Who is John Bogle? Founder of Vanguard

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A few months ago, I talked about Warren Buffet, an incredible investor. Today, I am going to talk about another great man of finance, John C. Bogle, also called Jack. John Bogle is especially famous for being the founder of Vanguard. Vanguard is probably one of the most famous mutual fund company. I have recently talked about several things that makes Vanguard unique. It is a great company. Its greatness is mostly due to the way John Bogle founded Vanguard.

Not only did he create the first index fund. But he also advocates for very cheap fees on mutual funds. He did a lot of good for investors like us! Without him, we would have to pay much more fees for our investment portfolio. He has a lot to teach us in terms of investing philosophy.

In this post, I am going to talk about the history of John Bogle and of the Vanguard company. I am also going to talk about his investing philosophy and the man he is. He led a very interesting life.

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What kind of FIRE are you?

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The Financial Independence and Retire Early (FIRE) movement is not very old. But now it is starting to get traction. There is a ton of blogs on the subject and we are starting to see several articles on the media about the FIRE movement. With many different people starting to follow the movement, there are now several sub-movements with different kinds of FIRE. You probably have heard of the FIRE way. But have you heard of Lean FIRE or Fat FIRE?

I thought it would be very interesting to see what are all these different FIRE ways. All these acronyms are a bit ambiguous and can make matters a bit complicated. It is not extremely important to know which kind of FIRE you are. But it is an interesting thought :)

Once you finished reading this post, you will know what kind of FIRE you are! Or maybe you will define a new kind of FIRE! And that is perfectly fine. Each way to FIRE has its differences.

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Fair Comparison of Brokers: Interactive Brokers Tiered Pricing

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A few days ago, I posted a comparison between Interactive Brokers and DEGIRO. It turned out from this comparison that DEGIRO was always cheaper than Interactive Brokers.

While the comparison was fair, I did a “mistake”. Indeed, one of my readers pointed out that I only considered Fixed Pricing of Interactive Brokers. I forgot to consider Tiered Pricing. Tiered Pricing is a much more complicated pricing system that Interactive Brokers offers. I was thinking that it was only an account for big traders. But it turns out it is not the case. Indeed, it may be cheaper in some cases.

In fact, I did two “mistakes”. I also realized I did not take currency exchange into account. With these two mistakes, I thought it would be best to update my comparison in order to be fair. I do not want to present incomplete comparisons on this blog.

In this post, I am going to present this pricing system and compare once again the two brokers. Thanks a lot to cashfl0w for pointing out my mistake. Once again, I always welcome comments, especially when they help me learn new things.

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What makes Vanguard unique?

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If you read personal finance blogs, you will see that most of them are advocating investing in Vanguard Index Funds. On this blog, I also recommend using their index funds in most cases. I have more than 75% of my portfolio invested in Vanguard funds. And I plan to continue investing with of my money into their funds.

There are many different mutual funds companies. You probably have heard about Fidelity, BlackRock or T. Rowe. And there are others. But most people are talking about Vanguard. So what makes Vanguard so unique? Why is everybody recommending you to invest in their index funds?

I believe they are the best mutual fund company currently. There are many reasons that make them so great. In this post, we are covering the main points that make Vanguard unique.

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How Millennials Can Get Rich Slowly Book Review

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I just finished reading another tiny book. I read “If You Can: How Millennials Can Get Rich Slowly”, by William J. Bernstein, on my Kindle. This is a quite recent book, from 2014. This is a simple book about how you can get rich slowly. It is specially tailored for millennials. The book is organized around five different hurdles in order to reach the goal of getting rich. I was lucky enough to find it for cheap on Kindle.

There is something very important in this book. The author insists on the fact that you can only get rich if you really want to go there. You need to do the job. There is no get-rich scheme where you have nothing to do. You need to save money and invest it. If you are not willing to save more money, nobody will do it for you!

Even if this book is titled for millennials, everybody can profit from it. In this post, we are going to see what this book has to offer you.

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How much will you spend in retirement?

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If you want to reach Financial Independence and be able to retire, you need to know how much you are going to spend while retired. If you are retiring next year, it is really easy to know how much you are going to spend. However, if you are going to retire in a long time, it is not trivial to estimate your retirement expenses.

I have already talked about the different ways tor each Financial Independence (FI). Regardless of which way you choose to reach FI, you will need an accurate estimation of your retirement expenses. Without this, you will not be able to know how much of the road remains.

You could think that you are going to spend exactly the same as you spend now. But this is quite wrong. You need to take into account many things. You will normally pay fewer taxes. But your health expenses are likely to increase. And inflation will increase your expenses significantly over the years.

In this post, I am going to cover the main points that will impact your retirement spending. It is not a surefire way to estimate your retirement expenses. But it will definitely help if you want an accurate estimation.

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5 Sure Ways to reach Financial Independence

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We have seen that there are many reasons to want to reach Financial Independence (FI). Once you reach FI, you can do what you want without having to worry about money. This is awesome! You only keep working if you want to. This is something most people would want to achieve. For me, my ultimate goal is to reach FI.

There are several ways to achieve Financial Independence. Indeed, there is not a single path to go from where are you now to the point where you are financially independent. Of course, there are some similarities between some of these ways. But they are different enough. Most of the time, you will need to follow several of these ways to reach Financial Independence earlier.

In this post, we are going to see the different paths you can take to become financially independent. There are surely other ways to reach Financial Independence. But these are the main ways and the ones I know. If you know of another sure way to become financially independent, I would be glad to hear about it.

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7 Simple steps to change bank account

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Recently, my previous bank increased their fees. So I decided to change to a new bank account. After some research, I switched from PostFinance to Migros Bank. It may seem very easy to change your bank account. But there are many things you need to think about when you are doing it. Before I switched, I was thinking it was some work. But I was not thinking of everything I had to change. In this post, I am going to detail the things you have to think of for changing to your new bank account.

Another thing I tried to do during this change of bank account is to make it easier for the next time. I do not think it is a good thing to be tied to a single bank account. Next time, I want the process to be easier. So I am also going to share what I did to make it easier for next time. Hopefully, I will not have to change my bank account for a long time. But in the event of a change, I will be more prepared for it.

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Should you contribute to your second pillar ?

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In Switzerland, you can do a voluntary contribution to your second pillar. The second pillar is the Swiss equivalent of a 401(K). These contributions come with some tax advantages since you can deduct that from your income. Therefore, you have a return equal to your marginal tax rate. However, the money is then blocked into the second pillar. And the returns on that blocked money have been very low in recent years. Finally, you can only withdraw the money from your second pillar if you retire, if you buy a house or if you start a company.

One question that I actually ask myself these days is whether I should contribute money to my second pillar or continue investing in stocks. These days we are able to invest enough money each month that I am wondering about this. I could contribute some money to my second pillar and continue to invest enough in stocks. But is it a good solution. In this post, I am going to try to answer this question.

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How to build a nice shoe rack for 35$

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I have finally been able to do my second Do-It-Yourself (DIY) furniture. I have built a nice shoe rack. And I managed to keep it on a nice budget! I wanted to do this project for a long time now. But either I did not find the time or our budget was too bad to afford this. It is not a big price. But I did not want to make some months even worse than they already were.

But finally, here it is! Four months after our DIY bookshelf project, I have been able to build my second DIY furniture. Since Mrs. The Poor Swiss joined me in Switzerland, the number of shoes in our apartment exploded. I have only three pairs of shoes for the entire year. But Mrs. The Poor Swiss already has about ten pairs ;) So we needed a new shoe rack. And I wanted to build it myself :)

I managed to build a nice enough shoe rack for about 35 dollars. For the size of it and the look of it, I think it’s a really nice price. But I will let you judge. Remember that I am no expert in wood or furniture making! I am just starting out. So if you have any advice for me, I would really appreciate!

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