The Simple Path to Wealth: Your road map to financial independence and a rich, free life

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“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. You'll never find a wiser advisor with a bigger heart.” -- Malachi Rempen: Filmmaker, cartoonist, author and self-described ruffian This book grew out of a series of letters to my daughter concerning various things—mostly about money and investing—she was not yet quite ready to hear. Since money is the single most powerful tool we have for navigating this complex world we’ve created, understanding it is critical. “But Dad,” she once said, “I know money is important. I just don’t want to spend my life thinking about it.” This was eye-opening. I love this stuff. But most people have better things to do with their precious time. Bridges to build, diseases to cure, treaties to negotiate, mountains to climb, technologies to create, children to teach, businesses to run. Unfortunately, benign neglect of things financial leaves you open to the charlatans of the financial world. The people who make investing endlessly complex, because if it can be made complex it becomes more profitable for them, more expensive for us, and we are forced into their waiting arms. Here’s an important truth: Complex investments exist only to profit those who create and sell them. Not only are they more costly to the investor, they are less effective. The simple approach I created for her and present now to you, is not only easy to understand and implement, it is more powerful than any other. Together we’ll explore: Debt: Why you must avoid it and what to do if you have it. The importance of having F-you Money. How to think about money, and the unique way understanding this is key to building your wealth. Where traditional investing advice goes wrong and what actually works. What the stock market really is and how it really works. Why the stock market always goes up and why most people still lose money investing in it. How to invest in a raging bull, or bear, market. Specific investments to implement these strategies. The Wealth Building and Wealth Preservation phases of your investing life and why they are not always tied to your age. How your asset allocation is tied to those phases and how to choose it. How to simplify the sometimes confusing world of 401(k), 403(b), TSP, IRA and Roth accounts. TRFs (Target Retirement Funds), HSAs (Health Savings Accounts) and RMDs (Required Minimum Distributions). What investment firm to use and why the one I recommend is so far superior to the competition. Why you should be very cautious when engaging an investment advisor and whether you need to at all. Why and how you can be conned, and how to avoid becoming prey. Why I don’t recommend dollar cost averaging. What financial independence looks like and how to have your money support you. What the 4% rule is and how to use it to safely spend your wealth. The truth behind Social Security. A Case Study on how this all can be implemented in real life. Don’t let any of this intimidate you. Those that have gone before you say: “….in his patented no-frills and often humorous style, JL makes it both approachable and simple. And powerful.” “…effective message told in a visual, funny style.” “…a refreshingly unique and approachable take on investing.” “JL Collins has the gift of making boring financial concepts funny and interesting.” “Instead of esoteric equations about measuring a stock's alpha and comparing it to its beta, he lights up the campfire and starts telling stories.” Enjoy the read, and the journey!

Reddazon may receive an affiliate commission if you make purchases on Amazon.com through this site. Thank you for using these links to support Reddazon.

J L Collins

Reddit Posts and Comments

0 posts • 47 mentions • top 44 shown below

r/financialindependence • comment
30 points • aMinnesotaBro

Highly recommend this book: https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926/ref=sr_1_3?crid=16G05A2TUTE43&keywords=simple+guide+to+wealth&qid=1577992082&sprefix=simple+guide%2Caps%2C169&sr=8-3

r/wallstreetbets • comment
6 points • ChemStack

This is not the place you learn from. https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926 This was my starting point

r/Fire • comment
3 points • tlaxcallan

The Simple Path to Wealth. The Simple Path to Wealth: Your road map to financial independence and a rich, free life https://www.amazon.com/dp/1533667926/ref=cm_sw_r_cp_api_i_mqczEbEKZ7174

r/investing • comment
2 points • wolley_dratsum

Buy yourself a holiday present and read this book, it will explain the concepts I’m suggesting and make you wealthy one day.

Best of luck!

r/NSFWIAMA • comment
1 points • Passwordistaco511

https://www.amazon.com/dp/1533667926/ref=cm_sw_r_cp_apa_fabc_X6wXFbRRPZFXB?_encoding=UTF8&psc=1

Probably best book I've read on finance. Well worth it.

