I read the acclaimed book that’s helped tons of people achieve financial independence. Here are the 2 main takeaways, who it’s for, and who should avoid it.

The paperback cost me $22. I read it over about three days, pen in hand, so I could offer my own notes and reflections.

Prior to writing it, the author had been investing since 1975 and considered himself financially independent after 2011, when he quit his job. He defined the term as such: “When you can live on 4% of your investments per year, you are financially independent.”

The same year he stopped working was when he started writing a series of letters to his daughter about money and investing. These letters would become the foundation of his 2016 book.

It’s written as one might speak to a family member. It’s colloquial and casual, with the occasional dad joke sprinkled in. Much like the concepts in the book, the writing is straightforward and simple. The chapters are short — the longest one, a chapter on retirement accounts, is 13 pages — and tempt you to read “just one more” before calling it a night.

The book is also repetitive — in a helpful way.

I read the acronym “VTSAX” so many times I nearly used it to start my Wordle game. Collins mentions Vanguard so frequently it’s easy to forget that other investment companies exist (he explains why he prefers Jack Bogle’s brainchild, and the reasoning is sound).

The repetition reminded me of being coached on the tennis court. I heard “move your feet” and “keep your head down” so often during a lesson that I rolled my eyes in the moment. But it was good, helpful advice that I’ll never forget. Like any good coach, Collins ingrains the important stuff.

He’s also experienced, having invested during the crash of 1987 and “Black Monday,” the tech crash of the late 1990s, the 2008 global financial crisis, and many other “smaller collapses.” He’s upfront about the investing mistakes he’s made (buying penny stocks) and the investments that have made him wealthy (VTSAX).

The key takeaways

1. As the title suggests, simplicity wins. Collins makes good on his promise to provide a simple path to wealth. His portfolio consists of two index mutual funds (VTSAX and VBTLX) and a money market or bank account to keep cash.

For younger investors in what he calls the “wealth accumulation” phase, the strategy is even simpler: Buy stocks via Vanguard’s Total Stock Market Index Fund. (He’s only added bonds to his portfolio because he’s in the “wealth preservation” phase.)

2. A couple of smart money moves can outweigh numerous mistakes. Collins says that, despite the many investing mistakes he made, three decisions helped him achieve financial independence:

• Saving 50% of his income
• Avoiding debt
• Investing in index funds

Note that my one big qualm with Collins’ text is his suggestion that saving 50% of your income is simple. While the concept may be simple, I’m not convinced that it’s simple in practice when juggling basic needs like housing, transportation, and food with discretionary spending that makes life fun.

To be fair, he wrote this nearly a decade ago when life was less expensive.

Who the book is for

Many different types of investors can benefit from Collins’ book: the 20-something who just graduated from college and has never heard of an index fund; the 50-something who is preparing for retirement and looking to preserve their wealth; the skeptical investor who’s nervous to put their money in the market and needs a pep talk; and the investor like me, who invested their money years ago without much guidance and could benefit from revisiting their allocations.

Who the book is not for

While Collins hits on personal finance basics like HSA accounts, RMDs, “F-You money,” debt payoff, and tax strategies, the bulk of the text focuses on how to invest in the stock market specifically. For investors interested in building wealth via real estate, for example, this is not your book. Collins’ general view on the topic is: “Houses are an expensive indulgence, not an investment.”

But if you’re looking for a hands-off way to grow your wealth, you’ll get a solid education for $22 — and the simplicity of Collins’ advice will nudge you to take action, even if all you do is revisit where your money is invested, like I did.