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The Simple Path to Wealth: Your road map to financial independence and a rich, free life
“In the dark, bewildering, trap-infested jungle of misinformation and opaque riddles that is the world of investment, JL Collins is the fatherly wizard on the side of the path, offering a simple map, warm words of encouragement and the tools to forge your way through with confidence. You'll never find a wiser advisor with a bigger heart.� -- Malachi Rempen: Filmmaker, cartoonist, author and self-described ruffian
This book grew out of a series of letters to my daughter concerning various things—mostly about money and investing—she was not yet quite ready to hear.
Since money is the single most powerful tool we have for navigating this complex world we’ve created, understanding it is critical.
“But Dad,� she once said, “I know money is important. I just don’t want to spend my life thinking about it.� This was eye-opening. I love this stuff. But most people have better things to do with their precious time. Bridges to build, diseases to cure, treaties to negotiate, mountains to climb, technologies to create, children to teach, businesses to run.
Unfortunately, benign neglect of things financial leaves you open to the charlatans of the financial world. The people who make investing endlessly complex, because if it can be made complex it becomes more profitable for them, more expensive for us, and we are forced into their waiting arms.
Here’s an important truth: Complex investments exist only to profit those who create and sell them. Not only are they more costly to the investor, they are less effective.
The simple approach I created for her and present now to you, is not only easy to understand and implement, it is more powerful than any other.
Together we’ll explore:
Debt: Why you must avoid it and what to do if you have it.
The importance of having F-you Money.
How to think about money, and the unique way understanding this is key to building your wealth.
Where traditional investing advice goes wrong and what actually works.
What the stock market really is and how it really works.
Why the stock market always goes up and why most people still lose money investing in it.
How to invest in a raging bull, or bear, market.
Specific investments to implement these strategies.
The Wealth Building and Wealth Preservation phases of your investing life and why they are not always tied to your age.
How your asset allocation is tied to those phases and how to choose it.
How to simplify the sometimes confusing world of 401(k), 403(b), TSP, IRA and Roth accounts.
TRFs (Target Retirement Funds), HSAs (Health Savings Accounts) and RMDs (Required Minimum Distributions).
What investment firm to use and why the one I recommend is so far superior to the competition.
Why you should be very cautious when engaging an investment advisor and whether you need to at all.
Why and how you can be conned, and how to avoid becoming prey.
Why I don’t recommend dollar cost averaging.
What financial independence looks like and how to have your money support you.
What the 4% rule is and how to use it to safely spend your wealth.
The truth behind Social Security.
This book grew out of a series of letters to my daughter concerning various things—mostly about money and investing—she was not yet quite ready to hear.
Since money is the single most powerful tool we have for navigating this complex world we’ve created, understanding it is critical.
“But Dad,� she once said, “I know money is important. I just don’t want to spend my life thinking about it.� This was eye-opening. I love this stuff. But most people have better things to do with their precious time. Bridges to build, diseases to cure, treaties to negotiate, mountains to climb, technologies to create, children to teach, businesses to run.
Unfortunately, benign neglect of things financial leaves you open to the charlatans of the financial world. The people who make investing endlessly complex, because if it can be made complex it becomes more profitable for them, more expensive for us, and we are forced into their waiting arms.
Here’s an important truth: Complex investments exist only to profit those who create and sell them. Not only are they more costly to the investor, they are less effective.
The simple approach I created for her and present now to you, is not only easy to understand and implement, it is more powerful than any other.
Together we’ll explore:
Debt: Why you must avoid it and what to do if you have it.
The importance of having F-you Money.
How to think about money, and the unique way understanding this is key to building your wealth.
Where traditional investing advice goes wrong and what actually works.
What the stock market really is and how it really works.
Why the stock market always goes up and why most people still lose money investing in it.
How to invest in a raging bull, or bear, market.
Specific investments to implement these strategies.
The Wealth Building and Wealth Preservation phases of your investing life and why they are not always tied to your age.
How your asset allocation is tied to those phases and how to choose it.
How to simplify the sometimes confusing world of 401(k), 403(b), TSP, IRA and Roth accounts.
TRFs (Target Retirement Funds), HSAs (Health Savings Accounts) and RMDs (Required Minimum Distributions).
What investment firm to use and why the one I recommend is so far superior to the competition.
Why you should be very cautious when engaging an investment advisor and whether you need to at all.
Why and how you can be conned, and how to avoid becoming prey.
Why I don’t recommend dollar cost averaging.
What financial independence looks like and how to have your money support you.
What the 4% rule is and how to use it to safely spend your wealth.
The truth behind Social Security.
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First published June 16, 2016
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Displaying 1 - 30 of 2,361 reviews
February 6, 2017
The Simple Path to Wealth contains a first section I will convene in denominating behavioral and another part with technical investment information.
BEHAVIORAL
- Avoid debt at all costs.
- Avoid fiscally irresponsible people and do not marry them.
- Spend the next decade working your ass off.
- Take low living expenses.
- Do not certainly spend more than you earn (do not get trapped by an expansive lifestyle).
