Nov 20, 2021
#50
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!
Tell us a very brief little bit more about yourself and your early career up until today and how you got started investing?
I’ve heard mentioned in other podcasts that you picked individual company stocks in your early days before discovering index investing. Do you still like to pick individual companies these days? What would you say are the dangers investors should watch out for?
When did you realise you were financially independent? How did it feel?
I know you did an excellent video referencing a scene from remake of the movie The Gambler. My idea of how I’ll feel when I hit financial Independence is just like at the end of that movie where Mark Wahlberg puts everything on black on the roulette table, wins and pays off all his loan shark/debtors and goes for a never ending run around the block :) How did you come up with the idea to make this video?
What is your view on Active vs. Passive investing?
Your approach to investing has influenced, inspired so many people including myself how did you discover this approach this strategy?
What are your thoughts on international investing vs going all in on the American market using either the S&P 500 or VTSAX (Vanguards total US market)?
I know there is a Canadian approach to indexing possibly inspired by Bogle heads to invest and split 3 ways into Canada, USA and international, where as in the UK we just pick a global index fund that allocates and re-adjusts in the proportions of global GDP. Like I get being overweight in US if you’re a US resident who spends in US Dollars and with USA making up 55-60% of the global market but being say 33% in Canada seems like allot? Admittedly stock index from home countries are usually offered cheaper and may have tax advantages. Is being overweight in home market quite risky?
Lets talk market crashes. It feels a long time since 2008 and it has been. Admittedly there was a wee correction in March 2020 but market soon bounced back. How do you handle these emotionally and stay focused to continuing investing? Also realizing the opportunity to buy more shares cheaper!
On the subject of behavioural investing. Investing has gotten very popular with the youth of today. Many different investment apps available on peoples smart phones, where you can almost invest in anything any time. I’ve also picked up that people are now checking their portfolios regularly which can lead to making stupid mistakes like buying and selling at the worst times. What are you thoughts on this and how often do you check your own portfolio yourself?
I know your strategy of choice is generally 100% equities up until when you are close to retiring or reaching your FI number then switching to at least 20% bonds and say 80% equities. In the UK we don’t have a total bond market. The closest I’ve seen to mirroring this is something like a 60% allocation to UK government bonds (intermediate) & 40% allocation to UK investment grade bonds (corporate bonds). With bonds not paying much interest these days and inflation getting up do you think this is still a wise option, have you considered any alternatives?
Talking about inflation my wife is Venezuelan and you will be aware of how out of control the inflation is over there. I know stocks can be a good hedge for inflation can you explain why this is?
Reading through your book and stock series blog I’ve noticed you mention your respect for Vanguard. Why do you like Vanguard so much? You will know you are not alone in this.
I work in the pensions industry and have a really hard time convincing my colleagues to look more into investing or even their own workplace pension’s and what it’s invested in. I noticed that your book Simple Path to Wealth and blog The Stock Series was written for your daughter as a kind of guide book on how to invest and get yourself set up for success. We’ve recently had our daughter born in June this year. Should I be writing things down for her to help and guide her. One of my biggest regrets was not learning this finance stuff earlier but no time like now, right?
Now I know you update your blog from time to time and of course your book is growing in popularity daily due to word of mouth. Any plans to do another book?
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:
https://jlcollinsnh.com/stock-series/
https://twitter.com/JLCollinsNH
The Position of F U video by jlcollinsnh:
(*Warning Contains Strong Language)
A Guided Meditation for When the Stock Market Is Dropping: