Mr. Money Mustache – Early Retirement Made Easy (Rebroadcast)
Play episode · 34 min

To celebrate the 5-year anniversary of launching the Financial Independence Podcast, I've republished the very first interview I recorded back in 2012 with Mr. Money Mustache.

In addition to the original interview, this episode also contains an updated introduction that tells the story behind the interview!

Highlights:

  • How Mr. Money Mustache and his wife retired in their early 30s
  • Why he decided to start writing about financial independence
  • The benefits of raising children after you’ve already retired
  • What MMM likes most about early retirement
  • Why you need to ride a bike
ChooseFI
ChooseFI
The Unstuck Network
262 | How to Decide | Annie Duke
* Annie Duke is a world champion poker player and author of Thinking in Bets, a book which makes the case for embracing uncertainty in our decision-making framework. In Annie's latest book, How to Decide: Simple Tools for Making Better Choices, she answers the question, what does a good decision-making process look like and how to incorporate that into your own life. * The only way we can become better at making decisions is from our own experience, and our experience is going to be the outcomes of past decisions we've made. We need to understand the way in which knowing how something turned out can mess with our ability to figure out why. * In a thought experiment concerning the 2015 Super Bowl between the Seahawks and the Patriots, Annie reviews a play called by Pete Carroll in the last seconds of the game. Though widely panned as the worst play called in Super Bowl history, Annie states that it's hard to evaluate the quality of the play called when we already know the outcome. * Had the outcome of Pete Carroll's play been a touchdown, the reaction would have been the opposite. This phenomenon is called Resulting, where the quality of the result is attributed the quality of the decision. * Reviewing the actual odds of the result of that specific play, Annie determines that Pete Carroll's decision was far from the worst play called of all time as there was only a 25 likelihood of that specific result. * Annie applies what she's learned playing poker, specifically realizing that what you see happen doesn't change the decision that you make, to other aspects of life. * The paradox of experience is that while we know we need all of these experiences to learn, we see how things unfold and we take our lessons for individual experiences, not in the aggregate. * Poker has some surprising similarities to real life in that your outcome is a combination of luck and the quality of your decisions. * The definition of luck is what you don't have control over. You cannot control your own luck. You can control the quality of the decisions you make and reduce the chance that luck has an influence that will turn out poorly for you. While we are all under the influence of luck, we are also very much under the influence of our own decisions. * In our decision making, we should see the luck clearly and make the decisions that are more likely to advance our goals. Brad ties that to ChooseFI's philosophy of the aggravation of marginal gains and striving to do 1% better. * We have a lot of cognitive bias that delude us into believing things are much more stable than they really are. COVID has torn that away from us. We are also feeling the effect of imperfect information. COVID is not a special case, it's just something we can't hide from the uncertainty. * COVID does give us an opportunity to think about how to navigate uncertainty which will improve all decisions we make. * A pro and con list has no dimensions to it, specifically missing are the magnitude of the payoff or how much will it advance or take away from your goal, and what is the probability of each con. These lists also amply biases you already have and can be gamed to reach a predetermined decision. * With inside view thinking, our personal models create cognitive trenches. When new information comes in, we mold it into a model we already have rather than be objective. * An outside view is what is true of the world. * To try and avoid inside view thinking, we need to expose ourselves to different perspectives of corrective information. * The foundation we base our decisions on is flimsy and full of inaccuracies. We should increase the probability that we collide with perspectives and information we don't know. * It's okay to say you don't know very much and decide to get more information to become a better decision-maker. * Making a good decision with one stock doesn't necessarily make you a good investor, you would have to look at all the decisions made with your portfolio. * When getting to your outside view, it helps to get yourself into the future because it helps us look back on ourselves. We also need to realize that we tend to believe we are more likely to be successful than we actually are. It's helpful to think about all the ways in which you might fail. * A pre-mortem is the idea that time travel and negative thinking will result in an outside view and lead to better decision making. * A backcast is the opposite of a pre-mortem where you look at the luck and skills that lead to a positive outcome. * To find groups of people to get the best opinions from, find people who are interested in finding what is true in the world, but by putting the framework in place, you can turn anybody into an amazing true-seeking pod. * When seeking other's opinions, it's best not to divulge your own opinion beforehand. It results in one of three ways: it might show the other person's opinion is right, the truth may lie in the middle somewhere, or it may show your opinion is right and help you to understand it better. * Annie believes that mostly we should be making decisions faster than we do. The decision-making process is a skill and it takes time to understand which we should be taking our time we should take our time with and which could be faster. * The speed of our decisions should be made by the impact of the decision and optionality available. RESOURCES MENTIONED IN TODAY'S CONVERSATION * Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy * Switch to Mint Mobile and save with free shipping * Get our #1 recommended travel rewards credit card, the Chase Sapphire Preferred and earn 80,000 points * Get started on the path to financial independence at ChooseFI.com/start IF YOU WANT TO SUPPORT CHOOSEFI: * Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy.  * Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence.
1 hr 7 min
Be Wealthy & Smart
Be Wealthy & Smart
Linda P. Jones
To Pass Stimulus or Not to Pass Stimulus?
Learn why the stimulus is only part of the reason the stock market declined and what important events are happening this week that may impact it even more. Are you investing well for financial freedom...or not? As we live our lives, we have seen enormous money be made in real estate, technology stocks, etc. and have seen wild swings in markets before. They can feel scary at the time, but in hindsight are often tremendous opportunities for future financial success. If you only knew where to invest for the long-term, what a difference it would make, because the difference between investing $100k and earning 2% or 10% on your money over 30 years, is the difference between it growing to $181,136 or $1,744,940, an increase of over $1.5 million dollars. Your compounding rate, and how well you invest, matters! INTERESTED IN THE BE WEALTHY & SMART VIP EXPERIENCE? -Asset allocation model with ticker symbols and % to invest -Monthly investing webinars with Linda -Private Facebook group with daily insights -Weekly stock market commentary email -Lifetime access -US and foreign investors, no minimum $ amount required For a limited time, enjoy a 50% savings. More information is here or have complimentary consultation with Linda to answer your questions click here: https://2909395.survey.fm/application-for-vip-experience PLEASE REVIEW THE SHOW ON ITUNES If you enjoyed this episode, please subscribe and leave a review. I love hearing from you! I so appreciate it! SUBSCRIBE TO BE WEALTHY & SMART Click Here to Subscribe Via iTunes Click Here to Subscribe Via Stitcher on an Android Device Click Here to Subscribe Via RSS Feed WEALTH HEIRESS TV Please subscribe to Wealth Heiress TV YouTube channel (it’s not just for women, it’s for men too!), here. PLEASE LEAVE A BOOK REVIEW Leave a book review on Amazon here. Get my book, “You’re Already a Wealth Heiress, Now Think and Act Like One: 6 Practical Steps to Make It a Reality Now!” Men love it too! After all, you are Wealth Heirs. :) Available for purchase on Amazon. International buyers (if you live outside of the US) get my book here. WANT MORE FROM LINDA? Check out her programs. Join her on Instagram. WEALTH LIBRARY OF PODCASTS Listen to the full wealth library of podcasts from the beginning. Use the search bar in the upper right corner of the page to search topics. TODAY'S SPONSOR I want to take a few seconds to tell you about how I “read” more books and stay ahead of the curve. It’s by not reading books, but instead listening to them – like you are right now! With Audible, there are over 150,000 titles to choose from for your iPhone, Android, Kindle or mp3 player and…your first audiobook is FREE! I suggest you get the audio book of Think and Grow Rich, or you can check out my website Resources page where I list all of my favorite financial books and you see exactly what books I have read and recommend you read. Then get started with Audible by visiting https://lindapjones.com/FreeBook and order your first audio book free! Get Think and Grow Rich or another book from my recommend list, and be sure to get started checking off the books you want to read with your free book from Audible! Be Wealthy & Smart,™ is a personal finance show with self-made millionaire Linda P. Jones, America’s Wealth Mentor.™ Learn simple steps that make a big difference to your financial freedom. (Some links are affiliate links. There is no additional cost to you.)
10 min
Sound Investing
Sound Investing
Paul Merriman
Q&A Follow-up: "Which Is The Best 1-,2-, 3- and 4 Fund Strategy?” Part 2
This is the second of three Q&A sessions with Paul Merriman, Chris Pedersen, Director of Research, and Daryl Bahls, Director of Analytics with The Merriman Financial Education Foundation. It is a follow-up to Paul's webinar, “Which Is The Best 1-,2-, 3- and 4 Fund Strategy?” sponsored by the American Association of Individual Investors (AAII) on Sept. 23, 2020.  At the end of that presentation, Paul was joined by Chris and Daryl to address questions for 30 minutes. As there were many more questions than time permitted answering, this podcast — also available as a video — continues to address those audience questions. In this Q&A session, the three “conflict-free teachers” dive into these big topics: • Equity asset class selection • Comparing returns • Dollar-cost averaging • Sequence returns and risks in accumulation and distribution stages Questions addressed include: - Why don’t you include small and large growth in your recommendations? - Gold and commodities: why not? - What’s the value of adding international funds? - Does it matter whether you use Vanguard or Fidelity Funds? - Do you use Portfolio Visualizer to understand the factor weighing of your portfolio? - How do your “Best in Class” ETFs, that duplicate DFA’s, compete with Vanguard? - Which strategies are better when you consider tax implications of rebalancing? Paul answers this last question briefly, citing from and recommending DIYers read “Your Complete Guide to a Successful and Secure Retirement” by Larry Swedroe and Kevin Grogan. Click here to download the pdf presentation, with enormous thanks to Daryl Bahls, our Director of Analytics, for his insightful Tables. Find links to the various tables and strategies mentioned at: https://paulmerriman.com/pauls-important-advice/
1 hr 4 min
So Money with Farnoosh Torabi
So Money with Farnoosh Torabi
Farnoosh Torabi
1110: Sally Taylor: Vice President and General Manager, FICO
This episode is part of a two-episode series in partnership with FICO. Our initial episode tackled all of your top credit score-related questions. FICO's Joanne Gaskin joined to co-host. You can listen to the full episode here. Today we welcome Sally Taylor, Vice President and General Manager of B2B Scores at FICO. As a product executive in the predictive analytics and decision management space, Sally has many years’ experience shaping, managing and delivering products that help businesses improve their operations and generate high ROI. She's been part of amazing transformations – such as leading the FICO Scores adoption to revolutionize the mortgage industry, to initial business uses of mathematical optimization in the credit industry – to currently making analytics accessible and consumable via the FICO Analytic Cloud Marketplace. In her current role, Sally manages a team of 60 professionals responsible for business development and partner relations, product strategy and management, marketing, analytic and software development, analytic delivery and project management for global business-to-business FICO score products. Learn more about Sally: FICO Blog: FICO Celebrates 30th Anniversary of the FICO Score Spotlighting global financial inclusion innovation at 2019 FICO World VIDEO – Fox Business: What is a FICO Score? Forbes byline: Top Three Data Trends Helping To Transform Lending Thrive Global: FICO VP Sally Taylor: “As with any social movement, walls come down when people respect and understand each other.” Yahoo Finance: 10 Powerful Women in Finance Share Their Ideas on Achieving on Gender Parity
25 min
Invest Like a Boss
Invest Like a Boss
Sam Marks & Johnny FD
158: Peter Mallouk Talks The Path with Tony Robbins
Peter Mallouk is the President of Creative Planning, named the #1 Independent Financial Advisory Firm in America by Barron’s (2017). Barron’s magazine named Peter the #1 Independent Financial Advisor in America three straight years (2013, 2014, and 2015). CNBC named Creative Planning the #1 Independent Wealth Management Firm in the United States on the only rankings the network ever released (2014–2015). Peter is featured on Worth magazine’s 2017 and 2018 Power 100 rankings, a list featuring the 100 most powerful men and women in global finance. In 2017, Peter was a recipient of the Ernst & Young Central Midwest Entrepreneur of the Year Award. Creative Planning provides comprehensive wealth management services to high-net-worth clients, including investment management, financial planning, charitable planning, retirement plan consulting, tax planning, and estate planning services. Creative Planning currently manages nearly $50 billion for clients in all fifty states. Reach Out to Peter Mallouk * Creative Planning * Twitter * Facebook Listen to ILAB 158 on iTunes here or subscribe on your favorite podcast app. Where we are: * Johnny FD – Sri Lanka / IG @johnnyfdk * Sam Marks – South Carolina / IG @imsammarks * Derek Spartz – Los Angeles / IG @derekradio Sponsor: * Indeed * Support Invest Like a Boss: Join our Patreon Discussed: The Path: Accelerating Your Journey to Financial Freedom is Peter Mallouk & Tony Robbins' Regardless of your stage of life and your current financial picture, the quest for financial freedom can indeed be conquered. The journey will demand the right tools and strategies along with the mindset of money mastery. With decades of collective wisdom and hands-on experience, your guides for this expedition are Peter Mallouk, the only man in history to be ranked the #1 Financial Advisor in the U.S. for three consecutive years by Barron’s (2013, 2014, 2015), and Tony Robbins, the world-renowned life and business strategist. Mallouk and Robbins take the seemingly daunting goal of financial freedom and simplify it into a step-by-step process that anyone can achieve. Like these investments? Try them with these special ILAB links: * ArtofFX – Start with just a $10,000 account (reduced from $25,000) * Fundrise – Start with only $1,000 into their REIT funds (non-accredited investors OK) * Betterment – Get up to 1 year managed free * Wealthfront – Get your first $15,000 managed free * PeerStreet – Get a 1% yield bump on your first loan *Johnny and Sam use all of the above services personally. Time Stamps: * 8:22 – Why the New Book? * 9:26 – Why was it necessary to include “the 6 human needs” in the book? * 14:06 – Why do people have financial success but still are not happy? * 15:57 – What still drives you to grow your business? * 17:14 – How did you get started and how did you meet Toni? * 24:47 – What are your thoughts on the All Seasons portfolio? * 29:03 – What are your thoughts going forward with the US Stock market? * 31:08 – How are you personally invested? * 32:30 – What are the advantages of using your company as opposed to going directly? * 34:42 – How do you feel about crypto currency? * 36:52 – What does financial freedom look like? * 38:56 – Johnny and Derek Recap If you enjoyed this episode, do us a favor and share it! Also if you haven’t already, please take a minute to leave us a 5-star review on iTunes and claim your bonus here! Copyright 2020. All rights reserved. Read our disclaimer here.
48 min
The Rational Reminder Podcast
The Rational Reminder Podcast
Benjamin Felix & Cameron Passmore
Annie Duke: How to Decide (EP.120)
Good decision-making is a fundamental part of achieving our goals, so getting better at it would be in anybody’s best interest. Here to talk about making better decisions is Annie Duke, expert poker player and author of How to Decide: Simple Tools for Making Better Decisions, and Thinking in Bets. Annie starts by defining what a good decision should look like and some of the steps involved. From there, we explore the idea of how to accommodate the fact that our preferences change and we sometimes do not even know what they are in our decision-making processes. Uncertainty is a big part of what makes future choices difficult, and Annie talks about how it is caused by either luck or ignorance, the latter of which we can control, thereby reducing uncertainty as much as possible. Another big theme today how to know which decisions to spend time on and which not to. We waste a lot of time on choices that do not affect our happiness much, and on the other end of the scale, big choices often are hard because the different outcomes they present look quite similar. Annie gives us a few tools to deal with both scenarios. Toward the end, Annie dives deeper into what a good decision involves, talking about the need to step outside our beliefs by building an evidentiary record of the process which involves outside input. Tune in for a fascinating conversation that will help you get better at choosing. Key Points From This Episode: * Introducing today’s guest, Annie Duke, and her work on decision-making. [0:00:16.3] * The definition of a good decision and the steps involved in making one. [0:02:51.3] * Examining probabilities of potential choices and the beliefs informing the examination. [0:05:00.3] * Factoring in the possibility of preferences changing while making decisions. [0:08:56.3] * Beliefs as formed by actions, and how to not see a change in course as failure. [0:13:30.3] * When our preferences are clear and when they are not. [0:15:00.3] * Dealing two kinds of uncertainty, one based on luck and the other on ignorance. [0:16:39.3] * How to know how much time to spend on making decisions, and the need to record the process. [0:20:49.3] * Using the ‘happiness test’ to judge decisions and free up time for the important ones.[0:27:46.3] * Choosing ‘quittable’ things to gather information for more binding decisions. [0:30:03.3] * Doing things in parallel so you don’t have to make one choice. [0:31:57.3] * Understanding that choices become hard when they present similar outcomes, thus that it is not sensible to deliberate too long. [0:32:32.3] * How to speed up the harder decisions; the ‘only option test’. [0:35:47.3] * Involving others while producing an evidentiary record of a decision-making process. [0:37:11.3] * How often we should aim to update our beliefs, making them less subjective. [0:37:11.3]
54 min
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