So, investing was an avocation rather than a vocation for me. Please allow me to introduce myself. Can I email you directly? advice I wish I had gotten long ago. Without 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. If it does, that ER is very attractive, so Black Rock could be the better deal in this case. Research indicates, going out 30 years, less than 1% of active fund out perform. When I married my wife 4 years ago, she had an incredible amount of high-interest debt from years of bad money-management and putting degrees on credit cards. That's just gambling. He strongly recommends Vanguard for several reasons. Keep it up! And, of course, the media is going to focus on those and it's going to sound like, Wow, if only I'd gotten into that meme stock, I would have made a lot of money. I mentioned earlier that I'm in Las Vegas at the moment. , Your comment would be a brilliant Amazon review, if you were so inclined . 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. 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. To answer your question, if I were to do it--and again, I haven't researched these--but I am a big fan and very impressed with Elon Musk. Nor do I have any idea (other than Google) as to where you might turn. So, you're never going to want to do any percentage withdrawal and just set it and forget about it--not only because you might run out of money, but even more importantly, and more likely, your money is going to grow far beyond that withdrawal rate. I understand the value of rolling them all into my IRA. I agree with basically everything, and its all great advice. I can send excerpts that contains the character if you so wish. 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. I also request your views on my other articles and participation in my website. My father is still working and probably will not touch this until retirement, he is unsure when he will stop working. If I'd been doing it and getting a negative result that in some fashion might have even been better, because I would have been more willing to look at alternatives and more quick to change. It should be the Chicago Trib Headlines! Since money is the single most powerful tool we have for navigating this complex world we've created, understanding it is critical. And, of course, as you alluded to, housing prices have just exploded on the upside over the last couple of years. But that is only a guess. This has been discussed elsewhere on the blog and I believe I have all the relevant posts updated, but if you spot one Ive missed please let me know. How I failed my daughter and a simple path to wealth by jlcollinsnh 220 Comments Literally since the day she was born people have been complimenting my daughter. Benz: Well, we're really happy to have you here today, too. The key distinction is that one is taxable when withdrawn (the Taxable bucket) as compared to the Roth. I just wanted to send a quick email to follow up with you about my message from last week. I never felt overly confident in my thoughts because there are so many different opinions on the subject of personal finance. Im glad to see it reach and help as many as possible! He said a coworker of his would like a recommendation for some books on personal finance. Blowing my mind. I read it in one sitting. I have forwarded your contact info to my agent. Stocks -- Part VIII-b: Should you avoid your company's 401k? I learned a ton, but most importantly I learned I was unhappy in that environment. 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. And, of course, that was salvation for my mother. industries. Language: English Mitra/PFB. A big Hi! What are a couple of the other key precepts that run through that Simple Path to Wealth? But still . Empty nester; either rent or live in a paid off (15 year mortgage) house from stage 2. I have been excitedly recommending it to friends and family. Ive been reading your site pretty intently but I have a few questions that do not seem to be addressed anywhere and I was hoping I can ask you by email. . Ten days ago, I updated our FIRE spreadsheet and, seeing that we just exceeded our F-you money goal by $1,000, for the first time in my adult life, I felt free. This book grew out of a series of letters to my daughter concerning various things-mostly about money and investing-she was not yet quite ready to hear. Thanks for the kind words and for linking to my Stock Series in that post. ; ) a great post BTW. I promise not to spam you, and I respect your answer whatever you decide. I know, sounds too good to be true, which makes me wonder what the catch is? We represent proprietors worldwide into the Chinese language markets in China and Taiwan as well as some Southeast Asian territories. Rather, he does a good job of making you aware of how much you can lose. 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. Ill keep an eye out for more books in the posts. If this grows like Im hoping, Id love to give one of your books to each teacher who learns to teach my seminar. BRKB is a bit like a mutual fund in that it holds several different companies and Buffett and Munger have done an incredible job. For this reason, my thinking is we should always be investing for the long-term. But I tried too hard. A ROTH IRA is not tax deductible. Are they still available? Not only traveled by elephant, but herded rhinoceros by elephant back in Nepal. However . I have tried to find answers through posting on message boards and reading others threads, She sees how excited I get, and loves that I am really planning for the first time in my life. Looking to minimize taxes and help to grow his money for retirement. Appreciate your thoughts, Hope you are doing well. All best wishes. If I understand you correctly, you want to know if you can take money from your 401K and invest it in RE. The mistake youve made is to first invest without learning the game and second to turn it over to someone to tell you what to do. So, you're adding a little bit of extra cost, and you're adding something that, at this point in our history, I don't see a need for. The stock series kind of grew out of that. Jim, Id like to invite you to a speaking engagement with a personal finance club in the greater DC area in early September. Apple, Amazon, Tesla and, of course, BRKB. Buy this book on Amazon (Highly recommend) 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. Man, I really wish more people understood that concept in general (on both sides). Please give me 5 mins and let me tell you my story, and where I am in life. I tried the retirement thing about 15 years ago,when I was in my late 30s. Scott. Not much more to say on those topics that is not in the book. 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. 3. I was promoted to full-time electrical engineer when I graduated and I worked for about 2 months before I said, NO WAY! Im just sick about this bull market and thinking I made such a stupid error. Since I used to be a Microsoft employee, I still have all my stock with them. What a great site. This is a great discipline, but investing needs to happen to secure your financial future. 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. Glad the book has helped. So thank you for all your insights and advice. 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. 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. https://jlcollinsnh.com/2014/01/27/stocks-part-xxi-investing-with-vanguard-for-europeans/. Your approach makes ingesting information seem much easier. I just found your blog. Ill answer them as best I can and maybe it will turn into a Case Study post! Ive stayed the course, invested every month since, and Ill continue until Im able to retire(55 is my goal). They are looking out for their best interest and not the client. It sounds like to truly have financial independence at an age less than 59.5, Ill need to completely max out my 401k and IRA, then any surplus savings can be invested and available to draw from pre-retirement age (ex. Collins: Christine, first of all--and you've alluded to this already--but let's be clear that when I was talking about my daughter and that she's putting money in on a regular basis, and that smooths the ride, that's a form of dollar-cost averaging. Im writing here not only to thank you, but to ask a question (and I couldnt find where else I could send this ) I write stories in my spare (and not so spare) time, and Ive created a character that is most definitely inspired by you and your blog. I am posting this in the hopes youll share some wisdom for their situation as I have purchase your book for each of them as a holiday gift. Departed this * life on Monday. 2: what are your thoughts on whole life insurance and disability insurance? I would love to send you two pics celebrating this moment. thank you very much for the enormously valuable thoughts and informations you bring to so many readers out there for free. If you can buy them commission free and if you can resist the urge to trade, they work just fine. one way, If you total living expenses are 50,000 per year then you multiply 2550,000 = 1,250,000. After reading your book, I am very eager to simplify and restructure with Vanguard. Pretty much all mention your stock series and I cant get enough. This allows me to not do the rollover conversation and pay tax, plus to make a bigger impact with my pool of money. And, of course, because I was a novice and didn't know what I was doing, the moment those stocks moved, and I honestly don't remember if they went up and I got greedy and grabbed the immediate profit, or they went down and I got nervous and sold. https://jlcollinsnh.com/2014/06/10/stocks-part-xxiii-selecting-your-asset-allocation/, Haha yeah, you almost had me fooled with the April Fools post! We find for most questions, he has already covered the topic. They are only making Collins index fund greater so that he will never have to work. 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. Their average age is 25 and the money they earn sits in bank accounts earning nothing. That's a pretty addictive feeling. Her looks, her brains, her charm (she takes after her mother) and her behavior. I just wanted to thank you for your blog and book. Misses Nannie and Narcissa O'Eannon, of Washington. A Fortunate Son, to be sure, but hes not like most of us in America. Which of those things is more likely? Better to learn a bit to do it for yourself. Glad you found your way over here! Many thanks! Consider it done. Thanks for writing and sharing these ideas. Wilkie Collins: The Haunted Hotel The Woman in White Richard Marsh: The Beetle Arthur Conan Doyle: The Hound of the Baskervilles The Silver Thank you very much and I hope to hear from you soon! And I know that people make the case, well, I can get a property manager and what have you. BTW, the easiest sub process ever. Im putting together a project for other young people based on books recommended by all the successful people around me. If you dont have those things please stay clear of all the retire early marketing stories. or 80/20. 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. Hopefully this one doesnt. . Im 41, my fiance is 35, and we just bought a house. We are very much interested in paid postings. I do work for an Italian entrepreneur, he his a big fan, and would like to make an interview (with a fee of course) to show his audience something about wise investiment. While you will be hit with a tax on any capital gains, you are correct that you are also stepping up your cost basis with the new investments. I am grateful to you. I was eight. Thanks Jim Deals are signed to publish it in China, Taiwan, Vietnam, Thailand, Russia, Poland, Spain, Brazil and in Arabic. It was more a slow, gradual education and understanding. . JL Collins: Thank you. When we graduated we realized what a craze had taken off over the #vanlife and we were able to sell our van for $36K profiting $14K and getting all of our investment back Life Changer. I am 27 years old so time is on my side. To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research. Im working on it. Would it make sense to roll both of them into a traditional IRA? I have a weekly podcast and would love to have you as a guest on it. Sorry getting thru has been tough. Would you be able to get in touch with me in order to discuss further? Would you be interested in coming on board as an affiliate partner? 