- Save and invest over 50% of your income.
- Avoid financial advisors.
TECHNICAL
- Avoid multiple stock investment.
- 120 - your age = percentage to invest in stocks. The rest in bonds.
- Invest in a fund replicating the US market.
- Invest in American bonds.
- Never withdraw more than 4% of your investments.
- Reinvest dividends.
CRITICISM
- The author only proposes investments with Vanguard. He claims to not be paid by them, which I believe. But lacks other alternatives.
- VERY US focused.
Overall, the author proposes a fork of the Buy&Hold strategy with less diversification, some behavioral treats as well as particular details for his investment strategy. A recommended book.
BEHAVIORAL
- Avoid debt at all costs.
- Avoid fiscally irresponsible people and do not marry them.
- Spend the next decade working your ass off.
- Take low living expenses.
- Do not certainly spend more than you earn (do not get trapped by an expansive lifestyle).
- Save and invest over 50% of your income.
- Avoid financial advisors.
TECHNICAL
- Avoid multiple stock investment.
- 120 - your age = percentage to invest in stocks. The rest in bonds.
- Invest in a fund replicating the US market.
- Invest in American bonds.
- Never withdraw more than 4% of your investments.
- Reinvest dividends.
CRITICISM
- The author only proposes investments with Vanguard. He claims to not be paid by them, which I believe. But lacks other alternatives.
- VERY US focused.
Overall, the author proposes a fork of the Buy&Hold strategy with less diversification, some behavioral treats as well as particular details for his investment strategy. A recommended book.
May 31, 2018
Solid book on investment and portfolio building. I really wish I had read this book a few years earlier and highly recommended to everyone.
Things to avoid
1. Avoid debt.
2. Avoid fiscally irresponsible people. Never marry one or otherwise give him or her access to your money.
3. Eliminate all non-essential spending
4. Avoid investment advisors.
5. Never buy stocks on margin.
6. Safety is a bit of an illusion. Don't fall for it.
7. Spending too much time worrying about how things might work out. It’s a huge waste. Don’t do it.
On Saving and thrifty lifestyle
1. Save and invest unwavering 50% of your income.
2. The beauty of a high savings rate is twofold: You learn to live on less even as you have more to invest.
3. When you can live on 4% of your investments per year, you are financially independent.
4. If your lifestyle matches or exceeds your income, you are a slave.
5. Better to adapt yourself and your attitudes to the numbers than to adapt the strategies to your psychological comfort levels.
6. If financial independence is your goal, your savings rate in these years should be high. As you invest that money each month it serves to smooth out the market’s wild ride.
7. Be persistent. Life is uncertain.
On Stock market and Investing
1. Investment rules: Rule #1: Never lose money. Rule #2: Never forget rule #1
2.The stock market is a powerful wealth-building tool and you should be investing in it.
3. Embrace indexing.
4. Crashes, pullbacks and corrections are all absolutely normal.
5. Any investing done short term is by definition speculation.
6. Market timing is an un-winnable game over time.The point is that to play this market timing game well even once, you need to be right twice: First you need to call the high. Then you need to call the low.
7. The market always recovers. Always.
8. Everybody makes money when the market is rising. But what determines whether it will make you wealthy or leave you bleeding on the side of the road is what you do during the times it is collapsing.
9. Most people lose money in the stock market. Here’s why: 1. We think we can time the market. 2. We believe we can pick individual stocks. 3. We believe we can pick winning mutual fund managers.
10. By dollar cost averaging you are betting that the market will drop, saving yourself some pain. For any given year the odds of this happening are only ~23%. But the market is about 77% more likely to rise, in which case you will have spared yourself some gain. With each new invested portion you’ll be paying more for your shares.
11. Put all your eggs in one basket and forget about it.
On F-You Money
1. Money is a small part of life. But F-You Money buys you the freedom, resources and time to explore it on your own terms. Retired or not. Enjoy your journey.
2. Once you have your F-You Money, all you need do is make sure you continue to reinvest to outpace inflation and keep your spending below the level your stash can replenish.
3. You’re young, aggressive and here to build wealth. You’re out to build your pot of F-You Money ASAP. You’re going to focus on the best performing asset class in history: Stocks. You’re going to “get your mind right,� toughen up and learn to ride out the storms.
Highly recommended read!!
Things to avoid
1. Avoid debt.
2. Avoid fiscally irresponsible people. Never marry one or otherwise give him or her access to your money.
3. Eliminate all non-essential spending
4. Avoid investment advisors.
5. Never buy stocks on margin.
6. Safety is a bit of an illusion. Don't fall for it.
7. Spending too much time worrying about how things might work out. It’s a huge waste. Don’t do it.
On Saving and thrifty lifestyle
1. Save and invest unwavering 50% of your income.
2. The beauty of a high savings rate is twofold: You learn to live on less even as you have more to invest.
3. When you can live on 4% of your investments per year, you are financially independent.
4. If your lifestyle matches or exceeds your income, you are a slave.
5. Better to adapt yourself and your attitudes to the numbers than to adapt the strategies to your psychological comfort levels.
