# The Best Advice from JL Collins

## Метаданные

- **Канал:** Mad Fientist
- **YouTube:** https://www.youtube.com/watch?v=-fQtH5jJLU0
- **Дата:** 05.12.2023
- **Длительность:** 39:58
- **Просмотры:** 7,381

## Описание

To celebrate the release of JL Collins' new book, Pathfinders, I collected all the best advice from his Financial Independence Podcast interviews!
 
Jim has been on the show three times:
 
* First, back in 2012 (he was my second guest ever!)
* Second, when his hit book, The Simple Path to Wealth, was released
* Third, during the depths of the Coronavirus crash
 
That last interview may be my proudest moment as the Mad Fientist (I explain why during the show).
 
Hope you enjoy this jam-packed episode!

HIGHLIGHTS

* The power of FU Money and why it may be less money than you think
* Jim’s biggest investing mistake and what he learned from it
* Why index investing is superior to active investing
* Are REITs and international funds necessary
* Why your house may not be a good investment
* Thoughts on stock picking and actively-managed funds
* What makes Vanguard unique and why it’s best for investors
* The three keys to becoming wealthy
* Lessons learned from Black Monday
* How to prepare for the next market crash

SHOW LINK

https://www.madfientist.com/jl-collins-highlights/

## Содержание

### [0:00](https://www.youtube.com/watch?v=-fQtH5jJLU0) Segment 1 (00:00 - 05:00)

I'm blind you hey what's up everybody Welcome to the financial Independence podcast the podcast that gets inside the brains of some of the best and brightest in personal finance to find out how they achieved Financial Independence I have a very special episode for you today I've gone back through three of my previous interviews with one of my most popular guests JL Collins and I've extracted all the best bits from those episodes and you may remember I did this with Mr Money Mustache a while back and it was a really popular short like 10 or 15 minute episode so to celebrate JL Collins's new book called Pathfinders which I just recently read and really enjoyed I figured I would do the same for him so it was a lot of fun going back through these three episodes because one he was my second guest ever so the first episode I went back to listen was in 2012 and uh the only other person I had interviewed up till that date was uh Mr Money Mustache so it was fun to listen to such an early episode the second one was right before the simple path to wealth came out which neither of us at the time could have imagined how successful that book would become so it was fun to listen to that knowing what I know now about how popular that book has become and how it's sort of become a classic in the personal finance space already and the third interview we did is maybe one of my most proud accomplishments as the M fientist I would say um which I will talk more about when I get to introducing those clips but looking back on that interview now I think it maybe is the most important thing I've ever put out and maybe one of the things I'm most proud about mainly due to the timing of it but also the information and the message that came out at exactly the right time so it was a treat to go back through all these episodes I hope you enjoyed this short episode that's packed full of amazing advice cuz if you know JL Collins you know he's got some incredible wisdom that he shared and now has three books and his blog so big thanks to Jim for coming on the show all those times over the past 12 years if you haven't checked out his new book called Pathfinders yet go check it out there will be a link in the show notes it's a really enjoyable read and if you've read the simple path to wealth it's a great supplement to it and if you haven't it's a great introduction to it that'll make you want to read it so there'll be a link in the show notes to his new book but yeah I really just hope you enjoy this episode as much as I did put it together you talk a lot about the importance of Fu money but how do you know when you have Fu money you have F Fu money far before you have enough to hang it up and never work again you know you you have it as soon as it makes you bold enough to say okay I'm going to go try something different when was the first time you realized you had Fu money I figured I had enough to step away from a job I had $5,000 uh I was in my 20s and I'd Sav $5,000 and for my first professional job I'd always save 50% of everything I made and I wanted to go to Europe and uh I petitioned them for uh for a couple months off to do that as sabatical if you will and they said no and I said okay I thought about it for a week and I said okay I think I'm going to go to Europe anyway I certainly didn't have enough to retire for the of my life but uh it's as much an attitude as anything else what kind of power does FU money give you asked for a couple months off a sabatical because I wanted to go bum around Europe and I want to say I was probably 26 at the time and uh my boss said no and which was typical in the times this is in the mid-70s and um I didn't know any different I thought well you know you go and you ask the B says no that's the end of it so I went back and I thought about this for a bit and I like the job and I didn't particularly want to leave which is why I didn't walk in and quit but I wanted to go to Europe and I didn't realize there was any middle ground so I after thinking about it for a week I decided Well as much as I like the job I really want to go to Europe and I do have $55,000 I've got this I didn't know the term F you at the time but uh I do have this sitting here that allows me to go and so a week later I went and resigned and an amazing thing happened uh he said well wait a second don't do anything Hasty let me talk to the owner and lo and behold uh we negotiated extra time off for me so I didn't have to resign and that was an eye openening experience because that few money not only allows you uh to step away if you choose to step away but it also empowers you uh and gives you negotiating room that at least in my case I never knew existed what's your biggest investing mistake AK this is the

### [5:00](https://www.youtube.com/watch?v=-fQtH5jJLU0&t=300s) Segment 2 (05:00 - 10:00)

biggest strategic mistake probably I made that if I was going to get there from an investing point of view it meant that you had a swing for the fences it meant that you you're from your investing point of view you had to be willing to hit home runs or able and of course in to carry the analogy further in that process you were going to strike out and nothing could be further from the truth I mean Successful investing is not at all about swing it for the fences in fact that's a recipe for disaster that's what uh the investment Community likes to see you do because they make the money on your trades absolutely you buying when you're swinging and selling when either you've made it or or in more cases than not when you hav't um the truth is that it's a matter of uh winning in increments and Warren Buffett is famous for saying you know don't lose the money think rule one is and Rule two is don't forget rule number one right and that's certainly not to say that Mr Buffett doesn't take risk because risk is inherent in life and it's certainly inherent in investment why is index investing Superior to picking individual stocks I have another friend uh who had taken his MBA from the University of Chicago and was an analyst with a different company who began telling me about index investing and Jack Bogle and Vanguard and how uh active investors as you pointed out earlier with disturbing regularity underperformed just buying every stock in the index right and that seem so counterintuitive and I resisted that idea for years and at Great personal expense um because I kept thinking it you have to be able just to beat the market I mean if you just avoided the bad stocks right exactly perform but what today is a bad stock is tomorrow's turnaround story there's no way of knowing what today's hero is tomorrow's collapse and uh it is appallingly difficult to figure out which is which there are famous investors like Warren Buffett who seem to have been able to beat the index and the beat the market over a vast amount of time could it be that those people are simply just a statistical anomaly in the same way that if you had a billion people flip a coin a 100 times there's going to be some of those that are going to get heads every time there is a school of thought with all due respect to uh to Mr Buffett and Mr Lynch that says their success is no more than random luck and that when you've got that many people out there uh playing the game um statistically a couple of them are going to win right and that may not be because they have such wonderful skill it may simply be the coin toss uh that even today that's hard for me to accept but whether or not that's true what is true is the chances of you or me or anybody listening to our voices being able to do what Peter Lynch and Warren Buffett have done on their own is vanishingly small Warren Buffett actually realizes that too and he recommends index investing he recognizes that what he has accomplished is not repeatable by the average guy it's not certainly not repeatable for somebody who's trying to do it on the side while working a full-time job it's not even repeatable by the vast majority of professionals who have enormous resources at their fingertips and live at 247 why are fees so important in investing a lot of investors pay not nearly enough attention to fees right and but they are u in fact there is an argument that is made that one of the reasons that index investing is so successful against active investing that is professional managers trying to choose stocks to outperform the index can be traced directly to fees because if you have if you're an indexer there's very little cost involved in buying the whole Market if you're an active manager there's all kinds of costs are involved and of course before you can make any money you have to make enough to cover those costs so that factor alone gives indexing a tremendous Advantage you initially recommended a three- fund approach but now you've dropped down to Simply two index funds why is that I started investing in U 1975 so now I've just aged myself dated myself so I've been knocking around this stuff for a long time and I heard somebody earlier today say the

### [10:00](https://www.youtube.com/watch?v=-fQtH5jJLU0&t=600s) Segment 3 (10:00 - 15:00)

definition of an expert in a field is somebody who's made all the possible Stakes mistakes that can be made and that's certainly if I have ACC claimed any expertise in this it's because I have made all the possible mistakes that you can make and by the time I started writing the blog I pretty much made those mistakes so that was 2011 I guess I've been investing for 35 years something like that at that point so there has not been a lot of change in My Philosophy or approach and as I'm sitting here the only one I can really think of is when I first started writing the blog um I recommended three mutual funds I that's one of the things that I've noted for is keeping things absolutely as simple as possible and now I only recommend two I recommend total stock market index fund and I recomend a total bond market index fund when I first started the blog the third was a re fund and I no longer I have actually have a post on the blog called stepping away from REITs and uh I don't didn't step away from them because I think REITs are bad um I stepped away from them because the role that I wanted them to play in the portfolio I was becoming more convinced that they didn't play as well as I initially thought they would and that the total stock market index fund was playing that role at least as well if not better and the role I'm referring to by the way is inflation protection so uh real estate is kind is somewhat commonly thought of as a good inflation hedge and to a certain extent it is but surprisingly it's not much better or maybe even slightly worse than holding individual equities and so over time I decided you know if you own the total stock market index fund which is the core of what I recommend you already own REITs because they're part of the total stock market and by the way for anybody who doesn't know re stands for Real Estate Investment Trust so it's a way of holding real estate Investments without physically having to buy U real estate just like owning stocks is a way of owning businesses without actually having to operate the things and uh so anyway I I just came to the conclusion that I really didn't re need reads to accomplish what I had originally put them in to accomplish why don't you think it's necessary to add a international Index Fund to the mix this is a key area where my advice uh parts company with the vast majority of people out there who are talking about this stuff the vast majority of sample portfolio that I've seen put together include International and uh as you point out I don't um there are really three reasons for this one um added risk added expense and we've got to covered so let's kind of talk about those uh added risks you have a couple of added risks when you buy international funds one is currency so when you own International companies and international markets there all trading in their local currencies so if you own International if you own European uh companies for instance they're trading in the Euro if you own Japanese companies they're trading in the Yen Etc and those currencies uh fluctuate and trade against the US dollar so there is what's called currency risk that the value of your Holdings will go up and down not just with the value of your Holdings but the currency that you are holding them in um you don't have that when you own btsx which is the fund that I recommend which is the total stock market index fund for the US from Vanguard it owns every publicly traded company in the United States so the second risk you have internationally is accounting risks so the US isn't perfect but the accounting standards and the transparency of those standards are the best in the world the us and we certainly have our Enron we have companies that occasionally blow up so there's that risk doesn't completely go away but it is a lower risk than you have anywhere else in the world so currency risks and accounting risks are two risks that you take on when you invest internationally and then you have added expense the cost of vtsax total stock market index fund here in the US is 05% uh Vanguard has great international

### [15:00](https://www.youtube.com/watch?v=-fQtH5jJLU0&t=900s) Segment 4 (15:00 - 20:00)

funds if people are interested in them uh their expense ratios are very low but they're still about three times what btsx is they're run about I think the last time I looked they were 0. 15 or 0. 18 or something like that still incredibly low as expense ratios on funds go but nevertheless more expensive than our btsx but the most important thing is and the reason that I don't personally own International and I don't see the need is we've got it covered when you own vtsax you own about 3600 us companies virtually every publicly traded company in the market and the vast majority of those or your Holdings uh are in the largest companies in the US the What's called the S& P 500 about 80% of vtsax is tilted to towards those large companies and those large companies for the most part are by definition International businesses so if you think of companies like apple or General Motors or caterpillar or Google or Facebook for that matter these are international businesses so when you own the US market you have a significant participation in the growth of the world markets and you own it in the least expensive and the least risky possible way that you can own it now having said all that if somebody came to me and said well you know I get that but I still want to own International I don't think it's a terrible thing to do I just don't think it's a necessary thing to do what do you think about real estate is your house a good investment well this is a little trickier because first of all the value of houses doesn't always rise value of businesses doesn't either but at least your business is in your control the value of your house is a lot of people found out to their sorrow five six years ago um may or may not go up or down and it'll be very little in your control some people say Well yeah if you buy wisely and in the right area etc but sometimes what's the right area today turns out not to be the right area tomorrow so it it's a little more difficult traditionally people say getting mortgages for houses is good debt because they will go up um I am a little more cautious about it and I'm a little and this is really beyond the scope of the book but I'm a little more cautious about the idea of automatically buying houses because it's a good idea I'm not opposed to owning houses what I'm opposed to is the real estate industry propaganda that everybody should own a house you should always own a house and it's the best financial thing you can do in my world owning a house is an expensive Indulgence and there's nothing wrong with expensive indulgences if you can afford them but if you're striving for financial Independence you have to very carefully weigh whether buying a house is going to suit your goal of reaching Financial Independence what do you think about stock picking and investing in individual stocks the problem with individual stocks is that when you buy one and it works it it's there are a few better feelings than then uh analyzing a stock and buying it and then watching it begin to SAR but what I begun to realize more and more over the years and I am a slow learner is that the times that it's worked and soared and it's such a wonderful feeling and the times that it hasn't worked and hasn't gone anywhere or shed has gone down there's been no difference in my analytical abilities or effort so it has been sure luck when it's worked it's not as if individual stocks and actively manage mutual funds can't make you money I actually achieved Financial Independence investing in individual stocks and investing in uh mutual funds that were run by managers that I thought would outperform you can make money doing that I did but index funds are not only easier they are more powerful I would have made more money more easily had I adopted indexing earlier you recommend Vanguard index funds above all others so what is it about Vanguard that makes them unique Vanguard does have a unique U uh unique ownership structure and this again goes back to Jack Bogle who founded it by the way I think Jack Bogle is the closest thing to a uh a secular Saint in

