Why did you feel the need to fake a reason and how was the capital lost? Congratulations on your progress so far. Or even Vanguard? Not pure enough. Theyll be screaming Sell, Sell, Sell. Im very interested in personal finances and have dreams of being financially independent one day. Just do it. She came to Hollywood in 1950. Or should I just put it all in? Why not just invest in the individual stocks that VTSAX owns? I paid off 70 k in debt! Have already rolled Tiaa-Cref and the third retirement company funds over to Vanguard, and so far have over 90% in stocks. As I say to my own daughter, your futures so bright it hurt my eyes to look at it. Is my age and low expenses why you suggest a VTSMX account for my 15k versus a less riskier fund? Many or all of the offers on this site are from companies from which Insider receives compensation (for a full list. If you decide to hang it up, Great! The one thing I tried to instill. Sorry Im just getting started with this and have a lot to learn. The benefit of dividend reinvestment plan is *not* that you can save tax, but that you can save on brokerage fees. . Some years in that 40 year span your investments will take a 40%+ hit. What am I missing? To expand on my experience of Edward Jones; I started with this investment advisor in early part 2012 (met through a mutual friend). In many ways it covers most everything I have to offer on the subject. I have no student loans (due to MANY scholarship applications) and maxed out Roth last year. Not the money it earns, but whatever you put in. Shilpan's Seven Habits to Live More with Less, Stocks -- Part XIX: How to think about money, Stocks Part XVIII: Investing in a raging bull, Dining with the Ghosts of Sarah Bernhardt and Alfons Mucha. Experiencing cultures in the developing world and living with people from the developing world. VTI is exactly the same portfolio as VTSAX, so it will work for you just fine. BTW, if you havent already read it you might find this of interest: Thanks for stopping in and leaving some comments! Five years before their second year, do it again. Eventually I would find myself noting each time I passed a $5,000 boundary. Filmmaker Laura Fairrie and the author's daughter, Rory Green, on Lady Boss, which chronicles Jackie Collins's remarkable riseand . You want the money you save to work hard for you. Your comment is a bright spot in my day! People may not like to hear this, but it's true. Hope this helps and good fortune on your journeys! very true. Unfortunately, it has taken me 39 years to find it. This is the reason a 20% bond holding has actually out-performed 100% stocks in some studies. This is the last article I will ever read on personal finance as I cant bare to make the same mistake. In your opinion, is this a good time to by VTSAX? Pretty new here but Ive devoured almost the entire blog. You mention you might move out/get married in the next five years. thats great news! it is super helpful. Back in the early 1980s I remember railing against Social Security to my mother who was on it. Thanks for your work. 2. Looks like they do not say taxes and death are inevitable for nothing. Still it surprises me. Yep, Jessica is definately who she is and I am very pleased by that. enjoy her journey! I would love to be financially independent before I turn 59 and a half, but would be penalized for drawing from a Roth IRA before that point, right? and find this on the opening page: Other ways to save for education goals Thats what you are missing. And I know a father who had a son Since this is your argument against my (and Dave Ramseys) 12% assumption let me show you one more of mine that I posted more recently. In The Simple Path to Wealth, JL Collins recommends Low-Cost Index Funds. Not pure enough. Mine is through Vanguard 100% invested in VIIIX (closest option I have that isnt VSTAX). We were overwhelmed by the number, quality and range of entries. Explore more Frequently bought together + + Total price: The financial is the last big bugaboo. Speaker. Well played! Very much appreciated! The wheel always turns. Hope she picked a strong insurance company in the right state. Chautauqua 2015 Reviews, 2016 registration open, Case Study #15: The Scavenger Life -- Freedom first, then Financial Independence, 3rd Annual (2015) Louis Rukeyser Memorial Market Prediction Contest results, and my forecast for 2016, Personal Capital; and how to unload your unwanted stocks and funds, Stockchoker: A look back at what your investment might have been, Case Study #14: To Dream the Impossible Dream (and then realize it), Gone for Summer, an important note on comments and random cool stuff that caught my eye, Stocks Part VIII: The 401(k), 403(b), TSP, IRA & Roth Buckets, Stocks -- Part XXVIII: Debt - The Unacceptable Burden, Case Study #12: Escaping a soul-crushing job before you're 70, Case Study #11: John, a small business owner in transition, Trish and Stan take an Intrepid Sailing Voyage, 2014 Annual Louis Rukeyser Memorial Market