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Welcome to Junto, a weekly newsletter where I share tips and strategies from financial experts that you can apply to your own life.
Today’s Topics
The easiest way to get rich
Good vs. bad debt
How to lose 40% of your investment portfolio
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Warren Buffet’s 2022 Letter to Shareholders
Warren Buffet is one of the most successful investors of all time.
Each year, he releases a single, highly anticipated letter to the shareholders of Berkshire Hathaway.
He’s an excellent writer, and his letters contain more investing wisdom per word than anything else I’ve ever read.
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New on Junto
The Easiest Way to Get Rich
“Focus on earning a good income, building your cash savings for emergencies, and then passively investing as much as you can comfortably invest.”
You don’t need to start a business or buy rental properties
Become excellent at your job and learn how to ask for a raise
Side hustles can help, but they can also be distractions
Automate your cash savings and investments
Avoid ALL “get rich quick” schemes
Spend less than you can afford to and invest the rest
My Interview with the CEO of Money Crashers, Andrew Schrage
Andrew Schrage and Gyutae Park founded Money Crashers in 2009, and now it’s one of the top personal finance sites in the United States, with more than 500,000 people visiting each month.
Andrew worked at a Chicago-based hedge fund after graduating from Brown University. He quickly realized his passion for leveling the financial playing field, and voila – Money Crashers was born.
Here are my two favorite questions from the interview:
Cole: What is bad personal finance advice that you hear often?
Andrew: [There are] too many to name, but one of the most common (and potentially harmful) is “all debt is bad.” It’s counterintuitive to argue that you should avoid “helpful” debt like a mortgage, which can help you to build wealth in the long run.”
Cole: What is one of the most common mistakes you see people make in investing?
Andrew: The idea that you need to have a lot of money, like thousands of dollars, to invest. With fractional share investing and low-or-no minimum brokerage accounts, that’s simply not the case anymore. You shouldn’t wait to get started because you only have $100 (or whatever) to invest.
Extras
@jspector Here’s how to lose 40% of your nest egg to fees. https://t.co/c31AHgPXj6
— HonestMath.com (@honest_math)
Dec 19, 2022
It’s no secret that I think most people would be better off without a financial advisor.
The main nuisance that’s missing from these sorts of comparisons is that sometimes people lack the knowledge or discipline to buy and hold low-cost index funds.
That said, I think it’s worth figuring that out to save yourself $1M in fees.
Thank you for reading!
As always, feel free to email me with questions or comments. I respond to every one.
Enjoy your weekend.
Cheers,
Cole
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Disclaimer: This newsletter is for information and entertainment purposes only. I am not an investment or tax professional. Please do your own research. You’re an adult, and you’re responsible for your own decisions. This newsletter may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links (at no cost to you).