### [20:00](https://www.youtube.com/watch?v=-fQtH5jJLU0&t=1200s) Segment 5 (20:00 - 25:00)

the investment world we can have he's done more for people like you and me for individual investors than anybody else to come along the pike but that uh when he created it created a Vanguard he was very focused on index funds as a concept and low fees that you could enjoy from those index funds but he took it a step further in the way he structured his company he said you know this Vanguard is going to be owned by the funds that operated and what that means is that in fact in effect you and I the people who own shares of the funds own Vanguard through those funds what's important about that is every other Investment Company and in fact the vast majority of companies in general have really you can think of it as three tiers you have uh the owners of the company you have the the itself and then you have the customers of the company and that company has two masters to serve in that in that scenario it has to serve its customers so they keep coming back and are getting value from whatever they're producing but it also has to charge those customers enough extra money to pay the owners because the owners expect to be paid well Vanguard eliminates that now the important thing and one of the questions that I get on on the blog a lot is that uh not every 401k or 403b plan that people have access to in fact very few of them uh utilize Vanguard funds and there are other good fund companies out there like T price and Fidelity and due to competition from Vanguard most of them have index funds and most of their index funds are also again thanks to our friends a Vanguard they've been forced to price them uh at very attractive rates so people have options I don't recommend any of those fund companies if you have the choice though because they're using their index funds and the low fees on their funds has lost leaders to bring you into their family their other funds have much more typical fees and of course they're hoping to migrate you into those funds so my attitude is to stick with Vanguard the company that does it as a core value as opposed to other investment companies that do it as a business strategy could you summarize your core advice to those out there who are wanting to become wealthy and reach Financial Independence if you want to be wealthy and successful in life uh there's really three keys and that's avoid debt uh live below your means and invest the uh the difference hey it's the M fientist again from present day December 2023 and I mentioned at the beginning that I was going to revisit one of my proudest moments as the mad fientist and that's what's coming up next so I just wanted to set it up a little bit and it's my interview with Jim from the Corona virus crash so to set the stage a little bit March 11th 2020 is when Tom Hanks announced that he had covid and the NBA shut down for the season and I think that's when America at least really understood the severity of this pandemic and in the markets it was a really scary week because uh the circuit breakers kicked in on both March 9th and March 12th because uh the drops were so fast and violent so it was a really scary time so on March 13th so the day after the second circuit breaker had tripped up the markets I emailed Jim with these exact words hey Jim hope you're doing well seems like people are really freaking out about the market crash so I was wondering if you'd be interested in having a quick chat to try to calm people down if so we can try to record as soon as possible and then I can push it out as a podcast episode immediately afterwards so Jim replied and said yes absolutely and they were driving uh during that weekend so we arranged it for Sunday so we did the interview on Sunday March 15th and then I released this the very next day March 16th which just so happened to be the single biggest drop that the market took during the entire covid crisis and again the circuit breakers uh halted trading and it ended up being 12. 9% down on the day for the DOW Industrials which is the second biggest percentage drop uh after Black Monday it was an incredibly scary time in the market and I'm so proud not only that we put out the interview that we did that was hopefully very calming and hopefully

### [25:00](https://www.youtube.com/watch?v=-fQtH5jJLU0&t=1500s) Segment 6 (25:00 - 30:00)

helped a lot of you out there not panic and not sell and not do all the crazy things that you probably wanted to do at the time which I know I because thinking back to that interview I can still picture exactly where I was exactly how I felt and how scary everything seemed because it was so unknown everything was just about to lock down in the UK and it was an incredibly scary time and the thought of the entire economy shutting down it was just unprecedented so uh I'm incredibly proud of this interview and the answers that Jim was calm enough and sane enough to make and uh yeah like I said before hopefully it stopped a lot of you from doing anything silly because the market actually bottomed a week later and it's just been up ever since then which again is still so crazy I can't believe it bottomed so quickly and that's the thing you never know when the Bottom's going to be reached and when you're on the upswing that maybe we will never revisit those lows again who knows but it was a crazy time and yeah even listening back to it just gave me weird feelings just because I know the place I was mentally and the country was in and everyone that I knew around me was in at that time and it's just really weird to listen to but as always Jim's a calming voice with really great advice so hopefully you enjoy listening back to it and his advice is just as Timeless as it was back then and quick apology on the audio quality I recorded it with a headset and I think Jim was talking on his phone because like I said it was such a last minute and Rush thing that neither of us had prepared for it so the sound quality isn't the best but I'm glad we decided to rush it out and not wait for good microphones so to get back into it this is my question to Jim is this time different every time there's a bare Market it has the feeling that it's something major and it's something different and it's terrifying and almost if you think about it that's by definition because if it were not those things there would not be a bare market right I mean you know if people didn't feel that way if people weren't scared they wouldn't be panicking and if they weren't panicking they wouldn't be selling off their stocks and by the way creating a great buying opportunity for more level-headed people so by definition every time there's a bare Market or a market crash it's something that feels different feels scary and feels like it's never going to end but it will right and by the way if someday I'm wrong about that then where you're invested will be the least of our problems so let's think about the Corona virus in those terms right if the Corona virus turns out to be the New Black Death and it kills 60% of the population then yeah it's probably going to be a long time before the stock market recovers is that likely to happen I don't think so there's nothing we can do about it if it does happen that we being the average person on the street what's more likely and not the least of for reasons that are that we now have an understanding of The Germ theory of disease as an example we understand basic hygiene which they didn't in the thir 13 1400s so it's unlikely to be something like that and if it's something that runs it its course has passed epidemics have that have scared the market and scared people in general then it'll run its course over whatever period of time that takes and the market will recover we're compensated with higher rates of return in stocks because of ugly times like this and he's exactly right if the stocks if the stock market was always smooth sailing then we wouldn't be compensated with the higher returns than you get over bonds if you invest in the stock market and you want those outsized returns that the market provides you need to understand that bare markets are part of the landscape and you should never be surprised by them any more than if you live in Northern New England you should be surprised by blizzards or if you live in Southern Florida you should be surprised by hurricanes it's part of the territory what did you learn during Black Monday in the 80s that could help investors out there now deal with this crash Black Monday which is still to this day even given the Great Depression even given 0708 even given the drops that we've had now was the single biggest percentage drop in Market history in a day and it was 23 24% as I recall in one day and this is in the days by the way this is obviously before the internet uh before WID spread use of

### [30:00](https://www.youtube.com/watch?v=-fQtH5jJLU0&t=1800s) Segment 7 (30:00 - 35:00)

computers even and it was in those days I had a stock broker as everybody did and I had a job and I was working and I didn't know the market had crashed and at the end of the day I forget why I called Wayne who was my stock broker but it wasn't because of anything going on the market cuz I didn't know and I called him at the end of the day and he and I were kind of friends too and I says how's it going man and there's this long pause at the end of the phone and he's like you're joking right and I could tell from the tone of his voice something bad had happened I said no what what's going on he said Jim we just had the biggest meltdown in history and you know I've had people calling me in panic all day and that's how I first found out and then after that Black Monday that big drop the market continued to grind down slowly but further and further down and at the time I knew all the principles we're talking about it's not like I hadn't heard the stuff I knew what I should do I knew I should stay the course I knew that it was temporary I knew that the market would recover and a couple months later long by December I lost my nerve and I sold and I went to cash and if I didn't sell at the exact bu it was close enough not to matter and of course then the market as it always does began its Relentless rise again and I watched it and I couldn't believe it and I kept expecting it to fall back to where I could buy it lower than what I sold to that and of course that never happened and by the time I got back in it had recaptured all of its losses and posted gains I never forgot that lesson and that lesson is what sustained me in 0 0708 because that was a terrifying time and I'm not sure that if I had not had the experience of 87 that I would have been able to stay the course in 08 not to mention the more minor problems that happened between those two events but you know' 08 was the big one I'm not sure had the fortitude to stick through it which is why I hope that my writings provide people what they need so they don't have to go through that experience but I don't know that that's the case what would you say to someone who's experiencing a crash for the first time as an investor and maybe they're handling it differently than they thought they would what would you say to them and what would your advice be the very first post in my stock series is titled there's a ma major market crash coming and the gist of that post is you need to toughen up cupcake and deal with it ride through it and then in other parts of the stock Series in the book I talk about there's two Financial phases in your life broadly speaking one is when you're building your wealth and you're working and you have earned income which provides cash flow and if you're interested in becoming financially independent you're living on less than you're earning and you're taking part of those earnings that cash flow and you're investing it and ideally you're investing it in a total stock market fund or an S& P 500 fund and you're holding it forever now the fact that you have that cash flow going in on a regular basis Smooths the ride for you and it allows you to take advantage of times like this and so I would say especially to those people those younger people who are working and building their wealth a bare market like this one is a huge gift in fact the best thing that can happen to you when you're building your wealth and investing is that you get to buy shares on sale which is what's going on now so certainly those people should keep investing just as they were before this is a great time to buy stocks on sale now the other side of that coin is when you're in what I call the wealth preservation stage which is when you're living on the portfolio and that's the time when you introduce bonds because you no longer have that earned income cash flow to smooth the ride so you need something else and that's the role bonds can play and that's when you get into your asset allocation I have a post in the stock series about how to choose your asset allocation and what that allocation is between stocks and bonds is a very personal thing that depends on your own situation and your own tolerance for volatility but once you have Bonds in the mix then when the market does something dram dramatic either dramatic on the upside or dramatic on the