So what are you doing now that you're bored?

r/DaveRamsey • comment
1 points • shandygaff

I would really encourage you to listen to (or read, but he is a great narrator) this book: https://www.amazon.com/dp/1533667926/ref=cm_sw_r_sm_apa_fabc_baFVFbFGFP7BW

It's a very easy book to understand and it walks you through why it makes sense to invest in the stock market and how to do it with much, much, much less risk than the way those you are talking about did. I think it will make you understand and feel much more comfortable in investing as a path to a secure retirement.

r/fatFIRE • comment
1 points • boringtobenormal

Genuinely curious if you’ve heard of or read this book and what your thoughts are on it? https://www.amazon.com/dp/1533667926/ref=cm_sw_r_sms_awdb_btf_t1_5mOsFbJ8K65MD

r/smallbusiness • comment
1 points • mechanon05

I second this idea. Buy Vanguard index funds. This is a great book on why you should do this instead of hiring a money manager.

https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926/ref=sr_1_2?keywords=the+simple+path+to+wealth&qid=1581542911&sr=8-2

r/personalfinance • comment
1 points • GlowingOctoNinja

This book has some excellent advice: The Simple Path to Wealth

I wish I'd discovered it when I was 15. It's a quick read, and will teach you about the stock market and compound interest. Understanding compound interest will allow you to roughly double your investment every 10 years, without any work.

r/AskWomen • comment
1 points • LBears

I've followed Dave Ramsey's teachings for over 10 years, so I started there. Which I know he can be pretty controversial on Reddit, but I think the general idea of his teachings are very sound and a great starting off point. Also currently reading the book The Simple Path to Wealth: Your road map to financial independence and a rich, free life. It is a great book and breaks everything down into stuff a "normal" person can understand. He also touches on real estate, although I disagree slightly with him on that but that's my personal opinion as I do invest in property. Investing isn't really as difficult as people try to make it seem. I think it can be overwhelming because there are all these different types of stocks and different avenues you can take to invest, but it is all actually relatively simple once you learn the terminology. I think that's what always intimidated me was the words I didn't know and was too afraid to ask what they meant.

r/AskMen • comment
1 points • araq1579

hey dude, I read The Simple Path to Wealth by JL Collins it was recommended by several financial advice subreddits. Highly recommend you read it! It's a great primer on solid retirement advice.

r/StockMarket • comment
1 points • bbcakes413

Don’t get a broker, fee isn’t worth it. At your age just stash it all in a low cost index fund or index etf (VOO or VTI would be great, via vanguard). Stick it in there and forget it, not the kind of thing you check every day, it’s a long term investment in the overall US market.

I wish I had read this at your age: The Simple Path to Wealth: Your road map to financial independence and a rich, free life https://www.amazon.com/dp/1533667926/ref=cm_sw_r_cp_api_i_AfccEbHNE976B

r/MGTOW • comment
1 points • Haywood_Jablomie42

Here's a great starter book.

https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926

r/Omatalous • comment
1 points • Talousviisas

Jos haluat vähän kattavamman vastauksen, miksi juuri tämä ajallisesti hajautettu vähäkuluisiin indeksirahastoihin sijoittaminen on niin hyvä vaihoehto, niin voin lämpimästi suositella tätä kirjaa:

https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926

Älä välitä vaikka kirjan nimi ja kansikuva eivät ole maailman parhaimmat. Kymmenistä lukemista sijoittamisen perusopuksista tämä on mielestäni paras.

r/personalfinance • comment
1 points • pineappleking78

Read The Simple Path to Wealth by JL Collins The Simple Path to Wealth: Your road map to financial independence and a rich, free life https://www.amazon.com/dp/1533667926/ref=cm_sw_r_cp_api_fabc_-tcWFbVAZ0FEF

r/personalfinance • comment
1 points • 2wheeloffroad

Congrats on getting sober. You have a good nest egg. More than most.

