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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: RadicalPersonalFinance on October 09, 2014, 12:54:23 PM

Title: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on October 09, 2014, 12:54:23 PM
If you've been around here in the forums for a while, you know we have some awesome moderators!

If you've appreciated @arebelspy's contributions to topics, you might like to know that I coaxed him into coming on my podcast (Radical Personal Finance) to answer the most frequently asked questions about early retirement!

We intended to cover about 8 of them in the episode. We wound up discussing only one: Should I invest in stocks or real estate to fund early retirement?

If you're interested, check it out at http://radicalpersonalfinance.com/78/ I was thrilled that he was willing to come on!

Let us know if you like it...we'd like to do more in the future to finish the list.

Also, let me know what other questions you think should be addressed in this way. Here's the list I have right now:


Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Bob W on October 09, 2014, 01:00:49 PM
How about one on why not to do an IRA or 401?  If one invests in real estate is one reason.   If one invests in companies by owning good company stock like Buffet is another.   Can IRAs and 401s be willed to grandkids at purchase price cost basis?    Aren't there mandatory withdrawals on those things.  What will the tax rate most likely be in 2034?  Less or more?   
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Paul der Krake on October 09, 2014, 01:02:02 PM
That's dynamite. Listening now.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: sheepstache on October 09, 2014, 01:06:38 PM
Great idea!

But I have a strong impression of what ARS must sound like based on his "voice" in his posts; I don't know if I can deal with the real thing. It's like when you read a book and then can't deal with the casting of the movie. I'll be like, "Man, they should have gotten someone different to play him."
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Lans Holman on October 09, 2014, 01:17:20 PM
Some version of the eternal "I know you shouldn't try to time the market, but it's at record highs right now..."
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: swiper on October 09, 2014, 01:22:03 PM
good guy this ARS
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on October 09, 2014, 02:30:19 PM
Great idea!

But I have a strong impression of what ARS must sound like based on his "voice" in his posts; I don't know if I can deal with the real thing. It's like when you read a book and then can't deal with the casting of the movie. I'll be like, "Man, they should have gotten someone different to play him."

Don't worry; I had Fran Drescher do the voice over for me, so it'll match up exactly with what you picture.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on October 09, 2014, 03:12:04 PM
The voice wasn't too distracting to me. But I wasn't sure what to make of the giant beard on his Skype picture! :)

And thank you Lans and Bob for the question ideas...those are good ones!
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Cheddar Stacker on October 09, 2014, 03:29:01 PM
Thanks 7years/Joshua and arebelspy/Joe. Very long, but only because it's obvious you're both passionate and know a lot about this stuff. I enjoyed it.

Quote from: arebelspy
I don't know where to plug in a hammer.

I've never heard that one before. That was worth the price of admission for me.

Possible future topic:
Graham Cracker - Is it a Cookie or Cracker?
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: sheepstache on October 09, 2014, 03:54:28 PM
Great idea!

But I have a strong impression of what ARS must sound like based on his "voice" in his posts; I don't know if I can deal with the real thing. It's like when you read a book and then can't deal with the casting of the movie. I'll be like, "Man, they should have gotten someone different to play him."

Don't worry; I had Fran Drescher do the voice over for me, so it'll match up exactly with what you picture.

Perfect.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: little_owl on October 09, 2014, 04:09:04 PM
Most important learning....it's A Rebel Spy!   Ahhhhhhh, makes sense now :)
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: mcneally on October 09, 2014, 04:23:47 PM
From the bulleted list I'd be most interested in is 'what withdraw rate is safe enough?' An episode on how to account for lifetime healthcare costs for sub 50 REs would be a good one. I also think it would be really cool if you did an episode stringing together brief discussions with numerous people pursuing FI(RE) about their post FI plans. FWIW I've listened to many but not all of the RPF episodes. 
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Paul der Krake on October 09, 2014, 04:34:40 PM
Dammit, every time I read or listen to ARS for more than a couple minutes I get the itch to get into RE and start writing checks. :(

Great show guys.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Spartana on October 09, 2014, 04:39:41 PM
Great idea!

But I have a strong impression of what ARS must sound like based on his "voice" in his posts; I don't know if I can deal with the real thing. It's like when you read a book and then can't deal with the casting of the movie. I'll be like, "Man, they should have gotten someone different to play him."

Don't worry; I had Fran Drescher do the voice over for me, so it'll match up exactly with what you picture.

Perfect.
I was hoping for the Darth Vader voice over myself. Maybe it's all that heavy breathing when talking about investments that I like :-)!

Looking forward to listening to the first, and hopefully not last, podcast. I don't have any suggestions for future discussions though.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on October 09, 2014, 06:01:09 PM

Great idea!

But I have a strong impression of what ARS must sound like based on his "voice" in his posts; I don't know if I can deal with the real thing. It's like when you read a book and then can't deal with the casting of the movie. I'll be like, "Man, they should have gotten someone different to play him."

Don't worry; I had Fran Drescher do the voice over for me, so it'll match up exactly with what you picture.

Perfect.
I was hoping for the Darth Vader voice over myself. Maybe it's all that heavy breathing when talking about investments that I like :-)!

Looking forward to listening to the first, and hopefully not last, podcast. I don't have any suggestions for future discussions though.

It's hard to pull off heavy breathing without sounding creepy.

So I try to save it for special occasions.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: lifejoy on October 09, 2014, 11:36:27 PM
Duuuude this makes my night! Thanks!
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Beric01 on October 10, 2014, 12:43:22 AM
ARS: didn't realize you were a teacher! I'm actually more similar to you than I thought - I also plan to slow travel and have even considered teaching English as a supplemental income strategy. Any thoughts on these topics? If you have some past posts on these that's cool too!

Also, I appreciate your thoughts on real estate! Definitely going to think more on this.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Spartana on October 10, 2014, 01:16:27 AM

Great idea!

But I have a strong impression of what ARS must sound like based on his "voice" in his posts; I don't know if I can deal with the real thing. It's like when you read a book and then can't deal with the casting of the movie. I'll be like, "Man, they should have gotten someone different to play him."

Don't worry; I had Fran Drescher do the voice over for me, so it'll match up exactly with what you picture.

Perfect.
I was hoping for the Darth Vader voice over myself. Maybe it's all that heavy breathing when talking about investments that I like :-)!

Looking forward to listening to the first, and hopefully not last, podcast. I don't have any suggestions for future discussions though.

It's hard to pull off heavy breathing without sounding creepy.

So I try to save it for special occasions.
Sometimes creepy is good!
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: lifejoy on October 10, 2014, 01:26:58 AM
Just finished listening. Really well done; I can't wait for part two! Thanks so much for putting in all the hard work and for being such great contributors to all this excellent knowledge that is out there :D
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: lifejoy on October 10, 2014, 01:29:03 AM
Suggestion for question: some version of, "I'm sooo mustachian, BUT can I just buy this one thing???!"
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: GuitarStv on October 10, 2014, 05:31:46 AM
Am I the only one who reads "ARS" as arse and then wonders why everyone has such a low opinion of one of our moderators?
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: lizzzi on October 10, 2014, 06:03:31 AM
A Rebel Spy. A-R-S. Good grief, Guitar Stv.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on October 10, 2014, 07:20:37 AM

A Rebel Spy. A-R-S. Good grief, Guitar Stv.

Actually, I think the letters lining up is just a coincidence. It was created organically as a nicer way to say arse.  :(
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on October 10, 2014, 08:07:22 AM
Thanks for all the positive feedback everyone (especially you, libraryjoy!).

I initially declined to do the interview, because I don't think my story is that interesting, but I did like the idea of a "common FAQ" type podcast.

Glad everyone seemed to enjoy it.  Hope my constant coughing wasn't a distraction (getting over a cold; I haven't listened so I don't know how bad it was).

Possible future topic:
Graham Cracker - Is it a Cookie or Cracker?

That'll be a short podcast.  Cookie. Done, next question.  ;)

Some version of the eternal "I know you shouldn't try to time the market, but it's at record highs right now..."

Good idea!

Suggestion for question: some version of, "I'm sooo mustachian, BUT can I just buy this one thing???!"

That's a good one too!

ARS: didn't realize you were a teacher! I'm actually more similar to you than I thought - I also plan to slow travel and have even considered teaching English as a supplemental income strategy. Any thoughts on these topics? If you have some past posts on these that's cool too!

Yup, the wife teaches high school and I teach elementary.

I'm sure I've mentioned teaching (and slow travel) lots of times, but no comprehensive posts on the topics.  What specifically were you wondering?
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: ender on October 10, 2014, 11:13:10 AM
This is going to make me want to buy real estate.

I've already been on the fence about this for a while and every time I hear/read anything about it I always seem to want to get started and explore it.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on October 10, 2014, 11:19:00 AM
This is going to make me want to buy real estate.

I've already been on the fence about this for a while and every time I hear/read anything about it I always seem to want to get started and explore it.

I didn't even get into many of the benefits of real estate, or mention any returns, since it was just comparing RE to Index funds, and a lot of the perks of RE weren't relevant in that comparison.  I bet I could make a good pitch that would really make you want to buy RE!  ;)
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Spartana on October 10, 2014, 12:18:02 PM
This is going to make me want to buy real estate.

I've already been on the fence about this for a while and every time I hear/read anything about it I always seem to want to get started and explore it.
It makes me think about keeping my paid off house in a HCOL area and renting it while I travel instead of selling it, and then maybe buy another and rent that out, etc.... Always seemed like too much work and worry for lazy worry wart me but the money....um re-evaluating. Damn A Rebel Spy you're making me think, and that always hurts :-)!

Idea for a podcast - although maybe not inline with finances so not applicable here - but there have been several threads along the lines of "what's there to do in early retirement? I'll be bored doing nothing all day long. I might hate it and want to go back to work", etc... Still seems that a lot of people have the mind set that early retirement means you spend your days sitting in a rocking chair waiting for the Metamucil to kick in. 
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on October 10, 2014, 12:20:14 PM
Idea for a podcast - although maybe not inline with finances so not applicable here - but there have been several threads along the lines of "what's there to do in early retirement? I'll be bored doing nothing all day long. I might hate it and want to go back to work", etc... Still seems that a lot of people have the mind set that early retirement means you spend your days sitting in a rocking chair waiting for the Metamucil to kick in.

Good idea.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Beric01 on October 10, 2014, 12:28:08 PM
Yup, the wife teaches high school and I teach elementary.

I'm sure I've mentioned teaching (and slow travel) lots of times, but no comprehensive posts on the topics.  What specifically were you wondering?

I guess I just have a couple concerns.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on October 10, 2014, 12:34:47 PM
Idea for a podcast - although maybe not inline with finances so not applicable here - but there have been several threads along the lines of "what's there to do in early retirement? I'll be bored doing nothing all day long. I might hate it and want to go back to work", etc... Still seems that a lot of people have the mind set that early retirement means you spend your days sitting in a rocking chair waiting for the Metamucil to kick in.

We have a separate conversation going on at http://forum.mrmoneymustache.com/mustachianism-around-the-web/radical-personal-finance-podcast/ where I've been asked to bring on someone who's lazy and FI. The problem is that I can't get anyone to return my emails! :)
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Spartana on October 10, 2014, 12:40:50 PM
Idea for a podcast - although maybe not inline with finances so not applicable here - but there have been several threads along the lines of "what's there to do in early retirement? I'll be bored doing nothing all day long. I might hate it and want to go back to work", etc... Still seems that a lot of people have the mind set that early retirement means you spend your days sitting in a rocking chair waiting for the Metamucil to kick in.

We have a separate conversation going on at http://forum.mrmoneymustache.com/mustachianism-around-the-web/radical-personal-finance-podcast/ where I've been asked to bring on someone who's lazy and FI. The problem is that I can't get anyone to return my emails! :)
Ha Ha - Yeah we're all out there busy doing nothing :-)! Thanks for the link.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on October 10, 2014, 12:48:21 PM
  • Slow-travel - how do you expect to get to know the locals? Only move to places you already know someone, or just hope to make friends once you get there? This is actually why I'm interested in a job like teaching or volunteering - gives you more options to meet people, but with FI the low pay doesn't matter.

Meet people.

We're not naturally very outgoing, extroverted people.  It's something we're working on.  But also, we don't necessarily need to meet a ton of people and know everybody.  Think about how an introverted local might live.  ;)

From the many travel blogs we read, most of them have no problems whatsoever meeting friendly locals when they live in a place for awhile (heck, a lot of times even when just passing through).

But yes, it is something we're actively working on improving.

  • Teaching English as a back-up job career - how do you expect to get/be qualified for a local job? Of course, I just realized that because you're currently a credentialed teacher (with I'm sure a nice resume), that's probably different than someone like me who has no teaching experience.

Yes, it's a pretty solid fallback plan for us, as we'll have been credentialed teachers (though it will have expired by then) with nearly a decade of experience, and Master's Degrees in teaching.  My wife specifically teaches English at the high school and community college level.  So when recruiters are choosing people for those type of jobs, we're pretty much ahead of all other candidates (especially ones who might just have a bachelor's in an unrelated field).  Those type of people can get teaching jobs too, but we'll likely have more choice and better benefits (signing bonuses, etc.).

It's an okay backup plan for most people, but we have some advantages there that make it really advantageous for us if we ever do need to earn more money.

Plus we might just do it for fun; we both like teaching quite a bit. 
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Cheddar Stacker on October 10, 2014, 12:56:31 PM
Idea for a podcast - although maybe not inline with finances so not applicable here - but there have been several threads along the lines of "what's there to do in early retirement? I'll be bored doing nothing all day long. I might hate it and want to go back to work", etc... Still seems that a lot of people have the mind set that early retirement means you spend your days sitting in a rocking chair waiting for the Metamucil to kick in.

We have a separate conversation going on at http://forum.mrmoneymustache.com/mustachianism-around-the-web/radical-personal-finance-podcast/ where I've been asked to bring on someone who's lazy and FI. The problem is that I can't get anyone to return my emails! :)

Irony seems to be the theme today.

Podcast topic (forgive me if you've done it, I haven't been an avid listener yet) - Taxes. Not just basics, but certain complex strategies. One I've been kicking around a lot lately but haven't been able to put into words properly to post about yet:

Carrying a big mortgage pre and post FIRE, either personal or rental property, can reduce ordinary taxable income.
Investing excess cash into qualified investment income vehicles could create a tax hedge of sorts.

Once again, I didn't explain it well. It's in my head, but I can't get it out properly. It's really just another angle on the "Kill Debt vs. Invest" argument, but it adds another wrinkle I haven't heard mentioned much. Why pay off a 15-28% tax deduction while simultaneously forgoing a 0-15% tax?

It's not as clear on a personal residence due to the itemized/standard hurdle, and the fact that most FIREman carry low expenses, but on rentals this could be a very powerful tool. Get all the debt you can, reduce your rental income as much as possible, take all positive cash flow and rather than pay down rental debts create a pipeline of Qualified Dividends/L-Term Cap Gains.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Beric01 on October 10, 2014, 12:58:33 PM
Idea for a podcast - although maybe not inline with finances so not applicable here - but there have been several threads along the lines of "what's there to do in early retirement? I'll be bored doing nothing all day long. I might hate it and want to go back to work", etc... Still seems that a lot of people have the mind set that early retirement means you spend your days sitting in a rocking chair waiting for the Metamucil to kick in.

We have a separate conversation going on at http://forum.mrmoneymustache.com/mustachianism-around-the-web/radical-personal-finance-podcast/ where I've been asked to bring on someone who's lazy and FI. The problem is that I can't get anyone to return my emails! :)
Ha Ha - Yeah we're all out there busy doing nothing :-)! Thanks for the link.

Haha - the entire reason why I'm working so hard towards FI is because I'm lazy! Laziness can motivate one to do some incredible things - I've never been so motivated or changed so much about my lifestyle as when I discovered MMM/FIRE. Hope to join you soon enough! :-)

  • Slow-travel - how do you expect to get to know the locals? Only move to places you already know someone, or just hope to make friends once you get there? This is actually why I'm interested in a job like teaching or volunteering - gives you more options to meet people, but with FI the low pay doesn't matter.

Meet people.

We're not naturally very outgoing, extroverted people.  It's something we're working on.  But also, we don't necessarily need to meet a ton of people and know everybody.  Think about how an introverted local might live.  ;)

From the many travel blogs we read, most of them have no problems whatsoever meeting friendly locals when they live in a place for awhile (heck, a lot of times even when just passing through).

But yes, it is something we're actively working on improving.

I guess I'm very similar to you. I won't stress as much about this then. I can be both introverted and outgoing depending on my attitude.

  • Teaching English as a back-up job career - how do you expect to get/be qualified for a local job? Of course, I just realized that because you're currently a credentialed teacher (with I'm sure a nice resume), that's probably different than someone like me who has no teaching experience.

Yes, it's a pretty solid fallback plan for us, as we'll have been credentialed teachers (though it will have expired by then) with nearly a decade of experience, and Master's Degrees in teaching.  My wife specifically teaches English at the high school and community college level.  So when recruiters are choosing people for those type of jobs, we're pretty much ahead of all other candidates (especially ones who might just have a bachelor's in an unrelated field).  Those type of people can get teaching jobs too, but we'll likely have more choice and better benefits (signing bonuses, etc.).

It's an okay backup plan for most people, but we have some advantages there that make it really advantageous for us if we ever do need to earn more money.

Plus we might just do it for fun; we both like teaching quite a bit.

Yeah, it sounds like you're set. I just realized though that my best fallback is cutting my expenses still further, so I'm probably over-worrying about this one as well. The limited chances I've had to teach/tutor I've really enjoyed this though, so I might look into some online credentials if need be.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on October 10, 2014, 01:01:16 PM
He does have some good tax stuff.  I listened to one yesterday on adjusting the timing of your income.

As a CPA, it may not be super useful to you, but then again, it might.  :)
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on October 10, 2014, 01:03:29 PM
Haha - the entire reason why I'm working so hard towards FI is because I'm lazy!

Giant +1 from me! :)

I just realized though that my best fallback is cutting my expenses still further, so I'm probably over-worrying about this one as well. The limited chances I've had to teach/tutor I've really enjoyed this though, so I might look into some online credentials if need be.

Yeah, going to live in Southeast Asia for a year (which we're planning on anyways, but staying in that region for longer, instead of, say, just three months) is another fallback plan.  We could probably easily live on 15-20k there, which is less than half our FIRE budget, if necessary.

Having multiple contingency plans is a good thing.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Cheddar Stacker on October 10, 2014, 01:04:31 PM
He does have some good tax stuff.  I listened to one yesterday on adjusting the timing of your income.

As a CPA, it may not be super useful to you, but then again, it might.  :)

I plan to dig in over at RPF soon. I've only listened to this one podcast and perused some topics. I just thought this thread might be a good place to throw this strategy into the mix since it already has a lot of eyes on it, and since 7years is looking for topics?
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on October 10, 2014, 01:35:06 PM
Absolutely, keep em coming, I'm sure, I just wanted to mention that.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Beric01 on October 10, 2014, 01:58:53 PM
Yeah, going to live in Southeast Asia for a year (which we're planning on anyways, but staying in that region for longer, instead of, say, just three months) is another fallback plan.  We could probably easily live on 15-20k there, which is less than half our FIRE budget, if necessary.

Having multiple contingency plans is a good thing.

I'm actually also highly interested in that region! You can get permanent residencies in Malaysia and live for incredibly cheap, for example. Lots of other good options in that region as well. As a single person, I can live for better than the US on $10K/year or less (half my FIRE budget).
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: ambimammular on October 10, 2014, 07:51:53 PM
't
This is going to make me want to buy real estate.

I've already been on the fence about this for a while and every time I hear/read anything about it I always seem to want to get started and explore it.

+1

Thanks for introducing me to radical personal finance, I can't get enough!

Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: flashpacker on October 10, 2014, 08:15:21 PM
Lucky me got to meet Arebelspy recently since we both live in Vegas, and he is just as awesome in person as online :-)
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: richcatpoorcat on October 11, 2014, 09:37:54 AM
Awesome show guys! I too was blown away to learn that arebelspy is said the way that it is... makes perfect sense now though.
Hope you guys do a few more of these.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: oldtoyota on October 11, 2014, 10:18:31 AM
Awesome! Congrats, ARS!

I will listen soon. Not sure if this was covered in the podcast or not, yet I think it is SO important to mention the "simple math to early retirement. That was a huge learning for me personally and made me realize I really could do this. =-)

Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on October 11, 2014, 11:30:21 AM

Awesome! Congrats, ARS!

I will listen soon. Not sure if this was covered in the podcast or not, yet I think it is SO important to mention the "simple math to early retirement. That was a huge learning for me personally and made me realize I really could do this. =-)

Yeah, that's a good one, I guess phrased in the form of a question it'd be something about how is ER possible, especially if you don't make six figures+
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: lifejoy on October 11, 2014, 11:42:53 AM

Idea for a podcast - although maybe not inline with finances so not applicable here - but there have been several threads along the lines of "what's there to do in early retirement? I'll be bored doing nothing all day long. I might hate it and want to go back to work", etc... Still seems that a lot of people have the mind set that early retirement means you spend your days sitting in a rocking chair waiting for the Metamucil to kick in.

Good idea.

+1
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: bateloomer on October 11, 2014, 12:18:53 PM
I'd like to learn about SRI- Socially Responsible Investing. 
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on October 11, 2014, 12:27:17 PM
I'd like to learn about SRI- Socially Responsible Investing.

That's a good idea for it's own show.  Not a FAQ, per se, but an interesting question.

I bet Joshua could find someone who runs a blog around that topic to interview...
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: FiveSigmas on October 11, 2014, 01:32:40 PM
I listened to the show a couple nights ago and really enjoyed it. Thanks, 7years and ARS, for putting it together.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Exhale on October 11, 2014, 02:22:56 PM
An episode on how to account for lifetime healthcare costs for sub 50 REs would be a good one.

+1
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on October 11, 2014, 02:33:18 PM

I listened to the show a couple nights ago and really enjoyed it. Thanks, 7years and ARS, for putting it together.

Didn't you get the live version about 5 months ago? :D
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: FiveSigmas on October 11, 2014, 06:41:03 PM

I listened to the show a couple nights ago and really enjoyed it. Thanks, 7years and ARS, for putting it together.

Didn't you get the live version about 5 months ago? :D

Haven't you ever re-read a good book? ;-)
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on October 11, 2014, 08:39:46 PM
That was a nice thing to say!
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on October 12, 2014, 05:53:49 AM
Podcast topic (forgive me if you've done it, I haven't been an avid listener yet) - Taxes. Not just basics, but certain complex strategies. One I've been kicking around a lot lately but haven't been able to put into words properly to post about yet:

Carrying a big mortgage pre and post FIRE, either personal or rental property, can reduce ordinary taxable income.
Investing excess cash into qualified investment income vehicles could create a tax hedge of sorts.

Once again, I didn't explain it well. It's in my head, but I can't get it out properly. It's really just another angle on the "Kill Debt vs. Invest" argument, but it adds another wrinkle I haven't heard mentioned much. Why pay off a 15-28% tax deduction while simultaneously forgoing a 0-15% tax?

It's not as clear on a personal residence due to the itemized/standard hurdle, and the fact that most FIREman carry low expenses, but on rentals this could be a very powerful tool. Get all the debt you can, reduce your rental income as much as possible, take all positive cash flow and rather than pay down rental debts create a pipeline of Qualified Dividends/L-Term Cap Gains.

This strategy should certainly work excellently to a point. The nice thing about your strategy is that you could swap out the properties from time to time with like-kind exchanges and avoid paying tax on the capital gain during your lifetime. Then, the properties could be positioned to received their step-up in basis at death and as long as you avoid the transfer (estate, GST, & gift) taxes, your heirs would inherit them tax free.

The challenge is whether it's worth it to go to all the trouble just to avoid taxes and also whether there's an opportunity cost of higher profits you could be earning. It's very dependent on the actual situation and the reason for investment.

If you're interested, so far, I've done three shows on the academic framework around tax planning:
http://radicalpersonalfinance.com/15/ "How to Eliminate Your Taxes! The Basic Foundation You Need to Understand To Do Good Tax Planning RPF0015"
http://radicalpersonalfinance.com/36/ "Major Tax Planning Strategy #1 — Adjusting the Timing of Income for Maximum Effect RPF0036"
http://radicalpersonalfinance.com/41/ "Major Tax Planning Strategies #2 and #3 — Shifting and Converting Income From High Rates to Low Rates RPF0041"

I also did one on the structure of the 1040...I really struggled with it though and it wasn't nearly as good as I wanted: http://radicalpersonalfinance.com/53/ "How Does My Tax Return Work? An Explanation to the Structure of IRS Form 1040 RPF0053"

And then, on the radical side, there are a few fun interviews and ancillary topics so far:
http://radicalpersonalfinance.com/67/ "If You’re Tired of Paying Heavy Taxes, Why Not Move? Interview with Andrew Henderson, Founder of www.nomadcapitalist.com and the Nomad Capitalist Report RPF0067"
http://radicalpersonalfinance.com/17/ "Should I Stop Paying My Taxes On Moral Grounds? An Interview About War Tax Resistance with David Gross, author of “99 Tactics of Successful Tax Resistance Campaigns” RPF0017"
http://radicalpersonalfinance.com/39/ "What Can We Learn From the 400 Highest Income Tax Returns? Profits Are Better Than Wages! RPF0039"

I have many more planned, especially with details. Now that I've established a foundation (I think), I can start working through all kinds of fun strategies.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on October 12, 2014, 05:58:08 AM
I'd like to learn about SRI- Socially Responsible Investing.

That's a good idea for it's own show.  Not a FAQ, per se, but an interesting question.

I bet Joshua could find someone who runs a blog around that topic to interview...

I've gotten a lot of interest in SRI and I'm planning to do a show on it. I'd like to do it in an interview format though as I'm not an expert.

Do any of you know of someone who might be a good fit in this area? If so, let me know.

I've got some people I can reach out to in the mutual fund wholesale business and also in the philanthropic world...but if you all know someone awesome, that will help!

Also, I took a stab at answering the question and just giving a few thoughts around the subject in a recent Q&A show. The segment on SRI starts at 1:43:15
http://radicalpersonalfinance.com/75/ "Friday Q&A: Calculating Life Insurance for Special Needs Planning, How to Get Started as a CFP, Another Mistake I Made, What To Do When You’ve Done All You Can, Ethical Investing & 4% Rule Clarifications RPF0075"
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: meadow lark on October 12, 2014, 11:28:13 AM
Excellent podcast - ARS, I loved hearing your voice again!
And I am glad to find a source of excellent podcasts!  I like to listen while I clean the house (since I don't enjoy cleaning.)
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: brooklynguy on October 12, 2014, 12:09:02 PM
Just want to add my thanks to Joshua and Joe for doing this podcast, which was excellent!  It's great to be able to put a voice to the name and face.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on October 23, 2014, 11:26:48 AM
Arebelspy and I are scheduled to record the next show in this series...of the list, what topic do you all want us to cover next?
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Cheddar Stacker on October 23, 2014, 11:34:50 AM
Here's your list re-arranged in my preferred order for what it's worth:


But based on the last podcast, choose wisely because you might only get through one topic. ; )
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on October 23, 2014, 11:38:22 AM
But based on the last podcast, choose wisely because you might only get through one topic. ; )

Heh.  When Joshua, or I, gets excited about a topic, we can go on for quite awhile.  :)

Maybe we could do a "fire round" scenario where we try to answer rapid fire (or capped at 5 minutes or something).  Or maybe we skip that, and just explore the topic.

/shrug, YMMV, etc. 
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Cheddar Stacker on October 23, 2014, 11:41:57 AM
But based on the last podcast, choose wisely because you might only get through one topic. ; )

Heh.  When Joshua, or I, gets excited about a topic, we can go on for quite awhile.  :)

Maybe we could do a "fire round" scenario where we try to answer rapid fire (or capped at 5 minutes or something).  Or maybe we skip that, and just explore the topic.

/shrug, YMMV, etc.

I think you know this, but that was not a criticism at all, I thoroughly enjoyed listening and I like conversation to flow wherever it wants. An agenda is like a budget or a forecast, it's just a plan and in reality it will not work out that way. Thanks for taking the time to discuss guys.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: bo_knows on October 23, 2014, 12:25:18 PM
Finally got around to listening to this marathon podcast.  Great stuff in there.  Still makes me sad to be in my particular real estate market :(

Joshua, you have an excellent "radio voice".   Good to hear Joe's voice as well haha.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on October 23, 2014, 12:35:48 PM
Still makes me sad to be in my particular real estate market :(

My real estate market doesn't work numbers-wise either, unfortunately.   I wish it did.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: brooklynguy on October 23, 2014, 12:51:53 PM
Maybe this should take a back seat to the more substantive topics, but I would be interested in hearing ARS's perspective on the growth and evolution of the early retirement community (especially since he seems to be an omnipresent member of it).
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on October 23, 2014, 01:26:00 PM
The lightning round is an interesting idea...but we need to cover the in-depth treatment first!
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on October 23, 2014, 01:33:16 PM
Maybe this should take a back seat to the more substantive topics, but I would be interested in hearing ARS's perspective on the growth and evolution of the early retirement community (especially since he seems to be an omnipresent member of it).

That'd be a good question for Nords, IMO (who should be added to Joshua's interview list).  I mean, I have some thoughts on it, but he's been around it years longer than I have.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Nords on October 26, 2014, 11:18:26 AM
Maybe this should take a back seat to the more substantive topics, but I would be interested in hearing ARS's perspective on the growth and evolution of the early retirement community (especially since he seems to be an omnipresent member of it).

That'd be a good question for Nords, IMO (who should be added to Joshua's interview list).  I mean, I have some thoughts on it, but he's been around it years longer than I have.
I'm happy to show up for anyone's podcast.  Being a guest is the easy part!

I didn't get started on ER forums until 2002, and I didn't put up my first post until 2004.  However The Motley Fool used to have a busy financial independence forum in the 1990s.  TMF shot themselves in the head by starting a paywall, so everyone in the TMF ER forums decamped for a number of other forums.  A few of you MMM members were there and may wish to post your own recollections of those pioneering days.

John Greaney's RetireEarlyHomePage.com was one of the first sites to appear out of the interest generated by "Your Money Or Your Life", and it accelerated after TMF's paywall.  He started it in April 1996 (as you can tell from its layout) and he still puts up quarterly posts:
http://retireearlyhomepage.com/chronidx.html
Greaney put together a ER spreadsheet which later evolved into FIRECalc.
Greaney has largely disappeared from the ER public to enjoy his own life.  From what I can see of his online activity, most of it revolves around a macabre and personal obsession with a notorious troll.  I'll say no more about that because it just puts a spotlight on the problem. 

Raddr (a radiologist) did some popular research in 2004 and started his own forum which is still in business:
http://raddr-pages.com/research/
http://www.raddr-pages.com/forums/
His most popular thread is the hapless Y2K retiree who blithely follows the 4% SWR no matter what:
http://www.raddr-pages.com/forums/viewtopic.php?f=2&t=1208&hilit=Y2K
That withdrawal rate has risen over 10% for the last three years, and the portfolio will probably not recover.
Note:  Nobody blithely follows the 4% SWR.  The thread is intended to demonstrate how easy it is to detect the problem years in advance and adjust as necessary.

Morningstar also ran a number of ER forums (maybe they still do, but they were terrible), and one of the more popular ones was Vanguard Diehards.  In the mid-2000s the notorious troll began posting there and M* was very slow to moderate him.  M* also had a number of site administration problems, so nearly a third of those posters broke away to form Bogleheads.org.  One of its most valuable assets is the Bogleheads Wiki.

One day a co-worker of "Dory36" was retiring, and someone jokingly taped a printout from REHP to the co-worker's office door.  Dory noticed that and joined the TMF and REHP forums, eventually starting his own in 2002.  Here's a history of the ensuing chaos:
http://www.early-retirement.org/forums/f32/the-history-of-early-retirement-org-53657.html
Here's the first post on E-R.org:
http://www.early-retirement.org/forums/f29/retirement-afloat-13853.html

Believe it or not, Dory used to run E-R.org with only himself as a moderator-- via a cell phone from his boat for an hour or two in the afternoons.  By 2005 the forum had grown from a quiet neighborhood bar to a raucous Studio54, so a half-dozen of us formed its first moderator team.  A few of us original E-R.org moderators still stay in touch on a private forum nicknamed "The Bar". 

One of the early E-R.org posters, Bob Clyatt, was newly ER'd but interested in the idea of semi-retirement.  In 2005 he wrote "Work Less, Live More" with a lot of feedback from us other posters.  Bob created one of the first variable-withdrawal schemes, the 4%/95% system which leads to a higher overall SWR (perhaps 4.5%).  Bob is still happily retired and a world-class sculptor (his high-school avocation) near NYC: http://www.clyattsculpture.com/  He rarely posts on E-R.org these days.

Dory took Greaney's ER spreadsheet and programmed FIRECalc, eventually growing it to v3.0.  In 2007 he sold both the E-R.org forums and FIRECalc to an entrepreneur who runs a collection of various forums.  Dory is still happily ER'd today although he's a partner in a web design firm.  MMM may work on houses, but Dory works on websites and spoils his grandkids.

Bob's WLLM project led to a side discussion on E-R org about how somebody should write a book for military ERs.  The "REWahoo!" character who compiled that E-R.org history linked above is a military veteran and a big contributor to Chapter 6 of The Military Guide to Financial Independence and Retirement.  He's also a good friend. 

E-R.org has been a life-changing experience for me in more ways than the book and the blog.  I've met up with a number of E-R.org posters here on Oahu and during my travels.  When my daughter was a high-school sophomore doing her college search, a large group of E-R.org posters in Houston pointed out that she should seriously consider Rice University.  (I met up with those guys during just about every annual Family Weekend from 2010-2013.)  I no longer start threads on E-R.org, but I check on it every week or so and post once in a while. 

A few of you MMM posters may have been around E-R.org as long as I have.  (I'm lookin' at you, FUEGO!)  I won't reveal your alter egos here, but feel free to share your own recollections...



Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on October 26, 2014, 05:32:48 PM
That is amazing and fascinating. I had no idea about all of that history! How cool that you were there to see and participate and now recount it to those of us earlier on the path.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: brooklynguy on October 27, 2014, 09:33:54 AM
I agree this is fascinating.  Thanks for the history lesson, Nords!

Joshua, I hope you take him up on his offer to participate in a podcast.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on October 27, 2014, 09:56:42 AM
Anyone know someone who is a good interviewer (besides Joshua)?
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: brooklynguy on October 27, 2014, 10:08:31 AM
The Mad Fientist.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Nords on October 27, 2014, 11:55:01 AM
Anyone know someone who is a good interviewer (besides Joshua)?
Off the top of my head:

Podcasts--
Todd Tresidder at FinancialMentor.com
Ryan Guina at TheMilitaryWallet.com
Steve Stewart at MoneyPlanSOS.com
Jim Munchbach (Social Business)
Christa Miller (Object Wealth)
Miranda Marquit, Tom Drake, & Glen Craig (Money Mastermind), and of course
Pat Flynn (SmartPassiveIncome).
I'm sure I'm leaving out another half-dozen just because I haven't followed them recently.

Media--
Farnoosh Torabi, Jean Chatzky, Gerri Willis (The Willis Report), Gerri Detweiler (Credit.com), Michael Dubrow (MoneyTips)... I could go on for a while.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: yandz on October 27, 2014, 12:54:57 PM
Anyone know someone who is a good interviewer (besides Joshua)?

I have mixed feelings about these guys being "good interviewers" but the Listen Money Matters guys (matt and Andrew) are interesting; almost for lack of skill(?) stuff comes out of guests they interview that hasn't come out elsewhere.  You know when you hear one person interviewed by a few different people and it is same old, same old? These guys take rabbit trails.  For better or worse. But it is often for better if you are super interested in their guest. Honestly, they did one of my favorite MMM interviews to-date.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on November 04, 2014, 11:47:06 AM
Here's the next episode in the series... Early Retirement FAQ: Should I Pay off Debt First or Should I Invest?

http://radicalpersonalfinance.com/early-retirement-faqs-should-i-pay-off-debt-first-or-should-i-invest-an-interview-with-joe-aka-arebelspy-rpf0095/

Enjoy!
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on November 05, 2014, 11:52:40 AM
Hehe...judging by the crickets, this must not have been the most compelling show!

Arebelspy, I guess everyone decided that simply knowing what you sound like is enough. Who cares about your ideas. ;)
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Cheddar Stacker on November 05, 2014, 12:08:06 PM
Josh & Joe, I listened to it in it's entirety. Great conversation, long but with a good flow. I'm a proponent of debt and understood/agreed with many of those concepts/arguments already, but I also learned a few things. I thought it was well worth the listen.

Thanks for taking the time again. If the series keeps going, I'll keep listening.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on November 05, 2014, 12:36:51 PM
Hehe...judging by the crickets, this must not have been the most compelling show!

My guess is most the readers here (who would be commenting on this thread) don't have a debt issue to worry about - hopefully it'll be helpful to others though.  :)

Josh & Joe, I listened to it in it's entirety. Great conversation, long but with a good flow. I'm a proponent of debt and understood/agreed with many of those concepts/arguments already, but I also learned a few things. I thought it was well worth the listen.

Thanks for taking the time again. If the series keeps going, I'll keep listening.

Thanks!
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: brooklynguy on November 05, 2014, 01:21:28 PM
Completely agree with Cheddar.  I've only had time to listen to about half of the podcast so far and planned to post here with my feedback after completing it.  It's much easier for me to carve out time to read and post on the forum (which I can do during the workday) than it is to listen to a podcast -- I suspect the same is true for many forum members, so you guys shouldn't read anything negative into the lack of response so far.  Thanks to both of you for taking the time to put this together, and I hope you continue with the series!
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: usmarine1975 on November 05, 2014, 01:45:45 PM
Just finished listening to the first Podcast.  I won't get to the 2nd one today.  That being said overall a great listen.  My big take away was a home warranty.  I was raised with the perception that insurance is a rip off so I have never considered the merit's of a home warranty.  It is something I may have to consider.  Not sure that it is the fix all but certainly it could play a roll depending on the situation.

I am new to the Rental world or Landlord world.  Going on 15 years now.  I just chanced into my first rental being that no one wanted to purchase it at the time.  The real estate agent was able to work me into it with owner financing.  It has worked out well to date as the property value has increased quite substantially but more importantly the Tenants are paying my mortgage on  the property.  That with the first one beside it both cash flow quite nicely.

I have missed out on some great deals and narrowly escaped some not so great deals.  I have bought homes at a good price range and have one that I paid too much for.  It will work out in the long run with all the rest but it was a learning experience for sure. 

I specifically like that you emphasized it is an individualized approach and the same approach is not for everyone.  I have over the years talked to many friends about getting into being a Landlord.  Many of which are no longer in it with the worst case scenario allowing the properties go to tax sale because the area he bought was just too toxic.  The last property was a meth lab or something like that.  Being a landlord is work and not a quick easy way to being wealthy.  For those wanting to get into Real Estate I usually try to share a mix of the good with the bad.  Give the truth so to speak.  Thanks for the pod cast I look forward to listening to the next one in line.

I agree with one of your last statements "you have to treat it like a business"

Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Paul der Krake on November 05, 2014, 06:20:05 PM
Another good show. I love how Joshua mentionned wrapping up around the one hour mark, and you two were still at it for another hour. Please pick a mildly controversial question next time so I have something to listen to for my 8 hour thanksgiving road trip?
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on November 05, 2014, 07:29:27 PM
Another good show. I love how Joshua mentionned wrapping up around the one hour mark, and you two were still at it for another hour.

lol.  There kept being more relevant considerations!

I agreed with him at the hour mark.  Heck, here's an email I sent to Joshua before the show (we had scheduled the call, and then he had emailed me asking if we should tackle the payoff debt or invest question that night):
Quote
Sure!  I don't think the other ones will take nearly as long [as real estate], we can probably do 3-4 questions in an hour (15-20 min each).

...so maybe I was off on my estimate.  :P

Quote
Please pick a mildly controversial question next time so I have something to listen to for my 8 hour thanksgiving road trip?

That'd be a fun format, to pick something we disagree on and do it "debate" style.  Unfortunately I think we both have too much ability to see all sides of an issue.  But I can play a good devil's advocate.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on November 06, 2014, 05:41:37 AM
I was raised with the perception that insurance is a rip off so I have never considered the merit's of a home warranty.

This same thing affected me when I was younger. I believed the blanket statements that "insurance is a total waste of money" and nobody taught me how to actually consider the advantages and disadvantages and specific costs and benefits.

Insurance is certainly an inefficient way to handle certain expenses. But sometimes you can find something that's a great deal for your situation.

If you're interested, I did a show last week on how to figure out if I "need insurance" or not. Let me know what you think: http://radicalpersonalfinance.com/do-i-need-insurance-a-mental-model-to-analyze-methods-of-dealing-with-risk-rpf0091/
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on November 06, 2014, 05:44:14 AM
That'd be a fun format, to pick something we disagree on and do it "debate" style.  Unfortunately I think we both have too much ability to see all sides of an issue.  But I can play a good devil's advocate.

We would have to be really committed to sticking to our guns if we were to do that. As you said, I think I can argue just about any side of any financial argument and I'll bet I could convince most people of the veracity of my argument.

I thought the bit we did on the myth behind the myth behind the myth of mortgage interest deduction was interesting. It illustrates how you need a deeper understanding and financial self-defense skills. That's a big reason why I do the show!
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on November 13, 2014, 01:18:21 PM
FYI, for anyone following this thread who listens via iTunes, I recently broke my iTunes feed permanently. If you're subscribed to the old feed you won't be receiving updates.

All you need to do to get the new shows (in general and in this series) is:

1. Unsubscribe
2. Search the iTunes store for Radical Personal Finance
3. Subscribe

It'll work!

Thanks!
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on November 13, 2014, 02:04:04 PM
FYI, for anyone following this thread who listens via iTunes, I recently broke my iTunes feed permanently. If you're subscribed to the old feed you won't be receiving updates.

All you need to do to get the new shows (in general and in this series) is:

1. Unsubscribe
2. Search the iTunes store for Radical Personal Finance
3. Subscribe

It'll work!

Thanks!

Does it now have all the back episodes, or is it still limited to 50?
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on November 13, 2014, 03:10:36 PM
It has all the back episodes now. All 250 hours or so worth! :)

I got rid of Feedburner (which is why the feed was limited) and switched to a better feed.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on December 09, 2014, 08:35:49 AM
If you like the contributions that Nords makes here in the forums, you might enjoy this interview with him! He does a great job discussing some of the history of the Early Retirement community. It's fascinating to me.

Enjoy!

http://radicalpersonalfinance.com/little-known-history-of-the-er-movement-interview-with-doug-nords-nordman-rpf0114/
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: brooklynguy on December 09, 2014, 08:44:54 AM
If you like the contributions that Nords makes here in the forums, you might enjoy this interview with him! He does a great job discussing some of the history of the Early Retirement community. It's fascinating to me.

Enjoy!

http://radicalpersonalfinance.com/little-known-history-of-the-er-movement-interview-with-doug-nords-nordman-rpf0114/

Thank you Joshua and Nords for doing this!  I can't wait to listen to the podcast, but just wanted to suggest that it may be worth starting a new thread to alert folks that this interview is available -- not all of the Nords groupies may find it buried in this one.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Villanelle on December 09, 2014, 09:18:57 AM
Yup, the wife teaches high school and I teach elementary.

I'm sure I've mentioned teaching (and slow travel) lots of times, but no comprehensive posts on the topics.  What specifically were you wondering?

I guess I just have a couple concerns.
  • Slow-travel - how do you expect to get to know the locals? Only move to places you already know someone, or just hope to make friends once you get there? This is actually why I'm interested in a job like teaching or volunteering - gives you more options to meet people, but with FI the low pay doesn't matter.
  • Teaching English as a back-up job career - how do you expect to get/be qualified for a local job? Of course, I just realized that because you're currently a credentialed teacher (with I'm sure a nice resume), that's probably different than someone like me who has no teaching experience.

I taught English in Japan. I had zero teaching experience or training of any kind.  Finding informal, part time work was extremely easy and paid very well (especially because when I was there, the dollar to  yen sucked and I was paid in yen.  Every time the dollar dropped, I told myself I'd just gotten a raise, since I could spend dollars on the military base).  All my classes were informal, though I had a few friends who actually taught in schools. 

I had several hobby groups that met weekly in community centers and just wanted to practice conversational English, learn new idioms, and maybe get some basic cultural insights.  And I had classes with children in their homes.  (I used a series of workbooks called Let's Go, which basically did all the work for me and I never had to plan curriculum. I was worried at first, but it was super easy and yet very effective.)   With my adult classes, most just wanted to chat, so or class format was just each of us talking for a few minutes about what we did that week, an interesting news story we read, etc.  I would correct, suggest new words, add appropriate idioms, and ask questions as relevant.  I always had a bagful of word games and conversation starters, just in case. 

My average hourly rate was 4000 yen/hr, though some paid more or less.  At the time, that was about $50, now it is about $30.  I had about 12-15 hours of classes per week (plus maybe an hour or two of prep time and a lot of drive or train time), and I often picked up a few more classes when people needed subs.

The classes always wanted people to commit to at least a year, so if you are wanting to move around, most of them wouldn't be interested.  Also, I got my jobs through acquaintances or friends of friends who were leaving, since most classes like the teachers to find their own replacement.  My contacts came from the military community, but I suspect there are similar contacts in the Expat community. 

I started with a few classes and because I was conscientious and I love the English language and its many idiosyncrasies, I soon was in high demand and had as many classes as I wanted, plus numerous subbing opportunities.  Word of mouth got me a lot more jobs and I ended up turning down a lot of them if they paid too little, were farther than I wanted to drive, or were unattractive in some small way. 

It was a delightful experience.  Many times, I couldn't believe I was getting paid.  I sat and chatted with kind, intellectually curious, interesting people, and then they handed me money.  Sometimes, I would go to class and ask about something odd I saw on a train, and the class would turn in to a cultural lesson for me.  And yet I was still paid.  I know you aren't always comfortable interacting socially, and I'd say that would be your biggest obstacle for doing the kind of teaching I did.  They wanted to get to know me and to chat with me, almost as a friend would. 

Teaching was truly the best part of my experience living in Japan.  I've already lined up work with some of my  old classes when I return, two years from now! 

This is a huge threadjack, but if you want to discuss it more, start a thread and I'd be happy to answer any questions.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on December 09, 2014, 09:27:49 AM
I can't wait to listen to the podcast, but just wanted to suggest that it may be worth starting a new thread to alert folks that this interview is available -- not all of the Nords groupies may find it buried in this one.

Will you do me a favor and do it for me? I don't want to hijack this (or any) forum to promote my stuff. I try to be careful and respect the community.

But, if you posted it... ;)
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: brooklynguy on December 09, 2014, 09:46:18 AM
Will you do me a favor and do it for me? I don't want to hijack this (or any) forum to promote my stuff. I try to be careful and respect the community.

But, if you posted it... ;)

Very commendable.  Happy to do so -- I just started a new thread with the link under the "Mustachianism Around the Web" category.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on December 16, 2014, 07:07:30 AM
Several of you in this thread really liked the real estate show Arebelspy and I did. If you're interested in more, you might enjoy this interview show with John Schaub. (He was a primary recommendation from Arebelspy and me.)

http://radicalpersonalfinance.com/building-wealth-one-house-at-a-time-interview-with-john-schaub-rpf0119/

Let me know what you all think!

Joshua
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on January 09, 2016, 04:38:01 AM
Here's the next installment in the Early Retirement FAQ series with arebelspy! http://radicalpersonalfinance.com/277-early-retirement-faqs-plan-inflation-interview-joe-aka-arebelpsy-just-retired-30-schoolteachers-salary/
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: CowboyAndIndian on January 09, 2016, 06:38:18 AM
Here's the next installment in the Early Retirement FAQ series with arebelspy! http://radicalpersonalfinance.com/277-early-retirement-faqs-plan-inflation-interview-joe-aka-arebelpsy-just-retired-30-schoolteachers-salary/

Fix the name and the title and the URL


He is is NOT Arebelpsy (A Rebel Psy(Psycho??)), but Arebelspy (A Rebel Spy).

Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on January 09, 2016, 06:51:51 AM
Actually A Rebel Psy has a cool ring to it.  Though I'd change the y to an i at the end.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: totesmahgoats on January 09, 2016, 08:22:46 AM
I just wanted to say how thoroughly I enjoy your podcast, Joshua.

It's my go to when our spend pants friends want financial advice via podcast.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on January 11, 2016, 07:47:43 PM
Oops. I guess that's what happens when you hit publish too soon! Thanks for the compliment @totesmahgoats!
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: tj on January 13, 2016, 12:19:46 AM
Here's the next installment in the Early Retirement FAQ series with arebelspy! http://radicalpersonalfinance.com/277-early-retirement-faqs-plan-inflation-interview-joe-aka-arebelpsy-just-retired-30-schoolteachers-salary/

I'm not really understanding why Josh is so skeptical about a buy, hold and rebalance index portfolio being a reasonable plan for the long term?

My future depends on this being a viable plan, so I obviously do not think it is all that outrageous.   I've spoken with a financial planner and I'm very comfortable that i will be able to bridge the gap from 40 to standard retirement age where I can tap into IRA/401k and Social security. If I was more frugal a few years ago, I'd be there even faster. I'm currently 30. I think I could get there by late 30s, but why? The "to 40" plan assumes a gap year in my 30s. I value that more than calling it quits forever.

I have no interest in managing real estate myself - I think it's great for people who like negotiating with contractors and have the capital to diversify across several properties (would not be possible here in California)

I bought a personal residence at the recommendation of my parents and later rented that out for a few years, but I have since sold it and dumped it right into my portfolio. I'm not sure it's possible to know if my portfolio value is higher today than it would have been if I dumped the down payment into my portfolio originally and rented housing. I did not have nearly as much financial acumen when I purchased, so perhaps I lucked out, but if we are to have a major fear of major inflation - I'd rather be in equities than real estate myself. I'm not confident that Joe will always be able to raise his rents at the right time, and I tihnk that's why Joe is wanting to diversify beyond real estate.


I very much agree with EmergDoc from this thread: -

https://www.bogleheads.org/forum/posting.php?mode=quote&f=10&p=2727529

These low expectations from a balanced portfolio just don't work for me. "THIS TIME IT'S DIFFERENT". But why is it different? Why is 100% VBIAX or VSMGX or VWENX not going to be reasonable forever hold for a standard age retiree to supplement their social security? Why should they outsource their investments to someone like Northern Trust that Josh mentioned?   

My equity exposure in my taxable account is currently 100% VT*. It couldn't be any simpler than that. I'm completely okay with it because it makes sense in that its low turn over, low cost, tax efficient "diversified" across currencies, countries and companies. Apple is the largest holding at less than 2%. I don't have to worry about if my domestic is too high or foreign is too high, because the global markets are determining that for me. Could I earn more in small value funds or LendingClub? I don't know. Are those ideas higher risk? Probably. Am I exposed to bubbling assets? Definitely, but over the long term I think that's okay. I tilt away from the market in my tax advantaged accounts, but over half of my portfolio is taxable.

*I was at one point sticking to VTI and VEA and avoiding emerging markets, but I tax loss harvested those recently into VT to simplify, and with Emerging Markets being such a small portion of this fund (8%), that I don't think it's going to make much of a difference either way.

As far someone in the general FIRE community who is living off an index fund portfolio..isn't that exactly what GoCurryCracker ha been doing ? As I recall, he is not a fan of real estate and his real estate did not work out for him. I don't recall their blog income being all that substantial either vs their working income.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on January 13, 2016, 12:46:10 AM
I'm not really understanding why Josh is so skeptical about a buy, hold and rebalance index portfolio being a reasonable plan for the long term?
...
As far someone in the general FIRE community who is living off an index fund portfolio..isn't that exactly what GoCurryCracker ha been doing ? As I recall, he is not a fan of real estate and his real estate did not work out for him. I don't recall their blog income being all that substantial either vs their working income.

My impression: He doesn't think people actually do it.  That it's all talk by financial planners to be possible in theory, but not actually useful. So he thinks it's sort of a bill of goods sold to people.

(Feel free to correct any of that, Joshua.)

I don't necessarily agree, but I do see his point that it's rare for someone to go completely passive and stick with it.  GCC is a good example, and there are probably more here in the ER community than most anywhere else.

The issue is, most people don't save an have an AA or IPS in general, so of course they don't do this.  And then, of the people who are interested in money, they tend to take a more active approach.  But there are some who do the passive approach, which is what I was trying to present at whichever part of the podcast we were talking about that.  :)
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: tj on January 13, 2016, 07:36:49 AM
I'm not really understanding why Josh is so skeptical about a buy, hold and rebalance index portfolio being a reasonable plan for the long term?
...
As far someone in the general FIRE community who is living off an index fund portfolio..isn't that exactly what GoCurryCracker ha been doing ? As I recall, he is not a fan of real estate and his real estate did not work out for him. I don't recall their blog income being all that substantial either vs their working income.

My impression: He doesn't think people actually do it.  That it's all talk by financial planners to be possible in theory, but not actually useful. So he thinks it's sort of a bill of goods sold to people.

(Feel free to correct any of that, Joshua.)

I don't necessarily agree, but I do see his point that it's rare for someone to go completely passive and stick with it.  GCC is a good example, and there are probably more here in the ER community than most anywhere else.

The issue is, most people don't save an have an AA or IPS in general, so of course they don't do this.  And then, of the people who are interested in money, they tend to take a more active approach.  But there are some who do the passive approach, which is what I was trying to present at whichever part of the podcast we were talking about that.  :)

I'm just not sure how any of us would know if someone is doing it. It's the whole millionaire next door philosophy. It's like in that powerball thread, a lot of people have said that they wouldn't actually want to win 1.5 billion, because then you would have to go public and everyone you know would be hitting you up for money. If it's not your intention to benefit financially about your successful early retirement in the pursuit of profit or gained revenue for charitable causes, what reason would most people have to go public about what they've done?

I agree that most people aren't saving enough, but the target market of this podcast is not most people. I also know that if my parents and grandparents invested my savings as a child in a broad equity mutual fund or a combo of equities and bonds, instead of your average savings account, like a lot of those older people at bogleheads seem to be doing for their kids and grandkids, I would be that much further along and could retire that much earlier. I don't think it's that crazy. The boglehead message is one that is very much anti-financial planner establishment, that you don't need this smorgasbord of acronyms that Joshua has after his name (or to hire someone who has them) to figure all this shit out. That you can have this simple investment portfolio precisely because you'd rather be doing something else with your time than taking an active role in your investments.

I think you do have to learn enough about money initially to be confident that your passive strategy will work (which I think is the point you were trying to get across, Joe), but I don't think you have to actively be looking at your valuations and trying to duplicate Warren Buffett. Having a taxable portfolio that on really good or really bad day rises or drops by more than my bi-weekly paycheck, I know that I'll do more damage by looking at it and trying to optimize it vs just investing what I can in some reasonable strategy and not looking at it for several years. I've read several times that fundholders tend to not do as well as the funds themselves because of bad market timing. I can't cite where I've read it, but it doesn't surprise me, because most people tend to be very emotional about all of life's decisions.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: tj on January 13, 2016, 08:21:03 AM
I would also like to add that while the early retirement community has been around since the late 90s in various forms, it wasn't until ERE and MMM that this idea of retiring in your 30s was really publicized, and MMM's popularity has grown even more in recent years, so I think it's likely that we'll see more successful stories of people retiring in their 30s and 40s on the forum as time goes on just because more and more people are being exposed to the idea that this is an actual possible thing that people do.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on January 13, 2016, 08:41:56 AM
Definitely.  Agreed.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: tj on January 13, 2016, 09:21:30 AM
I guess what my question for Joshua would be what his intention is with these podcasts. Who is the target audience that he is trying to reach? I listened to the Nords interview and the most recent one about inflation. When I listen to the interviews, I get the sense that he is a very skeptical guy and that he himself is "not drinking the mustachian kool aid", that he doesn't think that the ideas that are promoted here and at other similar forums are things that people can actually do to create their own financial freedom with zero interest in finances. That kind of rubs me the wrong way, because while I definitely enjoy the interviews, this platform doesn't seem to be one that is necessarily promoting mustachianism, but affirming the general public's belief that it's not possible to actually retire early unless one has this extensive financial knowledge/background.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on January 13, 2016, 09:53:29 AM
I think his audience is more normal people, not necessarily Mustachians, and the ideas are around personal finance in general.

Early retirement is a tiny fraction of the overall podcasts, and just one thing he talks about (infrequently) to present the idea to people, or for people who are a fan. It's not a big topic of the podcast overall.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: BarkyardBQ on January 13, 2016, 10:04:17 AM
Here's the next installment in the Early Retirement FAQ series with arebelspy! http://radicalpersonalfinance.com/277-early-retirement-faqs-plan-inflation-interview-joe-aka-arebelpsy-just-retired-30-schoolteachers-salary/

Fix the name and the title and the URL


He is is NOT Arebelpsy (A Rebel Psy(Psycho??)), but Arebelspy (A Rebel Spy).

Listening.

Arebelspy also mistyped in the teaser graphic.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: tj on January 13, 2016, 10:13:39 AM
I think his audience is more normal people, not necessarily Mustachians, and the ideas are around personal finance in general.

Early retirement is a tiny fraction of the overall podcasts, and just one thing he talks about (infrequently) to present the idea to people, or for people who are a fan. It's not a big topic of the podcast overall.

In that context, it makes more sense. I only noticed the promotion of the podcast that has been in this thread.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: JZinCO on January 13, 2016, 10:49:41 AM
Here's the next installment in the Early Retirement FAQ series with arebelspy! http://radicalpersonalfinance.com/277-early-retirement-faqs-plan-inflation-interview-joe-aka-arebelpsy-just-retired-30-schoolteachers-salary/
ARB and I, and others had a similar conversation recently. I started it after hearing multiple times from posters' claims about being able to react to the impact of inflation.
http://forum.mrmoneymustache.com/welcome-to-the-forum/mustachians-aren't-as-subject-to-inflation/

TL;DR After a few posts my views came to align with ARB's in that the common argument is: "I can just craft a budget to reduce expenses in response to inflation such that my nominal spending is constant", but after a decade of even mild inflation one's nominal-constant budget eeks out a poor living. After this thread, I was sold on the importance of not reacting to inflation on the spending side but to proactively build wealth to stay ahead of inflation.

Anyway, loved the conversation and all the conversations with ARB. Sometimes the points are muddled in yalls back and forth. The chosen topics are probably best suited for white papers where the math and charts can be used but I enjoy the audio format none the less.
One downside about podcasts is that different topics get hit in a hodge-podge manner across episodes (e.g. an awesome discussion about indexing might be buried in an interview). In the end, I am hoping that Radical Personal Finance ends up with a library of FAQ episodes which, currently, have a good referential use and the entertaining 'conservation' format.

Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on January 14, 2016, 07:36:55 AM
I guess what my question for Joshua would be what his intention is with these podcasts. Who is the target audience that he is trying to reach? I listened to the Nords interview and the most recent one about inflation. When I listen to the interviews, I get the sense that he is a very skeptical guy and that he himself is "not drinking the mustachian kool aid", that he doesn't think that the ideas that are promoted here and at other similar forums are things that people can actually do to create their own financial freedom with zero interest in finances. That kind of rubs me the wrong way, because while I definitely enjoy the interviews, this platform doesn't seem to be one that is necessarily promoting mustachianism, but affirming the general public's belief that it's not possible to actually retire early unless one has this extensive financial knowledge/background.

I intend for my show to be a daily source of encouragement and education for people with an above-average interest in money and financial freedom. I strive for maximum diversity in the opinions presented so that the content is continually interesting and challenging to the listener. I share my own story and opinions but I try to encourage personal responsibility on behalf of my listeners. If my audience is thinking critically about what they believe and why, I'm happy.

I'm not promoting mustachianism--that's MMM's brand, not mine. But I do try to shine a light on the useful concepts of mustachianism and it's been very well represented throughout the archives of the show.

My opinion is that it's possible to retire early with some basic knowledge and background. But I simply don't think most people want to retire early. What people want is a sense of freedom and control over their life and there's no reason why you need 25x annual earnings to gain that. There are faster and easier ways to gain the freedom and control while you're on the way to 25x annual earnings.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: tj on January 14, 2016, 08:03:38 AM
I guess what my question for Joshua would be what his intention is with these podcasts. Who is the target audience that he is trying to reach? I listened to the Nords interview and the most recent one about inflation. When I listen to the interviews, I get the sense that he is a very skeptical guy and that he himself is "not drinking the mustachian kool aid", that he doesn't think that the ideas that are promoted here and at other similar forums are things that people can actually do to create their own financial freedom with zero interest in finances. That kind of rubs me the wrong way, because while I definitely enjoy the interviews, this platform doesn't seem to be one that is necessarily promoting mustachianism, but affirming the general public's belief that it's not possible to actually retire early unless one has this extensive financial knowledge/background.

I intend for my show to be a daily source of encouragement and education for people with an above-average interest in money and financial freedom. I strive for maximum diversity in the opinions presented so that the content is continually interesting and challenging to the listener. I share my own story and opinions but I try to encourage personal responsibility on behalf of my listeners. If my audience is thinking critically about what they believe and why, I'm happy.

I'm not promoting mustachianism--that's MMM's brand, not mine. But I do try to shine a light on the useful concepts of mustachianism and it's been very well represented throughout the archives of the show.

My opinion is that it's possible to retire early with some basic knowledge and background. But I simply don't think most people want to retire early. What people want is a sense of freedom and control over their life and there's no reason why you need 25x annual earnings to gain that. There are faster and easier ways to gain the freedom and control while you're on the way to 25x annual earnings.

The theory is not to save 25x annual earnings though, it's 25x annual expenses. A huge difference. I am not of the opinion that leveraged real estate is a faster way to freedom than saving 25x your expenses. I feel like if f shit hits the fan again a la 2008, with real estate that still has leverage on it, but no stable full time job, you most likely would have to go back to work, or pursue some type of income that is motivated by $$$ rather than passion, and in dire scenarios, possibly even declaring bankruptcy on the way and needing to start over. With 25x your expenses saved up, you can follow various withdrawal strategies and expect a reasonable probability of success.  I wouldn't say that the FIRE ideals and lifestyle are necessarily exclusive to MMM's brand, but it certainly speeds things along.

I agree that most people don't want to retire early, but I also think that most people haven't even considered that it's a possibility. I think a lot of the people who post here are legitimately interested in early retirement. if not shooting for early retirement, what would be your opinion on why people would generally want to focus on minimizing expenses and maximizing income vs. the status quo?

There was another thread here of members in their 40s who said that would never have considered wanting to retire early when they were in their 20s and 30s, like several people like myself have stated. That we like the idea of being able to retire early, but don't know that we necessarily would. A lot of these people felt the same way, but over their years, they have been fed up with work, watched loved ones die or had various other circumstances where they actually did retire early or are close to it even though the idea seemed pretty ridiculous to them when they were younger. I want to put myself in that position, where I can choose, and that is the point of delaying gratification for me to some extent.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on January 14, 2016, 09:02:25 AM
The theory is not to save 25x annual earnings though, it's 25x annual expenses. A huge difference.

Forgive me, I mis-typed in my haste. You are correct.

I support the pursuit of financial independence as quickly as possible. It's an almost every-other-day theme of my show. Extreme savings is a reliable and proven way to get there. But  it's only one way. Keep an eye out for a forthcoming interview with Jake Desyllas on his excellent new book: "Job Free: Four Ways to Quit the Rat Race and Achieve Financial Freedom on Your Terms." He covers three other ways.

I'm not sure how many shows you've listened to, but I do work hard to serve the E-R community with good and useful content.

I myself am pursuing financial independence as aggressively as possible.

But, as is true with many content creators, I have my own opinions. I like MMM's work but he and I have very different perspectives on many issues.

I am presently biased in favor of real estate for my own financial independence and that tone will come through. I formerly managed stock portfolios for retirees so I'm quite comfortable discussing the topic of balanced portfolios, asset allocation, etc.

But, my conscience will no longer let me participate in broad-based mutual fund investing. I can no longer profit from the business activities of a majority of the publicly traded companies and sleep well at night.

So, I have opted out, pulled my money from equity ownership, and adjusted my investments to things I can do with a clear conscience. (I also no longer manage client funds and I offer zero advice to others on the topic.)

There are lots of shows on the topic if you're interested:
http://radicalpersonalfinance.com/265-passive-investing-index-funds-right-way-invest-interview-rick-ferri-portfolio-solutions/
http://radicalpersonalfinance.com/231-how-you-should-respond-to-the-recent-stock-market-gyrations/
http://radicalpersonalfinance.com/175-friday-qa-can-financial-advisors-increase-your-returns-how-to-prepare-for-the-cfp-exam-fastest-way-to-become-a-1er-how-do-you-trust-insurance-agents-what-is-the-role-of-an-ipo-in-an-inve/
http://radicalpersonalfinance.com/financial-independence-via-dividend-investing-interview-with-jason-from-dividend-mantra-rpf0096/

There are loads more...these are just examples.



Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: tj on January 14, 2016, 10:14:53 AM
Quote
I support the pursuit of financial independence as quickly as possible. It's an almost every-other-day theme of my show. Extreme savings is a reliable and proven way to get there. But  it's only one way. Keep an eye out for a forthcoming interview with Jake Desyllas on his excellent new book: "Job Free: Four Ways to Quit the Rat Race and Achieve Financial Freedom on Your Terms." He covers three other ways.

I look forward to that and might even pick up the book. Always interested in other ways people are doing this. Why do you incur the cost of retaining your various financial designations if not interested in continuing to manage accounts?
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on January 14, 2016, 12:41:10 PM
Why do you incur the cost of retaining your various financial designations if not interested in continuing to manage accounts?

1. Backup plans: when I started Radical Personal Finance, I wasn't sure how long it would take to create income from it. If RPF fails or ceases to be fun, one of my backup plan is to go back into financial planning. With my professional credentials I can get an interview for a job at any firm, any time, anywhere. There are some interesting, boutique financial planning firms here in the Palm Beach area where I live that would be quite fun to work in. If I were to return to financial planning, I would probably look to work in a small family office or multi-family office here in Palm Beach. Scouring the world markets for interesting investment opportunities seems like a fun job to me. And, I could make a multi-six-figure salary, live on $40-$50k and be financially independent in a few years.

2. Differentiation and marketing for the show: I'm one of the few professionally credentialed financial advisors with a podcast discussing nuts and bolts of financial planning. Although they're my least popular shows, the technical financial planning shows I create on specific technical topics are a differentiator from my competition and they attract new listeners.