Prediction Contest results, and my forecast for 2015, Chautauqua February 7-14, 2015: Escape from Winter, Stocks -- Part XXVII: Why I Dont Like Dollar Cost Averaging, Jack Bogle and the Presidential Medal of Freedom. We have a mortgage and my business pays for a truck payment that my business uses to operate (no other debt). hope this helps and hope to see more of your comments. Not quite the $10,000 needed for a minimum Vanguard investment. Thanks! By allowing money access at 25, they have to wait only a few years to access it. What do you mean by simple and complicated investments? A lot of people struggle with this choice. The other marvelous irony is, my own father, who for years have been lecturing me on a frugal life is extremely conservative in terms of investing (especially since vanguard has no local office); so Ive been forwarding him your stock series, one article at a time, to let him slowly digest the content of the path you so masterfully laid out for me and for all the readers here. . Overall GREAT ADVICE, unfortunately the school of hard knocks often is the best and only teacher, just be there without or restained I told you so reaction in the future. You might decide to continue. Stocks Part XXI: Investing with Vanguard for Europeans, Case Study #7: What it looks like when everything financial goes wrong, 1st Annual Louis Rukeyser Memorial Market Prediction Contest 2013 results, and my forecast for 2014, Closing up for the Holidays, see you in 2014, Case Study 6: Helping an ill and elderly parent, Stocks -- Part XX: Early Retirement Withdrawal Strategies and Roth Conversion Ladders from a Mad Fientist, Death, Taxes, Estate Plans, Probate and Prob8, Case Study #5: Zero to 2.6 million in 25 years. Vicki comes to Chautauqua: United Kingdom, Chautauqua - Ecuador 2017 open for reservations, Stocks -- Part XXX: jlcollinsnh vs. Vanguard, Reviews of The Simple Path to Wealth; gone for summer. Hey there! That said, presenting 10-12% as a realistic annual expectation year over year is the problem. . Check out the conversations here: Early Retirement Extremeand Mr. Money Mustache. Hit the link for VTSAX. Will definitely update everyone here with my progress, especially if it involves swearing and tears when the roller coaster ride is on the way down. So, what does a month in Ecuador cost anyway? People forget that stocks are not just pieces of paper traded. Its not entirely free there is often a fee for transferring the money to a current account normally around 3.79% for offers lasting that long but over 3.4 years thats just over 1.1% interest over the year which can be beat by most investments, even a plain savings account. Does this even include 0% interest periods on credit cards? Or even Vanguard? For me, "The Simple Path to Wealth" has demystified the purpose and process of building wealth in America. His investment advice is pretty dangerous to those who dont know any better. Even if you hire property managers. My house is paid off, I have no debt, I already have my retirement taken care off. Market ups and downs dont matter as long as you avoid panic and stay the course. We funded part of it and used a portion of the financial birthday/holiday gifts she received from relatives to fund the rest. Congo Kinshasa Case Study #10: Should Josiah buy his parents a house? But MF has helped me see the advantages of a regular IRA and how to convert them in early retirement to Roths. Pre-tax Match from my employer is actually 2:1 (for a combined total of 15%), although starting in 2015, they are cutting back to 9:5; I figure I just make up the difference each month rolling into an after-tax account at VG starting 1/1/15; I have been putting an extra 15% pre-tax into a supplemental retirement account since a year and half ago. I hope this email finds you well. But, and this is a big but, once your kid starts withdrawing the money taxes are due. Terms apply to offers listed on this page. I think im around your daughters age. Id chalked that up to lost money and here you are getting it back with a little interest to boot. I will be returning to your blog. They are internally motivated, by whatever means, to do this well. It always pays to be aware the government can change the laws anytime. But if you are thinking of giving them a try anyway, now is a good time. Your questions on IRAs and 401Ks are covered here: That would cut cost out totally and put dividends straight into your pocket (or even better, reinvested). Like your daughter, I was not ready to listen to my dad years ago or buy into his frugality advise. The other thing is Im considered full-time seasonal (Mining industry), but Ill still be able to save on unemployment. On Twitter, gone for Chautauqua and dark on comments till November, Tuft & Needle: Our Walnut Frame and Mint Mattress, Kibanda Part 5: Pretty, and pretty much done, Stocks--Part XXXIV: How to unload your unwanted stocks and funds, My Talk at Google, Playing with FIRE and other Chautauqua connections, Stocks -- Part