ChooseFI | Financial Independence Podcast

Switching investment strategies mid-course destroys more wealth than choosing the wrong portfolio from day one. Jonathan Mendonsa and Brad Barrett unpack Paul Merriman's ultimate buy-and-hold strategy and reveal why the community surrounding financial independence matters as much as the money itself—especially after attending the world premiere of the "Playing With Fire" documentary in San Diego. Brad recaps the premiere, where 250 community members turned a screening into a celebration of financial independence. The energy of watching with others who share your goals transformed the experience, reinforcing a key principle: this journey works better with others alongside you. The conversation shifts to Merriman's investment philosophy, particularly his "two funds for life" approach. Merriman advocates for simple, diversified portfolios held long-term, balancing risk and return through strategic asset allocation. The hosts emphasize that better returns come from accepting more risk, not from superior fund selection or market timing. Upcoming screenings in Washington DC, Seattle, and Atlanta offer more opportunities to experience the documentary with local communities. The hosts encourage connecting with local ChooseFI groups at choosefi.com/local to find events and build relationships with others pursuing financial independence. A critical insight emerges repeatedly: staying committed to your chosen investment strategy matters more than picking the perfect portfolio. Switching between strategies undermines long-term success. Whether you choose a simple two-fund portfolio or a more diversified approach, consistency over decades builds wealth. Chapters Introduction to the Episode — 00:00:00 Recap of Playing With Fire Premiere — 00:01:03 Brad describes the premiere in San Diego, where 250 attendees celebrated the documentary and the financial independence community. Upcoming Documentary Screenings — 00:03:39 Information about upcoming screenings in Washington DC, Seattle, and Atlanta. Listeners encouraged to purchase tickets and attend with others. Paul Merriman's Investment Strategies — 00:11:40 Overview of Merriman's investment approaches, including the "two funds for life" strategy and principles of effective diversification. Using M1 for Automated Investing — 00:33:01 Key Quotes "Experience financial independence with a community—don't watch alone!" — 00:02:34 "Everyone's path to financial independence is unique." — 00:08:07 "Returns are linked to risk—understand the balance!" — 00:17:02 "Stick to your investment strategy to avoid setbacks." — 00:30:02 Resources Playing With Fire Documentary — 00:03:39 Terminology Buy-and-hold portfolio — An investment strategy that involves buying and holding a diversified portfolio for a long period of time. — 00:11:11 Asset allocation — The process of deciding how to distribute your investments among different asset categories. — 00:17:02 Support the ShowWe work hard to keep ChooseFI ad-free for a clean listening experience. The easiest way to support us is to use our Top Recommended Cards page when signing up for your next travel rewards credit card.

Most investors settle for market returns—but what if deliberately tilting your portfolio toward historically undervalued, overlooked companies could tilt the odds in your favor? Brad and Jonathan sit down with investment educator Paul Merriman to explore his "ultimate buy-and-hold portfolio" approach and how it differs from the single-fund simplicity championed by J.L. Collins and the Bogleheads. The conversation unpacks small-cap value investing, the emotional discipline required to stay the course during downturns, and why owning everything guarantees you capture the top performers. Chapters Introduction to Paul Merriman [00:01:27] Background as a stockbroker and investment advisor; transition from traditional brokerage to teaching DIY investment strategies. Paul's Investment Philosophy [00:06:07] Emphasis on simplicity and client empowerment; understanding emotional challenges in investing. The Importance of Understanding Risk [00:09:25] Identifying personal risk tolerance to align with investment strategies; the critical emotional hurdle is staying the course. Dollar Cost Averaging Explained [00:15:14] Benefits of regularly investing fixed amounts, especially during market downturns; historical examples showing improved returns. Defining Value and Growth [00:19:11] Differences between value and growth stocks; value stocks' historical performance and the benefits of investing in out-of-favor companies. Merriman's Ultimate Buy