Recenze knih
The Simple Path to Wealth (JL Collins): The English Original and What It Adds Over the Translation
Key takeaways
- The original contains more specific data and direct references to Vanguard funds than the translated version.
- VTSAX (total market index fund) is Collins's cornerstone — in Europe it is replaced by an equivalent UCITS ETF.
- Collins covers both the accumulation phase and the decumulation phase in detail.
- Key formula: savings rate determines the path to financial independence more than income level.
- The Czech translation (Bohatství v jednoduchosti) is available, but the English original offers the fuller version.
"The Simple Path to Wealth" is the direct predecessor of the Czech translation — and if you read English, it's worth reaching for the original. It's not a different book, but it contains passages and specific numbers that were lost or shortened in translation.
Where the original differs
Collins works directly with the Vanguard VTSAX fund and concrete historical returns of the US market. The discussion of "F-you money" — the sum that gives you the freedom to say no to an unsatisfactory job — is livelier and more candid in the original. The translation is more accessible to Czech readers but smooths out some of the edges.
The decumulation phase — what many books skip
Collins doesn't shy away from the question of what to do once you stop working. He dedicates substantial space to the so-called decumulation phase — how to draw from a portfolio so that it lasts as long as possible. The starting point is the four-percent rule, which Collins critically evaluates along with its limitations.
- Safe withdrawal rate depending on the duration of retirement
- Impact of inflation and sequence-of-returns risk
- The role of bonds in a portfolio during the drawdown phase
Who benefits from the original
Anyone who has already read the translation and wants to go deeper into the numbers. And anyone thinking about FIRE — financial independence and early retirement — who is looking for a solid foundation. The principles of compound interest on which Collins builds are also described in the article the power of compound interest.
Note: A Czech translation under the title "Bohatství v jednoduchosti" exists and is available. The English original was published in 2016 — verify current availability.
FAQ
Is it better to read the original or the translation?
If you read English fluently, go for the original — it is more complete and specific. The translation is an excellent choice for readers who prefer their native language.
What is the decumulation phase and why does it matter?
It's the phase when you stop building a portfolio and start living off it. Collins covers it in detail — many investing books avoid it or reduce it to a minimum.
Do Collins's recommendations apply in Europe?
The principle yes, the specific products no. Vanguard VTSAX is a US retail product; you cannot legally buy it in Europe. Replace it with a UCITS ETF with the same exposure.