Simple Path to Wealth
StaticProaggressiveBased on research by JL Collins · Collins, JL. The Simple Path to Wealth (2016)
This is BestFolio's independent implementation. Not affiliated with or endorsed by the original author.
Launched 2016About this Strategy
Ultra-simple 2-fund portfolio: 75% US total market, 25% bonds. Hugely popular in the FIRE community.
The complete strategy logic, asset universe, and rebalancing rules are available to Pro subscribers. This includes the full methodology description, author notes, and implementation details.
Pro subscribers also get access to current signals, full backtest history, and the ability to blend this strategy into custom portfolios.
Strategy Rules
Pro subscribers only
- 1Allocate 75% to VTI (Vanguard Total US Stock Market)
- 2Allocate 25% to BND (Vanguard Total Bond Market)
- 3Rebalance annually or when drift exceeds threshold
Key Differentiators
Research Source
Based on research by JL Collins
Collins, JL. The Simple Path to Wealth (2016)
Strategy Info
- Type
- Fixed / Strategic
- Frequency
- annual
- Next Rebalance
- Jan 409:30 ET (227d)
- Variants
- 2
- Risk Category
- aggressive
- Tags
- static
- Type
- Fixed/Strategic Asset Allocation
- Trading Frequency
- Annual or on-drift rebalancing
- Number Of Holdings
- 2 ETFs
- Equity Allocation
- 75% (US only)
- Bond Allocation
- 25%
- Philosophy
- Radical simplicity — fewest possible funds
- Risk Level
- Moderate to Aggressive
Asset Classes
Simple Path to Wealth at a glance
Simple Path to Wealth is a fixed-allocation portfolio by JL Collins across US Equity, US Bonds, rebalanced annual. Backtested 1987-12-31 to 2026-05-20 (38.4 years): 10.0% CAGR, 0.77 Sharpe, -43.4% max drawdown, 13.5% volatility.
- Type
- Fixed Allocation
- Author
- JL Collins
- Rebalancing
- Annual
- Risk
- Aggressive
- Period
- 1987-12-31 to 2026-05-20
- CAGR
- 10.0%
- Sharpe
- 0.77
- Max Drawdown
- -43.4%
- Volatility
- 13.5%
Simple Path to Wealth — Fixed Allocation Portfolio
JL Collins' Simple Path to Wealth portfolio — the foundational text of the FIRE movement. Ultra-simple: 75% Vanguard Total Stock Market (VTI) and 25% Vanguard Total Bond Market (BND). Collins argues most investors are better off with just two funds than any more complex allocation.
Backtest Performance (1987-12-31 to 2026-05-20)
| Metric | Simple Path to Wealth |
|---|---|
| Compound Annual Growth Rate (CAGR) | 10.0% |
| Maximum Drawdown | -43.4% |
| Sharpe Ratio | 0.77 |
| Sortino Ratio | 0.99 |
| Annualized Volatility | 13.5% |
| Calmar Ratio | 0.23 |
| Total Return | 3754.2% |
| Backtest Period | 38.4 years |
Strategy Details
- Type
- Fixed / Strategic
- Rebalancing
- annual
- Risk Level
- aggressive
- Variants
- 2
- Author
- JL Collins
- Source
- Collins, JL. The Simple Path to Wealth (2016)
Asset Classes
- US Equity
- US Bonds
Categories
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