Digest

This episode of The Rich Habits Podcast features an interview with Jeremy Snyder, founder of Personal Finance Club, a popular Instagram account with over 619,000 followers. Jeremy shares his story of starting a company in college with no experience, eventually selling it for over $5 million. He discusses his transition from living in borderline poverty to becoming a multi-millionaire and how he navigated the sudden influx of wealth. Jeremy emphasizes the importance of living below your means, investing early and often, and keeping things simple. He advocates for a diversified investment strategy, particularly through target date index funds, which he believes provide a systematic approach to long-term wealth building. The conversation delves into the pros and cons of target date funds, with Austin and Robert expressing their preference for active portfolio management. Jeremy shares his experience with allocating his wealth after selling his company, emphasizing the importance of pausing and avoiding impulsive spending. He highlights the concept of financial freedom and how his investments now provide him with passive income, allowing him to live a comfortable life. The episode concludes with a discussion about Jeremy's new company, Nectarine, an advice-only financial advisor marketplace. He explains the challenges of finding trustworthy financial advisors and how Nectarine aims to address this issue by connecting investors with qualified advisors who provide unbiased advice for a flat fee. The episode ends with a reflection on financial mistakes, with Jeremy sharing his own experiences and emphasizing the importance of learning from them and avoiding emotional decision-making in investing.

Outlines

00:00:00

Introduction

This Chapter introduces the Rich Habits Podcast, hosted by Austin Hankwitz and Robert Croke, and welcomes Jeremy Snyder, founder of Personal Finance Club, as a special guest. The hosts briefly introduce themselves and their backgrounds in entrepreneurship and finance.

00:01:33

Jeremy's Entrepreneurial Journey

This Chapter delves into Jeremy's personal story, starting with his decision to forgo a job offer from Microsoft and embark on his entrepreneurial journey. He describes the challenges of starting a company with no experience, the long hours, and the financial struggles he faced. He shares his experience of selling his company for over $5 million and the sudden transition to multi-millionaire status.

00:02:50

Investment Philosophy and Wealth Building

This Chapter focuses on Jeremy's investment philosophy and advice for building wealth. He emphasizes the importance of living below your means, investing early and often, and keeping things simple. He discusses his preference for target date index funds as a diversified and systematic approach to long-term investing, highlighting the benefits of automatic rebalancing and diversification.

00:11:36

Managing a Windfall and Financial Freedom

This Chapter explores Jeremy's experience with managing a large sum of money after selling his company. He shares his approach to allocating the funds, emphasizing the importance of pausing, avoiding impulsive spending, and prioritizing financial freedom. He discusses how his investments now provide him with passive income, allowing him to live a comfortable life.

00:24:57

Nectarine: An Advice-Only Financial Advisor Marketplace

This Chapter introduces Jeremy's new company, Nectarine, an advice-only financial advisor marketplace. He explains the motivation behind creating Nectarine, highlighting the challenges of finding trustworthy financial advisors who provide unbiased advice. He describes the platform's features, including flat fees, advisor filtering, booking capabilities, and review systems.

00:32:56

Financial Mistakes and Lessons Learned

This Chapter concludes the episode with a discussion about financial mistakes. Jeremy shares his own experiences, including investments that went to zero and the regret of selling winning investments too early. He emphasizes the importance of learning from mistakes, avoiding emotional decision-making, and adopting a long-term perspective in investing.

Keywords

Q&A

• What is Jeremy Snyder's background and how did he become a multi-millionaire?

  Jeremy Snyder is the founder of Personal Finance Club, a popular Instagram account with over 619,000 followers. He started a company in college with no experience and eventually sold it for over $5 million, transitioning from living in borderline poverty to becoming a multi-millionaire.

• What are Jeremy's three key pieces of advice for building wealth?

  Jeremy's three key pieces of advice are: 1) Live below your means, 2) Invest early and often, and 3) Keep things simple.

• What is Jeremy's investment philosophy and why does he prefer target date index funds?

  Jeremy believes in a diversified investment strategy, particularly through target date index funds. He sees them as a systematic approach to long-term wealth building, providing automatic rebalancing and diversification. He believes that the US stock market has outperformed international markets in recent years, but he prefers to diversify across global markets for long-term growth.

• How did Jeremy manage his wealth after selling his company and what is his current financial situation?

  Jeremy emphasizes the importance of pausing and avoiding impulsive spending after receiving a large sum of money. He invested a significant portion of his wealth in ETFs and real estate, and he now enjoys financial freedom, with his investments providing him with passive income.

• What is Nectarine and how does it address the challenges of finding trustworthy financial advisors?

  Nectarine is an advice-only financial advisor marketplace founded by Jeremy Snyder. It connects investors with qualified financial advisors who provide unbiased advice for a flat fee. This model aims to eliminate conflicts of interest and ensure that advisors are not incentivized to push specific products.

• What are some of the biggest financial mistakes Jeremy has made and what lessons has he learned?

  Jeremy shares his experiences with investments that went to zero and the regret of selling winning investments too early. He emphasizes the importance of learning from mistakes, avoiding emotional decision-making, and adopting a long-term perspective in investing.

• What is the difference between a fiduciary and a non-fiduciary financial advisor?

  A fiduciary advisor is legally obligated to act in their client's best interests, even if it means recommending products that do not generate the highest commissions for the advisor. A non-fiduciary advisor is not bound by this legal obligation and may have incentives to recommend products that benefit them financially.

• What are some of the benefits of using a social investing app like Blossom?

  Blossom is a social investing app that allows users to connect with other investors, share their portfolios, and engage in discussions about investing. The app is built around transparency, with users linking their existing brokerage accounts to verify their holdings and portfolios. This fosters trust and authenticity within the community.

• What is Moby and how can it help investors make better decisions?

  Moby is an up-and-coming research platform used by over five million investors to make better informed decisions. The platform provides market updates, individual stock picks, and analysis tools to help investors navigate the stock market.

• What is the key takeaway from this episode of The Rich Habits Podcast?

  The key takeaway is that building wealth requires a long-term perspective, a commitment to living below your means, and a willingness to learn from mistakes. It's important to find trustworthy financial advisors who act in your best interests and to avoid emotional decision-making in investing.

Show Notes