The Simple Path to Wealth: Your road map to financial independence and a rich, free life
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- Create Date：2021-05-10 09:52:12
- Update Date：2025-09-06
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- Author：J.L. Collins
- ISBN：1533667926
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Summary
"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 j
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 j
Reviews
Jorgy B
，
I wish I'd read this book 25 years ago。 I mean， it wasn't around then， but whatever。 You get the point。 I wish I'd read this book 25 years ago。 I mean， it wasn't around then， but whatever。 You get the point。 。。。more
João Cortez
，
Very simple and very easy to read strategy for financial independence。
Erika
，
Absolutely loved this book and devoured every detail。 The author does break it down to make it as simple as possible。 The ONLY downside is that， about mid-way through， it becomes very US centered as we do not have 401k's or Roth type accounts in Canada so I wouldn't necessarily recommend this book。 Although we have similar types of products such as RRSP's and TFSA's， it was harder to follow and not necessarily the same types of regulations。 But！ It did get me excited about the power of investing Absolutely loved this book and devoured every detail。 The author does break it down to make it as simple as possible。 The ONLY downside is that， about mid-way through， it becomes very US centered as we do not have 401k's or Roth type accounts in Canada so I wouldn't necessarily recommend this book。 Although we have similar types of products such as RRSP's and TFSA's， it was harder to follow and not necessarily the same types of regulations。 But！ It did get me excited about the power of investing in full force。 。。。more
Carling
，
Solid， straight forward advice。
Ann Jie
，
Super easy to understand book for people who are new at financial planning。 Simplifies difficult concepts， gives sound advice。 Only issue is this book is very US focused especially towards the end so for those not in US those chapters are not very relevant。 But overall， great read！
David
，
I had already started several of the practices described in this book。 Reading g it here reaffirmed those practices。 I recommend it to almost anyone， anyone with time to save。 I wish I came across it years ago before finding put about VTI and VTSAX。
VLP
，
I read it， imma try to put it into practice。 Will come back in 20+ years and give it 5 stars if by that time I have F-you money。 LOL。 Gotta start somewhere and what better path to take than the simplest one。 LET’S GET RICH。The first part is skippable。。。you really start learning from part two onwards。 Also， as a complete beginner when it comes to finance and investment this book is okay but it’s not enough to understand the complexity of even the simple path that’s suggested。 So be prepared to st I read it， imma try to put it into practice。 Will come back in 20+ years and give it 5 stars if by that time I have F-you money。 LOL。 Gotta start somewhere and what better path to take than the simplest one。 LET’S GET RICH。The first part is skippable。。。you really start learning from part two onwards。 Also， as a complete beginner when it comes to finance and investment this book is okay but it’s not enough to understand the complexity of even the simple path that’s suggested。 So be prepared to study more if you really wanna start and see results （saying that to myself）。 。。。more
Caruso
，
One of the greatest financial books I’ve ever read。 It’s so easy and prove。 And written in a colloquial manner that makes it easily understood。 An amazing find。 And totally worth the time。
Xiang
，
simplicity is the ultimate sophistication！
Alara
，
Recipe for success？ Keeping it simple！ This goes both for this book （clear， to the point and easy to understand） as well as for investing。Loved the dry humour and the author's thinking and investment philosophy。 A few chapters were not as relevant for me being based in the UK but overall excellent read that I would totally recommend。 Recipe for success？ Keeping it simple！ This goes both for this book （clear， to the point and easy to understand） as well as for investing。Loved the dry humour and the author's thinking and investment philosophy。 A few chapters were not as relevant for me being based in the UK but overall excellent read that I would totally recommend。 。。。more
Sam Smart
，
I wish I heard， listened to， and followed this advice about 20+ years ago。 I could retire today。 Easy peasy financial wisdom。
Bilal Bin
，
These books contain realistic approach to finance
Marsh
，
Not exactly the boring financial book it sounds like。 Good advice that is easy to break down and put into action， without condescending or going way over your head。
Gavin
，