6. If financial independence is your goal, your savings rate in these years should be high. As you invest that money each month it serves to smooth out the market’s wild ride.
7. Be persistent. Life is uncertain.
On Stock market and Investing
1. Investment rules: Rule #1: Never lose money. Rule #2: Never forget rule #1
2.The stock market is a powerful wealth-building tool and you should be investing in it.
3. Embrace indexing.
4. Crashes, pullbacks and corrections are all absolutely normal.
5. Any investing done short term is by definition speculation.
6. Market timing is an un-winnable game over time.The point is that to play this market timing game well even once, you need to be right twice: First you need to call the high. Then you need to call the low.
7. The market always recovers. Always.
8. Everybody makes money when the market is rising. But what determines whether it will make you wealthy or leave you bleeding on the side of the road is what you do during the times it is collapsing.
9. Most people lose money in the stock market. Here’s why: 1. We think we can time the market. 2. We believe we can pick individual stocks. 3. We believe we can pick winning mutual fund managers.
10. By dollar cost averaging you are betting that the market will drop, saving yourself some pain. For any given year the odds of this happening are only ~23%. But the market is about 77% more likely to rise, in which case you will have spared yourself some gain. With each new invested portion you’ll be paying more for your shares.
11. Put all your eggs in one basket and forget about it.
On F-You Money
1. Money is a small part of life. But F-You Money buys you the freedom, resources and time to explore it on your own terms. Retired or not. Enjoy your journey.
2. Once you have your F-You Money, all you need do is make sure you continue to reinvest to outpace inflation and keep your spending below the level your stash can replenish.
3. You’re young, aggressive and here to build wealth. You’re out to build your pot of F-You Money ASAP. You’re going to focus on the best performing asset class in history: Stocks. You’re going to “get your mind right,� toughen up and learn to ride out the storms.
Highly recommended read!!
April 11, 2024
I must say this book it's a refreshing breath of financial wisdom. Collins' straightforward approach to achieving financial independence resonates deeply with someone like me, who has seen the highs and lows of economic cycles. The audiobook edition
, provides an immersive experience that captures the essence of his timeless advice.
What struck me most about Collins' philosophy is its simplicity and effectiveness. He cuts through the noise of complex investment strategies and offers a clear roadmap to financial freedom through index fund investing. It's a strategy that I wish I had discovered earlier in life, but nonetheless, I'm grateful to have stumbled upon it now.
With a 5-star rating and over 23000 ratings, it's evident that Collins' message resonates with many others seeking financial independence. Whether you're just starting your journey or looking to optimize your investments, this book is a timeless guide that offers practical advice and peace of mind.
What struck me most about Collins' philosophy is its simplicity and effectiveness. He cuts through the noise of complex investment strategies and offers a clear roadmap to financial freedom through index fund investing. It's a strategy that I wish I had discovered earlier in life, but nonetheless, I'm grateful to have stumbled upon it now.
With a 5-star rating and over 23000 ratings, it's evident that Collins' message resonates with many others seeking financial independence. Whether you're just starting your journey or looking to optimize your investments, this book is a timeless guide that offers practical advice and peace of mind.
September 29, 2017
The kind of person who reads this book is the kind of person who already knows about the concept of financial independence, index funds and the "4% rule." The kind of person who reads this book is asking themselves if they will be able to retire a millionaire in their 30s or if they will have to wait until their 40s.
If you ARE that kind of person, this book is worth reading. It is an easy read. It is easy to reference. It is immediately applicable. And it will probably tie together a lot of your finance/investing knowledge into one pretty package.
If you ARE NOT that kind of person, this book is a must-read! Investing is simpler and safer than you think. "F-You Money" is more important than you imagine. And there are many wolves that are trying to eat up all of your wealth. Let Jl Collins save you from the wolves and give you an optimistic picture of your financial future.
If you ARE that kind of person, this book is worth reading. It is an easy read. It is easy to reference. It is immediately applicable. And it will probably tie together a lot of your finance/investing knowledge into one pretty package.
If you ARE NOT that kind of person, this book is a must-read! Investing is simpler and safer than you think. "F-You Money" is more important than you imagine. And there are many wolves that are trying to eat up all of your wealth. Let Jl Collins save you from the wolves and give you an optimistic picture of your financial future.
September 8, 2022
We can learn a few important principles to follow when you want to achieve financial freedom.
Most of the investment examples in this book are practical in the United States.
Overall, I learn a lot from this book. Thanks.
Most of the investment examples in this book are practical in the United States.
Overall, I learn a lot from this book. Thanks.
April 14, 2019
Kind of useless book if you're not freshly out of college. I'll save you some money and spoil this. Save half your money, avoid all debt, and invest in vanguard index funds.what irritated me about this book is there is no plan if you're older if you've never been able to save money because you couldn't afford it and you started investing late in life and don't have a lot of time to save for retirement. What do you do? Those answers aren't in this book but the core philosophies are sound. Avoid debt save your money invest in index funds which are low-cost and easy to manage.
