I have read the Simple Path To Wealth 3 times and will probably read it many times more. I have also suggested to many young people that they should read The Simple Path to Wealth. I WHOLE HEARTEDLY support and endorse what Collis espouses. Living below your income, staying out of debt and investing at least 50% of your income as early as possible is the perfect formula for attaining F you living and financial independence.
JL Collins is brilliant! I wish I could have learned these lessons when I was 22. There should be a required one semester course for high school seniors about personal financial investing and savings. JL Collins could write the synopsis for the course. EVERYONE needs to learn these things. Learning about Chaucer and Shakespeare in high school did nothing to prepare us for life.
I think we’re already seeing that swing back toward active investing. I thought I was doing really well with it until very recently. I was doing unbelievably well up until February when things turned. I’m looking into making the full switch to JLs strategy now. Luckily I’m only 31 so I didn’t waste decades doing this.
I’m using my FU fund right now to take a work break. I’m still earning money via equity growth and stock growth although I’m not using it now. I’m making just as much a month via those financial vehicles. Time rich is my self love language.
This is great thank you! I’m a recent grad and not making much but saving 15% currently and investing most of that (stocks, bonds, 403(b), Roth IRA). I have reduced my cost of living and I am working towards finding a higher paying job so I can save 50% and invest more. But until I get that job I am also working on curbing bad spending habits primarily around dining out by learning how to cook more! Thanks for the insight JL you are very direct and honest and I appreciate it.
I use credit cards to make my purchases for the benefit of cash back, and immediately send a payment. This way I can earn cash back that then goes to my brokerage account.
It's unfortunately due to both human psychology and survivorship bias, the second being more prevalent in my opinion. Folks who make it big tend to show off and get seen/heard. Those who lose money typically keep it to themselves. As such, we usually only ever see the victors when in reality, they are the vocal minority of options traders.
David, thanks for asking! We cannot give specific recommendations or advice, but what we can say is that HSAs (as they are currently structured) are a very interesting account type with the notorious "triple tax advantage." The money you put in is deductible, money grows tax-free (no tax due on selling an appreciated asset), and withdrawals for medical expenses are tax-free. Once you pass a certain age, you can withdraw money penalty-free for non-medical purposes, but it will be taxed as ordinary income. In this fashion, it works almost exactly like an IRA. A neat point to make is, as per current tax codes, you can "reimburse" yourself for a medical expense made in the past (but not incurred prior to establishing your HSA). As long as congress doesn't make any changes, you can collect receipts and then withdraw to reimburse yourself at a later date. This makes them especially attractive to those seeking an early retirement. HSAs are not available for everyone; you must meet certain criteria, especially having a high deductible health insurance plan, to be eligible. As always, do your own research and due diligence before engaging in any financial product or service.
Wow!! I'm saving and investing 65% of my monthly income. I am in a total different mindset after educating myself over the past decade or so. This is possible because I don't have any debt including a paid off mortgage.
![JL Collins on the What, Why, and How of Financial Independence [Ep.48]](/img/logo.svg){kind=logo}
