Lots to learn

[hollowelm]

Hello folks, my name's Jay. I am thrilled to have found this forum. Last year I seriously started considering that FIRE was a possibility with proper planning and dedication. Before that it seemed a distance dream. I only hope I'm not starting too late! I think I have a decent foundation to start from at this point, but I'll let you all assess that.

I'll be 40 this year and have a family of 3. We are very good at living below our means and prefer a simplistic, utilitarian and self-sufficient lifestyle. Our 20 acre farm is paid off and provides most of our food and could provide for all our physical needs if necessary. I spent my early years working on establishing the farm while I had infinite amounts of energy but in the interest of stability I now need to focus on the financial end of things.

We are currently debt free but our financial assets aren't great though. We have about 50K spread between CD's, savings and an ESA for our daughter. I could probably put 40-80K a year into investments.

What I need to learn about is investing. My knowledge is very basic (infantile one might say!) and I would appreciate any recommendations for reading material, websites, books, or threads on here that already have that info (have looked bit haven't seen any). It seems there is so much advice out there to be had that I want to make sure I am starting out on the right foot.

I look forward to contributing where I can but at this point unless you need advice on sustainable land management, small scale farming or self-sufficiency I doubt I have much to offer.

Glad to be here and thank you.

[2017ish]

Welcome! Sounds like you have a very good foundation built.

For investing, I've recommended "If You Can" as a nice introduction; although it is expressly aimed at "kids" in their 20s, it is a good intro, especially if you read the handful of books that he recommends. It is a free downloadable pdf at this link If You Can and Rational Expectations

The Bogleheads site, which many posters here also frequent, has good introduction to investing in its wiki, starting here https://www.bogleheads.org/wiki/Getting_started and here https://www.bogleheads.org/wiki/Bogl...g_start-up_kit

[evilanne]

I couldn't get the pdf from the above link but found it here: https://www.etf.com/docs/IfYouCan.pdf

[MichaelB]

Quote:

Originally Posted by evilanne I couldn't get the pdf from the above link but found it here: https://www.etf.com/docs/IfYouCan.pdf

This is a book by William Bernstein. He has a numbe of books that are of interest, some are free, and you can find PDF and ebook versions at his website If You Can and Rational Expectations

[Blue Collar Guy]

were you paying off your farm all these years? if you can put 40-80k a year in investments now where did it go in the past? just curious. You have a ton to offer , if i was your neighbor id be asking you farming questions for years, i cant even grow a tomato plant let alone be self sufficient . keep the financial plan simple find a asset allocation u and the bride like, dollar cost average this 40-80 thousand a year into it, stick to low cost mutual funds, put it on auto pilot, you will be fine. as a side note a WRITTEN budget that u formulate with ur bride will help keep expenses in control and u will see where ur money goes. i no longer do a written budget i have a sort of budget in my head, im no longer trying to save up a nest egg Good luck sir

[Nodak]

Welcome

[brewer12345]

If you want the short course on investing, it is pretty simple: pick a low cost balanced fund (Vanguard has several to choose from), put money in regularly, ignore any and all market fluctuations. That is about all you really need to know, but of course you can read up as much as you would like.

[UnrealizedPotential]

Welcome to the forum. This is a great place to learn about money and investing.

[Badbreath]

I would also go over to Jim Collin's web sight and read the stock series

Stock Series

[hollowelm]

Quote:

Originally Posted by 2017ish Welcome! Sounds like you have a very good foundation built. For investing, I've recommended "If You Can" as a nice introduction; although it is expressly aimed at "kids" in their 20s, it is a good intro, especially if you read the handful of books that he recommends. It is a free downloadable pdf at this link If You Can and Rational Expectations The Bogleheads site, which many posters here also frequent, has good introduction to investing in its wiki, starting here https://www.bogleheads.org/wiki/Getting_started and here https://www.bogleheads.org/wiki/Bogl...g_start-up_kit

Thanks for the links!

Quote:

Originally Posted by evilanne I couldn't get the pdf from the above link but found it here: https://www.etf.com/docs/IfYouCan.pdf

[hollowelm]

Quote:

Originally Posted by Blue Collar Guy were you paying off your farm all these years? if you can put 40-80k a year in investments now where did it go in the past? just curious. You have a ton to offer , if i was your neighbor id be asking you farming questions for years, i cant even grow a tomato plant let alone be self sufficient . keep the financial plan simple find a asset allocation u and the bride like, dollar cost average this 40-80 thousand a year into it, stick to low cost mutual funds, put it on auto pilot, you will be fine. as a side note a WRITTEN budget that u formulate with ur bride will help keep expenses in control and u will see where ur money goes. i no longer do a written budget i have a sort of budget in my head, im no longer trying to save up a nest egg Good luck sir

Consider me your neighbor BCG and ask away!

The simple answer is, yes. I was focused on building "sweat equity" in the farm when I was younger so I didn't work as much and had a lower income. That and I wanted to be around and more available when my daughter was young. To me land I could support my family on was the best initial and most real investment I could make. I have since grown my contracting business and now need to put away $$ for the future.

[hollowelm]

Quote:

Originally Posted by brewer12345 If you want the short course on investing, it is pretty simple: pick a low cost balanced fund (Vanguard has several to choose from), put money in regularly, ignore any and all market fluctuations. That is about all you really need to know, but of course you can read up as much as you would like.

Good to know because that is essentially my initial plan while I learned more.
Should I wait till a market drop to get started?

[brewer12345]

Quote:

Originally Posted by hollowelm Good to know because that is essentially my initial plan while I learned more. Should I wait till a market drop to get started?

Nope, just put money in every month. Remember, ignore all market fluctuations.

[OldShooter]

Here is what the Nobel Prize winning investment gurus say about investing, summarized in four short videos:

https://youtu.be/TbMjIn1p-i0

https://youtu.be/wqMZm7vP0DU

https://famafrench.dimensional.com/v...investing.aspx

https://famafrench.dimensional.com/v...-managers.aspx

Longer but worthwhile: INVESTORS FROM THE MOON: FAMA | Top1000Funds.com

+1 on the If You Can download. A little longer read: Winning the Loser's Game by Charles Ellis.

I can take the bogleheads site in very small doses. The tutorial material (https://www.bogleheads.org/wiki/Getting_started) can be helpful. The forums tend towards repetition and get a little intense for my taste. YMMV however.

The videos above were taken from here:
Harry Markowitz Interviews
and here:
https://famafrench.dimensional.com/videos.aspx
Both pages offer many more worthwhile videos.

[Walt34]

To start out if nothing else pick a target date fund at Vanguard, Fidelity, or other low-cost place. DO NOT go anywhere near any place like Edward Jones or Ameriprise. Their main interest is to transfer as much money as they can from your wallet to theirs.

A number of books I have read include these:

The Millionaire Teacher by Andrew Hallam
How a Second Grader Beats Wall Street by Allan S. Roth

These first two are the ones I absolutely recommend for beginners.

I also have read these:

Predictably Irrational by Dan Ariely – I found this very interesting!

The Four Pillars of Investing by William J. Bernstein

Why Smart People Make Big Money Mistakes by Gary Belsky & Thomas Gilovich

Your Money & Your Brain by Jason Zweig

The Investor’s Manifesto Preparing for Prosperity, Armageddon, and Everything in Between by William J. Bernstein

A Random Walk Down Wall Street by Burton G. Malkiel

And if you really want to get deep into behavior issues with money– Thinking, Fast and Slow by Daniel Kahneman, the only psychologist to win a Nobel Prize in Economics. It’s probably more than you want to get into but I found it fascinating. It’s also a rather thick book.

[Blue Collar Guy]

Quote:

Originally Posted by hollowelm Good to know because that is essentially my initial plan while I learned more. Should I wait till a market drop to get started?

thank you, i look forward to our conversations.

[Lawrencewendall]

Quote:

Originally Posted by Walt34 To start out if nothing else pick a target date fund at Vanguard, Fidelity, or other low-cost place. [/FONT]

I put some money in a target date (2025) with Fidelity just to see how they fared versus my own picks. It is up 75% since 2009! I have some higher but a lot lower. Target dates are not always bad but there is stuff out there equal if not better. YMMV

[Badbreath]

Fidelity target index fund is what you should be looking at not just the Fidelity target fund.

[Mdlerth]

Quote:

Originally Posted by hollowelm I'll be 40 this year... We are very good at living below our means and prefer a simplistic, utilitarian and self-sufficient lifestyle...

You will encounter some kindred spirits in this Brit-com about a 40-year-old couple who dive into a self-sufficient lifestyle. It holds up well considering it, too, is 40 years old!

http://https://www.amazon.com/Good-N.../dp/B000784WKO

Welcome to the forum.

[38Chevy454]

Welcome to the forum. I agree that invest regular and consistent, in some low-cost widely held mutual fund type accounts. Just keep doing that, ignoring what the market does. Start now. The best thing you will find out is the magic of compounding. The earlier you start the better compounding works. Repeat: start the regular consistent savings now.

I presume you are considered a self-employed farmer. You can still do a pre-tax IRA for some taxable income savings. If your tax rate is lower consider Roth IRA, it is after tax money but grows tax free.Also good to have some regular after-tax investment account savings, to cover unexpected expenses or to provide some income money in early retirement that will be able to withdraw without significant taxes due.

Continue the LBYM lifestyle, and the savings, and you will make your early retirement goal.