034R | What’s Your Risk Tolerance | The Friday Roundup

034R | Risk Tolerance & Asset Allocation

In today's podcast we discuss our thoughts on Part 2 of the Stock Series conversation with JL Collins, risk tolerance, doomsday scenarios and rebalancing.


In Today’s Podcast we cover:

  • The Friday Roundup and the episode Part 2 of our discussion with JL Collins from The Simple Path to Wealth and JLCollinsNH
  • What do you do when there’s a large crash in the stock market? Big takeaway from Jim’s episode
  • You can’t sell at the bottom, so you need to steel yourself mentally beforehand
  • If you’re starting investing, one of the best thing that can happen to you is a market crash
  • You can’t time the market
  • There are doomsday scenarios, but since they are so rare it is silly to plan for the absolute worst case and ignore the other 99.9% likelihood
  • Follow the math when making the best decision with the information at hand
  • Question from Kevin about when to “take all your chips off the table”
  • That event would have to be extraordinary and destructive for our country and economy
  • Spend less than you earn and invest in broad based index funds
  • Feedback from Nancy on asset allocation and comfort with volatility and her belief that you shouldn’t take a lot of risk if you don’t need to
  • Jonathan’s example of rebalancing and a hypothetical $1,000,000 portfolio and a 50% market crash
  • Equities will return significantly higher than bonds over the long term. Bonds do “smooth the ride” but lower long-term returns
  • You want to rebalance in accounts like IRAs, 401ks that won’t trigger a taxable event
  • Brad’s example of his parents investing strategy
  • Over the long term which option is truly riskier? Investing in stocks and facing volatility or lowering your expected return by investing in cash or bonds
  • The 4% rule is based on getting a return while pulling out money each year, so you can’t just stick it in cash and expect the money to last forever
  • The power of the ‘perpetual money making machine’ to last forever
  • ChooseFI was mentioned on Forbes as one of three financial podcasts for people of all ages to listen to
  • We need panelists to select the finalists for the business building contest with Alan Donegan
  • Lance on our Facebook group pulled the trigger on FI today – congrats!
  • What did Brad and Jonathan put into place this week as one life optimization?
  • Jonathan’s salad hacks
  • Jonathan is now saying “stimulus and response” out loud when finding something habitual in his life
  • ChooseFI is not just limited to finances. It is a life optimization project
  • Voicemail from Scott (Brad’s brother)
  • Frugal wins of the weeks
  • Itunes reviews of the week

Links from the show:

Books Mentioned in the Show:

033R | The Friday Roundup

Friday Roundup 033R

In today's Friday Roundup we go in-depth on Episode 33 with Dominick Quartuccio including thoughts on self-improvement, meditation and a challenge from Brad. Frugal wins of the week plus three voicemails from the community.


In Today’s Podcast we cover:

  • Unpacking Episode 33 with Dominick Quartuccio and our takeaways from the episode
  • Intentionality allows you to purchase your freedom, and we want to expand that intentionality beyond just personal finance
  • Our focus on living a happier, more content and optimized life
  • The ultimate luxury is the ‘perpetual money making machine’ to provide time and focus on what matters in life
  • How Dominick spent $28,000 this year on personal development. Have you spent any time or money on your own personal development?
  • Spending on things that you value, and directing money and resources as such
  • How to improve your life for $0 and learn and grow
  • Brad’s challenge: Make one change in your life this week that will make your life better
  • Break some negative habit and disrupt it in your life this week
  • Jonathan’s change this week: Eating carrots and salad without salad dressing
  • Meditation and breathing. Take one deep breath.
  • Brad’s description of his meditation practice
  • What gets you excited or nervous about life coming up in the near future? How are you expanding your horizons?
  • How Jonathan has learned by starting ChooseFI and how it has been the excitement in his life this past year
  • Discussion surrounding guilt over not feeling content with your “perfect” life
  • Limiting beliefs: Don’t let them hold you back and also go back and analyze the beliefs and stories you have been carrying with you your entire life
  • The value of making small changes over time to improve your health
  • Jonathan’s search for better tea
  • Feedback from the audience on Episode 33 with Dominick
  • Frugal Wins of the Week:
    • Holly saved money by not going to the movies and bought the game Outburst
    • Adlay fixed his air conditioner after watching videos on replacing a capacitor on YouTube
  • Quote from Paige how she only has control over her spending and savings rate
  • Discussion about contest with Alan Donegan on building a business
  • Voicemail from Jessica with new segment we’re calling “Highlighting the Hamster Wheel”
  • Voicemail from Royce who used our voiceover guy for his side hustle contest submission
  • Voicemail from Thomas about a side hustle to teach English to Chinese students
  • Itunes reviews

Links from the show:

032R | The Friday Roundup

In today's Friday Roundup we discuss Episode 32 with Joel from FI 180 on the ‘Milestones of FI', plus a life hack voicemail from Noah and Frugal Wins of the Week from our Facebook community.