3. Credibility: the designations give me credibility with the financial advisor community. That means more of them start listening to my show. I hook them with my understanding of the mainstream financial approaches and then I educate them on some alternative, radical ideas. This allows me to multiply my influence across the industry and affect many more people. Only a tiny percentage of the general population will every listen to my show. It's too long, too in-depth, and most people just don't care. But many financial advisors listen to my show and most people with money work with advisors. This allows me to reach more people and help them achieve their goals.

4. Diversification of income: because I maintain the professional designations, I have an easier time connecting within the professional advisor community. This can lead to paid speaking on technical topics and makes it easier for me to start my business.

5. It's relatively cheap: Out of this whole list "Joshua J. Sheats, MSFS, CFP®, CLU®, ChFC®, CASL®, CAP®, RHU®, REBC®" the only one that has any annual dues is the CFP certification. The annual dues to the CFP Board are $325. The MSFS is a master's degree in financial planning--it has no continuing education (CE) requirements and no annual dues. All the other designations are educational achievements and  do not have any dues. They do all require CE, but I need to stay very current anyway, so it's not that big of a deal.

Those reasons above have caused me to keep them up until now.

I do consider it from time to time and I may drop the CFP in coming years. I don't love being subject to regulation and oversight by the CFP Board...but for now it doesn't hinder me in any way. I don't sell any products or do any financial planning now, so I have minimal obligations to them.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on January 14, 2016, 02:01:58 PM
That's some awesome info on your perspective Joshua, in those last few posts--you should consider compiling some of it for your about me section of your website.  :)
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on January 14, 2016, 02:04:49 PM
My opinion is that it's possible to retire early with some basic knowledge and background. But I simply don't think most people want to retire early. What people want is a sense of freedom and control over their life and there's no reason why you need 25x annual earnings expenses to gain that. There are faster and easier ways to gain the freedom and control while you're on the way to 25x annual earnings expenses.

(Typo fixed.)

I 100% agree.

But those things take some ... chutzpah.  Many people don't have the courage it takes to pursue that freedom and control, so 25x expenses is the safe, reliable path to FI (and/or ER).

Off the top of my head, I can't think of any easy ways to FI that include getting that freedom and control before FI, without courage.

But if you have that, and a little knowledge and willingness to think and act outside the box, the world is your oyster.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: tj on January 14, 2016, 02:24:11 PM
My opinion is that it's possible to retire early with some basic knowledge and background. But I simply don't think most people want to retire early. What people want is a sense of freedom and control over their life and there's no reason why you need 25x annual earnings expenses to gain that. There are faster and easier ways to gain the freedom and control while you're on the way to 25x annual earnings expenses.

(Typo fixed.)

I 100% agree.

But those things take some ... chutzpah.  Many people don't have the courage it takes to pursue that freedom and control, so 25x expenses is the safe, reliable path to FI (and/or ER).

Off the top of my head, I can't think of any easy ways to FI that include getting that freedom and control before FI, without courage.

But if you have that, and a little knowledge and willingness to think and act outside the box, the world is your oyster.

I would agree with this. It is definitely ballsy, but people do it all the time. One of my friends moved from Utah to New York City with a few months of expenses saved up in hopes to land a gig on broadway. It didn't work out, but she went for it, and had lots of NYC experiences that never would have happened in Utah. I envy those stories. I don't feel like I'll need 25X to leave the current job, but I'm not comfortable with just a few months either. Everyone has to find the right balance for them and work with what they have I suppose.


Quote
Scouring the world markets for interesting investment opportunities seems like a fun job to me.

It's interesting that you have this opinion about researching markets, but have no interest in equity ownership yourself.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: ender on January 16, 2016, 11:51:01 AM
My opinion is that it's possible to retire early with some basic knowledge and background. But I simply don't think most people want to retire early. What people want is a sense of freedom and control over their life and there's no reason why you need 25x annual earnings expenses to gain that. There are faster and easier ways to gain the freedom and control while you're on the way to 25x annual earnings expenses.

(Typo fixed.)

I 100% agree.

But those things take some ... chutzpah.  Many people don't have the courage it takes to pursue that freedom and control, so 25x expenses is the safe, reliable path to FI (and/or ER).

Off the top of my head, I can't think of any easy ways to FI that include getting that freedom and control before FI, without courage.

But if you have that, and a little knowledge and willingness to think and act outside the box, the world is your oyster.

Also, the closer to FI you are the more likely you will be to take risks which can directly affect your ability to feel freedom/control. Someone working a job they had with $0 saved will be much less likely to stand up to their boss, out of fear.

Leaving a stable job you are bored at for a more risky but likely more enjoyable job? That definitely takes a courage, but that courage is even more required the less financially stable you are.

Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: FiveSigmas on January 17, 2016, 06:58:19 PM
7Y, ARS, thanks for putting together another thought-provoking show.

I have a follow up question regarding “personal rates of inflation.” ARS, my understanding of your argument is: no matter what your personal basket of goods is, even if it excludes items like SUVs, walk-in cigar humidors, and daily trips to Ruth's Chris Steakhouse, you're still paying for something every year, and that something is going to rise in cost year-over-year. In other words, it's not one's initial starting point that matters, it's the rate at which prices increase thereafter. Is that right?

That makes sense to me, but it also seems like the whole reason that the BoL uses a basket of goods, though, is that different items exhibit different rates of inflation. For instance, table 26 on page 85 of the BoL Nov 2015 CPI report (http://www.bls.gov/cpi/cpid1511.pdf) indicates that overall medical costs for an urban consumer went up by 3.2, 2.0 and 3.0 percent in 2012, 2013, and 2014. Average entertainment costs, however, went up by 0.8, 0.4, and 0.0 percent during the same time periods.

Now, a full-on Mustachian will likely use the library a lot more than a consumer, and entertainment might hence make up a negligible portion of said person’s portfolio. If that person still has average or above-average health-care costs, that individual’s personal inflation rate might thus be higher (or at least different) than that of a typical consumer.

Granted, over the long term, the relative inflation rate for items in a given basket will vary over time, and very high relative inflation rates must eventually taper (otherwise, you end up with absurd conclusions like health care making up 99.99% of an average middle-aged person’s yearly budget in N years). Still I think one can argue that over say, 30 years, some basket components will nonetheless have higher inflation rates than others *.

All of this leads me to believe that there’s value in being able to calculate one’s personal rate of inflation (and perhaps make corresponding corrections to back-testing tools like cfiresim).

What do you think?

* Whether we can predict who the winners and losers will be is another question, but I still feel that broad, very rough predictions can be made – similar to the way one can say that stocks should outperform bonds over the long term.

ETA: Thanks for the pointer to http://portfoliocharts.com/ (http://portfoliocharts.com/). That's an amazing tool.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Exflyboy on January 17, 2016, 07:14:32 PM
funny how none of us think out own story or what we have to offer is of value.. Then, well I guess others think otherwise.

Very cool..:)
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on January 17, 2016, 07:52:44 PM
FiveSigmas: Sure, we may have different rates of inflation.  I don't mean to imply everyone's rate of inflation will be the same.

However, unless you can predict the future, why do you have reason to suspect your personal inflation rate will be lower than the average basket of goods?  Why wouldn't it be just as likely to be higher?

Maybe there's a drought where the lentils you buy are grown, so they go up in price.  Maybe a new rubber tax causes your bike tires to go up in price.

Whatever you spend money on, that should go up in price, over time, and I see no reason why it wouldn't roughly go up the same as everything else, on average.

Your asterisk gets to this, and that's my point.  I don't think you can, over the next 30 years, necessarily predict what items will necessarily lag inflation by a good degree.  And I certainly wouldn't want to bank my retirement on it.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: FiveSigmas on January 17, 2016, 09:44:56 PM
Yikes, I see that I'm rehashing a few of the arguments already discussed here:

http://forum.mrmoneymustache.com/welcome-to-the-forum/mustachians-aren't-as-subject-to-inflation/

Rather than rat-holing here, I'll switch over to that thread.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on January 18, 2016, 12:16:04 PM
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Scouring the world markets for interesting investment opportunities seems like a fun job to me.

It's interesting that you have this opinion about researching markets, but have no interest in equity ownership yourself.

To be clear, I'm not opposed to equity ownership. I own stock in my own companies and I intend to purchase stock (equity) in many companies in the future, both private companies and publicly traded companies.

There are probably many companies traded on the NYSE that I am happy to own.

But I'm not interested in owning broad-based mutual funds run by a manager that's not me. So, for now, I've pulled back from the publicly traded markets completely to focus on private investments. And, (unless something in my conscience changes) when I return to the public markets, I'll do so with individual stock ownership.

The example I always think of was the family office investment manager I spent some time with who was supervising a condo development project in Costa Rica and in India in addition to all their other investment projects. That touch of the exotic appeals to me. (In the past I considered pursuing a career as an investment analyst and researcher for an international mutual fund company.)
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: tj on January 18, 2016, 12:56:24 PM
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There are probably many companies traded on the NYSE that I am happy to own. But I'm not interested in owning broad-based mutual funds run by a manager that's not me.


It's bizarre to me that a Vanguard fund specifically (whether passive or active), could be against anyone's conscience. Their rock bottom fee structure negates a lot of the issues I have with the financial industry and what they charge clients for investment management.

It sounds like you maybe don't agree with Rick Ferri's opinion about the "evidence" of passive vs. active that was referenced in that podcast, which is totally reasonable, but not all that common around here.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on January 18, 2016, 01:13:57 PM
Quote
There are probably many companies traded on the NYSE that I am happy to own. But I'm not interested in owning broad-based mutual funds run by a manager that's not me.


It's bizarre to me that a Vanguard fund specifically (whether passive or active), could be against anyone's conscience. Their rock bottom fee structure negates a lot of the issues I have with the financial industry and what they charge clients for investment management.

It sounds like you maybe don't agree with Rick Ferri's opinion about the "evidence" of passive vs. active that was referenced in that podcast, which is totally reasonable, but not all that common around here.

Or he doesn't want to own a broad index which includes companies that he doesn't agree with their practices, morally.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: tj on January 19, 2016, 06:35:48 PM
Quote
There are probably many companies traded on the NYSE that I am happy to own. But I'm not interested in owning broad-based mutual funds run by a manager that's not me.


It's bizarre to me that a Vanguard fund specifically (whether passive or active), could be against anyone's conscience. Their rock bottom fee structure negates a lot of the issues I have with the financial industry and what they charge clients for investment management.

It sounds like you maybe don't agree with Rick Ferri's opinion about the "evidence" of passive vs. active that was referenced in that podcast, which is totally reasonable, but not all that common around here.

Or he doesn't want to own a broad index which includes companies that he doesn't agree with their practices, morally.

After listening to #281, Joshua clearly has ethical issues with certain companies, that's all well and good, but it does indeed sound like he thinks one can beat the market fairly easily if they study finance enough.  I don't think anyone would suggest that fund managers or stock pickers are dumb by the way, only that it's very difficult to overcome the additional fees in many cases.

In the same podcast, he mentions that he was on a path to 500k or 1 million income annually as a financial planner. This isn't something that most people can relate to I don't think. This also explains why he doesn't distinguish between the "rich" and the "really really rich" in another recent podcast.  (possibly the one with arebelspy?)

