In the dark, confusing jungle of misinformation and cryptic riddles that is the investment world, JL Collins stands like a wise mentor by the path, offering a straightforward map, words of encouragement, and the tools to move forward with confidence. You won’t find a more insightful advisor with a kinder heart.” — Malachi Rempen: Filmmaker, cartoonist, author, and self-proclaimed rogue.
This book started as a series of letters to my daughter about various topics—mostly about money and investing—that she wasn’t quite ready to absorb.
Since money is the most powerful tool we have to navigate the complex world we live in, understanding it is crucial.
“But Dad,” she once said, “I know money is important. I just don’t want to spend my life thinking about it.” This was a revelation. I’m passionate about this subject. But most people have better things to do with their time. They have bridges to build, diseases to cure, treaties to negotiate, mountains to climb, technologies to create, children to teach, and businesses to run.
Unfortunately, ignoring financial matters leaves you vulnerable to the charlatans of the financial world. Those who make investing excessively complicated, because when it’s complex, it becomes more profitable for them, more costly for us, and we’re forced into their grasp.
Here’s an essential truth: Complex investments exist only to benefit those who create and sell them. They are not only more expensive for the investor but also less effective.
The simple approach I designed for her and now share with you is not only easy to understand and implement but also more effective 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 why understanding this is key to building wealth.
– Where traditional investment advice goes wrong and what truly works.
– What the stock market is and how it really functions.
– Why the stock market always rises and why most people still lose money in it.
– How to invest in both bull and bear markets.
– Specific investments to implement these strategies.
– The Wealth Building and Wealth Preservation phases of your investing life and why they don’t always depend on age.
– How your asset allocation relates to these phases and how to choose it.
– Simplifying 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).
– Which investment firm to use and why the one I recommend is superior to others.
– Why to be cautious with investment advisors and if you need one at all.
– Why and how you can be deceived, and how to avoid becoming a target.
– Why I don’t recommend dollar-cost averaging.
– What financial independence looks like and how to make your money work for you.
– The 4% rule and how to use it to safely draw on your wealth.
– The truth about Social Security.
– A case study on implementing all this in real life.
Don’t let this overwhelm you. Those who have gone before you say:
“…in his trademark no-frills and often humorous style, JL makes it both approachable and simple. And powerful.”
“…an effective message told in a visual, humorous way.”
“…a refreshingly unique and approachable view on investing.”
“JL Collins has a knack for making boring financial topics funny and engaging.”
“Rather than using esoteric formulas to measure a stock’s alpha and beta, he lights up the campfire and tells stories.”
Enjoy the read and the journey!
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