JL Collins' "Simple" path to wealth
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- čas přidán 5. 08. 2024
- -- JL Collins, known as The Godfather of Financial Independence and author of three books including The Simple Path to Wealth, joins David to discuss personal finance, the state of the economy, and much more. Get his book: amzn.to/476pKRu
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Broadcast on November 1, 2023
#davidpakmanshow #finance #investing
Just wanted to say that my personal situation in regards to everything that was happening in the market and in the world during the pandemic was truly eye opening, and it inspired me to wake up and finally take personal finance seriously, at the age of 39. I read A Simple Path to Wealth, at the recommendation of a podcast I regularly listened to and trusted, and it truly changed my life-in particular, the chapter about F-you money, which has become the engine that drives my career. It’s great to hear from JL on one of my favorite channels.
I truly am grateful for the spectacular people you choose to interview. Thank you for spreading knowledge and giving us tools to grow.
JL changed my life, my children's life and likely the lives of my children's children.
Very interesting. My IRA is with Vanguard. I do use their investor advisor services. My RMD is more than enough for me. I am a 73 yr old widow.
Major props to Pakman for asking extremely good questions! Bravo, sir!
I never quite understood how saving for retirement actually worked until I read this book. I'll admit I haven't read other finance books but this one really lays it out quite simple.
JL Collins the best! Love seeing him on the show!
Interesting convo
Love JL Collins. Too bad he didn’t write his “The Simple Path to Wealth”20 years ago. If he had done that, today I would be a millionaire
Large cap index funds are the way to go (VOO, SPY, DIA, QQQ). Maybe add one or two of the top names from each index as well to get the potential for outperformance and dividend income. A lot of investors don’t realize historically dividends have made up a good portion of market returns and especially during bear markets or economic downturns when share prices decrease, most solid companies don’t stop paying their shareholders dividends and can even increase them. You’re less likely to sell off when the market goes down if you’re getting passive income and cash flow from your portfolio that you can either re-invest or just live off of.
Nice talk. Broad based index funds are a great way to invest. David probably should have someone one for more in depth discussion on trying to pay down debt.
Great video
Mr. Collins, has anyone ever told you that you sound like Tom Bosley? I can’t help but think of “David The Gnome” (a Tom Bosley voiceover character) whenever I hear your voice. It’s nostalgic for me and I enjoy hearing you speak.
Collins is a Legend and my guru
JL is a world hero 👏🏼
I wish I had applied the principles of this book when I read it. I just never trusted the markets to put my money in and I've made some very bad "savings" moves that lost many years to inflation.
❌️Thank you for sharing this important information.❌️
"Simple", not "Safe and Effective"? ✌💖
This guy reminds me of Bob Homme, AKA The Friendly Giant. I am predisposed to trusting him
It's always interesting to me that when I hear financial experts share lines such as "every publicly traded company is working to make me richer," there's rarely a mention of what those companies produce or how they work to make stockholders richer. Says a lot.
Ever looked at the trend line over time of the market? You are obtuse.
@@jc2604Obtuse? How did you get that from my comment kid? And you are a kid, right? I don't get it. Your response had ZERO to do with my point. Maybe you don't know what "obtuse" is but it's one of those words that people think makes them look smart. Maybe you just learned "trendline" too. (It's one word by the way).
I'd ask you to explain but I really don't care what YT boys think so...have a great day sport.
Agree with nearly everything he said
My 2 favorite people. Jl collins and Donald trump. ❤i can listen to both men talk all day.
I know you stopped the finance channel but I feel like information like this is so important for your audience to hear. Trumps a clown but this stuff is so important. Financial literacy is under appreciated
People have always paid more for gold as time passes. Great interview. I'm going to continue buying gold though.
Gold is a hedge. It is not an investment.
❤❤❤
David P, J. L. Collins, or Anyone. For a two fund portfolio and to smooth out the ride of VTSAX, would you recommend Vanguard Money Market VMFXX instead of Vanguard Total Bond VBTLX? Thank you and great content ;-)
Depends on your yield. Money market funds are giving terrific rates right now and are very liquid. A bond fund is not. However when the mm funds go down as inflation eases, you might want a bond fund.
❤❤
My problem is that even though I no longer have a debt, I have absolutely no clue how to begin investing, how to find a way to begin investing, and what to invest my money into. Every single investment consultant firm I’ve reached out to want to pay some huge sum of money just to get a little advice on how to get started. I know that there has to be a way for me to get started without going into debt by asking for advice.
I've read a lot of finance books over the years. The really smart thing to do is just keep it simple like JL says. Forget those advisors, 90% of the time they can't even outperform the s&p500, plus you'd be stuck with high expense ratio plus fees. The best advise I get comes from the channel "Inventing Simplied". I forgot his name but he is a real finance professor at a university. For me personally, my plan ( some people call a 3 fund plan) is just to invest in VOO which follows the s&p, VIGAX, which is a growth fund, and SCHD which is a divided index fund. Wish i did this sooner rather than picking a bunch of individual stocks. It's a safer route and still make a lot of profit. But just keep in mind there will be up and down years where you loose money, but just keep dollar cost averaging in and don't panic sell when markets crash cus they all ways come back for index funds. The market is built to be a roller coaster, don't let it scare you.
just start with the Index fund Collins mentioned right in the beginning of the clip. Investing is a marathon not a sprint
The first investment would be to set aside $15 and a few hours of your time to acquire & read JL’s book ‘A Simple Path to Wealth’, and then everything will all make perfect sense, especially when you already have a head start on most people by being debt-free.