This gave me a lot of food for thought， and definitely has me wanting to check the fees I currently pay for my mutual funds。 I may be in the market for Vanguard funds soon… However some of the advice he offers is way too heavy-handed—for example his black-and-white opinion that *all* debt is bad。 That may be his opinion， but to go so far as saying it’s never good for anyone blatantly disregards those who are responsible enough to manage debt to their own advantage。 He also rails against using an This gave me a lot of food for thought， and definitely has me wanting to check the fees I currently pay for my mutual funds。 I may be in the market for Vanguard funds soon… However some of the advice he offers is way too heavy-handed—for example his black-and-white opinion that *all* debt is bad。 That may be his opinion， but to go so far as saying it’s never good for anyone blatantly disregards those who are responsible enough to manage debt to their own advantage。 He also rails against using any help to pay down debt， or help in managing retirement funds。 Yes， from a stark and purely pragmatic perspective， they’re unnecessary costs。 But humans， on average， are irrational and emotional。 Telling someone who’s suffering from debt to “suck it up and pay it all off” doesn’t help them。 One of the common ways people sink into debt is because they didn’t have the discipline to avoid it in the first place。 Ideally， they would be purely rational in getting out of it， but if they’re struggling， it’s my opinion that it’s better to do whatever it takes to get the ball rolling。 If that means using outside help that’s better than nothing， as long as you’re aware of the costs involved。His one-sided opinions definitely made me skeptical of his more useful advice—how much of it is applicable to everyone， versus *his* unique situation？ I look forward to learning more from other sources so I can form my own opinion and know what’s best for me。 。。。more
Aneesa
，
Hopefully you are reading this book in your 20s， in which case you're probably better served by I Will Teach You To Be Rich。Like that book， it's mostly a lot of bucking you up to set it and forget it， but from an older perspective， and perhaps a good book to have on your shelf the next time the market crashes。 Personally， I was finally convinced to abandon dollar cost averaging last month but then my mom said something about my horoscope that made me hold everything。 😬Even skimming， I did learn Hopefully you are reading this book in your 20s， in which case you're probably better served by I Will Teach You To Be Rich。Like that book， it's mostly a lot of bucking you up to set it and forget it， but from an older perspective， and perhaps a good book to have on your shelf the next time the market crashes。 Personally， I was finally convinced to abandon dollar cost averaging last month but then my mom said something about my horoscope that made me hold everything。 😬Even skimming， I did learn a lot more about bonds than I intended to。 The book got kind of complicated at the end so I'll have to pick it up again when I'm ready to retire （unless I already retired last March？？）。 🤔p。s。 I do resent how all these books （and all financial advice） focus on trying to get out of paying taxes。 。。。more
Lindsay Allen
，
Want to set yourself up for financial freedom？ This is it！
Megan Healy
，
Reading about finances is a tricky thing。 It’s your money。。。 so it’s emotional。 He has such a specific strategy， it’s hard not to feel defensive or like you’re a massive screw-up because there’s almost no way your financial preparedness matches what he recommends。 So you get to think through such fun topics as。 am I getting scammed by my financial advisor？ Have I been totally stupid with my money？ I practically started hyperventilating at one point， frantically messaging my husband that we neede Reading about finances is a tricky thing。 It’s your money。。。 so it’s emotional。 He has such a specific strategy， it’s hard not to feel defensive or like you’re a massive screw-up because there’s almost no way your financial preparedness matches what he recommends。 So you get to think through such fun topics as。 am I getting scammed by my financial advisor？ Have I been totally stupid with my money？ I practically started hyperventilating at one point， frantically messaging my husband that we needed to double what we’ve been putting in our Roth IRAs。 These are good and necessary things to think through， and it’s good to have more awareness of the pitfalls of the financial course you’re on。 But， I will say I still feel like though many concepts we repeatedly emphasized， almost to a fault， some of the concepts are still totally over my head and I’m left a little frustrated。 But overall， this book is a good starting point for me in my efforts to understand investing。 。。。more
Geoff Nielson
，