January 15, 2021
Pretty much useless if you don't live in the US. Half of the book is about 401k's, roth accounts, tax optimization, HSA's... If you're not an American it's a whole lot of useless information. The other half of the book is about VTSAX but you can't even buy that fund in Europe and even if you could it's not even recommended anyway (stuff like "no currency risk" isn't relevant if you live in a country with euros). He also has a huge boner for Vanguard. A lot of the book is repetition. There are some inspiring parts but in general, if you're a European, this book is not useful.
May 28, 2018
Now that I’m done reading The Simple Path to Wealth by JL Collins, I feel confident in recommending it to any and everyone. If something were to happen to me and I needed to leave one financial tool to my kids, it would be this book. This book helped to reaffirm and clarify my personal financial values.
If you’re looking for a way to make a quick buck, this isn’t the book for you. But if you are interested in a book that explicitly lays out sound principles and advice and encourages financial discipline and fortitude to attain financial independence, then look no further. It consolidates the basics of stock market investing clearly and concisely.
This was a great read.
If you’re looking for a way to make a quick buck, this isn’t the book for you. But if you are interested in a book that explicitly lays out sound principles and advice and encourages financial discipline and fortitude to attain financial independence, then look no further. It consolidates the basics of stock market investing clearly and concisely.
This was a great read.
Read
December 11, 2020Here's what I learned in each chapter:
Ch 10 - Keeping it simple: considerations and tools
* You only need these two tools: VTSAX, VBTLX
Ch 12 - Bonds
* When you buy bonds, you're loaning money to a company or government agency.
* Municipal bonds are issued by governments and government agencies at the state and local levels to fund public work projects like schools, airports, sewer systems, etc.
* Municipal bonds are exempt from federal-income taxes and usually from state income taxes for the state they're issued.
Ch 13 - Portfolio ideas to build and keep your wealth
* There are studies that show holding a 10-25% position in bonds with 75-90% stocks will actually outperform a position holding 100% stocks with less volatility but requires some rebalancing from time to time.
Ch 14 - Selecting your asset allocation
* Adding much beyond 25% bonds begins to hurt results.
* You might also want to rebalance any time the market makes a major move (20%+) up or down, so you can buy shares in the asset that lagged.
* It's best to hold bonds in tax-advantaged accounts, but it does complicate rebalancing.
* The results show the rebalanced portfolios outperformed but by a very small margin that may be attributed to noise.
Ch 15 - International funds
* Here are two ex-US options: VFWAX, VTIAX
* There's also a world stock index fund, VTWSX, which allocates 50% to US stocks but has higher costs than the prior 2
Ch 19 - The 401(k), 403(b), TSP, IRA and Roth buckets
* VTSAX is tax-efficient, keep in taxable.
* Put VBTLX in tax-exempt and any municipal bonds in taxable.
Ch 10 - Keeping it simple: considerations and tools
* You only need these two tools: VTSAX, VBTLX
Ch 12 - Bonds
* When you buy bonds, you're loaning money to a company or government agency.
* Municipal bonds are issued by governments and government agencies at the state and local levels to fund public work projects like schools, airports, sewer systems, etc.
* Municipal bonds are exempt from federal-income taxes and usually from state income taxes for the state they're issued.
Ch 13 - Portfolio ideas to build and keep your wealth
* There are studies that show holding a 10-25% position in bonds with 75-90% stocks will actually outperform a position holding 100% stocks with less volatility but requires some rebalancing from time to time.
Ch 14 - Selecting your asset allocation
* Adding much beyond 25% bonds begins to hurt results.
* You might also want to rebalance any time the market makes a major move (20%+) up or down, so you can buy shares in the asset that lagged.
* It's best to hold bonds in tax-advantaged accounts, but it does complicate rebalancing.
* The results show the rebalanced portfolios outperformed but by a very small margin that may be attributed to noise.
Ch 15 - International funds
* Here are two ex-US options: VFWAX, VTIAX
* There's also a world stock index fund, VTWSX, which allocates 50% to US stocks but has higher costs than the prior 2
Ch 19 - The 401(k), 403(b), TSP, IRA and Roth buckets
* VTSAX is tax-efficient, keep in taxable.
* Put VBTLX in tax-exempt and any municipal bonds in taxable.
May 10, 2020
I used to have to listen to Remy and Tim and Mitch and Jeremy bang on about investing while I was trying to actually create something beautiful while painting at the dining table instead of the absolutely pointless, complex, exclusive, cold, unsexy, fairytale money. Now I have read a book about it.
This book made a small part of me excited how compound interest grows over a long time. The subject made a bigger part of me depressed that money fucks a lot of people over and this books really exposed how trapped we all are in debt and ever expanding lifestyles. I think I want to be like the monk in the parable at the start.
Unfortunately money stuff is something we all have to do so I would recommend this book I think. 3 stars is high praise for such a flaccid topic when compared to a 1000 page epic fantasy novel covering multiple characters perspectives in a time of upheaval in Roshar by the Lord Brandon Sanderson
This book made a small part of me excited how compound interest grows over a long time. The subject made a bigger part of me depressed that money fucks a lot of people over and this books really exposed how trapped we all are in debt and ever expanding lifestyles. I think I want to be like the monk in the parable at the start.
Unfortunately money stuff is something we all have to do so I would recommend this book I think. 3 stars is high praise for such a flaccid topic when compared to a 1000 page epic fantasy novel covering multiple characters perspectives in a time of upheaval in Roshar by the Lord Brandon Sanderson
September 25, 2020
A book that doesn't tell you the "secret way" of getting rich fast. Nor does it tell you the way of picking the best stocks that will fly to the moon. It certainly doesn't tell you anything new than what you already know, but, perhaps, don't believe.
I think that's what I needed the most � real, myth-destroying conversation about long-term way of accumulating wealth. I deeply respect the author for that.
His principles are simple, just as the title suggests. Avoid debt, spend less than you earn and invest the surplus. He provides great arguments for why one should do that and how. Truly great book for those who aspire to be financially literate. Unfortunately it is very US based, so I cannot give it the highest rating.
I think that's what I needed the most � real, myth-destroying conversation about long-term way of accumulating wealth. I deeply respect the author for that.
His principles are simple, just as the title suggests. Avoid debt, spend less than you earn and invest the surplus. He provides great arguments for why one should do that and how. Truly great book for those who aspire to be financially literate. Unfortunately it is very US based, so I cannot give it the highest rating.
January 6, 2017
This book is squarely about the slow-and-steady side of financial independence. It's not really about gaming the system or getting out of debt or complicated investment strategies and such.
I love J.L. Collins' site (). I like his book too. It's pretty much the same kind of content, only more edited - less snarky, a bit less controversial. I'm surprised "Why your house is a terrible investment" wasn't discussed, actually. I did appreciate his perspectives on the wealth-conservation stage though. I've seen a lot of information on the wealth-building side of things, but it's nice to see what's still coming up (RMDs, an actual withdrawal plan).
I don't really follow everything he advises (I have some bonds and international exposure), but his is definitely a viable path, in my opinion.
I love J.L. Collins' site (). I like his book too. It's pretty much the same kind of content, only more edited - less snarky, a bit less controversial. I'm surprised "Why your house is a terrible investment" wasn't discussed, actually. I did appreciate his perspectives on the wealth-conservation stage though. I've seen a lot of information on the wealth-building side of things, but it's nice to see what's still coming up (RMDs, an actual withdrawal plan).
I don't really follow everything he advises (I have some bonds and international exposure), but his is definitely a viable path, in my opinion.
August 18, 2022
Down to earth advice.
November 10, 2020
Now a couple years into my 30s (and thoroughly freaked out at where the time has gone), I've finally gotten to a point where I'm willing to budget (a word that made me cringe before) and plan for a future that doesn't have me doing what I've spent the last 10 years trudging through. I'm dreading the passing of another decade where I'm still doing the same thing with no end in sight.
Enter The Simple Path to Wealth.
While I have no idea if I can stick to saving 50% of my income, or have confidence that the US won't one day implode taking all my future investments with it, I do feel better about managing my finances than I did a week ago. Can't go wrong if you're at least doing something to build toward financial independence, right? May not happen according to the planned timeline, but I feel like it will happen.
I definitely recommend this for anyone looking for more info on investing or trying to reach financial independence (that magical point where we don't have to work to pay the bills). You'll still need to look for some outside info to fill in the blanks when it comes to your own financial situation. For me, it's the mountain of school debt and trying to figure out how much to allocate where; saving/investing, plus paying down debt simultaneously. But this book has definitely answered a ton of questions. It has managed to be very simple, though when things get a bit more technical, there are areas I need to reread to get the picture. But overall, for a finance book, I think the term "simple" is accurate.
Enter The Simple Path to Wealth.
While I have no idea if I can stick to saving 50% of my income, or have confidence that the US won't one day implode taking all my future investments with it, I do feel better about managing my finances than I did a week ago. Can't go wrong if you're at least doing something to build toward financial independence, right? May not happen according to the planned timeline, but I feel like it will happen.
I definitely recommend this for anyone looking for more info on investing or trying to reach financial independence (that magical point where we don't have to work to pay the bills). You'll still need to look for some outside info to fill in the blanks when it comes to your own financial situation. For me, it's the mountain of school debt and trying to figure out how much to allocate where; saving/investing, plus paying down debt simultaneously. But this book has definitely answered a ton of questions. It has managed to be very simple, though when things get a bit more technical, there are areas I need to reread to get the picture. But overall, for a finance book, I think the term "simple" is accurate.
January 26, 2018
This is the most straight forward investment book I've found. It should be required reading for all college students.
April 7, 2024
Found it not as useful, cause the information either doesn't apply to me or I currently don't need it. Still, a really good, short book that can especially motivate you to research more of the specific things you'll need.
February 27, 2023
Maybe it’s odd to say about a finance book, but I enjoyed reading this more than almost any other book I’ve read. Not only was it incredibly informative, but his writing style is so casual and fun. I know it’s an overused expression, but he really cuts the Bravo Sierra and makes it super simple. I can’t convey how simple it is.
