My name is Pavlin Yakimov and I am the manager of AMG Publishing, Sofia, Bulgaria. A percent of your net worth, the minimum starting at 70%. I just kept it with them and rolled it to a rollover IRA. I first ended up here because I was looking at purchasing some Vanguard funds (one to start a Roth IRA for my wife ended up with VTIVX, another to throw in some money we probably wont need for another 3 years or more ended up with VBIAX) and got sidetracked. 2. Should our investments be 50% total index equities and 50% index total bond market ? Crashes are a normal part of the process. I hate fees (and now that Im educated, taxes). 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. Thanks for your interest. And so, I'm faced with that very dilemma thinking, am I about to buy at the very peak? . In the wealth building phase should dividends be reinvested? Have you considered doing a follow-up with Doc G, 12 months on? For the most part Ive enjoyed my jobs and the only complaint was they took up so much freaking time. Unlike the example above, I the owner cannot choose to hold the assets no matter what the market is doing. "Stocks--Part XV: Target Retirement Funds, the Simplest Path to Wealth of All," by JL Collins, jlcollinsnh.com, Dec. 18, 2012. I guess there are many folks who are happy to accept this, because they enjoy the alternative luxury of free time. The calculators have been daunting and I'm hoping I can really start making serious payments, $1K/month would get me free by March 2023, still seems too far way but is certainly saving $$$ on interest vs. the minimum payments. ls improving . Is there a way to pay for just your audiobook directly to you or someplace else other than having to subscribe to some monthly fee from a large corporation? , Hi Jim, I was thinking of writing a detailed set of blog posts on Investing and then, realized you have an outstanding Stock Series that would help anyone. thank you very much for the enormously valuable thoughts and informations you bring to so many readers out there for free. will be prepared to help our daughters with college so I bought your Author JL Collins accompanies these readers' stories with reflections on his "rules for the road"--as well as a candid conversation about the journey to financial freedom with his daughter, the inspiration for his original international bestseller. ): I recently bought $30,000 worth of VTSAX using some funds I had in my savings account. While checking out on Amazon, Amazon recommended your book! I have forwarded your articles and info onto both of my sons and hopefully they will grasp how simple it is. Despite my relatively young age and living in a different country, I like to think Ive gone through a wide variety of financial and investment experiences during my adult life. Do you have any suggestions in our case. Could you elaborate a little bit on that? Case Study #3: Let's get Tom to Latin America! 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. A lot of it is due to a temporary stress of going through an annoying and expensive divorce but much all has to do with my lack of financial awareness. Hello Jl We made progress on our own, but really got focused when we read Simple Path To Wealth along with Quit Like A Millionaire. S&P 500 ETF Another book along those lines, as I'm thinking about it, is one that's not out yet, but I had the opportunity to read because they asked me to write a blog for it. My bio reads just like yours and its encouraging. Love the low fees and the simplicity. My fianc and I were recently told about your book from family friends of ours Scott and Taylor from Playing with FIRE Documentary! Hope they do as well. Are you concerned that 4% could be too high in an era in which equity valuations are quite high and bond yields are so low? What you feel comfortable with given your lifestyle choices (you used the word indulgences; close enough). Jeff Ptak: And I'm Jeff Ptak, chief ratings officer for Morningstar Research Services. Most of us are paycheck to paycheck. But I was very careful to keep an eye on what the stock market was doing. Feel free to send more info. I have an odd question and was wondering if you would be able to maybe send me and my team the stock series books or just the The Simple Path to Wealth? This blog launched in June 2011 simply as a way to archive this information for my daughter. When you're watching your holdings dwindle in value, and I do sometimes wonder, are the people who read my stuff going to be able to weather that crash just based on having read about it? Follow the principles in the Stock Series (which of course you have/will read carefully) and begin pouring your savings into your investments. You didn't . Dear Mr. J.L.Collins, They are offering payments of $212 per month interest free for 30 months. Can you sum up your thesis on that? To go into the Presidency at twenty-five thousand dollars a year is, perhaps, to gain more fame; but what is to become of