Building wealth is often a matter of endurance, but staying wealthy is a matter of strategy. In a definitive interview on The Diary of a CEO, JL Collins, the legendary author of The Simple Path to Wealth, pulled back the curtain on his personal finances. What does JL Collins investment portfolio looks like?
If you’ve ever wondered where JL Collins invests his money or how he balances risk in 2026, his “Position of Power” framework provides the ultimate blueprint.
The 80/15/5 Asset Allocation Breakdown
JL Collins is famous for advocating for a 100% stock portfolio during the wealth-building phase. However, for his current stage of life, he revealed a more nuanced—yet still aggressive—allocation.
- 80% Stocks (VTSAX): The Vanguard Total Stock Market Index Fund remains his primary engine.
- 15% Bonds (VBTLX): Collins uses the Total Bond Market Index Fund as “ballast” to reduce volatility.
- 5% Cash: Held in money market funds for immediate liquidity and peace of mind.
Why JL Collins Still Prefers Stocks Over Bonds
A common question in 2026 is why an investor in their 70s would remain 80% in equities. Collins explains that “safety” is a matter of perspective:
- Short-Term Risk: Stocks are volatile.
- Long-Term Risk: Bonds are eroded by inflation.
By maintaining a “Position of Power”—having zero debt and modest living expenses—Collins can ignore short-term market “noise” to ensure his capital outpaces inflation over the long haul.
AI vs. The Simple Path: Why the Basics Still Win
During the session, host Steven Bartlett asked AI for the “best investment advice in the world.” The result? A near-perfect summary of Collins’ own book: Avoid debt, live on less than you earn, and invest the surplus. In the age of AI, the “Algebra of Wealth” hasn’t changed. Success isn’t about finding a complex new algorithm; it’s about the discipline to remain boringly consistent.
Frequently Asked Questions (FAQ)
What is JL Collins’ current investment portfolio?
As of 2026, JL Collins maintains an asset allocation of 80% VTSAX (Stocks), 15% VBTLX (Bonds), and 5% Cash. He manages this across taxable accounts and four separate IRAs (Traditional and Roth) for him and his wife.
Why does JL Collins recommend VTSAX?
JL Collins recommends the Vanguard Total Stock Market Index Fund (VTSAX) because it provides low-cost, broad-based exposure to the entire U.S. stock market. It is “self-cleansing,” meaning winning companies grow within the fund while failing companies drop out automatically.
Does JL Collins invest in Real Estate?
While he owns a cabin in Wisconsin and a condo in Florida, Collins considers his primary residence a lifestyle choice, not an investment. He prefers the liquidity and low maintenance of index funds over the “phantom costs” of physical real estate.
Is an 80% stock allocation too risky for retirees?
Collins notes that his 80% stock allocation is “very aggressive” and not necessarily for everyone. It requires a high risk tolerance and a “Position of Power” where you do not need to sell stocks during a market downturn to pay for basic living expenses.
What are the 3 pillars of wealth according to JL Collins?
The three principles are:
1. Avoid debt (especially high-interest consumer debt), 2. Live on less than you earn, and 3. Invest the surplus into low-cost, broad-based index funds.
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