Stock Market Crashes, Deflation, and a Bit on Inflation

What does it take to retire rich and retire early? A huge salary? Nope. Generational wealth. Wrong. In this episode of the Stock Investing Series, JL discusses specific strategies middle-class earners can use to retire early. Today’s episode is brought to you by Talent Stacker. If you’re stuck in a job you don’t like making too little money without any flexibility, it might be time to consider a change. Check out JL’s review here to see how Talent Stacker can help. Notes & Links: Stocks Part 7 blog post: https://jlcollinsnh.com/2012/05/16/stocks-part-vii-can-everyone-really-retire-a-millionaire/ S&P 500 return calculator: https://dqydj.com/sp-500-return-calculator/ Dividends reinvestment calculator: https://dqydj.com/sp-500-periodic-reinvestment-calculator-dividends/  JL's new book, Pathfinders: https://www.amazon.com/Pathfinders-Extraordinary-Stories-Financial-Independence_And/dp/180409000X Blog post on withdrawal rates: https://jlcollinsnh.com/2012/12/07/stocks-part-xiii-withdrawal-rates-how-much-can-i-spend-anyway/ Mr. Money Mustache blog post on retiring early: https://www.mrmoneymustache.com/2012/05/14/first-retire-then-get-rich/

Today we’re gonna look at the fun stuff. What, exactly, can we use to build and keep our wealth. JL is going to give you three portfolios each using the tools (funds) we discussed last time. First will be exactly what he tells his 20-year-old to do. She couldn’t care less about investing. With this simple approach she doesn’t have to. All she needs to do is to keep adding to the pot and let it ride. Years from now she’ll wake up rich. Along the way she’ll out-perform roughly 80% of the more actively engaged investors out there. We’ll call this The Wealth Building Portfolio. Next he’ll share with you what Mr. and Mrs. JL Collins do as the semi-retired couple they are. We’ll call that one The Wealth Preservation and Building Portfolio. Today’s episode is brought to you by Talent Stacker. If you’re stuck in a job you don’t like making too little money without any flexibility, it might be time to consider a change. Check out JL’s review here to see how Talent Stacker can help. Notes & Links: Stock Series Part 6 blog post: https://jlcollinsnh.com/2012/05/12/stocks-part-vi-portfolio-ideas-to-build-and-keep-your-wealth/ Why You Need F-You Money: https://jlcollinsnh.com/2011/06/06/why-you-need-f-you-money/ Vanguard Total Bond Market Index Fund (VBTLX): https://investor.vanguard.com/investment-products/mutual-funds/profile/vbtlx Blog post on international funds: https://jlcollinsnh.com/2012/09/26/stocks-part-xi-international-funds-2/ Background on index funds: https://jlcollinsnh.com/2012/01/06/index-funds/ VTSAX: https://investor.vanguard.com/investment-products/mutual-funds/profile/vtsax VGSLX: https://investor.vanguard.com/investment-products/mutual-funds/profile/vgslx VMMXX: https://investor.vanguard.com/investment-products/mutual-funds/profile/vmmxx Blog post on why JL doesn't do REITs anymore: https://jlcollinsnh.com/2014/05/27/stocks-part-xxii-stepping-away-from-reits/ 

Want to produce better investment results than 80% of the professionals and active amateurs out there? It's not that hard. In fact, it's so simple it will take almost none of your time and you can focus on all the other things that make your life rich and beautiful. Here are 3 investing considerations and 3 simple tools to beat managed funds and fund managers… Today’s episode is brought to you by Talent Stacker. If you’re stuck in a job you don’t like making too little money without any flexibility, it might be time to consider a change. Check out JL’s review here to see how Talent Stacker can help. Notes & Links: Stock Series Part 5 blog post: https://jlcollinsnh.com/2012/05/09/stocks-part-v-keeping-it-simple-considerations-and-tools/  Why you need F-you money: https://jlcollinsnh.com/2011/06/06/why-you-need-f-you-money/  Article the Redditor commented about: https://jlcollinsnh.com/2011/06/08/how-i-failed-my-daughter-and-a-simple-path-to-wealth/  Vanguard: https://investor.vanguard.com/home?fromPage=portal 