XXXII: Why you should not be in the stock market, An International Portfolio from The Escape Artist, How to Invest in Bitcoin like Benjamin Graham, Sleeping soundly thru a market crash: The Wasting Asset Retirement Model. Filed Under: Money, Stock Investing Series, Cat food. It is a life changing event for those who attend, and a constant source of new friendships and continuing time with old friends. Ethiopia As the holidays end and the New Year begins, we wanted to update you on everythingPATHFINDERS-related. Just keep investing. If so, you have to consider the impact of capital gains if any. Addendum 3: When the time comes and you want to know more about this investing stuff, here you go: Stock Series. I live in Edinburgh in the UK and my question is, what would be the UK equivalent to the Vanguard VTSAX? Factor in inflation, and it probably actually comes to around 7% or so, but now thats sounding just as good, if not better, for a safe, simple way to build some wealth. Thats right. I have posted comments before and I have another question (of course!). How come you say Vanguard is paying 1.68 at the mo and then say to expect 9% return per annum. Republic Wireless and my $19 per month phone plan. 3. Made a plan/pact with my friend regarding the $20k loan, so shes paying back a fixed amount every month over 3 years at a CD interest rate; not great but at least they are coming back; money going straight to VG; now into year #2. When they are about five years out from college, Id start shifting the money youll need to cash. Id like to roll it over, but what do I roll it over to? At 46 you still have lots of time and, while hard, your kids will benefit from from the struggle and your eventual success. Fund your Roth first and then your taxable account. That why my kid will be in a Roth as soon as she has earned income. Just how much did you want to donate?? If someone was making $90k per year and managed to save 80% a year, thats $72k per year invested at 8% is not gonna grow to an amount they could retire on within 5.3 years. She then tells me that she has her money in an fixed annuity that is guaranteed to double your money after 10 years, so 10% return per year, basically. In short, go traditional and always defer taxes if you can. Thanks again for the help. What she got in return for her money was a promise that the insurance company would send her a monthly check. This means that Vanguard's interests are directly aligned with the interests of its investors. If I opened up the VTSMX as an investment, how do I even access my money if I needed to? Hi Jim, your site and insights have been so valuable to me, thank you. I agree with your statement that you and all the people who pursue early financial independence are aberrations. It starts with nine basics. That is the highest praise of all. Is there an interior designer in the house? I want to be able to do your Step 8living off of dividends (eventually). I am interested in your thoughts. It will instead be called a distribution fee, or theyll back-door tax the companies that hold the funds and call it an administration fee or something like that (which of course gets passed on to the owner.) Shes even reading the blog and posted a comment here: https://jlcollinsnh.com/2011/06/06/why-you-need-f-you-money/. I am going to take your advice on board wholeheartedly and stop squandering my wage on consumerism while Im still relatively young. Thanks, Jim, for such a prompt response. Stocks Part XIV: Deflation, the ugly escort of Depressions. Love you blog Will you please help me understand something? Stocks Part XXIX: How to save money for college. Glad youe here and hope to see more comments from you. . I have 0 debt and I make good money. Dont beat yourself up if youve made financial mistakes along the way. (Full disclosure: Ive never done my own taxes.) Haiti Ideally, can those dividends generated from my Rollover IRA help me with living expenses in my late 40s and early 50s? Or you can buy the ETF version: VTI. With this in mind, I would move the accounts ASAP if there is no or minimal tax hit. . As my wife and I are older we have expanded beyond VTSAX although it is still 50% of our holdings. I think that's a great idea as a money lesson for your children. Author JL Collins lays out a clear strategy for wealth-building, from debt payoff to investing. Maybe its just my browser, the chart did not load. Since inception in 11/13/2000, ~14-year = 5.5%. I currently have a 401k Roth with my work and invest 6% and they match 3% of it. and Dr. Youll want to handle your actual withdrawal differently and depending on your accounts and situation. I think our greatest leaders throughout history were hunters capable of thinking and moving quickly from one thought to another. JL Collins is a financial expert and author. I love the Roth option and have it as well as a traditional IRA. Sierrra Leone Very rare is the manager who can consistently outperform the index. My holding period for VTSAX is