Jan 21, 2024
#52
Disclaimer:
We are not financial advisors. The content on this podcast and YouTube videos are for educational purposes only and merely cite our own personal opinions. In order to make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a licensed financial advisor if necessary. Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won't experience any loss when investing. Always remember to make smart decisions and do your own research!
This podcast features returning guest and legend of the financial indepence world J.L Collins.
1. Firstly, since the last time you were on the show you've released a new book 'Pathfinders' please tell my listeners a little about it and what inspired you to write it?
2. Jumping straight into investments, what are your thoughts on bonds these days? In the UK and no doubt around the world we've experienced allot of inflation and the central banks have responded by increasing interest rates do you still think some percentage of bonds are worth holding particularly during the preservation stage?
3. What are your thoughts on life styling portfolios or as Vanguard calls them target date funds or even the life strategy funds by Vanguard Vs DIY investing?
4. What is your opinion on annuities?
5. Are you still very much a believer of investing exclusively in the USA total market equity or would you consider adding some international equity for further diversification?
6. As a UK investor I am always tempted to buy an S&P 500 fund/ETF as the cost is very low at 0.07% Vs an international all world fund costing 0.22%. The international fund is 3x more expensive but I'm more diversified and the fund is slightly less volatile and returns are very good. How important are fund fees and keeping them as low as possible?
7. How important is diversification in investing?
8. Obviously I realise you can only speak from the US perspective of tax as you are not living in the UK but In the UK are two main tax shelters for investing are our pensions/SIPP's (in US 401k's/IRA's) or a stocks and shares ISA (in US Roth IRA) what is your preferred tax vehicle/shelter in the US and why?
9. Do you have any preferred strategies for drawing down a portfolio in retirement? Examples of this could be switching from accumulation funds to income funds to pay out a dividend quarterly. Timing of withdrawals? Keeping some cash for day to day expenses.
10. One thing I learnt from you is the importance of debt free living yet there are still allot of people out there who want to invest as much as they can before getting their debt cleared. Please explain why it makes so much more sense to get rid of debt before investing?
11. Talking about debt what are your thoughts on home ownership especially now with the high interest rate mortgages available? I call home ownership the main religion of UK and Ireland as it's very hard to stop people thinking of or following the script to buying a home when sometimes it may make more sense to rent. We have sayings like an English mans home is his castle and tons of property shows on the TV.
12. You wrote your blog the stock series to educate your daughter on investing who earlier in life had no real interest in it. There are not many people really into investing most don't even know they are an investor even if it's only through their workplace pension (401K) and couldn't tell you what they are invested in ie the fund. As the time has gone by has you daughter since taken up more of an interest in investing?
13. Any exciting future plans you'd like to share with the audience? Where is the best place my listeners can find you online.
Please check out JL Collins blog/website here: https://jlcollinsnh.com
Books:
The simple path to wealth:
Pathfinders: Extraordinary Stories of People Like You on the Quest for Financial Independence―And How to Join Them:
How I lost money in real estate before it was fashionable - A cautionary tale: