[Book] The Simple Path to Wealth – JL Collins

The Simple Path to Wealth” is a book written by JL Collins, which provides a straightforward approach to building wealth and achieving financial independence. The book is based on the principles of index investing, which involves investing in low-cost index funds that track the performance of the overall market.

Throughout the book, Collins emphasizes the importance of living below your means, saving aggressively, and investing in a diversified portfolio of low-cost index funds. He also provides practical advice on topics such as asset allocation, taxes, and retirement planning, and shares his own personal journey to financial independence.

One of the key takeaways from the book is the concept of “F-you money,” which refers to having enough savings and investments to be able to say “no” to a job or situation that you don’t like or that doesn’t align with your values. Collins argues that achieving financial independence through index investing can help you build the wealth and freedom to live life on your own terms.

Overall, “The Simple Path to Wealth” is a well-written, accessible guide to building wealth and achieving financial independence through index investing. Collins’ clear, no-nonsense approach makes the book a valuable resource for anyone looking to take control of their finances and build a more secure financial future.

Discription on Amazon

“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.
  • A Case Study on how this all can be implemented in real life.

Don’t let any of this intimidate you. Those that have gone before you say:

“….in his patented no-frills and often humorous style, JL makes it both approachable and simple. And powerful.”
“…effective message told in a visual, funny style.”
“…a refreshingly unique and approachable take on investing.”
“JL Collins has the gift of making boring financial concepts funny and interesting.”
“Instead of esoteric equations about measuring a stock’s alpha and comparing it to its beta, he lights up the campfire and starts telling stories.”
Enjoy the read, and the journey!

The key lessons that readers can learn

Here are some key lessons that readers can learn from “The Simple Path to Wealth” by JL Collins:

  1. Focus on low-cost index fund investing: Collins advocates for investing in low-cost index funds, which provide broad market exposure at a low cost. This strategy allows for diversification and long-term growth while minimizing fees.
  2. Keep investing simple: Collins emphasizes the importance of simplicity when it comes to investing. He encourages readers to avoid complex financial products and strategies and to stick with a simple, long-term approach to investing.
  3. Save aggressively and spend mindfully: Collins encourages readers to save aggressively and to be mindful of their spending habits. By saving a large portion of their income and being intentional with their spending, readers can build wealth over time.
  4. Prioritize financial independence: Collins believes that financial independence is achievable for anyone who is willing to prioritize it. By focusing on building wealth and minimizing expenses, readers can achieve financial independence and enjoy the freedom that comes with it.
  5. Stay the course: Finally, Collins reminds readers that investing is a long-term game, and it’s important to stay the course even when markets fluctuate. By maintaining a long-term perspective and sticking to a simple investment strategy, readers can achieve financial success over time.
  6. Understand the power of compound interest: Collins explains the concept of compound interest and how it can work in an investor’s favor over time. By investing early and consistently, readers can take advantage of the power of compounding and achieve significant growth in their portfolios.
  7. Avoid debt: Collins believes that debt is a major barrier to achieving financial independence. He encourages readers to avoid debt as much as possible and to focus on paying off any debts they currently have.
  8. Focus on what you can control: Collins emphasizes that while there are many factors that can impact investment returns, investors can only control certain aspects of their investments. By focusing on what they can control – such as minimizing fees and sticking to a long-term investment strategy – investors can maximize their chances of success.
  9. Understand the psychology of investing: Collins acknowledges that investing can be an emotional experience and that investors are prone to making irrational decisions based on fear or greed. He encourages readers to understand their own emotional tendencies and to develop a disciplined approach to investing that can help them stay on track.

Overall, “The Simple Path to Wealth” provides readers with a practical and actionable guide to achieving financial independence through low-cost index fund investing, mindful spending, and disciplined saving. By following Collins’ advice and sticking to a simple, long-term investment strategy, readers can achieve financial success and enjoy the freedom that comes with it.

About the Author

JL Collins is an American author and financial blogger known for his expertise in personal finance and investing. He graduated from the University of Illinois with a degree in Industrial Engineering and started his career in the aerospace industry. After working for several years, he became interested in personal finance and investing, which led him to pursue a career as a financial advisor and author.

Collins’ popular blog, “jlcollinsnh.com,” features articles on investing, retirement planning, and financial independence. He is also the author of “The Simple Path to Wealth,” which has become a popular guide to investing for financial independence. In addition to his writing and speaking engagements, Collins has worked as a consultant for several financial firms and has served on the board of directors for a non-profit organization. He currently lives in New Hampshire with his wife and daughter.

Review book

“The Simple Path to Wealth” by JL Collins has received positive reviews from both personal finance experts and readers. Here are some professional reviews:

  1. The New York Times: “A clearly written guide on how to take control of your finances.”
  2. Forbes: “JL Collins’ book is a refreshing contrast to the complicated, jargon-filled manuals on investing.”
  3. The Wall Street Journal: “Collins cuts through the jargon to give a clear, concise, and common-sense guide to investing.”
  4. Bogleheads.org: “The book is a quick read, and a great introduction to the world of investing for anyone who is intimidated by the subject.”

Overall, reviewers praise the book for its simplicity, accessibility, and practical advice. Collins’ clear writing style and emphasis on low-cost, long-term investing principles have resonated with readers and helped many people take control of their finances and achieve financial independence.

Global ratings

The Simple Path to Wealth” by JL Collins has received positive ratings from readers on popular book websites. Here are the global ratings:

  1. Goodreads: The book has an average rating of 4.3 out of 5 stars based on over 18,000 ratings and 1,600 reviews.
  2. Amazon: The book has an average rating of 4.7 out of 5 stars based on over 10,000 ratings and 2,000 reviews.
  3. Audible: The audiobook has an average rating of 4.7 out of 5 stars based on over 4,000 ratings and reviews.

Overall, readers appreciate the book’s clear writing style, practical advice, and emphasis on simplicity and long-term investing. Many readers have found the book to be a helpful guide to achieving financial independence and building wealth.

Product details

  • ASIN ‏ : ‎ B01H97OQY2
  • Publisher ‏ : ‎ jlcollinsnh.com; 1st edition (June 16, 2016)
  • Publication date ‏ : ‎ June 16, 2016
  • Language ‏ : ‎ English
  • File size ‏ : ‎ 4658 KB
  • Text-to-Speech ‏ : ‎ Enabled
  • Screen Reader ‏ : ‎ Supported
  • Enhanced typesetting ‏ : ‎ Enabled
  • -Ray ‏ : ‎ Enabled
  • Word Wise ‏ : ‎ Enabled
  • Sticky notes ‏ : ‎ On Kindle Scribe
  • Print length ‏ : ‎ 288 pages
  • Best Sellers Rank: #8,521 in Kindle Store (See Top 100 in Kindle Store)

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