The investing world can be super daunting for somebody like me who’s starting out, and I’ve never seen a simpler or more intuitive plan laid out. And unlike most other people, he really did lay out the entire plan, and it is way to follow for anybody without much knowledge of investing.
On top of this, there was lots of humor, fun stories, and even a short chapter of satire poking fun at financial gurus on TV who think they can predict the future of the market.
I’m working on implementing what I learned in the book, and if I again meet the man who recommended it to me, I think I’ll have to take him out to dinner.
The investing world can be super daunting for somebody like me who’s starting out, and I’ve never seen a simpler or more intuitive plan laid out. And unlike most other people, he really did lay out the entire plan, and it is way to follow for anybody without much knowledge of investing.
On top of this, there was lots of humor, fun stories, and even a short chapter of satire poking fun at financial gurus on TV who think they can predict the future of the market.
I’m working on implementing what I learned in the book, and if I again meet the man who recommended it to me, I think I’ll have to take him out to dinner.
October 31, 2022
I absolutely loved this book. It was straight to the point and offered clear advice. It’s perfect for anyone trying to break through the seemingly complex topic of investing.
July 27, 2024
Listening to this audiobook was an interesting experience.
First, a bit of background. I'm in my mid-fifties. Without having read this book, my wife and I had already spent our lives (to date) following its advice. We minimized debt. We lived below our means. We invested in incredibly boring date-targeted index funds. Now here I was, reaping the rewards of all those years spent playing by the rules. We were comfortable.
So I called up an old college classmate who's now a financial advisor. "Now what?" I asked. He told me to read 'The Simple Path to Wealth.'
And I spent the first nineteen chapters wondering why. Don't get me wrong: I'm totally going to foist this book on my young adult sons. It's about as good a primer on personal finance as you're likely to find. But I'd already done all this stuff. I was more interested in wealth preservation than wealth building.
Then I hit Chapter 20, when writer J.L. Collins rolls into the "wealth preservation" part of the book. Wham! This was the good stuff! It explained, clearly and concisely, how mandatory disbursements from 401(k)s work - and the tax consequences thereof. It convinced me to start using my HSA as more of an investment fund than a health expenses fund. It even taught me the benefits of routing all my giving through a charitable trust once my house is paid off.
Thus, I can happily report that 'The Simple Path to Wealth' is useful regardless of the stage of your financial life. It's clear, it's persuasive, and its no-bull approach has worked for me so far.
My classmate is a pretty smart guy!
First, a bit of background. I'm in my mid-fifties. Without having read this book, my wife and I had already spent our lives (to date) following its advice. We minimized debt. We lived below our means. We invested in incredibly boring date-targeted index funds. Now here I was, reaping the rewards of all those years spent playing by the rules. We were comfortable.
So I called up an old college classmate who's now a financial advisor. "Now what?" I asked. He told me to read 'The Simple Path to Wealth.'
And I spent the first nineteen chapters wondering why. Don't get me wrong: I'm totally going to foist this book on my young adult sons. It's about as good a primer on personal finance as you're likely to find. But I'd already done all this stuff. I was more interested in wealth preservation than wealth building.
Then I hit Chapter 20, when writer J.L. Collins rolls into the "wealth preservation" part of the book. Wham! This was the good stuff! It explained, clearly and concisely, how mandatory disbursements from 401(k)s work - and the tax consequences thereof. It convinced me to start using my HSA as more of an investment fund than a health expenses fund. It even taught me the benefits of routing all my giving through a charitable trust once my house is paid off.
Thus, I can happily report that 'The Simple Path to Wealth' is useful regardless of the stage of your financial life. It's clear, it's persuasive, and its no-bull approach has worked for me so far.
My classmate is a pretty smart guy!
November 6, 2024
What I LOVED about this book is it not only explains personal finance simply (particularly investing), but it’s very ACTIONABLE.
This book was recommended by a friend of mine that I very much respect when it comes to his thoughts on finance (I also respect him overall as a person, he’s great.) When I ordered the book, I was curious how much I would learn, because I had considered myself pretty financially literate. Boy, was I pleasantly surprised. I learned a ton from this book! So much so that I truly believe this just changed my horizon as an investor and will get me to my retirement goals way more efficiently/faster with WAY less stress.
This book shows, through very credible sources and robust research studies, that a simple, broad based investment strategy (we’re talking about investing in a SINGLE total market index fund) will beat out a managed mutual fund (think investment firm) 82% of the time within a 10 year period (and it gets higher the longer you’re invested - 99% of the time if you take the years the study examines: 1975-2013). Isn’t that amazing, and simple!
That’s just a single highlight of this book. If that paragraph had intrigued you, I would highly recommend this book.
I will 100% be recommending this book to family and friends if they ever mention that they would like to better learn finance (particularly investing). I think overall, investing sounds scary to someone who knows little about it. But this book proves that it’s actually very simple and the best tool towards financial independence.
