JL Collins
- Spend less than you earn.
- Invest the surplus.
- Avoid debt.
It was likely early 2018 when I first read The Simple Path to Wealth by JL Collins from the public library. I read it a second time from the library in January 2023. I purchased the new revised edition and finished reading that this week. I’ll likely buy a digital copy soon for reference.
It’s been 9 years since the book was first published in 2016. It’s been nearly 7 years (07/23/2018 says the Vanguard statement) since I implemented the simple path to wealth portfolio: mostly VTSAX and some VBTLX to smooth out the ride. It took a bit of courage to jump from target retirement funds and a hodgepodge of domestic, international, large/mid/small capitalization value stock and bond index funds.
The book won’t speak to everyone. JL Collins refers to those of us on the path as unicorns. I’m a bit wiser and more humble to appreciate that now. But should the book speak to you like it did to me, you won’t be disappointed.
Personal performance uses a dollar-weighted return formula called internal rate of return (IRR) to calculate your personal rate of return. IRR compares the initial purchase prices of the investment against the current price while also factoring in new money coming into your investment and how long that investment has been held. Because IRR takes new money and time into account, your personal rate of return will likely differ from the posted rates of return for a specific asset in your portfolio.
Personal performance does not include assets from margin accounts, trust services accounts, holdings purchased through companies other than Vanguard (outside investments), or assets from defined benefit plans.