I would absolutely question that leveraged real estate is less risky than ownership of debt-free publicly traded stock. Especially in a recession. When the recession doeshit, I'll be happy that i don't owe a dime to anybody, my broadly diversified global publicly traded value tilted stocks might go down in a recession, but they will not go to zero, because the companies that I own will continue to sell products and services. With leveraged real estate in a recession ,people potentially lose thier jobs and stop paying their rent. This is exactly what happened to the people Joshua talked about in the beginning of #281 where he wasn't investing in real estate but his peers were.

From my perspective, we have a family friend who is very high up at a residential REIT that went public in recent years. If I wanted to make an investment in residential real estate, Why wouldn't I just buy equity in that company? They're small enough that they aren't a substantial portion of the various REIT Index funds yett they have a huge staff analyzing opportunities in several individual markets. They have the background and skill to know where the opportunities are going forward. To me, seeing what they are doing, that they've been able to take this company public and are still around years later, that there obviously was a lot of opportunity in individual residential real estate, but these companies (and they are not the only company that is doing this) started snapping up properties on the cheap after the housing collapse, going to the auctions, and writing the check on the spot. How can an individual investor who may need to wait on a mortgage funding or what have you compete with the corporate investor who has almost infinite capital on the spot?  They also have relationships with contractors to rehab in bulk, how can your average joe compete? Maybe there's some markets that these companies haven't branched out to yet, but wouldn't you think it's inevitable that they get there eventually? if that's the main component of somebody's investment plan, I would be worried. A lot of people like real estate, I get that and respect it, but leveraged real estate and a recession sounds pretty risky to me.

I absolutely agree with Joshua that one can achieve higher returns with options other than Vanguard index funds, but I disagree that one can easily obtain a higher RISK ADJUSTED RETURN. That is, I think that other strategies are inherently riskier. This isn't to say the broad market investing is the best risk adjusted return, because it's not, and one reason i tilt to value in tax advantaged space (and even so, there's no guarantee the "value premium" will continue going forward, it sure hasn't shown up lately), but I strongly disagree with the notion that we can control our "rate of return", but I guess my plan sort of requires me to hold that bias, or I would need to allocate my capital differently.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: arebelspy on January 20, 2016, 02:18:24 AM
Paragraph 1: Agree.

Paragraph 2: Agree.

Paragraph 3: Somewhat disagree.  If you've bought right, the leverage is irrelevant.  As I mentioned in the first interview, stocks vs. real estate, Vegas home prices fell 60% peak-to-trough, while median rents dropped 5% (1k to 950/mo), and vacancies actually declined (due to foreclosed people needing places to rent now).  The vacancy thing was mostly a fluke though, typically it does go up in a recession.  It's only a somewhat disagree because it's true that if you're overleveraged/bought wrong and any slight drop in rent or increase in vacancy causes you to be cash flow negative, you're at more risk.  But when (for example) rent is $1100/mo and PITI is $300/mo., you have quite a bit of wiggle room for prices to drop or vacancy to increase.  Leverage in equities is rough during downturns due to margin calls.  Mortgages don't have that.  If your stocks drop 50% and your rents drop 10%, I'm happily buying more stocks, the person with stocks is selling low to fund living expenses.  In other words, if you've done it wrong, yes, it's riskier, if you've done it right, it's less risky.

Paragraph 4: Somewhat disagree.  Just because you have a family friend running something doesn't mean you should overweight there and not be diversified. You may think (s)he's a swell person, but that doesn't mean they aren't prone to making mistakes, or that they know better than the market, etc.

Paragraph 5: Strongly agree.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: tj on January 20, 2016, 07:55:09 AM
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Leverage in equities is rough during downturns due to margin calls.

I strongly agree. I wouldn't suggest one take heavy stock exposure while one is in heavy debt and I wouldn't suggest using margin to buy additional stocks, evenmoreso in FIRE when one might be without stable earned income.

Quote
Paragraph 4: Somewhat disagree.  Just because you have a family friend running something doesn't mean you should overweight there and not be diversified. You may think (s)he's a swell person, but that doesn't mean they aren't prone to making mistakes, or that they know better than the market, etc.

Oh, I wasn't suggesting investing in that company just because they are a friend, I just happened to hear about their business because it's been mentioned and it's made me feel like that has reduced the opportunities for your average joe, maybe even pushed up prices a bit. I'm not an individual company guy. (I'm tempted to put some with Warren Buffett though) My lien of thinking was more because they have successfully scaled up a real estate business with the power of scale of holding several thousand single family residences across the country and more competition with these various reit's bulk buying. I wouldn't have the knowledge to analyze each REIT and couldn't tell you why this residential REIT is any better than the others.  I don't believe they have any in my local market because they probably not see any opportunities in California. (Certainly no $300 PITI /$1100 rent opportunities around here.) I just question what would make me think I can do better in real estate on my own  than what the residential REITs have been able to figure out through trial and error. I believe Vegas is actually one of the markets where that particular company has seen the most appreciation in their homes since they started doing this by the way, I'm not sure they have seen equivalent rent increases, which the smaller rent drop vs price drop might support. It's interesting the Vegas was hit so hard, but the rent apparently didn't drop accordingly, but I mean, that's why I temporarily owned here also...the mortgage was so much cheaper than renting a similar unit. Nowadays, mortgages are a lot closer but without the flexibility to leave w/o managing a rental. so I no longer own. I could have spent less on my most recent mortgage than my current rent, but that wasn't somewhere I wanted to be long term, and now I have wiped out all of the debt and have significantly more capital for equities. It made sense to me at the time. :)
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on January 27, 2016, 09:39:10 AM
I just question what would make me think I can do better in real estate on my own  than what the residential REITs have been able to figure out through trial and error.

You might not be able to. But real estate is a fragmented market. An individual investor can go out and walk the streets and find houses and problems that are  not in the easily searchable databases. The big funds can't do that type of work. (Although they can work with "bird dogs" who bring them deals.)
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: RadicalPersonalFinance on January 27, 2016, 09:40:36 AM
I support the pursuit of financial independence as quickly as possible. It's an almost every-other-day theme of my show. Extreme savings is a reliable and proven way to get there. But  it's only one way. Keep an eye out for a forthcoming interview with Jake Desyllas on his excellent new book: "Job Free: Four Ways to Quit the Rat Race and Achieve Financial Freedom on Your Terms." He covers three other ways.

TJ, I've just posted the interview: https://radicalpersonalfinance.com/284-job-free-four-ways-to-quit-the-rat-race-and-achieve-financial-freedom-on-your-terms-interview-with-jake-desyllas/
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: tj on January 27, 2016, 09:51:04 AM
I support the pursuit of financial independence as quickly as possible. It's an almost every-other-day theme of my show. Extreme savings is a reliable and proven way to get there. But  it's only one way. Keep an eye out for a forthcoming interview with Jake Desyllas on his excellent new book: "Job Free: Four Ways to Quit the Rat Race and Achieve Financial Freedom on Your Terms." He covers three other ways.

TJ, I've just posted the interview: https://radicalpersonalfinance.com/284-job-free-four-ways-to-quit-the-rat-race-and-achieve-financial-freedom-on-your-terms-interview-with-jake-desyllas/

Cool, thanks for linking!
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: lhamo on January 27, 2016, 10:08:42 PM
Joshua,

I've been debating whether or not to say anything/ask about this, but it is bothering me too much to just let it go.

Can you explain a bit your reasoning for including references to Rosa Parks and MLK in your latest podcast about avoiding financial frauds?  I guess I understand the connection on an intellectual level -- as with the McDonald's coffee lawsuit there are facts that may run contrary to the commonly held beliefs about these two individuals and their actions.  But on a gut level I found it rather distasteful.  Of all the examples you could choose to reference, why these two?  It seemed out of place/inappropriate and has me wondering if I will continue to subscribe to your podcast. 

I'll admit that we probably don't share the same views on politics or social issues.  But I don't share Dave Ramsey's politics or religious background, and somehow I can manage to tune out most of his rants and sermons and still enjoy the advice and the debt free screams.  But this really bugged me, for some reason.  And I'm also kind of wondering if I am the only one.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: JZinCO on January 27, 2016, 11:12:47 PM

Can you explain a bit your reasoning for including references to Rosa Parks and MLK in your latest podcast about avoiding financial frauds?  I guess I understand the connection on an intellectual level -- as with the McDonald's coffee lawsuit there are facts that may run contrary to the commonly held beliefs about these two individuals and their actions.  But on a gut level I found it rather distasteful.  Of all the examples you could choose to reference, why these two?  It seemed out of place/inappropriate and has me wondering if I will continue to subscribe to your podcast. 
Agreed. I have a few thoughts. First, if MLK had been an adulterer, does that change my view whatsoever about his civil rights work? No, therefore more information does not influence my belief. I think this ran contrary to the thesis which is that more information can open up a position of ignorance and prevent naive decision making. Second, I would have chosen a clearer example, or just focused on Mcdonalds. The best evidence is second hand from David Abernathy. It would be foolish of me to believe MLK was an adulterer based on hearsay and I think it butts against your thesis there Joshua.  And why does it matter if Rosa Parks' defiance was planned or spontaneous? She worked for the NAACP at the time and had been politically active for years so it shouldn't surprise anyone. But again, does it matter?
To repeat myself again, Joshua, you just muddied the water. We celebrate MLK for his civil rights advocacy, he could have been an adulterer, he could have been a socialist (he was), it doesn't matter. In the same way that it doesn't matter that George Washington owned slaves because that is not the part that we hold up. Knowing other aspects of their life doesn't discredit or even color the ideas we uphold. Just like, I will still enjoy your podcast because while I don't like some of your personal opinions, I really enjoy hearing other opinions.

anyway, I felt that particular episode was sloppy and thrown together. The general idea is correct, but the comparisons were squirrely or unclear and the real "meat" of the story (how folks can get taken advantage of in finance, and how promises are oversold and underdelivered) was barely explored with only one good tangible examples (the referenced book).
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: BigBangWeary on January 28, 2016, 04:50:38 AM
7Years, Joshua I am a fan of both your shows, and applaud your work. I had the same reaction as others when you said you were going all-in real estate vs. investing in the markets. I suppose it is unnerving to hear that someone who was a Financial Planner/Adviser by trade has decided to completely exit the stock market all together. I was hoping to hear a solid amount of your savings were going to be invested in a broad index of passively invested funds, but you seem to have thrown a lot of listeners a curve-ball by going in the direction of real estate.

I can see where you are coming from in terms of trying to avoid certain companies for moral reasons. I suppose the question I have is, if you were not morally opposed to investing in broad index funds, would you? Do you believe in low-cost index investing based on what you have seen and learned from a strictly financial perspective?

Part of me sees a low-growth world for the next several decades due to aging Western populations, massive government debt, and a decreasing rate of population growth worldwide. For those of us concentrating on building wealth more quickly than typically desired, I am also having my own personal self-reflection in regards to the usefulness of a passive, broad-market indexing approach.

Anyways, keep up the good work.
Title: Re: listen to arebelspy answer the most common "Ask a Mustachian" FAQs!
Post by: Basenji on January 28, 2016, 06:51:46 AM
Here's the next installment in the Early Retirement FAQ series with arebelspy! http://radicalpersonalfinance.com/277-early-retirement-faqs-plan-inflation-interview-joe-aka-arebelpsy-just-retired-30-schoolteachers-salary/
I love it when a good thread I missed the first time is resurrected.