and Hold Portfolio [00:32:55] Discussion of a diversified portfolio strategy incorporating small-cap value and other asset classes; comparison with traditional single-fund strategies emphasizing broader allocation. Conclusion and Key Takeaways [01:12:00] Recap of Merriman's strategies, including the importance of decision-making and staying informed; encouragement to consider diversification and small-cap value for enhanced returns. Key Takeaways Review your current investment portfolio for diversification [00:36:14] Implement dollar cost averaging into your investment strategy [00:15:14] Evaluate target date funds based on their glide path, focusing on those that limit bond exposure in younger age brackets [00:52:23] Understand your risk tolerance to align with investment strategies Small-cap value has historically been a top-performing asset class Notable Quotes "Investing is easier, cheaper, and more diversified than ever." — Paul Merriman [00:12:41] "Always prepare for the worst while hoping for the best outcome." — Paul Merriman [00:31:15] "Keeping it simple often yields better returns than complexity." — Paul Merriman [00:49:23] "Owning all guarantees access to the top performing 4%." — Paul Merriman [00:42:00] "Investing regularly during downturns can enhance long-term gains." — Paul Merriman [00:15:14] Resources Paul Merriman's Website [01:12:16] Your Money and Your Brain by Jason Zweig [01:10:03] Terminology Small Cap Value [00:19:11]: Stocks of relatively small companies that are trading at a price lower than their intrinsic value. Dollar Cost Averaging [00:15:14]: Investing a fixed amount regularly to reduce overall impact of market volatility. Target Date Fund [00:52:01]: A mutual fund that automatically adjusts its asset allocation according to the target retirement date. ▶ Listen Next: Ep. 136 — How to Fund Your Child's Roth IRA and Other Tax Strategies | Essential ListeningSupport the ShowWe work hard to keep ChooseFI ad-free for a clean listening experience. The easiest way to support us is to use our Top Recommended Cards page when signing up for your next travel rewards credit card.

Most people think excelling at your job is enough to advance your career — but what if that's precisely what keeps you stuck in place? When you're the fastest widget maker, they'll probably keep you making widgets. Brad and Jonathan unpack key insights from Camp FI Mid-Atlantic, including conversations with Liz from Chief Mom Officer and John from the Philadelphia local group. Liz breaks down why doing great work is just table stakes — career progression demands strategic volunteering, skill stacking, and visibility beyond your current role. John shares how he hit six figures by 24 through relentless work ethic, mentorship, and positioning himself to capitalize on market opportunities. The episode also touches on public speaking as a confidence builder, libraries as an underrated wealth hack, and the mechanics of asking for a raise with data to back it up. Chapters Introduction and Camp FI Highlights (00:00:00) The Importance of Public Speaking (00:01:55) Liz's Career Growth Strategy (00:07:35) John's Journey to Six-Figure Salary (00:19:09) Wrapping Up and Action Steps (00:46:30) Key Quotes "Reaching six figures requires hard work, luck, and preparation." (00:14:00) "Being the fastest widget maker can limit your growth." (00:08:00) "A library is the ultimate life hack for learning." (00:07:26) "Creating your own luck is essential for success." (00:09:07) "Never hesitate to request a salary increase." (00:43:38) Action Items Explore local volunteering opportunities to enhance your skills (00:09:50) Visit your local library and utilize its resources for personal growth (00:04:20) Evaluate your salary and consider asking for a raise with supporting data (00:43:36) Terminology Travel Rewards — Techniques for earning rewards points through travel-related spending (00:15:05) FI — Financial Independence; a state of having sufficient personal wealth to live long-term without active employment (00:12:00) Talent Stack — A combination of skills that make an individual uniquely valuable (00:03:06) Resources Harvard Business Review Case Studies (00:12:04) How to Fire Blog (00:45:01) Related Episodes Episode 013: Achieving Financial Independence through Intelligent Spending (00:35:00) Episode 045: The Power of Community in Financial Independence (00:15:44) Support the ShowWe work hard to keep ChooseFI ad-free for a clean listening experience. The easiest way to support us is to use our Top Recommended Cards page when signing up for your next travel rewards credit card.

