JL Collins — American financial blogger and author of the bestselling 'The Simple Path to Wealth' (millions of copies sold), originally written as financial advice for his daughter. A leading voice in the FIRE (financial independence) movement.
The gist
Steven Bartlett interviews JL Collins about his core philosophy: avoid debt, live on less than you earn, and invest the surplus in broad, low-cost stock index funds. Collins makes the contrarian case that buying a house often makes you poorer than renting because it inflates your cost of living and destroys flexibility. They dig into the emotional side of investing, the danger of tinkering, compounding, the '4% rule' for financial independence, tax-advantaged accounts, why Bitcoin is speculation not investing, and how a large income can actually be an obstacle to wealth. The conversation closes on divorce as a wealth-destroyer, regret, and Collins's view that life has no ultimate meaning but is worth making the best of.
Big reveals
- Collins says if you want to be financially independent young, you probably should NOT buy a house.
- Argues a mortgage is just the starting point; variable costs (roof, septic, taxes) make houses a trap.
- Bartlett admits his teenage debt strategy was 'get so rich I outpace the debt' and calls it objectively reckless.
- Collins recommends against Bitcoin, calling it pure speculation even after a decade of being wrong about it.
- Reveals his own 401k/IRA deferral backfired: he's now in a higher tax bracket paying RMDs than when he saved.
- Says a large income can be an impediment to wealth because of social pressure to keep up with the Joneses.
- Shares his deepest regret: brushing off his dying father the night before his death at age 24.
- States flatly that nothing ultimately matters and there is no meaning to life or afterlife.
Things worth remembering
- Collins's first mortgage in 1979 carried an 18% interest rate due to 1970s inflation.
- Cites Jack Bogle, who founded Vanguard in 1975 and created retail index funds.
- The '4% rule' (Bill Bengen / Trinity Study): multiply annual spending by 25 to find the portfolio you need.
- Collins's first job paid $10,000 a year and he saved half of it.
- Investing $500/month at 8% for 35 years grows to ~$1.04M, of which ~$850K is growth.
- His 'self-cleansing' index concept: Sears dominated for 100 years then faded, but an index owner automatically owns whatever replaces it.
- The beer-and-foam analogy: beer is a company's operating value, foam is speculation/hype (e.g. Tesla's high P/E).
- Vanguard data: men trade 45% more than women and underperform long-term due to overtrading and tinkering.
- Collins's own allocation is roughly 80% stocks (VTSAX), 15% bonds, 5% cash.
- A wealthy friend's divorce dragged on 6 years; he pays his ex-wife's lawyer and may surrender 60-75% of assets.
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The Simple Path to Wealth
JL Collins
“You wrote a book, a very iconic book that sold millions of copies called The Simple Path to Wealth. Why did you write this book?” — JL Collins 00:02:34Find it on Amazon
Pathfinders
JL Collins
“Whereas the people who make less money probably don't have those same social pressures... And that's was the point of doing Pathfinders.” — JL Collins 01:52:07Find it on Amazon
How I Lost Money in Real Estate Before It Was Fashionable
JL Collins
“there is a third book, a slightly smaller, called How I Lost Money in Real Estate Before It Was Fashionable, a cautionary tale.” — JL Collins 02:12:24Find it on Amazon
VTSAX (Vanguard Total Stock Market Index Fund)
Vanguard
“I'm an advocate of investing in broad-based, low-cost stock index funds... An example of that is VTSAX, which is Vanguard's total stock market index fund.” — JL Collins 01:19:50Find it on Amazon