The Money with Katie Show Student Loans, 50% Save Rates, and Being a Capitalist: JL Collins, Godfather of Financial Independence, Returns
4 snips
May 21, 2025 
JL Collins, author of 'The Simple Path to Wealth' and a beacon in the financial independence movement, shares crucial insights on today’s financial landscape. He tackles the student loan crisis and debunks the myth of 'good debt.' Collins advocates for downsizing living expenses and critiques America's consumer culture. A spirited debate on capitalism unfolds, pondering whether billionaires create jobs or vice versa. Tune in for thought-provoking discussions that challenge conventional wisdom and inspire financial freedom.
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Freedom in Downsizing Housing
- Katie moved from a bigger house back to a smaller apartment, cutting her housing costs in half.
- She found downsizing felt cozy and liberating, proving there's no such thing as "going backward."
Market Returns Exceed Expectations
- Including the last 10 years of market returns raised the 50-year average from 11.9% to 12.2%.
- Despite recent turmoil, long-term stock market returns remain strong and unpredictable.
Use the 4% Rule Wisely
- The 4% withdrawal rate is a guideline, not a guarantee; it has about a 96% success rate.
- Pay attention to your spending and adjust during bear markets to avoid running out of money.