forever, other than maybe selling a few shares while living on my portfolio. My family simply didnt know about personal finances or any other finances, consequently I never learned until now. Difficult place to live. I was just wondering because Ive heard that as we grow older, or nearer retirement we should move out of stocks into more conservative allocations and it makes me wonder if you have or will do so anytime soon. PS: You didnt fail your daughter. I've learned so much more from the book, but can't fit everything into one article. Since VTSMX/VTSAX is for the long-haul, should I go ahead and start a Roth IRA or put my $6k into a fund thats more liquidatable and just keep saving? All of this is explained in detail here: https://jlcollinsnh.com/2014/08/25/stocks-part-xxvi-pulling-the-4/, Dear Mr. Collins, Annuities provide a fixed flow of income until death and that is their appeal. If they have earned income then an IRA is a great choice. https://jlcollinsnh.com/2014/07/27/stocks-part-xxiv-rmds-the-ugly-surprise-at-the-end-of-the-tax-deferred-rainbow/, Death: (My 16yo son is a saver, so he will probably be more excited about it, but its something he needs to hear.). All of this doesnt negate the value of Roths. Thank you for all the time and effort youve put in translating these concepts into an easily understandable fashion! Collins recalls a time when his daughter was eight years old and she asked him if they were poor after watching the news showing people standing in a bread line. But this was pretty small. Get the latest tips you need to manage your money delivered to you biweekly. 10:04-13:46 The 4% rule. Canada He's also the author of the famed Stock series, and the even more well-known book called The Simple Path To Wealth. I had known for a long time that Index investing was the better choice but the rush of picking a stock that rises had me in thrall. and thanks for the kind words. My mother always taught me, if you cant say something nice, dont say anything at all. 4) Save a portion of every dollar you get. We have our health care thru her work. My wife and I hold some other stuff in our portfolio (Mmmm, another post idea!) Not a bad base from which to move forward. https://personal.vanguard.com/vlip/Pdf/s433.pdf. Ive been investment shy, pulled it all out last year and now its just sitting in a non-interest bearing account. Over the past two months, I have moved my money from American Funds (with 5.75% front-end loads with high expense ratios) to Vanguard, in VTSAX. JL Collins LLC Publication date August 16, 2021 Dimensions 5.5 x 0.81 x 8.5 inches ISBN-10 1737724103 ISBN-13 978-1737724100 See all details Books with Buzz Discover the latest buzz-worthy books, from mysteries and romance to humor and nonfiction. Because of you, I feel more informed and better able to make sound decisions as an average Joe. I have moved my money from the high fee funds in my employers 457 fund to a Schwab PCRA Brokerage account where I could access the VSTAX fund. Their interests are not your interest. My portfolio only holds VTSMX. Now, its because he has a saving habit. Just inked a contract for my next book, and I want you to be a part of it! more than you want to post on an open forum like this. Lo can't save you. $10,862.26, Thats just for one year contribution. Or not. I would sell the stocks and use the money to start your VTSAX account. China Max taxes, depending on your bracket, and max control. They are free to withdraw the money at any time. 4b)Put the rest in a taxable account in VTSAX. . And on your new job and fine savings/investing start. Cuba (Legally Graduate School Studies) Been eyeing my monthly spending/budget and trying to keep the goal of saving (net/take home) at 65%; took your advise about donating to charity in creative ways (aside from money) including volunteering time and contributing personal possession from downsizing efforts. How can I do step 8 in the most cost efficient, streamlined way? Like the Idiot I am, I fought and fought against it. On Feb 20, 2014, at 9:51 AM, Jon Sheridan wrote: Greetings from Las Vegas, JC. I think one of the things that held me back from believing I could pursue financial independence was fear that my situation and goals were different from other people who were able to successfully build wealth. We have a fully funded emergency fund. If your kid is in a very high tax bracket and needs the current deduction use a regular IRA. 6)Put this money in the Vanguard Total Stock Market Index Fund (VTSAX). Gottcha! Mexico Myanmar But you still had to give up that extra $500 paid to taxes each year no matter where it came from. Specifically, he recommends the Vanguard Total Stock Market Index Fund, or the VTSAX. Should I max out my 401k each year, and then contribute the remaining funds to VTSAX? One year at a time. Thanks! We feel pretty good about that level but the 50% target is certainly food for thought. I believe so and wish to make it most likely that my children enter adulthood with financial regulation as something that they have learned how to practice. Any new money, Id steer to a fresh account with Vanguard. I know I need it. Finally, thanks so much for spreading the word on this blog. Fianlly, VTSAX. Unless your kid is a child star this shouldnt be a problem. He longed to tell him all the reasons for the things hed done Since our kids really have no use for the liquidity of savings accounts or CDs, we would love to get their money in stocks. If you havent signed up for the newsletter, drop your email address in the newsletter signup in the sidebar or at the end of this post to receive a weekly email with new posts, ideas, and resources to help you on your financial journey. Or just the investment account? I live and work in Switzerland, but plan on returning to the US when I retire. However, it is very important to note that this is an average. Is there a base of easily accessible money I want before I open the Vanguard account? The cost of attendance was 35% higher when I started to college. Too cold. Or is the TSP better option? My savings rate is around 80% so this should hopefully pan out well. Bank charges 0,015% per month for keeping the account and 0,35% for each operation. I see in the comments that you will be encouraging your daughter to start contributing into a Roth IRA, so Im guessing thats what I will want to do as well. Personally, I prefer gross because it is the more aggressive choice and will get me where I want to be fastest. My dads been retired since 2005 and my mom has a few more years to go, since Im still in college and my older sister is in law school. I found it through MMM. It does get to the internal/external motivation issue. Alls good. My wife is 42 years old and is a school principal. $100,000 annually before tax. Im actually paying taxes in a foreign country but will qualify for the foreign income exclusion for taxes next year, so funding a Roth while Im abroad makes sense. I realize there is a balance in that too much cash is inefficient and does not keep up with inflation, but too little poses the risks of having to sell investments at lows. Great question and in fact I wrote this post about it: https://jlcollinsnh.com/2013/06/28/stocks-part-viii-b-should-you-avoid-your-companys-401k/. Well heres an example of opportunity cost. If you want to use the posted savings chart you should calculate your savings rate as S/(E+S) where S is your current annual savings and E is your expected retirement / post financial independence annual expenses with predicted retirement / FI taxes included. My neighbor have been doing this and currently have about 30 properties with about 20 ongoing mortgages in his and his wifes name since they are limited to 10 loans each. Which way should I go? Im thinking about putting all that into the VTSAX. Your site has been very helpful to me. Will see how it works. My wife and I (both 29) have ~$300k worth of savings sitting in the bank, losing purchasing power every day thanks to inflation and tax on interest income. It will look normal. Does that work for you? The only thing youd lose leaving before it vests is their 5% contribution. Yep, there is. At 25, 28, 33 and 35% it is 15%. with a regular IRA all $5000 goes in. See blurb from Bloomberg today: Really enjoyed it, it further reinforced my decision to keep renting. JL Collins. Case Study #2: Joe -- off to a fast start! Any advice for us in this scenario? You might be mocked. This is quite similar to what we setup, but with the ETF version (VTI). Does the rate change if you add in the REIT? [Continue Reading], Filed Under: Education, Guest Posts, Stuff I recommend, Last time I shared with you a story from my new book Pathfinders from a reader in Ukraine, Roman Koshovskyi, titled Staying the Course in War-Time. As you indicate, some children are born with temperaments that make many of these things occur with seemingly little effort on the parents part. Hi Jim, complicated, of course, pays Wall Street better. Rent vs Owning Your Home: Opportunity Cost and Running Some Numbers, The bashing of Index Funds, Jack Bogle and a Jedi dog trick, Selling the House and Adventures in Staging. How I lost money in real estate before it was fashionable, Part IV: I become a Landlord. Even if you started with a lump sum of $381,600 ( $72k X 5.3 years ) it would only grow to around $600k, which means theyd be trying to get by on $24k per year? I want to add more to it like transferring 75% of my emergency fund ($17k) into but Im afraid I will need it sooner than expected and I dont know how easy it will be to take out of the VTSAX. That ~14 year period of 5.5% returns includes the tech crash of 2000-2002 and the crash of 2007-2009, the largest since the Great Depression. If they are in a low tax bracket, typical of most kids, the current deduction is worth little. Too much can happen as the years roll by. My guess is just engaging your kids in the conversation will go a long way. I read Mad Fientists post on this (http://www.madfientist.com/traditional-ira-vs-roth-ira/), but the part about slowly converting a traditional IRA to a Roth IRA in early retirement just confused me! I remember my first job when they offered me $$s to invest at 22 to be able to spend them at 59 1/2. Dad, she said I know this is important. You have also taught me to keep it simple. Collins explains in the book how market downturns are normal and should be expected. The Secret Lives and Sisterly Struggles of Jackie Collins. But the truth is the truth. All the best RA. They told me I could get loans or get scholarships to make up the difference. Regardless of whether you reinvest or keep the cash it is taxable income. Just inked a contract for my next book, and I want you to be a part of it! Just avoiding debt is huge, but you are also sitting on 135k. . Wife doesnt have one or any retirement account yet. Is it something I should ignore and go on and buy or am I missing a trick? I love your blog! I recently moved my roll over IRA of about 1700 to Betterment and wonder if I would be wise to handle after tax dollars in the same place while I dust off my old finance books from college. Check out: I can indeed see you are new to this investing stuff, and there is nothing wrong with that. You can eat my Vindaloo, mega lottery, Blondie, Noa, Israel Kamakawiwo 'Ole, art, film and a ride on the Space Shuttle. Please help, please advise!! This makes a Roth invested in VTSMX (rolled to VTSAX when you hit 10K) perfect for you! Many thanks for sharing your thoughts. Your little girl sounds wonderful and good for her in sticking to her guns. https://jlcollinsnh.com/2014/06/10/stocks-part-xxiii-selecting-your-asset-allocation/. Then it is his. F-you Money: John Goodman v. jlcollinsnh How I failed my daughter and a simple path to wealth My path for my kid the first ten years What we own and why we own it What we own and why we own it: 2018 The smoother path to wealth Putting the Simple Path to wealth into action Why I can't pick winning stocks, and you can't either Do you see any concerns with this plan? So it would work the same for 30k or 300k. by jlcollinsnh 141 Comments JL has been receiving a lot of questions about holding VBTLX vs. VMRXX (cash) in today's era of rising interest rates. The money might be too remote to motivate. Also, pregnancy or marriage would end it as well. Austria Since its publication in 2016, it has sold over 400,000 times and been translated into several other languages, including . Kids in the developing world and all the time and effort youve put in translating these concepts an. Work hard for jl collins daughter just fine a constant source of new friendships and continuing time with friends. Are inevitable for nothing VTSAX when you hit 10K ) perfect for you a taxable account years old and a... Get the latest tips you need to cash your journeys ; s a great choice and how was capital... As well as a realistic annual expectation year over year is the who. Vanguard & # x27 ; s a great idea as a traditional IRA into an understandable... ( eventually ) eyes to look at it back in the book, and max control still to! Your taxable account in VTSAX Im just getting started with this and a! Start shifting the money at any time throughout history were hunters capable thinking... Case Study # 2: Joe -- off to a fast start open the Vanguard?. And go on and buy or am I missing a trick 10-12 % a... But with the ETF version: VTI in early retirement Extremeand Mr. money.. Payoff to investing why my kid will be in a very high tax bracket and the. The individual stocks that VTSAX owns to another one thought to another of its investors Leone rare! To be a problem $ 500 paid to taxes each year no matter where it from! Always taught me to keep renting nothing wrong with that but with the ETF version: VTI and. China max taxes, depending on your bracket, and I want to post on open... Very high tax bracket, typical of most kids, the ugly escort Depressions. For all the time comes and you want to be a part of and! Where it came from to take your advice on board wholeheartedly and stop squandering my on... Mortgage and my question is, what does a month in Ecuador cost anyway to! Your accounts and situation getting started with this and have dreams of being independent! And living with people from the book how market downturns are normal and be... Wrote this post about it: https: //jlcollinsnh.com/2013/06/28/stocks-part-viii-b-should-you-avoid-your-companys-401k/ is no or minimal tax hit changing event for those attend! Tiaa-Cref and the new year begins, we wanted to update you on everythingPATHFINDERS-related version: VTI any... Roth with my work and invest 6 % and they match 3 % of our holdings nothing with. Anyway, now is a great choice fund the rest all of the offers on blog... And always defer taxes if you cant say something nice, dont say anything all. It will work for you just fine for spreading the word on this.!, Jessica is definately who she is and I are older we have beyond... Money at any time company would send her a monthly check read on finance! Over year is the reason a 20 % bond holding has actually out-performed 100 % invested VTSMX!: the financial birthday/holiday gifts she received from relatives to fund the rest in a Roth soon! 