The internet is your friend.
Not trying to argue but genuinely curious. Why don't the wealthiest investors like Warren Buffett, Peter Lynch and Ray Dalio invest in index funds?
They are geniuses, that’s why. Same reason Steve Jobs never needed a book on management. Average people like me need to do something that lets us win in an area where I am not a savant. Warren Buffet recommends index funds for most people including his own heirs.
Stocks is speculation too! That is why you need to buy cash flow assets!
I’m 41, starting late. Where do I start? Vtsax
Start with his book or his website. All the info in the book is on the free website. He breaks it all down and is a very good writer. You can have fun taking turns reading it aloud with your spouse! I promise you'll both be entertained and be encouraged.
Read his latest book Pathfinders and you will find a wealth of real life cases of people like you. If you focus you might achieve FI within the decade.
Max out your roth every year. Max $6,000 per year. Which is less than the average car payment per month. In 30 years you will be a multi millionaire. So would you rather be poor with a 500 car payment on a depreciating asset, or put that 500 in an ira to become wealthy.
Yep. If you think about it...even though you are paying in your highest tax bracket for the Roth you get to keep all the dividends. In a normal IRA you don't pay the initial taxes but at the end you are paying taxes on your initial input and 30 years of growth of that investment. You'll pay way less in total for the ROTH.
Well. Compounded interest at 4% - 6% is pretty good also. Some people claim their stock investments compound. Not so. Volatility also affects your return on stocks. The example I use is say you invest a dollar and it goes up 10%. Now you have $1.10. Now it loses 10% and you have $0.99. Same if it goes down 10%. you have $.90 and then it goes up 10% you have the same $.99. Every time it goes up or down a bit is shaved off.
Yes, stock investments do typically have volatility. If you invest in it today, next year it could be down or up. Nobody knows. They do however know that despite the volatility, the S&P 500's average annual compounding return for the last ten years has been 11.99% for Vanguard's S&P 500 mutual fund (VFIAX). The same average annual compounding return for the last ten years has been just 1.21% for Vanguard's Federal Money Market mutual fund (VMFXX) that many people use as a high interest savings account to park money. Despite the volatility, a $10,000 investment ten years ago in VFIAXX would now be worth $31,149. That compares to just $10,960 if the investment had been in VMFXX.
Do yourself a favour and read JL Collin's book. Maybe it will actually help you simply achieve what you want to achieve.
This guy reminds me of me.
#FBI a banking system that works for everyone is not rewarding investors is punishing the borrowers.
thousands of innocent people die please people forget it I don't want to talk about it
It's your choice, don't be informed.
I gotta hear this one ugh lol
"How to make more money if you have money."
You don't gotta do nothing you live in a free country.💆♀️ Some folks just don't know better.
@@VooV830 "free" and "freedom" are not the same thing lol
This type of video should be on your financial channel. I have no interest (pun intended) in this type video that's why I never went to your financial channel. I'm leaving this comment 3 hours after posting and there are 23 comments not the normal 1000+ comments on most videos at the 3 hour mark. So that should tell you no one really cares for this. But it's your channel and we can just delete the videos that suck.
Dont watch it then lameo
@@Jasoos_Jasonda "lameo"? well that shows you age well. When you grow up you will learn not everyone has your opinion they have their own. And by sharing it with the channel owner along with others sharing their opinion as well may be helpful to them. This video still is way below Davids average views a little over 3000 his average is around 50,000. Maybe David would get some idea why that is if people explained why they didn't like a particular video. I'm sure that children posting thing like "lameo" doesn't help at all.
- - Selling during any Market downturn...."LOCKS-IN"... your losses - and you consequently will also miss-out on the Market turn-around.
Collins really gave a shit answer to David's question about people in situations where they can't follow his Simple Path, choosing instead to hawk his book and then follow up by saying that people who are in unsustainable debt should just pay off their debt (which is like saying that they can get out of poverty by not being poor anymore). As much as I still follow the teachings of the FIRE movement and work to build the passive income streams I can, this sort of delusional crap and callous indifference is why I no longer follow the actual FIRE movement.
I wish people like him can come out and just say "I recognize that this doesn't work for the poorest of the poor, for those who literally can't invest because they'd have to go without food if they did. I've got no answer for that. My advice is for the working and middle class and above on how to best escape from the rat race and ensure a stable financial future free from dependence on an employer. For the poor who literally can't afford to invest, maybe other solutions are needed, and I'll let the politicians and economist figure that out." I would honestly respect and admire an answer like that far more than "Poor people choose to be poor. Here's a poor person that stopped being poor as proof."
JL Collins was Late in the game to the FI community and he has been simply trying to monetize at every turn. Not a fan of this guy
@@ChuChuBelo Please point it out?
@@ChuChuBelo Funny how you can’t point it out.
He is literally the og of FI
@@Beverage517gmail That statement shows you don’t know much about this space or have entered it recently (last few years) There are others out there who are actual OG’s and they deserve some respect
So, Pakman, you are one of the elites who have money to spare for investments. I am unsubscribing right now!
Index funds. Hell, I barely have enough for my 401k.
Why do rich people assume we have enough money left over to invest after we're done paying for groceries and utilities and a mortage???
@@GenerationX1984 Exactly: Pakman is an AGINO (average guy in name only).
@@TimbreWx I am 'comfortable'. But I never invest in anything but myself.
@@TimbreWx It is now.
so you have to be an elite not to live paycheck to paycheck? Gimme a break.