How does deflation and inflation influence stock prices? How do you spot a stock market crash before it happens? And how do you survive a stock market crash and hedge against inflation? JL answers these questions and more on episode number 4: Stock Market Crashes, Deflation, and a Bit on Inflation. Today’s episode is brought to you by Talent Stacker. If you’re stuck in a job you don’t like making too little money without any flexibility, it might be time to consider a change. Check out JL’s review here to see how Talent Stacker can help. Notes & Links: Stock Series Part 4 blog post: https://jlcollinsnh.com/2012/04/29/stocks-part-iv-the-big-ugly-event/ Hyperinflation: https://en.wikipedia.org/wiki/Hyperinflation 

There are 4 reasons why most people lose money in the stock market: We panic when times are tough and buy when the market is soaring. We believe we can pick individual stocks. We believe we can pick winning mutual fund managers. We play in the wrong end of the pool. In this episode, you'll learn how to avoid the traps that cause people to buy high and sell low. Today’s episode is brought to you by Talent Stacker. If you’re stuck in a job you don’t like making too little money without any flexibility, it might be time to consider a change. Check out JL’s review here to see how Talent Stacker can help. Notes & Links: Stock Series Part 3 blog post: https://jlcollinsnh.com/2012/04/25/stocks-part-iii-most-people-lose-money-in-the-market/ Why I Can't Pick Winning Stocks and You Can't Either: https://jlcollinsnh.com/2011/06/02/why-i-cant-pick-winning-stocks-and-you-cant-either/ Dividend Growth Investing: https://jlcollinsnh.com/2011/12/27/dividend-growth-investing/

In the last episode JL talked about the inevitability of stock market crashes. In today's episode, he gives  primer to index funds and Vanguard's VTSAX index fund. He also shares a personal story of how not to invest during a market crash. Also, in this episode you'll hear the AI voice stumble a couple of times. While none of the important information was lost, it has promised to do better…  Today’s episode is brought to you by Talent Stacker. If you’re stuck in a job you don’t like making too little money without any flexibility, it might be time to consider a change. Check out JL’s review here to see how Talent Stacker can help. Notes & Links: Stock Series Part 2 blog post: https://jlcollinsnh.com/2012/04/19/stocks-part-ii-the-market-always-goes-up/  VTSAX: https://investor.vanguard.com/investment-products/mutual-funds/profile/vtsax 

How do you stay calm when investing? Your emotions are the first thing you must master to become a successful investor. Why? Because it's not if a market crash will happen—it's when… Today’s episode is brought to you by Talent Stacker. If you’re stuck in a job you don’t like making too little money without any flexibility, it might be time to consider a change. Check out JL’s review here to see how Talent Stacker can help. Notes & Links: Stock Series Part 1 blog post: https://jlcollinsnh.com/2012/04/15/stocks-part-1-theres-a-major-market-crash-coming-and-dr-lo-cant-save-you/  Money Magazine article with Dr. Lo: https://money.cnn.com/2012/03/02/pf/efficient_market.moneymag/index.htm  Adaptive Market Hypothesis: https://www.investopedia.com/terms/a/adaptive-market-hypothesis.asp Asset allocation posts: https://jlcollinsnh.com/2012/05/12/stocks-part-vi-portfolio-ideas-to-build-and-keep-your-wealth/ https://jlcollinsnh.com/2014/06/10/stocks-part-xxiii-selecting-your-asset-allocation/ 

This podcast version of the Stock Investing Series from the JL Collins blog has been recorded using an AI voice clone, with JL's permission. This intro will tell you why we chose to use a voice clone and cover the necessary legal disclaimers. Notes & Links: Stock Series blog posts on the blog: https://jlcollinsnh.com/stock-series/  AI voice clone tool we used: https://elevenlabs.io/