This is the book I recommend. Simple, basic, and easy to read. Good to read no matter what you do. Investing does not have to be complicated.

The Simple Path to Wealth: Your road map to financial independence and a rich, free life

r/IWantToLearn • comment
1 points • theflyingrev

I’ve read probably 10 books on the topic and engaged in day trading, swing trading and regular trading, as well as investing in silver.

The one book you have to read is

The Simple Path to Wealth: Your road map to financial independence and a rich, free life https://www.amazon.com/dp/1533667926/ref=cm_sw_r_cp_api_i_CNzLEbNJMEPAX

It is brilliant and true.

Second, use Robinhood for trading. It’s free and zero commission. So you can get started investing right away

r/personalfinance • comment
1 points • ClanSalad

Congratulations, you are doing amazing. I highly recommend the good information you will get in r/personalfinance, but you might also want to start by reading some of the great books for beginners. For example, I highly recommend something like The Simple Path to Wealth. It helps to have a good foundation in financial literacy so that you can sort through all of the good and bad advice you will get over the years.

I will offer just one opinion on your situation: pay off your student loans first (after you fully get the employer match to your 401k, which you are). That's guaranteed money and your private loans have a pretty high interest rate.

r/Corvette • comment
1 points • DicabodCrane

Kudos to you taking the time to give sage advice to this young man. People don't appreciate the time it takes to respond like you have, and to dedicate that time to perhaps changing the life of a stranger is a good, but often thankless deed.

I'll jump on the good deed train and offer to send OP this book as a gift if he's interested in setting himself up on a responsible life path. Just PM me where to send it, or i can email it in digital form.

https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926

Good luck to both of you, whatever you choose to pursue in life.

r/leanfire • comment
1 points • Fuxwiddit

The easiest answer is invest in an all-market ETF and never take out your money. If you're adding in $2500 to $3000 a month into this (or even half of that) you'll be a millionaire in 15 years or less.

I highly recommend reading this book, The Simple Path to Wealth - it will change your perception of investing from gambling into saving while earning interest passively.

r/Entrepreneur • comment
1 points • davidt24

Vanguard Mutual Fund. Like VTSAX. Read the book The Simple Path to Wealth.

https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926

r/MurderedByAOC • comment
1 points • sltkr

If you're interested in learning about investing in index funds as a way to achieving financial independence, I would recommend reading The Simple Path to Wealth by J. L. Collins (especially if you are American; the book references a few American topics like 401k's, though most of the content is applicable to a global audience). It's a relatively short book that covers the basics of index fund investing (both the "why" and "how") without being overly dry or getting lost in details.

On Reddit, there is /r/financialindependence, but Reddit being Reddit, people can get a bit silly there.

r/financialindependence • comment
1 points • alexander_zachary

Time is on your side. With prudence and compounding, you're well on your way to being FI at a relatively young age.

I second the notion -- invest in yourself. Think about acquiring skills that will provide increasing income for you.

In addition to that, if you want a good place to start stashing away your current income, little by little, year after year, may I suggest Vanguard Index funds? Here's a book I found so helpful:

https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926

r/FinancialPlanning • comment
1 points • 35fi_throwaway

I'd recommend the Simple Path to Wealth by JL Collins. He is big in the FI/RE community, but for normal people he is a bit extreme (recommends saving up to half your income). He gives the advice a "rich old uncle" would give a young couple.

https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926

r/personalfinance • comment
1 points • snuka

Fantastic! Max out your 401k and traditional IRAs and invest the rest in a taxable brokerage account. You are off to a phenomenal start (financial job?) but you can continue this trend by not succumbing to lifestyle creep (the more you make the more you spend) and investing for your future. I wish this book was around when I was just starting out. It doesn't matter how much you make, it matters when you can choose to do whatever you want to do. Take a look here when have some spare time.

https://jlcollinsnh.com/stock-series/

Simple Path to Wealth

r/personalfinance • comment
3 points • mav3rick25

I strongly recommend against using financial advisors. See https://jlcollinsnh.com/2012/06/06/why-i-dont-like-investment-advisors/.