Most people who broke into six figures didn't start there — and thinking they're somehow "different" is the first barrier to getting there yourself. Liz, the voice behind Chief Mom Officer, spent years in a low-paying call center role before systematically hacking her way to a six-figure IT career. Her climb wasn't luck or overnight success — it was strategic use of company education reimbursement, relentless volunteering for high-visibility projects, and knowing when to jump ship for better pay. Here's how she did it, and what you can borrow from her playbook. Key Takeaways: Utilize Education Reimbursement: Leverage company benefits like education reimbursement to further your career. [00:05:54] Volunteer for Growth: Take initiative by volunteering for projects to build skills and enhance your network. [00:14:36] Research Your Worth: Understand your value in the job market to negotiate better salaries. [00:33:09] Embrace Change: Each change in Liz's career led to new opportunities and salary increases. [00:36:26] Continuous Improvement: Improvement is a lifelong journey; success comes from strategic hard work. [00:21:25] Chapters: [00:00:41] Introduction and Listener Question [00:03:01] Liz's Career Journey [00:05:54] Company Reimbursement Insights [00:14:36] The Importance of Volunteering [00:25:03] Lifelong Learning and Negotiation Skills [00:36:55] Embracing Change and Growth [00:41:06] ChooseFI Hot Seat Key Quotes: "When I started my career, I thought people who made six figures were different people than I was." [00:03:43] "You can always get better. You can always improve." [00:02:09] "Each change has brought about new opportunities as well as in many cases, jumps in salary." [00:36:26] "If you want to work towards something else, you have to work hard strategically." [00:21:25] "Most of us, it's going to take a lot of work, a lot of time, some level of luck, and being positioned." [00:39:01] Terminology: BATNA: Best Alternative To a Negotiated Agreement; helps identify your alternatives. [00:32:47] ZOPA: Zone Of Possible Agreement; the range where an agreement is satisfactory to both parties. [00:33:09] Career Hacking: Using strategic approaches to leverage education and experience for career advancement. [00:01:30] Guest: Liz from Chief Mom Officer, a six-figure breadwinner who shares insights on career development. Connect at ChiefMomOfficer.org or on Twitter @LizOfficer and Instagram @Liz_ChiefMomOfficer. Support the ShowWe work hard to keep ChooseFI ad-free for a clean listening experience. The easiest way to support us is to use our Top Recommended Cards page when signing up for your next travel rewards credit card.

MLMs promise wealth through recruitment, but 99% of participants lose money. Jonathan and Brad share their recent experiences with these predatory schemes and explain why the business model is fundamentally broken—you're not selling products, you're selling the dream of selling products to others. Brad's radar went off when an old colleague sent a vague email about a "business venture opportunity." Jonathan faced a similar pitch at lunch the same week. Both recognized the telltale signs: evasive answers, recruitment-focused compensation, and products that can't compete on their own merits. The hosts break down why MLMs fail most participants and contrast them with authentic entrepreneurship. Rather than chasing questionable opportunities, they advocate for side hustles that genuinely excite you and business models built on real value. Beyond MLM warning signs, the conversation explores how expanding your "zone of awareness"—the range of knowledge shaping your decisions—opens doors to legitimate wealth-building strategies. They also examine energy audits as a practical example: some efficiency improvements deliver 18% annual returns while reducing environmental impact. Chapters Introduction to MLM [00:00:00] Brad's Opportunity Experience [00:01:01] Jonathan's Lunch Meeting [00:02:19] Defining MLM vs. Authentic Business [00:08:03] Zone of Awareness Discussion [00:12:26] Energy Audits [00:47:30] Podcast Conclusion [00:58:35] Key Quotes "You're not just selling a product; you're selling people on recruiting more sellers." - Jonathan [00:04:59] "A real opportunity should allow all questions; anything less is a red flag." - Brad [00:07:46] "Choose a side hustle that inspires genuine enthusiasm." - Jonathan [00:13:02] "It's about aligning spending with personal values, not mere frugality." - Jonathan [00:30:05] "Action leads to growth; focus on the process, not just outcomes." - Jonathan [00:52:34] Resources Design Your Future by Dominick Quartuccio [00:57:24] Episode References Episode 067: Discussion on Financial Independence [00:17:10] Episode 121: Sustainable Living with Angela [00:47:30] Support the ShowWe work hard to keep ChooseFI ad-free for a clean listening experience. The easiest way to support us is to use our Top Recommended Cards page when signing up for your next travel rewards credit card.

