If you’ve ever felt overwhelmed by investing, you’re not alone. With endless jargon, flashy investment products, and media-driven fear, it’s no wonder so many people avoid the stock market altogether. But JL Collins, author of the best-selling book The Simple Path to Wealth, has a radically calming message: investing doesn't have to be complicated—and it shouldn't be.

I recently had the pleasure of welcoming JL Collins back to the podcast. Known as the “Godfather of FI” in the financial independence community, JL has spent decades preaching a simple, evidence-backed approach to building wealth. His message? Spend less than you earn, invest the rest in low-cost index funds, and ignore the noise.

Let’s break down some of the most impactful takeaways from our conversation and explore how The Simple Path to Wealth can help you own your time and break free from the corporate grind.

Why Do People Avoid Investing?

Only 62% of U.S. adults own stocks. JL Collins believes the reason many avoid investing is simple: Wall Street wants it to seem complicated.

“The more complicated they make it, the more they can charge you in fees and commissions,” JL explained. But the reality? You can sweep all that complexity off the table. “All you need are broad-based, low-cost index funds,” he said.

What Makes Index Funds So Powerful?

Index funds allow investors to own a large slice of the market without trying to pick winners. JL Collins contrasts index funds with actively managed funds, which charge higher fees and rarely outperform the market.

“Over time, less than 1% of active managers beat the S&P 500,” he pointed out. Instead of paying high fees for uncertain results, JL recommends total stock market index funds—like VTSAX (Vanguard’s Total Stock Market Index Fund) or its ETF counterpart VTI.

And if your brokerage doesn’t offer that specific fund? No problem. JL encourages investors to “use whatever brokerage you’re comfortable with—Fidelity, Schwab, Vanguard—they all have solid index fund options now.”

Set It and Forget It

JL Collins coined a term that has become gospel in the FI community: set it and forget it. The idea is simple: automate your investments into an index fund and walk away. The less you fiddle, the better your results.

“Investing is one of the rare areas in life where the less effort you put in, the better you do,” he told me. This approach was key in how he helped his daughter build wealth—she invests automatically and doesn’t even check the market. And she’s on track for incredible results.

We've seen this simple path work well for many couples in our community. Steven and Lauren Keys became millionaires in their 30s with this simple approach.

The Power of Ignoring the Noise

In today's media landscape, fear sells. Whether it's a market drop, global conflict, or political chaos, the media uses fear and anger to attract eyeballs.

“You have to understand the media’s mission is not to inform you anymore. It’s to grab your attention,” JL said. That’s why he encourages investors to ignore headlines and focus on the long game. “The market always recovers. And in the meantime, you’re buying at a discount.”

He even referenced Jack Bogle, founder of Vanguard and creator of the first index fund, who famously said not to open your investment statements for 20 years. That long-term view is the essence of The Simple Path to Wealth.

What About International Stocks?

Despite recent global volatility, JL still recommends sticking to U.S.-based total market index funds—especially for American investors. “U.S. companies make up about 60% of the world’s market cap. And the largest of those companies already operate globally,” he explained.

For international investors, JL suggests a world fund like VT (Vanguard Total World Stock ETF). But for U.S. investors, a U.S.-based total market fund provides both simplicity and exposure to global markets via multinational corporations.

Real Returns Over Time

In both the original and updated editions of The Simple Path to Wealth, JL looks at real data. From 1975 to 2015—a 40-year period—the stock market returned 11.9% annually on average. Over 50 years, from 1975 to 2025, it increased to 12.2%.

Despite pandemics, recessions, political turmoil, and wars, the market kept growing. “There’s always going to be something scary going on,” JL said. “But the pattern is always the same: drop, recovery, growth.”

That’s why he cautions against making financial plans based on fear. “If a black swan event ends civilization, it won’t matter where your money is,” he said. “But 99% of the time, the market recovers.”

FU Money: The Key to Freedom

One of the most empowering concepts from The Simple Path to Wealth is FU Money—a level of financial stability that gives you freedom, even if you're not fully financially independent yet.

FU Money might allow you to quit a toxic job, take a sabbatical, or pursue a dream business idea. For solopreneurs, digital creators, or parents looking to own their time, FU Money can be the bridge between a paycheck and true freedom.

“It gives you the power to make bolder choices,” JL said. And isn’t that what so many of us are seeking?

The Real ROI: Freedom

At the end of the day, JL believes the greatest return on investment isn’t a percentage—it’s freedom.

“People think saving money is deprivation,” he said. “But you’re not depriving yourself—you’re buying something that most people never realize is for sale: your freedom.”

Whether that’s freedom to travel, start a business, spend time with your family, or just sleep well at night, The Simple Path to Wealth is about creating a life on your terms.

Final Thoughts: Your Next Step on The Simple Path to Wealth

If you’re ready to simplify your investing journey, here’s one action you can take today:

Open a low-cost index fund—either S&P 500 or a total stock market fund—at a brokerage like Vanguard, Fidelity, or Schwab. Set up automatic contributions and walk away.

That’s the magic of The Simple Path to Wealth—it’s not flashy, but it works. JL Collins has proven it for over 50 years, and his message has helped millions. If you want to break free from the corporate grind and own your time, start here.

You can learn more about JL Collins and his work at jlcollinsnh.com, and pick up the updated edition of The Simple Path to Wealth wherever books are sold.