

JL Collins Part 2: What Happens When You Don't Need to Work Anymore?
26 snips Jul 15, 2025
In this insightful discussion, JL Collins, author of The Simple Path to Wealth, shares essential strategies for life after financial independence. He emphasizes that spending habits, not just net worth, determine one’s investment approach. Collins discusses his daughter's successful withdrawal strategy and challenges the traditional 4% rule, advocating for higher withdrawal rates based on individual circumstances. He also explores the balance between frugality and the freedom to spend, revealing the deeper meaning of financial independence as a choice driven by passion.
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Invest Aggressively Post-FI
- If you've reached financial independence with ample margin, consider staying fully invested in stocks for higher growth.
- Bonds smooth volatility but can lag performance, especially if your spending rate is low compared to your portfolio.
Invest Based on Spending Rate
- Adjust your asset allocation based on your spending rate, not just your net worth.
- Higher spending requires more bonds to reduce portfolio volatility; lower spending allows for more stocks.
Bucket Timeline Investing Strategy
- For money needed within three years, keep it in cash to avoid volatility.
- For moderate flexibility or longer timelines (10 years), consider adding stocks for growth but accept possible delays.