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Kindle Notes & Highlights
by
J.L. Collins
Read between
June 15 - July 1, 2025
now approximately 75 for men and 80 for women.
US Treasury bonds—what the Trust Fund holds—are considered the safest investments in the world.
Plan your financial future assuming Social Security will not be there for you. Live below your means, invest the surplus, avoid debt, and accumulate F-You Money. Be independent, financially and otherwise.
As individuals, we only have one obligation to society: to ensure we and our children are not burdens to others. The rest is our personal choice.
Avoid debt. Nothing is worth paying interest to own. • Avoid fiscally irresponsible people and certainly don’t marry one. • Spend the next decade or so working your ass off building your career and your professional reputation.
Save and invest at least 50% of your income. Put this in VTSAX (Vanguard Total Stock Market Index Fund) or one of the other options
Save more than 50% and you’ll get there sooner. Save less and it will take a bit longer.
During this accumulation phase, celebrate market drops. While you are in the wealth accumulation phase, these are gifts. Each dollar you invest will buy you more shares.
Once you decide you are done working, diversify into bonds. The more bonds you add, the smoother the ride but the lower the growth.
freedom, to me, is the single most valuable thing money can buy,
Some seek absolute security, but it simply doesn’t exist.
Stocks are considered very risky, and they are certainly volatile in the short term. But go out five to ten years and the odds strongly favor handsome returns. Go out twenty years and you are virtually guaranteed to be made wealthier by owning them. At least if the last 125 tumultuous years are any guide.
fear and risk are often overblown and understand that letting our fear control us carries its own set of risks.
Ignore the drops and buy more shares. This will be much, much harder than you think. People all around you will panic. The news media will be screaming, “Sell, sell, sell!”
Avoid investment advisors. Too many have only their own interests at heart.
It’s your money, and no one will care for it better than you.
When you can live on 4% of your investments per year, you are financially independent.
An investor buys assets that have operations that can generate cash and growth—stock in a company or rental real estate,
Meme stocks are by definition speculations.
If you invest in real estate, you are taking on a part-time, maybe even full-time, job.
The math is simple, a balance between the level of your Assets and the level of your Spending: A × 4% = S. For example, if you have $1,000,000 in assets × 4%, you can spend $40,000 a year.
When you are building your wealth, you want to buy the least car or house that meets your needs. Once you are wealthy, you can buy whatever you want.
The more must-haves in your life, the less likely you are to reach financial independence.