him at the end of his Presidency? Real return is less than 4%. As a major proponent of VTSAX and its incredibly low expense ratio, has this new offering from Fidelity popped up on your radar? ( I realize that if I did max-out my pre-tax contribution it would put my taxable income about at the 12% tax bracket threshold.) I am 25 years old and planning to invest long term. simple if it wasnt for the fact that we are now in Australia. My expectations were confirmed, but not to the degree that you were let down. I understand there might be piracy issues or the likes? Haven't gotten into more trouble since either, other than just some more college DEBT. Sincerely, But it is only 6% of your portfolio, so no harm in holding it if you like. Focus on paying off the debt first. Doc G was spot on regarding so many points. Three months ago I bought my 2nd Triumph Spitfire, its a 1980, 1500. Would you or have you changed your plan? This document was uploaded by user and they confirmed that they have the permission to share it. Reading your notes for your daughter was quite emotional, made me wish I had a mentor like you when I was her age, I wouldnt have done the many mistakes I did. God Bless. That's one of the reasons we work hard and save and invest money. We are interested in publishing them in complex Chinese-language in Taiwan, is this book available? Or is it more likely to go down? Well, the market goes up three out of four years. Thanks! Youre book was exactly what I needed to hear to re-spark my motivation towards FI. : I have really enjoyed reading through your website. Plus, since they are bought and sold like stocks, they often have trading costs associated with them. 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. Can I email you directly? Its in Swedish, but Google Translate is our dear friend . Do you have any taxable funds recommendations? I am trying to figure out the best way to pay this off. By the same token, if the market just stays flat, your result will be less because it took you longer to put that money to work. but remind me never to play pool with you for $$. DATE OF SEPARATION 26 September 2022 RETIREMENT, 1. I would be happy to discuss more with you on a call if you are interested. This article about Vanguard has been popping up a lot on the Internet. Which makes me hot. Is there such a service? Almost anything can fit if it captures my imagination and I think you might be interested. First, Id go here: Just getting into investing, though. He said, You might want to put this on a blog and share it with your family and friends. This was in 2011. Just in case, Ill pass your contact info on to her. If I own a treasury issued by the United States government that is good for 10 years and pays a 3% yield, I can be assured that I will earn my 3% coupon every year for 10 years and then receive my initial investment back at the end of the term (unless the government goes away or defaults and we have a much larger problem). You made my day! I'm not going to go near that again. So, I think that's probably the reaction. For more: https://jlcollinsnh.com/2015/03/26/stocks-part-xxviii-debt-the-unacceptable-burden/, 2. I had to chuckle a bit at your case study. I have to look at that book again one of these days. I'm excited, thanks. From busboy, produce, clerk, and gas station attendant, to ad agency founder, sales trainer, radio co-host, and publisher. I owned motorcycles: a Honda 350 Sport and a Honda 700 Nighthawk; long ago sold. In your 80s and 90s, not so useful. Im not sure when it will be out from there, but it is definitely coming. Jim, I cant thank you enough, would love to buy you a coffee, beer, or dinner someday if our paths cross! I hope this message finds you well. We saw all these younger investors jumping into the market, but they were doing so by basically speculating, in my opinion. What is the best place for a 70 year old to place some money into investments. They dont exist. thank you so much. Wow, thats an interesting perspective. But again, I don't do it. 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. 80%: VTSAX Provide specific products and services to you, such as portfolio management or data aggregation. but, better late than never right? And finally, I decided I better write it down against the day that she would be ready to receive it if I wasn't around. And there are a lot of people who read my stuff. And having a clear path has lifted this massive weight from my shoulders. Obviously, it proved pivotal to the success that you've had. I run 27GoodThings.com, if youd ever like to be a guest sharing three good things to read, three to watch, and three to use please let me know. And, of course, I'm human. Life just gets better if you know where youre going and appreciate the journey. That was by the realtor board (imagine that?!) Is the market more likely to go up over this year, I'm going to do it? Enjoy your Spitfire. I do the same with books on occasion. Copyright 