My office is next to a big name financial advisor, and I get a little sense of pride every time I walk by and DONT go in. I want to prove its possible! If you have a comment or a guest idea, please email us at TheLongView@Morningstar.com. David B. I have a financial question related to a health issue.where would it make sense to post it? A big Hi! This is the link I was look at https://investor.vanguard.com/mutual-funds/profile/VTSAX. I'd say our biggest battle. At the end of the journey, the promise of freedom is both invigorating and terrifying. If you have already addressed this elsewhere then my apologies, but I am really curious about your thoughts on this. I think I have the explanation! On your Jan. 30, 2014 post, there is a place in Spain with bullfighting ring. its a difference of $16,639.08 per year ( $1,386.59 per month). First time Ive read a book that fast in 20 years probably. But it is only 6% of your portfolio, so no harm in holding it if you like. But do you think that with today's rapidly accelerating home prices that new buyers are apt to be especially unlucky with their timing? Am I too late in the game to do this? Be sure to read the important Disclaimersregarding the content and advertising here. Thank you for your time and consideration. You address the notion of sticking with it through the bad times a lot. But still . 3) We dont have total bond index funds here. We want to talk about your path to finding a simple path to wealth, which is the title of your book. This feels scary, because it is bound to go down, and it leaves me wondering whether I should sell now. Then Your Money Or your Life. They are only making Collins index fund greater so that he will never have to work. 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. Stocks -- Part VIII: The 401K, 403b, TSP, IRA & Roth Buckets. P.S. But, as I say in that post, Im not strongly opposed to it either. JL Collins joins Carl and Doug to talk about a terrible investment experience with Real Estate. i have tried to find answers, if i will be hit with a 30% tax (not withholding) when i withdraw money from this ROTH IRA. My sense is that most hard core stuff is likely done by private businesses. Though it is a younger ETF, it seems VOO has slightly outperformed VTI historically. I have been under so much stress on what funds to invest.now i think i will settle with these. How we use your information depends on the product and service that you use and your relationship with us. Anyway, I just wanted to thank you for sharing your thoughts. Ill be listening for your song on the radio, (in my regular car). During the Wealth Accumulation Phase I always reinvested dividends. I have really enjoyed reading through your website. 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. If anybody does, I'd love them to share it with me. Have a wonderful nice and safe Trip!!!! Find some other cute reference that is positive. Nor do I have any idea (other than Google) as to where you might turn. Could you please ask your agent to contact me? Ill send you a PM. Keep it up! Your email address will not be published. Freedom offered, but declined. Do you have a discount for bulk purchases of books? If so, chose carefully and buy only term-life and then only for as long as you need it. However, if you read thru this: https://jlcollinsnh.com/stock-series/ Whatever your schedule will allow. New Years goal is to cook in the van even more and eat out less! Hope your daughters enjoy and benefit from the book. Please reach out if you would be interested. Whereas a broad-based index fund is only deploying your money. The rest is history. In a taxable account when you move from one investment company to another you have to sell what you currrently own and to buy the new investments. I recommend it in this post: https://jlcollinsnh.com/2012/09/26/stocks-part-xi-international-funds-2/. JL, 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. You just need to get a couple of simple things right and let time and your money work for you. 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. Im a content writer and specialize in finance, money managing, debt related topics. I'm sure I'm missing some other great ones, and my apologies to those authors. You have to be willing to accept the fact that at any given moment, the money you have invested in stocks has the potential of dropping dramatically. 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. Therefore: Folks who adjust their spending to inflation see there relative (not absolute) standard of living fall with time. I bought your book and loved it, thank you! Weve started a feature where we host people whove had a significant effect in pushing the FI/ER movement forward for a Q&A session with our subscribers, of which we have ~300,000. I know I had to pay fees. You can't become wealthy if you're carrying debt. A true Financi. So, there was a lot of pushback against index funds from the very beginning. keep it up. I listened to your Talks at Google podcast and Im around 3 quarters through your book at the moment. 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. December 24. There are several posts on other FI blogs dealing with this issue that may help. If you look at the Trinity study, a 4% withdrawal rate adjusted for inflation over 30 years is just one of the many scenarios that the study looked at. Im just looking to clarify one thing regard F-U money. And if somebody sat down and made up a list of all the potential mistakes you could make buying real estate, it's like I went through that list and checked them all off before I signed the papers. , The truth is the vast majority of people who comment here are very civil, so it is easy for me to be civil in return. I really wanted to share this with my friends and family, but to get full impact I want them to have, it has to be in Hebrew. under your original comment here: https://jlcollinsnh.com/2011/06/03/my-short-attention-span/, youre gonna have to start reading this blog a lot closer, my friend. Now you are asking me to tell you what to do. Collins recalls a time when his daughter was eight years old and she asked him if they were poor after watching the news showing people standing in a bread line. *we are paying off our new van as well but we put money down on a private loan, and have been making steep payments which are still a fraction of what rent would cost where we want to live. Thank you for stating this so simply. What are your thoughts on buying a fund that tracks the top 50 stocks in our little market? When I got that job I felt a sense of panic thinking that I had missed out on 4 years of a raging bull market that would never repeat itself. You made me realize the following tenet: our past mistakes matter little compared to the decisions we make right now for our future. My name is Robin Poon and I am editor of a publication called Investors Digest of Canada. Im keeping this roth IRA for my kids (education or whatever they want or myself as well just in case they dont need it at the time), investing horizon of next 15 yr at about 150-200 per month, starting the fun with an initial investment of $10K. As you say in the book, they are expensive! If you think you might like to go, sign up for the mailing list here: I am the author of The Simple Path to Wealth. As an aside, this is the first blog I came across when I started becoming financially conscious. Invest in bonds when older for less risk Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. Please give me 5 mins and let me tell you my story, and where I am in life. 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. Kate. Hi JL, just read and loved your book and stock series. Its expense ratio is 0.15 similar to Target retirement funds. It covers woodworking tools, raw materials, techniques and constructions, veneering and marquetry, use of glass, metal and leather, and much more. Thanks for the kind words and for linking to my Stock Series in that post. I am curious to learn if given these changes, your advice and plan are different than what was written? I don't see real estate as being passive. Hi Jim- I finished your book and recently moved fully into the Vanguard total bond market index along with the Vanguard total stock market index. So, I am sort of broken myself of the addiction. But at the end of the day, you've got your $120,000 deployed. I was buying what was most important to me. And do you have a sense of how much more poorly these socially-conscious ETFs are likely to perform compared to VTSAX and VTIAX? Thank you for sharing, teaching, and inspiring. 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. Changed my accounts to Van Guard and am ready to follow your plan, but have some questions. Hello Jl I put a hold on this until I could review the tax implications. Worse, they have become even more difficult to read over the past few years. "The Trinity Study and Portfolio Success Rates," by Wade Pfau, Forbes, Jan. 16, 2018. Some asides: Some are not applicable to where I am now, I mean location-wise as I am located in Australia (like for example we have Super, not sure but I guess its like a 401k in the US). You're going to furnish it and most people when they buy a house are buying bigger space than what they were renting. No sense in reinvesting only to withdraw. Thank you for distilling your wisdom and sharing with the world. I will be looking forward to your response in this regard. For more: https://jlcollinsnh.com/2015/03/26/stocks-part-xxviii-debt-the-unacceptable-burden/, 2. Hello Jim Im been reading your posts for a long time and using your advice to investing. Tend to disagree about not owning your own home as in Australia we generally have a different mindset but in the end it is just bananas which way you go as the paths are in the same direction. I am as well I am 27 years old so time is on my side. Could you please advise if the Chinese translation rights are handled by you directly and is still available? What are your ideas about this, given the recent changes? Can you sum up your thesis on that? . Only 1 in 20 actively managed funds managed to beat the S&P index! If so, is it a good idea to wait buying stocks till market drops such as these occur? Our Do you have any experience with these? Then, with whatever discount they offer and you accept: Thanks! And if you don't pay any attention, you could wind up 30 years later with a huge pile of money that you could have enjoyed along the way. 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. Only Sundance participant that I know of to dress in a white, buttoned down, dress shirt. Jlcollins: Hi Mr. Collins. Not the case. 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? Please excuse the gaps in my knowledge going forward Im a novice. I was 13. Nice work so far on the blog. My questions are: Collins: I would just clarify, I don't say avoid homeownership. 1. 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