NGPF Podcast: Tim Talks to JL Collins About Financial Independence and Investing. 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. If your income is low enough, sometimes you can do that with no tax consequences at all. I think this is a flawed, reductive view of global equities investing, especially when we know that during the period 1970 to 2008, an equity portfolio of 80% U.S. stocks and 20% international stocks had higher general and risk-adjusted returns than a 100% U.S. stock portfolio. JL: Yeah, we actually … I have an agent now who’s done some international deals. We’ll dive into that more, but I will say that finally, after four years I do own VTSAX, though it took me four years to take your guidance and run with it. I wasn’t even aware of the term financial independence. Again, maybe this is part of my own defense. That’s one of my very earliest posts. It was interesting, I was hitting … some of the highlights that I saw were one, you have this … you’ve had this really diverse career working across all these jobs, but also that you achieved kind of financial independence 15 years into your career back in 1989. J.L. What happens when NO ONE is available to help you figure out where the money went....or worse yet, when you do get a reply back it says that you'll need to hold tight for a few weeks? My goal was never to retire early. So the book looks at the stock market from 1975 up until about 2015. This episode was recorded live from Kibanda. I know you’ve. It can go up five, six years in a row and then be down two or three years in a row, but on average, and it’s impossible to predict what the market’s going to do. It’s possible they could have been. At least the silly people will. 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 mean, things just came together more easily and even work quickly. Steve: Yeah, no, exactly. She’s not interested in this. JL says that when he first started investing, there was no concept of FIRE. At least, there wasn’t a concept that was widely discussed or even defined. The interesting thing there is that they can certainly rise 100%, but they’re not limited to that. He is a prolific world traveler, having visited more than 30 countries on five continents via motorcycle, car, train, plane, boat—and even elephant. 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. Although we lived modestly. It’s not like 1% sounds like nothing. How many copies of the books have sold so far? We live in a culture and they’re surrounded by media that’s continually drumming into people’s heads that such things are impossible, that they’re not even making enough money to live on day-to-day, and there’s never any discussion as to how the choices individuals make influence that. And the answer to that question is no. I heard the F-you money very early on in my career too. You can be sure those stories will appear at the moment they’re available. The downside is they can rise 200%, or 2000%. What was the threshold? 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? But yeah, how do you define FI? Steve: Right. I also maybe a little bit more on the F-you money. As I say, I was negligent in not embracing it sooner. He presents his nonsense advice and blogs freely on the topic and about his journey to Financial Independence. Steve: Welcome to The NewRetirement Podcast. Terms of Use: Your use of this site constitutes acceptance of the Terms of Use. In Today’s Podcast JL collins from jlcollinsnh joins Jonathan & Brad on the podcast to bring the Stock Series to life. Steve: What percent of people, if you had to give an estimate, do you think might take on attempting to get to FI? It’s hard for me to work up sympathy. That means that a money manager, to do best by their client is frequently called upon to do things that are not in their own personal best interest. Episode 1013: Why Your House Is A Terrible Investment by JL Collins on The Home Buying Decision & Should I Rent Or Buy . If I’m not mistaken, it is … The most watched Google Talk is 33 in terms of all the Google Talks ever done, it’s 33rd, but I think it’s the most watched by somebody who’s not famous. Then so far as I know, Vanguard doesn’t know that I exist. How about for your career? Beyond travel, did you take any extra risks in your career? The spring of 2016. JL Collins, author of A Simple Path to Wealth, joins Jillian to help you start Index fund investing. They are, but you shouldn’t be surprised by them. Now, of course, there’s always pushback about, what about good debt? Change has to come from outside of it, from your book. 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. 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. So, if you believe that the United States has a future, and I do, then that’s about as good a bet worldwide as you can get anywhere. The truth is I knew about indexing long before I was smart enough to embrace it, so there’s another dirty little secret, as long as we’re airing them. But market, for the last, whatever 100 plus years has gone up into the right, keeps doing that because we, as an economy, keep increasing productivity, making more stuff, generating more wealth. Hardly enough to get excited about, at least if you are looking for a buying opportunity. What I needed was guidance from someone without an agenda. I mean, for our listeners, I called … as we were ramping our business, I learned about F.I.R.E. Money managers are expensive always, and it’s very rare to find a good one. JL: Yeah, 2011 is when I started the blog. Mr. Money Mustache, my friend is fond of saying, if you have debt, it’s like your hair’s on fire. I, by the way, my wife and I never had that discussion when we were dating, and just very fortunately for both of us, as it happens, we share exactly those values. 