2023 Morningstar, Inc. All rights reserved. I am looking for websites to publish sponsored articles with a link back to I am 27 years old so time is on my side. For more on bonds: https://jlcollinsnh.com/2012/10/01/stocks-part-xii-bonds-and-a-bit-on-reits/. Rama. Very inspiring to learn more about you. I am planning to order more copies so that my friends and I can read your book in my book club early next year in 2021. But what was it about indexing and minimalism specifically that appealed to you at that time? Hope you enjoy poking around. But to me, a bond funds seem to have the limited upside that is a feature of bonds with all the volatility of stocks. Seems like a bad combination. I started selling flyswatters door-to-door and picking up empty pop bottles from the side of the road to turn in for the 2-cent deposit. If its not to your liking, Ill remove the character, P.S. I just had to let you know once again you have changed my life forever! After reading your book, I am very eager to simplify and restructure with Vanguard. What this audiobook provides her, and others who are less than finance-obsessed, is a simple . I just wanted to let you know that as of November 2018 VTSMX is no longer available. Then I found the bogglehead forum and learned about index funds. Hello- I just started your book The Simple Path. So the index funds began to outperform almost immediately. So your $500 will immediately buy $500 worth of shares each time you invest it. Thank you very much and I hope to hear from you soon! I think youd be a great fit for our affiliate program. Since the point of Roths is that they are funded with after tax money and are designed to then grow tax free and be tax free upon withdrawals, my guess is you should be OK. It is a very personal call. I have been in Betterment for several years and have built this up fairly well, however, when I tried to move a good portion of this into Vanguard (VTSAX) last year I found that Betterment doesnt facilitate any type of transfer and I would have to cash out and re-invest into Vanguard. Thank you so much for taking time out of your schedule to be with us. I just published a post with my take on ethical investing, along with some other issues. Even more fortuitously, I stumbled onto your blog last year and in no small terms, it changed the course of our lives. I thought it was all complicated and I had to hire a professional to help manage everything. I immediately called Vanguard (told them the best marketing plan they could ever have was to buy 5000 of your book and distribute to seniors in college) I opened an IRA and started transferring all my 401Ks that were sitting inactive in bonds. But target-date funds are not a bad approach. I dont really understand much about the bond market however, so Id be really curious what your thinking on the matter is, as Im not sure if Im adding unneeded complexity for little if no gain. What a great site. https://sensimsteps.blogspot.se/2017/01/the-simple-path-to-wealth-boktips.html Sorry getting thru has been tough. So if everyone else in the fund panics due to a recession, and demands their money back, the fund has no choice but to sell some of these fixed assets at a reduced price to allow their clients to redeem their funds. . ( say in 10 years+ time frame). Jackie Collins and her daughters (from left) Tracy, Tiffany and Rory celebrate a birthday. Your email address will not be published. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. And maybe five years later, you wind up taking another job, then you cycle back out. Your message about index funds needs to be taught in every high school and college in America. Can you just talk about how it is you concluded that the right path to try to lead people toward is this more minimalist indexing-centric approach that you ultimately embraced? Insurance is a subject, for instance, that makes my eyes glaze over. I have been consuming a ton of information on the subject lately, the foundation of that pursuit being The Simple Path. Proposal I would be honored to visit with you about giving a grant that would be matched toward the purpose of growing the financial wellness of leaders and teachers. The Pound just dropped faster than the FTSE (logical since the companies in the FTSE are earning in numerous currencies and not just the GBP.). How can I find more than the last 22 years worth of data? We arelooking forward to heard from you soon. As you spend time on my blog youll come across these. Ptak: And @Syouth1, which is, S-Y-O-U-T-H and the number 1. Its a little late to be starting an IRA (I am 35 and she is 33) for her but I figured better late than never. Any thoughts would be immensely appreciated. "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. Am I being too aggressive? Man, I love your book! is soothing and sounds like the kind of father I never had, giving me Thanks for your efforts, really great content. 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