Ep. 329 — The Investing Horse Race

Most investors believe that picking the perfect portfolio is the make-or-break decision on their path to financial independence — but what if the real mistake is never picking one at all? Brad and Jonathan put popular FI strategies head-to-head in a long-term "horse race," tracking performance of portfolios from JL Collins, Paul Merriman, and other community figures. They examine the nuances between simple index fund approaches and more complex tilts toward small-cap value, revealing how timeline and risk tolerance matter as much as returns. The conversation emphasizes that taking action with any reasonable strategy beats perpetual analysis paralysis.

Key Topics

Introduction to the Horse Race Concept 00:01:02
Brad and Jonathan introduce the framework for comparing investment portfolios within the FI community.

Community Meetups and Personal Experiences 00:03:07
Personal anecdotes from recent meetups highlight the strength of community connections and accountability in pursuing financial independence.

Investment Strategies Breakdown 00:13:44
Discussion on various long-term investment strategies and the diversity among different investors.

JL Collins's Strategy 00:20:06
Overview of JL Collins's "Simple Path to Wealth" and the appeal of investing in the Vanguard Total Stock Market Index Fund (VTSAX).

Paul Merriman and More Nuanced Investing 00:28:03
Examination of Paul Merriman's approach to small-cap and value investing, contrasted with more straightforward strategies.

Jillian John's Target Date Strategy 00:38:30
Analysis of Jillian John's use of target date funds for a conservative and hands-off investment approach.

Frank Vasquez and Risk Parity 00:43:10
Insights into Frank Vasquez's unique investment strategies, including his "Basic Accumulation" pie and its returns.

Conclusion and Implementation of Insights 00:54:31
Final thoughts on evaluating investment strategies based on community insights and performance data.

Key Quotes

• "You only lose by not taking action." 00:42:00
• "It's not just about what your risk tolerance is; it's also about what your timeline is." 00:48:34

Action Items

• Evaluate your current investment strategies and compare them with others discussed in the episode to identify areas for improvement.
• Engage with your local ChooseFI group to discuss investment strategies and personal stories. 00:03:07
• Explore the horse race data at choosefi.com/pie to understand various investment approaches. 00:53:46

Related Resources

• JL Collins' Simple Path to Wealth 00:20:06
• Paul Merriman's Investment Strategies 00:28:03

Related Episodes

• Episode 019: The Simple Path to Wealth with JL Collins 00:20:26
• Episode 130: Navigating Small Cap Investing with Paul Merriman 00:28:03