The Simple Path to Wealth: Your road map to financial independence and a rich, free life Kindle Edition

I liked the author’s podcast interview by the respected, data-driven and the whimsical Mad Fientist. I bought this book for two important reasons: it was self-published and the author’s persistent reference to Jack Bogle’s genius. I support self-published financial authors because the traditional publishers deploy editors to tweak the author’s voice, and original story, to make the final “processed” book more sellable. Instead, self-published authors do not have to satisfy shareholders or generate sales, so the author’s message about Bogle’s investment philosophy and the company he founded, Vanguard, remains organic for the readers’ best interest.This book is perfect for beginners, and some seasoned investors who are sick and tired of searching for that short-term investment miracle. Collins stuck with Bogle’s purest message from the beginning to the last word. As a Bogle devotee myself, I appreciate his courage to stand up, write a terrific book and argue effectively for the powerful and low-cost indexing strategy and against the delusional appeal of day-traders, hedge fund managers, active management strategies, timers, or individuals who claim they can successfully speculate and win big. Far too many normal investors get caught up in those phony, but exciting fantasies and lose. The new guy or gal investor gets the skills to construct a simple portfolio you understand, and then have the courage and the confidence to permanently ignore the media’s seductive financial noise machine.The Simple Path to Wealth's basic message to beginners is well-known in the Do It Yourself (DIY) and ESPECIALLY for the Youthful Financial Independence (aka FI and FIRE Financial Independence Retire Early) community.• think long-term• live below your means• plan ahead with a fully diversified portfolio (except international stocks, more on this below)• invest in Vanguards low-cost index fundsSooooo, what is not to like? I’ll admit it’s a boring plan, and not all DIYers embrace it. But I love my boring plan and it’s exactly where the power of what we can do lies—after setting up our plan, we must be patient.Collins writes much about psychology, for good reason. The power lies with us. It's not us versus the big intimidating stock market. With time and experience, we learn to be psychologically tough for long periods of time. In the movie Wizard of OZ, Glenda told Dorothy that she “always had the power to go home again?” It's the same for us investors. All of the features of constructing a balanced plan remains under our control. It fairly easy to learn. But the hard part is the unfair and counterintuitive psychology. Thinking long-term is the best antidote. Over time the growth will pay enough of a return to meet or beat the inflation rate. Meeting or beating inflation is a simple, realistic goal, and psychologically attractive. This book shows you how to like saving with minimal time and effort to discover the investing process.Patience, psychology, and philosophy are a difficult sell. Many investing aficionados are more interested in the adrenaline rush and chasing the opposite sex than building wealth over time. The market is not something to conquer or control. It is simply made up of wonderful organizations of hardworking people, called publicly traded corporations. The author explains how to harness all of that positive corporate energy, and just flow with it, whether it goes up or down, and over time it goes up. The author addressed the tough sell challenge with elegance and subtle toughness.The author discusses investment costs, taxes, tax-deferred retirement plans offered by employers, the retirement years and strategies to keep from running out of money. My favorite chapters are “Why I don’t like Investment Advisers” and “Some final thoughts about risk.” Financial advisers are an easy target with hundreds of reasons not to like. Most of us DIYers will never need a financial adviser, for two good reasons: Collins writes “Nobody cares about your money more than you do,” and “you can learn to manage your money yourself with far less cost and better results.” From my personal experience, knowing how to save investment costs alone was enough to pay cash for the Tesla Model S.On the subject of risk, my favorite part, and I quote as the author was speaking to the zombie apocalyptics among us especially the financial media: “Major Armageddon extinction events, like the asteroid that took out the dinosaurs some 65 million years ago, have happened about five times. So that’s about one every 10 million years or so. Are we really arrogant enough to think it’s going to happen in the geological eye-blink we’ll be around? That we’ll be the ones to witness it? Not likely.” Economic Armageddon ain’t going to happen either.There are a few minor omissions. The author is not well known, so he needs to talk more about himself about what he did. I felt like he had more to say as examples of his fears of risk and the mistakes he made. All of that would have made the book even more authentic and organic. What was the role of his wife? What exactly did the author and his wife do for a living? He did report that he worked as a financial analyst. So, was he in the financial industry? He did not explain why he had an overly aggressive portfolio for an individual in his 60s. He did not share his diversification plan, except that he doesn’t own international stocks (he explains why).Consequently, I give him an A for telling us how to set up a portfolio and his rationale, but I give him a B for not showing what exactly he did and for how long. His rationale is spot on, but portfolio construction and asset allocation strategies and information can be found in many books (The Boglehead Guide to Investors, any book written by Jack Bogle or his followers, Ferri, Swedroe, Roth, and Bernstein).