If you do get a financial advisor you better make sure they are a fee-only fiduciary. Otherwise, I guarantee you'll get steered into horrible high-free funds that will rob you of a significant percentage of your returns.

Instead, pick up a copy of https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926/ref=sr_1_1?dchild=1&keywords=jl+collins&qid=1597178073&sr=8-1, learn that managing your own investments is very easy, and have the peace of mind KNOWING that you have your own best interests in mind.

r/financaspessoaispt • comment
1 points • ORoxo

No teu caso, o primeiro passo - e o mais importante - é estancar a hemorragia. Presumo que a impossibilidade de mexeres na conta do BPI se deva ao facto de teres contratualizado um crédito à habitação ainda a decorrer. Assumindo que isso é verdade, é tratar de trocar todas as restantes por ofertas melhores.

O Bankinter, particularmente para o teu perfil de investidor, que me parece extra-defensivo, é uma boa opção se tiveres 5k€ que possas depositar e deixar "parados". No entanto, não vejo vantagem em abrir duas. Acarretará um esforço da tua parte para transferires mensalmente 800€ para cada uma, sem benefícios.

Muitas das vezes, mais é menos. Isto é, quanto mais "simples" for a estrutura (neste caso, leia-se contas por gerir) menos será a probabilidade de ocorrência de erros (leia-se pagar comissões desnecessárias porque não transferiste o valor mensal que deverias ter efito, por exemplo).

No que toca aos produtos financeiros que detens, vão ao encontro daquilo que é o investidor típico português - o que não é um elogio. Procura informar-te antes de descartares opções.

A título de exemplo, tu mencionas que bonds não são para o teu perfil. Contudo, bonds, também conhecidas como obrigações, são tipicamente o produto de excelência para alguém que não quer correr muito risco - só por aí dá para ter uma ideia de quão desajustada é a visão que tens.

Produtos com capital garantido, no momento em que vivemos, com taxas de juros historicamente baixas, são suicídio financeiro. Se tiveres em consideração a inflação, é bastante provável que estejas a perder dinheiro a cada ano que passa. Não será esse o verdadeiro risco comparativamente ao mercado accionista que gerou retornos médios de 7-8% nos últimos 90 anos (ainda que o seu valor possa flutuar muito mais no curto-prazo)?

Como disse, o principal foco neste momento deve ser reduzir os gastos desnecessários que tens com as contas que mencionaste- Não obstante, aconselho-te vivamente a ires lendo sobre o assunto, de forma a que possas compreender um pouco melhor como deves investir.

A r/literaciafinanceira é uma comunidade semelhante a este, mas com muito mais recursos que poderás explorar. A wiki reune tudo o que são os recursos essenciais para alguém que está neste momento a começar. Caso tenhas facilidade em ler em inglês não consigo deixar de te recomendar este livro. É um must na área e uma ponto de partida para quem está a começar.

Boa sorte!

r/dividends • comment
1 points • AlwaysHavingFun2020

Looks to have a bunch (1300) of 5 star reviews on amazon. Thanks for the heads up!

https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926

Maybe we should all do a favorite book list post!

r/Fire • comment
1 points • LiviWithLess

Hey! I ran the numbers you listed and this is what I came up with.

With your current expenses, you need $1,044,525 (with 4% rule) or $1,378,773 (3% rule) to retire. With your current income, you can reach the first number by 2035 (age 52) and the second by 2038 (age 55).

As for investing, check out this flowchart for where you should invest your money. As for what to invest it in, either read The Simple Path to Wealth by J.L. Collins or just go all in VTSAX if you are really overwhelmed.

r/investing • comment
1 points • piglizard

forget all that- just read the Simple Path to Wealth: https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926

r/personalfinance • comment
1 points • KReddit934

The book A Simple Path to WealthA simple Path to Wealth would be a great place to start.

See also the Bogleheads at https://www.bogleheads.org/wiki/Getting_started

r/GetMotivated • comment
1 points • donmcde

The Shockingly Simple Math Behind Early Retirement : Blog post explaining the math behind FIRE (it's not complicated)

The Simple Path to Wealth : book written by former investment broker. The simpler your investments and the less you mess with them, the better.

r/investing • comment
1 points • nuggyfreshy

Hey congrats on making this decision. I learned a lot through this guys blog. He initially started it as letters to his daughter but ended up writing a book and creating a blog. The book is amazing. Check it out. Have learned so much and also the simplicity of a few vanguard funds. https://jlcollinsnh.com/stock-series/ And the book I recommend The Simple Path to Wealth: Your road map to financial independence and a rich, free life https://www.amazon.com/dp/1533667926/ref=cm_sw_r_cp_api_i_dWusEbWVG8DV0

r/personalfinance • comment
2 points • SeanVo

Congratulations! Things to consider...and they would vary depending on if you're talking about $200,000 or $2 million.

Don't make any decision quickly other than the Vanguard account mentioned below. Wait months to a year to figure out a house to buy.

If you do buy a house, buy one that is below what you think you can afford. People that come into a lot of money (young professional sports players as an example) go out and buy a $2M house. All is well as long as they continue to make big bucks. Someday that gravy train ends and now they can no longer afford the $50,000 a year in property taxes and other expenses of owning an expensive place.

College is great if it leads to skills that are desired in the marketplace. Technical college may be just as helpful and possibly more enjoyable.

A couple of my wealthiest friends (millionaires) buy used cars. They're wealthy partly because of that mindset. Warren Buffett (super wealthy guy) was said to still drive an old pickup truck and live in the same house he has for decades...and he has billions.

Watch out for what this does to your relationship with family and friends. Many lottery winners have had their lives ruined by what happens when they fall into money. Many friends/family want a handout and feel entitled. Consider donating a portion of your income each year to charity.

Invest as much of it as you can for the future. You don't need a financial advisor (who would really enjoy taking 1 to 2 percent of the amount you invest with him/her each year). Although stopping in for an hour or two with a "fee only advisor" might help. Just be careful...there are many people that will want to get their hands in your pockets for a share. My suggested initial investment plan: Open up accounts with Vanguard. First open up a Federal Money Market fund, then start funding a Roth IRA Brokerage Account. You can also open up non-retirement investment accounts to max out your future. Invest half of what you plan to now, the other half in a few months. That may protect you from a sudden downturn in the market. Others say just invest what you're planning to invest asap. Either way, invest in a low cost index fund or the ETF (exchange traded fund) equivalent. At Vanguard that would be the "Total Stock Market Index" symbol VTI. Then don't panic sell if/when the market falls a bit. That's the time to invest more. They'll walk you through it if you call. Fidelity is also very good. I prefer Vanguard for various reasons. Depending on your age, you can also consider a target retirement fund. At 31 you have a long road ahead of you before retirement (30+ years). You need to have the money working for you growing in the market for that time. When you get older (in your 50's) then start to balance a portion more conservative investments (some bond funds) to protect from any big downturn in the market.

There's a decent book to read on investing with really good easy to understand advice for kids through older adults. The Simple Path to Wealth by JL Collins. https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926

Here's an excellent road map for managing a windfall. https://www.bogleheads.org/wiki/Managing_a_windfall#:\~:text=The%20National%20Endowment%20for%20Financial,treasury%20bills)%20for%20one%20year.%20for%20one%20year.)

Congratulations. Thank God above and ask for wisdom along the way.

r/eupersonalfinance • comment
3 points • yellowsnake019

degiro or interactive brokers for buying low cost globally diversified etfs is what most people in the euFIRE community use. check if they are available in your country and whether accumulating or distributing funds fit your tax situation better. non-us investors buy ETFs instead of US index mutual funds because of how they are regulated for non us investors. ETFs are just as good if not better in many cases with some slight differences like fractional vs whole shares.

for accumulating funds: iwda&emim with 90/10 split or vwra for total market annual return of 7% adj. for inflation over the long term generally accepted as the best option. for distributing funds vwrl is the most common.

be sure u can hold these funds at least 10-15 years otherwise better to keep short term money in e.g. a bank.

read the simple path to wealth by J.L Collins it will be the best investment money can buy assuming your are new to FIRE

5% rule is good starting ballpark to measure renting and investing stocks vs buying a home. also remember owning a home is always extra work and never passive unlike diversified etf investing. managing rental units becomes at minimum a part time job unless you fully outsource it which makes your returns laughably low compared to equities long-term, unless of course you find crazy unicorn deals which requires a ton of effort and is never guaranteed in the first place.

home is also illiquid and not very diversified compared to global etfs. ull be binded to a location mentally which can seem crippling at a young age which to me is why I wont be owning a home until Im sure I will settle down somewhere for multiple decades and I´m already financially independent from stock portfolio making the real estate just a slight added form of diversification.

dont let anyone tell you owning a home is a must especially banks that make all their money lending mortgages and people who dont know any other investment than homes. that is utterly complete bs.

r/financialindependence • comment
1 points • FIContractor

The FAQ should get you started. The JL Collins Stock Series would be another good place to start (or the book The Simple Path to Wealth by the same author which is basically the stock series by a little better thought out thanks to the editorial process).

r/IBEW • comment
1 points • BoeufSupreme

If you're starting at 18, it shouldn't be difficult at all to be able to retire by 55. Start getting educated on money, financial planning and investing. Make smart choices. Don't buy a big ridiculous truck and a fishing boat. Don't marry someone who is going to spend all your money while you're at work every day (I see this one a lot). Here are some resources that will help, if you're interested:

r/financialindependence

Mr. Money Mustache Blog - I know the name is goofy, but there really is some excellent information here.

The Simple Path to Wealth by J L Collins

r/DutchFIRE • comment
2 points • Glorian57

Allereerst gefeliciteerd 1M in savings bij elkaar gewerkt als muzikant, heel knap!

Een paar suggesties op basis van je verhaal.

Stap 1; lees je verder in. Hoe meer je zelf weet hoe beter je beslissingen kunt nemen over je stappen naar FIRE. En hoe beter je weet waar je in investeert en wat dit kost. NL:https://www.financieelonafhankelijkblog.nl/financieel-onafhankelijk-in-nederland/ EU:https://indexfundinvestor.eu/ USA:https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926

Stap 2; als je echt graag een eigen huis in NL wilt koop dan een courant huis van max 300-400k, doe het anders niet. Ik zou dit alleen doen als je er meer dan 50% van de tijd bent. Maar goed dat is natuurlijk iets waar je zelf een afweging in kan maken.

Stap 3; voor beleggen geldt lage kosten en breed spreiden helpt om een goed rendement te realiseren op lange termijn. De beste mogelijkheden in Nederland vind je hier https://www.reddit.com/r/DutchFIRE/comments/flc6d1/all_world_index_portfolios_en_broker_kosten_2020/

Stap 4; breng je inkomsten en uitgaven in kaart. Bepaal wat je per jaar denkt nodig te hebben om van te leven als je FIRE bent. Wanneer je FIRE wilt zijn in NL kan je hier je hier berekenen wat je nodig hebt: https://www.dutchfirecalc.nl/

Stap 5; begin met investeren. Meesman is een goed startpunt om simpel en snel te beginnen. Indexfonds Aandelen Wereldwijd Totaal. Kies een bedrag wat je per maand wilt inleggen. Neem een bedrag waar jij je oké bij voelt. Je kan het altijd verder opbouwen. Mijn ervaring met beginnen met beleggen is dat het wat tijd kost om er aan te wennen in tegenstelling tot sparen.