Most people follow a script written by someone else—get good grades, climb the corporate ladder, defer dreams until retirement. What if the entire premise is backwards? Alan Donegan joins Brad and Jonathan to discuss how financial independence creates a "suit of armor"—a safety net that allows you to pursue creative and professional risks without the paralyzing fear of failure. The conversation explores breaking away from societal expectations, experimenting with different life paths, and consciously choosing fulfillment over convention. Alan shares personal experiences of questioning authority, trusting intuition, and developing the courage to reject traditional definitions of success. Key Topics: [00:03:08] The Challenge of Society's Expectations Societal scripts and traditional paths "Consciously choose your path." [00:10:00] Navigating Authority and Intuition Questioning authority and trusting your own intuition [00:15:57] Experiments and Intentional Living "For different results, make different choices." "Envision your ideal life!" [00:16:04] Trying New Opportunities "Try it to know it!" Experimenting to understand what you enjoy [00:19:12] Creating Your Suit of Armor: Financial Independence Understanding financial independence as a safety net for pursuing dreams The "suit of armor" metaphor for financial security that enables risk-taking [00:23:03] Finding Purpose and Happiness in Work Identifying fulfilling work and challenges of following your passion [00:36:28] Courage to Challenge the Norm "Start where you are; progress will follow." Developing courage to reject conventional expectations Related Resources: Pop-Up Business School [00:51:10] Related Episodes: Episode 030: The Side Hustle [00:49:32] Episode 049: Escape Artist [00:49:32] Episode 056: Business Building Coaching Series [00:49:32] ▶ Listen Next: Ep. 130 — The Ultimate Buy and Hold Portfolio Strategy | Essential ListeningSupport the ShowWe work hard to keep ChooseFI ad-free for a clean listening experience. The easiest way to support us is to use our Top Recommended Cards page when signing up for your next travel rewards credit card.

Medical professionals who pursue financial independence often let their health slide—until one doctor discovered that optimizing cellular function through oxygen therapy could reverse decades of decline. Scott Sherr, a physician specializing in integrative and preventative medicine, breaks down why the conventional medical model fails most patients and what you can do about it. Key Topics & Timestamps [00:00:40] Introduction to Health Optimization Why health becomes a priority once financial stability is addressed The connection between financial independence and personal well-being [00:02:13] Discussion with Scott Sherr Scott Sherr's background in health optimization medicine [00:06:14] Understanding Hyperbaric Oxygen Therapy How hyperbaric oxygen therapy promotes healing Different types of hyperbaric chambers and their applications [00:18:06] The Importance of Preventative Medicine Shortcomings of the conventional medical model Why preventative care and lifestyle adjustments beat reactive treatments [00:24:11] Nutrition and Dietary Recommendations Remove processed foods, sugars, and dairy How nutritional value in foods has declined over decades Key Takeaways Remove processed foods, added sugars, and dairy from your diet [00:31:49] Explore hyperbaric oxygen therapy for healing and recovery [00:06:14] Focus on preventative health measures for long-term wellness [00:18:06] Notable Quotes "Health optimization is a strategy for life optimization." [00:01:09] "Eliminate processed foods, sugars, and dairy for better health." [00:31:49] "Fat isn't harmful when not paired with sugar." [00:41:48] "Today's food has significantly less nutritional value than food 50 years ago." [00:24:55] "Focusing on healthspan is crucial for a fulfilling life." [00:57:02] Resources Scott Sherr's website: integrativehbot.com Health Optimization Medicine resources: homesf.co and healthoptimizationmedicine.org Support the ShowWe work hard to keep ChooseFI ad-free for a clean listening experience. The easiest way to support us is to use our Top Recommended Cards page when signing up for your next travel rewards credit card.

Your recent annuity purchase might have just locked you into fees that could cost you tens of thousands over your lifetime—but you're not alone in missing the fine print. Gene wrote to Brad and Jonathan after buying an annuity, uncertain if she made the right call. This episode unpacks her specific situation and reveals when annuities actually make sense versus when they're just expensive insurance products in disguise. Brad and Jonathan tackle Gene's question head-on, with help from Big Earn of Early Retirement Now. They break down immediate versus deferred annuities, longevity risk, and the often-hidden costs that make annuities lucrative for salespeople but questionable for buyers. Gene's annuity includes both fixed and variable components, raising red flags about complexity and fees. The conversation doesn't stop at annuities. Brad and Jonathan cover alternative income strategies like CD ladders, which offer predictable returns without the opacity or commissions. They emphasize shopping around for financial products the same way you would for a television—comparing quotes, understanding terms, and refusing to settle for the first option presented. Beyond the mechanics of retirement income, the hosts address how to teach financial concepts to your family without overwhelming them. Weaving money lessons into daily life, rather than forcing formal sit-downs, helps the next generation absorb principles naturally. Key Takeaways Immediate annuities start paying out right away; deferred annuities delay payments until a future date Annuities hedge longevity risk but often come with high costs and complexity Always compare multiple providers before committing to any financial product CD ladders can provide stable, predictable income without annuity fees Timestamps & Topics [00:20:46] Listener Question about Annuities Gene asks for guidance on her recent annuity purchase and whether it fits her financial plan. [00:24:30] Understanding Annuities Definitions, types, and characteristics of immediate and deferred annuities. [00:26:07] Immediate vs. Deferred Annuities Explaining the differences and appropriate use cases for each type. [00:28:20] Advice for Annuity Holders How to evaluate an annuity's performance and consider alternative strategies. [00:32:14] "Annuities can provide protection against the risk of outliving your savings." Understanding the primary benefit of annuities and their role in retirement planning. [00:42:41] "Don't settle—always compare your options before committing to financial products." The importance of shopping around for the best deal. [00:52:10] CD Ladder as an Alternative Creating a CD ladder as a low-cost alternative income strategy in retirement. Action Items Evaluate your current financial portfolio and how annuities fit into it (or don't) Shop around for financial products—get quotes from multiple providers before committing Notable Quotes "Integrate financial lessons into daily life without overwhelming your family." [00:09:52] "Annuities can provide protection against the risk of outliving your savings." [00:32:14] "Don't settle—always compare your options before committing to financial products." [00:42:41] "You could be completely happy with having 80% to 100% equities for the rest of your life." [00:46:58] Related Resources JL Collins' series on stocks and investments – Context and knowledge for understanding investment strategies Terminology Annuity – A financial product that provides a fixed stream of income, typically used during retirement [00:24:30] CD Ladder – A strategy to manage cash flow in retirement by staggering investments in certificates of deposit with varying maturity dates [00:52:10] Support the ShowWe work hard to keep ChooseFI ad-free for a clean listening experience. The easiest way to support us is to use our Top Recommended Cards page when signing up for your next travel rewards credit card.

Most people wait until they're wealthy or retired to start estate planning—but attorney Mark Moss argues that's already too late. Understanding estate planning helps prevent confusion for loved ones after you're gone, protects assets from unnecessary probate costs, and ensures your wishes are honored. Mark walks through the essential components of building a solid estate plan, from wills and trusts to guardianship decisions and healthcare directives. He also tackles common misconceptions and reveals why adequate planning is critical for adults of any age, not just the affluent. Key Topics Discussed Introduction to Estate Planning [00:01:40] Estate planning is crucial for all adults, as it ensures personal wishes are honored and prevents confusion for loved ones. Understanding Wills [00:03:06] A will saves time, reduces court costs, and outlines how assets should be distributed after death. It's critical for expressing wishes regarding assets and guardianship. Procrastination and Estate Planning [00:10:46] Mark addresses the negative impacts of delaying estate planning. Kid's Guardianship [00:26:27] Guardianship decisions must be clear. Outlining who will care for children is critical in the estate planning process. Trusts vs. Wills [00:33:45] Discussion on the differences between trusts and wills, how they