Large book (>1000 pages) in which Tony Robbins describes path to financial success.
Tony would say he’s doing this for the good of the average person, although cynically has he done this to ascertain the best ways to manage his own great fortune. Despite this it is a nice book with useful content in which he interviews experts and tends to ask them the common question “if you could give financial portfolio advice to your children and no cash what would it be?”
Focus is of a number of schemes that are useful to optimise taxes in the USA, however things like maximising your 401k pension plan is relevant elsewhere. One of the facts it stresses is that nobody can always consistently out beat the markets. Instead a diverse portfolio is suggested, often with tracker funds using lowest commission rate. Several experts who are high up in the world of finance provide their opinions. Diversification of assets and seeking asymmetrical risk to reward benefit are highlighted frequently.
After much hype midway through the book is guidance from Ray Dalio, seemingly a legendary money manager who suggests the following:
30% in stocks (S&P 500 or other indexes for further diversification)
15% in intermediate term bonds [seven- to ten-year Treasuries]
40% long-term bonds [20- to 25-year Treasuries].”
7.5% in gold
7.5% in commodities.
(Note the above relates to money for investing, it is given that you already have your house)
Contains a fascinating chapter about the potential for technology to improve people’s lives in advances such as the smartphone. Speculates about the benefits of 3D printing. Then follows a motivational chapter about how money is not true wealth.
Money isn’t the only thing that makes you happy, happiness depends on what you focus on. If you can afford to buy one (overpriced) Starbucks coffee that’s more money than a lot of people have to live on per day, so be very grateful. If people have have everything without having to overcome challenges they’re not benefiting.
States knowledge into action is the important thing – there’s no point acquiring knowledge without using it!
Typical Tony Robbins (not really related to money) condition yourself to live in the way you want by determining:
1. What we focus on
2. What emotional states we tend to live in
3. Condition or “prime” this into our lives with a simple routine.
Contains a summary of Dunn and Norton’s 2013 book, Happy Money: The Science of Smarter Spending.
1. Investing in experiences—such as travel, learning a new skill, or taking some courses, rather than acquiring more possessions.
2. Buying time for yourself—“Whenever we can outsource our most dreaded tasks (such as cleaning gutters), money can transform the way we spend our time, freeing us to pursue our passions!”
3. (Most importantly) Investing in others—That’s right. Giving our money away actually makes us really happy!
“Real wealth is unleashed in your life the moment you find something you care so deeply for you will give it your all—even your life, if necessary.”