Great book to get your feet wet into the world of investing。 Some unnecessary language for a book on investing。
Pinar
，
Bu kitabı ne düşünerek aldım ben de bilmiyorum， galiba ismi ve bu kadar beğenilmiş olması yüzünden iş ve para kazanmakla ilgili kitaplar okuduğum şu dönemde ilgimi çekti。 Kitabı sesli kitap olarak dinledim。 Para kazanmaya dair bilinmedik bir şeyler söylemiyor。 Zaten kitabı kızı için， işte parasını düzgün değerlendirebilsin diye yazmış。 Kitap konusundaki en büyük eleştiri heralde gerçekten para kazanmayı ve paranızı nasıl değerlendireceğinizi azıcık da olsa biliyorsanız tamamen anlamsız bir kitap Bu kitabı ne düşünerek aldım ben de bilmiyorum， galiba ismi ve bu kadar beğenilmiş olması yüzünden iş ve para kazanmakla ilgili kitaplar okuduğum şu dönemde ilgimi çekti。 Kitabı sesli kitap olarak dinledim。 Para kazanmaya dair bilinmedik bir şeyler söylemiyor。 Zaten kitabı kızı için， işte parasını düzgün değerlendirebilsin diye yazmış。 Kitap konusundaki en büyük eleştiri heralde gerçekten para kazanmayı ve paranızı nasıl değerlendireceğinizi azıcık da olsa biliyorsanız tamamen anlamsız bir kitap。 Parayı değerlendirmeye dair önerileri tamamen tahvil ve bonolar üzerine ve tamamen Amerika'da yaşayanlar için。 Kitapta en rahatsız olduğum noktalardan biri en çok vergi veren kuzey ülkelerinden birinde yaşarken （ne mutlu ki ödediğimiz vergilerin bize ne şekilde geri döndüğünü görüyoruz）， Amerikalıların para kazanmaya dair en büyük numaralarından biri "nasıl vergiden kaçınırsınız" başlığı altındaki tavsiyeleri oldu。 Sizi okumaktan kurtarmak için özetliyim。 1。 Borç almayın。2。 Borç alırsanız biran evvel kapatın， boşu boşuna borç faizi ödemeyin。3。 Paranızı gereksiz yere harcamayın。4。 Tutumlu olun。5。 Para biriktirmek için çok çalışın。 6。 Tutumsuz insanlardan uzak durun， onlarla evlenmeyin。7。 Kazandığınızdan çok harcamayın。8。 Kazancınızın yarısını biriktirin。9。 Finansal danışmanlarla çalışmayın， kendi paranızı kendiniz yönetecek kadar finansal konuları öğrenin。Dediğim gibi tahvil ve bonolar üzerinden yatırım öneriyor， bu daha çok Amerikan bonoları， alın ve unutun， emekliliğiniz geldiğinde yeterince biriktirmiş olacaksınız şeklinde。 Yine vergi vs。 konularından nasıl yırtarsınız üzerine baya bi bilgi veriyor。 。。。more
Marie
，
Most the reviews I read on various sites about this book really talked it up。 Yes， there were some decent points how 'how to' and 'what to avoid' although， most of it is common sense。 The other thing that made it hard to get through this book is that it felt like a 240 page advertisement for Vanguard。 I get it， the author thinks Vanguard is the best thing on the market。 Let's be real for a minute， most common people do not have $10k to throw down on some top o' line primeo stock。 Most the reviews I read on various sites about this book really talked it up。 Yes， there were some decent points how 'how to' and 'what to avoid' although， most of it is common sense。 The other thing that made it hard to get through this book is that it felt like a 240 page advertisement for Vanguard。 I get it， the author thinks Vanguard is the best thing on the market。 Let's be real for a minute， most common people do not have $10k to throw down on some top o' line primeo stock。 。。。more
Varun Upadhyay
，
Author repeatedly focuses on the fact that keeping investments simple and boring are super hard。 Though if someone succeeds in doing so will end up accumulating FU money。
Jennifer Klee
，
Having been familiar with FIRE and its concepts for about 5 years， this book doesn’t really add anything new to that game。 The book is repetitive but only because the points bear repeating: Basic investing in index funds， save your money， avoid debt at all costs， contribute statutory max to IRA and 401k。 Most of us already do that。 But this book teaches these concepts in simple， easy-to-read ways and it’s quite a funny read， too。 This is such a great read for someone in their 20s just starting o Having been familiar with FIRE and its concepts for about 5 years， this book doesn’t really add anything new to that game。 The book is repetitive but only because the points bear repeating: Basic investing in index funds， save your money， avoid debt at all costs， contribute statutory max to IRA and 401k。 Most of us already do that。 But this book teaches these concepts in simple， easy-to-read ways and it’s quite a funny read， too。 This is such a great read for someone in their 20s just starting out。 I wish I’d read this book at 22。 I’d be retiring in my 40s if I had。 I do have to wonder if Vanguard paid this guy？ All my money is in Vanguard so it didn’t bother me。 I love Vanguard and VTSAX and TRFs too， but jeez， this author’s love affair with them is borderline creepy。 。。。more
Edu
，