Succes.

r/ReptiloidsLeague • comment
1 points • empleadoEstatalBot

> Каждый чистильщик обуви на Уолл-стрит знает, что чтобы заработать много денег надо покупать дешево и продавать дорого. Но как угадать удачный момент для покупки? Обратимся с этим вопросом все к той же гипотезе эффективного рынка. Если бы кто-нибудь умел предугадывать хороший момент для покупки или продажи активов, то он смог бы обыгрывать рынок. Но это ведь невозможно! Так что же нам делать? Правильный ответ: использовать ребалансировку. > > Давайте представим, что у нас есть портфель, состоящий из двух акций А и Б. Акция А стоит $10 и акция Б стоит $10. Мы решаем, что в нашем портфеле этих акций должно быть поровну. И вот мы вкладываем наши первоначальные $100 и покупаем 5 акций А и 5 акций Б. Через какое-то время цена акции А падает до $5, а цена акции Б вырастает до $15. То есть теперь у нас есть 5 акций А общей стоимостью в $25 и 5 акций Б общей стоимостью в $75. Со следующей зарплаты у нас появляется еще 100 долларов, которые мы хотим добавить в наш портфель. Как же лучше всего это сделать? > > Лучше всего в данном случае провести ребалансировку портфеля и вернуть соотношение акций к изначальному отношению стоимостей 50% на 50%. Мы покупаем 14 акций А по $5 и 2 акции Б по $15. Таким образом у нас теперь 19 акций А общей стоимостью $95 и 7 акций Б общей стоимостью $105. Мы привели портфель к соотношению стоимостей 47,5% к 52,5% — то есть почти поровну. Предположим, что теперь акция А обратно подорожала и снова стала стоить $10, а акция Б подешевела и стала стоить тоже $10. То есть цены обеих акций вернулись к изначальным. Сколько же теперь будет стоить наш портфель целиком? Давайте посчитаем: у нас 19 акций А общей стоимостью $190 и 7 акций Б общей стоимостью $70, что в сумме дает $260. Так стоп, мы же вложили в этот портфель только два раза по $100, почему же теперь он стоит $260? Потому что мы купили побольше акций А, когда они стоили дешево, а потом подорожали. И мы не очень сильно вложились в акции Б, когда они стоили дорого, а потом подешевели. > > ### Реинвестирование дивидендов и сложный процент > > Даже если мы будем применять ребалансировку, доходность нашего портфеля все равно будет невелика и составит всего 4-8% годовых в долларах. Как же мы можем разбогатеть, получая такую маленькую доходность? Очень легко! В этом нам поможет сложный процент. > > Если мы будем реинвестировать все получаемые от акций дивиденды и все получаемые от облигаций купоны обратно в портфель, докупая на эти деньги дополнительные ценные бумаги, то стоимость нашего портфеля будет увеличиваться не линейно, а экспоненциально. > > Например, если у нас есть некий портфель с доходностью 5% в год, то при реинвестиции полученного дохода обратно в портфель наш капитал удвоится не за 20 лет, а всего за 14.5 лет.
> За 30 же лет наш капитал увеличится в 4.3 раза. Это и есть магия сложного процента. А если мы к тому же будем ежемесячно довносить дополнительные средства в наш портфель, то рост нашего капитала будет идти гораздо более быстрыми темпами. > > А теперь наконец-то перейдем к главному вопросу поста! > > ### Как программисту стать долларовым миллионером > > Предположим у нас есть Вася. Живет Вася в Киеве и работает он там сеньор-программистом за $4000 в месяц. С этих денег Вася вполне свободно может откладывать по $1500 в месяц на инвестиции. У Васи есть портфель, который на длительном периоде времени имеет ожидаемую доходность в 4% годовых. Все выплачиваемые Васе дивиденды, он реинвестирует обратно в свой портфель. Таким образом за 30 лет Вася становится обладателем состояния, размером более миллиона долларов. Простая математика и никакой магии. > > Image > > ## Заключение > > В своей статье я смог рассказать далеко не все о пассивных инвестициях. Если вы хотите знать больше, я советую почитать вам прекрасную серию обучающих статей Сергея Спирина, в которых очень хорошо расписаны все аспекты инвестиций, а также его магнум опус «Портфель лежебоки». Если вы хорошо владеете английским, то я советую прочитать прекраснейшую книжку Simple Path to Wealth. Удачи вам и финансового благополучия!

r/financialindependence • comment
1 points • FirePit45

Check out the FAQ and Books sections for some really good resources.