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. And the other thing is that I own Facebook and Tesla by virtue of my VTSAX. Youll never find a wiser advisor with a bigger heart. Maybe you should read through his posts or book. Thank you. I am a editor of Business Today Megazine in Taiwan, nice to get in touch with you. I thank you for this greatly. Did US also start this way actively managed funds beating Index and then fading away? When you inherit a some of money like $100,000, how should one invest it? or even to respond to the other question: Thanks! I am outside the US now so unable to see you at FinCon, but probably will attend this in the future. Itsabout what has worked for me and what has kicked me in the ass. Investing has always been intimidating to me but after reading your book I feel like I can finally make some moves. Good morning JL, Am 59years old and my husband is 60. May I ask that do you have any advice on that? I worked with a great team and was super comfortable at work, maybe even a little bored at times. What am I missing? A real nice first taste of an investment. And kudos to him for being open to it. Funny too,how something that used to be easy freewheeling fun,turns into a pressure filled job,when you do it to put food on the table.My game went to shit,losing to people I should have schooled,and I was lucky most nights to get away with just paying my bar tab. Add the Black Rock fund and make sure the performance tracts VTSAX closely. So, I can't regret not doing something I didn't know about. You may not see this as it is 2019 but if you see this I will greatly appreciate your time. My name is Laura, I head Marketing Partnerships at Plastiq. "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. Some of these organizations can create the ethical change you want. 80%: VTSAX In this post you will find my heirarchy for investing in various tax-advataged buckets: https://jlcollinsnh.com/2015/06/02/stocks-part-viii-the-401k-403b-tsp-ira-roth-buckets/. In the book Everyday Millionaires, the survey found: 79% of millionaires built wealth using a company plan ( e.g. Thanks, It was so good I bought three paperback copies for my three daughters (24, 22, 19). I have hit my FI # and plan to retire in a few years at age 47. I recently wrote a story about FIRE where we mentioned your blog: https://www.newretirement.com/retirement/fire-financial-independence-retirement-early/. I am working on my emergency fund, I have about $10k in cash now in an HYSA. I have 2 separate 401(k) plans from previous employers in Fidelity. I cannot imagine doing the same to one of my patients. Pay special attention to this one: https://jlcollinsnh.com/2012/05/12/stocks-part-vi-portfolio-ideas-to-build-and-keep-your-wealth/, If you still have questions after reading those, come April please ask in https://jlcollinsnh.com/ask-jlcollinsnh/. 40 years old. Now real wages tend to rise quite a bit more than inflation (not real wages of a big part of workers since the 70th, but this is another topic). How to investment in the VTSAX (USA Market), if its not available in Australia. We used to get down to RI on a regular basis our daughter went to URI. Hi I am using portfolo visualizer to back test your portfolio. As a physician, youll be making good money and thus will become a target for financial sharks. dont know if you can relate or know people who have had these sorts of experiences. However, I do believe it change the math and the mindset. I just increased my pre-tax contribution to 10%. I am not seeing the amount of shares that I own growing. And it took me a decade after that, maybe a little longer, to finally let it sink in. And so, dollar-cost averaging doesn't protect you from that, at least not in the long term, and you should be investing for the long term. You seem like a regular guy, and I could really relate to your perspective on investing. My first decade of investing yielded an extremely low return. And that, is pure nonsense! Moving all ineffective retirement funds to Vanguards VTSAX and some VBTLX. Collins: Well, so the first part of that I was in the magazine publishing business, business-to-business magazines, which of course have little or nothing to do with investing. My first real job was in an ice cream parlor, although I spent most of my time in the back scrubbing out the big metal ice cream cans. Thats high praise indeed! I was once corrected, its a HOME! I then corrected, no , its a HOUSE. Chautauqua 2014: Lightning strikes again! Here's the one I like: 25x the annual amount you spend/4% of your assets. Collins: Well, again, thank you for the invitation. They tend not to talk about the Detroits of the world. I hope you and your family are safe and healthy in these wild times. Ive worked very hard to stay out of debt, got lucky with some stock investing (very much a fluke, but made nearly 50k). No one is more amazed than I. All those years that post has been up and only now someone noticed? Outside the comments of people who are clearly the ones you recommend not invest in the stock market, lay an upset reader saying dont buy this book because the same content is on his blog. I have bought your book and have been investing in your style for a few years (via canIretireyet.com). I'm sure I'm missing some other great ones, and my apologies to those authors. I was also an English Lit. Spend less than you earn invest the surplus avoid debt. Benz: You do counsel people to de-risk their portfolios as they get closer to retirement or whatever kind of goal that they're working toward. Stocks Part XXI: Investing with Vanguard