In Today’s Podcast we cover:

  • The Friday Roundup after the Milestones of FI episode with Joel from FI 180
  • We’re having a FI get together in Richmond and hope to expand beyond Richmond
  • The gamification aspect of personal finance and the milestones
  • When your ‘financial freedom clock’ starts and discussion of where certain types of debt plays into the calculation
  • Financial freedom clock equals positive net worth and all junk debt is paid off
  • Milestone two is when you have a $100,000 net worth (when Personal Capital starts calling you for a personal consultation)
  • The next milestone is ‘FU Money’ and there is discussion on where this fits into the continuum as the concept is nebulous
  • Should there be a milestone before $100k net worth and FU money?
  • Adding in ‘checkpoints’ along the way on the journey to FI in addition to milestones
  • Milestone four is ‘Half FI’ which means you have 12.5x your annual expenses saved up
  • Milestone five is ‘Lean FI’ which means you have enough to cover all your core expenses for life (not including your discretionary expenses)
  • The discussion surrounding the math and psychology of paying off your mortgage or not paying it off
  • The next milestone is the “crossover point” where your investments earned more than you did from working in a given month
  • The many catchphrases of Brad and Jonathan
  • Milestone 7 is Flex FI, followed by Financial Independence as Milestone 8 and Milestone 9 is Fat FI
  • The power of the concept of Flex FI and how you have an 82% chance of succeeding even at this milestone
  • The conversation surrounding where Brad is on the path to Financial Independence and where the side hustle factors into the calculation
  • Our ask that the community helps us refine the milestones and checkpoints
  • How Joel’s FI journey and drawdown strategies can be a case study going forward
  • Voicemail from Noah from Money Metagame on hacks to save on utilities
  • Take action and make the calls to compare prices on auto insurance, utilities, etc.
  • Frugal win of the week from Michelle about unclaimed property
  • Frugal win of the week from Vicki about Magical Iced Coffee
  • Input from Don and Scott about buying cards and gift giving
  • Focus on our discussion about gift giving from a prior episode and the Five Love Languages
  • Itunes reviews winners

Links from the show:

Books Mentioned in the Show:

031R | The Friday Roundup

031R - The Friday Roundup

In today's Friday Roundup we discuss travel rewards, flipping holidays upside down, buying presents, the upcoming FI Documentary and much more.


In Today’s Podcast we cover:

  • Submit your applications for the contest to win a one-on-one business coaching relationship with Alan Donegan from PopUp Business School
  • Brad’s slow travel vacation through New York State this August
  • How we’ll publish episodes while on vacation and living a FI lifestyle
  • Discussion of Episode 31 on travel rewards
  • What to do with your strategy after Chase cards
  • Clarification of Brad’s past and future travel rewards strategy
  • Noah’s feedback about an alternate option for staying under the Chase 5/24 rule
  • Feedback from the audience: Pastor FI on how he switches Mother’s Day and Father’s Day
  • Feedback from Frank on not doing things on holidays or other busy times. Don’t wait in line “with the lemmings”
  • If you’re busy all the time, you need to come up with strategies to make your life better
  • How Jonathan feels that buying cards for holidays are a terrible waste of money
  • Brad and Laura don’t exchange presents for any holidays/birthdays/etc.
  • Jonathan’s spending habits for presents for his friends and family
  • How essential the concept of progress is in the pursuit of FI and the pursuit of happiness
  • Voicemail from Scott Rieckens on how he’s starting a documentary about the FI community
  • How we can grow the FI movement through this documentary and by spreading the word
  • We’re going to have Scott on the podcast and he’s going to tell us about his Kickstarter campaign for the documentary
  • Question from Bonnie about tax implications in early retirement
  • Response from Keith from the Wealthy Accountant
  • Follow up from Brad on action he took to sell his comic book collection
  • Email from David how he wants to hire Jonathan’s wife Dani to do an audio book version of the book he intends to publish
  • Frugal wins of the week from our community
  • Can you share items with your neighbors and save money?
  • Itunes reviews and book giveaway

Links from the show: