Afford Anything Q&A: Why Smart Investors Are Questioning VTSAX and Chill
Listeners dive into the debate around the VTSAX investment strategy and explore the merits of sophisticated alternatives. Tips on navigating Roth IRA contributions offer clarity amidst tax complexity. The power of personalized reading material for high school finance libraries sparks intriguing book recommendations. The conversation wraps up with insights on backdoor Roth IRAs, emphasizing automation and strategic investing. Dive into the world of personal finance literature as the hosts champion foundational knowledge for younger generations.
01:20:18
VTSAX and Chill
The VTSAX and Chill strategy has dominated personal finance thinking, but there are more sophisticated ways to invest. This leads to a deeper understanding of investment diversity and risk management.
Market Efficiency
Investing in real estate offers different risks and returns compared to stocks, and diversification can enhance investment outcomes. Understanding these differences is key to effective investment strategies.
Invest in Real Estate Carefully
If you choose to invest in real estate syndications, ensure you conduct thorough due diligence. This knowledge mitigates risks and enhances your chances of success.
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Intro
00:00 • 2min
Exploring Investment Strategies Beyond VTSAX
01:50 • 17min
Rethinking Robo-Advisors for Young Investors
18:39 • 20min
Introduction to Upcoming Financial Topics and Sponsorship Highlights
38:59 • 2min
Mastering Backdoor Roth IRAs and Investment Strategies
40:46 • 14min
Navigating Roth IRA Contributions with Ease
54:21 • 2min
Essential Personal Finance Reads for High School Students
56:32 • 3min
Financial Wisdom Through Literature
59:57 • 17min
Reflections and Financial Planning Insights
01:16:40 • 4min
#10
• Mentioned in 323 episodes
Getting Things Done
David Allen
Getting Things Done (GTD) is a personal productivity system developed by David Allen.
The book provides a detailed methodology for managing tasks, projects, and information, emphasizing the importance of capturing all tasks and ideas, clarifying their meaning, organizing them into actionable lists, reviewing the system regularly, and engaging in the tasks.
The GTD method is designed to reduce stress and increase productivity by externalizing tasks and using a trusted system to manage them.
The book is divided into three parts, covering the overview of the system, its implementation, and the deeper benefits of integrating GTD into one's work and life.
#1696
• Mentioned in 16 episodes
Set for life
Scott Trench
#360
• Mentioned in 49 episodes
The Simple Path to Wealth
JL Collins
Pete Adeney
JL Collins
In 'The Simple Path to Wealth,' JL Collins provides a clear and accessible roadmap to financial independence.
The book, written in a conversational style, emphasizes the importance of living below your means, avoiding debt, and investing in broad-based index funds, such as Vanguard's Total Stock Market Index Fund.
Collins discusses key financial principles like the 'F-You Money' concept, the 4% rule, and the dangers of engaging investment advisors.
He shares his personal journey and investment mistakes, making the book relatable and inspiring.
Although the book is heavily focused on the U.S.
market, its underlying principles are applicable to a wide range of investors.
#19
• Mentioned in 246 episodes
The Psychology of Money
Timeless Lessons on Wealth, Greed, and Happiness
Morgan Housel
In 'The Psychology of Money,' Morgan Housel delves into the psychological and emotional aspects of financial decisions.
The book consists of 19 short stories that illustrate how personal history, worldview, emotions, and biases influence financial outcomes.
Housel emphasizes the importance of behavior over knowledge in managing money, highlighting the power of compounding, the dangers of greed, and the pursuit of happiness beyond mere wealth accumulation.
He advocates for a frugal lifestyle, long-term perspective, and a balanced approach to investing, stressing that financial success is more about mindset and discipline than about technical financial knowledge.
#455
• Mentioned in 40 episodes
Happy Money
The Science of Happier Spending
Michael Norton
Elizabeth Dunn
In this book, Elizabeth Dunn and Michael Norton explain how money can buy happiness if spent according to five core principles.
These principles include buying experiences over material goods, making purchases a treat, buying time, paying now and consuming later, and investing in others.
The authors draw on cutting-edge research in behavioral science to show how these principles can be applied by individuals and companies to create happier employees and customers.
They also highlight how companies like Google, Pepsi, and Charmin have implemented these ideas successfully.
