The Simple Path to Wealth: Your road map to financial independence and a rich, free life by J L Collins (PDF)

Description

“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 ruffianThis 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!

User’s Reviews

Editorial Reviews: About the Author These days, I’m a book author and financial blogger on jlcollinsnh.com, but it wasn’t always so. I started selling flyswatters door-to-door and picking up empty pop bottles from the side of the road for the 2-cent deposit. Gimme a break. I was eight. My first real job was scrubbing out big metal ice cream cans. I was 13. It paid $1.25 per hour. From there: Busboy, dishwasher, order-puller, grocery bagger, stock clerk, produce clerk and gas station pump jockey back in the day when someone pumped your gas, washed your windows and checked your oil (ask your grandparents). Mail clerk, tree-trimmer, landscaper, ad agency founder, account executive, ad space salesman, investment officer, entrepreneur, consultant, sales trainer, speaker, writer, radio talk show host and magazine publisher. Pretty much in that order although I’ve done some more than once. And I may have forgotten one or two. My work has taken me to most U.S. states as well as Canada, Germany and England. One of my few regrets is that I’ve never had an international posting. But I’ve had the good fortune to see a bit of the planet on my own: Mexico, Canada, Ireland, Wales, England, Greece, Crete, Puerto Rico, Tahiti, Venezuela, Curacao, Scotland, Italy, Germany, Spain, Paris, India, Kashmir, Goa, Nepal, Zanzibar, Tanzania, Eleuthera, St. Thomas, St. Martin, Barbados, Antigua, Martinique, Ecuador, Perú, Bolivia, Chile, Prague, Guatemala, Galápagos. Pretty much in that order although I’ve visited some more than once. And I may have forgotten one or two. I’ve traveled by plane, train, bus, boat, subway, taxi, hired car, motorcycle, bicycle, rickshaw, hitch-hiking, foot, horse, donkey and elephant. Not only traveled by elephant, but herded rhinoceroses by elephant back in Nepal. My degree in English Lit is from the University of Illinois at Champaign-Urbana. They still send me alumni letters mostly, I think, hoping I’ve become rich and famous. I’m working on it. Here’s my favorite cartoon: The visual is two guys in a corn field, up on racks dressed in shabby clothes. Straw coming out from their shirt cuffs and pant legs. They are serving as scarecrows. One is looking over at the other and saying… “English Major. How about you?” A pal of mine once said I had won the family lottery. He is right. My wife Jane and I have been married for 34 years. Our daughter Jessica graduated Summa Cum Laude from the University of Rhode Island. She currently serves in the Peace Corp.

Reviews from Amazon users which were colected at the time this book was published on the website:

⭐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.

⭐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.

⭐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.

⭐I wasn’t thinking much of it behind starting to read, however, it turned out to be the best book I ever read on simplified investing. What separates it from others, that it has very specific guidance and spells out to you to do what. Author seems clear and sincere. He is a Bogle head like myself. Mr. Jack Bogle from Vanguard is my hero and author calls him his hero too. I took notes and writings and told my family to follow advices in this book if I die before my time. I really wish author writes an updated edition in 2025 again. Thanks JL!

⭐I ordered three for my family of neophyte investors. Good basic book.

⭐This is a great book which give an outstanding alternative to become financial inpendent throughout the years.It is a great book for your people and who are looking for a simple alternative to invest.

⭐Just about done with the book, took me only a few days. It was an easy read and very engaging as well as informative. I think he does a pretty good job at laying it out in language almost anyone can understand (some things / terms I still needed to pause to grasp, lol. I am BRAND new to all things investing / stocks). Overall, very happy with it. I will keep this on my shelf to continue to reference over time.

⭐I’ve read lots of books and blogs on this subject. This is the absolute best. JL Collins really did keep the topic simple, yet he also explains absolutely everything you need to know.I am keeping this book as a reference manual. I still look back at different parts of it a year after first reading it.

⭐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.

⭐Amazing book – a thoroughly enjoyable read and the most comprehensive guide to investing and financial independence. JL Collins genuinely wants to impart his years worth of investing knowledge to make life more rich and secure for all. I wish I had read this book years ago, but feel so fortunate that I’ve read it at all. As others have mentioned, it’s very US focused, but the principles hold well and if you follow them your life will absolutely be better off for it.

Keywords

Free Download The Simple Path to Wealth: Your road map to financial independence and a rich, free life in PDF format
The Simple Path to Wealth: Your road map to financial independence and a rich, free life PDF Free Download
Download The Simple Path to Wealth: Your road map to financial independence and a rich, free life 2016 PDF Free
The Simple Path to Wealth: Your road map to financial independence and a rich, free life 2016 PDF Free Download
Download The Simple Path to Wealth: Your road map to financial independence and a rich, free life PDF
Free Download Ebook The Simple Path to Wealth: Your road map to financial independence and a rich, free life