through with confidence. I was notified of MMM when I was 18 (by an amazing friend of mine) and I sigh still thinking of where Id be now (28 years old) if I fully applied the three golden rules of: Spendings < Earnings (50% or more), investing surplus and avoiding DEBT. No time frame, some guests have a list created in a few days, others take a few weeks. My main question is i will be a non-resident alien (NRA) at the time i will be withdrawing it. I actually read the book, The Simple Path To Wealth, in April 2020. All I need is 2 (or more) book recommendations that you feel really inspired you, made you think, or just really spoke to you. Read this book if you want to get your personal finances in order. Thank you. s.e., lov 4 ing wife of Sell Collins. Thanks. This is a great discipline, but investing needs to happen to secure your financial future. I am halfway through your book. So the index funds began to outperform almost immediately. Bills book was a lovely and simple read and well worth it. Glad Scott and Taylor turned you on to my book and that it has been a help. Or, as I had to do, are they going to have to panic and sell themselves and then sit on the sidelines licking their wounds, having locked in their losses, while the market, as it always does, turns around and goes back up? Good luck, and if you figure it out please report back. I do the same with books on occasion. His first book, The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life was published in 2016 and has been an international best-seller. Once the debt is gone use the discipline to channel that money into your investments and watch your wealth grow just as you watched your debt fade. In fact, if you are willing, Id love to see you add your comment above to that post and the discussion there. That is really the only way active management can outperform the index over time. All best wishes. haha. And you say, I don't want to take the risk of putting this $120,000 in all at once because tomorrow might be the day the market crashes 40%. But for those people who enjoy real estate, and it's the kind of work they like, it's great. Just getting into investing, though. I guess there are many folks who are happy to accept this, because they enjoy the alternative luxury of free time. I Spoke to you on Twitter about selling your books in Malaysia. By JL Collins. Deals are signed to publish it in China, Taiwan, Vietnam, Thailand, Russia, Poland, Spain, Brazil and in Arabic. What were your thoughts when you were watching that unfold? And, if youll be a FinCon, please introduce yourself. So, anyway, there are always times when houses can be made to look like the best thing that you've ever done. The one bright spot in all of this is that Ive collected 20 years of the full amount of employer matching funds. 40 years old. Had the market turned around and plunged again, then I would have adjusted that withdrawal rate in a heartbeat. There are going to be a few people who are going to make a lot of money, which is always the case with speculation. Dan Otter and Scott Dauenhauer: Why Retirement Savings Options for Educators Are So Bad, Stocks--Part XV: Target Retirement Funds, the Simplest Path to Wealth of All. We built wealth using a similar strategy as JL Collins-using index funds to get in the stock market in diversified ways. but would still like your feedback. Im extremely impressed with your site and your willingness to correspondents with people writing its very inspiring to read about life. One is PPLI (Private Placement Life Insurance). Ive been mostly learning the hard way over the past twenty years. Good afternoon, I bought your book, The Simple Path To Wealth and I took your advice and invested $25,000 in the VTSAX through TDAmeritrade. As to whether people can learn--one of the things that I wrestle with in my own advice. Dividends reinvested, buy never sell! But I frequently think, wow, if I had known that and embraced it from the get-go, how much easier my path would have been and how much further along I would have been on it at every stage. Heres a podcast episode to get you started: Also, if you think it deserves it, please put a 5-star review of the book on Amazon. A Fortunate Son, to be sure, but hes not like most of us in America. I would love to write a guest post for your site, because I am currently trying to build my personal profile, and I would love to write a few articles related to personal finance and loans. I well remember the Janus funds and was invested in a couple back in the days when I was investing in individual stocks and actively managed funds. Im going to guess that youll say move it to VTSAX and simplify things in lieu of the small fee savings ($254/$1M). Would you entertain a bulk discount? A tremendous blog mate. I am curious to hear your thoughts. 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