• Some other minor items that I found perplexing and discouraging for people starting out. On page 246, he writes, “Save and invest at least 50% of your income.” What? I reread this twice, and could not comprehend why the author wrote this. In my working career, I could not even contribute the maximum allowed in my 403(b) plan let alone save 50% of my income (No, I never had new car payments because I could not afford car payments and invest too). Yet, I reached financial independence at age 61. 50% of one’s income is overreaching and dangerously discouraging (unless you are a highly elite and talented employee with a 7 figure income). For the rest of us, just start with what you can afford. For example, I started at age 37 with $200 a month in my 403(b), and that was a lot out of my meager income. But I kept it up for 24 more years.• Back to his strategy about avoiding international stocks. The author knows he will get pushback, and he probably has heard my argument for international investing many times. Mr. Collins is just following Bogle's advice about keeping it simple. But one can have it both simple and fully diversified worldwide by one fund. Diversification means investing in all available stocks, worldwide. So, let’s take advantage of these opportunities to invest in just one fund, the Vanguard Total World Stock ETF (VT). The author won’t have it. IMO, the author might be reflecting his age and the Familiarity/home bias that is so frequent with the silent generation. The author writes investing in the United States domestic market is enough diversification because of the worn-out 21st-century global connections argument. He offers what appears at first glance valid reasons, but they are out-of-date, and one about excessive costs is flatly wrong. Vanguard's Global fund charges .14%. I don’t know about you, but the opportunity to invest in all publically traded companies on the planet is inexpensive!Also, I am 74 years old and old enough to remember my elders saying that is too risky to invest in foreign stocks. We are well into the 21st century and the world has changed. Don’t you think that international corporations want to grow and prosper too? Of course. Don’t you think opportunities for diversification have evolved for the better? Yes. I want as much diversification as possible to reduce equity risk, and reduce volatility. I might even get higher returns, but that’s not part of my expectations. The global index funds or ETFs make full diversification in just one investment a synch.• Another minor objection is his downplaying the Roth IRA. I think he over-complicated with trying to predict the tax rate to decide to use or not use the Roth IRA. It’s futile and a waste of time to guess the future. Not having to pay capital gains taxes after investing in the Roth IRA is one of the best strategies for us regular investors (You can run the numbers on a brilliant Excel program created by The Finance Buff). After running the numbers on the Excel program, you will be thoroughly convinced to include the Roth IRA in your plan.• One last objection. I recommend to readers who don’t have a “lump sum” that is, a bundle of money to invest already, that you ignore the “Why I don’t like dollar-cost averaging” chapter. I had to use DCA during my entire working career investing in my 403(b). Because I started from NOTHING and had less than $50,000 for years. If you have a lump sum to invest, follow the author’s advice. But I think I can speak for most investors who have little choice but to use DCA. His opinion about DCA was more discouraging than encouraging.Collin’s strong opinions about some of his investment ideas represent more of his individuality than sound investment practice. Of course, the author never intended to be discouraging. I am just responding as a reader with a few of my opinions about his outstanding work. That’s perfectly fine for him as his opinions worked for him and they might work for you too. My opinions worked well for me. In the final analyses, he follows the “Boglehead” way. For that, I am delighted he wrote a great self-published book showing once again the work of the legendary investor, advocate, and teacher, Jack Bogle. Outside of these minor differences of opinion, Mr. Collins earned a well-deserved five stars.In sum, if any author self-publishes a book about investing, I think it is important to readers to know that the message is organic—no other agenda item hangs in secret, other than to explain and layout a simple plan which will connect with new investors and get them results.

This book changed my life. I wish I would have read it in my 20s, absorbed it, and practiced it. All the books I have recommended to people for life-changing advice have normally been philosophical or spiritual. Now, I will be recommending this book instead. I am not even financially literate and I was not only able to understand it, but it was engaging. After reading it, I made the move to pay off my debts and investing wisely and long-term. I cannot recommend this book highly enough!

I liked it. I know a lot on the subject matter but this is explained in a nice straightforward way and it streamlined some of my own investment decisions. Simple is better.

The Simple Path to Wealth by JL Collins is a straightforward guide to index investing, aimed at those just starting their investing career. The book advocates for a simple, low-cost approach to investing in the stock market that is grounded in sound principles. While the ideas presented in the book are not new, the author's approachable writing style makes for an easy read.However, some readers may find the book a bit long-winded, given the simplicity of the concept. Additionally, the author's use of a high market return may be misleading for individuals, and it's something that readers should keep in mind.Overall, The Simple Path to Wealth is an excellent starting point for those looking to invest in the stock market. The author's emphasis on keeping things simple and avoiding unnecessary complexity is a valuable lesson for all investors, and the book is well worth reading for its sound principles and easy-to-follow advice.

JL Collins absolutely nailed it when he chose the title for this book, because it definitely lays out the simple path to wealth. Many books on the subject are extremely long-winded and complicated, full of confusing terms and strategies that leave you wondering if you'll ever be able to retire. Quite frankly, those books can be outright dreadful, filling you with gloom.This one is different. In a consistently light and friendly tone, JL gives you hope by clearly and concisely explaining how little is actually required for anyone to become wealthy. The path to wealth requires only clear thought, a dedication to living well below your means, simple investing, and the willingness to allow time to work its magic and compound your investments into a sizeable fortune--no genius knowledge or extensive training is required. In short, anyone can reach their financial goals following JL's advice, even you.Due to the simplicity and accuracy of its message, this is my single favorite finance book I've ever read. I've purchased many additional copies and given them away as gifts. I only wish I had been presented with this information when I was in my college years--I would have retired long ago, and my life would now be totally different. As is, I am frantically catching up as quickly as I can. Time can be a powerful ally to the young investor, so don't waste time putting this advice into practice.May all readers of this book to reach their financial dreams.

This book provided so many useful bits of information and some much-needed comfort in terms of the investing mindset. So glad to be reading this at 28 and wish I would have read it sooner!

Pretty much

Sure wish I had read something like this back when I was just starting my career. I’m giving this book to my daughter and son-in-law so they have time to change their financial destiny.

J. L. Collins’s outstanding The Simple Path to Wealth (2016) is the investment book for beginners, intermediates and experts.Collins’s message is to find financial freedom: the ability to never work again, if you don’t want to, and have enough money “F-you money” that your investments provide appropriate income for you to retire early and live comfortably. The book’s majority focuses on a simple investment strategy. Collins’s simple strategy is all an investor ever need. He also provides clear, pithy advice on how to live, such as “Avoid debt”. Simple yet telling. What surprised me most, and what I benefited from the most, was his reassuring view to the behaviour of investing. He tells the truth at every stage, and doesn’t pull any punches, such as the market will drop, and you will see your investments half. But, as always, he’s the anchor of sanity, and says we need to hold our nerve when that happens, to actually buy more during those downturns and ride out the bad times, as the good times come a lot more often and provide great returns.The highlight here is Collins’s experienced, uncle’s voice. He writes in a way that is friendly and smart. A voice to trust. Collins’s been there, made the mistakes, dusted himself off and seen the light; it’s almost as if he took the hard route in order to pass on his knowledge so that we don’t need to make the same mistakes, and we can follow him on the right path.The Simple Path to Wealth is a rare book that is both thoroughly enjoyable and wise in its teaching. I adored reading every word and learning everything I need to know about investing in the stock market. I’d recommend this book to everyone, but especially people who say, “I know nothing about stocks and shares.” All they need to do is read this short book and follow its simple message. A superb book in a sea of unhelpful, impenetrable finance books.

You have to bear in mind that this book was written with U.S. investors in mind, but the principles are the same. (Obviously ignore the chapter on tax as UK rules will be totally different) It's written in very simple terms and is easy to understand for the non professional investor. It makes you realise you can invest very successfully, very cheaply, and with very little hassle, without having to be an expert, and without having to continually monitor your investments. In fact it becomes quite clear that the less you monitor / fiddle the better your outcome is likely to be.

I first heard of this guy after stumbling across an interview he did with 'Google Talks' or something like that on YouTube and I really liked his demeanour and straightforward but friendly advice on investing. So I checked out his blog site and ordered the book. As someone who is brand new to investing, it's really refreshing to read such an engaging book that although is very US-centric in parts, still holds some very valuable information and advice for those starting out or even more seasoned investors. Collins' style is warm, witty and engaging and I will certainly be revisiting this again.Well worth your 'investment' :-)

A good basic step by step guide to investments for beginners. Some sections only apply to the U.S. in terms of tax, social security etc so it would be helpful to have those sections adapted to other countries so you can choose to buy the version applicable to where you live. The book was recommended on the Mr Money Moustache blog which I think is a great source of information on managing your finances to allow early retirement.

This book's advice is more or less consistent with personal finance community's wisdom, but summarised in one short book.The proposed portfolio - 1 ETF for wealth accumulation stage and 2 ETFs for wealth preservation stage - is much simpler than what the majority of people have.The downside is that a lot of specifics the book covers, especially on tax optimization, are tailored to America, but author offers enough guidance that you could implement the same ideas in any other country.