The stock market is up, then down, then down, then up. What is an investor to do?Today we bring JLCollins from JLCollinsNH.com back to the show to calm our fears and help us understand what is happening with the stock market.The market is falling. Or maybe today it’s rising. It’s SO VOLATILE, it can be scary to stay invested - especially if you’ve never been through a market downturn.JL expertly explains what’s going on - and his recommendations for the best course of action - based on 40 years of investing in the stock market (and making a boatload of mistakes along the way.)Long story short, stay the course. 105 years of historical stock market data says this too shall pass.While JL is an expert on the stock market, he doesn’t invest in real estate, so Scott and Mindy share their views about the real estate market and what this current stock market volatility might mean for real estate investors. They also share ways to hedge your bets in rental property investing through fully funded reserves.If you’re freaking out about the stock market, this episode can help calm your fears and keep you on the right course to give you the most chance for financial success.In This Episode We Cover:Why are people freaking about the crashHow one should handle this market drop if you risk losing your jobWhen to prepare emergency funds and how much to put into itWhy you should hold your portfolio foreverWhat an Index Fund isWhy it is important to "ignore" the marketHow index outperform stock pickingHow one can never time the marketHow those who say they predicted the market only did it because of luckThe only time the market is not going to recover...And SO much more!Links from the ShowBiggerPockets ForumsBiggerPockets Money Podcast 20: The Simple Path to Wealth—Index Funds Explained with JL CollinsMr. Money MustacheTaking advantage of Mr. BearA Guided Meditation for When the Stock Market Is DroppingStocks — Part XXXII: Why you should not be in the stock marketTime Machine and the future returns for stocksPinterestDow Jones - DJIA - 100 Year Historical Chart | MacroTrendsBiggerPockets Money Podcast 95: The House Hacking Strategy with Craig CurelopBiggerPockets Money Facebook PageMindy's emailScott's email
Today I get to bring you what is easily my favourite interview in my nearly ten years of the MeaningfulMoney project. It was my privilege to chat with JL Collins, author of The Simple Path To Wealth, which is quite simply the greatest personal finance book ever written.
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. In Today’s Podcast we cover: Part 3 with JL Collins from JLCollinsNH, the Simple Path to Wealth and Stock Series fame Jim’s discussion of Alan from PopUp Business School and how the UK Chautauqua came to be The value of in-person events like Camp Mustache and the Chautauquas Ask Me Anything segment with Jim with questions from our audience and private Facebook group Question from Amber from our Facebook group about the value of annuities, reverse mortgages and fixed income items Jim only recommends investing in stocks and bonds. The goals that Jonathan spoke of in the question can be balanced by allocating different percentages to stocks and bonds Jim believes annuities and reverse mortgages are laden with fees that make them poor investment vehicles Annuities pay a guaranteed income which appeals to many people, but since you are buying them from an insurance company you are buying this contract and you will never see your principal ever again. That is the annuity contract The insurance company is betting on your death essentially based on actuarial tables for the annuity Question from Emily on international equity allocation Jim doesn’t see the need to hold international funds because VTSAX contains a significant international allocation with US multinationals, the expense ratios are higher and there is more risk because of lack of transparency in emerging economies Question from Jeff on when to move from 100% equities to holding some bonds Question from community member Brad on how to mechanically rebalance your funds Jim does his rebalancing within his IRAs so there is no taxable event He rebalances approximately once per year Question from David on being too aggressive and Japan’s prior decades performance Jim believes what Japan is going through is a “Black Swan” event and this is theoretically possible this will happen to the US Questions from Felisa on Jim’s thoughts on inflation Some inflation is normal and to be expected, but runaway inflation is extraordinarily scary Question from Matt on why Jim is in a different bond fund than he recommends on his site The Key to the Simple Path to Wealth is buying and holding for the long term You always need to approach your life and FI journey with an open mind and be willing to be flexible and change as the facts change Simplicity and flexibility
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! Highlights: Origin of The Simple Path to Wealth What’s changed about his investment philosophy over the last four years Three simple steps to financial independence Difference between good debt and bad debt Why buying a house is an indulgence The only two funds you need and why you don’t need to invest in an international fund When should you invest in bonds and why the decision has nothing to do with your age The bad investing habits Jim and I still can’t shake The important lesson Jim learned from working with the top stock analysts in the industry To read the full article, visit http://www.madfientist.com/jl-collins-interview/
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