Quick rundown:
- Figure out how much you really need. 80K/year seems like an arbitrary number. The best way to do this is to figure out your real expenses. You can do this on the macro level by tracking how much you saved each year vs. your income, or at the micro level by tracking things on a spreadsheet, Personal Capital, YNAB, etc.
- Start maxing your 401K. For your goals there is zero downside. You will free up more money now to invest.
- Consider being your own investment advisor. There are a lot of good resources in the FAQ and Books section of this sub, but this booklet is free, and this book is based on the free Stock Series on JL Collins' blog.
- Not sure who or what your investment agent is, but consider firing them once you read a couple of the resources above. It is incredibly unlikely they will give you value-added that is worth what they charge.
- Try to fight lifestyle inflation. Consider keeping your current home (and refinancing at the current ridiculously low mortgage rates) unless it affects your life negatively in some way.
- Save save save. Once you max your 401K, start dumping everything into index funds as listed above.
- Some people really like real estate as a path to financial independence, and some don't like the hands-on nature of it. If it's something you think you would enjoy, start researching it. I'm not an expert in this field, but Bigger Pockets is one that a lot of people like, and there are subreddits dedicated to this.

r/BEFire • comment
1 points • Virac0cha

On Tuesday 20 of October we have a live event with JL Collins, the author of The Simple Path to Wealth, one of the go-to books for the FI and index investing communities.

JL Collins is also very famous for his Stock Series and is sometimes referred to as the godfather of FI 😊

You can join for free and ask him questions! More information and free registration here.

And tomorrow (Tuesday 13 of October), we have a community meetup where we will talk about the various index investing brokers and platforms available to us in Belgium. This is usually quite useful to very beginners. Free to join as well!

Information on Facebook: https://www.facebook.com/events/359242198771998

And on Meetup: https://www.meetup.com/FIREBelgium/events/273691905/

r/Omatalous • comment
1 points • maukka

YNABin perustajan kirja on hyvä alustus budjetointiin, joka on kaiken perusta:
Jesse Mecham: You Need a Budget

Omia suosikkiperusteoksia henkilökohtaisesta taloudesta ja varallisuuden kerryttämisestä:
J L Collins - The Simple Path to Wealth

Ramit Sethi - I will teach you to be rich

Thomas J. Stanley - The Millionaire Next Door

Thomas J. Stanley - The Millionaire Mind

Vicki Robin - Your Money or Your Life

Ja velkahelvetistä selviämiseen tuo jo mainittu
Dave Ramsey - Total Money Makeover

r/FinancialPlanning • comment
1 points • Read_It1200

>Why is everyone on Vanguard?

Honestly, because of John C. Bogle, founder of Vanguard. His investment philosophy, his creation of the first index fund, his insistence on reducing broker fees, and to have Vanguard be customer owned?!?! He's a real fighter for the individual investor! But that was a while ago and now other brokerages have competitively lowered their fund fees with similar performance.

>They all seem similar and Fidelity actually has some great funds that beat the S&P. Any thoughts?

You're actually correct. For me, the biggest draw towards Fidelity was the relatively lower (zero) expense ratios and no minimums to invest in their funds. Plus, if I want to use my "fun money" for day trading, ie. Forex, options, etc...Fidelity has that too and much more. Fidelity is basically a "one stop shop" for investments.

>Haven't invested in mutual funds yet, still learning and collecting info.

Here's my John Bogle-styled retirement portfolio:

Roth IRA = FZROX [90%] + FXNAX [10%]

That's it! Simple setup for aggressive growth.

To help you along in your learning, I recommend reading, "The Simple Path to Wealth" by JL Collins. Also, here's a few links for you to nibble on.

https://www.bogleheads.org/wiki/Fidelity

https://ziefi.com/wiki?name=FidelitySetup

https://ziefi.com/wiki?name=FXAIX

Hope this helps!