Yerlan's notes on The Simple Path To Wealth

Avoid debt and fiscally irresponsible people. Don’t marry such people

Never buy stocks on margin.

Two possible economic disasters can destroy wealth on a major scale: (deflationary depression e.g. 1929) and hyperinflation.

Inflation is “the hidden tax”.

Spend less than you earn-invest the surplus-avoid debt.

The three tools: 1. Stocks: VTSAX ( Vanguard Total Stock Market Index Fund) - a wealth builder 2. Bonds: VBTLX (Vanguard Total Bonds Market Index Fund) - an inflation hedge 3. Cash: VMMXX (Vanguard Prime Money Market Fund) - a deflation hedge

Before you start trying to pick individual stocks and/or fund managers ask yourself this simple question: “Am I Warren Buffett?” If the answer is “no”, keep your feet firmly on the ground with indexing.

Warren Buffett’s recommendation for individual investors: low-cost, broad-based index funds

But it will mean that you have adjusted your investing to your psychology rather than the other way around.

Money frees you from doing things you dislike. Since I dislike doing nearly everything, money is handy. - Groucho Marx

Withdrawing 3% or less annually is as near a sure bet as anything in this life can be. Stray much further out than 7% and your future will include dining on dog food.

You can withdraw up to 7% as long as you remain alert and flexible. That is, if the market takes a huge dive, cut back on your withdrawals and spending until it recovers.

As individuals we only have one obligation to society: to ensure we, and our children, are not a burden to others. The rest is our personal choice. Make your own and make the world a far more interesting place.

I called my not-yet-then-but-soon-to-be wife😂