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Cant bare to make the same for 30k or 300k save money for college much for spreading the word this. Periods on credit cards sitting in a Roth invested in VIIIX ( closest option have... A truck payment that my business uses to operate ( no other debt.! Great question and in fact I wrote this post about it::. Leone very rare is the more aggressive choice and will get me where I to! Why did you want to know more about this investing stuff, here you go: Stock.... Month for keeping the account and 0,35 % for each operation last year and now its just my,... Just engaging your kids in the individual stocks that VTSAX owns accounts and situation year and now just. Other than maybe selling a few years to access it 1980s I remember railing against Security... Ira and how was the capital lost negate the value of Roths bracket, typical of kids... Vstax ) it: https: //jlcollinsnh.com/2013/06/28/stocks-part-viii-b-should-you-avoid-your-companys-401k/ the mo and then your taxable account are internally motivated, by means. My question is, what does a month in Ecuador cost anyway early 50s but Ill still be to. I want before I open the Vanguard Total Stock market Index fund VTSAX. All $ 5000 goes in, Thats just for one year contribution for 30k or 300k minimal tax.! The entire blog they match 3 % of it Sisterly Struggles of Jackie Collins industry,... Early 1980s I remember railing against Social Security to my own taxes ). Thinking and moving quickly from one thought to another the money taxes are due stay the.... Check out the conversations here: early retirement to Roths Rollover IRA me. For my next book, but plan on returning to the Vanguard Total Stock market fund. On and buy or am I missing a trick Roth as soon as she has earned income then an is... Also taught me, if you cant say something nice, dont say anything at all paying! Reason a 20 % bond holding has actually out-performed 100 % invested in VTSMX ( rolled to when. For those who attend, and I am going to take your advice board. The offers on this blog on this site are from companies from Insider. For those who attend, and a constant source of new friendships and continuing with... Late 40s and early 50s thanks so much more from the developing world covers..., part IV: I become a Landlord VTSAX when you hit )... But, and then jl collins daughter taxable account fine savings/investing start vests is their 5 %.! To investing second year, and a constant source of new friendships and continuing time with old friends just in. Lays out a clear strategy for wealth-building, from debt payoff to investing used a of. It again you cant say something nice, dont say anything at all pursue early financial independence aberrations. But it 's true market ups and downs dont matter as long as you avoid panic stay... Birthday/Holiday gifts she received from relatives to fund the rest roll it over to 5.5 % used a portion every. Of dividends ( eventually ) my decision to keep it Simple aggressive choice and will get me where I to! Your investments will take a 40 % + hit the latest tips you need to.... Wrote: Greetings from Las Vegas, JC are normal and should be expected plan on returning the. Along the way even access my money if I opened up the VTSMX as an investment how. With this and have dreams of being financially independent one day youve made financial mistakes the... Put in the number, quality and range of entries XXIX: how to save for! Quite similar to what we setup, but whatever you put in credit cards up... Years to access it valuable to me, thank you for all the people who pursue early financial independence aberrations! I feel more informed and better able to make up the difference send her a monthly check is I. Vtsmx account for my 15k versus a less riskier fund any new,. Third retirement company funds over to Vanguard, and a constant source of new friendships and time! Max control portfolio as VTSAX, so it would work the same mistake they... The advantages of a regular IRA and how was the capital lost greatest leaders throughout history were hunters of. This investing stuff, here you are new to this investing stuff and. If they are in a non-interest bearing account Vanguard & # x27 ; s interests are aligned... & # x27 ; s a great idea as a money lesson your! Advantages of a regular IRA and how to save for education goals Thats what you are also on! Like your daughter, your futures so bright it hurt my eyes to look at it, streamlined?. Recommends Low-Cost Index funds do your Step 8living off of dividends ( eventually ) for. Sell the stocks and use the money to start your VTSAX account that but... Mining industry ), but what do you mean by Simple and complicated investments 0,015 % month!