### [35:00](https://www.youtube.com/watch?v=-fQtH5jJLU0&t=2100s) Segment 8 (35:00 - 39:00)

downside like we're seeing now your allocation gets out of whack and when you adjust it right now you'd be adjusting it by selling bonds and buying more stock to bring the stock part of it up well now that allows you to buy stock at a bargain price and by the same time when the market goes back up and now the percentage of bonds is lower than you intended it to be you sell some of the stock into the bonds and you're selling at the high so that's the way you deal with volatility rather than panicking and trying to figure out how to time circuit breakers were triggered twice last week is this crash happening faster than most that you remember bare markets almost always happen very fast there's a saying on Wall Street that the stock market uh takes the stairs up and it takes the Express Elevator down and so stocks tend to fall very fast and hard in a bare market and they tend to grind slowly up in Bull markets so there is nothing that unique about this one might be a little faster than some in the past but it's still following the same pattern of these things happen pretty quickly and then when they finally do hit bottom and there's no way to predict when that is then suddenly you know a couple months later people are noticing wow you know this is going back up again bare markets are actually a healthy necessary part of the process and this one is no different the other thing that I would like our listeners to appreciate and I wrote a post back in 201 2017 called time machine and the future return of stocks and basically it was looking at the performance of the stock market from 1975 which happened to be the year that I started investing to 2015 2016 2017 and there about 40 plus years the market on average went up just shy of 12% a year which is an incredible performance I mean just absolutely incredible and I would certainly not suggest to anybody listening that you can expect that going forward but the point of that post is I go through all of the traumas and problems that happened in those 40 years this was not a perfect smooth golden period of time to be an investor and yet the market still performed and so obviously we're going to look back on this moment in time and as there were many moments in time I point out in that post in those 40 years is a difficult moment but that doesn't mean the market isn't going to provide handsome returns over the next couple of decades what would you say to someone who's only now realizing that they've maybe taken on a bit too much risk and they're not prepared for this level of volatility the time to figure out what your investing strategy is what your risk tolerance is what your allocation should be is not in the middle of the hurricane which is where we are now it's when seas are come obviously that's hindsight so I would say to anybody who's panicking at the moment don't do anything understand how you're feeling and learn from the experience and then when things are come and the market has begun to turn around and begun to go up again then revisit your allocation and then make adjustments according to what you learned about yourself not the market because the Market's doing what the market does bare markets are part of the process so there's nothing unique in Market Behavior going on here what you're learning about is how you react to that behavior what your behavior is and after the markets calm down and if you were too aggressive before then you can make adjustments then but don't do anything now hey it's the M FST again from present day December 2023 I think that's a perfect way to finish this episode because markets are back on the rise things are calm again so if you did learn anything about yourself back in the Corona virus crash then now is a great time to re visit that and make sure your allocation is better suited for your risk tolerance and you'll hopefully be able to weather the next crash uh better than you did in 2020 so huge thanks to Jim for joining me all those times over the years and make sure you go check out his new book Pathfinders thank you for listening for all these years I still can't believe it's been over 11 years since I started this thing so thank you so much for listening and I'll catch you in the next one

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*Источник: https://ekstraktznaniy.ru/video/45853*