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Financial Independence Checklist for College Graduates (My path for my kid — the first 10 years)

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Summary

JL Collins offers advice to college graduates on how to become financially independent. He suggests avoiding debt, saving and investing at least 50% of income, and investing in VTSAX. He recommends living frugally and maintaining a 4% withdrawal rate of assets once financial independence is achieved. He also suggests using resources such as Talent Stacker and Betterment to help with reaching financial goals.

Q&As

What is the primary advice given to soon-to-be college graduates?
The primary advice given to soon-to-be college graduates is to avoid debt, save and invest at least 50% of their income, and follow the Simple Plan to Wealth.

How much should one save and invest in order to become financially independent?
In order to become financially independent, one should save and invest at least 50% of their income.

What is the best investing strategy for someone who is still working?
The best investing strategy for someone who is still working is to invest 100% of their income in VTSAX.

What is F-You Money?
F-You Money is the amount of money one needs to be financially independent, which is 25x their annual expenses.

What advice does JL Collins give to those who have been out of college for a few years?
JL Collins' advice to those who have been out of college for a few years is to think of it as a ten-year plan they can start right now, and to keep a healthy perspective on how lucky they are.

AI Comments

👍 This article is a great resource for college graduates looking to prepare for their financial future. It provides a comprehensive checklist of advice and resources to help people build their wealth and achieve financial independence.

👎 The article is too long and contains many details that may be too overwhelming for college graduates who are just starting out.

AI Discussion

Me: It's about the financial checklist that JL Collins has created for his daughter's college graduation. He goes through some of the steps she should take in the first 10 years of her post-college life to become financially independent, such as avoiding debt, living like a college student and investing 50% of her income into VTSAX or the equivalent. He also talks about diversifying her investments once she's done working and has reached financial independence.

Friend: That's really interesting. It's great that he's providing advice for his daughter and for other college graduates. It's good to see that he's emphasizing the importance of avoiding debt and living below your means.

Me: Yeah, I think it's really helpful for college graduates to get advice like this, especially since the job market is so competitive right now. Plus, it's important to start investing in your 20s so that your money has more time to grow. It's also great that he's talking about diversifying your investments and giving back once you're financially independent. That's something that many people don't think about.

Action items

Create a budget and stick to it.
Invest at least 50% of your income in VTSAX or the equivalent.
Utilize resources such as Talent Stacker, Empower, Betterment, and NewRetirement to help manage and evaluate investments.

Technical terms

VTSAX: Vanguard Total Stock Market Index Fund.
F-You Money: A term used to describe having enough money to be able to do what you want without worrying about money.
Simple Plan to Wealth: A plan to achieve financial independence by saving and investing at least 50% of your income.
401k Plan: A retirement savings plan sponsored by an employer.
IRA: An individual retirement account.
Market Drops: A decrease in the stock market.
25x Your Annual Expenses: A measure of financial independence, where 25 times your annual expenses is equal to your total assets.
DIFM (Do It For Me): A term used to describe a hands-off approach to investing.
Walnut Frame and Mint Mattress: A mattress and frame set from Tuft & Needle.