Unshakeable
SKEPTICAL ABOUT THE VALUE OF THE RIGHT ADVISOR? While the wrong advisors can be detrimental to your financial health, the right ones can be worth their value in gold. A recent Vanguard study explored exactly how much monetary value an advisor can bring to your investments. • Lowering expense ratios: 45 basis points (0.45%) back in your pocket • Reb
... See moreTony Robbins • Unshakeable
The biggest reason most people should have an advisor is the behavioral coaching.
But what if you get into the market at exactly the wrong time? What if you get unlucky, and you’re hit immediately by a correction or a crash? As you can see in the chart below, the Schwab Center for Financial Research studied the impact of timing on the returns of five hypothetical investors who had $2,000 in cash to invest once a year for 20 year
... See moreTony Robbins • Unshakeable
I don't think I've ever seen this example, but it is a super powerful scenario to illustrate the power of consistency.
What asset classes will give you the highest probability of getting from where you are today to where you need to be?
Tony Robbins • Unshakeable
But while the market returned 10.28% per year, Dalbar found that the average investor made only 3.66% a year over those three decades! At that rate, your money doubles only every 20 years. The result? Instead of that million-dollar windfall, you ended up with only $146,996.
Tony Robbins • Unshakeable
A mix of fees and terrible behavioral implications.
Warren Buffett has said, “The only value of stock forecasters is to make fortune-tellers look good.
Tony Robbins • Unshakeable
Ha! That Warren Buffet has a million folksy colloquialisms.
You need to learn the rules of the financial game, who the players are, what their agendas are, where you can get hurt, and how you can win. This knowledge can set you free.
Tony Robbins • Unshakeable
Concept framework for understanding and navigating financial risk.
How bad does it get when the market really crashes? Well, historically, the S&P 500 has dropped by an average of 33% during bear markets. In more than a third of bear markets, the index plunged by more than 40%. I’m not going to sugarcoat this. If you’re someone who panics, sells everything in the midst of this mayhem, and locks in a loss of mo
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If you take one thing away from this book, let it be this. So many people set their bar as the S&P 500, not realizing what that volatility actually feels like when it comes. Unless you have lived through bear markets without cashing in any of your ships, or better yet, made the decision to invest more during the downturn, you don't get to say you have the stomach for it. It always feels like the drop is different (and perhaps worse) than the ones in the rear-view mirror.I took over management of a family trust in 2007, right before the market collapsed in 2008. It was the largest sum of money I had ever dealt with, and it felt terrible to see it drop precipitously within months. I had trailing stops that automatically sold out of many of those positions and was frightened to re-invest. How long was the downturn going to last? Thankfully, I regrouped and put that money back to work right away. When the market recovered, it came back insanely fast; so fast that if I had waited and tried to time it, I would have missed a large percentage of the recovery. I'm happy I handled it the way I did but it was a rude awakening to what it can feel like to manage other people's money.
Your advisor should start by getting a clear picture of where you are today (your starting point), how much you’re willing and able to save, how much money you’ll need, and when you’ll need it (your ending point). Once these needs have been clearly identified, your advisor should provide a customized solution to help you achieve them.
Tony Robbins • Unshakeable
From 1996 through 2015, the S&P 500 returned an average of 8.2% a year. But if you missed out on the top 10 trading days during those 20 years, your returns dwindled to just 4.5% a year. Can you believe it? Your returns would have been cut almost in half just by missing the 10 best trading days in 20 years! It gets worse! If you missed out on t
... See moreTony Robbins • Unshakeable
These are some of my favorite investment facts ever.