"The Simple Path to Wealth" offers practical advice on how to achieve financial independence and wealth. By following the book's simple yet effective strategies, readers can take control of their finances and build a secure financial future. Download the PDF on GitHub and start your journey to financial freedom.
: As retirement nears, the strategy introduces bonds (like VBTLX) to smooth out volatility and protect capital. the simple path to wealth pdf github
Spreadsheets designed to mirror the Collins strategy. "The Simple Path to Wealth" offers practical advice
If you are looking for the gist of the book without reading every page, here are the non-negotiables: : As retirement nears, the strategy introduces bonds
For those still working, Collins suggests a "Wealth Accumulation" phase. This typically involves putting every spare dollar into VTSAX (or VTI for the ETF version). He dismisses the need for bonds during this phase, as the goal is maximum growth. Once you reach the "Wealth Preservation" phase (retirement), he suggests adding a small percentage of bonds (VBTLX) to smooth out the ride.
To determine when you have enough to retire, Collins relies on the "4% Rule," derived from the Trinity Study. The rule suggests that if you withdraw 4% of your portfolio in your first year of retirement and adjust that amount for inflation each subsequent year, your money has a high probability of lasting 30 years or more. This creates a clear target: your "number" is 25 times your annual expenses.
