Guest: Jared Dillian is the editor of The Daily Dirtnap, a daily market newsletter for investment professionals.
Recorded: 1/17/2024 | Run-Time: 49:41
Summary: Jared’s back on the podcast to talk about his book titled, No Worries: How to live a stress-free financial life, which just released yesterday. Jared talks about the 80/20 rule applied to personal finance, his “no worries” approach to investing, which he calls the awesome portfolio, and I bet you’ll be surprised by which asset has performed best since 2000. We also get Jared’s take on the market today. He touches on inflation, private equity, the bond market and more.
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Links from the Episode:
1.20 – Welcome Jared back to the show; Episode #344: Jared Dillian
5:02 – Unpacking the concept “we get to choose how much money we have”
6:56 – Applying the 80/20 rule to personal finance
10:14 – Clarifying acronyms from ‘No Worries: How To Live A Stress Free Financial Life‘
14:57 – Considering the implications of young people accruing debt
18:11 – Different investment strategies & the Awesome Portfolio
34:41 – Jared’s take on inflation and higher interest rates
36:58 – Assessing the current state of the market
43:26 – Concerns about Tony Robbins book
45:53 – Integrating AI into the process of writing
Learn more about Jared: The Daily Dirtnap, Jared Dillian Money
Transcript:
Welcome Message: Welcome to The Meb Faber Show, where the focus is on helping you grow and preserve your wealth. Join us as we discuss the craft of investing and uncover new and profitable ideas, all to help you grow wealthier and wiser. Better investing starts here.
Disclaimer: Meb Faber is the co-founder and chief investment officer at Cambria Investment Management. Due to industry regulations, he will not discuss any of Cambria’s funds on this podcast. All opinions expressed by podcast participants are solely their own opinions and do not reflect the opinion of Cambria Investment Management or its affiliates. For more information, visit cambriainvestments.com.
Meb: What’s up, everybody? We got a super fun episode with a three-time returning guest, Jared Dillian, editor of The Daily DirtNap, a daily market newsletter for investment professionals. Jared’s back on the podcast to talk about his new book titled No Worries: How to Live A Stress-free Financial Life, which just released yesterday. Jared talks about the 80/20 rule applied to personal finance, his no worries approach to investing, which he calls the Awesome Portfolio. I bet you’ll be surprised by which asset has performed best since 2000. We also get Jared’s take on the market today. He touches on inflation, private equity, the bond market and more. Please enjoy this episode with Jared Dillian.
Jared, my friend, welcome back to the show.
Jared: Thanks for having me a third time.
Meb: We find you back in South Carolina.
Jared: Yep. 44 degrees in Myrtle Beach today. It’s a little chilly here today, but yep, in my studio, in my office in Myrtle Beach.
Meb: Well, we got a new book out. The name is called No Worries: How to Live a Stress-free Financial Life. You having a party? There you go, we can both show ours. I got mine here too. You can see there’s one on the bookcase right behind the bat for posterity. Having a party, DJ Stochastic as I like to call you, what’s the story with the book? I read it. I loved it. What was the inspiration? This isn’t your first book.
Jared: No, this is my fourth book. First of all, let me just say that my first book was a memoir. My second book was a novel. My third book was an essay collection. This is trade nonfiction. My next book is going to be a collection of short stories.
Meb: Romantic comedy? You’re going to try to hit every genre?
Jared: Yeah. Literally, I think I’m the only writer ever to do this, and I’m not kidding, but I got the inspiration back in 2018. I’ve always been super interested in personal finance. I think I’ve done well personally with personal finance, and I wanted to build a business around helping other people. One of the first things we did with that was I started a radio show. I actually had a show on terrestrial radio. It went for two years. It was five nights a week, two hours. People called in, and the show was a failure. We went bankrupt. But if you sit in a room for two hours a night and just talk about your ideas about personal finance, you come to some interesting conclusions. With the calls that I was getting, what I was hearing from people was that they were stressed out about money. So I started to think about the whole personal finance industry, which consists of Dave Ramsey and Suze Orman and Robert Kiyosaki and a bunch of other knuckleheads, they tell people to do things which actually increases their financial stress. If you go into the bookstore in Barnes & Noble and you look at the shelf, you have books like 10 Easy Ways to Become a Millionaire and How to Become a Millionaire and stuff like that. It’s not really about that. It’s about being happy. It’s about being comfortable and satisfied and living a stress-free financial life. This book is the culmination really, of all the ideas that I had when I was talking on the radio for two years.
Meb: I wonder how much of this is evolutionary ingrained versus learned culturally. Some of the discussion about some of these new GLP-1 drugs is it says it reduces some of the food noise in people’s head where it’s almost like a voice that’s been quieted. I feel like everyone, the vast majority of people have this money voice, and it could be from their childhood, it could be, who knows, genetic in some sense? But they’re replaying a lot of these scripts that they’ve had for their entire life about thrift. So many emotions wrapped up, “Should I feel guilty about buying this? How do I think about it?” What’s cool is your book really takes that tact of, how can I reduce that noise? We’ll go through some of your hot takes ’cause there’s a few in here. I figured we’d start off with a kickoff question, which was, you say at one point we get to choose how much money we have. What do you mean by that? Because I feel like if you were to ask people if that’s something that is necessarily a choice, most would say not necessarily. So what do you mean by that?
Jared: You know what? I’m glad you brought that up. I believe that statement to my core. I believe that we all get to choose how much money we have. Money is a choice. You can choose to make as much money as you want or as little money as you want. If you decide you’re going to be a teacher, you’re going to be an educator. Being a teacher doesn’t pay very well. It’s a great job. A lot of social currency. People love teachers. But if you decide that, you are choosing to make less money on purpose, okay? There’s nothing dishonorable about that path. It’s a very honorable profession. We need teachers, we need good teachers, but you know going into it that it doesn’t pay well and you are choosing to make less money on purpose. If money was important to you, you would do something different. You would choose a career that pays more or you would start a business or you would do passive income or you would do something but you would choose to make more. Even me, I make a decent amount of money. I have this newsletter. The newsletter business is great. Okay. I’m choosing the amount of money I have. I could manage money for sure. I could start a hedge fund. I’m perfectly qualified to do that, or I…
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