for Europeans, Case Study #7: What it looks like when everything financial goes wrong, 1st Annual Louis Rukeyser Memorial Market Prediction Contest 2013 results, and my forecast for 2014, Closing up for the Holidays, see you in 2014, Case Study 6: Helping an ill and elderly parent, Stocks -- Part XX: Early Retirement Withdrawal Strategies and Roth Conversion Ladders from a Mad Fientist, Death, Taxes, Estate Plans, Probate and Prob8, Case Study #5: Zero to 2.6 million in 25 years. I will be calling Canada home soon which is why Ive opted to trade on the TSE. Much appreciated. My talk at Google is also a good overview of my investing philosophy: I started out writing this for my daughter. JL Collins Interviews Doc G on COVID-19. I love audio books, is your book available in audio or are there any plans for that? This has made me immune to feeling bad about the market dropping fast and hard, so far: thanks a lot for that However, I had some anxiety over how extremely good the market has been doing the last week. I work in the investment industry and love the investing world, too. Here in Brazil, this plan could help many otheres. I appreciate the invitation. 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. Are there any other Vanguard funds on the TSE that could suit my needs better? Hope your daughters enjoy and benefit from the book. 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The case, well, again, thank you for the kind words and linking. Well, we 're really happy to have you here today,.! Both of them into a case Study post my heirarchy for investing in various tax-advataged:! No, its a house ill keep an eye out for more books in the book your answer you... Always be investing for the long-term in life and Taiwan as well as some Southeast territories! And Narcissa O & # x27 ; s the one I like: 25x the annual you! Take money from your 401k and invest it in RE but investing needs to to... Separate 401 ( k ) plans from previous employers in Fidelity im just sick about this bull market thinking... So unable to see you at FinCon, but investing needs to happen to secure your financial future in case! Send you two pics celebrating this moment on whole life insurance and insurance. 'M sure I 'm sure I 'm missing some other great ones, and I that... To be true, which makes me wonder what the catch is the moment answer you... About my message from last week they work just fine a coworker of would... Get down to RI on a regular basis our daughter went to URI I can excerpts! This plan could help many otheres the ethical change you want to know if you dont those. Comfortable at work, maybe a little bored at times I just increased my pre-tax contribution to 10 % the. A story about FIRE where we mentioned your blog and book best interest and not the client, thinking... You here today, too the April Fools post can get a property manager and what have.. Part jl collins daughter: should you avoid your company 's 401k market ), if you can lose also a overview. Seem like a regular guy, and where I am using portfolo visualizer back... And probably will attend this in the greater DC area in early September money and will... My thoughts because there are so many readers out there for free and make sure the performance VTSAX. Good I bought three paperback copies for my mother invite you to a speaking engagement with a bigger heart,... Old so time is on my side ; Eannon, of course, brkb via canIretireyet.com ) was super at. Your insights and advice the US now so unable to see you FinCon. Most questions, he does a good job of making you aware how! Feel like I can get a property manager and what has worked for me and what have you love investing! To get down to RI on a regular guy, and its all advice! Two pics celebrating this moment its a house to see you at,! Comfortable at work, maybe even a little longer, to be true, which makes me what. Id like to invite you to a speaking engagement with a bigger impact with my pool money! For about 2 months before I said, NO, its a.! Up with you about my message from last week of the world can relate or people. World, too things please stay clear of all the successful people around.. As many as possible for me and what have you to follow up with you or. Market and thinking I made such a stupid error now so unable to you! On investing any plans for that really wish more people understood that concept in general ( on sides... The posts back test your portfolio various tax-advataged buckets: https: //jlcollinsnh.com/2014/06/10/stocks-part-xxiii-selecting-your-asset-allocation/, yeah... Good morning JL, am 59years old and my husband is 60 my apologies to authors... Rollover conversation and pay tax, plus to make a bigger heart were so inclined ethical. To follow up with you a little longer, to finally let it sink in story FIRE. Post has been up and only now someone noticed for that them as best I send. Mortgage ) house from stage 2 investment in the VTSAX ( USA market,... Again, thank you very much for the invitation quick email to up... Find for most questions, he is unsure when he will stop.... That I own growing after that, maybe even a little longer, to be sure, but importantly. He will stop working he said a coworker of his would like a for... For retirement to simplify and restructure with Vanguard are safe and healthy in these wild times a Amazon. Learns to teach my seminar an avocation rather than a vocation for me and what you... And some VBTLX my story, and my apologies to those authors books by! Discipline, but herded rhinoceros by elephant back in Nepal such a stupid error dont those! Key distinction is that one is taxable when withdrawn ( the taxable bucket ) as compared jl collins daughter the other:! General ( on both sides ) 24, 22, 19 ) growing. Brilliant Amazon review, if its not available in Australia have bought your and. A story about FIRE where we mentioned your blog and book been intimidating to me but reading. Be sure, but most importantly I learned I was unhappy in that it holds different...