This book was recommended by a friend of mine that I very much respect when it comes to his thoughts on finance (I also respect him overall as a person, he’s great.) When I ordered the book, I was curious how much I would learn, because I had considered myself pretty financially literate. Boy, was I pleasantly surprised. I learned a ton from this book! So much so that I truly believe this just changed my horizon as an investor and will get me to my retirement goals way more efficiently/faster with WAY less stress.
This book shows, through very credible sources and robust research studies, that a simple, broad based investment strategy (we’re talking about investing in a SINGLE total market index fund) will beat out a managed mutual fund (think investment firm) 82% of the time within a 10 year period (and it gets higher the longer you’re invested - 99% of the time if you take the years the study examines: 1975-2013). Isn’t that amazing, and simple!
That’s just a single highlight of this book. If that paragraph had intrigued you, I would highly recommend this book.
I will 100% be recommending this book to family and friends if they ever mention that they would like to better learn finance (particularly investing). I think overall, investing sounds scary to someone who knows little about it. But this book proves that it’s actually very simple and the best tool towards financial independence.
February 19, 2020
Балчир 20 настан бхдаа уншиж амжсан маань том олз болох шиг боллоо.
Товчхондоо:
-Өр битгий тавь, өртэй бол аль болох хурдан сал
-Орлогоосоо давсан зарлагатай байж яав ч болохгүй
-Тогтмол хуримтлуул (хөрөнгө оруулалт хий)
Орон сууц худалдан авах тухайгаа нэлээн ул суурьтай бодож үзэх ёстой бололтой. Заавал юу юугүй 8%-н зээл аваад... гэж хандаж болохгүй ажээ. Амьдарч буй орон, зах зээлийнхээ нөхцөл байдлыг судлах ёстой юм байна.
Энэ ном маань мөрөөрөө ажлаа хийнгээ орлогоосоо илүүчилж хөрөнгө оруулалт хийх замаар хэрхэн санхүүгийн эрх чөлөөнд хүрэх тухай болно. Идэвхитэй хөрөнгийн менежмент хийх тухай биш гэдгийг анхаараарай. Форекс нтр бол бүр биш шүү :D
Товчхондоо:
-Өр битгий тавь, өртэй бол аль болох хурдан сал
-Орлогоосоо давсан зарлагатай байж яав ч болохгүй
-Тогтмол хуримтлуул (хөрөнгө оруулалт хий)
Орон сууц худалдан авах тухайгаа нэлээн ул суурьтай бодож үзэх ёстой бололтой. Заавал юу юугүй 8%-н зээл аваад... гэж хандаж болохгүй ажээ. Амьдарч буй орон, зах зээлийнхээ нөхцөл байдлыг судлах ёстой юм байна.
Энэ ном маань мөрөөрөө ажлаа хийнгээ орлогоосоо илүүчилж хөрөнгө оруулалт хийх замаар хэрхэн санхүүгийн эрх чөлөөнд хүрэх тухай болно. Идэвхитэй хөрөнгийн менежмент хийх тухай биш гэдгийг анхаараарай. Форекс нтр бол бүр биш шүү :D
December 10, 2020
Best investing book ever. He actually wrote for the people who need it broken down to be much more understandable and actionable. Loved it!
December 3, 2024
I thought this was a really well-written, easy-to-understand personal finance book. Learned a lot about investing that previously had me going cross-eyed. I just wish I read this about ten years earlier 😆
August 14, 2021
“Stop thinking about what your money can buy. Start thinking about what your money can earn.� � “There are many things money can buy, but the most valuable of all is freedom. Freedom to do what you want and to work for whom you respect. Those who live paycheck to paycheck are slaves. Those who carry debt are slaves with even stouter shackles.�
This is probably the best personal finance book I will ever read. J.L. Collins investment strategy is based on the fundamental premise that happiness is not achieved by purchasing luxuries, but by obtaining the psychological benefits that the freedom from needing to work provides. By investing a significant portion (50-75%) of one’s after-tax income into low-cost index funds, every adult living and working in a first-world country is capable of achieving financial independence after just five to twenty years in the workforce (see ). With the help of compound interest, capitalism, and the advice of blogs and books about how to achieve a high savings rate, frugality in our twenties and thirties opens up an unprecedented degree of autonomy from our employers in our forties and beyond.
The simplicity of the author’s path to wealth comes from an investment strategy that can be boiled down to one sentence: Once any high-interest debts are paid off, invest at least 50% of your income into the , and transfer some of your assets into when you approach financial independence. That’s all that’s required, once you adopt the mindset that
The only reason this book doesn’t get five stars from me is because so much of the second half is irrelevant to my current situation as someone who is just entering the workforce. The book’s advice on the different tax-advantaged retirement buckets, and the order to withdraw assets from said buckets in retirement, will no doubt be obsolete by the time that I have accumulated the wealth to act on the information. Many of the author’s reasons to avoid investing in international stock markets have been responded to by Vanguard’s launch of and some calculations in the back half of the book are out-of-date following the Trump tax cuts. Fortunately, the author periodically posts articles about how he has updated and slightly revised his own portfolio. I anticipate that J.L. Collins will publish a revised and updated 2nd edition when enough time has passed. - May 2019
This is probably the best personal finance book I will ever read. J.L. Collins investment strategy is based on the fundamental premise that happiness is not achieved by purchasing luxuries, but by obtaining the psychological benefits that the freedom from needing to work provides. By investing a significant portion (50-75%) of one’s after-tax income into low-cost index funds, every adult living and working in a first-world country is capable of achieving financial independence after just five to twenty years in the workforce (see ). With the help of compound interest, capitalism, and the advice of blogs and books about how to achieve a high savings rate, frugality in our twenties and thirties opens up an unprecedented degree of autonomy from our employers in our forties and beyond.
The simplicity of the author’s path to wealth comes from an investment strategy that can be boiled down to one sentence: Once any high-interest debts are paid off, invest at least 50% of your income into the , and transfer some of your assets into when you approach financial independence. That’s all that’s required, once you adopt the mindset that
The only reason this book doesn’t get five stars from me is because so much of the second half is irrelevant to my current situation as someone who is just entering the workforce. The book’s advice on the different tax-advantaged retirement buckets, and the order to withdraw assets from said buckets in retirement, will no doubt be obsolete by the time that I have accumulated the wealth to act on the information. Many of the author’s reasons to avoid investing in international stock markets have been responded to by Vanguard’s launch of and some calculations in the back half of the book are out-of-date following the Trump tax cuts. Fortunately, the author periodically posts articles about how he has updated and slightly revised his own portfolio. I anticipate that J.L. Collins will publish a revised and updated 2nd edition when enough time has passed. - May 2019
March 21, 2024
I’m so serious I will be so wealthy.
August 20, 2017
Been doing passive investing for years, although with my primary resource being the Internet, my knowledge has been a bit sparse. I still have many questions, and wanted to find a comprehensive piece that'd inevitable answer some of them, such as: Why is it OK to have 50-100% of your portfolio in the US market? Why is the standard withdrawal rate adjusting for inflation 4%, and not 5%? When should you invest lump-sum, or do dollar-cost averaging? Among others. Something I wish this book had gone more into are the economics of passive investing and buying and renting property (e.g. a mortgage has a lower annual interest than the market, how do you optimize this, etc). The book has chapters almost exclusively focused on the US and how to optimize taxes there, those can promptly be skipped without losing much. I got answers to some of my questions, but this is a fairly basic book—will serve anyone who's just getting into passive investing, or lack a complete mental model. It'd get another star if it talked more about the composition of indexes, real estate and was less shallow on International markets.
July 2, 2016
We are paying our house off this month and, after doing so, will be completely debt free. This gives us quite a bit of financial freedom but also gives us pause: what do we do with our income now? Where do we put it so it will work for us and not the other way around?
Acquiring wealth appears to be one of the simplest things to do, but not necessarily the easiest.
This book lays it all out, in simple terms and manageable bite sized chunks. Investing doesn't have to be scary; Jim does a great job of explaining it all using easy to understand terms, familiar analogies and a few humorous anecdotes.
All of that said, though: it's still a book about money. It will only be exciting to you if you're at a point where you can afford to invest half your income, or if you're just really, really into this kind of thing.
Acquiring wealth appears to be one of the simplest things to do, but not necessarily the easiest.
This book lays it all out, in simple terms and manageable bite sized chunks. Investing doesn't have to be scary; Jim does a great job of explaining it all using easy to understand terms, familiar analogies and a few humorous anecdotes.
All of that said, though: it's still a book about money. It will only be exciting to you if you're at a point where you can afford to invest half your income, or if you're just really, really into this kind of thing.
June 10, 2020
Over dinner a few months ago, I asked a colleague what should you invest in? He recommended I read this book and goodness I wish I had sooner. JL Collins really lays this down in the most simple, easy to digest way possible. Making your money work for you shouldn’t be complicated and the rationale behind his reasoning is pretty solid. So simple it is concerning how much financial managers profit off our ignorance.
I only wish it had more of a European/International perspective, I gave this book 4 stars as a result - it felt like 25% of the content was exceptionally US centric (IRAs, 401Ks etc). However the underlying principles are the same. Avoid debt, spend less than you earn and invest the surplus in index funds.
I only wish it had more of a European/International perspective, I gave this book 4 stars as a result - it felt like 25% of the content was exceptionally US centric (IRAs, 401Ks etc). However the underlying principles are the same. Avoid debt, spend less than you earn and invest the surplus in index funds.
April 30, 2021
This is the finance bible which can save anyone with a mid-level IQ and an ability to delay gratification much angst and worry about their financial future. Collins's formula is so simple that, really, the only two obstacles to implementing it is 1. being dumb and getting saddled with 200k+ debt with no good job prospects or 2. the inability to implement to formula. It's a great read and should be in the hands of all of our youth who should at least be given the opportunity to cultivate the virtue of independence instead of being a debt slave their entire life.
December 1, 2018
This book covers the basics of what you need to know about steady investing, though it's very America-centric and could do with a more elegant writing style and structure. I preferred his series of blogposts on the same topic.
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