The Simple Path to Wealth

Your roadmap to a rich, free life — in just five minutes per week.

October 13, 2026

Thanks to everyone who's ordered a copy of The Simple Path to Wealth, whether it was yesterday or a decade ago!

It's truly the book that keeps on giving, and it's currently #1 in Amazon's "Retirement Planning" category. It's also #2 in "Introduction to Investing," and in the top 500 of all books!

You can still get the hardcover for $12.05 right now. That's 60% off! And don't forget the brand-new workbook—it's available for preorder now.

THE SIMPLE NUMBERS

This week's reader question is about getting your money out of the market just as a severe downturn begins. So let's look at the recent bear market from December 2021 to October 2022, when the S&P 500 slid more than 24%.

Let's say you timed things perfectly and sold off your holdings at the end of December, right before the market began its journey downward. You'd be feeling pretty good—until that stage in March 2022 where the market shot back up and looked to be re-approaching all-time highs.

Then another big drop began through May of that year. Then there was another big bounce into June. Then things fell apart again.

Then there was a massive, sustained recovery through August—until things cratered once more and the S&P 500 hit its lowest part of the cycle: Just over 3,500, less than half the value it has today.

Even if you picked that great time to sell off your damaged goods, when would you have bought back in? How would you know where the bottom was?

SIMPLE PATH OF THE DAY

A slice of timeless wisdom from The Simple Path to Wealth:

"There’s a major market crash coming!! And there’ll be another after that!! What wonderful buying opportunities they’ll be."

A crowd of people walking past the Olympia Looping roller coaster at Oktoberfest — Hold on tight and don't look down.

ASK JL

Q: Back in 2008 when the market fell, early on I moved all my money in my 401(k) from my normal investments into a “fixed” investment. That’s an available option in my 401(k) plan. You don’t make a lot of gains but you’re shielded from losses, too. After about 1.5 years, I moved my money back into my normal investments.

This strategy worked for me then and shielded me from losses, and I’m very tempted to do it again if I start to feel the start of the bubble burst that may be coming. Do you think this is a terrible idea? —Emerald B.

Hi Emerald…

Unless you have magic skills, yes it is a bad idea.

It sounds like you made two excellent calls back in 2008: getting out early in the collapse, and getting back in early in the recovery.

If you can do that on a reliable basis, you have the most powerful skill in all of investing.

But if you are willing to accept the role that luck might have played, be very careful trying for a repeat.

One of the most dangerous experiences for a new investor is strong early results. It can lead to overconfidence and mistaking luck for skill.

Ask me how I know. LOL!

—JL

Got a money question keeping you up at night? Reply to this email and we'll get it over to JL.

Preorder *The Simple Path to Wealth Workbook* today!

WHAT WE'RE READING

📚 "The rich are getting richer," says Ben Carlson at A Wealth of Common Sense. "So is everyone else."

📚 JL enjoyed Brad Barrett's take on why "your paid-off house isn't free" in the ChooseFI newsletter.

📚 Last month, the Mad Fientist reflected on a decade of financial freedom.

THE BIG QUESTION

Have you ever successfully timed a market crash—and bought back in at the bottom? How did you do it?

Reply to this email and we'll feature some of your responses in upcoming issues!

Last time, we asked whether you've ever bought a big-ticket item from a position of weakness—and whether you regretted it. Here's a great response...

I bought a luxury car from a position of weakness. I paid cash, so I avoided taking on debt, but I later realized that paying cash did not necessarily mean I was buying from a position of financial strength.

There was a significant opportunity cost: The money I spent could have remained invested and continued compounding. I also underestimated the ongoing maintenance and repair expenses that came with owning a luxury vehicle.

In hindsight, I could technically afford to buy the car, but it did not move me closer to financial independence. It taught me that a purchase can weaken your financial position even when no debt is involved. Being able to write the check is not the same as being able to easily afford the true cost. —Richard J.