1% seems like nothing but compounded over time, it’s significant. Copyright © 2020 Apple Inc. All rights reserved. JL: That’s a great point. I recommend buying as much as you can whenever you can and holding it forever. There is so much nonsense swirling around COVID-19, right down to the correct name, I was starting to get lost sorting it out. I can imagine few things that would be more discouraging, that it’d be married to somebody, and while you’re diligently saving and investing and trying to build your F-you money and financial independence, they’re out squandering it. Also, listen to the very end for a short but satisfying blooper reel! 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. From busboy, produce, clerk, and gas station attendant, to ad agency founder, sales trainer, radio co-host, and publisher. About three years into it, our daughter was born. IN THIS EPISODE, YOU’LL LEARN: Why you might want Hosted by Skyler J. Collins. Steve: Interesting. The audio version, as I mentioned earlier on the international deals, I have an agent, Anna by name, and I first worked with Anna, she negotiated the deal on the audible version of the book, but the Kindle and the print version, I, myself published. If it manages 5 billion, it could still be the same three guys. JL Collins joins me on the Financial Independence Podcast to talk about stocks, bonds, real estate, and his brand new book - The Simple Path to Wealth! I know you mentioned Mr. Money Mustache but anyone else? | 10172 Pagina 2 It sounds super low, but you’re paying that 1% on your lifetime savings every year to somebody else. I’m getting out and blah, blah, blah, blah.”. That’s how I wrote the book. Steve: Yeah. Again, I reached FI doing that. Kristy and Bryce from Millennial Revolution do a great job. You’re actually writing a check to someone. They can rationalize a whole lot of things. I thought that was, as you’ve been there for quite a while, kind of your perspective on active versus passive has changed. And 1% sounds, I remember when I first got a job, the 401ks were coming out. JL: Well, so first of all, with the caveat that this is just my opinion and other people define it differently, so this is not the definitive definition, but I think of financial independence is that point where you have enough money that you don’t have to trade your time or your labor for money. I enjoyed it. Jim was last on my podcast … 036 | In today's podcast with Jim Collins from The Simple Path to Wealth and JL Collins NH, we discuss the Chautauquas, in-person events plus an 'Ask Me Anything' series of questions from our ChooseFI community. Of course, there’s so much money to be made in active investing. Once I did, it just became obvious that it was the better way. Chautauqua sits out 2020. by jlcollinsnh 15 Comments. If you have a chunk of money, the best thing to do is to put it to work right away. Just like if you’re willing to tolerate hurricanes, there’s some pretty nice living Florida. But we also get users saying, hey, I’ve been saving my money for my whole life, and now I’ve got a couple million bucks, I’m headed towards retirement. When Jack Bogle first came out with the idea of index funds, he was roundly ridiculed. 1975 was the very first year I ever invested in anything. They actually pick stocks that will outperform to avoid those that will underperform. I’m not suggesting that’s the right allocation for everybody. JL: Yeah, something like the chart, somewhere between 12 and 14 years, it depends on how strong the wind is at your back with the stock market, what your returns are, but basically that. It sounds like you’ve taken sabbatical, so you kind of deployed your savings to free up your time then early on. 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. 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. If you want to be financially independent, if you want to have a F-you money, if you want to be free and have the widest possible choices in your life, you have to buy that freedom, and that you do by saving money. Steve: All right. That’s unlikely, because those things don’t happen very often, but you have to be prepared for that. 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. There is a lot of rationalization going on, but there’s like a famous financial advisor. If I’d been aware of other people doing this and somebody else said, “Jim, you could do 60 or 70, and there’s this goal that you get to even sooner,” I probably would’ve done something like that, but I didn’t have that kind of guidance. I think not. JL is an accomplished consultant, speaker, and bestselling author of “The Simple Path to Wealth”. I bought more, I bought more. JL: Well, we have, so we have this little vacation house that I’m talking to you from. JL: Yeah, it’s an interesting question because sometime in the mid-’80s, I had a friend of mine who was a financial analyst, and he was the one who first brought passive investing, which is to say index funds to my attention, and Vanguard and Jack Bogle. JL: Sure. 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? If you have low income years, it’s a good time to shift money into Roth accounts, and then it grows tax free forever. One last point I’ll make is yes, you certainly expect and only look at money managers who are fiduciaries, but just because they are fiduciaries doesn’t mean that they actively put your interests first. JL: I self published it. Yeah, some debts are worse than other debt. Here is the first of the 7, with the other 6 further below […] On today's show, I chat with JL Collins about index fund investing, personal finance principles, and the road to financial independence. I think I brought up the audible version maybe a year later, something like that. 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