Muy buen libro para tener una idea general de en qué consiste invertir y hacerlo con confianza， desde el inicio （creación de riqueza， primera mitad del libro） hasta cómo ir retirando los profits una vez jubilado （la parte más técnica del libro， segunda mitad）。 Da pautas muy claras， aunque muy orientadas al mercado americano。 La idea básica es que hay que ahorrar al menos 50% de tú income e invertir 75% en VTSAX （Vanguard Total Stock Market Index Fund）， 20% en VBTLX （Vanguard Total Bond Market In Muy buen libro para tener una idea general de en qué consiste invertir y hacerlo con confianza， desde el inicio （creación de riqueza， primera mitad del libro） hasta cómo ir retirando los profits una vez jubilado （la parte más técnica del libro， segunda mitad）。 Da pautas muy claras， aunque muy orientadas al mercado americano。 La idea básica es que hay que ahorrar al menos 50% de tú income e invertir 75% en VTSAX （Vanguard Total Stock Market Index Fund）， 20% en VBTLX （Vanguard Total Bond Market Index Fund） y 5% cash。 El autor es muy fan de los Index Funds de Vanguard y explica el porqué。Otra idea clave es que a partir de que seas capaz de vivir con 4% de lo que te renten tus inversiones ya te puedes considerar financieramente independiente。 。。。more
Michael Moose
，
I'm very glad I read this book。 Fear， uncertainty， and doubt are constant factors as an investor。 You think that in order to truly capitalize on your investments， you have do do a lot of research and try to pick winners in the market。 Collins does a great job of debunking that notion by showing the overwhelming statistics to prove that the best strategy is a simple one。 He then goes on to provide a great overview of exactly how to follow this simple strategy。 I've already started implementing th I'm very glad I read this book。 Fear， uncertainty， and doubt are constant factors as an investor。 You think that in order to truly capitalize on your investments， you have do do a lot of research and try to pick winners in the market。 Collins does a great job of debunking that notion by showing the overwhelming statistics to prove that the best strategy is a simple one。 He then goes on to provide a great overview of exactly how to follow this simple strategy。 I've already started implementing the strategies in this book， and I feel happy knowing that this simple plan is both optimal and stress-free。 。。。more
Dynah Zale
，
Not that I’ve read many but this is one of the best books about personal finance I’ve ever read。 Mr。 Collins Put the work in to make this book as relatable as possible and I was ready for every word。 I was very skeptical that I could understand a lot of the principals and he does give A LOT of information but he lays a good solid foundation。 Everyone should start here。
Bryan Wong
，
There is no shortage of advice when it comes to personal finance and investing。 So much in fact， it can be difficult to know where to begin。 Above all the noise is the calming and welcoming voice of J。L。 Collins。 His book， The Simple Path to Wealth， is insightful， relatable， and most importantly actionable。 It is a must read for those seeking to master their relationship with money and achieve financial independence。
Dimitar Stoilov
，
Top notch book Amazingly well written book that explores some of the basics of investing whilst teaching you complex fundamentals along the way in layman English。 I've background in finance and business， and have been an amateur investor myself for some yrs now so whilst reading it I put everything through my prism of thinking and the book not only stacks up， but hits the marks on how to avoid some of the very expensive mistakes。 After reading it， I changed my investing strategy and will definit Top notch book Amazingly well written book that explores some of the basics of investing whilst teaching you complex fundamentals along the way in layman English。 I've background in finance and business， and have been an amateur investor myself for some yrs now so whilst reading it I put everything through my prism of thinking and the book not only stacks up， but hits the marks on how to avoid some of the very expensive mistakes。 After reading it， I changed my investing strategy and will definitely recommend it even if you are complete beginner in the world of finance and investing 。。。more
Daniel Hageman
，
Might be the most straightforward book for someone looking to become smart with their finances。 One of the short chapters at the end about 'giving like a billionaire' had a few cringeworthy comments， but I'm glad such goals were promoted nonetheless to round off the concise advice that everyone should know。 Might be the most straightforward book for someone looking to become smart with their finances。 One of the short chapters at the end about 'giving like a billionaire' had a few cringeworthy comments， but I'm glad such goals were promoted nonetheless to round off the concise advice that everyone should know。 。。。more
Sean Borde
，