#178
• Mentioned in 78 episodes
The E-myth revisited
why most small businesses don't work and what to do about it
Michael E. Gerber
The E-Myth Revisited challenges the common assumption that most businesses are started by entrepreneurs.
Instead, Gerber argues that most businesses are started by technicians who understand the technical work but not the business itself.
The book introduces the concept of the E-Myth and explains that successful business owners must balance three roles: the Entrepreneur (the visionary), the Manager (the planner and organizer), and the Technician (the one who performs the technical work).
Gerber emphasizes the distinction between working 'in' your business and working 'on' your business, and he provides strategies for systemizing and scaling businesses, including the concept of the Franchise Prototype.
#317
• Mentioned in 52 episodes
The Goal
Eliyahu M. Goldratt
The book tells the story of Alex Rogo, a factory manager who is given three months to improve his underperforming plant or face its closure.
With the guidance of his former physics professor, Jonah, Alex learns to apply the Theory of Constraints to identify and manage bottlenecks in the production process.
Through this approach, Alex and his team transform the factory, improving efficiency, reducing inventory, and increasing profitability.
The novel uses the Socratic method to teach fundamental business concepts and emphasizes the importance of continuous improvement and critical thinking in management.
#12
• Mentioned in 305 episodes
Rich Dad Poor Dad
What the Rich Teach Their Kids about Money - That the Poor and the Middle Class Do Not
C.P.A. Sharon L. Lechter
Robert Kiyosaki
The book tells the story of Robert Kiyosaki's two fathers: his 'poor dad,' a highly educated but fiscally poor man, and his 'rich dad,' the father of his best friend who was a successful entrepreneur.
It emphasizes the importance of financial education, distinguishing between assets and liabilities, and building wealth through investing in assets such as real estate and businesses.
Kiyosaki argues that a good education and a secure job are not guarantees for financial success and provides practical lessons on how to make money work for you rather than working for money.
#164
• Mentioned in 84 episodes
The millionaire next door
William D. Danko
Thomas J. Stanley
The book challenges the common perception that millionaires live in affluent neighborhoods and instead shows that many wealthy individuals live modestly in middle-class and blue-collar areas.
The authors identify seven common traits among these millionaires, including being dedicated to a vision, making appropriate career decisions, valuing financial security over social standing, and efficiently spending time and money.
The book also distinguishes between 'Under Accumulators of Wealth' (UAWs) and 'Prodigious Accumulators of Wealth' (PAWs), emphasizing the differences in their spending and saving habits.
#350
• Mentioned in 49 episodes
The Richest Man in Babylon
George Clason
This book, written by George S. Clason, uses a series of parables to convey fundamental principles of personal finance and wealth accumulation.
Published in 1926, it remains highly relevant today, offering practical advice on saving, investing, budgeting, and financial discipline.
The parables are engaging and easy to understand, making complex financial concepts accessible to readers of all backgrounds.
Key principles include paying yourself first, living within your means, and making money work for you through wise investments.
Despite its historical setting, the book's core lessons are adaptable to modern financial practices and have had a profound impact on countless readers worldwide.
#199
• Mentioned in 70 episodes
The Almanack of Naval Ravikant
A Guide to Wealth and Happiness
Naval Ravikant
Eric Jorgenson
Tim Ferriss
The Almanack of Naval Ravikant is a compilation of Naval's thoughts on fundamental principles for happiness, wealth creation, decision-making, and personal growth.
The book distills his insights from the last ten years into practical advice, guiding readers on how to walk their own unique path toward a happier, wealthier life.
It emphasizes the importance of compound interest, leveraging resources, and productizing oneself.
The book also delves into key aspects of life, including relationships, health, and purpose, offering a holistic approach to wealth and happiness.
#568: Jason is confused by the recent discussions about the efficient frontier and Paul Merriman’s four-sector strategy. It seems a lot like another form of stock-picking. What’s the difference?
Michelle straddles the Roth income threshold and is frustrated that she never knows if she’ll qualify for a Roth contribution until tax season. Is her current savings plan too complicated?
Evan has $100 to spend on personal finance books for his high school’s library. What books would Paula and Joe put on this limited shelf space?
Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.
Enjoy!
P.S. Got a question? Leave it here.
For more information, visit the show notes at https://affordanything.com/episode568
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