function, and when each is appropriate. Cost of Estate Planning [00:42:33] Insight into the various costs associated with estate planning, providing a range for legal services related to wills and trusts. The Hot Seat [00:51:10] Mark answers rapid-fire questions about personal finance and his experiences. Action Steps Ensure you have a will in place to direct the distribution of your assets. [00:03:06] Review and update your estate plan every three to five years. [00:47:13] Consider setting up a living revocable trust to avoid probate. [00:35:00] Designate guardians for your dependents clearly in your estate planning documents. [00:26:27] Key Quotes "Essential for everyone 18 and above." [00:02:32] "A will saves time, reduces court costs." [00:03:06] "Don't procrastinate on estate planning." [00:10:46] "Guardianship decisions must be clear." [00:26:27] "Always list beneficiaries to avoid probate." [00:21:44] Terminology Estate Planning [00:02:20] The process of arranging for the management and disposal of a person's estate. Will [00:03:06] A legal document that specifies how a person's assets will be distributed after their death. Trust [00:33:45] A legal arrangement where a trustee holds assets for the benefit of beneficiaries. Guardianship [00:26:27] A legal relationship where someone is appointed to make decisions for another person, often for minors. Probate [00:19:54] The judicial process for validating a will and distributing a deceased person's assets. Common Questions What is estate planning? [00:02:20] Involves arranging for the management and disposal of a person's estate during their life and after their death. Is a will necessary? [00:03:06] Yes, a will is critical for expressing an individual's wishes regarding their assets and guardianship. What are the components of an estate plan? [00:31:28] Typically includes a will, trusts, powers of attorney, healthcare directives, and guardianship designations. How frequently should estate plans be updated? [00:47:13] Every three to five years, or upon significant life changes such as marriage or children. Can I DIY my will? [00:49:51] While basic wills can be DIY, professional guidance is recommended when dependents or significant assets are involved. Related Resources Mark Moss Law Website [00:54:54] Millennial Mom Confessions [00:52:04] Episode 125: Family Emergency Binder with Chelsea Brennan [00:00:41] Support the ShowWe work hard to keep ChooseFI ad-free for a clean listening experience. The easiest way to support us is to use our Top Recommended Cards page when signing up for your next travel rewards credit card.

Your spouse might be planning your surprise party three months early because she knows you're too detail-oriented to fool otherwise. Jonathan's wife Laura pulled off the impossible — a genuine surprise for someone who notices everything — by celebrating his 40th birthday two and a half months ahead of schedule. This episode covers that celebration plus a practical deep-dive into grocery shopping hacks, comparing Instacart versus Kroger's ClickList, and listener stories about optimizing food budgets. Celebrating Jonathan's Unbirthday [00:01:48] Jonathan shares the story of his surprise unbirthday party, planned months early to avoid detection. Laura orchestrated the event knowing Jonathan's tendency to pick up on clues would make a traditional surprise impossible. Grocery Shopping Insights [00:04:07] The conversation shifts to online grocery shopping and meal prepping, focusing on how intentional planning saves money and supports healthier eating. Instacart vs. ClickList Comparisons [00:06:06] Jonathan compares pricing and convenience between Instacart and Kroger's ClickList, highlighting significant cost differences between the two services. Instacart: An online grocery delivery service that connects customers with personal shoppers. [00:06:06] ClickList: Kroger's online grocery ordering service allowing customers to order online and pick up in-store. [00:07:04] Impact of Structured Shopping [00:09:35] The hosts discuss how creating a detailed shopping list based on planned meals eliminates impulse purchases and improves both finances and health. "Only purchase what you need for recipes to save money and improve your waistline." [00:09:35] "Financial independence isn't about deprivation—it's about freedom." [00:13:44] "Successful meal prep and budgeting boils down to having a solid plan." [00:14:19] Community Feedback and Stories [00:47:28] The episode concludes with listener stories about optimizing grocery expenses and making progress toward financial independence. "Even if you've struggled financially, there's an opportunity to improve and win." [00:32:52] Timestamps: [00:00:00] Introduction [00:01:48] Celebrating Jonathan's Unbirthday [00:04:07] Grocery Shopping Insights [00:06:06] Instacart vs ClickList Comparisons [00:09:35] Impact of structured shopping on finances and health [00:14:19] Importance of having a plan for meal prepping [00:47:28] Community Feedback and Stories Support the ShowWe work hard to keep ChooseFI ad-free for a clean listening experience. The easiest way to support us is to use our Top Recommended Cards page when signing up for your next travel rewards credit card.